UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on March 8

, 20 1 1

NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

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- 0 2 87

_______________________________________________________________________________________________ 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 : K ingfisher Air line s Limited (Kingfisher) Date Filed: Nov ember 2 3 , 20 10

, as supplemented January 21, 2011

Relief requested : Exemption from 49 U.S.C. § 41301 to engage in scheduled foreign air transportation of persons, property and mail between (1) points in India; (2) points in India and points in the United States (either nonstop or via intermediate points in third countries); (3) points in India and points in third countries; and (4) points in the United States and points in third countries

, by m eans of a code

- share agreement between Kingfisher and American Airlines,

Inc

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Applicant representative : Christopher Carlsen , 2 1 2

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- 3930 DOT analyst: Brett D. Kruger , 202

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- 8025

Responsive pleadings: None.

DISPOSITION

Action: Appr oved. Action date: March 8 , 20 1 1

Effective dates of authority granted: March 8 , 20 1 1 , through March 8 , 201 3

. Basis for approval (bil ateral agreement /reciprocity): United States

- India Air Transport Agreement.

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our standard exemption conditions (attached).

Special conditions/Remarks: Based on t he record in this case, w e found that the applicant is operationally and financially qualified to conduct its proposed operations

. With respect to the ownership and control of the applicant, the record indicates that the applicant’s Chairman, all of its N on

- Executive Directors, and all of its key management officials are citizens of India with the exception of one U.S. citizen. The record further indicates that the majority of Kingfisher’s shares are owned by United Breweries (Holdings) Limited (United Br eweries)

, an Indian company with 60.59% of Kingfisher’s shares ; and Dr. Vijay Mallya

, a citizen of India with 5.69% of Kingfisher’s shares. With respect to United Breweries, the record shows that it is majority owned by Watson Limited, a company of Maurit ius holding 21.19% of the United Breweries shares. Watson Limited is ultimately owned in equal shares by Mr. Jay Vallabh and Ms. Susanne

Val l abh, both citizens of Switzerland. The applicant states that no other individuals or entities own 5% or more of the shares of Kingfisher. To the extent a question may exist as to the ownership and control of the applicant, a waiver of our ownership and control policy is warranted in the circumstances presented, as there is nothing in the ownership and

control of the applicant that would be inimical to U.S. aviation policy or interests. We also note that the applicant is properly licensed by its homeland to perform the proposed services. Also, on March 2 , 20 11 , the FAA advised us that it

knows of no reason to wi thhold this authority.

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 with Department policy; (2) the applicant was qualified to perform its proposed operations; (3) grant of the authority was consist ent with the public interest; and (4) grant of t he authority would not constitute a major regulatory action under the Energy Policy 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.

1 See application of American and Kingfisher in Docket DOT

- OST

- 2010

- 0288 to engage in reciprocal code

- share operations.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 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 effecti ve 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 concernin g 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 r eferred 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 th e 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 Administr ation’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 requiremen ts 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 Depart ment 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. 160 5(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, in clude 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 cognizab le 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 Contract ing 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 r eporting 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 la ws 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.

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