U N I TED S TATES O F A ME R I C A

DE P A R TMENT OF T R AN SP O R TA T I ON

O F F I C E OF T HE S E CR ETA R Y

W A S H I NG T ON, D. C

.

I ss u e d b y the D e p ar tm e n t of T ra nspo r t a tion

on the 29 th d a y o f May, 2015 O r d e r 2015

- 5

- 21

S er v e d: May 29, 2015

Appli ca tion of

T’WAY AIR CO., LTD

. Do c k e t DO T

- O S T

- 201 5

- 0 012

f

or a n e x e mption und e r 4 9 U. S

. C . §40109 a nd a f o re i g n

a ir c a rr i e r p er mit und e r 4 9 U. S

. C . §41301

ORD E R G R A N T ING E X E M P T ION AND T O S HOW CAU S E

Su m m a r y

B y this o r d e r w e ( 1) g ra n t the a ppli ca tion of the r e fere n ce d f o re i g n a ir c a rr i e r f or a n e x e mption und e r 49

U. S

. C . §40109, subj ec t to c onditions ; 1 a nd ( 2) t e n t a tiv e l y f ind th a t it is in the public int ere st to g ra nt the

a ppli ca nt the f o r e i g n a ir carr i e r p e r mit a tt ac h e d a s App e ndix B to this o r d er

.

B a c k g r o un d

On Au g ust 23, 2005, the D e p ar tm e nt issu e d a Noti ce , in Do c k e t DOT

- O S T

- 2005

- 22228, a nnoun c i n g

s e v era l st e ps d e si g n e d to st rea mline our r e g ul a to r y p r o ce du r e s f or li c e nsing U. S

. a nd f o re i g n a i r c a rr i er s.

Among oth e r thin g s, the Noti c e st a t e d th a t:

Assumin g , b a s e d on t h e r ec o r d a nd on t h e public int ere st/public c onv e ni e n c e a nd n ece ssi t y

e l e m e nts g er m a n e to our li ce nsing d e c isions, th a t we w e r e in a position to ac t fa v o ra b l y , we

would p r o ce e d to issue a sin g le o r d e r ( 1 ) g ra nti n g the e x e mption re qu e st f or wh a t e v e r du ra tion

we would no r m a l l y h a ve impos e d, or until cer ti f i c a t e /p er mit a utho r i t y b ec o m e s eff e c tiv e

, whi c h e v e r is sho r t er

, a nd ( 2) t e nt a tiv e l y d e c iding ( i. e

. , show

- ca u s e ) to a w a r d a c o r r e spondi n g

cer ti f i c a te ( or p er mit )

, a g a in f or the st a nd a r d du ra t ion we would no r m a l l y h a ve impos e d ( su c h

a s, in the ca se o f c e r ti f i c a t e s, f ive ye a r s f or limit e d

- e nt r y m ar k e ts, ind ef inite f or op e n

- e nt r y

m ar k e ts, a nd in the c a se of p er mits, f ive y e ar s f or c omi t y a nd r ec ip r o c i t y r e g im e s, ind ef inite f o r

a g ree m e nt r e g im e s )

.

1 T h e c o n d iti o n s a r e attac h ed as A pp e n d i x A

.Our action in this Order s erves to implement these streamlined regulatory procedures for the

applicat i on involved in this proceed i ng.

A pp li c a t ion

B y a ppli ca tion f il e d February 2, 2015 T’Way Air Co

. , Ltd. ( T’Way Air )

, a f o re i g n a ir c a rr i e r of t h e

R e public of Ko r e a

, re q u e sts a n e x e mption und e r 49 U. S

. C . §40109 a nd a f o re i g n a ir c arr i e r p e r mit und e r

49 U. S

. C . §41301, to e ng a ge in: 1) s c h e du l e d f o r e i g n a ir t ra nspo r t a tion of p er sons, p r op e r t y

, a nd m a i l

fr om points b e hind the R e public of Ko r e a via the R e public of Ko r e a a nd i n t er m e di a te points to a point

or points in the Unit e d S t a t e s a nd b e y ond 2 ; 2) c h a r t e r f o re i g n a ir t ra nspo r t a tion of p er sons, p r op e r t y

,

a nd m a il b e tw ee n a n y p o int or points in the R e pu b lic of Ko r e a a nd a n y poi n t or points in the Unit e d

S t a t e s, a nd b e tw ee n a n y point or points in the Un i t e d S t a t e s a nd a n y point or points in a thi r d c ount r y or

c ount r i e s, p r ovid e d th a t s u c h s er vi c e c onstitut e s p ar t of a c ontinuous op era t ion, with or without a c h a nge

of a i rc r af t, th a t in c lud e s s er vi c e to the R e public o f Ko re a a nd the Unit e d S t a t e s; a nd 3) oth e r c h ar t e r

f

o re i g n a ir t r a nspo r t a tion pu r su a nt to 14 C F R P ar t 212.

The a ppli ca nt p r ovi d e d e vid e nti a r y m a t er i a ls r e q u i re d b y 1 4 C F R P ar t 211 of our r e g ul a tions to su p po r t

its re qu e sts f or a utho r i t y

.

