UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on December 16 , 2011



### NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 2005

- 20717

_____________________________________________________________________________________________________________________________ ___ This serves as notice to the public of the action described below, taken by the Department official indicated (no

additional co nfirming order will be issued in this matter).

Applicant: DHL AVIATION EEMEA B.S.C.(c) (DHL Aviation) 1 Date Filed: September 30, 2011

Relief requested: Renewal of e xemption from 49 USC §41301 to engage in scheduled foreign air transportation of

prope rty and mail between Bahrain, on the one hand, and New York, New York, on the other hand, via Brussels, Belgium and Dubai, United Arab Emirates. The applicant states that it would conduct these services only by wet leasing aircraft from a duly authorized and properly supervised U.S. or foreign air carrier. 2

If renewal, date and citation of last action: September 30, 2009, in this Docket.

Applicant representative s : Bruce H. Rabinovitz and David Heffernan

, 202

- 663

- 6000

DOT analyst: Robert J. Finamore, 202

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- 2405

Responsive pleadings: None.

DISPOSITION

Action: Approved. Action date: December 16 , 2011

Effective dates of authority granted: December 16 , 2011 , through December 16 , 2013.

Basis for approval: United States

- Bahrain Air Transport Services Agreement.

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our standard

e xemption conditions (attached) and to the conditions specified below.

Special conditions/Remarks : With respect to the ownership and control of the applicant, DHL Aviation states that, like its predecessor DHLI, it is a wholly

- owned subsidiary of Deutsch e Post AG and is owned by German citizens. DHL

Aviation further states that its three

- member boar d of directors now consists of two Australian citizens and one British citizen. In addition, DHL Aviation states that its key management personnel consists of citizens of Bahrain, South Africa, Canada, Ireland, the United States, and New Zealand. DHL Aviation requests that, to the extent the Department may deem it necessary, the Department exercise its discretion to waive the requirement that a foreign air carrier be substantially owned and effectively controlled by citizens of its homeland.

Consi stent with our previous grant of authority to DHLI, i n spite of the fact that we are unable to find that DHL

Aviation is substantially owned and effectively controlled by homeland nationals, we find it app ropriate to waive our ownership and control require ments as there is no evidence on the record which would suggest that the ownership and

1 The applicant, a foreign air carrier of Bahrain formerly known as DHL International B.S.C. (DHLI), stated in its application that it has undergone a corporate reorganization and is a successor entity to DHLI.

2 DHL Aviation states that it proposes to conduct its services pursuant to a wet lease and code

- share a greement with Kalitta Air, L.L.C. (Kalitta), whereby Kalitta will display the “ES” designator code of DHL Aviation on flights operated by Kalitta on a N ew York

- Brussels

- Bahrain

- Dubai routing.control of the carrier would be inimical to U.S. aviation policy or interests. We also note that the applicant is properly licensed by its homeland to perform its propo sed services.

DHL Aviation may conduct the operations at issue here by wet

- lease or code

- share arrangement with a duly authorized and properly supervised U.S. or foreign air carrier. DHL Aviation may not conduct U.S. operations with its own

aircraft and crews without further action by the Department.

Action taken by: Paul L. Gretch, Director, Office of International Aviation

_____________________________________________________________________________________________________________________________ __ Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our action was consistent w ith Department policy; (2) the applicant was qualified to perform its proposed operations; (3) grant of the authority was consist en t with the public interest; and (4) grant of the authority would not constitute a major regulatory action under the Energy Poli cy and Conservation Act of 1975. To the extent not granted/deferred/dismissed, we denied all requests in the referenced Docket. We may amend, modify, or revoke the authority granted in this Notice at any time without hearing at our discretion.

Persons entitled to petition the Department for review of the action set forth in this Notice under the Department’s regulati ons, 14 CFR § 385.30, may file their petitions within seven (7) days after the date of issuance of this Notice. This action was effective when taken, and the filing of a petition for review will not alter such effectiveness.

An electronic version of this document is a vailable 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, t he 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

app licable 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 Internati onal 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 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 (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 soverei gn 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 t hat, 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 req uirements 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. a gencies 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 tr ansferred without explicit Department approval

under Title 49 of the U.S. Code.

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