Order 20 11

- 6

- 29

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 28 th day of June, 2011

Served: June 28, 201 1

Application of

AIRBRIDGECARGO AIRLINES LLC Docket s DOT

- OST

- 2007

- 2823 4

for a n amended 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 t he public interest to grant the applicant the amended foreign air carrier permit attached as the Appendix to this order.

Application

By ap plication filed April 11, 2011, 1 AirBridgeCargo Airlines LLC (AirBridgeCargo) , a foreign air

carrier of the Russian Federation, requests an amended foreign air carrier permit under 49 U.S.C. §41301 to engage i n scheduled foreign air transportation of property and mail between any point or points in the Russian Federation , on the one hand , via intermediate points, and Ch icago, Illinois, on the other hand, and beyond

. 2

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

No answers were filed to the application.

1 We note that in this same application AirBridgeCargo requested exemption authority and we have previously acted on that portion of its request. See Notice of Action Taken dated April 20, 2011, in the above ref erenced Docket.

2 AirBridgeCargo’s current foreign air carrier permit, issued in Docket DOT

- OST

- 2007

- 28233 on February 13, 2008, by

Order 2008

- 2

- 19 , authorizes it to engage in , subject to conditions outlined in the order: 1) scheduled foreign air

transport ation of property and mail between a point or points in the Russian Federation, on the one hand, via intermediate points, and Houston, Texas; New York, New York; and Atlanta, Georgia, on the other hand, and beyond to a point or points in the Western Hemisp here; and 2) charter foreign air transportation of property and mail between any point or points in the Russian Federation and any point or points in the United States.2 Tentative Findings and Conclus ions

We tentatively find and conclude that the public interest warrants granting the applicant an amended foreign air carrier permit, in the form attached as the Appendix to this order, and subject to the

conditions attached. 3 In particular, we tentative ly find that grant of this authority is in the public interest; that the applicant has demonstrated, based on the record, that it is financially and operationally fit to perform the services authorized; 4 and that it is substantially owned and effectively c ontrolled by

citizens of its claimed homeland. 5

The authority sought by the applicant is encompassed by the 1994 Air Transport Agreement between

the United States and the Russian Federation (the Agreement)

. 6 We also note that the applicant is properly li censed by its homeland to perform the proposed services. In addition, the Federal Aviation Administration advised us that it knew of no reason why we should act unfavorably on the applicant’s requests. We have verified the applicant’s compliance with 14 CFR Parts 203 (Warsaw liability waiver), and 205 (insurance requirements).

Finally, we tentatively find that the authority sought by the applicant, if finalized, should be subject to the following conditions:

I n the conduct of the services authorized her ein, AirBridgeCargo must adhere to (1) FAA

- approved flight routings; and ( 2 ) the Air Transport Agreement between the United States and the Russian Federation, including its Annexes. 7 In accordance with 14 CFR §212.9(d) and (e) of the Department’s rules Ai rBridgeCargo shall not perform any charter(s) unless specific authority in the form of a statement of authorization for such charter(s) has been granted by the Department. Applications for the statements of authorization required above shall be filed in a ccordance with the procedures set forth in 14 CFR §212.10.

In view of the foregoing and all facts of record, we tentatively find and conclude that:

1. It is in the public interest to issue the applicant a n amended foreign air carrier permit in the form attached;

3 The applicant’s request for an amended foreign air carrier permit was summarized in t he Department’s published weekly list of applications filed. This notice described the authority sought and gave interested persons an opportunity to submit evidence and objections to the award of this foreign air carrier permit authority. As noted above , no answers were filed to the application.

4 The applicant has requested confidential treatment of its financial submissions, under the provisions of 14 CFR§302.12. Good cause having been shown, we will grant this request.

5 AirBridgeCargo states that it is 100% owned by Volga

- Dnepr Airlines LLC, a Russian entity that is a company of the Volga

- Dnepr Group. In turn, the applicant states that Volga

- Dnepr Airlines LLC’s reportable capital stock is held by seven different entities, all of which are 100% ow ned by citizens of the Russian Federation. AirBridgeCargo further states that, except with respect to its Vice President of Sales, who is a German citizen, all of its officers and key management personnel

are citizens of the Russian Federation.

