BEFORE THE DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

) ) ) ) ) 

## -------------------------------) Application of ATLAS AIR, INC. Docket OST -2009-0267 for an Emergency Exemption

ANSWER OF THE CITY OF HOUSTON AND THE GREATER HOUSTON PARTNERSHIP IN SUPPORT OF ATLAS AIR

EMERGENCY EXEMPTION APPLICATION
Communications with respect to this document should be sent to:

Mario C. Diaz Director Robert R. Wigington Deputy Director Department of Aviation CITY OF HOUSTON 16930 John F. Kennedy Blvd. Houston, TX 77032 (281) 233-3000 (281) 233-1859 (fax) Jeff Moseley Chief Executive Officer GREATER HOUSTON PARTNERSHIP 1200 Smith Street, Suite 700 Houston, TX 77002 (713) 844-3600 (713) 844-0200 (fax)

Dated: May 24,2010BEFORE THE DEPARTMENT OF TRANSPORTATION

WASHINGTON, 

### D.C.

) ) ) ) ) ------------------------------) Application of ATLAS AIR, INC. Docket OST -2009-0267 for an Emergency Exemption

ANSWER OF THE CITY OF HOUSTON AND THE GREATER HOUSTON PARTNERSHIP IN SUPPORT OF ATLAS AIR

EMERGENCY EXEMPTION APPLICATION
The City of Houston and the Greater Houston Partnership (collectively, "Houston" or the "Houston Parties") strongly support the application for an emergency exemption filed by Atlas Air, Inc. ("Atlas"), and urge that it be granted immediately. Absent an immediate grant of authority, the "Houston Express" service that has been operated for nearly a decade between Houston and Luanda, Angola, and which is of significant importance to Houston businesses, Houston passengers and the Houston economy, will be halted, causing significant adverse impact. Public interest considerations favor granting Atlas' application. The Houston Express is a private international air charter organized by the U.S.- Africa Energy Association ("USAEA") to provide critically needed flights between Houston and Luanda for members and employees of USAEA entities - a group that includes some 100 energy and energy-related entities in the Houston area, including major Houston companies. The flights are an essential element in the ability of those companies to manage significant energy-related projects in West Africa. Angola is oneAnswer of the Houston Parties

Page 2 of Houston's key trading partners; more than 220 Houston companies report doing business there, and at least fifteen Houston companies operate subsidiaries in Angola. In 2009 the Houston Express parties selected Atlas to take over the operations from another U.S. carrier starting in early 2010. Atlas filed its applications for authority more than six months ago in October 2009, allowing ample time for agency processing prior to the planned spring 2010 transfer of operations. On April 15, 2010, the Department issued its Show Cause Order finding Atlas to be a U.S. citizen, and fit, willing and able (DOT Order 2010-4-8); no objections were filed to that Order. Houston understands that Atlas has provided the Department with all required documentation necessary for issuance of final authority. The delay in issuing final authority to Atlas threatens continuation of the Houston Express flights. Should this service be interrupted, the adverse consequences to the Houston area would be extensive. Many Houston passengers would likely be stranded in Angola, and Houston businesses would suffer a damaging interruption to their operations. The estimated economic impact from the Houston Express flights on the Houston region is over $120 million annually. As the Department is aware, the Houston economy, which has remained strong throughout the downturn, is a critical element of the U.S. economy, with a GOP that exceeds that of many foreign nations. Houston is well known as the world's "energy capital", and its energy-related businesses make a vital contribution to ensuring the nation's energy supply. The public interest would not be served by permitting this interruption, and as shown by Atlas, there is ample precedent for granting an emergency exemption.Answer of the Houston Parties

Page 3

WHEREFORE, the Houston Parties respectfully request that the Department grant Atlas' application and issue an emergency exemption no later than May 26,2010. Respectfully submitted,

M io C. Diaz For e City of Houston and the Greater Houston Partnership

Dated: May 24,2010CERTIFICATE OF SERVICEI certify that on this 24th day of May 2010, a copy of the foregoing Answer of theCity of Houston and the GreaterHoustonPartnership was served on the parties namedbelow in accordance with the Department's Rules0Practice.robert.cohn@hoganlovells.comjeff.shane@hoganlovells.compatrick. rizzi@hoganlovells.comadam.kokas@atlasair.comrpommer@atlasair.comwdean@thompsoncoburn.comebrown@thompsoncoburn.comsmcgowan@thompsoncoburn.commIbenge@zsrlaw.comesta.rosenberg@dot.gov