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OST-03-16690 - US-Brazil All-Cargo Services - Notice Inviting Applications

OST-02-11985 - US-Brazil All-Cargo Frequencies
OST-02-12683 - US-Brazil All-Cargo Proceeding
US-Brazil All-Cargo Frequency and 1997/1998/ All-Cargo Charter
US-Brazil All-Cargo Charter Notices

US-Brazil All-Cargo Services

OST-03-16690

Posted and Served December 10, 2003

Notice Inviting Applications

Under the Air Transport Agreement between the United States and Brazil, four U.S. carriers may be designated to operate scheduled all‑cargo services. These carriers, collectively, may operate a maximum of 24 round‑trip all‑cargo wide‑body frequencies per week between the United States and Brazil.' Federal Express Corporation, Polar Air Cargo, United Parcel Service, and Atlas Air are the four carriers now designated to provide all‑cargo services in the market. Federal Express is allocated five weekly frequencies, Polar four weekly frequencies, UPS four weekly frequencies, and Atlas ten weekly frequencies. One frequency is currently unallocated.

Two of these carriers --Polar and Atlas -- reached an agreement, under which they would be owned by the same company but would continue to operate as two separate airlines. By Order 2002-5-24, the Department decided to approve, with the exception of Polar's Brazil designation and frequencies, a defacto transfer of Polar's certificate and exemption authority, together with related frequency allocations, to Polar under the control of Atlas Air Worldwide Holdings, the parent company of Atlas Air (Docket OST-01-10239). The order also stated that the Department would institute a proceeding to reallocate Polar's Brazil designation and four frequencies.

By Order 2002-6-20, the Department instituted the 2002 US.-Brazil All-Cargo Service Proceeding in Docket OST-2002-12683 to select a carrier for an authorization to be designated to serve the U.S.-Brazil all-cargo market and for allocation of four U.S.-Brazil all-cargo frequencies under the U.S.-Brazil aviation agreement. By Order 2002-11-16 the Department tentatively decided to award Evergreen International Airlines primary authority and an allocation of four U.S.-Brazil frequencies to inaugurate scheduled all-cargo service in the U.S.-Brazil market, subject to a 90-day start-up condition. Order 2002-11-16 also tentatively awarded backup authority to Gemini Air Cargo in the event that Evergreen failed to inaugurate its proposed services.

By Order 2003-5-27, pursuant to the 2002 US. -Brazil All-Cargo Service Proceeding, the Department made final its decision to select Evergreen for primary authority and an allocation of four U.S.-Brazil frequencies with Gemini as the backup carrier.

We have decided to invite applications from all U.S. carriers interested in using (a) one U.S.-Brazil authorization to be designated as an all-cargo carrier, which is currently allocated on an interim basis to Polar; and (b) five U.S.-Brazil all-cargo frequencies (four frequencies that are temporarily allocated to Polar, and one frequency previously allocated to Federal Express that has been surrendered to the Department for reallocation). Applications should be filed by January 7, 2004. Answers to applications should be filed by January 16, 2004, and replies should be filed by January 27, 2004.

By: Paul Gretch


Amerijet International, Inc.

OST-03-16690 - Certificate of Public Convenience and Necessity - US-Brazil All-Cargo Services

January 7, 2004

Application for a Certificate of Public Convenience and necessity and Request for Frequencies

By this application, Amerijet is seeking a new or amended certificate of public convenience and necessity and a designation as one of the four U.S. carriers authorized to provide schedule all‑cargo service in the U.S.‑Brazil market and, to the extent permissible, to integrate that authority with certificate and exemption authority Amerijet holds or may hold in the future. It is also requesting an allocation of five frequencies to permit it to institute and conduct such services.

The U.S.‑Brazil scheduled all‑cargo market has been troublesome for several years. Although U.S. negotiators have not been able to make the market an open entry market, they have convinced Brazil to agree that four U.S. scheduled all‑cargo carriers may be designated by the Department to operate a total of twenty‑four round‑trip frequencies per week.

