OST-98-4046 / Emery Worldwide Airlines / Amendment for Foreign All-Cargo Certificate / July 10, 1998

Application of

for amendment of certificate authority pursuant to 49 U.S.C. § 41102 (foreign all-cargo air transportation)

Pursuant to 49 U.C.S. § 41102 and Subpart Q of the Department's Rules of Practic e, Emery Worldwide Airlines, Inc. ("Emery Air") applies to amend segment 1 of its Route 598 certificate to permit Emery Air to engage in scheduled foreign air transportation of property and mail between any point or points in the United States and any point or points in the following countries, in addition to the points currently named in Emery Air's Route 598 certificate: Albania, Antigua and Barbuda, Armenia, Aruba, Azerbaijan, Belarus, Belize, Bolivia, Bosnia, Botswana, Bulgaria, Cote d'Ivoire, Costa Rica, Croatia, Curacao, Czech Republic, Dominican Republic, El Salvador, Estonia, Ethiopia, Federated States of Micronesia, French Guyana, Georgia, Ghana, Greece, Guatemala, Guyana, Haiti, Honduras, Hungary,

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Iceland, Jordan, Kazakstan,Kuwait, Kyrgyz Republic, Latvia, Lithuania, Macau, Macedonia, Malawi, Malta, Marshall Islands, Moldova, Namibia, the Netherlands Antilles, Nicaragua, Palau, Panama, Paraguay, Poland, Peru, Qatar, St. Kitts and Nevis, St. Vincent and Grenadines, Slovakia, Slovenia, Suriname, Tajikistan, Tanzania, Trinidad and Tobago, Turkmenistan, Uganda, Uruguay, Uzbekistan, and Zaire. The requested amendment will expand Emery Air's certificate authority to permit operations between the U.S. and countries which do not limit U.S.-flag allcargo designations.

Emery Air asks the Department to grant the requested amendment for an indefinite term, based on the absence of any limitations on U.S.-flag designations between the U.S. and each of the countries mentioned above.

In support of its Application, Emery Air states as follows:

1. Emery Air is a Nevada corporation with its principal office located at One Lagoon Drive, Redwood City, California 94065.

2. Emery Air is a citizen of the United States within the meaning of 49

U.S.C. § 40102(a)(15)(C). The president of Emery Air and two thirds or more of its board of directors and other managing officers are citizens of the United States.

More than seventy-five percent of the voting stock of the corporation is owned or controlled by persons who are citizens of the United States.

3. Emery Air is fit, willing and able to operate the additional allcargo service proposed. Emery Air has substantial operating experience throughout

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the Western Hemisphere, Europe and the Pacific. Emery Air already holds certificate authority to operate scheduled all-cargo service between points in the United States and points in various foreign countries (Orders 95-6-26 and 91-1-44). The requested authority will not result in any "substantial change" in the existing scheduled all-cargo operations by Emery Air within the meaning of Section 204.5(a) of the Department's regulations.

4. Grant of the requested additional authority is wholly consistent with existing bilateral air transport services agreements between the U.S. and each of the additional named countries with which the U.S. has entered into such agreements. In the case of all other named countries, the authority requested is consistent with principles of comity and reciprocity.

5. Granting the amendment requested by Emery Air is in the public interest because it will give Emery Air flexibility to adjust the scope of its international air express and time-sensitive air freight services at its own discretion in response to shifting demand and operational considerations. Granting the new authority will also enable Emery Air to provide more efficient and complete air freight services to the shipping public.

6. In light of the noncontroversial nature of the amended certificate authority requested by this Application, Emery Air asks the Department to waive compliance with Sections 201.4(e) and 201.4(f) of its regulations and Rules 1704(a) and (b) and 1707 of its Rules of Practice insofar as those provisions require

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applicants for certificate authority to provide detailed information related to proposed points to be served, flight schedules and aircraft to be operated, and related annual operating and fuel-consumption statistics.

Because Emery Air does not contemplate any immediate change in its scheduled operations as a result of this amendment, grant of the Application will not result in any material change in the annual fuel consumption requirements of Emery Air, and hence will not constitute a major regulatory action by the Department within the meaning of Section 313.4(a)(1) of the Department's regulations.

8. Emery Air requests that this application be processed by expedited non-hearing procedures under Subpart Q of the Department's Rules of Practice. There are no issues of material fact that require an evidentiary hearing in this

application, and the use of the expedited non-hearing procedures serves the public interest by allowing the Department to utilize its limited staff and resources

efficiently.

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WHEREFORE, Emery Air asks the Department to amend segment 1 of Emery Air's Route 598 certificate as requested for an indefinite period.

Respectfully submitted,

CROWELL MORING, Lorraine Halloway, Derek Dickinson

Counsel for Emery Worldwide Airlines, Inc.