BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

Application of 

JAT AIRWAYS A.D. BELGRADE 

for an Exemption pursuant to 

49 U.S.C. §40109 

Docket DOT-OST-2013-

APPLICATION OF JAT AIRWAYS A.D. BELGRADE FOR AN EXEMPTION 

Communications with respect to this document should be sent to: 

Anita M. Mosner 

Jennifer M. Nowak 

HOLLAND & KNIGHT LLP 

800 17th Street, N.W., Suite 1100 

Washington, D.C. 20006 

Phone: (202)419-2604 

Fax: (202) 955-5564 

anita.mosner(5)hklaw.com 

Attorneys for 

Jat Airways a.d. Belgrade 

Dated: September 19, 2013 

NOTICE: THE APPLICANT IS REQUESTING EXPEDITED APPROVAL FROM THE 

DEPARTMENT AND WILL POLL ALL INTERESTED PARTIES. 
BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

Application of 

JAT AIRWAYS A.D. BELGRADE 

for an Exemption pursuant to 

49 U.S.C. §40109 

Docket DOT-OST-2013-

APPLICATION OF JAT AIRWAYS A.D. BELGRADE FOR AN EXEMPTION 

Pursuant to 49 U.S.C. § 40109 and Subpart C of the Department's Rules of 

Practice, Jat Airways a.d. Belgrade ("JAT") hereby applies for an exemption from 49 

U.S.C. § 41301 that would enable it to provide scheduled foreign air transportation of 

persons, property, and mail between Serbia and the U.S. on a codeshare-only basis, as 

described further herein. 

In support of this application, JAT states as follows: 

1. JAT requests an exemption to the extent necessary to permit it hold out 

service to the U.S. by placing its code on flights operated to the U.S. by current or future 

commercial partners which hold the appropriate authority to operate service to the 

United States, or through authorized lease arrangements. JAT has immediate plans to 

offer codeshare service to the U.S. on flights operated by Etihad Airways P.J.S.C. 

("Etihad"). Initially, JAT plans to place its "JU*" code on flights operated by Etihad 

between Abu Dhabi (AUH) on the one hand, and New York (JFK), Chicago (ORD), and 

Washington, DC (IAD) on the other hand, that connect with JAT's services to Belgrade 
JAT AIRWAYS 

APPLICATION FOR EXEMPTION 

(BEG).1 JAT does not plan on operating flights to the U.S. using its own aircraft at this 

time. 

2. JAT acknowledges that the Republic of Serbia is currently rated as 

"Category 2" under the Federal Aviation Administration's International Safety 

Assessment ("IASA") program. However, the Department routinely approves 

applications by foreign air carriers form IASA Category 2 countries when the services 

to/from the U.S. will be offered strictly on a codesharing or wet lease arrangement with a 

duly authorized air carrier, as is the case here. 

3. Because the United States and the Republic of Serbia do not currently 

have a bilateral air service agreement in place, JAT is requesting this authority based on 

principles of comity and reciprocity, and submits that the circumstances here fully 

warrant a grant of authority to JAT. U.S. carriers United Airlines and US Airways 

currently hold out service to Belgrade on flights operated by third country carriers, which 

would support a grant of similar authority to JAT to hold out service to the U.S. in 

conjunction with its own commercial partners.2 Moreover, the Department previously 

has found it to be in the public interest to grant authority to JAT based on reciprocity 

with then-Serbia and Montenegro.3 

1

 Etihad will be filing a separate request for a Statement of Authorization to display the JU* airline 

designator code on its U.S.-UAE flights. 

2

 United places its code on flights operated by Swiss International Airlines between Zurich (ZUR) 

and BEG, on flights operated by Lufthansa between Frankfurt (FRA)/Munich (MUC) and BEG, 

and on flights operated by Austrian Airlines between Vienna (VIE) and BEG. US Airways places 

its code on flights operated by Lufthansa between FRA and BEG. 

3

 See Notice of Action Taken in Docket OST-1996-1182 (Oct. 2, 2003); Notice of Action Taken in 

Docket OST-1996-1183 (Feb. 23, 2005). 

