## BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.
) 

### Amended Application of ) ) 

### Silk Way Airlines ) 

### ) Docket OST 

## 2007-28603 Docket OST 

## 2007-28604 for a foreign air carrier pennit pursuant ) to 49 U.S.C. 

## § 41302 and ) an exemption pursuant to 49 U.S.C. 

## § 40109 (c) ) to engage in cargo charter operations ) between Azerbaijan and the United States )


# ________________________________)
DECLARATION I, Shamsaddin Mirsalayev, state that Jam the Director ofSilk Way Airlines; that 1 am authorized to make 

## this Declaration on behalfofSilk Way Airlines; that I have read the attached amended application and exhibits and that the factual statements set forth therein are true and correct to 

## the best ofmy knowledge and belief; and that the copy ofthe Air Operator Certificate issued to Silk Way Airlines by the State Civil Aviation Administration ofthe Republic ofAzerbaijan included among the exhibits is a true and correct copy of such certificate. I declare under penalty ofperjury wtder the laws ofthe United States of America that the foregoing is true and correct.
Executed on February 

## 12. 2015



# ,,

## EXHIBIT SILK WAY

- 1 SILK WAY -2 SILK WAY

- 3 SILK WAY

- 4 SILK WAY -5 SILK WAY -6 SILK WAY

- 7 SILK WAY

- 8 SILK WAY -9 SILK WAY -10 SILK WAY

- 11 SILK WAY

- 12 SILK WAY

- 13 SILK WAY

- 14 SILK WAY -15 SILK WAY

- 16 SILK WAY

- 17 SILK WAY -18 LIST OF EXHIBITS
CONTENTS Corporate Information & 

## Government Oversight Service Proposal Officers , Directors , and Key Personnel Ownership Information Stockholding of Officers, Directors , and Key Personnel Relationship with the Government ofAzerbaijan Insurance Coverage Operator's Certificate Operating History Aircraft Inventory Maintenance Arrangements Agreements with Other Carriers Affecting Service Proposal Financial Data Summaries Financial Projections Governmental Financial Assistance Bilateral Agreement & 

## Designation Safety & 

## TariffViolations Waiver of Liability Limits Under Warsaw/Montreal Convention

## EXHIBIT SILK WAY

- 1

CORPORATE INFORMATION & 

## GOVERNMENT OVERSIGHT
I. 

## Background Information "S ilk Way Airlines" Limited Liability Company ("Silk Way Airlines" LLC, "Silk Way Airlines " or "Silk Way") is a limited liability company founded and registered as a legal entity
on August 16, 2001, under the applicable laws of Azerbaijan (Registration Certificate Number 973 , dated August 16, 2001). Silk Way holds an Air Operator' s Certificate {AOC-008) most recently issued to it on March 19, 2014, by the State Civil Aviation Administration (SCAA) of the Republic of Azerbaijan. Silk Way is registered with the International Civil Aviation Organization " ICAO " (ICAO Code: AZQ), is an associated member oflATA {lATA Code: ZP*), and a trustee member ofThe International Air Cargo Association {TIACA). Silk Way specializes in cargo transportation services using a fleet of eleven (11) aircraft, including: six (6) Ilyushin IL-76TD , three (3) Antonov AN-12 aircraft, and two (2) Ilyushin IL76-TD-90 aircraft with noise chapter 4 certified engines. Silk Way is a major operator in commercial air cargo services in Azerbaijan, both on domestic and international air routes. Silk Way's annual revenue for years 2011, 2012 and 2013 , respectively was USD $465,249,195.50, USD $ 463,322 ,870.60; and USD $ 436 , 579,801.55. Silk Way is an Azerbaijan flag carrier, with management and operational control vested in Silk Way ' s officers and key management personnel , who are all nationals of Azerbaijan. A list of such personnel can be found in exhibit SILK WAY

- 3
. Silk Way is governed by the General Meeting of its holding members and its Directors. The General Meeting, based on Silk Way's Charter, has the authority to amend the Charter,