Due to adverse economic conditions in Brazil, however, demand for all-cargo air transportation in the market has continuously diminished in recent years. In fact, there has not been a time in recent months and years when all available scheduled all-cargo frequencies have been operated by U.S. designated carriers.

Prior to 2002, the twenty-four available frequencies were allocated to FedEx, UPS, Atlas and Polar. Following the acquisition of Polar by Atlas, on June 28, 2002, the Department instituted the 2002 U.S.-Brazil All-Cargo Service Proceeding to select a scheduled all-cargo carrier to utilize the four frequencies previously awarded to Polar. See Order 2002-6-20. Amerijet, Evergreen and Gemini prosecuted applications for the available designation and frequencies with Evergreen and Gemini proposing to add more wide-body bulk capacity in the largest and best served U.S.-Brazil market, while Amerijet proposed to expand its well-established scheduled all-cargo system beyond its then existing limits into several of the smaller under-served U.S.-Brazil markets. By Order 2003-5-27, the Department designated Evergreen as the fourth U.S. scheduled all-cargo carrier and awarded backup authority to Gemini.

Exhibits and Service List

Counsel: John Richardson, 202-371-2258


Arrow Air, Inc.

OST-03-16690 - Certificate of Public Convenience and Necessity to Engage in Scheduled All-Cargo Foreign Air Transportation between the US and Brazil in Conjunction with the US-Brazil All-Cargo Services Proceeding

January 7, 2004

Application for a Certificate of Public Convenience and Necessity, for Designation and for Allocation of Avialable Frequencies

Arrow hereby applies for the following: (a) A certificate of public convenience and necessity to engage in scheduled foreign air transportation of property and mail between a point or points in the United States, via intermediate points, and the coterminal points Manaus, Brasilia, Rio de Janeiro, Sao Paulo, Recife, Porto Alegre, Belem, Belo Horizonte, and Salvador de Bahia, and beyond Brazil to Argentina, Uruguay, Paraguay and Chile; (b) Authorization to integrate U.S.-Brazil scheduled authority with Arrow's other all-cargo certificate and exemption authority and to commingle traffic consistent with applicable aviation agreements between the U.S. and foreign countries; (c) Allocation of five weekly U.S.-Brazil all-cargo wide-body frequencies.

Arrow currently operates all-cargo charter services between the U.S. and Brazil. It has routinely requested and been authorized to operate approximately 20 round trip flights each month. During the year 2003 it has averaged 4.3 weekly round trip all-cargo charter flights between the U.S. and Brazil.

Exhibits

Counsel: Lawrence Wasko, 202-862-4321


January 16, 2004

Answer of Amerijet International

While Amerijet's selection would enhance Amerijet's system and expand scheduled all-cargo opportunities in the U.S. -Brazil market, Arrow's selection would not permit that carrier to do anything it is not doing already, and it would not bring any new service into the U.S.-Brazil cargo market. For these reasons, the Department should select Amerijet as the fourth U.S. carrier designated to provide scheduled all-cargo service in this very important market. As shown in detail in its application, Amerijet seeks to use this proceeding as an opportunity for the Department to expand the U.S.-Brazil scheduled all-cargo market, through Amerijet's selection, into a number of smaller, underserved markets in an efficient and economical manner. Amerijet's scheduled all-cargo system already includes many terminal points in countries adjoining or in close proximity to Brazil.

Counsel: John Richardson, 202-371-2258, jrichardson@johnlrichardson.com


January 16, 2004

Answer of Arrow Air

On the basis of the proposals now before the Department, the evidence of record and other data available, the clear choice for an award in this case is Arrow Air, Inc.  Arrow proposes to use wide body aircraft. It will fully use all of the available frequencies. It is experienced in the Brazil market and has the facilities to meet the demand of the shipping public for scheduled all‑cargo air service. Arrow is ready, willing and able to begin scheduled all‑cargo service to Brazil as soon as all approvals have been obtained. No further proceedings are required for the Department to decide this case and to grant Arrow's application.

