UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC

Issued by the Department of Transportation on February 7 , 20 12

NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 2006

- 24703

______________________________________________________________________________ ____________ ___________________________ This serves as notice to the public of the action described below, taken by the Department official indicated (no additional confirming or der will be issued in this matter).

Application of Southern Air Inc

. filed 1 / 1 8 / 1 2 for:

XX Renewal of an e xemption under 49 U.S.C. 40109 to provide the following service:

Scheduled all

- cargo foreign air transportation of property and mail between a point or points in the United States, directly or via any intermediate points, and Hong Kong and any third

- country points.

Applicant rep : Aa r on A. Goerlich (202) 776

- 3970

DOT Analyst: Darren Jaffe (202) 366

- 2512

D I S P O S I T I O N

XX Granted (subject to conditions, see below) 1

The above action was effective when taken: February 7 , 2012 , through February 7

, 2014 , or until 90 days after final Department action on Southern’ s request for a non

- open

- skies certificate in Docket

DOT

- OST

- 2005

- 22228, whichever occurs earlier. 2

Action taken by: Paul L. Gretch, Director

Office of International Aviation

XX The authority granted is consistent with the October 19, 2002, Memorandum of Understanding between the Government of the United States and the Government of the Hong Kong Special Administrative Region of the People’s Republic of China.

Except to the extent exempted or waived, this authority is subje ct to the terms, conditions, and limitations

indicated:

XX Holder’s certificates of public convenience and necessity

XX Standard exemption conditions (attached)

On the basis of data officially noticeable under Rule 24(g) of the Department's regulations, we found the applicant qualified to provide the exemption 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 authority was consistent with the public interest; and (3) grant of the authority would not constitute a major regulatory action under the Energy

1 Southern states that

, with respect to Hong Kong services, only fifth freedom markets are frequency limited. We

note that any operations serving intermediate or beyond points would be without local traffic rights unless it secures

fifth

- freedom Hong Kong frequencies for the car riage of local traffic.

2 Southern states that it has pending a U.S.

- Hong Kong certificate application in Docket DOT

- OST

- 2006

- 25478 that should be dismissed as moot upon issuance of the requested non

- open

- skies certificate.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 witho ut 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 th is 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

Pri ncipal 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 aut hority granted shall be effective only during the period when the holder is in compliance with the conditions imposed above.

1/2008