UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY
WASHINGTON, D.C.

Served December 19, 1996

U.S.-BRAZIL ALL-CARGO FREQUENCY ALLOCATION	|	DOCKET   OST-96-2022 

 Under the 1989 Air Transport Services Agreement between the United
States and Brazil, as amended, ("Agreement"), the United
States may designate four U.S. carriers for all-cargo services.
 Carrier services are limited by frequency, and currently U.S.
carriers may use 18 weekly frequencies for all-cargo services.[1]
 Under a Memorandum of Consultations, signed October 24, 1996,
between the United States and Brazil, effective April 1997, designated
U.S. carriers may operate an additional six weekly frequencies
for a total of 24 weekly frequencies for all U.S. carriers.[2]


The four U.S. carriers currently designated for these services
are Federal Express (Fed Ex), Challenge Air Cargo, Inc. (Challenge),
American International Airways, Inc. (AIA), and Polar Air Cargo,
Inc. (Polar).  Fed Ex has been allocated 5 weekly wide-body frequencies;
Challenge, 3.5 weekly wide-body frequencies; AIA, 6.5 weekly wide-body
frequencies; and Polar, 3 weekly wide-body frequencies.  By Order
96-6-12, the Department imposed a dormancy condition on all U.S.-Brazil
all-cargo frequencies.  Under the dormancy condition, frequencies
unused by the incumbent carriers for a 90-day period ending September
8, 1996, are automatically relinquished to the Department for
reallocation.  During this period, officially noticeable data
indicate that Challenge operated no more than 2.5 weekly narrow-body
frequencies (an average of one weekly wide-body frequency).[3]
 Therefore, as provided for by the conditions imposed on Challenge's
frequencies by Order 96-6-12, 2.5 of its allocated wide-body frequencies
are now available for reallocation.  As a result of the newly
available flights and Challenge's dormant frequencies, a total
of 8.5 weekly frequencies are available for U.S. carrier all-cargo
service (6 are available effective April 1, 1997, and 2.5 are
available now).


By this notice we invite applications from the four designated
U.S. carriers interested in allocation of the additional all-cargo
frequencies.[4]  Applications should be filed by January 13, 1997.
 Answers to such applications should be filed by January 21, 1997,
and replies by January 27, 1997.


All applications should be filed in the captioned docket, OST-96-2022,
and should specify, at a minimum, the markets to be served, the
proposed startup date, the complete routings from origin to destination
of all flights, days scheduled, equipment types and a statement
as to whether the aircraft to be used in the proposed schedule
are on hand or on order, and variation of frequencies/
routings by traffic season, if applicable.[5]  Carriers should
also include a complete description of the services they provide
under their existing allocations.  In this regard, carriers should
state the number of flights operated, the routings, aircraft type
and any seasonal or other fluctuations in service.


Applications should be filed with the Department of Transportation,
Dockets, Room PL-401, 400 Seventh Street, S.W., Washington, DC
20590.[6]  Further procedures for acting on the applications filed,
if necessary, will be established in a future Department order.


By:


PAUL L. GRETCH

Director

Office of International Aviation


(SEAL)



Endnotes


[1] For all-cargo services the number of flights are expressed
as units representing wide-body freighters.  One or more freighters
may be substituted by narrow-body freighters in a ratio of two
(2) narrow-body frequencies equal one (1) wide-body frequency.


[2] The two delegations noted their respective aeronautical authorities'
intention to permit operations consistent with the revised Annexes
I and II on the basis of comity and reciprocity pending entry
into force.  See U.S.-Brazil Memorandum of Consultations,
dated October 24, 1996.


[3] See, e.g., electronic edition of the Worldwide OAG
Air Cargo Guide for the months of June, July, August, and
September, 1996.  We also note that the October 27-November 30,
1996, published edition of the OAG Cargo Guide reflects only one
weekly narrow-body flight by Challenge in the Brazil market.


[4] Challenge may reapply for its relinquished frequencies provided
that it presents firm plans to use any requested additional frequencies.


[5] If aircraft are on hand, applicants should indicate where
and to what extent those aircraft are currently being used by
the applicant.  If aircraft are on order, applicant should indicate
when the aircraft will be delivered and how the aircraft will
be financed.  Applicant should further indicate whether the aircraft
to be used comply with FAR-36; if not, they should indicate specific
plans for achieving compliance.


[6] The original submission is to be unbound and without tabs
on 8½" x 11" white paper using dark ink (not green)
to facilitate use of the Department's docket imaging system.