2
JAT AIRWAYS 

APPLICATION FOR EXEMPTION 

4. JAT is an air carrier organized and registered under the laws of the 

Republic of Serbia, with its headquarters located at Bulevar umetnosti 16A, 11000 

Belgrade, Serbia. 

5. JAT was founded in 1947 and operates scheduled services to 50 

destinations in Europe, Australia and the Middle East. JAT previously operated to the 

U.S. as a Yugoslavian air carrier, beginning air charter service to the U.S. in 1970 and 

scheduled service in 1977.4 JAT operated nonstop daily service between points in thenYugoslavia and New York (JFK) and Chicago (ORD) until 1992 when service was halted 

on foreign policy grounds. Full diplomatic relations between the Federal Republic of 

Yugoslavia and the U.S. were re-established in 2000,5 and JAT briefly resumed 

scheduled service to the U.S. on a codeshare basis with Uzbekistan Airways from 2003-

2004.6 

6. The Civil Aviation Directorate of the Republic of Serbia has regulatory 

authority jurisdiction over JAT. The Directorate's address is Bulevar Zorana Djindjica 

144, 11070 New Belgrade, Serbia. 

7. JAT holds an Air Operator Certificate ("AOC") issued by the Civil Aviation 

Directorate of the Republic of Serbia. The AOC will expire May 5, 2014. JAT will submit 

a timely application for renewal of the authority before its expiration. Exhibit A contains a 

copy of JAT's AOC. 

4

 JAT originally was issued a foreign air carrier permit under Order 1976-6-165 (Jun. 21, 1976). 

5

 Serbia is the successor state to the Federal Republic of Yugoslavia, which was re-named 

Serbia and Montenegro in 2003. Montenegro broke off from Serbia in 2006. 

See Notice of Action Taken in Docket OST-1996-1182 (Oct. 2, 2003). 

3
JAT AIRWAYS 

APPLICATION FOR EXEMPTION 

8. JAT is owned and controlled by Serbian citizens. JAT is a joint stock 

company for air transportation owned by the Serbian Government.7 The members of its 

Board of Directors are Serbian citizens. See Exhibit B for list of the names and 

citizenship of the directors. 

9. JAT has an experienced and capable management team. The names, 

titles, and citizenship of these individuals are set forth in Exhibit C. 

10. JAT is financially qualified to provide the services at issue here. Details 

about JAT's finances are being submitted under seal (Exhibit D). These materials 

establish that JAT meets and exceeds the Department's financial fitness criteria. As the 

financials for the airline are not disclosed to third parties, JAT is submitting this 

information along with a Motion for Confidential Treatment. 

11. JAT does not hold any interest in any U.S. carrier or in any other foreign 

carrier. Other than the arrangements noted in this application, , JAT is not a party to any 

agreements or cooperative working arrangements with any U.S. or foreign air carrier that 

would affect the proposed services to the United States. 

12. The Republic of Serbia is a signatory of the International Convention on 

Civil Aviation (ICAO), and JAT's maintenance and training programs comply with all 

relevant ICAO annexes. 

13. JAT's insurance coverage meets or exceeds the liability limits of 14 

C.F.R. Part 205. Exhibit E contains a copy of JAT's Certificate of Insurance. 

7

 Please note that JAT currently is in negotiations with Etihad Airways P.J.S.C. ("Etihad") 

regarding Etihad's proposed purchase of a 49% stake in JAT. If the purchase deal is finalized, 

JAT will remain substantially owned and effectively controlled by Serbian citizens. 

4
JAT AIRWAYS 

APPLICATION FOR EXEMPTION 

14. JAT has executed a Warsaw Convention Liability Waiver (OST Form 

4523). See Exhibit F. 

15. JAT has had no fatal accidents or tariff violations in the past five years. 

16. The requested authority will not result in additional annual aircraft fuel 

consumption exceeding 10 million gallons. Grant of the requested exemption would not 

constitute a major regulatory action under the Energy and Conservation Act of 1975, as 

defined in 14 C.F.R. § 313.4. 

