Application of 

BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

NORTHERN AIR CARGO, INC. Docket DOT -OST -2014-__ _ 

for an Exemption and Certificate of 

Public Convenience and Necessity -

Blanket Open Skies 

APPLICATION OF NORTHERN AIR CARGO, INC. 

FOR AN EXEMPTION AND A CERTIFICATE 

OF PUBLIC CONVENIENCE AND NECESSITY 

Communications with respect to this document must be served upon: 

Date: November 12, 2014 

Anita M. Mosner 

Jennifer M. Nowak 

HOLLAND & KNIGHT LLP 

800 1 ih Street, NW 

Suite 1100 

Washington, D.C. 20006 

(202) 419-2604 

(202) 955-5564 (fax) 

anita.mosner@hklaw.com 

Attorneys for 

NORTHERN AIR CARGO, INC. 

NOTICE: ANY PARTY MAY FILE AN ANSWER TO THIS APPLICATION. THE 

APPLICANT IS REQUESTING EXPEDITED RELIEF FROM THE DEPARTMENT AND 

WILL POLL ALL INTERESTED PARTIES. 
Application of 

BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

NORTHERN AIR CARGO, INC. Docket DOT -OST -2014-__ _ 

for an Exemption and Certificate of 

Public Convenience and Necessity -

Blanket Open Skies 

APPLICATION OF NORTHERN AIR CARGO, INC. 

FOR AN EXEMPTION AND A CERTIFICATE 

OF PUBLIC CONVENIENCE AND NECESSITY 

Pursuant to 49 U.S.C. § 41102, and 14 C.F.R. Part 302, Northern Air Cargo, Inc. 

("NAC") hereby applies for a Blanket Open Skies Certificate of Public Convenience and 

Necessity that would allow NAC to provide scheduled foreign air transportation of 

property and mail between the United States and all countries with which the United 

States has entered into an open skies agreement, as well as any country with which the 

United States may in the future enter into such an agreement, once the agreement is 

being applied by both countries. 1 

Pursuant to 49 U.S.C. § 40109 and the Department's streamlined licensing 

procedures, 2 NAC also requests on an expedited basis a corresponding exemption 

authorizing NAC to provide the services described herein pending issuance of a 

Certificate of Public Convenience and Necessity. 3 NAC requests that the Department 

expeditiously grant the exemption authority for a two-year period, or until the requested 

1 This request includes countries that are signatories to the Multilateral Agreement on the 

Liberalization of International Air Transport. 2 Notice, Docket OST-2005-22228 (Aug. 23, 2005). 3 Northern Air Cargo will poll all interested carriers served with this Application. 
Northern Air Cargo, Inc. 

Application for Certificate and Exemption 

certificate authority becomes effective, whichever occurs first. NAC further requests that 

the Department approve the certificate authority for an indefinite term. 

In support of this Application, NAC states as follows: 

1. NAC is a citizen of the United States, as that term is defined in the Federal 

Aviation Act. NAC is wholly owned by Northern Aviation Services, which in turn is wholly 

owned by Saltchuk Resources, Inc. Saltchuk Resources, Inc. has an eight-member 

Board of Directors. Each director is a U.S. citizen, except for Stein Kruse, who is a 

citizen of Norway. All shareholders and persons who have the power to influence the 

management of the Applicant, or other persons holding any voting interest in the 

Applicant, are U.S. citizens. 

2. NAC is a corporation organized under the laws of the State of Alaska, with 

a mailing address at 4510 Old International Airport Road, Anchorage, Alaska, 99502. 

3. NAC operates a fleet of four aircraft, consisting of two Boeing 737-232 

aircraft (both owned by NAC) and two Boeing 737-301 aircraft (one owned by NAC, and 

one leased). 

4. The Department has granted NAC a Domestic All-Cargo Certificate of 

Public Convenience and Necessity, 4 as well as a Certificate of Public Convenience and 

Necessity for Interstate and Overseas Transportation of Property and Mail and 

worldwide charter authority.5 The Department also found NAC fit to provide foreign air 

transportation when it issued a Certificate of Public Convenience and Necessity to 

provide scheduled all-cargo service on a North Pacific routing between Anchorage, 

Alaska and Magadan and Khabarovsk, U.S.S.R.6 

5. NAC clearly is fit, willing, and able to provide the services at issue. NAC 

4 CAB Order 1979-7-139 (July 19, 1979). 5 CAB Order 1982-12-60 (Dec. 15, 1982). By DOT Order 91-4-35 (Apr. 22, 1991), the 

Department reviewed and reaffirmed the fitness of Northern Air Cargo. 6 DOT Order 91-1-37 (Dec. 17, 1990). 

