A.,asAirlnc . ;€mRTMEN T O F 174 7 Pennsylvani a Avenue . N W • - ^I'-V'^itLi p = su,-ie87 5 A U OPERATION S Washingtan . D.C , 2000 8 •::-^yjS2 U p 3:2 5 RUSSEL L E . POMME R 1202 ) 622-312 1 -Telephon e (202 ) 822-9152-Fa x rpommer@atlasair.co m July 22 , 201 0 Mr . Pau l L . Gi-etc

h Director Offic e o f Internationa

l Aviatio n U.S . Departmen

t of Transportatio n 120 0 Ne w Jersey Ave. , S E Washington , D.C . 2059 0 Re : Reques t

fo r Issuanc e o f

Industr y Waive r fro mNotice-o f Consistenc y Procedure s Applicabl e to Brazi l Carg o Charter s Dea r Mr . Gretch : Given curren

t market condition s i n Brazil , Atla s Air , Inc . ("Atlas" ) hereb y request s tha

t th e Departmen

t authoriz e th e immediat

e assignmen

t o f Brazi l carg o charter flights t o Atla s an dothe r schedule d aU-cargo earner s i n th e U.S.-Brazi l market . We sugges t tha t th e authorizatio n remain i n effec t tlirough Decembe

r 31,2010 . Du e to the exigencie s describe dbelow , Atla s seeks promp t dispositio n o f

thi s reques t

and plan s t o poll the carrier s sei-ve

dwitli thi s application . I n suppor t of thi s request . Atla s state s a s follows : 1 . Atla s hold s authorit

y for , an d operate s schedule d all-carg o servic e betwee n the Unite dState s an

dBrazi l wit

h it s 5 assigne d weekly frequencies. Atla s i s on e o f si x schedule dall-carrier s wit

h frequency assignments ; th e other' s ai' e Fede x ( 5 frequencies), UPS ( 5 frequencies) , Pola

r ( 5 frequencies). Arro w ( 5 frequencies) an d Centiuio n ( 7 frequencies). Thre e frequencies ar e imassigned . 2 . A s the attache darticl e shows , An'o w ha s recently stoppe d operating . Tha t an dgenerally improving market condition s ar

e causin g a

n increas e i n demand fo

r U.S.

- Brazi l carg o capacit

y fromth e remainin g schedule d and chaiter all-carg o carriers . In the cas e o f Atla s andpresumabl

y othe r carriers , th e demand i s o f

a n a d ho c nature , wit

h destinatio n point s an

dday s o f flight unpredictable . A s aresult . Atla s an d potentiall y otlie r schedule dall-carg o caniei- s ar e unabl e t o acconmiodat

e th e demand o

n their regularly schedule dflights,- whic h mus t b e entere d int

o th e Brazi l government' s schedul e filing system , HOTRAN , a t leas t 3 0 day s i n advance .Ml- . Pau l Gretch

Jul y 22,201 0 Pag e 2 3 . Atla s woul

dlik e t o b e abl e t o satisf y som e o f th e increase d demand b y operating U.S.-Brazi l charte r flights, but

i t currently i s unabl e t

o d o s o becaus e o f

th e regulatoi y prohibitio n of

Brazi l carg o charte

r flight assignment s t

o carrier s wit

h schedule dauthorit

y during th e firs t

te n month s o f

the charter

year . Se e I

n th e Matte r

o f Brazi l Carg o Charter

Authorization , Orde

r 2009-1-5 . A s aresul t

o f tha t orde r an d th e Department' s Notice , datedJim e 11,2010 , establishin g Brazi l cai"g o charte r distributio n procedure s fo

r th e 2010/201 1 charte

r year , Atla s mi

d other carrier s wit

h schedule d carg o operation s ar

e no t pemiitte dt

o gai n acces s to flights i n th e Brazi l carg o chaite r poo l unti l Ma y 1,20II . Recently , Atla s ha s ha d to declin e severa

