OST-97-2265 / Polar Air Cargo / Extension of Start-Up for US-Philippines All-Cargo Service / January 8, 1998

 

NOTICE: Polar Air is requesting expedited consideration of its Application. It is requested that any party filing an answer in support of or in opposition to this Application file their comments with the Department on or before January 15, 1998. Polar will poll interested parties and advise the Department of the results.

 

Application of

POLAR AIR CARGO, INC. / Docket OST-97-2265

for grant of an exemption pursuant to 49 U.S.C. § 40109

(Extension of start-up period for U.S.-Philippines all-cargo service)

 

APPLICATION OF

POLAR AIR CARGO TO RENEW EXEMPTION

 

In Order 97-1-17, issued January 24, 1997, Polar Air Cargo, Inc. ("Polar Air") was granted exemption authority to provide scheduled all-cargo service in the U.S.-Philippines market. That authority will remain in effect for two years, provided that Polar Air inaugurates service within 90 days from the issuance of Order 97-1-17. Polar Air has been granted an extension of the start-up date until January 20, 1998. Order 97-11-19.

Polar Air, unfortunately, finds it necessary, for reasons beyond its control, to request a further 45-day extension of the period in which it is required to commence scheduled all-cargo services at Manila. Polar Air's application for appropriate authorizations in the Philippines has been pending before the Philippine Civil Aeronautics Board and Air Transportation Office for some time. Although

 

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Polar Air had received repeated informal assurances from Philippines government officials that they considered the application to be complete, non-controversial, and that Polar Air could anticipate routine approval, Polar Air has yet to receive such approval.

As the Department is aware, the U.S. Embassy in Manila is working to resolve this matter. However, it does not appear that any action will be taken in time to allow Polar Air to begin service by January 20, 1998.

On December 24, 1997, the Philippines Air Transport Office ("PATO"), which is reviewing Polar Air's application for Philippine operating rights, requested additional, highly technical information relating to Polar Air's "Operations Specifications." On January 5, 1998, Polar Air, through its attorneys in Manila, responded to PATO's December 24 communication with a detailed submission of the materials requested. Polar Air also requested expeditious action on issuance of its final permit so that it could start service on or before January 20, 1998.

Unfortunately, on January 6, 1998, Polar Air was advised by its attorneys that it would require a minimum of three (3) weeks for PATO to review the material submitted and complete a final draft of the Operations Specifications. Both Polar Air and the U.S. Embassy in Manila have been unable to extract any

 

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assurance from PATO concerning a date certain by which authorization might be granted. Polar Air was also advised that an on-site inspection may have to be conducted by PATO. Indeed, at this stage even if approvals are received immediately at the end of the three week review period, the January 20, 1998 deadline will have passed.

Given the unusual political and commercial factors now affecting its application and start-up, Polar Air therefore requests that its exemption be renewed for an additional 45 days. The grant of the requested renewal would be consistent with established Department precedent in situations in which the startup delay is related solely to the timing of the receipt of foreign government authorizations, a matter beyond Polar Air's control. (See, Order 97-2-14, served Feb. 21, 1997) Given the public benefits that would flow from Polar Air's scheduled B-747F all-cargo service, which was catalogued by the Department in Order 97-1-17, an extension of time in which to begin service would be in the public interest.

WHEREFORE, Polar Air Cargo, Inc. respectfully requests that its exemption from the start-up provisions of Order 97-1-17 be renewed so as to extend the deadline for starting service until March 6, 1998. Polar Air also requests that the

 

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Department grant it such other and different relief as the Department deems to be consistent with the public interest and with this application.

 

Respectfully submitted,

JEFFREY A. MANLEY

GINSBURG, FELDMAN & BRESS, CHARTERED

1250 Connecticut Avenue, N.W.

Suite 800

Washington, D.C. 20036

(202) 637-9057

Attorney for POLAR AIR CARGO, INC.

DATED: January 8, 1997