2 
Northern Air Cargo, Inc. 

Application for Certificate and Exemption 

has been in operation since 1956 and serves as Alaska's largest all-cargo carrier. NAC 

provides scheduled service to 13 locations within Alaska, including service to 

Deadhorse, supporting all of the companies doing business on the North Slope. In late 

2009, NAC began its "ad hoc" operations into the lower 48 states and currently flies ondemand charters to/from Laredo, Texas. NAC requests that the Department take official 

notice, pursuant to 14 C.F.R. § 302.24(g), of the economic authorities and data on file 

that support Northern Air Cargo's fitness. 

6. Granting the authority requested herein is in the public interest. New 

foreign scheduled all-cargo service will add competition in open skies markets, and 

provide additional shipping options for consumers. Further, NAG's application is 

consistent with the Open Skies Agreements between the United States and each of the 

countries included in the Department's List of Open Skies Agreements Currently Being 

Applied. 7 

7. NAC holds insurance coverage which exceeds the Department's 

requirements. A copy of Northern Air Cargo's Certificate of Insurance is attached as 

Exhibit A. 

8. NAC has executed and filed in Docket OST-1995-236 a Warsaw 

Convention Liability Waiver (OST Form 4523), a copy of which is attached as Exhibit B. 

9. Issuance of the requested authority will not constitute a major regulatory 

action under the Energy Policy and Conservation Act of 1975, as defined in Part 313 of 

the Department's regulations. The grant of this Application will result in an increase in 

fuel consumption of less than 10 million gallons. NAC has adequate fuel available for the 

services proposed. 

7 See http://www.dot.gov/policy/aviation-policy/open-skies-agreements-being-applied. 

3 
Northern Air Cargo, Inc. 

Application for Certificate and Exemption 

WHEREFORE, Northern Air Cargo respectfully requests that the Department 

issue an exemption on an expedited basis, and a Blanket Open Skies Certificate of 

Public Convenience and Necessity, consistent with the Department's streamlined 

licensing procedures. Northern Air Cargo further requests any further or different 

authority that the Department might deem necessary. 

Anita M. Mesner 

Jennifer M. Nowak 

HOLLAND & KNIGHT LLP 

Attorneys for 

NORTHERN AIR CARGO, INC. 

4 
EXHIBIT A 

INSURANCE CERTIFICATE 
Office of the Secretary 

of Transportation 

AGENCY DISPLAY OF ESTIMATED BURDEN 

The public reporting burden for this collection of information is estimated to average 30 minutes per response. If you wish 

to comment on the accuracy of the estimate or make suggestions for reducing this burden, please direct your comments 

to: U.S. Department of Transportation, Office of Aviation Analysis, X-56, 400 7th St., SW., Washington, D.C. 20590. 

According to the Paperwork Reduction Act of 1995, no persons are required to respond to a collection of information 

unless it displays a valid OMB control number. 

NOTE: For information on where to file completed copies of this form, see FILING INSTRUCTIONS below. 

OMB No. 2106-0030 Expires 9-30-2007 

U.S. AIR CARRIERS - CERTIFICATE OF INSURANCE 

POLICIES OF INSURANCE FOR AIRCRAFT ACCIDENT BODILY INJURY 

AND PROPERTY DAMAGE LIABILITY 

FILING INSTRUCTIONS: File a signed original of this form with the Federal Aviation Administration, AFS-260, 800 Independence Ave., S.W., 

Washington, D.C. 20591. (See EXCEPTIONS 1 and 2 below.) 

 EXCEPTION 1: If Block 2B on the reverse is filled in because the insured is a commuter air carrier, file a signed original of this form with the 

Department of Transportation, Air Carrier Fitness Division, X-56, 400 7th St., SW, Washington, DC 20590. 

 EXCEPTION 2: For any insured that is located in the State of Alaska (regardless as to whether Block 2A, 2B, or 2C is filled in), file a signed 

original of this form with the Federal Aviation Administration, Alaskan Region Hq., AAL-230, 222 W. 7th Ave., #14, Anchorage, Alaska 99513. 

(Please type information, except signatures.)