6 On Febru ary 13, 2009, the United States and the Russian Federation agreed, ad referendum , to revised Annexes to the

U.S.

- Russia Air Transport Agreement and stated that, pending their entry into force, their respective aeronautical authorities intend to implement t he provisions of those Annexes on the basis of comity and reciprocity.

7 With regard to the scheduled all

- cargo authority tentatively granted herein, the applicant may exercise fifth

- freedom traffic rights only to or from beyond points listed in the Agreem ent or named by the Russian Federation

.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. T he applicant is substantially owned and effectively controlled by citizens of its claimed homeland;

4. The public interest requires that the exercise of the privileges granted by the amended permit should be subject to the terms, conditions, and limitati ons contained in the attached permit, and to such other reasonable terms, conditions, and limitations required by the public interest as we may prescribe;

5. The issuance of this foreign air carrier permit will not constitute a major regulatory action un der the Energy Policy and Conservation Act of 1975, as defined in 14 CFR §313.4(a)(1) of our regulations; 8

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

7. Our action with respect to this amended foreign ai r 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 61st 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.

In view of the above, and acting under authority assigned by the Department in its regulations, 14 CFR Part 385, we tentatively find that our actions are consistent with Department policy.

ACCORDINGLY,

1. We direct all interested persons to show cause why our tentative decision on the application o f AirBridgeCargo Airlines LLC, set forth above, should not be made final ;

2 . We grant the request of AirBridgeCargo Airlines LLC for confidential treatment of its financial submissions, consistent with the provisions of 14 CFR §302.12;

3. Any interest ed 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 thi s 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

concret e 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; 9

4

. If timely and properly supported objections are filed, we will give further considerat ion to the matters and issues raised by the objections before we take further action;

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

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

9 Because we are providing for the filin g of objections to our tentative decision in this order, we will not entertain petitions

for review of this order.4 5

. 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

6

. We will serve a copy of this order on AirBridgeCargo Airlines LLC , the Embassy of the Russian

Federation to the United St ates in Washington, D.C., the Federal Aviation Administration, and the U.S. Department of State (Office of Aviation Negotiations).

By:

PAUL L. GRETCH

Director

Office of International Aviation

(SEAL)

Appendices

An electronic version of this documen t is available on the World Wide Web at: http://www.regulations.govAppendix

Issued by

Order 2011

-

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.



### -------------------------------------------------------- PERMI T TO FOREIGN AIR CARRIER (as amended)



### ---------------------------------------------------------



### AirBridgeCargo Airlines LLC

A F oreign Air Carrier of the Russian Federation

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 foreign air transportation of property and mail as follows:

Scheduled foreign air transportation of property and mail between a point or points in the Russian

Federation

, on the one hand, via intermediate points, and Houston, T exas; New York, N ew Y ork; Atlanta, G eorgia ; and Chicago, Illinois, on the other hand, and beyond

Charter foreign air transportation of property and mail b etween any point or poi nts in the Russian Federation and any point or points in the United States

The holder shall also be authorized to engage in other charter trips in foreign air transportation, subject to the terms, conditions, and limitations of the Department’s regulatio ns 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 t reaty, 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 p ermit shall be effective on

________ , 20 11 . 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 i t was issued; (2) upon the effective date of any treaty, convention, or agreement or amendment, which shall have the effect of eliminating the bilateral right for the service authorized by this permit from the service which may be operated by airlines desi gnated by the Government of the Russian Federation (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 toany other carrier designat ed by the Government of the Russian Federation in lieu of the holder; or (4) upon the termination or expiration of the applicable air services agreement between the United States and Russia. However, clause (4) of this paragraph shall not apply if prior t o 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 Russia become parties.

The Department of Transportation has executed this perm it and affixed its seal on

______ , 20 11

.

By:

PAUL L. GRETCH

Director

Office of International Aviation 

### (SEAL)Foreign Carrier Permit 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, th e 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 appl icable 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 Internatio nal Principal Security Inspector (IPSI) to advise the IPSI 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 Ma nagement 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 equival ent 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 wi th 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 re spect 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 Un ited 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 purp ose 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, non scheduled, 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 su ch 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.

11/2006