OST-95-234 / Korean Air / DATED: June 25, 1997

NOTICE: Interested parties may file answers in response to this Application with the Department of Transportation on or before July 10, 1997.

Application of

KOREAN AIR LINES CO., LTD.

for Renewal of Exemption from 49 U.S.C. § 41301 (Seoul - Washington, D.C.)

DATED: June 25, 1997

Pursuant to 49 U.S.C. § 40109 and Subpart D of the Procedural Regulations of the Department of Transportation (14 C.F.R. Part 302), Korean Air Lines Co., Ltd. ("KAL") hereby requests renewal of exemption authority granted to KAL in Docket OST-95-234, in order to engage in scheduled foreign air transportation of persons, property, and mail between Seoul, Korea, and Washington, D.C., via New York, New York under the Department's Program for Expanding International Air Service Opportunities to More U.S. Cities (the "Cities Program"). KAL requests that the Department renew this authority for one year.

In support of this Application, KAL respectfully states as follows:

1. The Department, by Order 95-4-36 (Docket No. 49856), issued a foreign air carrier permit to KAL on March 30, 1995, authorizing KAL to engage in scheduled foreign air transportation of persons, property, and mail between points in the Republic of

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Korea, intermediate points in Japan, coterminal points Atlanta, Chicago, Dallas/Ft. Worth, Guam, Honolulu, Los Angeles, New York City, San Francisco, points in Alaska, and beyond to Sao Paulo, Brazil.

2. The Department also issued to KAL by Order 96-8-46 (Docket OST-95-234) an exemption from 49 U.S.C. § 41301 to engage in scheduled foreign air transportation of persons, property, and mail between Seoul, Korea and Washington, D.C., via New York, New York. The Department found that the authority was consistent with the public interest and the criteria of the Cities Program. This authority will expire on July 13, 1997.

3. In issuing exemption authority to KAL, the Department determined that KAL was substantially owned and effectively controlled by citizens of the Republic of Korea and that KAL was operationally and financially qualified to conduct the operations for which exemption authority was granted. KAL remains substantially owned and effectively controlled by citizens of the Republic of Korea and remains fit, willing, and able to perform the services for which authority is requested.

4. As evidenced by the findings in Orders 95-10-12 and 96-8-46, the requested authority continues to be consistent with the public interest and the Department's Cities Program. The authority also continues to promote the goals of the Department's International Air Transportation Policy Statement of April, 1995 and is consistent with principles of comity and reciprocity.

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5. Renewal of KAL's existing exemption authority will not constitute a "major regulatory action" under the Energy and Conservation Act of 1975, as defined in section 313.4(a)(1) of the Department's regulations.

6. Pursuant to section 377.10(a) of the Department's regulations, 14 C.F.R. § 377.10(a), KAL states its intention to rely upon 5 U.S.C. § 558(c), as implemented by part 377, to continue in effect its current authorization for the services encompassed by this Application, pending a final determination of this renewal Application.

WHEREFORE, Korean Air Lines Co., Ltd. respectfully requests that the Department renew for one year the exemption authority granted to KAL by the Notice of Action Taken dated July 9, 1996 and confirmed in Order 96-8-46 authorizing KAL to engage in scheduled foreign air transportation of persons, property, and mail between Seoul, Korea, and Washington, D.C., via New York,

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New York, and grant KAL such further and additional relief as the Department may deem appropriate under the circumstances.

Respectfully submitted,

ZUCKERT, SCOUTT & RASENBERGER, L.L.P.

James L. Devall

William H. Callaway, Jr.

Lonnie Anne Pera

Counsel for Korean Air Lines Co., Ltd.

DATED: June 25, 1997