Counsel: Lawrence Wasko, 303-331--0599, ldwasko@erols.com


January 27, 2004

Reply of Amerijet International | Word

The record in this proceeding, as currently established, demonstrates clearly that Amerijet should be selected to receive the fourth designation to provide scheduled all‑cargo service in the U.S.‑Brazil market. In its Answer, Arrow appears to disparage Amerijet simply because Amerijet is a smaller scheduled all‑cargo carrier providing service with smaller equipment in markets with shorter stage lengths. In reality, Arrow's criticism is limited to observing that Amerijet has developed and proposed an operating plan different from the one proposed by Arrow and the one used by all the presently designated U.S. scheduled all‑cargo carriers.

Arrow's certification would not allow it to promote the market in a significant way. Arrow already advertises its charter service to Brazil as scheduled service, so the designation will not let it exploit the U.S.‑Brazil cargo market any more than it is doing right now. Arrow's "Flight Schedule ex Miami to Latin America and the Caribbean" can be viewed at arrowair.com.

Counsel: John Richardson, 202-371-2258, jrichardson@johnlrichardson.com


January 27, 2004

Reply of Arrow Air

Amerijet argues that the selection of Arrow would not permit Arrow to do anything it is not doing already. That claim is patently incorrect. Arrow is not an incumbent scheduled allcargo carrier in the U. S.-Brazil market. Arrow needs the scheduled service designation for Brazil and cannot operate scheduled service to Brazil without it. Arrow cannot now hold out scheduled service to the shipping public and cannot publish schedules in the All Cargo Official Airline Guide. Advertising available scheduled service is an important marketing tool, which is available only to the authorized and designated all-cargo carrier selected to serve the market. It is the tool that assures market participants that they will have access to the total all-cargo market and to potential traffic increases when the market grows. The entry of Arrow into the Brazil market as a designated scheduled all-cargo carrier will improve its already steady service.

Counsel: Lawrence Wasko, 202-331-0599, ldwasko@erols.com


OST-04-17363 - Transfer of US-Brazil All-Cargo Exemption, Designation, Frequencies and Dormancy Waiver
OST-03-16690 - US-Brazil All-Cargo Services

April 8, 2004

Answer of Arrow Air

Arrow Air does not oppose the application of Atlas and Polar so long as approval or in the alternative disclaimer of jurisdiction over the relief requested does not raise issues or otherwise impact consideration by the Department of Transportation of the applications, including the application of Arrow Air, pending in the U.S.-Brazil All-Cargo Proceeding.

So that there is no confusion as to the availability of a fourth designation under the bilateral to award to a new entrant authority at issue in the Brazil All-Cargo Proceeding, Arrow respectfully requests that if the Department acts favorably on the Joint Application, the designation presently held by Atlas be cancelled. A further designation "to provide code-share only service" should be issued to Atlas by the Department only if it is required under the bilateral agreement to allow such service to be conducted.

Counsel: Lawrence Wasko and Jacquelyn Gluck, 202-862-4370, ldwasko@erols.com and jngluck@erols.com


OST-04-17363 - Atlas and Polar - Transfer of Brazil Exemption, Designation, Frequencies, and Frequency Dormancy Waiver
OST-03-16690 - US-Brazil All-Cargo Services

April 19, 2004

Reply of Arrow Air

Arrow Air, Inc. respectfully urges the Department of Transportation, in consideration of all of the foregoing, to take no action on the Joint Application in Docket OST-2004-17363 which would delay immediate determination of the carrier selection issues in the matter of U.S.-Brazil All-Cargo Services OST Docket-2003-16690, and on the basis of the evidence of record and which may be officially noticed, grant the application of Arrow Air pending in Docket OST 2003-16690 and deny the application of Amerijet in its entirety, and that the Department take such other and further relief consistent with the premises herein as may be in the public interest.