l request s t

o carr y traffi c t o off

- j line point s i n Brazil. ' 4 . T o addres s th e problein . Atla s request s ashort-ter mwaive r o f th e regulator

y prohibition , applicabl e t

o al l U.S . carrier s wit

h schedule d all-carg o authorit y to an d fi*om Brazil . Thi s reques t

i s consisten

t wit h th e Department' s pronouncemen t when i t las t reviewe dth e continuing efficac y o f th e prohibition : We ar e no t prepare dt o propos e achang e to th e existin g procedm-e s in term s o f date s o f acces s t o th e charte

r poo l fo r carrier s holdin g schedule d all-carg o authority . Ou

r procedure s ar

e designe d t

o ensur e tha t new entran t an da dho c charte

r operator s ar

e abl e to secur

e charte r authoriza

tion s throughout

th e charte r year , les t they b e preclude d fi'omconductin g U.S.-Brazi l operations , an

d hav e proven effective in thi s regard . How

ever , w e remin

dearner s o f

oiu ' abilit y to waiv e restriction s on acces s t o th e charte r pool on acase-bv-cas e basis , consisten t wit h the publi c interest . In the Matte

r o f Brazi l Carg o Charte r

Authorizations , Orde

r 2008-11-1 0 a

t 4 (emphasi s added) . Here , waive

r i s warrante d b y unusua

l circumstance s and i n th e publi c interest . Becaus e Brazi l carg o designation s are no w unlimite d an d 3 schedule d all-carg o fi-equencies remain imassigned , there ca n b e no argumen

t tha t the regulator

y limitatio n protect s caiiier s tha

t othci-wise woul d b e preclude d fi-omconductin g U.S.-Brazi l operations . Moreover , th e Departmen t alread y ha s waive d th e limitatio n s o Centurio n ma y operat e charte r flights whil e i t

complete s th e schedule d licensin g proces s i n Brazil . Conceptually , becaus e thi s waive r reques t deal s witli auniqu e situation , i t i s th e same . 5 . Th e propose dactio n wil l no t hav e amateria

l impac t on th e abilit

y o f carrier s withou t schedule dcarg o authorit

y t o continu e t

o serv e Brazil . Durin g th e 2009/201 0 chaite r year , whic h ende

dJune 30,2010 , no t

all of tihe 1,00 0 availabl e carg o charter s appea r to hav e been used . For

th e 2010/201 1 chaiter

year , the numbe

r o f availabl e

' O n Jul y 13,201 0 Atla s requested , an don July 15 , 201 0 the Departmen t assigned , Brazi l carg o charte r authorization s to enabl e Atla s t o operat e tw o already-planne dRi o de Janeir o flights, whic h coul d no t otherwis e be operate dbecaus e o f asudde n chang e in ANA C polic y regardin g extra-sectio n flying. Sinc e tha t time , Atla s ha s ha

d to tur n dow n off-lin e flight request s fro

mpotentia

l customers .Mr . Pau l Gretc h Jul y 22 , 201 0 Page s charter s ha s increase dt o 1,25 0 imde r th e U.S.-Brazi l ai r

transpor t agreement , a s amended . I n shar

p contras t t o othe r market s i n whic h charte

r flights ai- e severel y limited , there shoul db e ample Brazi l charte r flight s for everyone . 6 . B y grantin g awaiver , th e Depaitmen t wil l b e placin g schedule d carg o carrier s on equa

l footing wit

h the charte

r carrier s i n the Brazi l market . Like tli e charte r caniers , th e scheduledearner s wil l nee d t o comply wit h th e Department' s other requirement s fo

r obtainin g Brazi l carg o charter notice s o f consistency , a s se t

fort h i n th e Department' s Notice , date dJune 11,2010 , establishin g procedure s fo r th e 2010/201 1 chaiter year . Furthermore , a

t leas t in th e cas e o f

Atlas , the waive

r wil l facilitat

e competitio n agains t

th e existin g sei-vic

e o f Brazilia n carrier , ABSA , in th e Miami-Ri o d e Janeiro market . Accordingly , Atla s Air , Inc . request s that th e Departmen