 

THIS CERTIFIES THAT: _SEE ATTACHED__________________________________________________________________________________ 

 (Name of Insurer) 

has issued a policy or policies of Aircraft Liability Insurance to _____Northern Air Cargo, Inc. ________________________________ 

_3900 Old International Airport Road, Anchorage, AK 99502_______________________FAA Certificate Number__NACA002A________ ____ 

(Name, address and FAA Certificate number of Insured U.S. Air Carrier) 

effective from 05/01/2014___ until ten (10) days after written notice from the insurer or carrier of the intent to terminate coverage is received by the 

Department of Transportation. 

NOTE: Part 205 of the Department’s Regulations does not allow for a predetermined termination date, and a certificate showing such a date is 

unacceptable. 

1. The Insurer (Check One): 

  is licensed to issue aircraft insurance policies in the United States; 

  is licensed or approved by the government of _______________________ to issue aircraft insurance policies; or 

  is an approved surplus line insurer in the State(s) of _________WA__________ 

2. The insurer assumes, under the policy or policies listed below, aircraft accident liability insured to minimums at least equal to 

 the following during operation, maintenance, or use of aircraft in “air transportation” as that term is defined in 49 U.S.C. 40102. 

(Complete applicable section(s) A, B, or C below): 

A. U.S. AIR TAXI OPERATORS (EXCLUDING U.S. COMMUTER AIR CARRIERS) WITH PART 298 AUTHORITY ONLY: 

The aircraft covered by this policy are SMALL AIRCRAFT (i.e., with 60 or fewer passenger seats or with a maximum payload capacity of 

18,000 pounds or less). (Complete separate or combined coverage as appropriate): 

 Separate Coverages: 

 Minimum Limit 

 Policy No. Type of Liability Each person Each Occurrence 

 _________________________ Bodily Injury Liability 

 (Excluding Passengers) $ 75,000 $300,000 

 _________________________ Passenger Bodily Injury $ 75,000 $ 75,000 x 75% of total number of 

 passenger seats 

 installed in aircraft 

 _________________________ Property Damage $100,000 

 Combined Coverage: The amount of coverage set forth below is a single limit of liability for each occurrence at least equal to the 

required minimums stated above for bodily injury (excluding passengers), property damage, and passenger bodily injury. 

Policy No.__________________________________ Amount of Coverage_________________________________ 

 This policy covers CARGO operations only and excludes passenger liability insurance. 

OST Form 6410 
B. U.S. COMMUTER AIR CARRIERS OR CERTIFICATED AIR CARRIERS OPERATING SMALL AIRCRAFT 

The aircraft covered by this policy are SMALL AIRCRAFT (i.e., with 60 or fewer passenger seats or with a maximum payload 

capacity of 18,000 pounds or less). (Complete separate or combined coverage as appropriate): 

 Separate Coverages: Minimum Limit 

 Policy No. Type of Liability Each person Each Occurrence 

 __________________ Combined Bodily Injury (Excluding Passengers other 

 than cargo attendants) and Property Damage Liability $300,000 $2,000,000 

 __________________ Passenger Bodily Injury $300,000 $300,000 x 75% of 

 total number of 

 passenger seats 

 installed in aircraft 

 Combined Coverage: The amount of coverage set forth below is a single limit of liability for each occurrence at least equal to the 

required minimums stated above for bodily injury (excluding passengers), property damage, and passenger bodily injury. 

Policy No.__________________________________ Amount of Coverage__________________________ 

 This policy covers CARGO operations only and excludes passenger liability insurance. 

______________________________________________________________________________________________________________________

_ C. U.S. CERTIFICATED AIR CARRIERS OPERATING LARGE AIRCRAFT 

The aircraft covered by this policy are LARGE AIRCRAFT (i.e., with more than 60 passenger seats or with a maximum payload capacity of 

more than 18,000 pounds). (Complete separate or combined coverage as appropriate): 

 Separate Coverages: Minimum Limit 

 Policy No. Type of Liability Each person Each Occurrence 

 __________________ Combined Bodily Injury (Excluding Passengers other 

 than cargo attendants) and Property Damage Liability $300,000 $20,000,000 

 __________________ Passenger Bodily Injury $300,000 $300,000 x 75% of 

 total number of 

 passenger seats 

 installed in aircraft 

 Combined Coverage: The amount of coverage set forth below is a single limit of liability for each occurrence at least equal to the 

required minimums stated above for bodily injury (excluding passengers), property damage, and passenger bodily injury. 

Policy Nos. SEE ATTACHED

 Amount of Coverage___$250,000,000_____________ 

 This policy covers CARGO operations only and excludes passenger liability insurance. 

______________________________________________________________________________________________________________________

_3. The policy or policies listed in this certificate insure(s) (Check One): Make and Model FAA or Foreign Flag 

 Registration No. 

