UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on August 23, 2013

NOTICE OF ACTION TAKEN – DOCKET DOT-OST-2013-0149

_____________________________________________________________________________________

This serves as notice to the public of the action described below, taken by the Department official indicated (no 

additional confirming order will be issued in this matter).

Application of ATLAS AIR, INC (ATLAS) filed 8/6/13 for:

XX Exemption for two years under 49 U.S.C. §40109 to provide the following service:

Scheduled foreign air transportation of property and mail from any point or points in the United States, 

to any point or points in the Kingdom of Saudi Arabia, via intermediate points and beyond.

1

Applicant reps: Russell E. Pommer (202) 822-9121 DOT Analyst: David R. Christofano (202) 366-0584

D I S P O S I T I O N

XX Granted (subject to conditions, see below; see also Discussion below)

The above action was effective when taken: August 23, 2013 through August 23, 2015.

Action taken by: Paul L. Gretch, Director

 Office of International Aviation

XX The authority granted is consistent with the Air Transport Agreement between the United States and 

the Kingdom of Saudi Arabia.

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 necessity

XX Standard exemption conditions (attached)

Discussion: Federal Express Corporation (FedEx) filed an answer to Atlas’s application and Atlas filed a 

response. FedEx states that it does not oppose the grant of Atlas’s application, but requests that the Department 

impose a 90-day dormancy condition on the use of the intermediate points associated with Atlas’s services such 

that another carrier could request selection of different intermediate points if Atlas were to stop operations on 

the route. FedEx notes that, under the U.S.-Saudi Arabia Open Skies Agreement, there is a transitional period 

during which rights to operate via intermediate points are limited to a maximum of three points, and that

approval of Atlas’s request to use two of the three available points would limit the service options available to 

other carriers during the transitional period.

In its response, Atlas asserts that the 90-day dormancy condition requested by FedEx is inappropriate in this 

situation. It notes that all U.S. carriers, including FedEx, will be able to offer services to Saudi Arabia via 

Luxembourg and Abu Dhabi, and that the third point remains available to be selected. Atlas states that it is not 

 1 Under the U.S.-Saudi Arabia Air Transport Agreement, the United States may select up to three intermediate points for 

U.S. carrier service until May 27, 2016, at which time all intermediate points will become available for U.S. carrier service. 

Atlas requests that the Department select Luxembourg and Abu Dhabi, United Arab Emirates, as two of the three permitted 

intermediate points. Following our action here, one intermediate point remains available to be selected by the United 

States. 
customary for the Department to impose a dormancy condition in situations where, as here, the applicable 

bilateral agreement limits the number of 5th freedom points that may be served, but not the number of U.S. 

carriers or their frequencies.

We are granting Atlas’s exemption request and selecting Luxembourg and Abu Dhabi as intermediate points. 

However, we are not including a 90-day dormancy condition on the use of the points. The intermediate points 

requested by Atlas will be available for use by any other U.S. air carrier, including FedEx. If no U.S. air carrier

utilizes the intermediate points selected, FedEx or any other U.S. air carrier can submit an application to the 

Department requesting selection of different intermediate points, and we will consider any such request based on 

the record developed at that time. 

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On the basis of data officially noticeable under Rule 24(g) of the Department's regulations, we found the 

applicant qualified to provide the 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 exemption 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 this 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 from 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 

requirements 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 from 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) Comply 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 

applicable 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.

 

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