OST-96-1074 / OST-97-2265 / US-Philippines / Application of Polar Air Cargo / August 15, 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 August 23, 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)

August 15, 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. Polar Air had been granted an extension of the start-up date until August 23, 1997. /1

APPLICATION OF POLAR AIR CARGO FOR EXEMPTION

Dockets OST-96-1074, OST-97-2265

Page 2

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 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. Although Polar Air had received 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.

According to reports in the Manila press, /2 Philippine Airlines is objecting to Polar's entry into the Manila market allegedly in retaliation for the Federal Aviation Administration's designation of the Philippines as a Category 2 country. As the Department is aware, both DOT officials and officials from the Department of State are working through our Embassy in Manila to resolve this matter. Polar Air expects to receive the necessary Philippine authority shortly and anticipates commencing Manila service by September 22, 1997.

APPLICATION OF POLAR AIR CARGO FOR EXEMPTION

Dockets OST-96-1074, OST-97-2265

Page 3

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 97-2-14, served Feb. 21, 1997) Given the public benefits that would flow from Polar 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 September 22, 1997.

Respectfully submitted,

ALFRED J. EICHENLAUB

LISA A. HARIG

GINSBURG, FELDMAN & BRESS, CHARTERED

1250 Connecticut Avenue, N.W.

Suite 800

Washington, D.C. 20036

(202) 637-9034

Attorney for

POLAR AIR CARGO, INC.

DATED: August 15, 1997