 Operations conducted with all aircraft operated by the insured 

 Operations conducted with the following types of aircraft: 

 Operations with the following aircraft: (Use additional page if necessary) 

______________________________________________________________________________________________________________________

_4. Each policy listed in this certificate meets or exceeds the requirements in 14 CFR Part 205. 

 SEE ATTACHED ____ Caledonian Insurance Group, Inc.____ 

 (Name of Insurer) (Name of Broker, if applicable) 

_________c/o 100 Colony Square, 1175 Peachtree St. NE, Ste 1000 ______P.O. Box 60___________________________ 

 (Address) (Address) 

 Atlanta, GA 30361______________________________ ______Mercer Island, WA 98040 _____________ 

 (City, State, Zip Code) (City, State, Zip Code) 

________Brian Donnelly____________________________________ ______Anthony Cowan, President _____________ 

Contact (person who can verify the effectiveness of the coverage) (Officer or authorized representative) 

_____(404) 249-1800_______/__(404) 249-1917_____________________ ______(206) 232-9870 / (206) 232-9515________ 

 (Area Code, Phone Number) (Area Code, Fax Number) (Area Code, Phone Number) (Area Code, Fax Number) 

 ___________________________________________________________ _____________________________________________ 

 (Signature, if applicable) (Signature) 

 ___________________________________ ________________April 30, 2014

 (Date) (Date)
Named Insured: Saltchuk Resources, Inc.; Northern Aviation Services, Inc.; Aeko Kula, Inc. dba

Aloha Air Cargo; Northern Air Cargo, Inc. dba Northern Air Cargo

Policy Period: May 1, 2014 through May 1, 2015

SCHEDULE OF INSURERS:

INSURANCE COMPANY POLICY NUMBER % PARTICIPATION

National Union Fire Insurance Company of Pittsburgh, PA

through AIG Aerospace Insurance Services

100 Colony Square

1175 Peachtree Street NE, Suite 1000

Atlanta, GA  30361

AI ‐1859883‐07 20.00

Underwriters at Lloyd’s of London and Various Foreign

Insurance Companies through Aon Limited

8 Devonshire Square

London EC2M 4PL

AM1403971 25.50

One or More Member Companies of Global Aerospace

1 Sylvan Way

Parsippany, NJ 07054

337090 17.50

Houston Casualty Company

A subsidiary of HCC Insurance Holdings, Inc.

13403 Northwest Freeway

Houston, TX  77040

014988‐016 12.50

StarNet Insurance Company through  

Berkley Aviation, LLC

1101 Anacapa Street, Suite 200

Santa Barbara, CA 93101

BA‐14‐05‐00031 12.50

Starr Surplus Lines Insurance Company and

Ironshore Specialty Insurance Company through  

Starr Aviation Agency, Inc.

3353 Peachtree Road N.E., Suite 1000

Atlanta, GA  30326

TBA 12.00
EXHIBIT B 

WARSAW FORM 
David W. Karp, President & CEO

11/11/2014

Northern Air Cargo, Inc.

4510 Old International Airport Road, Anchorage, AK 99502

e--

U.S. Department of Transportation 

Office of the Secretary of Transportation AGREEMENT 

The undersigned carriers (hereinafter referred to as "the Carriers") hereby agree as follows: 

Docket OST 95-236 

1. Each of the Carriers shall, effective May 16, 1966, include the following in its conditions of carriage, including tariffs embodying 

conditions of carriage filed by it with any government: 

"The Carrier shall avail itself of the limitation of liability provided in the Convention for the Unification of Certain Rules 

Relating to International Carriage by Air signed at Warsaw October 12th, 1929, or provided in the said Convention as amended by 

the Protocol signed at The Hague September 28th, 1955. However, in accordance with Article 22(1) of said Convention, or said 

Convention as amended by said Protocol, the Carrier agrees that, as to all international transportation by the Carrier as defined in 

the said Convention or said Convention as amended by said Protocol, which, according to the contract of Carriage, includes a 

point in the United States of America as a point of origin, point of destination, or agreed stopping place 

(1) The limit of liability for each passenger for death, wounding, or other bodily injury shall be the sum of US $75,000 

inclusive of legal fees and costs, except that, in case of a claim brought in a State where provision is made for separate 

award of legal fees and costs, the limit shall be the sum of US $58,000 exclusive of legal fees and costs. 

