Order 200 9

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UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C

.

Issued by the Department of Transportation

on the 17 th day of May, 20 10

Served : May 17, 2010

Application of



### E tihad Airways P.J.S.C. Docket DOT

- OST

- 200 5

- 23345

for a f oreign air carrier permit under 49 U.S.C. §41301

ORDER TO SHOW CAUSE

Summary

By this order we tentatively find that it is in the public interest to grant the applicati on the referenced foreign air carrier a foreign air carrier permit (attached as the Appendix to this order)

.

Applications

By application s filed December 13, 2005, as supplemented March 9, and May 5, 2006, Etihad Airways P.J.S.C., a foreign air carrier of United Arab Emirates r equest s a foreign air carrier permit under 49 U.S.C. §41301, to engage in scheduled and charter foreign air transportation of persons, property and mail from points behind the United Arab Emirates via the United Arab

Emirates and int ermediate points to a point or points in the United States and beyond. 1

The applicant provided evidentiary materials required by 14 CFR Part 211 of our regulations to support its requests for authority.

Responsive Pleadings

No received no answers to the application.

1 On January 9, 2009, we granted Etihad Airways exemption authority, for a two

- year period, to engage in scheduled

and charter foreign air transportation of persons, property and mail from points behind the United Arab Emirates via the United Arab Emirates and intermediate points to a point or points in the United States and beyond. See Notice of Action Taken, dated January 9, 2 009, in Docket DOT

- OST

- 2005

- 23344.2

Decision

We have decided under assigned authority and consistent with the Department in its regulations, tentatively to grant, subject to show

- cause procedures, the applicant’s request for a foreign air carrier permit, subject to condition s. We tentatively find that grant of this authority is in the public interest, that the applicant is operationally and financially to conduct the operations at

issue here.

With respect to the ownership and control of the applicant, the record indicates that Etihad Airways is 100% owned by the Emirate of Abu Dhabi, a constituent of the federation which makes up the United Arab Emirates. The Chairman and all Directors of Eti h ad’s Board are U.A.E. citizens. However, only 6 of Etihads’ 18 key management p ersonnel are citizens of the U.A.E. The remaining positions are held by citizens of Germany (4), Bahrain (2), Austrian, Australia, the Netherlands, Ireland Malaysia and the United Kingdom (with one each). To the extent that a question may exist as to whe ther managerial control of Etihad may be exercised by non U.A.E. citizens, we find that it is consistent with the public interest to use our discretion and to waive our ownership and control standard in this instance as there is nothing in the ownership

an d control of the carrier that would be inimical to U.S. aviation policy or interests. The carrier is properly licensed by the Government of the United Arab Emirates to perform the proposed services. By memorandum dated October 21, 2009, the FAA advised u s that it knew of no reason why we should act unfavorably on Etihad’s application. We have verified the applicant’s compliance with 14 CFR Parts 203 (Warsaw liability waiver), and 205 (insurance requirements).

In view of the above, and acting under autho rity assigned by the Department in its regulations, 14 CFR Part 385, we find that (1) our actions are consistent with Department policy; and (2) with respect to the exemption authority we are conferring on the applicant, the applicant is qualified to perfo rm those operations; and that grant of the exemption authority is consistent with the public interest and would not constitute a major regulatory action under the Energy Policy and

Conservation Act of 1975.

ACCORDINGLY,

1. We direct all interested per sons to show

- cause why our tentative decision on the application of Etihad Airways P.J.S.C. for a foreign air carrier permit, set forth above, should not be made final;

2

. Any interested person objecting to the issuance of an order making final our tenta tive findings and conclusions with respect to the applicant’s request for a foreign air carrier permit shall, no later than twenty

- one (21) calendar days after the date of service of this order, file with the Department and serve on the parties to this pro ceeding, a statement of objections specifying the part or parts of the tentative findings and conclusions objected to, together with a summary of testimony, statistical data, and concrete evidence to be relied upon in support of the objections; if objectio ns are filed, answers to objections are due no later than seven (7) calendar days thereafter;3

3

. If timely and properly supported objections are filed, we will give further consideration to the matters and issues raised by the objections before we take f urther action;

4 . In the event no objections are filed, all further procedural steps shall be deemed waived, and the Department will enter an order which will (subject to Presidential review under §41307 of Title 49 of the U.S. Code) make final our tentat ive findings and conclusions set forth in this order; and

5 . We will serve a copy of this order on the applicant, the Embassy of the United Arab Emirate i n Washington, D.C., the Department of State , and the Federal Aviation Administration.