## EXHIBIT SILK WAY

- 1 establish the executive bodies of the company, approve annual financial statements of the company, make decisions with respect to its reorganization or liquidation , establish subsidiaries , branches and other affiliates and representative offices, and other key goveming decisions. The General Meeting delegates day to day operational management decision-making to the General Director and key management personnel subject to supervision and review by the General Meeting and Board Members (Directors). A li st of Silk Way ' s Directors can be found in exhibit SILK WAY

- 3.
II. Specific Corporate Information
a. Name and Address ofApplicant:

" Si lk Way Airlines " LLC Registered Address: 103 Nizami Street, Sabail, AZ-1010, Baku, Azerbaijan Postal Address: Heydar Aliyev Intemational Airport, AZ-1044 , Baku, Azerbaijan
b. Corporate Form & 

## Country of Organization:
As noted above, Silk Way Airlines is a Limited Liability Company organized under the laws ofAzerbaijan and incorporated on August 16, 2001.
c. The address of the govemmental authority having regulatory jurisdiction over Silk Way's air transport operations is: State Civil Aviation Administration ofthe Republic ofAzerbaijan 11 Azadlig Avenue, Baku, AZ-1095 , Azerbaijan

## EXHIBIT SILK WAY

- 2

SERVICE PROPOSAL
Silk Way requests a foreign air carrier permit authorizing it to engage in charter cargo air transportation operations (1) between any point or points in Azerbaijan and any point or points in the United States; and (2) between any point or points in the United States and any point or points in a third country or countries subject to pertinent national , bilateral and international rules and regulations
. Silk Way intends to begin operating the requested services immediately after the Department issues the requested permit. Silk Way intends to operate primarily its Ilyushin IL

-76TD-90 type aircraft for its proposed services. Silk Way may further expand the proposed services using other types of aircraft in the future.

## EXHIBIT SILK WAY

- 3 OFFICERS, DIRECTORS , AND KEY PERSONNEL
The following are the names , residence addresses , and business addresses of all Silk Way's key management personnel as defined in Section 211.20(d) of the Department ' s Regulations. All key management personnel are citizens of the Azerbaijan Republic. Silk Way ' s Board of Directors consists of citizens ofthe Azerbaijan Republic. The individuals listed below are not related by blood or marriage. Because Silk Way has been providing direct air service for more than one year, it is not necessary to summarize the business experience of its directors, officers, or key management personnel. See 14 C.F.R. 

## § 211.20(d). Key Management Personnel Title(s) Name & 

## Home Address Business Address Home Address Director Shamsaddin Mirsalayev Heydar Aliyev International A. A lasgar Street 4 , Airport, AZ1 044 , 

## Baku, app. 51 Azerbaijan Baku , Azerbaijan Deputy Director Sahib Kazimov Heydar Aliyev International R. Mammadov Street Flight Operations Airport, AZ1044, 

## Baku , 22,app.69 Azerbaijan Baku , Azerbaijan Deputy Director Rahim Is lamov Heydar Aliyev International "D" Gune shli 6, app. 3 1 

## Ground Operations Airport, AZ 1044, 

## Baku, Baku, Azerbaijan Azerbaijan Deputy Director Mu staf a Azimov Heydar Aliyev International N. Narimanov Street 205, 

## Commercial Airport, AZ1044, 

## Baku, app. 18 

## Azerbaijan Baku , Azerbaijan Adviser to Director Eldar Gambarov Heydar Aliyev International Topchubashev Street on Flight Safety Airport, AZl 044 , 

## Baku, 21 , app. 17 Azerbaijan Baku, Azerbaijan ChiefPilot Azer Babayev Heydar Aliyev International Amirjan district, Airport, AZ1044, 

## Baku , Damiryol station 1 , Azerbaijan app. 17 Baku , Azerbaijan ChiefPilot on Rafail Abdullayev Heydar Aliyev International Xandan Street 42B , personnel training Airport, AZ1 044, 

## Baku , app. 74 Azerbaijan Baku, Azerbaijan Adviser to Director Farid Aliyev Heydar Aliyev International Alizada Street 36A, on Quality and Airport, AZl 044 , 

## Baku , app.22 Aviation Security Azerbaijan Baku , Azerbaijan

## EXHIBIT SILK WAY

- 3 ChiefAccountant Marina Mordovskaya Hey dar Aliyev International Bina district, Kolxoz Airport, AZI 044 , B aku, Street 35 , app. 15 Az erbaijan Baku, Azerbaijan

