### UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on May 31 , 2013



### NOTICE OF ACTION TAKEN

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- 2013

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

Applicant: ANTONOV COMPANY t/a ANTONOV AIRLINES (Antonov) Date Filed: May 28, 2013

Relief requested: Exemption under 49 USC § 40109(g) to permit the applicant to operate two , one

- way , all

- cargo charter fl ight s
, using its AN

- 124

- 100 aircraft, carrying outsized cargo on behalf of Boeing Commercial Aircraft (Boeing)

, from Fort Worth,
Texas, to Everett, Washington , on or around June 2

- 18 , 2013 . The applicant states that each flight would carry up to two outsi ze d

B o eing 747 fuselage panels and ancillary equipment

. The applicant asserts that Boeing needs the subject lift to avoid delay in

B747 production and delivery deadlines ; that delivery delay would result in severe financial penalties on Boeing and its cus tomers; that the cargo is too large for transportation on commercially available U.S.

- carrier aircraft; and that surface transportation is not

feasible because of the size of the cargo and the urgency of the shipment.

Applicant representative: Sheryl Israel, 202

- 637

- 8898 D OT analyst: David R. Christofano, 202

- 366

- 0584

Responsive pleadings: Antonov served its application on those U.S. carriers operating large all

- cargo aircraft. Each carrier

indicated that it did not hav e aircraft available to conduct the proposed operation s and that it had no comment or did not oppose grant of the requested authority.

Statutory Standards: Under 49 USC § 40109(g), we may authorize a foreign air carrier to carry commercial traffic betw een U.S. points ( i.e ., cabotage traffic) under limited circumstances. Specifically, we must find that the authority is required in the public interest; that because of an emergency created by unusual circumstances not arising in the normal course of busin ess the traffic cannot be accommodated by U.S. carriers holding certificates under 49 USC § 41102; that all possible efforts have been made t o place the traffic on U.S. carriers; and that the transportation is necessary to avoid unreasonable hardship to th e traffic involved (an additional required finding, concerning emergency transportation during labor disputes, was not relevant here).

DISPOSITION

Action: Approved. Action date: May 31 , 2013

Effective dates of authority granted: June 2

- 18

, 2013

Basis for approval: We are granting An tonov’s request to operate the proposed one

- way flight s (described above), on behalf of Boeing . We found that its request met all the relevant criteria of 49 USC § 40109(g) for the grant of an exemption of this type, a nd that the grant was required in the public interest. Specifically, we were persuaded that the need to move the cargo in order to avoid delay in production and delivery deadlines for Boeing’s aircraft ; that delivery delay could result in severe financial penalties on Boeing and its customers ; the fact that the cargo could not be transported by surface transportation because of the size and urgency of the shipment ; and the unique, outsized nature of the cargo, constituted an emergency not arising in the normal course of

business. Mor eover, based on the representations of the U.S. carriers, we concluded that no U.S. carrier had aircraft available that could be used to conduct the operation s at issue here. We also found that grant of this authority would prevent unreasonable hardship t o Boeing

. Finally, we found that the applicant was qualified to perform its proposed operation s

.

Except to the extent exempted/waived, this authority is subject to our standa rd exemption conditions (attached). We may amend, modify, or revoke the authori ty granted in this Notice at any time without hearing at our discretion.

Action taken by: Susan L. Kurland Assistant Secretary for Aviation

and International Affairs

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

### Foreign Carrier Exemption Conditions

In the conduct of the operations authorized, the foreign carrier applicant(s) 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 ass ure 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 St ates,
contact its International Industry Representative (IIR) (formerly referred to as International Principal Security Inspector ) to advise the I IR of its plans and to find out whether the Transportation Security Administration has

determined that securit y 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 th e 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 be filed with that office);

(4) Not operate aircraft und er 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 constitu te 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) bas ed 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 Conventi on, 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) C omply 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 can not be sold or otherwise transferred without explicit Department approval

under Title 49 of the U.S. Code.

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