UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC

Issued by the Department of Transportation on March 30 , 2010

NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 200 6

- 24703

This document serves as notice t o the public of the action described below, by the Department official indicated (no additional confirming order will be issued in this matter).

Application of SOUTHERN AIR, INC

. (Southern) filed 3/9/10 for:

XX Renewal of e xemption authori ty pursua nt to 49 U.S.C. 40109 to provide the following service s :

S cheduled foreign air transportation of property and mail between points in the United States, directly or via any intermediate points, and Hong Kong ; and between Hong Kong and any third

country points.

Applicant Rep: Aaron A. Goerlich (202) 776

- 3970 DOT Analyst: Thuy H. Cooper (202) 366

- 5423

DISPOSITION

XX Granted (subject to conditions, see below) 1

The above action was effective when taken: March 30 , 2010 , through March 30 , 2012

, or until 90 days

after fina l Department action on Southern’ 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

X X 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 ex tent exempted or waived, this authority is subject to the terms, conditions, and limitations

indicated: XX Holder’s c ertificate s of p ublic c onvenience and n ecessity

XX Standard exemption c onditions (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 services authorized.

Unde r 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 application was consistent with the public interest; and (3) grant of the authority would not c onstitute a major regulatory action under the Energy Policy and Conservation Act of 1975. To the extent not granted, we denied all requests in the referenced

1 Southern notes that a ny operations serving intermediate or beyond points would be without local traffic rights

u nless it secures fifth

- freedom Hong Kong frequencies for the carriage 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 reques ted non

- open

- skies certificate.Docket. We may amend, modify, or revoke the authority granted in this Notice at any time withou t 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 thi s 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) C omply 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 c overage, 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 li mited 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 Principal Secu rity 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 authority gran ted shall be effective only during the period when the holder is in compliance with the conditions imposed above.

1/2008