Supervisory Board Title(s) Name Business Address President Zaur Akhundov " SW Holding Limited L iabi lity G. Gamidov Street, 3161 , Company" home 31, Baku, Azerbaijan Heydar Aliyev International Airport, Baku

- Azerbai jan Director Emin Alakparzadeh , " Silk Way Development" Limited Aga Neyrnatulla Street, 23 , Liability Company apt. I 01 , Baku, Azerbaijan Heydar Aliyev International Airport, AZ1 044, Baku, Azerbaijan

## EXHIBIT SILK WAY

- 4

OWNERSHIP INFORMATION Currently, Silk Way Airlines LLC is 60% owned by " Silk Way Holding " Limited Liability Company, a company formed and existing under the laws of Azerbaijan , and 40% owned by " Silk Way Development" Limited Liability Company, a company formed and existing under the laws ofAzerbaijan. In turn, 

## " Silk Way Holding " Limited Liability Company is 100% owned by " Silk Way Development" Limited Liability Company; and " Silk Way Development" Limited Liability Company is 95% owned by Mr. Zaur Akhundov, a citizen of Azerbaijan , and 5% owned by "S ilk Way Investment" Limited Liability Company , a company formed and existing under the laws of Azerbaijan and 100% owned by Mr. Zaur Akhundov, a citizen of Azerbai jan
. Effective control of Silk Way Airlines LLC is vested in its Management and Supervisory Board. Supervisory Board of Silk Way Airlines LLC consists of two members: Mr
. Zaur Akhundov, President and Mr. Emin Alakparzadeh, Director, both citizens of Azerbaijan
. Effective operational control of Silk Way is vested in its Management and Supervisory Board, as set forth in exhibit SILK WAY

- 3.

## STOCKHOLDINGS OF OFFICERS, DIRECTORS. AND KEY PERSONNEL EXHIBIT SILK WAY

- 5

Silk Way officers, directors, and key personnel do not hold any interest in any U.S. carrier. Silk Way Airlines LLC is a 100% owner of Silk Way West Airlines LLC , another Azeri AOC holder specializing in cargo air transportation utilizing Boeing 747-8F equipment. Mr. Akhundov , President of Silk Way, holds stock in Silk Way West Airlines LLC; and Mr. Mirsalayev, Director of Silk Way, is a Board Member of Silk Way West Airlines LLC. Silk Way Airlines LLC is also a 44.9% owner ofSW Italia, and Italian AOC holder.

## EXHIBIT SILK WAY

- 6

RELATIONSHIP WITH THE GOVERNMENT OF AZERBAIJAN
As noted in exhibit SILK WAY

- 1 , Silk Way is a Limited Liability Company organized under the laws of Azerbaijan. In accordance with the applicable laws of the Republic of Azerbaijan, Silk Way is a separate legal entity having an independent balance sheet, separate property, and the rights to conclude contracts , acquire real , personal and intangible property rights , and bear independent liability. Silk Way acts under free-market principles whereby the State is not liable for any commitments of Silk Way, and Silk Way is not liable for the obligations of the State. Therefore, Silk Way has the authority to independently control its managerial decisions , and its officers , directors , and key personnel are charged with, and implement, that responsibility.

## EXHIBIT SILK WAY- 7
mSURANCECOVERAGE
Silk Way's insurance coverage meets the requirements of 14 C.F.R. Part 205. Its aircraft
are insured by " Silk Way Insurance" OJSC , and Azeri insurer, which in tum underwrites its policy through other insurance companies worldwide, such as JLT Specialty Limited. An executed copy ofOST Form 6411 (Certificate oflnsurance) from Silk Way 's insurer is attached hereto .

