### UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on May 20, 2010



### NOTICE OF ACTION TAKE N -- DOCKET DOT-OST-2010-0130

_______________________________________________________________________________________________________________________________ _ This serves as notice to the public of the action described belo w, taken by the Department official indicated (no additional confirming order will be issued in this matter).

Applicant: VOLGA-DNEPR J.S. CARGO AIRLINE (Volga-Dnepr) Date Filed: May 13, 2010 (as amended)

Relief requested: Amend exemption from 49 USC § 40109(g) grante d on May 18, 2010, permitting the applicant to operate two, one-way, all-cargo charter flights, using its AN-124-100 aircraft, carrying outsized cargo on behalf of U.S. TRANSCOM, between Yuma MCAS, Arizona, and Kaneohe Bay MCAS, Hawaii, during the period May 26-30, 2010, to extend the effectiveness of that authority to June 3, 2010. The applicant states that the flights would carry a total of four CH-53 helicopters and support equipment. The applicant asserts that U.S. TRANSCOM needs the subject lift to ensure the smooth rotation of equipment without disruption to operational missions; that the U.S. TRANSCOM organi c lift scheduled to transport the cargo was diverted to other areas; that the cargo is too large for tran sportation on any commercially available U.S. aircraft; and that surface transportat ion is

not feasible because of the nature of the cargo and the urgency of the shipment. The applicant states that the second flight h as been rescheduled due to a closure of the Yuma airfield and reque sts amended authority so that it may operate that flight on June 2-3, 2010.

Applicant representative: Colon Miller, 832-585-8611 DOT analyst: Robert J. Finamore, 202-366-2405

Responsive pleadings: Volga-Dnepr served its initial and amended applications on t hose U.S. carriers operating large all-cargo

aircraft. Each carrier indicated that it did not have aircra ft available to conduct the proposed operations and that it had no comment or did not oppose grant of the requested authority.

Statutory Standards: Under 49 USC § 40109(g), we may authorize a foreign air carrier to carry commercial traffic between U.S. points ( i.e ., cabotage traffic) under limited circumstances. Specifically, we must find that the authority is required in the public interest; that because of an emergency cr eated by unusual circumstances not arising in the normal course of business the traffi c cannot be accommodated by U.S. carriers hol ding certificates under 49 USC § 41102; that a ll possible efforts have been made to place the traffic on U.S. carriers; and that the transportation is necessary to avoi d unreasonable hardship to the traffic invo lved (an additional required finding, concerning emergency transpor tation during labor disputes, was not relevant here).

DISPOSITION Action: Approved. Action date: May 20, 2010

Effective dates of authority granted: May 26-June 3, 2010.

Basis for approval: We are granting Volga-Dnepr’s request to ex tend the effective dates of its authority to operate its propos ed flights (described above), on behalf of U.S. TRANSCOM. We found that its request met all the relevant criteria of 49 USC § 40109(g) for the grant of an exemption of this type, and that the grant was required in the public interest. Specifically, we were persuaded that the need to move the cargo to ensure the smoot h rotation of equipment without disruption to operational missions ; the fact that the U.S. TRANSCOM organic lift scheduled to transport the cargo was diverted to other areas; and the unique, outsized nature of the cargo, constituted an emergency not arising in the normal course of business. Moreover, we find that th e unanticipated delay due to the Yuma airfield closure warrant s approval of the applicant’s amended request. Based on the representations of the U.S. carriers, we concluded that no U.S. carrier had aircraft available that could be used to conduct th e operations at issue here. We also found that grant of this authority would prevent unreasonable hardship to U.S. TRANSCOM. Finally, we found that the applicant was qua lified to perform its proposed operations.

Except to the extent exempted/waived, this authority is subject to our standard exemption conditions (attached) and to the cond ition that the applicant must comply with FAA-approved flight routings for the authorized operations. We may amend, modify, or revoke the authority granted in this Notice at any time without hearing at our discretion.

Action taken by: Susan L. Kurland Assistant Secretary for Aviation

and International Affairs

An electronic version of this document is available on the World Wide Web at: http://www.regulations.gov

### Foreign Carrier Exemption Conditions

In the conduct of the operations authorized , the foreign carrier applicant(s) shall:

(1) Not conduct any operations unless it holds a currently eff ective authorization from its homeland for such operations, and it has filed a copy of such authorization with the Department;

(2) Comply with all applicable requirements of the Fe deral Aviation Administration, the Transportation Security Administration, and with all applicable U.S. Government requirements concerning security, including, but not limited to, 14 CFR Parts 129, 91, and 36 and 49 CFR Part 1546 or 1550, as applicable. To assure compliance with all applicable U.S. Government requirements concerning secur ity, the holder shall, before commencing any new service (including charter flights) from a foreign airport that would be the holder’s last point of departure for the United States, contact its International Industry Representative (IIR) (form erly referred to as International Principal Security Inspector) to advise the IIR 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;

(3) Comply with the requirements for minimum insurance c overage contained in 14 CFR Part 205, and, prior to the commencement of any operations under this authority, file evid ence of such coverage, in the form of a completed OST Form 6411, with the Federal Aviation Administration’s Program Management Branch (AFS-260), Flight Standards Service (any changes to, or termination of, insuran ce also shall be filed with that office);

(4) Not operate aircraft under this authority unless it complies with operational safety requirements at least equivalent to Annex 6 of the Chicago Convention;

(5) Conform to the airworthiness and airman competency requirements of its Government for international air services;

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

(7) Agree that operations under this authority constitute a waiver of sovereign immunity, for the purposes of 28 U.S.C. 1605(a), but only with respect to those actions or proceedings instituted against it in any court or other tribunal in the United States that are: (a) based on its operations in intern ational air transportation that, according to the contract of carriage, include a point in the United States as a point of or igin, point of destination, or agreed stopping place, or for which the contract of carriage was purchased in the United States; or (b) based on a claim under any international agreement or treaty cognizable in any court or other tri bunal of the United States. In this condition, the term "international air transportation" means "international tran sportation" as defined by the Warsaw Convention, except that all States shall be considered to be High Cont racting Parties for the purpose of this definition;

(8) Except as specifically authorized by the Department, orig inate or terminate all flights to/from the United States in its homeland;

(9) Comply with the requirements of 14 CFR Part 217, concerning the reporting of scheduled, nonscheduled, and charter data;

(10) If charter operations are authorized, except as otherwi se provided in the applicable aviation agreement, comply with the Department's rules governing char ters (including 14 CFR Parts 212 and 380); and

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

This authority shall not be effective during any period wh en the holder is not in compliance with the conditions imposed above. Moreover, this authority cannot be sold or otherwise transferred without explicit Department approval

under Title 49 of the U.S. Code.

12/2007