UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on March 3, 2004

   NOTICE OF ACTION TAKEN -- DOCKETS OST-96-1448 and 96-1770

________________________________________________________________________
_________________________________

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    Arrow Air, Inc.            filed    1/28/04  to:

XX  Renew for two years exemption under 49 U.S.C. 40109 to provide the
following service:

Docket OST-96-1448

Scheduled foreign air transportation of property and mail between New
York, New York; Miami, Florida; and San Juan, Puerto Rico, on the one
hand, and Caracas and Maracaibo, Venezuela, on the other, and to
integrate this authority with its existing exemption and certificate
authority.

Docket OST-96-1770

Scheduled foreign air transportation of property and mail between Miami,
Florida and Valencia, Venezuela, and to integrate this authority with
its existing exemption and certificate authority.

Applicant rep:   Lawrence D. Wasko<PHONE_NUMBER>    DOT Analyst:
Gerald Caolo<PHONE_NUMBER>

D I S P O S I T I O N

XX  Granted (subject to conditions, see below)

The above action was effective when taken:  March 3, 2004, through
March 3, 2006

Action taken by:   Paul L. Gretch, Director

		    Office of International Aviation

XX  The authority granted is consistent with the aviation agreement
between the United States and

Venezuela.

Except to the extent exempted or waived, this authority is subject to
the terms, conditions, and limitations indicated:  XX Holder’s
certificates of public convenience and necessity

	   XX  Standard exemption conditions (attached)

________________________

Conditions:  The route integration authority granted is subject to the
condition that any service provided

under this exemption shall be consistent with all applicable agreements
between the United States and the foreign countries involved.
Furthermore, (a) nothing in the award of the route integration authority
requested should be construed as conferring upon Arrow rights (including
fifth-freedom intermediate and/or beyond rights) to serve markets where
U.S. carrier entry is limited unless Arrow notifies the Department of
its intent to serve such a market and unless and until the Department
has completed any necessary carrier selection procedures to determine
which carrier(s) should be authorized to exercise such rights; and (b)
should there be a request by any carrier to use the limited-entry route
rights that are included in Arrow’s authority by virtue of the route
integration exemption granted here, but that are not then being used by
Arrow, the holding of such authority by route integration will not be
considered as providing any preference for Arrow in a competitive
carrier selection proceeding to determine which carrier(s) should be
entitled to use the authority at issue.

Remarks:  The U.S.-Venezuela aviation agreement does not provide for
coterminalization of Caracas and Maracaibo.  These points may be served
only as separate terminal points.

________________________________________________________________________
______________

On the basis of data officially noticeable under Rule 24(g) of the
Department's regulations, we found the applicant qualified to provide
the services authorized.

Under authority assigned by the Department in its regulations, 14 CFR
Part 385, we found that (1) our action was consistent with Department
policy; (2) grant of the exemption authority was consistent with the
public interest; and (3) grant of the authority would not constitute a
major regulatory action under the Energy Policy and Conservation Act of
1975.  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

U.S. Carrier Exemption Conditions

In the conduct of the operations authorized, the U.S. carrier
applicant(s) shall:

(1) Hold at all times effective operating authority from the government
of each country served;

(2) Comply with applicable requirements concerning oversales contained
in 14 CFR 250 (for scheduled operations, if authorized);

(3) Comply with the requirements for reporting data contained in 14 CFR
241;

(4) Comply with requirements for minimum insurance coverage, and for
certifying that coverage to the Department, contained in 14 CFR 205;

(5) Except as specifically exempted or otherwise provided for in a
Department Order, comply with the requirements of 14 CFR 203, concerning
waiver of Warsaw Convention liability limits and defenses;

(6) Comply with all applicable requirements of the Federal Aviation
Administration and with all applicable U.S. Government requirements
concerning security.  To assure compliance with all applicable U.S.
Government requirements concerning security, the holder shall, before
commencing any new service (including charter flights) to or from a
foreign airport, contact its Principal Security Inspector (PSI) to
advise the PSI of its plans and to find out whether the Transportation
Security Administration has determined that security is adequate to
allow such airport(s) to be served; and

(7) Comply with such other reasonable terms, conditions, and limitations
required by the public interest as may be prescribed by the Department
of Transportation, with all applicable orders and regulations of other
U.S. agencies and courts, and with all applicable laws of the United
States.

The authority granted shall be effective only during the period when the
holder is in compliance with the conditions imposed above.

08/2003

 PAGE

 PAGE   3