# 0 AGENCY DISPLAY OF ESTIMATED BURDEN The public reporting burden for th is COllection of information Is estinaled to 8llef'8ge 30 minutes pe- response. If you wish to comment on the accuracy of the estimate or make suggestions for reducing th is burden,**~ease** direct your comments to: U
.S
. Department ofTr..1sportatlon, Office ofAviation Analysis. X-56, 400 7 St
.. S W

, Washington
. D
.C
. 20590
. 0 fiioe of the Secretary NOTE : For in famation on**where~** file completed cq>ies of th is form , see FILING INSTRUCTIONS beloW
. o f Transportation OMB No
. 2106-0030 Elq)ires**2-2~** 

### U
.S. FOREIGN AIR CARRIERS CERTIFICATE OF INSURANCE POLICIES OF INSURANCE FOR AIRCRAFT ACCIDENT BODILY INJURY AND PROPERTY DAMAGE LIABILITY FlUNG INSTRUCTIONS: File a signed origina l of this form with the Federal AW!Iion Administration
. Air Transportalion D iv
. . AFS-260, 800 Independence Ave., SW ., Washington , DC 20591
. (See EXCEPTION belo>N
. ) EXCEPTION: If Section 2
. A
. is filed in because the insured is a Canadian Charle r A i' T axi Operator, fi lean orig inal ofth is l oon with the U
.S
. Depa1ment of Transportation , Special Authorities D iiAsion (X-46), 400 

### t" Streel SW
. Washing ton , D
. C

. 20590 (Please type information, except signatures.) THIS CERTIFIES THAT: SILK WAY INSURANCE QJSC (Name of Insurer) has issued a policy or policies of Aircraft Liability Insurance to SILK WAY AIRLINES LIMITED and/or SILK WAY WEST AIRLINES,**1Q~** Nizami**~jr.,** Baku,**Az~rb§!ijan,** AZ1000 ( Name, address and FAA Certificate number of I n sured Foreign Ai r Carrier) effective from until ten (10) days after written noti ce from the insurer or carrier of the intent to terminate coverage is received by the Department of Transportation. NOTE : Part 205 of the Department's Regulations does not allow for a predeterm i ned term i nation date , and a certificate showing such a date is unacceptab le . 1
. The Insurer (Check OneJ : 

# 0 is licensed to issue aircraft insurance policies in the United States ; 

### cgJ is licensed or approved by the government of AZERBAIJAN to issue a i rcraft insurance policies ; or 

# 0 is an approved surplus line insurer in the State(s) of 2
. The insurer assumes, under the policy or policies listed below , aircraft accident liability insured to minimums at least equal to the following during operation , maintenance, or use of aircraft In ' foreign air transportation' as that tem1 i s defined i n 

### 49 U
. S
. C
. 40102
. (QQme!§.l§**~Q12 i£!J,ble** **~~ti2!.!** A B Qr 

### Q**~!2,w) :**  A
. CANADIAN CHARTER AIR TAXI OPERA TORS WITH PART 294 AUTHORITY ONLY The aircraft covered by this policy have : (1) 30 or fewer passenger seats and a maximum payload capaci ty of 7,500 pounds or less : and/or (2) a maximum authorized takeoff weight on wheels of no mo r e than 35 , 000 pounds
. (Com plete separate or**com/},in~!l** coverage**a~** appropriate) : 

## 0 Separate Coverages : Mi n!mumUmiJ. POiic'{,NQ
.**T~ofLieb it'{,** **E~~h** person Each Occurrf},nce Combined Bod i ly Injury (Excluding Passengers other than cargo attendants) and Property Da mage Liabili ty $75 ,000 $2 ,ooo ,ooo•(see nae) Passenger Bod ily Injury $75 ,000 $75 ,000 x 75% of total number o f passenger seats installed in ai r craft 

# 0 Combined Coverage: This comb i ned coverage is a s i ng le li mi t of l iabi lity for each occu rre nce at least eq ual to t he r equ i red mi nimums stated above for bod i ly injury (excludi ng passengers), property damage, and passenger bodily injury. Policy No
. Amount of Coverage U
.S
. Dollars 

## 0 This pol icy covers CARGO operations only and e xcludes passenger l iab ili ty i nsurance . NOTE: If the aircraft covered by this policy have more than 30 passenge r seats or more tha n a maximum payload capacity o f 7 , 500 pounds , the minimum lim i t per occurrence shall be $20,000 ,000
.OST Form 64118. FOREIGN AIR CARRIERS OPERATING SMALL AIRCRAFT The aircraft covered by this policy are SMALL AIRCRAFT (i.e., with 60 or fewer passenger seats or with a maximum payload capacity of 18 ,000 pounds or less)
. (Complete separate orcombined coverage as appropriate) : 

