Order 2009-5-20

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 17th day of May, 2010

Served: May 17, 2010

Application of

Etihad Airways P.J.S.C. Docket DOT-OST-2005-23345

 

for a foreign 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 application the 

referenced foreign air carrier a foreign air carrier permit (attached as the Appendix to this order).

Applications

By applications 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 requests 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 intermediate 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, 2009, 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 conditions. 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 Etihad’s Board are 

U.A.E. citizens. However, only 6 of Etihads’ 18 key management personnel 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 whether 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 

and 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 us 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 authority 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 

perform 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 persons 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 tentative 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 proceeding, 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 

objections 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 further 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 tentative 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 in 

Washington, D.C., the Department of State, and the Federal Aviation Administration.

By:

PAUL L. GRETCH

Director

Office of International Aviation

(SEAL)

Appendix

An electronic version of this document is available on the World Wide Web at:

http://www.regulations,gov
Appendix 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 Foreign Air Carrier of the United Arab Emirates

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, 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.

The holder shall also be authorized to engage in charter trips in foreign air transportation, 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, to 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 granted 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 agreement to which the 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 States and the United Arab Emirates become 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 Department;

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 would 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 Transportation 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 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 Branch (AFS260), 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 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 purchased 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 

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, 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 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 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. Code.

12/2007