UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on March 13 , 20 1 3



### NOTICE OF ACTION TAKEN

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_____________________________________________ ___________________________________________________ ________ 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).

Applicant : CEMAIR (P TY) LTD. ( CemAir ) Date Filed: January 10

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Relief requested: E xemption under 49 USC § 4 0109 to permit CemAir to engage in charter foreign air transportation to the extent necessary to provide long

- term wet lease services to Tortug’Air S.A. (Tortug) , using small aircraft

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CemAir further requests a statement of authorization under 14 CFR Part 212 to the extent necessary to engage in a long

- term wet lease of its Bombardier CL600

- 2B19 aircraft to Tortug , for Tortug’s services between Hai ti and the

United States

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Applicant representative: Richard A. Asper

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- 4848 DOT ana lyst: Brett D. Kruger

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Responsive pleadings: On January 18, 2013, IBC Airways, Inc. ( IB C) filed an answer objecting to the applications o f

Cem A ir and Tortug . Cem A ir and Tortug filed a joint reply on January 21, 2013, to which IBC filed a surreply on January 30, 2013. On February 22, 2013, IBC withdrew its objections.

DISPOSITION

Action: Approved. Action date: March 13 , 2013

Effective dates of authority granted: The exemption authority granted to CemAir is effective March 13 , 2013 , through

March 13 , 2014

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The statement of authorization granted to CemAir to wet lease to Tortug is effective March 13 , 2013 , through March

13 , 2014

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Basis for approval (bil ateral agreement/reciprocity): Comity and reciprocity with South Africa

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

Special conditions/Remarks: We found that CemAir is operationally and financially qualified to conduct its proposed operations and is substantially owned an d effectively controlled by citizens of its claimed homeland. 2 3 We also note that the applicant is properly licensed by its homeland to perform the proposed services. In addition, on January 29, 2013, the

Federal Aviation Administration advised us that it knew of no reason why we should act unfavorably on the applicant’s request for exemption authority.

1 Tortug has separately filed an application in Docket DOT

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- 2013

- 000 3 for an exemption under 49 USC §40109 to engage in

scheduled and charter foreign air trans portation of persons, property, and mail between a point or points in Haiti and a point or points in the United States, using aircraft wet leased from a duly authorized and properly supervised U.S. or foreign air carrier . We are acting on that request con currently.

2 CemAir states that it is 100% owned by a South African citizen

. Cem A ir also states that its CEO is a South African citizen, and

four of its five key management personnel are South African citizens

, with the remaining individual a British ci tizen

. 3 The applicant has requested confidential treatment of its financial submissions, under the provisions of 14 CFR §302.12. Goo d cause having been shown, we will grant this request.In the conduct of these operations, the applicant may only use aircraft designed to have maximum passenger capacity of

not more than 60 seats and a maxi mum payload capacity of not more than 18,000 pounds. In addition, t he statement of authorization granted to CemAir is subject to the condition that the applicant ’s homeland must maintain an effective reciprocity statement in Docket DOT

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- 2006

- 24269 thro ughout the period of its long

- term wet lease operation with Tortug

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

________________________________________________________________________________________________________ Und er 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 its proposed operations; (3) grant of the authority was consist ent w ith the public interest; and (4) grant of the authority would not constitute a major regulatory action under the Energy Policy an d 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 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 avai lable 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 operati ons unless it holds a currently effective 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 Federal Aviation Administration, the Tran sportation 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 security, 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 In dustry Representative (IIR ) (formerly referred to as International Principal Security Inspector) to advise the I IR of its plans and to find out whether the Transportation Security Administration has determined that security is adequate to allow such airpor t(s) to be served ;

(3) Comply with the requirements for minimum insurance 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 64 11, 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 comp lies 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 exempte d 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 immu nity, 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, ac cording to the contract of carriage, include a point in the United States 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

int ernational agreement or treaty cognizable in any court or other tribunal 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 requiremen ts of 14 CFR Part 217, concerning the reporting of scheduled, nonscheduled, 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 charte rs (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. 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 transferr ed without explicit Department approval under Title 49 of the U.S. Code.

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