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RUSSELL E. POMMER 

1202) 622-3121 -Telephone 

(202) 822-9152-Fax 

rpommer@atlasair.com 

July 22, 2010 

Mr. Paul L. Gi-etch 

Director 

Office of International Aviation 

U.S. Department of Transportation 

1200 New Jersey Ave., SE 

Washington, D.C. 20590 

Re: Request for Issuance of Industry Waiver from Notice-of 

Consistency Procedures Applicable to Brazil Cargo Charters 

Dear Mr. Gretch: 

Given current market conditions in Brazil, Atlas Air, Inc. ("Atlas") hereby 

requests that the Department authorize the immediate assignment of Brazil cargo charter 

flights to Atlas and other scheduled aU-cargo earners in the U.S.-Brazil market. We 

suggest that the authorization remain in effect tlirough December 31,2010. Due to the 

exigencies described below, Atlas seeks prompt disposition of this request and plans to 

poll the carriers sei-ved witli this application. 

In support of this request. Atlas states as follows: 

1. Atlas holds authority for, and operates scheduled all-cargo service between 

the United States and Brazil with its 5 assigned weekly frequencies. Atlas is one of six 

scheduled all-carriers with frequency assignments; the other's ai'e Fedex (5 frequencies), 

UPS (5 frequencies), Polar (5 frequencies). Arrow (5 frequencies) and Centiuion (7 

frequencies). Three frequencies are imassigned. 

2. As the attached article shows, An'ow has recently stopped operating. That 

and generally improving market conditions are causing an increase in demand for U.S.-

Brazil cargo capacity from the remaining scheduled and chaiter all-cargo carriers. In the 

case of Atlas and presumably other carriers, the demand is of an ad hoc nature, with 

destination points and days of flight unpredictable. As a result. Atlas and potentially 

otlier scheduled all-cargo caniei-s are unable to acconmiodate the demand on their 

regularly scheduled flights,- which must be entered into the Brazil government's schedule 

filing system, HOTRAN, at least 30 days in advance. 
Ml-. Paul Gretch 

July 22,2010 

Page 2 

3. Atlas would like to be able to satisfy some of the increased demand by 

operating U.S.-Brazil charter flights, but it currently is unable to do so because of the 

regulatoiy prohibition of Brazil cargo charter flight assignments to carriers with 

scheduled authority during the first ten months of the charter year. See In the Matter of 

Brazil Cargo Charter Authorization, Order 2009-1-5. As a result of that order and the 

Department's Notice, dated Jime 11,2010, establishing Brazil cai"go charter distribution 

procedures for the 2010/2011 charter year, Atlas mid other carriers with scheduled cargo 

operations are not pemiitted to gain access to flights in the Brazil cargo chaiter pool until 

May 1,20II. Recently, Atlas has had to decline several requests to carry traffic to off- j 

line points in Brazil.' 

4. To address the problein. Atlas requests a short-term waiver of the regulatory 

prohibition, applicable to all U.S. carriers with scheduled all-cargo authority to and fi*om 

Brazil. This request is consistent with the Department's pronouncement when it last 

reviewed the continuing efficacy of the prohibition: 

We are not prepared to propose a change to the existing procedm-es in 

terms of dates of access to the charter pool for carriers holding scheduled 

all-cargo authority. Our procedures are designed to ensure that new 

entrant and ad hoc charter operators are able to secure charter authorizations throughout the charter year, lest they be precluded fi'om conducting 

U.S.-Brazil operations, and have proven effective in this regard. However, we remind earners of oiu' ability to waive restrictions on access to 

the charter pool on a case-bv-case basis, consistent with the public 

interest. 

In the Matter of Brazil Cargo Charter Authorizations, Order 2008-11-10 at 4 (emphasis 

added). Here, waiver is warranted by unusual circumstances and in the public interest. 

Because Brazil cargo designations are now unlimited and 3 scheduled all-cargo 

fi-equencies remain imassigned, there can be no argument that the regulatory limitation 

protects caiiiers that othci-wise would be precluded fi-om conducting U.S.-Brazil 

operations. Moreover, the Department already has waived the limitation so Centurion 

may operate charter flights while it completes the scheduled licensing process in Brazil. 

Conceptually, because this waiver request deals witli a unique situation, it is the same. 

