OST-97-2265 / US-Philippines All-Cargo / Polar Air Cargo / Extension of Start-Up / DATED: September 19, 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 September 22, 1997. Polar will poll interested parties and advise the Department of the results.

 

U.S.-PHILIPPINES ALL-CARGO SERVICE PROCEEDING | Docket OST-96-1074

Application of

POLAR AIR CARGO, INC.

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

September 19, 1997

 

APPLICATION OF

POLAR AIR CARGO FOR 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 had been granted an extension of the start-up date until September 22, 1997.

Polar Air unfortunately finds it necessary, for reasons beyond its control, to request a further 120-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

 

APPLICATION OF POLAR AIR CARGO FOR EXEMPTION

Dockets OST-96-1074, OST-97-2265 Page 2

 

Civil Aeronautics Board for some time. Although 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.

According to reports, the delay in processing Polar Air's application is allegedly 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 the U.S. Embassy in Manila 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 September 22, 1997. Indeed, at this stage even if approvals are received in the next 30 days, which is now unlikely, start-up would be difficult if not impossible because while Polar Air has been blocked from the market, shippers and forwarders have made commitments to other carriers for the peak season 1997.

Given the unusual political and commercial factors now affecting its application and start-up, Polar Air therefore requests a 1 20-day extension. 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 a matter beyond Polar Air's control. (See, Order 97-2-14, served Feb. 21, 1997) Given the public benefits

 

APPLICATION OF POLAR AIR CARGO FOR EXEMPTION

Dockets OST-96-1074, OST-97-2265 Page 3

 

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 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 January 20, 1998. 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.

DATED: September 19, 1997