(2) The Carrier shall not, with respect to any claim arising out of the death, wounding, or other bodily injury of a passenger, 

avail itself of any defense under Article 20(1) of said Convention or said Convention as amended by said Protocol. 

Nothing herein shall be deemed to affect the rights and liabilities of the Carrier with regard to any claim brought by, on behalf 

of, or in respect of any person who has willfully caused damage which resulted in death, wounding, or other bodily injury of a 

passenger." 

2. Each Carrier shall, at the time of delivery of the ticket, furnish to each passenger whose transportation is governed by the 

Convention, or the Convention as amended by the Hague Protocol, and by the special contract described in paragraph 1, the following 

notice, which shall be printed in type at least as large as 10 point modern type and in ink contrasting with the stock on (i) each ticket; (ii) 

a piece of paper either placed in the ticket envelope with the ticket or attached to the ticket; or (iii) on the ticket envelope: 

"ADVICE TO INTERNATIONAL PASSENGER ON LIMITATION OF LIABILITY 

Passengers on a journey involving an ultimate destination or a stop in a country other than the country of origin are advised 

that the provisions of a treaty known as the Warsaw Convention may be applicable to the entire journey, including any portion 

entirely within the country of origin or destination. For such passengers on a journey to, from, or with an agreed stopping place in 

the United States of America, the Convention and special contracts of carriage embodied in applicable tariffs provide that the 

liability of 

[certain ]* 

[(name of carrier) and certain other] carriers parties to such special contracts for death of or personal injury to passengers is 

limited in most cases to proven damages not to exceed US $75,000 per passenger, and that this liability up to such limit shall not 

depend on negligence on the part of the carrier. For such passengers traveling by a carrier not a party to such special contracts or 

on a journey not to, from, or having an agreed stopping place in the United States of America, liability of the carrier for death or 

personal injury to passengers is limited in most cases to approximately US $10,000 or US $20,000. 

The names of Carriers parties to such special contracts are available at all ticket offices of such carriers and may be 

examined on request. 

Additional protection can usually be obtained by purchasing insurance from a private company. Such insurance is not 

affected by any limitation of the carrier's liability under the Warsaw Convention or such special contracts of carriage. For further 

information please consult your airline or insurance company representative." 

3. [This Agreement was filed with the Civil Aeronautics Board of the United States. The Board approved it by Order E-23680, 

adopted May 13, 1966. The Agreement (Agreement 18900) became effective May 16, 1966. On January 1, 1985, this Agreement 

became the responsibility of the Department of Transportation (DOT) by operation of law.] 

4. This Agreement may be signed in any number of counterparts, all of which shall constitute one Agreement. Any Carrier may 

become a party to this Agreement by signing a counterpart hereof and depositing it 1th OT. 

5. Any Carrier party hereto may withdraw from this Agreement by giving twel 

and the other Carriers parties to the Agreement. 

*Either alternative may be used. 

(Printed Name and Title) --------------------

(Name and Address of Carrier) -------------------

OST Form 4523 (Formerly CAB Form 263) 
CERTIFICATE OF SERVICE 

I hereby certify that I have this date served the foregoing document on the persons 

identified below by causing a copy to be sent by electronic mail. 

robert.wirick@aa.com 

howard. kass@aa. com 

sharon. pasley@fedex. com 

sllunsford@fedex.com 

cefelts@fedex. com 

dan. weiss@united. com 

sascha. vanderbellen@delta. com 

matwood@cozen.com (Counsel for Kalitta) 

jcanny@amerijet.com 

jrichardson@johnlrichardson.com (Counsel for Amerijet) 

rpommer@atlasair.com 

kevin. montgomery@polaraircargo. com 

anita.mosner@hklaw.com (Counsel for United Parcel Service) 

jennifer.nowak@hklaw.com (Counsel for United Parcel Service) 

rsilverberg@sgbdc.com (Counsel for ABX) 

jjohnson@sgbdc.com (Counsel for ABX) 

marshall.sinick@squirepb.com (Counsel for Alaska and Florida West) 

john@mietuslaw.com (Counsel for Centurion) 

jhill@cooley.com (Counsel for Hawaiian and Jetblue) 

perkmann@cooley.com (Counsel for Hawaiian and Jetblue) 

jyoung@yklaw.com (Counsel for Spirit) 

dkirstein@yklaw.com (Counsel for Spirit) 

bob.kneisely@wnco.com 

leslie. abbott@wnco. com 

thomas. ting@suncountry. com 

john.s.duncan@faa.gov 

cristinasa@state.gov 

#33892457_vl 

Peter Ormerod 

November 12, 2014