UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on July 8

, 20 1 1



### N OTICE OF ACTION TAKEN

– DOCKET DOT

- O ST

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- 01 15

________________________________________________ ________________________________________________________________________________ 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).

Joint Applicant s : SINGAPORE AIRLINES LIMITED ( SIA ) and OPEN JOINT STOCK COMPANY

TRANSAERO AIRLINES ( Transaero )

Date Filed: June 13 , 201 1

Relief requested: Statement of authorization under 14 CFR Part 212 to permit SIA to display Transaero’s “UN” desig nator code on SIA operated flights between Moscow, Russian Federation and Houston, Texas. 1

E xemption from 49 USC § 41301 to permit Transaero to provide scheduled foreign air transportation of persons, property, and mail between Moscow and Houston on fligh ts operated by SIA

. Transaero also requests exemption authority to provide scheduled foreign air transportation of persons, property, and mail (on Transaero operated flights) from any point or points behind the Russian Federation, via any point or points in the Russian Federation and intermediate points, to Moscow, for passengers traveling on SIA’s flights (bearing Transaero’s code) between Moscow and Houston. Transaero requests that this authority be granted for a two

- year term.

S tatement of authorizati on under 14 CFR Part 212 to permit Transaero to display SIA’s “SQ” designator code in conjunction with foreign air transportation of persons, property, and mail on Transaero operated flights (1) between points in Russia, and (2) beyond Russia to any point or points that connect to SIA’s flights (bearing Transaero’s code) between

Moscow and Houston.

Applicant representative s : Anita M. Mosner ( SIA ), 202

- 419

- 2604 and

Kostadin Botev ( Transaero )

, 718

- 751

- 3560

DOT analyst: Brett D. Kruger , 202

- 366

- 8025

Responsive pleadings: None

DISPOSITION

Action: Approved in part, remainder (request for longer

- term authority) dismissed. 2

Action date: July 8 , 20 1 1

Effective dates of authority granted: Transaero ’s exemption authority is effective from July 8 , 20 1 1

, through July 8 , 20 1 2

. The statement s of authorization granted to SIA and Transaero are effective July 8 , 20 1 1 , and will remain in

effect for an indefinite duration , subject to conditions

.

1 SIA holds a foreign air carrier permit authorizing it to engage in scheduled foreign air transportation of persons, property and mail from points behind Singapore via Singapore and intermediate points to a point or points in the United States and beyond ( see Order

97

- 12

- 26).

2 The one

- year duration of the authority we granted Transaero is consistent with our usual policy of gran ting exemption authority in the circumstances presented. We therefore, dismissed the application to the extent that it sought authority for a longer per iod.Basis for approval (bilateral agreement/reciprocity) : The Multilateral Agreement on the Liberalization of International Air Transport (MALIAT), the Annexes to the 1994 U.S.

- Russian Federation Air Transport Agreement , and the overall state of

aviation relations between the United States and the Russian Feder ation

. 3

Except to the extent exempted/waive d , this authority is subject to the terms, conditions, and limitations of our standard foreign air carrier exemption conditions attached as Appendix A and codeshare conditions attached as Appendix B

.

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

_________________________________________________________ ___________________________________________________ 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) the applicant was qualified to perform their proposed operations; (3) grant of the authority was consistent with the public interest; and (4) grant of the authority would not constitut e a major regulatory action under the Energy Policy and Conservation Act of 1975. To the extent not granted or dismissed , we denied all requests in the referenced Docket. We may amend, modify, or revoke the authority granted in this Notice at any time wi thout hearing at our discretion.

Persons entitled to petition the Department for review of the action set forth in this Notice under the Department’s regulati ons, 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

3 On February 13, 2009, the United States and the Russian Federation agreed, ad referendum , to rev ised Annexes to the U.S.

- Russia Air Transport Agreement and stated that, pending their entry into force, the respective aeronautical authorities inten d to implement the provisions of those Annexes on the basis of comity and reciprocity

.Appendix A



### 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 homel and for such 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. Gover nment 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 security, the holder shall, b efore 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) (formerly referred to as International Pri ncipal 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 insu rance coverage 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 Bran ch (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 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 req uirements 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 international air transportation that, according to the contract of carriage, include a point in the United Sta tes as a point 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 tribun al of the United 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 definition;

(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, nonsched uled, and charter 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 ot her 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. agencies and courts, and with all applicable laws of the United States.

This authority shall 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. Cod e.

12/2007Appendix B

Th e statement s of authorization are subject to the following conditions:

(a) The statement s of authorization will remain in effect only as long as (i) SIA and Transaero continue to hold the necessary underlying authori ty to operate the code

- share services at issue, and (ii) the code

- share agreement providing for

the code

- share operations remains in effect;

( b ) SIA and/or Transaero must notify the Department no later than 30 days before they begin any new code

- share se rvice

under the code

- share services authorized here. Such notice shall identify the market(s) to be served and the date on which the service will begin. Such notices should be filed in Docket DOT

- OST

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### ( c ) SIA and/or Transaero 

### must notify the Department immediately if the code

- share agreement under which these

code

- share services are operated is no longer in effect or if the carriers decide to cease operating all or a portion of the approved code

- share services. Such notices should be filed i n Docket DOT

- OST

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( d ) The code

- sharing operations conducted under this authority must comply with 14 CFR Part 257 and with any amendments to the Department's regulations concerning code

- share arrangements that may be adopted. Notwithstanding

a ny provisions in the contract between the carriers, our approval here is expressly conditioned upon the requirements that the subject foreign air transportation be sold in the name of the carrier holding out such service in computer reservation systems and elsewhere; that the carrier selling such transportation (i.e., the carrier shown on the ticket) accept responsibility for the entirety of the code share journey for all obligations established in its contract of carriage with th e passenger; and that the p assenger liability of the operating carrier be unaffected;

(e) The authority granted here is specifically conditioned so that neither SIA nor Transaero 

### shall give any force or effect to any contractual provisions between themselves that are contrary to these conditions ; and

( f

) We may amend, modify, or revoke the authority granted at any time without hearing at our discretion.

1 We expect this n otification to be received within 10 days of such non

- effectiveness or of such decision.