By:

PAUL L. GRETCH

Director

Office of International Aviation (SEAL)

Appendi x

An electronic version of this document is available on the World Wide Web at: http://www.regulations,govAppendix A

Issued by

Order



### UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

-------------------------------------------------------- PERMIT TO FOREIGN AIR CARRIER



### --------------------------------------------------------- 

### ETIHAD AIRWAYS P.J.S.C.

A F oreign Air Carrier of the United Arab Emi rates

is authorized, subject to the following provisions, the provisions of Title 49 of the U.S. Code, and the orders, rules, and regulations of the Department of Transportation, to engage in scheduled and charter foreign air transportation of persons, p roperty and mail:

from points behind the United Arab Emirates via the United Arab Emirates and intermediate points to a point or points in the United States and beyond.

The holder shall also be authorized to engage in charter trips in foreign air transpo rtation, subject to the terms, conditions, and limitations of the Department’s regulations governing charters.

This permit and the exercise of the privileges granted in it shall be subject to the terms, conditions and limitations in both the order issuing this permit and the attachment to this order, and to all applicable provisions of any treaty, convention or agreement affecting international air transportation now in effect, or that may become effective during the period this permit remains in effect, t o which the United States and the holder’s homeland are or shall become parties.

This permit shall be effective on . Unless otherwise terminated at an earlier date pursuant to the terms of any applicable treaty, convention or agreement, this permit shall terminate (1) upon the dissolution or liquidation of the holder to whom it was issued; (2) upon the effective date of any treaty, convention, or agreement or amendment, which shall have the effect of eliminating the right for the service

authorized by this permit from the service which may be operated by airlines designated by the Government

of Samoa (or, if the right is partially eliminated, then the authority of this permit shall terminate in like part); (3) upon the effective date of any permit gr anted by the Department to any other carrier designated by

the Government of the United Arab Emirates, in lieu of the holder; or (4) upon the termination or expiration of the applicable air services agreemen t to which t he United States and the United Arab Emirates are parties. However, clause (4) of this paragraph shall not apply if prior to such termination or expiration, the foreign air transportation authorized herein becomes the subject of another treaty, convention or agreement to which the United St ates and the United Arab Emirates b ecome parties.The Department of Transportation has executed this permit and affixed its seal on

By:

PAUL L. GRETCH

Director

Office of International Aviation



### (SEAL)Foreign Air Carrier Permit Conditions

In the conduct of the operations authorized, the foreign carrier applicant shall:

1) Not conduct any operations unless it holds a currently effective authorization from its homeland for such operations, and it has filed a copy of such authorization with the Departm ent;

2) 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 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 wou ld be the holder’s last point of departure for the United States, contact its International Industry Representative (IIR) (formerly referred to as International Principal Security Inspector) to advise the IIR of its plans and to find out whether the Transp ortation Security Administration has determined that security is adequate to allow such airport(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 und er 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 b e 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 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 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 States as a point of origin, point of destination, or agreed stopping place, or for which the contract of carriage was p urchased 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 United States. In this condition, the term "international air transportation" means "international

transpo rtation" 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, nonscheduled, and charter data;

10) If charter operations are authorized, except as otherwise provided in the applicable aviation agreemen t, comply with the Department's rules governing charters (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 applic able 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, thi s authority cannot be sold or otherwise transferred without explicit Department approval under Title 49 of the U.S. Code.

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