BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

Amendment to Application of Silk Way Airlines Limited Liability Company for a foreign air carrier permit pursuant to 49 U
. S
.C
. 

### § 41302 and an exemption pursuant to 49 U.S.C. 

### § 40109(c) to engage in cargo charter service between the Republic ofAz erbaijan and the United States ) ) ) ) ) ) ) ) ) ) ) Docket OST 2007-28603 Docket OST 2007-28604

MOTION FOR LEAVE TO FILE AND RESPONSE TO ANSWERS OF KALITTA AIR LLC AND NATIONAL AIRLINES TO AMENDMENT TO APPLICATION OF SILK WAY AIRLINES LIMITED LIABILITY COMPANY FOR A FOREIGN AIR CARRIER PERMIT AND AN EXEMPTION

Communications with respect to this document should be sent to: Zaur Akhundov President Shamsaddin Mirsalayev Director Silk Way Airlines Limited Liability Company Heydar Aliyev International Airport AZ I 044 Baku, Republic ofAzerbaijan

Dated: March 31, 2015 Glenn P. Wicks Ekaterina A. Grimes

The Wicks Group , PLLC 733 I0 1 h Street, NW, Suite 3002 Washington, DC 2000 I (202) 457-7790 gpwicks@wicks-group.com
For Silk Way AirlinesBEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

Amendment to Application of Silk Way Airlines Limited Liability Company for a foreign air carrier permit pursuant to 49 U.S.C. § 41302 and an exemption pursuant to 49 U.S.C. § 40109(c) to engage in cargo charter service between the Republic ofAzerbaijan and the United States ) ) ) ) ) ) ) ) ) ) )



# ____________ __________________) Docket OST 2007-28603 Docket OST 2007-28604

MOTION FOR LEAVE TO FILE AND RESPONSE TO ANSWERS OF KALITTA AIR LLC AND NATIONAL AIRLINES TO AMENDMENT TO APPLICATION OF SILK WAY AIRLINES LIMITED LIABILITY COMPANY FOR A FOREIGN AIR CARRIER PERMITAND AN EXEMPTION

On June 25 , 2007 " Silk Way " Airlines Limited Liability Company (" Silk Wa y Airlines" LLC " or " Silk Way Airlines" or " Silk Way " ) applied for a foreign air carrier permit and an exemption " authorizing it to engage in charter cargo air transportation operations (1) between any point or points in Azerbaijan and any point or points in the United States ; and (2) between any point or points in the United States and any point or points in a third country or countries subject to pertinent national, bilateral and international agreements , rules and regulations " (see Dockets DOT-OST-2007-28603 and DOT-OST-2007-28604)
. Pending the grant to the Republic of Azerbaijan ofthe category 1 status under the US Federal Aviation Administration (" FAA " ) IASA program, the referenced applications submitted by Silk Way have not been acted upon by the Department. Following the grant to the Republic of Azerbaijan of the category 1 status under the FAA IASA program, on February 17 , 2015 , Silk Way submitted an Amendment to its docketed applications referenced above. The purpose ofthe Amendment was 2to update the evidentiary information contained in the applications and the exhibits thereto and request action on the long-standing applications that could not have been acted on prior to the grant to Azerbaijan ofthe FAA Category 1 status . On March 4 , 2015 and March 10,2015, respectively Kalitta Air LLC (hereinafter " Kalitta " ) and National Airlines (hereinafter " National " ) submitted their Answers objecting to the referenced Amendment. Silk Way hereby motions the Department for leave to file its response to the referenced objections , and states as follows: 1. Kalitta and National assert objections that are based upon those raised in Docket DOT

-OST

-2014-0111
. As such, Silk Way has already responded to them
. Namely, the allegation that " comity and reciprocity does not exist for US carriers in Azerbaijan " is incorrect. Silk Way will avoid repeating the same evidence that has already been provided
on the point. See e.g., Answers of Silk Way West Airlines in Docket DOT

