Order 20 10

- 12

- 18

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C

.

Issued by the Department of Transportation

on the 13 th day of December, 20 10

Served : December 13, 2010

Application of



### ULS Havayollari Kargo Tasimacilik A.S. d/b/a ULS Airlines Cargo/ULS 1 Docket DOT

- OST

- 200 6

- 25940

for a n amended f

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

ORDER TO SHOW CAUSE

Summary

By this order we tentative ly find that it is in the public interest to grant the application the referenced foreign air carrier a n amended foreign air carrier permit (attached as the Appendix to this order)

.

Application

By application filed June 3, 2010, as supplemented December 10, 2010, Kuzu Airlines Cargo, a foreign air carrier of Turkey

, r equest s a n amended foreign air carrier permit under 49 U.S.C. §41301, to reissue its current charter authority in the name of ULS Havayollari Kargo

Tasimacilik A.S. 2

1 The applicant, formerly known as Kuzu Airlines Cargo A.S., stated in its application that it had changed it name to ULS Havayollari Kargo Tasimacilik A.S. Pursuant to Part 215 of our rules, we compared the propo sed name with our list of names used by existing certificated, commuter, and foreign air carriers and with those applicants seeking new authority. We have completed our review and determined that no similarly named carrier(s) need to be served.

2 Kuzu Ai rline’s current foreign air carrier permit, issued by Order 2007

- 2

- 12, authorizes the carrier to engage in charter foreign air transportation of property and mail between a point or points in Turkey, via intermediate points, and points in the United States and beyond, and other charters under the Department’s regulations governing

charters.2

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

Responsive Pleadings

We received no answers to the application.

Tentative Decision

We have decided

, under assigned authority

, tentatively to gr ant, subject to show

- cause procedures, the applicant’s request for a n amended foreign air carrier permit, subject to conditions. We tentatively find that grant of this authority is in the public interest, and that the applicant is operationally and financ ially fit to conduct the operations at issue here.

T he ownership and control of the applicant has changed since we issued its current foreign air carrier permit in 2007. T he record indicates that ULS is 5 1 percent owned by Turkish citizens

, with the re mainin g 49 percent owned by Russian citizens. The applicant’s Board of Directors consists of five members, three of whom are Turkish citizens, and two of whom are Russian

citizens. I n the specific circumstances present in this proceeding, we find that a waiver of our ownership and control standard is warranted, as we find that there is nothing in the ownership and control of the applicant that would be inimical to U.S. aviation policy or interests.

By memorandum dated June 23, 2010, the FAA advised us that it knew of no reason why we should act unfavorably on ULS’s application. We have verified the applicant’s compliance with 14 CFR Parts 203 (Warsaw liability waiver), and 205 (insurance requirements).

Tentative Findings and Conclusions

In view of th e foregoing and all facts of record, and acting under authority assigned by the Department in its regulations, 14 CFR Part 385, we tentatively find and conclude that:

1. It is in the public interest to issue the applicant an amended foreign air carrier p ermit in the form attached; 3

2. The applicant is fit, willing, and able properly to perform the foreign air transportation described in the attached permit and to conform to the provisions of Title 49 of the U.S. Code, and to our rules, regulations, and requirements;

3. A waiver of our ownership and control standard is warranted in the circumstances presented;

3 The applicant’s request for an amended foreign air carrier permit was summarized in the Department’s published weekly list of applications filed. This notice describe d the authority sought and gave interested persons an opportunity to submit evidence and objections to the award of this amended foreign air carrier permit authority. As noted above, no answers were filed to the application.3

4. The public interest requires that the exercise of the privileges granted by the permit should be subject to the terms, conditions, and limit ations required by the public interest as we may prescribe;

5. The issuance of this amended foreign air carrier permit will not constitute a major regulatory action under the Energy Policy and Conservation Act of 1975, as defined in 14 CFR § 313.4(a)(1)

o f our regulations; 4

6. The public interest does not require an oral evidentiary hearing on the application; and

7. Our action with respect to this amended foreign air carrier permit should, unless disapproved by the President of the United States under §41307 of Title 49 of the U.S. Code, become

effective on the 61 st day after its submission for §41307 review, or upon the date of receipt of advice from the President or his designee under Executive Order 12597 and implementing regulations that he or she does not intend to disapprove this portion of the Department’s decision under that section, whichever occurs earlier.

ACCORDINGLY,

1. We direct all interested persons to show

- cause why our tentative decision on the application

of ULS Havayollari Kargo T asimacilik A.S. for a n amended 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 reque st 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

. 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 furthe r 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

4 This finding is based on the fact that the grant of this amended permit will not result in a near

- term annual change in aircraft fuel consumption of 10 million gallons or more.4

5 . We w ill serve a copy of this order on the applicant, ULS Havayollari Kargo Tasimacilik A.S., the Embassy of Turkey, i n Washington, D.C., the Department of State , and the Federal Aviation

Administration.

By:

PAUL L. GRETCH

Director

Office of International Av iation (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

(as amended)



### --------------------------------------------------------- ULS HAVAYOLLARI KARGO TASIMACILIK A.S.

d/b/a ULS AIRLINES CARGO ULS

A F oreign Air Carrier of Turk ey

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 charter foreign air transportation of property and mail:

Betwee n a point or points in Turkey, via intermediate points, and points in the United States and beyond

The holder shall also be authorized to engage in other charter trips in foreign air transportation, subject to the terms, conditions, and limitations of th e 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 applic able 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 airline s designated by the Government

of Turkey ( 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 Turkey

, 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 Turkey, are parties. However, clause (4) of this paragraph shall not apply if prior to such ter mination or expiration, the foreign air transportation authorizedherein becomes the subject of another treaty, convention or agreement to which the United States and

Turkey b ecome parties.

The Department of Transportation has executed this permit and aff ixed its seal on

By:

PAUL L. GRETCH

Director

Office of International Aviation



### (SEAL)Foreign Air Carrier Exemption Conditions Appendix A

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

(1) Not conduct a ny 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 appli cable 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 Internation al 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 a irport(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 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 purpos es 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 contr act 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, concern ing 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 law s 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