OST-97-2828 / Air Pacific / August 20, 1997

NOTICE: Answers in support of or in opposition to this application must be filed with the Department on or before September 4, 1997.

Application of

For an exemption pursuant to Section 416 of the Federal Aviation Act as amended

APPLICATION FOR EXEMPTION FROM SECTION 402 OF DIE FEDERAL AVIATION ACT AS AMENDED TO PERMIT AIR PACIFIC LIMITED TO PROVIDE SERVICE BETWEEN HONOLULU, HAWAII AND TORONTO, CANADA

Pursuant to section 416 of the Federal Aviation Act ("the Act"), as amended, Air Pacific Limited seeks an exemption from the requirements of section 402 of the Act to permit it to offer and provide service between Nadi, Fiji and Toronto, Canada via Honolulu, Hawaii, through a code share/blocked space arrangement with Canadian Airlines International Ltd. /1

Pursuant to an agreement with Canadian, Air Pacific will operate one weekly service between Nadi, Fiji, and Honolulu using its own aircraft. Air Pacific will place its code on Canadian flights between Honolulu and Toronto and Honolulu and Vancouver and will purchase a block of seats on the Canadian flights.

The U.S.-Fiji Air Transport Agreement presently authorizes a carrier of Fiji to operate service between Fiji and Vancouver, Canada, via Honolulu.

Air Pacific seeks exemption authority as soon as possible to serve Toronto and requests that the Department grant the exemption for a period of two years.

Air Pacific seeks this authority on the basis of comity and reciprocity between the Governments of Fiji and the United States. While no U.S. carriers have offered service to Fiji for several years, the two nations have a longstanding and excellent aviation relationship The Government of Fiji undoubtedly would be receptive to a similar application by a U. S. carrier.

Air Pacific seeks exemption authority to carry passengers, cargo, and mail between Fiji and Toronto through the code share/blocked space arrangement with Canadian described above. Should the Department grant the requested exemption authority, Air Pacific will be able to commence service between Fiji and Canada, thereby increasing air service options for passengers and shippers between the U.S., Fiji and Canada.

For the reasons stated above, it is in the public interest for the Department to grant Air Pacific an exemption from section 402 of the Act in order to offer service between Fiji and Toronto, via Honolulu, pursuant to a code share/blocked space arrangement with Canadian Airlines International Ltd.

Respectfully submitted,

CONDON & FORSYTH

Thomas J. Whalen

Evelyn D. Sahr

Counsel for Air Pacific Limited

Of Counsel

Rod D. Margo

William T. MacCary

CONDON & FORSYTH

1900 Avenue of the Stars

Los Angeles, CA 90067