t issu e awaiver

t o all carrier s holdin g Brazi l schedule dall-carg o authorit y fromth e regulator

y limitatio n agains t immediat e acces s to th e Brazi l carg o charter pool , and suc h other , furthe r an d differen t relie f a s i s consistent

wit h thi s reques t

an d i n the publi c interest . Atla s suggest s tha t tli e waive r remain i n effec

t throug h December

31 , 201 0 but

woul d welcome awaiver o f ashorte r o r longe r duratio n should th e Departmen t decide tha

t such i s warranted . Than k yo u ver y muc h fo r your consideration . Ver y trul y yours , Russel l E . Pomme

r Associate Genera

l Counsel an

d Senior Directo r o f Regulator y Affairs Attachmen

t cc ; Mai y Sti'ee

t Est aRosenber

g Bria n Hedber g Al l person s o

n attache dsemc e lis tMl- . Pau l Gretch

July 22 , 201 0 Pag e 4 CERTIFICAT E OF SERVIC

E in d I hereb y certif

y tlia t I have , thi s 22 " da

y o f Jul y 2010 , caused acop y o f th e foregoing applicatio n fo

r awaive r t o b e serve d b y e-mail o

n all person s liste d below : Nam e Nanc y Spark s Davi dVaugha

n Kevin Montgomer

y PieiT e Murph y Willia mC . Evan s Marshall Sinic k To mGillie s Representin g

FedE x UP S Pola r Arrow Centurion Florid aWes t Souther n Ai r E-mail

nnspai-ks@fedex.co

m dvauglm@kelleydrye . co

m keviii.montgomery@polaraircargo.co m pmuiphy@lopmurphy,co m bill@mietuslaw.co m msmick@ssd.co m tgilli6s@southemair.co m

Russel l E . PoiTime

r"Arro

w Air lac . Carg o Carrier , File s fo r Bankruptc y fo

r Second Tim e - Bloomber

g Pag e 1 o f

1



# Arro w Ai r

Inc. , Carg o Carrier , File s fo r Bankruptc y fo r Secon dTim e B y Daw n McCart

y - Ju l 1,201 0 Arro w Ai r Inc. , acarg o carrier , filed fo r bankruptc y after

shuttui g dow n al l schedule d servic e operation s an dcease dflying. The company liste d deb t

o f a s muc h a s $50 0 millio n an d asset s of a s muc h a s $5 0 millio n i n Chapte r 1 1 document s filed i n U.S . Bankruptc y Cour t i n Miam i wher e i t i s based . Arro w Ai

r Holding s Corp . als o sought

protection . "Afte r exhaustin g al l viabl e potentia l purchaser s an d uavestors , th e debtor s mad e th e difficul t decisio n t o ceas e schedule dservic e operation s i n orde r t o preserv e tiie existin g valu e o f thei r estates, " DougYakoIa . chief

restructurin g office

r o f Arro w Air , sai d i n cour t

papers . Arro w an dArro w Ai

r Holding s Corp . emerge dfro mbankruptc y i n Jun e 200 4 throug h aconfirme d plan o f reorganization . Arro w i s "maintainin g th e airlin e operatin g authoritie s an d th e potentia l for undertakin g charte r flying i n th e event

apotentia l purchase r

ca n b e consummate d i n Chapte r 11, " Yakol asaid . Th e cas e i s I n r e Arro w Ai

r Inc. , 10-28831 , U.S . Banlcruptc y Court , Soutiie mDistric t o f Florid a (Miami) . T o contac t th e reporte r

o n thi s story : Dawn McCart v i n Wflirdngton , Delaware , a t dmccartv(5)bIoomberg.ne

t (B201 0 BLOOMBER G LP . AL L RIGHT S RESERVED .

http://www.bloomberg.com/news/print/2010-07-01/arrow-air-inc-cargo-carrier-files-for-ba,. . 7/22/201 0