Counsel: Lawrence Wasko and Jacquelyn Gluck, 202-862-4370, ldwasko@erols.com and jngluck@erols.com


OST-02-11985 - US-Brazil All-Cargo Frequencies
OST-03-16690 - US-Brazil All-Cargo Services

September 14, 2004

Answer of Arrow Air

Arrow has vigorously prosecuted its application in Docket OST-2003-16690, served December 15, 2003, for designation as the fourth U.S.-Brazil scheduled all-cargo airline and allocation of five available all-cargo frequencies. Arrow currently provides all-cargo service to Brazil using an allocation from the charter pool pursuant to Notice served May 20, 2004. Arrow is very desirous of obtaining authority from the Department to implement scheduled all cargo service to Brazil.

Atlas, in contrast to Arrow, desires to limit its scheduled all-cargo operations between the U.S. and Brazil and, subject to the Department's approval, to terminate such service through a transfer all of its Brazil authority, including its exemption, designation, frequency allocation and dormancy waiver, to an affiliated carrier Polar Air Cargo, Inc.. See Docket OST-2004-17363. Arrow has not opposed Atlas' application to limit or transfer its Brazil authority so long as the Department's consideration of the Atlas applications does not adversely affect consideration of Arrow' s application for new scheduled authority, designation and frequency allocation, to serve Brazil.

Arrow believes that it would be consistent with public interest for the Department to act and to grant the application of Arrow Air, Inc. There is no reason to delay further the award of the fourth available designation to Arrow and the available frequencies to allow it to provide scheduled all-cargo service which is needed by the shipping public. The Atlas and Polar applications involve an internal restructuring, apparently growing out of the Atlas bankruptcy and reflect corporate management decisions of the Atlas/Polar holding company, Atlas Air Worldwide Holdings, Inc. Arrow's application, by comparison, is about effectively and efficiently meeting the needs of the U.S.-Brazil air freight market. Arrow urges the Department not to withhold acting on Arrow's application while it considers the merits of the Atlas/Polar proposals. The shipping public requires the scheduled air freight service Arrow is ready, willing and able to provide.

Counsel: Lawrence Wasko and Jacquelyn Gluck, 202-862-4370, ldwasko@erols.com and jngluck@erols.com


US-Brazil All-Cargo Services

Order 04-11-03
OST-03-16690 - US-Brazil All-Cargo Services
OST-04-17363 - Atlas and Polar - Transfer of Brazil Exemption, Designation, Frequencies, and Frequency Dormancy Waiver

Issued and Served November 9, 2004

Order to Show Cause | Word

By this order, we tentatively select Arrow Air and allocate five weekly round-trip frequencies to Arrow to provide scheduled all-cargo service between the United States and Brazil. We have also tentatively decided to award backup authority to Amerijet International.

In addition, by this order, we have tentatively decided to authorize Polar Air Cargo to operate U.S.-Brazil all-cargo services in place of Atlas Air.

We will afford interested parties 10 calendar days from the service date to file objections and 5 calendar days to file any answers to such objections.

By: Karan Bhatia


OST-03-16690 - US-Brazil All-Cargo Services
OST-04-17363 - Transfer of Brazil Exemption, Designation, Frequencies, and Frequency Dormancy Waiver

November 19, 204

Objections of Amerijet International

Amerijet contends that the tentative decision announced in the Order to Show Cause should be reversed and Amerijet, rather than Arrow, should be selected. At the very least, it is essential that, if the carrier selection is not reveresed, the Departmentt should make clear that there shall be no flexibility if, as Amerijet suspects, Arrow fails to institute and maintain the full level of freighter service it has promised.

Counsel: John Richardson, 202-371-2258, jrichardson@johnlrichardson.com


November 19, 2004

Comments of Atlas Air and Polar Air Cargo and Application for Pendente Lite Extension of Frequency Dormancy Waiver

Polar take no position on the Department's tentative selection of Arrow but wish to comment briefly on procedural matters relating to the transfer of Brazil rights. In addition, Atlas and Polar herein request apendente lite extension of the frequency dormancy waiver that is being transferred until 90 days after issuance of the final order.