No a nsw er s w e r e f il e d to the a ppli ca tion.

D ec ision

W e h a ve d ec i d e d, und e r a ssi g n e d a utho r i t y a nd c o nsist e nt with our Au g ust 23, 2005 Noti c e r e fe r e n c e d

a bov e , to g ra nt the a ppli c a nt ’ s re qu e st f or e x e mption a utho r i t y , subj e c t to c onditions, a nd t e nt a tiv e l y to

g r a nt, subj ec t to show

- ca use p r o ce d u re s, its re q u e st f or a f o r e ign a ir c arr i e r p er mit, a lso subj ec t to

c onditions.

W ith re sp ec t to the a ppli ca nt ’ s re q u e st f or e x e mption a utho r i t y , we f ind th a t g ra nt o f this a utho r i t y is

c onsist e nt with the public int ere st; we a lso f ind th a t the a ppli ca nt h a s d e monst ra t e d, b a s e d on the r ec o r d,

th a t it is f in a n c i a l l y a nd o p era tion a l l y qu a li f i e d to p erf o r m the s er vi ce s a ut h o r i z e d

, 3 a nd th a t it is

subst a nti a l l y own e d a nd eff e c tiv e l y c ont r oll e d b y c iti z e ns of its c l a im e d hom e l a nd

. 4

The a utho r i t y sou g ht b y t he a ppli ca nt is e n c om p a s s e d b y t h e Air T r a nspo r t Ag ree m e nt b e tw ee n t h e

Unit e d S t a t e s a nd the Re public of Ko r e a

. W e th e r ef o r e f ind th a t g ra nt of t h e re qu e s t e d e x e mption

a utho r i t y

, f o r a two

- y e a r t er m, or until the re qu e s t e d p er mit a utho r i t y b ec o m e s eff e c tiv e , whi c h e v er

o cc u r s e ar li er , is w ar r a nt e d.

W e a lso note th a t the a p p li ca nt is p r op er l y li ce ns e d b y its hom e l a nd to p e rf o r m the p r opos e d s e r vi c e s.

I n a ddition, on March 12 , 2015, the Fe d era l Avi a tion Administ ra tion a dvi s e d us th a t it kn e w of no

rea son w h y w e should a c t un fa vo ra b l y on the a ppli ca nt ’ s re q u e st. W e h a ve v er i f i e d the a ppli ca nt ’ s

c ompli a n c e with 14 C F R P ar ts 203 ( W ar s a w li a bili t y w a iv e r)

, a nd 205 ( insu ra n c e re qui r e m e nts )

.

2 T’Way Air states that it plans to begin Seoul

- Guam scheduled service on or about July 15, 2015.

3 The applicant has requested confidential treatment of the residential addresses of its Board Members, Directors and key

management personnel ; its financial submissions ; and its traffic forecasts. Good cause having been shown, we will grant this

request.

4 The record indicates that approximately 65% of the applicant’s reported stock i s held b y ci tizens of the Republic of Korea,

with the remaining 35% of its minority shares diffusely held . T h e r ec or d further i n d icates t h at T’way Air’s C h ai r m a n o f t h e

B o a rd

, B o a r d M e m b e r s

, O f f ice r s

, a n d k e y m a n a g e m e n t p e r s on n el a r e all citize n s o f t h e R e p u b lic o f K or ea.T e n t a t ive F i nd i n gs a n d Co n c l u sio n s

-- F o re ign A ir Ca rr i e r P er m it A pp li c a t ion

W e t e nt a tiv e l y f ind a nd c on c lude th a t the public int ere st w a r ra nts g r a nting t he a ppli ca nt a f o re i g n a ir

carr i e r p e r mit, in the f o r m a tt ac h e d a s Ap p e ndix B a nd subj e c t to the c on d itions a tt ac h e d

. 5 I n p a r ti c ul ar

,

we t e nt a tiv e l y f ind a nd c on c lude th a t the f a c to r s whi c h suppo r t our g ra nt of e x e mption a utho r i t y to the

a ppli ca nt a lso w a rra nt g r a nting the a ppli ca nt the f o re i g n a ir c arr i e r p e r mit it s ee ks.

I n vi e w of the f o r e g oi n g a nd a ll fac ts of r e c o r d, w e t e nt a tiv e l y f ind a nd c o n c lude th a t:

1. I t is in the public int e r e st to issue the a ppli ca nt a f o re i g n a ir c a rr i e r p er m it in the f o r m a tt ac h e d;

2. The a ppli ca nt is f it, w illing a nd a ble p r o p er l y t o p erf o r m the f o re i g n a i r t ra nspo r t a tion d e s cr i b e d in

the a tt ac h e d p er mit a nd t o c on f o r m to the p r ovisi o ns of Title 49 of the U. S

. C od e

, a nd to our r ul e s,

r e g ul a tions, a nd re qu i r e m e nts;

3. The a ppli ca nt is subst a nti a l l y ow n e d a nd e ff e c t iv e l y c ont r oll e d b y c iti z e ns of its c l a im e d hom e l a nd;

