UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on May 17, 2010



### NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

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

ad ditional confirming order will be issued in this matter).

Applicant : 

### SOUTHERN AIR CHARTER LTD.

Date Filed: January 29, 2010 , as supplemented April 20, 2010

Relief requested: Exemption from 49 U.S.C. § 41301 to engage in charter air transporta tion of persons, property, and mail between the Bahamas and the United States, and other charters pursuant to 14 CFR Part 212, using small aircraft. The applicant requests that the authority be granted for a two

- year term.

If renewal, date and citation o f last action: New authority

Applicant representative: Kevin M. McMaster (316) 263

- 5851 DOT Analyst: Shelita A. Johnson (202) 366

- 1226 Responsive pleadings: None filed

DISPOSITION

Actio n: Approved in part (one

- year grant), remainder (request for longer

- term authority) dismissed 1

Action date : May 17, 2010

Effective dates of exemption authority granted: May 17, 2010

– May 17, 2011

Basis for approval (bilateral agreement /reciprocity)

. Comity and r eciprocity with the Bahamas

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations indicated:

X Standard exemption conditions (attached) Foreign air carri er permit ( Order )

Special conditions/Partial grant/Denial basis/Remarks:

Based on the record in this case, we found that Southern Air Charter is financially and operationally qualified to perform the services authorized above. In addition, we found that Southern Air Charter is substantially owned and effectively controlled by citizens of its claimed homeland. 2 3 By memorandum dated March 21, 2010, the FAA advised us that it knew of no reason why we should act unfavorably on Southern Air Char ter’s application.

The authority granted to Southern Air Charter Ltd. is limited to operations involving aircraft designed to have a maximum passenger capacity of not more than 60 passengers and having a maximum payload capacity of no more than 18,000 pou nds. 4

The one

- year duration of the authority we granted is consistent with our usual policy of granting exemption authority in the circumstances presented. We therefore, dismissed the application to the extent that it sought authority for a longer period

.

1 The one

- year duration of the authority we granted is consistent with our usual policy of granting exemption authority in the circumstances presented. We, therefore, dismissed the application to the extent that it sought for a longer period.

2 The record indicate s states that Southern Air Charter is 100% owned by Herbert Gibbs a citizen of the Bahamas.

3 The applicant has requested confidential treatment of its financial submissions, under the provisions of 14 CFR § 302.12. Go od cause having been shown, we will g rant this request.

4 The applicant specifically states that it is applying to provide the service requested using small aircraft.Action taken by: Paul L. Gretch, Director

Office of International Aviation

_____________________________________________________________________________________________________________________________ ___ Under authority assigned by the Departmen t in its regulations, 14 CFR Part 385, we found that (1) the applicant is qualified to perform the proposed operations; (2) our action was consistent with Department policy; (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 auth ority 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.gov12/2007 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 effective authorization from its homeland for

suc h operations, and it has filed a copy of such authorization with the Department;

(2) Comply with all applicable requirements of the Federal Aviation Administration, the Transportation Security Administration, and with all applicable U.S. Government requi rements 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 security, the holder shall, before commen cing 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) (formerly referred to as International Principal Secur ity 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 covera ge contained in 14 CFR Part 205, and, prior to the commencement of any operations under this authority, file evidence 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, insurance 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 Ch icago 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 action s or proceedings instituted against it in any court or other tribunal in the United States that are: (a) based on its operations in international air transportation that, according to the contract of carriage, include a point in the United States as a poi nt of origin, 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 tribunal of the Un ited States. In this condition, the term "international air transportation" means "international transportation" as defined by the Warsaw Convention, except that all States shall be considered to be High Contracting Parties for the purpose of this definit ion;

(8) Except as specifically authorized by the Department, originate or terminate all flights to/from the United States in its homeland;

(9) Comply with the requirements of 14 CFR Part 217, concerning the reporting of scheduled, nonscheduled, and ch arter data;

(10) If charter operations are authorized, except as otherwise provided in the applicable aviation agreement, comply with the Department's rules governing charters (including 14 CFR Parts 212 and 380); and

(11) Comply with such other reasonab le 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. agencies and courts, and with all applicable laws of the United States.

This authority sh all not be effective during any period when 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.