OST-96-1074 / OST-97-2265 / US-Philippines / July 18, 1997

NOTICE: Polar Air is requesting expedited consideration of its Application. It is requested that any party opposing this Application file their comments with the Department on or before July 22, 1997. Polar will poll interested parties and advise the Department of the results.

Application of

POLAR AIR CARGO, INC.

for grant of an exemption pursuant to 49 U.S.C. § 40109 (Extension of start-up period)

July 18, 1997

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. On March 25, 1997 and May 13, 1997, Polar Air applied for a 45-day extension of the start-up date for such service until June 8, 1997 and July 23, 1997, respectively.

Polar Air unfortunately finds it necessary, for reasons beyond its control, to request a further 30 day extension of the period in which it is required to

APPLICATION OF POLAR AIR CARGO FOR EXEMPTION Dockets OST-96-1074, OST-97-2265 Page 2

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 for some time. It was finally to be voted on at yesterday's meeting of that body. Polar Air had received informal assurances from Philippines government officials that they considered the application to be complete and noncontroversial, and that Polar Air could anticipate routine approval. /1 Polar Air's application was set as the 16th item on the agenda for the Board's meeting.

For reasons which are unclear, the Civil Aeronautics Board adjourned its meeting prior to reaching item 16, meaning action on Polar Air's application will be deferred until the next meeting, two weeks hence. Polar Air immediately requested assistance from the U.S. Embassy staff in Manila to see if consideration could be expedited, but as of yet, their efforts have not succeeded.

The grant of the requested exemption would be consistent with established Department precedent in situations in which the start-up delay is related solely to the timing of the receipt of foreign government authorizations. (See, Order 97-214, served Feb. 21, 1997) Given the public benefits that would flow from Polar

1/ In fact, Polar Air had adjusted its initial schedule to remove any controversy and cause for delay. Polar Air was prepared to initiate service today and is now in the process of finding alternative lift for freight booked on its initial flight.

APPLICATION OF POLAR AIR CARGO FOR EXEMPTION Dockets OST-96-1074, OST-97-2265 Page 3

Air's scheduled B-747F all-cargo service, and which was catalogued by the Department in Order 97-1-17, a short extension of time in which to begin service would be in the public interest.

WHEREFORE, Polar Air Cargo, Inc. respectfully requests that it be granted an exemption from the start-up provisions of Order 97-1-17 so as to allow it to begin service by August 23, 1997.

Respectfully submitted,

ALFRED J. EICHENLAUB

GINSBURG, FELDMAN & BRESS, CHARTERED

1250 Connecticut Avenue, N.W.

Suite 800

Washington, D.C. 20036

(202) 637-9034

Attorney for

POLAR AIR CARGO, INC.