4. The public int ere st r e qui re s th a t the e x erc ise o f the p r ivil e g e s g r a nt e d b y the p er mit should be subj ec t

to the t er ms, c onditions, a nd limit a tions c ont a in e d in the a tt ac h e d p e r mit, a nd to su c h oth e r r e a son a b le

t er ms, c onditions, a nd limit a tions re qui re d b y t h e public int ere st a s we m a y p r e s cr ib e ;

5. The issu a n c e o f this f o re i g n a ir c arr i e r p e r mit will not c onstitute a m a jor r e g ul a to r y ac tion und e r the

En e rg y P oli c y a nd C ons e r v a tion A c t of 1975, a s d ef in e d in 14 C F R §313. 4 (a ) ( 1 ) of our r e g ul a tions ; 6

6. The public int ere st d o e s not re qui r e a n o ra l e vid e nti a r y h e a r i n g on the a ppli ca tion; a nd

7. Our ac tion with re s p e c t to this f o re i g n a ir c arr i e r p er mit should, unl e ss dis a pp r ov e d b y the P re s i d e nt

of the Unit e d S t a t e s und e r §41307 of Title 49 of t h e U. S

. C od e , b ec ome ef f

ec tive on the 61st d a y a f t e r

its submission f or §413 0 7 re vi e w, or upon t h e d a t e of r e ce ipt of a dv i c e f r o m the P re sid e nt or his

d e si g n e e und e r E x ec utive O r d e r 12597 a nd impl e m e nting r e g u l a tions th a t he or she do e s not int e nd to

dis a pp r ove this po r tion of the D e p a r tm e nt ’ s d e c ision und e r th a t s ec tion, w h i c h e v e r o cc u r s ear li e r

.

I n vi e w of the a bov e

, a nd ac ting un d e r a uth o r i t y a ssi g n e d b y the D e p a r tm e n t in its re g ul a tions, 14 CF R

P ar t 385, we f ind th a t ( 1) our ac tions a r e c onsist e n t with D e p ar tm e nt poli c y ; a nd ( 2) with re s p ec t to the

e x e mption a utho r i t y w e a r e c on f err i n g on the a ppli ca nt, the a ppli ca nt is qu a l i f i e d to p erf o r m those

5 T h e a pp lica n t ’ s r e q u e s t f o r a for ei g n air ca rr ier p e r m it w a s s u mm a r ized i n t h e De p a r t m e n t ’ s p u b l i sh ed w e e k l y li s t o f

a pp licati o n s f i le d

. T h is n o tice d e s c r i b ed t h e a u t h or i t y s ou g h t a n d g a v e i n te r e s ted p e r s o n s a n oppor t un i t y to s u b mit e v i d e n ce

a n d ob j ecti o n s to t h e a w a r d o f t h is f or ei g n air ca rr ier p e r m it a u t h or i t y

. A s n o ted a bo v e, n o a n s w e r s to t h e a pp licati o n w e r e

f ile d

. 6 T h is f i n d i n g is b a s ed o n t h e f act t h at t h e g r a n t o f t h is p e r m i t w i l l n o t r e s u lt i n a n ea r

- te r m n et a nn u al c h a n g e in ai r c r a f t f

u el

c o ns u m p ti o n o f 1 0 m illi o n g a l l o n s o r m or e.op era tions; a nd th a t g ra nt of the e x e mption a utho r i t y is c onsist e nt with the public int ere st a nd would not

c onstitute a m a jor r e g ul a t o r y ac tion und e r t h e En e rg y P oli c y a nd C ons er v a tion A c t of 1975.

ACCORDI N G L Y,

1. W e g ra nt the re q u e st of T’Way Air Co

., L td. f o r a n e x e mption und e r 49 U. S

. C . §40109 to p er mit it to

e ng a g e in: 1) s c h e dul e d f o re i g n a ir t ra nsp o r t a tion of p er sons, p r o p er t y

, a nd m a il fr om points b e hind the

R e public of Ko r e a via t h e R e public of Ko r e a a nd int er m e di a te points to a point or points in the Uni t e d

S t a t e s a nd b e y ond; 2) c h ar t e r f o re i g n a ir t ra nspo r t a tion of p er sons, p r o p er t y

, a nd m a il b e tw ee n a n y point

or points in the R e public of Ko r e a a nd a n y point o r points in the Unit e d S t a t e s, a nd b e tw e e n a n y po i nt or

points in the Unit e d S t a t e s a nd a n y point or points in a thi r d c ount r y or c ou n t r i e s, p r ovid e d th a t su c h

s er vi c e c onstitut e s p ar t of a c ontinuous op e r a tion, with or without a c h a n g e of a i rc r af t, th a t in c lud e s

s er vi c e to the R e public o f Ko r e a a nd the Unit e d S t a t e s; and 3) oth e r c h ar t e r f o r e i g n a ir t ra nspo r t a tion

pu r su a nt to 14 C F R P ar t 212;

2. The e x erc ise of t h e p r ivil e g e s g r a nt e d a bo v e is subj ec t to c ompli a n c e b y T’Way Air Co

., L td. with the

c onditions list e d in App e ndix A;

