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UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY
WASHINGTON, D.C.
Issued by the Department of Transportation on March 29, 2006
NOTICE OF ACTION TAKEN -- DOCKETS OST-1996-2018
OST-1996-2025
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This serves as notice to the public of the action described below, taken by the Department official indicated
(no additional confirming order will be issued in this matter).
Docket OST-1996-2018: Application of Federal Express Corporation (FedEx Express) filed 2/9/06 for:
XX Waiver of 90-day dormancy condition for U.S.-Russia all-cargo frequencies1
By Order 96-2-17, the Department granted FedEx Express exemption authority to provide scheduled
all-cargo service in the New York/Memphis-Moscow market and allocated it five weekly all-cargo
frequencies for this service. That award was subject to the condition that the frequency allocation
would expire automatically and the frequencies would revert to the Department for reallocation if they
were not used for a period of 90 days.
On November 1, 1999, FedEx Express temporarily suspended its direct flight operations serving
Moscow. By various Notices of Action Taken the Department granted FedEx Express waivers of the
90-day dormancy condition for all five frequencies. The most recent waiver expires April 11, 2006
(see Notice of Action Taken, dated April 9, 2004).
In support of its present waiver request, FedEx Express states that at the time it inaugurated all-cargo
service to Russia in 1996, the U.S.-Russian Federation bilateral agreement provided for the exercise of
fifth-freedom traffic rights at intermediate points in Europe. The carrier further states that in 2002, the
Route Annex to the U.S.-Russian Federation bilateral agreement was revised to suspend those
European fifth-freedom rights, and that the moratorium against the exercise of fifth-freedom rights at
European points was retained in the latest revision to the Route Annex, negotiated in October 2005.
The moratorium is currently set to expire on March 25, 2007.
FedEx Express asserts that it can undertake a commercially viable operation only if it can combine
U.S.-Russia traffic at its European hub in Paris. The carrier further asserts that the revisions to the
Annex make it impossible for FedEx Express to use its frequencies as planned, thus warranting
extension of the current dormancy waiver. FedEx Express states that it remains keenly interested in,
and committed to, reinstituting scheduled all-cargo service as soon as regulatory and economic
conditions permit.
Applicant rep: David E. Short (901) 434-8584 DOT Analyst: Thuy H. Cooper (202) 366-5423
1
FedEx Express asks that the waiver be granted indefinitely or, alternatively, for a period of two years.
2
Docket OST-1996-2025: Application of Evergreen International Airlines, Inc. (Evergreen) filed 2/14/06
for:
XX Waiver of 90-day dormancy condition for U.S.-Russia all-cargo frequencies
On February 14, Evergreen filed an application requesting that the Department renew its waiver of the
standard dormancy conditions imposed on its three U.S.-Russia all-cargo frequencies for an indefinite
period or, alternatively, renew Evergreen’s waiver for an additional two years. The carrier states that it
first commenced operations to Russia in 1995; however, the events of September 11, 2001, and the
immediate resulting downturn in economic activity in the air cargo market have made it difficult for
Evergreen to continue its U.S.-Russia operations. By various Notices of Action Taken, the Department has
granted Evergreen waivers of the 90-day dormancy condition for all three frequencies. The most recent
waiver expires March 31, 2006 (see Notice of Action Taken, dated February 24, 2005). Evergreen states
that it remains committed to reinstituting its U.S.-Russia operations once economic conditions can sustain
profitable levels of service.
Applicant rep: Robert P. Silverberg (202) 944-3304 DOT Analyst: Thuy H. Cooper (202) 366-5423
XX Granted in part (see remarks below)
XX Dismissed longer term waiver request
The above action was effective when taken: March 29, 2006, through March 25, 2007.
Action taken by: Paul L. Gretch, Director
Office of International Aviation
Remarks: We grant in part the applications filed by FedEx Express and Evergreen for waivers of the
dormancy condition for their U.S.-Russia all-cargo frequencies. We have decided to grant the waivers
through March 25, 2007, the expiration date of the Annexes to the October 5, 2005 Protocol Between the
Government of the United States of America and the Government of the Russian Federation to Amend the
January 14, 1994 Air Transport Agreement Between the Government of the United States of American and
the Government of the Russian Federation (“the Annexes”).2 In taking this action, we find that grant of the
requested waivers is in the public interest in the circumstances presented; namely, the suspension per the
terms of the Annexes of the U.S. carrier fifth-freedom rights between points in Europe and points in the
Russian Federation, the downturn in economic activity that has been experienced in the air cargo market,
and the fact that no party opposed the respective waiver requests here.
With respect to the request for an indefinite waiver, FedEx Express and Evergreen both cite other waiver
cases involving Russia.3 However, we view those cases as inapposite. First, the requests for waiver in those
cases were not based on any temporary suspension of rights scheduled to end on an established date. Also,
those other requests involved cases of partial rather than complete suspension of use of certain frequencies.
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Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our
action was consistent with Department policy; (2) grant of the waivers were consistent with the public
interest; and (3) grant of the authority would not constitute a major regulatory action under the Energy
2
On October 5, 2005, the United States and Russia expressed their intent to implement the provisions of the Annexes on
the basis of comity and reciprocity until both governments take the actions to bring the Annexes into force.
3
See Notice of Action Taken, dated February 8, 2005, in Docket OST-2005-20116 and Notices of Action Taken, dated
December 3, 2004 and January 3, 2005, in Docket OST-2004-19375.
3
Policy and Conservation Act of 1975. To the extent not granted or dismissed, we denied all requests in the
referenced Docket. We may amend, modify, or revoke the authority granted in this Notice at any time
without hearing at our discretion.
Persons entitled to petition the Department for review of the action set forth in this Notice under the
Department’s regulations, 14 CFR §385.30, may file their petitions within seven (7) days after the date of
issuance of this Notice. This action was effective when taken, and the filing of a petition for review will not
alter such effectiveness.
An electronic version of this document is available on the World Wide Web at:
http://dms.dot.gov//reports/reports_aviation.asp