Counsel: Atlas Air, Russell Pommer, 202-822-9121, rpommer@atlasair.com


OST-03-16690 - US-Brazil All-Cargo Services
OST-04-17363 - Transfer of Brazil Exemption, Designation, Frequencies, and Frequency Dormancy Waiver

November 24, 2004

Answer of Arrow Air

The Department of Transportation carefully considered the proposals of each of the applicants as reflected in the Order to Show Cause. It tentatively selected Arrow because it would maximize the use of frequencies available under the bilateral and Amerijet would not. The Department found that it is in the public interest to make full use of limited-entry route rights at issue in this proceeding. Clearly, it is the shipping public that will benefit from the competitive wide-body freighter service that Arrow can provide and will provide with the approval of the Department and that Amerijet does not have the capability to provide.

Counsel: Lawrence Wasko and Jacquelyn Gluck, 202-862-4370, ldwasko@erols.com and jngluck@erols.com


OST-03-16690 - US-Brazil All-Cargo Services
OST-04-17363 - Transfer of Brazil Exemption, Designation, Frequencies, and Frequency Dormancy Waiver

November 29, 2004

Answer of Atlas Air and Polar Air Cargo | Word

Arrow's single purpose seems to be to ensure that the grant of the frequency dormancy waiver extension beyond December 31, 2004 does not prejudice its own ability to serve Brazil should its tentative award of authority be finalized. There is no reasonable chance of prejudice occurring. At such time that a final order is issued, Arrow will have 90 days to commence Brazil service with its five new frequencies the very same 90 days for which Atlas and Polar seek to extend the current waiver covering their four additional dormant frequencies. It is wholly unrealistic to expect Arrow, during those 90 days, to require more than five frequencies in order to begin Brazil operations at a level greater than that set forth in its service proposal. In any event, as noted in Order 2004- 11-13, one Brazil all-cargo frequency currently is unallocated. It could be assigned to Arrow should that carrier find five frequencies inadequate to meet shipper demand.

Arrow's comments additionally fail to undercut the sound basis articulated by Atlas and Polar for a pendente lite dormancy waiver extension. In particular, Polar needs an adequate period following finalization of the route transfer to determine the appro­priate level of service in the Brazil market. There is no guarantee that the Department will even have issued its final order by December 31, 2004, the date on which the current dormancy waiver expires. An extension beyond December 31 thus is essential.

Counsel: Polar, Kevin Montgomery, 202-828-1002, kevin.montgomery@polaraircargo.com / Atlas, Russell Pommer, 202-822-9121, rpommer@atlasair.com


OST-03-16690 - US-Brazil All-Cargo Services
OST-04-17363 - Transfer of Brazil Exemption, Designation, Frequencies, and Frequency Dormancy Waiver

Filed November 19, 2004 | Issued December 27, 2004

Notice of Action Taken | Word

We have granted the Joint Applicants’ request for a dormancy waiver extension for an additional 90 days to preserve the status quo while the Department considers the pleadings filed in response to Order 2004-11-3 and continues to process a final order in the above-captioned dockets. We have deferred on the Joint Applicants’ request to the extent that they seek a Pendente Lite extension of the dormancy waiver until 90 days after issuance of a final order. We will address the issues raised by the Pendente Lite extension request, including those raised by Arrow, within the context of the proceeding in the above-captioned dockets. We note that our action here extending Atlas’ dormancy waiver will not affect the Department’s consideration of Arrow’s application for new authority to serve Brazil.

We find that grant of the waiver request, in the particular circumstances presented, is in the public interest. However, we are putting Atlas and Polar on notice that there should be no expectation that an additional request will similarly be granted. As is our policy in considering dormancy waiver requests, we reserve the right to reexamine whether grant of this waiver continues to be in the public interest. Any future request to extend the dormancy waiver for the frequencies at issue here will have to be considered in light of the specific arguments offered and responses thereto, and in the context of the circumstances present at that time, including whether another carrier seeks to use the frequencies at issue.