3. Our ac tion g r a nting t h e e x e mption a utho r i t y d e s cr ib e d h e r e in is ef f

ec ti v e imm e di a t e l y

, f or a p er i od of

two y e ar s f r om the issue d a te of this o r d er

, o r until the a tt ac h e d p er mit b ec o m e s eff e c tiv e , whi c h e v e r is

ear li er ;

4. W e grant the request of T’way Air Co., Ltd. for confidential treatment of the residential addresses

of its Board Members , Directors

, and key management personnel; its financial submissions; and its

traffic forecasts , consistent with the provision s of 14 CFR §302.12;

5. To the e x t e nt not ac t e d upon a bov e , we dismi s s the a ppli ca nt ’ s r e qu e st f or e x e mption a utho r i t y in this

Do c k e t ( D OT

- O S T

- 2015

- 0012 ) ;

6. W ith re sp ec t to the a p pli ca nt ’ s re qu e st f o r a f or e i g n a ir c a rr i e r p er mit in this p r o cee di n g , we di r e c t a ll

int ere st e d p er sons to sh o w ca use w h y our t e nt a ti v e d ec ision on th a t a ppli c a tion, s e t f o r th a bov e , sh o uld

not be m a de f in a l;

7. A n y int e re st e d p e r son obj ec ting to the issu a n c e of a n o r d e r m a ki n g f in a l our t e nt a tive f indi n g s a n d

c on c lusions with re sp ec t to the a ppli ca nt ’ s re q u e st f or a f o re i g n a ir ca r r i e r p er mit sh a ll, no l a t e r th a n

tw e n t y

- o ne ( 2 1 ) ca l e n d a r d a y s af t e r t h e d a te o f s e r vi c e of this o r d er

, f ile with the D e p ar tm e nt a nd s e r ve

on the p ar ti e s to this p r o c ee di n g , a st a t e m e nt o f o b j ec tions sp ec i f y

i n g the p a r t or p ar ts of the t e n t a tive

f indin g s a nd c on c lusions obj ec t e d to, tog e th e r with a summ a r y of t e stimo n y

, st a tisti ca l d a t a

, a nd

c on cre t e e vid e n c e to be r e li e d upon in suppo r t of the obj ec tions; if obj ec tions ar e f il e d, a nsw e r s to

obj ec tions ar e d u e no l a t e r th a n s e v e n ( 7) c a l e nd a r d a y s th e r e af t er ;

8. I f tim e l y a nd p r op e r l y suppo r t e d obj ec tions a r e f il e d, we will g i v e f u r th e r c onsid era tion to the m a t t er s

a nd issu e s ra is e d b y the o bj ec tions b ef o r e we t a k e f u r th e r a c tion;

9. I n the e v e nt no obj e c tions ar e f il e d, a ll f u r th e r p r o ce du r a l st e ps sh a ll be d ee m e d w a iv e d, a nd the

D e p ar tm e nt will e nt e r a n o r d e r whi c h will ( subj ec t to P re sid e nti a l re vi e w u n d e r §41307 of Title 49 of

the U. S

. C od e ) m a ke f in a l our t e nt a tive f indin g s a nd c on c lusions s e t f o r th in this o r d er ; a nd10. W e will s er ve a c o p y of this o r d e r on the a ppl i ca nt, the Emb a s s y of the R e public of Ko r e a in

W a shin g ton, D. C ., the F e d era l Avi a tion Administ ra tion, a nd the U. S . D e p a r tm e nt of S t a t e

.

P er sons e ntitl e d to p e titi o n the D e p ar tm e nt f or r e vi e w of this o r d e r un d e r t h e D e p a r tm e nt ’ s r e g u l a tions,

14 C F R §385.30, m a y f ile th e ir p e titions within s e v e n ( 7) d a y s af t e r t h e d a t e of issu a n c e of this o r d e r

. Our ac tion with re s p ec t t o the a ppli ca nt ’ s r e qu e st f or e x e mption a utho r i t y und e r 49 U. S

. C . §40109 is

eff e c tive imm e di a t e l y

, a n d the f iling of a p e tition f or re vi e w will not a lt e r su c h ef f

ec tiv e n e ss.

B y:

P A U L L . G R ET C H

Di rec tor

O ff i c e o f I nt er n a tion a l A vi a tion

( S E A L)

App e ndi ce s

An e l e c t ron i c v e r s i on o f t h i s docu m e n t i s a v a i l a b l e on t he W or l d W i de W eb a t :

h tt p : / /

www .re g u l a ti o ns.g o vF o r e i gn C ar r i er E x e m p t i on C ond i t i ons A ppend i x A

I n t he condu c t of t he op e r a t i ons au t h o r i z ed, t h e f o r e i g n ca r ri e r a pp l i c a n t ( s) s h a l l :

( 1) N o t co n du c t any ope r a ti ons u n l e s s i t h o l ds a c u rr e n t l y e ff e c t i v e au t h o r i z a ti o n fr om it s ho m e l and f or s uch

ope r a t i ons, and i t h as f i l ed a copy of s u ch a u t h o ri za ti o n w it h t he D epa r t m en t ;

( 2) C o m p l y w it h a l l ap p li ca b l e r eq u i r e m en t s of t he F e d e r a l A v i a t i on A d m i n i s tr a t i o n, t he T r a n spo r t a t i on Se c u r i t y

