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Evergreen International Airlines, Inc.; U.S.- Thailand All-Cargo Frequency Allocation Proceeding

Counsel:  Steptoe Johnson, Richard Taylor, 202.429.6459

Evergreen International Airlines, Inc.; U.S.- Thailand All-Cargo Frequency Allocation Proceeding

Counsel:  Steptoe Johnson, Benjamin Achenbach, 202.429.6289, bachenba@steptoe.com 

Allocation of one weekly U.S.-Thailand all-cargo frequency to provide the following service: Scheduled foreign air transportation of property and mail between a point or points in the United States, and a point or points in Thailand

By:  Paul Gretch

Evergreen International Airlines, Inc.

Grant of the waiver would be in the public interest for the same reasons that led the Department to grant the blanket waiver conferred by Order 2001-11-15, namely, the severe market disruption and drastic schedule adjustments that resulted from the events of September 11. The adverse impact of these events continues to be felt in the U.S.-Thailand all-cargo market and have made resumption of Evergreen's freighter services uneconomical for the foreseeable future. Evergreen intends to reenter this market and anticipates that day will come well before expiration of the additional period of waiver it requests herein. Extension of the waiver period will afford Evergreen the flexibility it needs to resume service as soon as economic conditions warrant.

Counsel:  Steptoe Johnson, David Coburn, 202.429.8063

Evergreen International Airlines, Inc.

Waiver of 90-day dormancy condition: Evergreen has applied for a waiver of the 90-day dormancy condition with respect to its allocation of one weekly all-cargo frequency for services between the U.S. and Thailand. Evergreen requests the waiver for a period of one year, from April 1, 2002 through March 31, 2003. Evergreen states that the adverse effects of events of September 11, 2001, continue to be felt in the U.S.- Thailand all-cargo market, making it uneconomic for Evergreen to enter the market in the foreseeable future. Evergreen states that it intends to reenter this market and anticipates that day will come well before the expiration of the additional period of waiver it requests here. Evergreen states that the waiver will afford it the needed flexibility to resume service as economic conditions warrant.

By:  Paul Gretch

Evergreen International Airlines, Inc. 

Evergreen International Airlines, Inc. respectfully applies for renewal through March 31, 2004, of its waiver of the 90-day dormancy condition applicable to its allocation of one weekly all-cargo frequency between the U.S. and Thailand.  The frequency was allocated by Notice of Action Taken dated February 7, 2001.  In support of this request Evergreen submits the following.

As a result of the events of September 11, 2001, the Department issued Order 2001-11-15, in which it granted a blanket waiver from dormancy conditions applicable to restricted international route authorities.  The waiver was effective through March 31, 2002, and applied to the Thailand frequency held by Evergreen, which Evergreen had operated prior to September 11, 2001.  The events of September 11, and the subsequent economic downturn dictated that Evergreen apply for a further dormancy waiver, and it did so on February 22, 2002, which request was granted through March 31, 2003.  Notice of Action Taken, dated March 31, 2002.

At the time of its previous request for an extension of the dormancy waiver, Evergreen anticipated that economic conditions would improve and that it could resume service in the U.S.-Thailand market prior to the expiration of the dormancy waiver. However, conditions clearly have not improved and Evergreen simply is not in a position to resume service on an economic basis in the foreseeable future. Nevertheless, Evergreen remains committed to resuming service when warranted by traffic demands and extension of the present waiver will enable Evergreen to accomplish that goal in an orderly and efficient manner.

Counsel: Piper Rudnick LLP, William Evans, 202-371-6030

Evergreen International Airlines, Inc.

Evergreen has applied for a waiver from the 90-day dormancy condition with respect to its allocation of one weekly all-cargo frequency for services between the U.S. and Thailand. The frequency allocation is subject to the condition that it will expire automatically and revert to the Department if it is not used for a period of 90 days. Evergreen requests the waiver through March 31, 2004. The Department has granted Evergreen previous waivers from the 90-day dormancy condition. (See, e.g., Order 2001-11-15 and Notice of Action Taken dated March 22, 2002.) Under the terms of the latest waiver, Evergreen’s frequency allocation would expire automatically if Evergreen does not provide service by March 31, 2003. Evergreen stated that it had anticipated that economic conditions would improve and that it could resume service prior to the expiration of its last dormancy waiver; however conditions have not improved and Evergreen is not in a position to resume service in the foreseeable future.

In March 2002, when we last issued Evergreen a waiver for this frequency through March 31, 2003, we placed the carrier on notice that “there should be no expectation that an additional request will similarly be granted.”. In the circumstances presented now, and taking into consideration the record before us, we find that the public interest would be best served by reassigning this frequency to the unallocated pool of frequencies so that whenever Evergreen or another carrier has firm plans to use it, it may apply for the frequency accordingly.

By: Paul Gretch

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