-OST

-2014-0111. Silk Way emphasizes that the evidence offered in Docket DOT-OST

-2-14

- 0111 supports the conclusions that (1) US carriers, including the two objecting carriers in particular, have continuously and for many years been granted multiple opportunities to operate flights, including third-country flights, in and out ofAzerbaijan; (2) the commercial concerns alleged by the two complaining carriers are nothing but normal market conditions based on utilization similar to those found at multiple other airports worldwide; and (3) if there is any imbalance in the principles ofcomity and reciprocity in the bilateral relations between US and Azerbaijan , it is strikingly in favor ofUS carriers (Kalitta itselfadmitting to operating at least 130 flights in and out of Baku while Silk Way is yet to obtain authority to operate even one flight). 2. Silk Way stresses that its Application is for the basic underlying Permit and Exemption authority for all cargo charter operations that formulates the service proposal in a fairly standard formula citing charter cargo air transportation operations between any point or points in Azerbaijan and any point or points in the United States ; and 

### 3between any point or points in the United States and any point or points in a third country or countries subject to pertinent national , bilateral and international agreements, rules and regulations
. Silk Way further states that it will primarily utilize Ilyushin IL-76TD-90 equipment for its proposed U.S. operations
. Notably, Kalitta and National conveniently omit the reference to "pertinent national , bilateral and international agreements , rules and regulations " from their citations of the authority requested by Silk Way. At the same time, it is perfectly clear to anyone who is familiar with the market of charter cargo transportation, as well as with the well-established precedent of Ilyushin IL-76TD-90 charter operations applied for and approved by the Department, that each and every specific charter, or series thereof, is applied for, polled with US carriers, and acted on by the Department, in a separate Statement ofAuthorization proceeding whereby US carriers get real time opportunity to assess the submitted applications, and determine whether they are capable of carrying the cargo proposed for transportation under those applications. Based on the nature, capability and technical characteristics ofthe aircraft, the Department precedent is that IL-76TD-90 is predominantly approved to transport cargo that cannot be carried by US civil-certified cargo aircraft. Given ample long-standing precedent on such charter applications, it is almost bizarre, and certainly frivolously and unnecessarily hostile , for National and Kalitta to be objecting to the basic application for an exemption and a foreign air carrier permit by a carrier from a country that they have been continuously operating to and from for many years.
3. Procedurally, Kalitta and National also raise questions related to (1) the posting of a reciprocity confirmation from the Azerbaijan aviation authority on the Department ' s docket ; and (2) the application ofthe streamlined procedure to Silk Way's application that would allow the Department to essentially process Silk Way 's applications for an Exemption and Foreign Air Carrier Permit initially submitted in two separate dockets


### 4within the structure ofthe August 23 , 2005 Notice in Docket OST-2005-22228 (the "Streamlined Licensing Procedures Notice"). In response, as was earlier explained in relation to Silk Way West's applications, as is customary for applications for initial basic authority, the letters of designation that also contained applicable statements ofreciprocity, have been issued by the State Civil Aviation Administration (SCAA) ofAzerbaijan and transmitted through diplomatic channels directly to the Department. However, in the absence of an instruction to the contrary from the Department in response to Silk Way' s inquiry, Silk Way is attaching hereto copies ofthe initial SCAA letters of designation and reciprocity as were originally transmitted to the Department through diplomatic channels in conjunction with Silk Way ' s and Silk Way West' s applications pending in the respective dockets. Following issuance ofthe carriers ' applicable authorities, routine reciprocity confirmations for 5th, 6th and 7 1h freedom authority will be submitted by the SCAA in due course as the carriers start their operations. With respect to the application ofthe Streamlined Licensing Procedures to the application in question, Silk Way states that since the actual Statement of Authorization applications related to actual flights will be subject to applicable procedures, and will be decided on their merits in each given case anyway, it does not see much rationale behind Kalitta's and National's objection to the application ofthe streamlined procedure to the basic exemption and permit application

- beyond the attempt to dig up yet another imaginary " issue" in their unwarranted and rabidly hostile campaign against the Azeri
earners. 

