Document ID: DOT-OST-2002-12503-0113
Agency: dot
Document Type: Notice
Title: Notice of Action Taken re: Centurion Air Cargo, Inc. (Centurion)
Posted Date: 2006-03-24T05:00Z

UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on March 24, 2006

NOTICE OF ACTION TAKEN -- DOCKETS OST-2002-12503

                     							       

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).

Application of CENTURION AIR CARGO, INC. (CENTURION), filed 2/10/06 for:

				 

XX  Waiver of 90-day dormancy condition for U.S.-Ecuador all-cargo
services

Background:

 

By Notice of Action Taken, dated December 14, 2005 (Notice), the
Department granted to Centurion, among other things, two available
frequencies to conduct scheduled U.S.-Ecuador all-cargo air
transportation services.  The award was subject to our standard dormancy
condition under which the carrier was required to commence service with
the frequencies no later than March 14, 2006.  On March 10, 2006,
Centurion filed an application in the captioned docket for a waiver of
the startup condition imposed by the Notice, and asked that the startup
period be extended through June 12, 2006.  By Notice of Action Taken,
dated March 14, 2006, we granted Centurion an interim waiver of the
dormancy condition until March 24, 2006, so that the applicant could
retain its frequency allocation while we awaited any responsive
pleadings to the application.  We also stated that we would consider the
applicant’s request for a longer term waiver upon expiration of the
period for filing answers, which was March 21, 2006.  

Applicant rep.: Lonnie Anne Pera (202) 298-8660  DOT Analyst: Thuy H.
Cooper (202)366-5423 

Answers/Responsive Pleadings:

On March 21, 2006, Arrow Air, Inc. (Arrow) filed an answer opposing
Centurion’s request for a waiver.  Arrow states that it believes that
the Ecuador market is well served at the present with ample capacity
provided by all-cargo carriers now authorized and operating.  Arrow
further states that at the present time, Centurion cannot demonstrate
that it has met all operational requirements to provide scheduled
all-cargo service to and from Ecuador and that it has not demonstrated a
need that would justify grant of a waiver here.

On March 23, 2006, Centurion filed a reply to Arrow’s opposition. 
Centurion states that Arrow’s arguments for denying the waiver request
are an attempt by Arrow to shield itself from competition by eliminating
a new entrant in the U.S.-Ecuador market.  Centurion further states that
it has a solid history of charter cargo services in the U.S.-Ecuador
market, that it is firmly committed to offering scheduled all-cargo
services in the U.S.-Ecuador market, that it has taken the appropriate
steps to implement those services, but that the process of obtaining
authority in Ecuador can be complicated and lengthy.   

Disposition:

We grant the application filed by Centurion for a waiver, and extend,
through June 12, 2006, the startup deadline for the frequencies
allocated to Centurion.  In taking this action, we find that grant of
the requested waiver is in the public interest in the circumstances
presented; namely, that the carrier has indicated on the record that it
is working to complete the Ecuadorian licensing process and the
frequencies at issue here represent a valuable opportunity to promote
competition and service in the U.S.-Ecuador all-cargo market.

We had hoped that Centurion would have been able to commence operations
within the timeframe of our standard 90-day start-up condition. While it
has not done so, we believe that it has provided a basis on the record
for us to conclude that it is taking steps to begin its new scheduled
service. In these circumstances, we shall grant Centurion the waiver it
requests. However, we are putting Centurion on notice that there should
be no expectation that an additional request will similarly be granted. 
As is our policy in considering 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 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.  

The above action was effective when taken: March 24, 2006.

XX  Action taken by:	Paul L. Gretch, Director		

			Office of International Aviation

________________________________________________________________________
______

Under authority assigned by the Department in its regulations, 14 CFR
Part 385, we found that (1) our action was consistent with Department
policy, and (2) grant of the request was consistent with the public
interest.  To the extent not granted, 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

  Extension of the startup deadline is effective through June 12, 2006,
or until the date on which Centurion begins service with the allocated
U.S.-Ecuador frequencies, whichever occurs earlier.  As to any frequency
with which Centurion does not begin service by June 12, 2006, the
allocation with respect to that frequency will expire automatically and
revert to the Department for reallocation.