A d m i n i s t r a t i on, a nd wi t h a l l ap p l i ca b l e U .S. G o v e r n m ent r equ i r e m en t s con c e r n i ng sec u r i t y

, i n c l ud i n g

, but n o t

li m it ed t o, 1 4 C FR Pa r t s 1 2 9, 91, and 36 a n d 49 C FR P a r t 1546 o r 155 0 , as ap p li ca b l e. T o as s u r e co m p li a n ce

w it h a l l ap p l i ca b l e U .S. G ov e r n m ent r eq u ir e m en t s co n ce r n i ng sec u r i t y

, t he h o l d er sha l l

, b e f o r e c o m m enc i ng any

new se r v i c e ( i n c l u d i ng cha r t er f l i g h t s ) f r om a f o r e i g n a ir p o r t t h a t w o u l d be t he ho l de r ’ s l a s t po i nt o f d e pa r t u r e

f or t he U n i t ed S t a t es, c on t a ct i t s I n t e r n a t i o n al I ndus tr y R ep r e s en t a t i v e ( I I R ) (f o r m e rl y r e f e r

r ed t o as

I n t e r na t i on a l P r i n c i p a l Se cu r i t y I nspec t o r ) t o ad v i se t he I I R of it s p l a n s and t o fi n d out w h e t h e r t h e

T r ans p o r t a t i on S ec u r i t y A d m i n i s t r a t i on h a s d e t e r m i ned t h a t s e cu r it y i s ade q ua t e t o a l l ow such a i r p o r t ( s) t o b e

se r v ed;

( 3) C o m p l y w it h t he r eq u i r e m en t s f o r m i n i m u m i nsu r a nce co v e r a g e con t a i n ed i n 1 4 C FR Pa r t 205, a nd, p ri o r t o

t he c o m m ence m ent of any ope r a t i ons u nder t h i s au t ho r i t y

, fi l e e v i de n ce o f s u ch c o v e r a g e, i n t he f o r m of a

co m p l e t ed O S T F o r m 6411, w it h t he F ed e r al A v i a t i on A d m i n i s t r a t i on ’ s P r o g r am Mana g e m ent B r a n ch ( A F S

260 )

, F li g ht S t an d a r d s Se r v i ce ( any chan g es t o, o r t e r m i n a ti on o f

, i ns u r a n ce a l so s ha l l be f i l ed w it h t h a t o f f i c e ) ;

( 4) N o t op e r a t e a i r c r a f t un d er t h i s au t ho r it y un l ess i t c o m p li es w i t h op e r a ti o nal s af e t y r eq u i r e m en t s at l e a s t

equ i v a l e nt t o A nn e x 6 o f t h e C h i c a g o C on v en ti o n ;

( 5) C o n f o r m t o t he a ir w o r t h i ne s s and a i r m an co m pe t e n cy r equ i r e m en t s o f i t s G o ve r n m ent f o r i n t e r n a ti o n al a i r

se r v i c e s;

( 6) E x ce p t as sp e c i fi c a l l y exe m p t ed or o t h e r w i s e p r o v i ded f o r i n a D e p a r t m ent O r de r

, c o m p l y w it h t he

r eq u ir e m en t s of 1 4 C FR P a r t 2 0 3, co n ce r n i ng w a i v er o f W a r saw C o n v en ti o n l i a b i l it y li m it s and d e f e ns e s;

( 7) A g r ee t h a t o p e r a t i ons u nder t h i s a u t h o r i t y cons t i t u t e a w a i v er of s o v e r e i g n i mm un it y

, f or t h e pu r pos e s of 28

U .S. C . 1605 ( a ) , b u t o n l y w it h r esp e ct t o t ho s e a c ti o ns o r p r o cee d i n g s i n s t it u t ed a g a i n s t i t i n any cou r t o r o t her

t r i bun a l i n t h e U n i t ed S t a t e s t h a t a r e : ( a) b ased on i t s o pe r a ti o ns i n i n t e r n a t i on a l a i r t r an s po r t a ti on t h a t

, a cc o r d i ng

t o t h e co n t r a c t of c a r r i a g e, i nc l u d e a p o i n t i n t h e U n i t ed S t a t es a s a p o i n t o f o r i g i n, po i n t of de s ti n a t i on, o r a g r e ed

s t op p i ng p l a ce, o r f o r w h i c h t he con t r a ct o f c a r r i a g e w as p u r ch a sed i n t he U n it e d S t a t e s ; or ( b) ba s ed on a c l a i m

under any i n t e r n a t i on a l a gr ee m ent or tr e a t y co g n i z ab l e i n any co u r t o r o t h e r t ri b u n al o f t h e U n i t ed S t a t es. I n t h i s

cond i t i on, t he t e r m "i n t e r n a ti o n al a i r t r a n spo r t a ti o n" means "i n t e r n a ti o nal t r an s po r t a t i o n " a s d e fi n ed by t he

Wa r saw C on v en t i on, e xce p t t h at a l l S t a t e s s h a l l be co n s i d e r ed t o b e H i g h C on t r a c t i ng Pa r t i es f o r t h e p u r po s e of

t h i s d e fi n i t i o n ;

