1. FSM Dept. Transportation, Communications & Infrastructure AIR CARRIERS IN THE FSM On August 01, 2004, a FSM Foreign Air Carrier Permit (FACP) was issued to AIRWORK HOLDINGS LTD. of New Zealand, an aircraft leasing company, commemorating Palau Micronesia Air’s (PMA) first flight to the FSM.

2. AIR CARRIERS IN THE FSM PMA announced a temporary suspension of flight operations effective December 23, 2004. The FSM Department of TC&I is currently reviewing applications for Foreign Air Carrier Permits from ECO Airlines, an Australian based airline, and KARAT Airlines, a Russian registered airline

3. AIR CARRIERS IN THE FSM based in Brisbane, Australia. KARAT airlines is proposing to provide a weekly Passenger/Cargo (Combi) air service from Brisbane to Pohnpei with intermediate stops in Solomon Islands and Majuro.

4. FSM AIRPORTS (SECURITY) An ICAO Universal Security Audit was conducted at the FSM Dept. of TC&I and Pohnpei Int’l Airport from June 22 to July 1, 2004. The FSM Department of TC&I is currently drafting an action plan to address the recommendations cited in the Security Audit The department is soliciting the assistance of U.S. Department of Homeland Security in providing technical assistance on improving the National Civil Aviation Security Plan and other programs.

5. FSM AIRPORTS (SECURITY) We are also studying the possibilities of preparing the FSM to take over screenings at all 4 FSM airports by January 2006. Another option is to enter into an agreement with Continental Airlines to continue to provide all screenings at the FSM airports.

6. FSM AIRPORTS A Scope of Work On The Study On The Improvement Of Pohnpei International Airport was agreed and signed between the FSM Government, Pohnpei State Government, and Pohnpei Port Authority And Japan International Cooperation Agency (JICA) on December 6, 2004. The purpose of this study is to determine the economic feasibility of extending the runway and improving the support facilities.

7. FSM AIRPORTS The department understands that this study will not interfere nor is a conflict to the FSM/FAA AIP projects. JICA is fully aware of the FSM/FAA AIP projects and will most likely proceed with any expansion of the airport facilities after the completion of the rehabilitation of Pohnpei Airport’s runway, taxiway and apron.

8. FSM Dept. Transportation, Communications & Infrastructure The FSM Department of Transportation, Communications & Infrastructure is responsible for the preparation and implementation of the FSM Airports AIP projects under the guidance and leadership of Secretary Akillino H. Susaia.

9. The Honorable Akillino H. Susaia, Secretary Dept. of TC&I

10. FSM AIP PROJECTS On November 2004, an RFP for the FSM Airports AIP projects was advertised in newspapers in the FSM, Guam and Hawaii including the U.S. DOI’s website. Several reputable engineering companies responded with great interests.

11. FSM AIP PROJECTS The FSM AIP Selection committee selected three firms to assist the FSM in the preparation and implementation of its current 8 large scale projects. On February 18, 2005, a contract was signed and executed between the FSM and GMP Hawaii, Inc. GMP has since started working on its assigned projects.

12. FSM AIP PROJECTS On March 4, 2005, a contract between the FSM and Leo A. Daly Company was signed and executed for the design of the restoration and improvement of Yap Airport terminal. Another contract for the other awarded projects for Leo A Daly is scheduled to be executed this month. A contract between the FSM and E.M. Chen & Associates is also scheduled to be signed this month for the AOE surveys at the FSM airports.

13. FSM AIP PROJECTS Since the signing of their contracts, both companies (GMP and Leo A. Daly) have undertaken their first site visits. GMP has just wrapped up its topographic survey of Pohnpei International Airport. Leo A. Daly engineers were in Yap for their site visit. A proposed floor plan for the restoration of Yap’s terminal building has been submitted to my office and the FAA for our reviews.

14. KOSRAE INT’L AIRPORT

15. Kosrae Airport, under this AIP program, will be getting 1 ARFF vehicle with protective clothing and various required special tools. Expansion of the existing ARFF building to accommodate two 1500 gal ARFF vehicles

16. KOSRAE INT’L AIRPORT Improvement & Expansion of terminal apron Improvement of Airfield Markings, Lighting & Signage Performance of Obstruction Evaluation in accordance with FAA No. 405 Preparation of Airport Master Plan

17. Sleeping Lady In Kosrae

18. POHNPEI INT’L AIRPORT

19. Pohnpei Airport, under the AIP program, will be getting two ARFF vehicles with protective clothing and various required specialized tools

20. POHNPEI INT’L AIRPORT Rehabilitation of runway, taxiway and apron. FAA has granted authorization for a quick-fix of the two depression areas on the runway Improvement of Airfield Marking, Lighting & Signage. New ARFF building to accommodate two ARFF vehicles. We have been informed that the FAA wants the SAWR rooms build on top of these ARFF buildings to serve as observation decks.

21. POHNPEI INT’L AIRPORT Performance of an Obstruction Evaluation in accordance with FAA No. 405 Preparation of an Airport Master Plan

22. Nanmadol Ruines in Pohnpei

23. CHUUK INT’L AIRPORT

24. Chuuk Airport, under the AIP program, will be getting two 1500 gal ARFF vehicles with protective clothing and various required special tools New ARFF building to accommodate two ARFF vehicles

25. CHUUK INT’L AIRPORT Improvement of Airfield Markings, Lighting & Signage Performance of Obstruction Evaluation in accordance with FAA No. 405 Preparation of an Airport Master Plan

26. Famous dive spots in Chuuk’s lagoon

27. YAP INT’L AIRPORT

28. Design for the restoration/improveme nt of Yap terminal building is ongoing. Will be getting two 1500 gal ARFF vehicles with protective clothing & various required special tools

29. Yap INT’L AIRPORT New ARFF building to accommodate two ARFF vehicles Improvement of Airfield Markings, Lighting & Signage Rehabilitation of apron area Restoration of a temporary ARFF shed, perimeter fencing that meets FAA specifications and other miscellaneous items that sustained damages from typhoon Sudal in February of 2004.

30. Yapese boy voyaging on a bamboo raft

34. FSM Dept. of Transportation, Communications & Infrastructure Mahalo! 2005 Pacific Aviation Directors’ Workshop