By: Paul Gretch


OST-03-16690 - US-Brazil All-Cargo Services
OST-04-17363 - Transfer of Brazil Exemption, Designation, Frequencies, and Frequency Dormancy Waiver

March 16, 2005

Joint Application of Atlas Air and Polar Air Cargo for Frequency Dormancy Waiver Extension | Word

Last November, the Department tentatively approved, inter alia, the transfer to Polar of Atlas' U.S-Brazil all-cargo designation, ten all-cargo frequencies and related dormancy waiver applicable to four of those frequencies. Order 2004-11-3.

Shortly thereafter, citing the need (1) to preserve authority subject to the route transfer and (2) to allow Polar sufficient time to gear up its permanent Brazil services following issuance of the final order, the Joint Applicants sought to extend the dormancy waiver from its then-current expiration date to 90 days after issuance of the final order. Rather than granting the request in full, the Department extended the dormancy waiver for three additional months, to March 31, 2005, and deferred action on the remaining portion of the request, explaining that it would address the outstanding matter in the final order. Notice of Action Taken, December 27, 2004.

The final order has not yet been issued and the March 31 expiration date is fast approaching. Moreover, the factors justifying the grant of the previous dormancy waiver extension are equally applicable now. With the final route transfer approval order anticipated in the near future, Atlas is not now in a position to begin to utilize the dormant frequencies. Following issuance of the final order, Polar will require an additional period of time running beyond even the transition of existing Brazil services to complete the necessary regulatory process in Brazil and increase capacity in a measured fashion with the now‑dormant frequencies.

Counsel: Polar, Kevin Montgomery, 202-828-1002, kevin.montgomery@polaraircargo.com / Atlas, Russell Pommer, 202-822-9121, rpommer@atlasair.com



OST-03-16690 - US-Brazil All-Cargo Services
OST-04-17363 - Transfer of Brazil Exemption, Designation, Frequencies, and Frequency Dormancy Waiver

Macrh 17, 2005

Re: Polling Letter - Atlas Air | Word

Counsel: Atlas, Russell Pommer, 202-822-9121, rpommer@atlasair.com



US-Brazil All-Cargo Services

Order 2005-03-31
OST-03-16690 - US-Brazil All-Cargo Services
OST-04-17363 - Transfer of Brazil Exemption, Designation, Frequencies, and Frequency Dormancy Waiver

Issued March 8, 2005 | Served March 25, 2005

Final Order

By this order, we make final our tentative findings and conclusions set forth in Order 2004-11-3 award Arrow Air certificate authority for scheduled all-cargo service between Miami and Brazil and allocate it 5 weekly frequencies for its services; and make final our tentative selection of Amerijet International for backup authority in this case.

In addition, by this order, we make final our tentative decision to authorize Polar Air Cargo to operate U.S.-Brazil all-cargo services in place of Atlas Air.

By: Karan Bhatia



May 24, 2005

Arrow Air Notice of Plan to Inaugurate Service

Hereby files this written notice of its actual plan to inaugurate U.S. –Brazil scheduled all-cargo services on June 23, 2005, thirty days from the date hereof.

Counsel: Lawrence Wasko, 202-862-4370, ldwasko@erols.com



August 28, 2009

Application of Arrow Air for Renewal of Certificate Authority, Designation and Frequency Allocation

Arrow hereby applies for a renewal of its Certificate of Public Convenience and Necessity for scheduled all-cargo foreign air transportation of property and mail between the teraiinal point Miami, Florida on the one hand and the co-terminal points Manaus, Rio de Janeiro and Sao Paulo, Brazil on the other hand. Arrow also request renewal of its designation and allocation of five weekly firequencies.

By Order 2005-3-31, Arrow was awarded Certificate authority on the above routes as well as designation and allocation of frequencies. Arrow's authority issued herein expires by its own terms on March 25, 2010.

Counsel: Pierre Murphy, 202-776-3980


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