( 8) E x ce p t as sp e c i fi c a l l y au t ho r i z ed by t he D e pa r t m en t , o r i g i n a t e o r t e r m i na t e a l l f li g h t s t o / f r om t he U n i t ed

S t a t es i n i t s ho m e l and;

( 9) C o m p l y w it h t he r eq u i r e m en t s of 14 C FR Pa r t 21 7 , conc e r n i ng t he r ep o r t i ng of sc h ed u l ed, n o nsc h ed u l ed,

and c h a r t er da t a;

( 10) I f ch a rt e r o p e r a t i ons a r e au t ho r i z ed, ex c ept as o t h e r w i se p r o v i d e d i n t h e ap p l i c ab l e a v i a t i on a g r e e m en t

,

co m p l y w it h t he D e pa r t m ent ' s r u l es g o v e r n i ng cha r t e r s ( i nc l ud i ng 14 C FR P a r t s 2 12 and 3 8 0 ) ; and

( 11) C o m p l y w it h s uch o t h er r eas o na b l e t e r m s, con d i ti ons, and l i m it a t i ons r e q u i r e d by t he pu b l i c i n t e r e s t a s m a y

be p r es c ri b ed by t he D e pa r t m en t

, w it h a l l ap p li c ab l e o r de r s or r e g u l a ti o n s of o t h er U .S. a g enc i es and cou r t s, a nd

w it h a l l ap p l i ca b l e l a w s o f t he U n i t ed S t a t es.

T h i s a u t h o r i t y sh a l l n o t b e e f f ec t i v e du r i ng any pe r i od w hen t h e ho l der i s not i n co m p li ance wi t h t he con d i t i o ns

i m posed abo v e. M o r eo v e r

, t h i s a u t h o r i t y cannot be s o l d or o t h e r w i s e t r an s f e rr e d w it ho u t e x p l i c i t D e p a r t m ent

app r o v al und e r T i t l e 49 o f t he U .S. C ode.

12 / 20 0 7U NI TE D ST A TE S OF A M E RICA

D E P AR TME NT OF T RAN S P OR T A T ION

O F F I C E O F T H E S ECRETAR Y

W A S HIN G T ON, D.C.



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P E R M I T TO F O R E I GN A I R C A R R I ER



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### T ’ WAY AIR CO., L T D.

A F o r e i g n Air C arr i e r of the R e public of Ko r e a A pp e nd ix B

I ss u e d b y

O r d e r

_____

is a utho r i z e d, subj ec t to the f ollowing p r ovisions, the p r ovisions of Title 49 of the U. S

. C od e

,

a nd the o r d e r s, r ul e s, a nd r e g ul a tions of the D e p ar t m e nt of T ra nspo r t a tion, t o e ng a g e in:

S c h e du l e d f o re ign air tr a n s p o rt a t ion of p er so n s , p r o p ert y, a n d m ail f r o m p oi n t s

b e h i n d t h e R e p u b lic of K o r e a via t h e R e pub lic of K o re a a n d i n te r m e d i a t e p oi n t s t o a

p oi n t or p oi n t s i n t h e U n i te d S t a te s a n d b e yo n d ; a n d

C h a rte r f o re ign air t r a n s p o rt a t ion of p er so n s, p r o p ert y, a n d m ail b e tw ee n a n y p o i n t

or p oi n t s in t h e R e pub li c of K o re a a n d a n y p oi n t or p oi n t s in t h e U n i te d S t a te s, a n d

b et w ee n a n y p oi n t or p oi n t s in t h e U n i te d S t a te s a n d a n y p o i n t or p o i n t s in a t h i r d

c o un tr y or c o un tr i e s, pr ovi d e d t h at s u c h s er vi c e c o n s t i t u te s p a r t of a c o n t i nu o u s

o p er a t io n , w i t h or wi th o u t a c h a n ge of ai rcr a f t

, t h at i n c l ud e s s er vi c e t o t h e R e pub lic

of K o re a a n d t h e U n i t e d S t a te s.

The hold e r sh a ll a lso be a utho r i z e d to e ng a g e in o th e r c h a r t e r t r ips in f o r e i g n a ir t ra nspo r t a tion,

subj ec t to the t er ms, c o n ditions, a nd limit a tions o f the D e p a r tm e nt ’ s r e g u l a tions g ov e r ning

c h ar t e r s.

This p er mit a nd the e x er c ise of the p r ivil e g e s g r a nt e d in it sh a ll be subj ec t to the t er ms,

c onditions a nd limit a tio n s in both the o r d e r issuing this p er mit a nd the a tt ac hm e nt to this o r d er

,

a nd to a ll a ppli ca ble p r o v isions of a n y t r ea t y

, c on v e ntion or a g r e e m e nt a f f

e c ting int er n a tion a l a ir

t ra nspo r t a tion now in ef f

ec t, or th a t m a y b e c ome eff e c tive du r i n g the p e r i o d this p er mit re m a ins

in eff e c t, to whi c h the U n it e d S t a t e s a nd the hold e r ’ s hom e l a nd a r e or sh a ll b ec ome p a r ti e s.

