UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on April 28, 2010



### NOTICE OF ACTION TAKEN -- DOCKET OST-1998-3771

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

Applicant: LIAT (1974) Limited Dates Filed: September 30, 2008 and February 26, 2009, as amended January 21, 2010

Relief requested:

Renew exemption under 49 USC §40109, issued by Notice of Ac tion Taken dated February 28, 2008, in this Docket, to engage in (1) scheduled foreign air transportation of persons, property and mail between (a) the coterminal points Antigua and Barbuda, Montserrat, and St . Kitts and Nevis; via the intermediate points Anguilla, the British Virgin Islands, and St. Maarten; and the coterminal points St. Croi x, St. Thomas, and San Juan, Puerto Rico; and beyond to Santo Domingo, the Dominican Republic; (b) the coterminal points Antigua and Barbuda, a nd St. Kitts and Nevis, via the intermediate points St. Maarten and St. Lucia; and the term inal point Miami, Florida; (c) San Juan and St. Vincent, and beyond to Port of Spain, Trinidad; and (d) San Juan and Dominica; and (2) charter foreign air transportation of persons, property and mail pursuant to 14 CFR Part 212 of the De partment’s regulations. LIAT asks that this authority be renewed for a period of two years.

Applicant representative: Lee A. Bauer, 202-331-3300 DOT analyst: George Wellington, 202-366-2391

Related pleadings: By separate application dated Septembe r 30, 2008, in this Docket, LIAT requested to amend its current exemption authority (described above), to add author ity to engage in scheduled foreign air transportation of persons, property and mail between San Juan, Puerto Rico and the British Virgin Isla nds, on a stand-alone, nonstop basis. Hyannis Air Service, Inc. d/b/a Cape Air filed in opposition to this request, and to the exemption renewal application to the extent that the renewal incorporated the request for San Juan-British Virgin Islands authority. LIAT and Hyannis Air filed additional pleadings on this matter. 1 On January 21, 2010, LIAT withdrew its request for San Juan-British Virgin Islands authority.

DISPOSITION

Action: Approved in part, dismissed in part 2 Action date: April 28, 2010

Effective dates of authority granted: April 28, 2010, through April 28, 2011.

Except to the extent exempted/waived, this authority is subj ect to the terms, conditions, and limitations of our standard exemption conditions (attached).

Remarks: We found that LIAT has been properly licensed by the Government of Antigua and Barbuda to conduct the operations at issue here, that it continues to be substantia lly owned by a consortium of Caribbean countries, and that reciprocity and our overall aviation rela tions with those owner countries support grant of the renewed authority sought

1 Hyannis Air Service accompanied a November 3, 2008 pleading with a motion for leave to file. Good cause having been shown, we will grant the motion.

2 LIAT sought authority for a two-year period. The one-year dura tion of the authority we granted is consistent with our usual policy of granting exemption authority in th e circumstances presented. We, therefore, dismissed the application to the extent that it sought authority for a longer period.by the applicant. In light of LIAT’s January 21, 2010 am endment to the application, withdrawing its request to conduct San Juan-British Virgin Islands service, the con cerns raised by Hyannis Air Service are now moot.

Action taken by: Paul L. Gretch, Director, Office of International Aviation

_______________________________________________________________________________________________________________________________ Under authority assigned by the Department in its regula tions, 14 CFR Part 385, we found that (1) our action was consistent with Department policy; (2) the applicant was qualified to perform its proposed operations; (3) grant of the authority was consistent with the public interest; and (4) 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/deferred/dismissed, 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 th e 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

### 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 Fede ral 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, except as otherwise provided fo r in the U.S.-U.K. Air Services Agreement;

(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