## ******* WHEREFORE, Silk Way respectfully requests that the Department grant this request for a foreign air carrier permit and exemption, or such other or further relief as the Department determines to be appropriate and consistent with the public interest. Silk Way further respectfully requests that the Department act expeditiously, and not allow the 

### 5frivolous allegations byjust two plaintive carriers to disrupt and derail the ongoing bilateral undertakings between the United States and Azerbaijan striving for an open skies bilateral regime. Respectfully submitted,

GLENN P
. WICKS Counsel for Silk Way Airlines

EKATERINA A. GRIMES Consultant for Silk Way Airlines



### 6

# ATTACHMENT 1AZ9RBAYCAN RESPUBLIKASININ D0VL8T MOLKI AVIAS IVA ADMINISTRASIYASI REPUBLIC OF AZERBAIJAN STATE CIVIL AVIATION ADMINISTRATION

' · "'7 tl ( .,... _J II _!,_ 

### c. <:. · 20 ( 

## Y il N

Q



### /~I

## I Y3u1.
/ 

### "Silk Way Airlines" designation Department of Transportation United States of America

The State Civil Aviation Administration of the Republic of Azerbaijan hereby presents its compliments to the Department of Transportation of the United States of America, and has the honor to confirm to the Government of the United States of America the designation by the State Civil Aviation Administration of the Republic of Azerbaijan of Silk Way Airlines for charter transportations of cargo between any point or points in the Republic of Azerbaijan and any point or points in the United States of America, as well as any point or points in the United States of America and any point or points in a third country or countries subject to pertinent national , bilateral and international rules and regulations
. The State Civil Aviation Administration of the Republic of Azerbaijan hereby further confirms that it will follow the principles of comity and reciprocity in treating any applications from US Carriers for similar authority as noted above. The State Civil Aviation Administration of the Republic of Azerbaijan avails itself of this opportunity to renew to the Department of Transportation of the Unites States of America its assurances of highest esteem and confirms its commitment to successful completion of the ongoing bilateral process and further development of the bilateral air transportations relations between the United States of America and the Republic of Azerbaijan. Hajiaga Aliyev Deputy Direct

Tel I Faks
. ( 994 12) 598 51 91 I E·iJnvan · hq@caa.gov az A.z9rbaycan

**Respub**

**h~**
**t.** AZ1095
. Bokt

**~ohori**

**.** Az3dltq prospoktt 11 www caa.gov az Tel I Fa• (99 4 12) 598 51 91 I E·ma• l. hq@caa gov.az B aku A.z1095
. A.zadhq avenue . 11
. R opubhc of AzerbaiJ anAZaRBAYCAN RESPUBLiKASININ DOVLaT MOLKi AViASiYA ADMiNiSTRASIYASI REPUBLIC OF AZERBAIJAN STATE CIVIL AVIATION ADMINISTRATION

.__ (. 20 / 

### Yi1 NQ 

# / Y,IIY:3-1 Department of Transportation United States of America
"Silk Way West Airlines" designation The State Civil Aviation Administration of the Republic of Azerbaijan hereby presents its compliments to the Department of Transportation of the United States of America, and has the honor to confinn to the Government of the United States of America the designation by the State Civil Aviation Administration of the Republic of Azerbaijan of "Silk Way West Airlines" for scheduled cargo air transportation services between any point or points in the Republic of Azerbaijan , via intermediate points, and any point or points in the United States of America, as well as for charter transportation of cargo between any point or points in the Republic of Azerbaijan and any point or points in the United States of America, as well as any point or points in the United States of America and any point or points in a third country or countries subject to pertinent national , bilateral and international rules and regulations. The State Civil Aviation Administration of the Republic of Azerbaijan hereby further confirms that it will follow the principles of comity and reciprocity in treating any applications from US Carriers for similar authority as noted above. The State Civil Aviation Administration of the Republic of Azerbaijan avails itself of this opportunity to renew to the Department of Transportation of the Unites States of America its assurances of highest esteem and confirms its commitment to successful completion of the ongoing bilateral process and further development of the bilateral air transportations relations between the United States of America and the Republic of Azerbaijan. Hajiaga Aliyev Deputy Di

Tel./ Faks· (994 12) 598 51 91 I E·iinvan : hq@caa

.gov.az Azorbaycan Respubl ikosr
. AZ1095 , Bakr**~ohor ,**  Azad l rq prospektr, 11 www.caa gov .az Te l./ Fax : (994 12) 598 51 91 I E-mail: hq@caa

.gov.az Baku , Az 1095, Azad l iq avenue, l1 , Republic of Azerbaij anAZ8RBAYCAN RESPUBLIKASININ D0VL8T MOLKI A VIASIVA ADMINISTRASIYASI REPUBLIC OF AZERBAIJAN STATE CIVIL AVIATION ADMINISTRATION