This p er mit sh a ll be ef f

e c tive on . Unl e ss oth er wise t er min a t e d a t an

ear li e r d a te pu r s u a nt to the t er ms of a n y a ppli ca ble t rea t y

, c onv e ntion or a g r ee m e nt, this p er mit

sh a ll t er min a te ( 1) upon t he dissolution or liquid a t ion of the hold e r to wh o m it w a s issu e d; ( 2)upon the ef f

ec tive d a te of a n y t r ea t y

, c on v e ntion, or a g r e e m e nt or a m e ndm e nt, whi c h sh a ll h a ve

the ef f

ec t of e limin a ti n g the bil a t era l r i g ht f o r the s er vi c e a utho r i z e d b y this p er mit fr om the

s er vi c e wh i c h m a y be o p era t e d b y a i r lin e s d e s i g n a t e d b y the Gov er nm e nt o f the R e public of

Ko re a ( o r , if the r i g ht is p ar ti a l l y e limin a t e d, th e n the a utho r i t y o f this p e r mit sh a ll t er min a te in

like p ar t ) ; ( 3) upon the e f fec tive d a t e of a n y p er m i t g ra n t e d b y the D e p ar t m e nt to a n y ot h er

carr i e r d e s i g n a t e d b y the Gov er nm e nt of the R e p u blic of Ko r e a in li e u of the hold er ; or ( 4 ) upon

the t er min a tion or e x pi ra tion of the a ppli ca ble a ir s er vi ce s a g r e e m e nt b e tw e e n the Unit e d S t a t e s

a nd the R e public of Ko r e a . How e v er

, c l a u s e ( 4) o f this p ar a g r a ph sh a ll not a pp l y if p r ior to su c h

t er min a tion or e x pi ra tion, the f o re i g n a ir t ra nspo r t a tion a utho r i z e d h ere in b ec om e s the subj e c t of

a noth e r t r e a t y

, c onv e nti o n or a g r e e m e nt to whi c h the Unit e d S t a t e s a nd the R e public of Ko r e a

b ec ome p a r ti e s.

The D e p a r tm e nt of T r a n s po r t a tion h a s e x ec ut e d t h is p er mit a nd aff i x e d its s ea l on

.

B y:



### ( S E A L ) P A U L L . G R ET C H

Di rec tor

O ff i c e o f I nt er n a tion a l A vi a tionF o r e i gn A i r C a rr i er P e r m i t C on d i t i ons

I n t he condu c t of t he op e r a t i ons au t h o r i z ed, t h e f o r e i g n ca r ri e r a pp l i c a n t ( s) sh a l l :

( 1) N o t co n du c t any ope r a ti ons u n l e s s i t h o l ds a c u rr e n t l y e ff e c t i v e au t h o r i z a ti o n fr om it s ho m e l and f or s uch

ope r a t i ons, and i t h as f i l ed a copy of s u ch a u t h o ri za ti o n w it h t he D epa r t m en t ;

( 2) C o m p l y w it h a l l ap p li ca b l e r eq u i r e m en t s of t he F e d e r a l A v i a t i on A d m i n i s tr a t i o n, t he T r a n spo r t a t i on Se c u r i t y

A d m i n i s t r a t i on, a nd wi t h a l l ap p l i ca b l e U .S. G o v e r n m ent r equ i r e m en t s con c e r n i ng sec u r i t y

, i n c l ud i n g , but n o t

li m it ed t o, 1 4 C FR Pa r t s 1 2 9, 91, and 36 a n d 49 C FR P a r t 1546 o r 155 0 , as ap p li ca b l e. T o as s u r e co m p li a n ce w it h

a l l ap p li c ab l e U .S. G o v e r n m ent r equ i r e m en t s con c e r n i ng secu r it y

, t he ho l d er sh a l l , be f o r e c o m m enc i ng any new

se r v i ce ( i n c l ud i ng cha r t er f l i g h t s) fr om a f o r e i g n a ir p o r t t h at w o u l d b e t h e h o l d e r’ s l a s t p o i nt of d ep a rt u r e f or t he

U n it ed S t a t e s, co n t a ct i t s I n t e r n a t i on a l I ndus tr y R ep r e s en t a ti v e ( I I R ) (f o r m e rl y r ef e r r ed t o as I n t e r n a t i on a l P r i nc i p a l

Secu r it y I nspec t o r ) t o ad v i s e t he I I R of it s p l ans a nd t o fi nd out w h e t h er t he T r a n s p o rt a t i on S e cu r it y A d m i n i s t r a t i on

has d e t e r m i ned t h at sec u r i t y i s adeq u a t e t o a l l ow s u ch a ir p o r t( s ) t o be se r v e d ;

( 3) C o m p l y w it h t he r eq u i r e m en t s f o r m i n i m u m i nsu r a nce co v e r a g e con t a i n ed i n 1 4 C FR Pa r t 205, a nd, p ri o r t o t h e

co m m ence m ent of any ope r a t i ons u n der t h i s a u t h o r i t y

, f i l e e v i d e nce o f s u ch c o v e r a g e, i n t h e f o r m of a co m p l e t ed