5. The proposed action will not have a material impact on the ability of carriers 

without scheduled cargo authority to continue to serve Brazil. During the 2009/2010 

chaiter year, which ended June 30,2010, not all of tihe 1,000 available cargo charters 

appear to have been used. For the 2010/2011 chaiter year, the number of available 

' On July 13,2010 Atlas requested, and on July 15, 2010 the Department assigned, Brazil cargo charter 

authorizations to enable Atlas to operate two already-planned Rio de Janeiro flights, which could not 

otherwise be operated because of a sudden change in ANAC policy regarding extra-section flying. Since 

that time, Atlas has had to turn down off-line flight requests from potential customers. 
Mr. Paul Gretch 

July 22, 2010 

Pages 

charters has increased to 1,250 imder the U.S.-Brazil air transport agreement, as 

amended. In sharp contrast to other markets in which charter flights ai-e severely limited, 

there should be ample Brazil charter flights for everyone. 

6. By granting a waiver, the Depaitment will be placing scheduled cargo 

carriers on equal footing with the charter carriers in the Brazil market. Like tlie charter 

caniers, the scheduled earners will need to comply with the Department's other 

requirements for obtaining Brazil cargo charter notices of consistency, as set forth in the 

Department's Notice, dated June 11,2010, establishing procedures for the 2010/2011 

chaiter year. Furthermore, at least in the case of Atlas, the waiver will facilitate 

competition against the existing sei-vice of Brazilian carrier, ABSA, in the Miami-Rio de 

Janeiro market. 

Accordingly, Atlas Air, Inc. requests that the Department issue a waiver to all 

carriers holding Brazil scheduled all-cargo authority from the regulatory limitation 

against immediate access to the Brazil cargo charter pool, and such other, further and 

different relief as is consistent with this request and in the public interest. Atlas suggests 

that tlie waiver remain in effect through December 31, 2010 but would welcome a waiver 

of a shorter or longer duration should the Department decide that such is warranted. 

Thank you very much for your consideration. 

Very truly yours, 

Russell E. Pommer 

Associate General Counsel and 

Senior Director of Regulatory Affairs 

Attachment 

cc; Maiy Sti'eet 

Esta Rosenberg 

Brian Hedberg 

All persons on attached semce list 
Ml-. Paul Gretch 

July 22, 2010 

Page 4 

CERTIFICATE OF SERVICE 

ind I hereby certify tliat I have, this 22" day of July 2010, caused a copy of the 

foregoing application for a waiver to be served by e-mail on all persons listed below: 

Name 

Nancy Sparks 

David Vaughan 

Kevin Montgomery 

PieiTe Murphy 

William C. Evans 

Marshall Sinick 

Tom Gillies 

Representing 

FedEx 

UPS 

Polar 

Arrow 

Centurion 

Florida West 

Southern Air 

E-mail 

nnspai-ks@fedex.com 

dvauglm@kelleydrye. com 

keviii.montgomery@polaraircargo.com 

pmuiphy@lopmurphy,com 

bill@mietuslaw.com 

msmick@ssd.com 

tgilli6s@southemair.com 

Russell E. PoiTimer 
"Arrow Air lac. Cargo Carrier, Files for Bankruptcy for Second Time - Bloomberg Page 1 of 1 

Arrow Air Inc., Cargo Carrier, Files for Bankruptcy 

for Second Time 

By Dawn McCarty - Jul 1,2010 

Arrow Air Inc., a cargo carrier, filed for bankruptcy after shuttuig down all scheduled service 

operations and ceased flying. 

The company listed debt of as much as $500 million and assets of as much as $50 million in Chapter 

11 documents filed in U.S. Bankruptcy Court in Miami where it is based. Arrow Air Holdings Corp. 

also sought protection. 

"After exhausting all viable potential purchasers and uavestors, the debtors made the difficult 

decision to cease scheduled service operations in order to preserve tiie existing value of their estates," 

DougYakoIa. chief restructuring officer of Arrow Air, said in court papers. 

Arrow and Arrow Air Holdings Corp. emerged from bankruptcy in June 2004 through a confirmed 

plan of reorganization. 

Arrow is "maintaining the airline operating authorities and the potential for undertaking charter 

flying in the event a potential purchaser can be consummated in Chapter 11," Yakola said. 

The case is In re Arrow Air Inc., 10-28831, U.S. Banlcruptcy Court, Soutiiem District of Florida 

(Miami). 

To contact the reporter on this story: Dawn McCartv in Wflirdngton, Delaware, at 

dmccartv(5)bIoomberg.net 

(B2010 BLOOMBERG LP. ALL RIGHTS RESERVED. 

http://www.bloomberg.com/news/print/2010-07-01/arrow-air-inc-cargo-carrier-files-for-ba,.. 7/22/2010