UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC

Issued by the Department of Transportation on May 13 , 20 1 3

NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 2011

- 0084

______________________________________________________________________________ ____________ ___________________________ This serves as notice to the public of the action described below, taken by the Department official indicated (no additional confirming or der will be issued in this matter).

Application of KALITTA AIR, LLC filed 4/ 26 /1 3 for:

XX Renewal of e xemption under 49 U.S.C. 40109 to provide the following service:

Scheduled foreign air transportation of property and mail between any point or points between the

United States and to any point or points in B razil , via intermediate points, and beyond

.

XX E xtension of start

- up date, for an additional 90 days, for the four (4) weekly U.S.

- Brazil all

- cargo frequencies allocated to Kalitta by Notice of Act ion Taken dated May 13, 2011.



### XX Reallocation of three weekly frequencies for U.S.

- Brazil all

- cargo services. 1

XX Waiver of the advance filing requirement of 14 CFR Part 377 .10(c).

Applicant rep : Mark W. Atwood (202) 463

- 2513

DOT Analyst: Darren Jaffe (202) 366

- 2512

D I S P O S I T I O N

XX Granted

, renewal of exemption authority to Kalitta ( subject to conditions )

XX Denied , request for start

- up date extension (see discussion below)

XX Denied

, reallocation of three weekly frequencies (see discussion below)

XX Granted

, waiver of advance filing requirement

The above action renewing exemption authority was effective when taken: May 13

, 2013

, through May

13 , 201 5

.

The above action denying the start

- up date extension was effective when taken: May 13 , 2013

.

The above action denying the reallocation of three weekly frequencies was effective when taken: May 13

, 2013

.

The above action granting a waiver of the advance filing requirement was effective when taken: May 13

, 2013

.

1 Kalitta states that the Department allocated seven frequencies to the carrier by Notice of Action Taken dated May
13, 2011 , in this docket . Four were to become available on October 1, 2011 and three on October 1, 2012. In its
motion, Kalitta states that the most recent start

- up waiver was granted for four of the seven frequencies and is set to expire on June 30, 2013

. Three frequencies have revert ed to the Department. Kalitta has included a reallocation

request for the reverted frequencies as part of its motion.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 Brazil, as amended.

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 nec essity

XX Standard exemption conditions (attached)

Discussion : We have already granted Kalitta three start

- up extensions for the four U.S.

- Brazil all

- cargo frequencies allocated to it on May 13, 2011. It has provided no persuasive basis on the present record for us to conclude that it would institute service before the expiration of the fourth extension that it is seeking here. Similarly, Kalitta has not demonstrated on the record that it has firm current plans to use the three

U.S.

- Brazil all

- cargo frequencies which it now requests.

In the circumstances presented, and taking into consideration the entire record before us, we find that th e public interest would be best served by not further extending Kalitta’s start

- up date and by instead reassigning the remaining four frequencies to t he unallocated pool and by not reallocat ing Kalitta the

three additional weekly U.S.

- Brazil all

- cargo freq uencies it requests.

_____________________________________________________________________________________

On the basis of data officially noticeable under Rule 24(g) of the Department's regulations, we found the applicant qualified to provide the exempt ion 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 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 thi s 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://www.regulations.gov

### ATTACHMENT 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 fro m 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, the Transportation Security Administration, and with all applicable U.S. Government require ments concerning security, including, but not limited to, 49 CFR Part 1544. 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 fr om 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;

(7) Com ply 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 applicabl e 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.

1/2008