17. JAT does not intend to operate flights to the U.S. using its own aircraft at 

this time, and thus will not be filing a family support plan as required by 49 U.S.C. § 

41313 or a passenger manifest statement as required by 14 C.F.R. Part 243. Should 

JAT begin to operate service to the U.S., it will file a family support plan and a passenger 

manifest statement at that time. 

WHEREFORE, for the foregoing reasons, JAT respectfully requests that the 

Department grant its application for an exemption so that the carrier may conduct foreign 

air transportation of persons, property, cargo, and mail as provided for by the principles 

of comity and reciprocity. JAT further requests any different or additional relief that the 

Department may deem necessary. 

5
JAT AIRWAYS 

APPLICATION FOR EXEMPTION 

Respectfully submitted, 

Anita M. Mosner 

Jennifer M. Nowak 

HOLLAND & KNIGHT LLP 

800 17th Street, N.W., Suite 1100 

Washington, D.C. 20006 

Phone: (202)419-2604 

Fax: (202) 955-5564 

anita.mosner@hklaw.com 

Attorneys for 

Jat Airways a.d. Belgrade 

6
JAT AIRWAYS 

APPLICATION FOR EXEMPTION 

TABLE OF EXHIBITS 

Exhibit A JAT Air Operator Certificate 

Exhibit B Board of Directors 

Exhibit C Management Team 

Exhibit D Financial Statements 

Exhibit E Certificate of Insurance 

Exhibit F Warsaw Convention Liability Waiver 
EXHIBIT A 

AIR OPERATOR CERTIFICATE 



EXHIBIT B 

BOARD OF DIRECTORS 

Name Citizenship 

Dane Kondić (President of the Board) Serbian/Australian 

Dobrivoje Glavonić Serbian 

Ana Jović Serbian 

Gmitar Dugalić Serbian 

Miroslav Stanojević Serbian 

Velibor Slavuj Serbian 

Dragan Djoković Serbian 

Slobodan Živković Serbian 

Stevica Spajić Serbian 

Mihailo Jovanović Serbian 
EXHIBIT C 

JAT AIRWAYS OFFICERS AND KEY MANAGEMENT PERSONNEL 

Name Title Citizenship 

Dane Kondić Chief Executive Officer Serbian/Australian 

Siniša Grbić Security Manager Serbian 

Svetislav Vranić Safety Manager Serbian 

Velibor Slavuj Chief Operating Officer Serbian 

Aleksandra Matković Director of Ground Operations Serbian 

Slavoljub Djordjević Director of Continuing Airworthiness 

Management Serbian 

Zoran Rakić Director of Flight Operations Serbian 

Jovan Glišić Chief Pilot Serbian 

Gmitar Dugalić Chief Commercial Officer Serbian 

Miroslav Stanojević Chief Corporate Affairs Officer Serbian 

Ana Jović Chief Financial Officer Serbian 
EXHIBIT D 

JAT AIRWAYS FINANCIAL STATEMENTS 

FILED UNDER SEAL 

WITH MOTION FOR CONFIDENTIAL TREATMENT 
EXHIBIT E 

INSURANCE CERTIFICATE 


EXHIBIT F 

WARSAW FORM 
Docket OST 95-236

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:

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 Carriershall avail itself of the limitation of liability provided in the Convention forthe Unification of Certain Rules

Relating to lnternational 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 liabili$ 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 I, 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 LIABILIry

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 f

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

limited in most cases to proven damages notto 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 liabilig under the Warsaw Convention or such special contracts of carriage. For further

information please consult your airline or insuranee 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.l

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

become a party to this Agreement by signing a counterpart hereof and depositing it with DOT.

5. Any Carrier party hereto may withdraw from this Agreement by giving twelve (12) months' written notice of withdrawal to DOT

and the other Carriers parties to the Agreement.

€-itn"r. "lternaiiiEiay 

b" ,sed. -

(Signature and Da!q) _. -+r'-^ ,.

bfr 

(printed Name anu iiil6) - ilih D"FE:E""*tive Director for sales & Marketing

tuW

OST Form 4523 (Formerly CAB Form 263)

(Name and Address of Carrier) JatAirways, Bulevar umetnosti 16A, 11070 Belgrade, Serbia