Department of Transportation United States of America "Silk Way West Airlines" designation The State C ivil Aviation Administration of the Republic of Azerbaijan hereby presents its compliments to the Department of Transportation of the United States of America , and ha s the honor to reconfirm to the Government of the United States of America the des ignation by the State Civ il Aviation Administration of the Republic of Azerbaijan of Silk Way West Airlines for sc heduled cargo air tran sportation services between any point or points in the Republic of Azerbaijan , via intermediate points. and any point or points in the United States of America, as well as for charter air transportation of cargo between any point or points in the Republic of Azerbaijan and any point or points in the U nited States of A merica. as 'vVell as any point or points in the United States of America and any point or points in a third country or countries s ubj ec t to pertinent national , bilateral and international rule s and regulation s. T he State Civil Aviation Admini stration of the Republic of Azerbaijan also hereby relates its appreciation of the Department ofTransportation recent grant to Silk Way West Airlines of the authority to operate scheduled air cargo transportation between Baku , Azerbaijan and New York, New York, and requests that the granted authority be expanded to allow Silk Way We st Airline s to operate scheduled air tran s po t1ation o f cargo on the following routing: Baku- Hong Kong- Chicago- New York- LuxembourgBaku , with no US domestic cargo transportation between the points of Chicago and New York
. Additionally. to the extent pos s ible
. the State Civil Aviation Administration ofthe Republic of Azerbaijan state s its s upport of Silk Way West Airlines· request that the Department consider it s requested expanded au thority through expedited process ing
. T he State Civ il Aviation Administration of the Republic of Azerbaijan hereby further confirms that it will follow the principles of comity and reciprocity in treating any applications from US Carriers for s imilar authority as noted above, including expedited processing should such processi ng be requested. The State Civil Aviation Administration of the Republic of Azerbaijan avails itse lf of this opportunity to renew to the Department of Transportation of the Unites States of America its a ssurance s of highe st esteem and confirms its commitment to successful completion of the ongoing bilateral proce ss and further deve lopment of the bilateral air transportations relation s between the U nited States of America and the Republic of Azerbaijan. Hajiaga Aliyev Deputy Director

Tel. / Faks: (994 12) 598 51 91 I E - unvan : hq@caa

.gov. az Azartlaycan Respublikas1
. · AZ10 95
. Bak 1**~aha n,**  Azadilq prospekti, 11 www.caa .gov .az \ I I 

### J /

Te l./ Fax : (994 12) 598 51 91 I E -mail : hq@caa

.gov.az Baku , Az1095. Aza dliq avenue , 11 , Repub lic of AzertlaitanCERTIFICATE OF SERVICE I hereby certify that I have on this day served a copy of the foregoing document upon each of the following electronic mail addresses:
sascha.vanderbellen @ delta.com sametta .c .b amett @ delta .com chris
.walker@ delta
.com d short@ fedex. c om s llunsf ord @ fedex
.com n ssparks@ fedex
.com gbleopard @ fedex
.com ms inick @ ssd
.com eni sson @ nac.aero mwiegele @ nac .aero kevin
.montgomery @ polaraircargo .com peter.beckett @ pola r aircargo
.com dan .wei s s @ coair.com dan
.weiss @ united
.com pdoell @ naca .cc robert
. wirick @aa.com francis
.heil @ aa.com howard kass @ u sairways .com r silverberg @s gbdc
.com j john son @ sgbdc
.com jrichardson @ johnrichardson
.com mriordan @ jolmrichardson.com jcanny @ amerijet.com j ohn @ mietuslaw
.com rpommer@ atlasair.com matwood @ cozen .com nwallace @ wallaceair
.com agoerlich @ ggh

-airlaw
.com dhainbach @ ggh-air law
.com rzerkel @ lac.lynden
.com jdavi s@ lac
.lynden.com

Ekaterina A. Grimes T Gillies@ southe m air .com info @ airlineinf o. com anita .mosner @ hklaw .com jennifer.nowak @ hkl aw .com dsmalls @ ups .com slacht er @ cozen. com pmurphy @ lopmurphy. com kleake @ ggh-airlaw
.com EngleTS @ state .gov

Dated: March 31,2015