UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC

Issued by the Department of Transportation on August 23 , 20 1 3

NO TICE OF ACTION TAKEN

– DOCKET DOT

- OST

- 20 1 3

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_____________________________________________________________________________________ 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).

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

XX E xemption 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

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Applicant rep s : Russel l E. Pommer (202) 822

- 9121 DOT Analyst: David R. Christofano (202) 366

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D I S P O S I T I O N

XX Granted (subject to conditions, see below ; see also D iscussion 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

re sponse

. FedEx states that it does not oppose the grant of Atlas’ s application

, but request s 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 A tlas 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 right s to operate via intermediate points are limited to a maximum of three points

, and that

approva l 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 re sponse , 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, a t 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

.customa ry for the Department to impose a dormancy condition in situations where, as here, the applicable bilateral agreement limits the number of 5 th freedom points that may be serve d, but not the number of U.S. carriers or their frequencies.

We are grant ing Atl as’s exemption request and select ing 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, includ ing FedEx. If no U.S. air carrier

utilize s the intermediate points selected, FedEx or any other U.S. air carrier can submit a n 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

.

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

ap plicant 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 w ith 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 r eferenced 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 exempte d 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

T ransportation 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, th e 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 appli cable 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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