O ST F o r m 6411, w it h t he F ede r al A v i a ti on A d m i n i s t r a ti o n ’ s P r o g r am Mana g e m ent B r a n ch ( A F S

- 260 ) , F l i g ht

S t and a r ds Se r v i c e ( any ch a n g es t o, o r t e r m i na t i on o f

, i nsu r a nce a l s o s h a l l be f i l ed w it h t h a t o f f i ce ) ;

( 4) N o t op e r a t e a i r c r a f t un d er t h i s au t ho r it y un l ess i t c o m p li es w i t h op e r a ti o nal s af e t y r eq u i r e m en t s at l e a s t e q u i v a l e n t

t o A nnex 6 of t he C h i c a g o C on v en ti o n ;

( 5) C o n f o r m t o t he a ir w o r t h i ne s s and a i r m an co m pe t e n cy r equ i r e m en t s o f i t s G o ve r n m ent f o r i n t e r n a ti o n al a i r

se r v i c e s;

( 6) E x ce p t as sp e c i fi c a l l y exe m p t ed or o t h e r w i s e p r o v i ded f o r i n a D e p a r t m ent O r de r

, c o m p l y w it h t he r e q u i r e m en t s

of 14 C FR P a r t 203, c o nc er n i ng w a i v er of W a r saw C o n v en ti on l i ab i l i t y li m it s and de f e nse s ;

( 7) A g r ee t h a t o p e r a t i ons u nder t h i s a u t h o r i t y cons t i t u t e a w a i v er of s o v e r e i g n i mm un it y

, f or t h e pu r pos e s of 28

U .S. C . 1605 ( a ) , b u t o n l y w it h r esp e ct t o t ho s e a c ti o ns o r p r o cee d i n g s i n s t it u t ed a g a i n s t i t i n any cou r t o r o t her

t r i bun a l i n t h e U n i t ed S t a t e s t h a t a r e : ( a) b ased on i t s o pe r a ti o ns i n i n t e r n a t i on a l a i r t r an s po r t a ti on t h a t

, a cc o r d i ng t o

t he c on t r a c t o f c a r r i a g e, i nc l ude a po i nt i n t he U n it e d S t a t es a s a p o i n t of o r i g i n, p o i nt o f d e s t i n a t i on, o r a g r eed

s t op p i ng p l a ce, o r f o r w h i c h t he con t r a ct o f c a r r i a g e w as p u r ch a sed i n t he U n it e d S t a t e s ; or ( b) ba s ed on a c l a i m

under any i n t e r n a t i on a l a gr ee m ent or tr e a t y co g n i z ab l e i n any co u r t o r o t h e r t ri b u n al o f t h e U n i t ed S t a t es. I n t h i s

cond i t i on, t he t e r m "i n t e r n a ti o n al a i r t r a n spo r t a ti o n" means "i n t e r n a ti o nal t r an s po r t a t i o n " a s d e fi n ed by t he W a r saw

C on v en ti on, exc e pt t h a t a l l S t a t es s ha l l b e co n s i d e r e d t o be H i g h C on t r a c t i ng Pa r ti es f o r t he p u r po s e of t h i s

de f i n i ti o n;

( 8) E x ce p t as sp e c i fi c a l l y au t ho r i z ed by t he D e pa r t m en t , o r i g i n a t e o r t e r m i na t e a l l f li g h t s t o / f r om t he U n i t ed S t a t es i n

it s ho m e l and;

( 9) C o m p l y w it h t he r eq u i r e m en t s of 14 C FR Pa r t 21 7 , conc e r n i ng t he r ep o r t i ng of sc h ed u l ed, n o nsc h ed u l ed, and

cha r t e r d a t a;

( 10) I f ch a rt e r o p e r a t i ons a r e au t ho r i z ed, ex c ept as o t h e r w i se p r o v i d e d i n t h e ap p l i c ab l e a v i a t i on a g r e e m en t , c o m p l y

w it h t he D e p a r t m en t ' s r u l es g o v e r n i ng cha r t e r s ( i nc l ud i ng 14 C FR Pa rt s 212 a n d 3 80 ) ; and

( 11) C o m p l y w it h s uch o t h er r eas o na b l e t e r m s, con d i ti ons, and l i m it a t i ons r e q u i r e d by t he pu b l i c i n t e r e s t a s m a y be

p r e s c r i bed by t h e D ep a rt m en t

, wi t h a l l ap p li c ab l e o r de r s or r e g u l a ti o n s of o t h er U

. S. a g enc i e s and co u rt s, and w it h a l l

app l i ca b l e l a w s of t he U n i t ed S t a t e s.

T h i s a u t h o r i t y sh a l l n o t b e e f f ec t i v e du r i ng any pe r i od w hen t h e ho l der i s not i n co m p li ance wi t h t he con d i t i o ns

i m posed abo v e. M o r eo v e r

, t h i s a u t h o r i t y ca n not be s o l d or o t h e r w i s e t r an s f e rr e d w it ho u t e x p l i c i t D e p a r t m ent

app r o v al und e r T i t l e 49 o f t he U .S. C ode.

12 / 20 0 7