# 0 Separate Coverages : Minimum Lim it PolicvNo. Type ofLiability Each person Each Occurrence Combined Bodily Injury (Excluding Passengers other than cargo attendants) and Property Damage Liability $300 ,000 $2,000,000 $300 ,000 x 75% of total number of Passenger Bodily Injury $300,000 passenger seats installed in aircraft 

# 0 Combined Coverage : This combined coverage is a single limit of liability for each occurrence at least equal to the requi red minimums stated above for bodily injury (excluding passengers) , property damaged, and passenger bodily i njury
. Policy No. Amount of Coverage U.S. Dollars 

# D This policy covers CARGO operations only and e xcludes passenger liabil ity insurance
. C. FOREIGN AIR CARRIERS OPERATING LARGE AIRCRAFT The aircraft covered by this policy are LARGE AIRCRAFT (i.e .• with more than 60 passenger seats or with a maximum payload capacity of more than 16 ,000 pounds)
. (Complete separate orcombined coverage as appropriate): 

# D Separate Coverages : Minimum Limit Policy No. Typ e ofLiability Each person Each Occurrence Combined Bodily Injury (Excluding Passengers other than cargo attendants) and Property Damage Liability $300,000 $300,000 $20 ,000,000 $300,000 x 75% of total number of Passenger Bodily Injury passenger seals installed in aircraft**~** Combined Coverage : This combined coverage is a single limit of liability for each occurrence at least equal to the required minimums stated above for bodily injury (excluding passengers)
. property damaged , and passenger bod ily injury
. CO MPULSORY INSURANCE Policy No J51308087 Amount of Coverage LI M ITS AS SHOWN ABOVE U
. S. Do ll ars 

# D This policy covers CARGO operations only and excludes pa ssenger liability insurance
. 3
. The policy or policies listed in th is certificate insure (s) (Check One) :**~** Operations conducted with all aircraft operated by the insured 

# D Operations conducted with the following types of aircraft : . 

# D Operations with the following aircraft : (Use additional page i f necessary) Make and M ode l FAA or Foreign F lag Registration No
.

4
. Each policy listed in t h is certificate meets or exceeds the requireme nts in 14 CFR Part 205. 

### SILK WAY INSURANCE OJSC JL T SPECIALTY LIMITED (Name ofInsurer) (Name ofBroker, ifapplicable) 55, Z
.Aiiveva sir. THE ST BOTOLPH BUILDING. 138 HOUNDSDITCH {Address) (Address) Baku
. Azerbaii an, AZ1010 LONDON EC3A 7AW
. (City , State, Zip Code) (City , Stat e , Zip Code) Nivazi lmanov B
.J Marler- AUTHORISED SIGNATORY Cont act (per son who can verify the e ff ect

iv

eness of the coverage) (Officer or authorized representative ) 0207 466 1 377 0207 466 1444**--~·~ 99~4~1~2~5~98~3~8~5~0~** **~~ ~~** **-----·~9~9~4~12 5~9~8~3~8~02~~** **----** (Area Code, Phone Number ( Area Code, Fax Number) ( Area Code , Phone Number) (Area Code, Fax Numb er) 

# 1afllj Hor/er
(Signature) 9 Apri l. 2014 ( Date)

## EXHIBIT SILK WAY

- 8 OPERATOR'S CERTIFICATE
A copy of Silk Way's current Air Operator' s Certificate is attached hereto. Silk Way's Air Operator's Certificate (AOC-008) was most recently issued to it on March 19, 2014, by the State Civil Aviation Administration (SCAA) of the Republic of Azerbaijan. The Air Operator' s Certificate grants Silk Way the right to operate domestic and international commercial air services subject to the oversight of the SCAA. Subject to compliance with the national requirements and regulations of the Civil Aviation Authority of Azerbaijan, Silk Way's Operator' s Certificate is routinely extended every two years.

### lstismarct sertifikatmm 

### N!! AOC-008 OOvva<b olma mOddati: 19.03.2016


### Air operator certificate #: 

### AOC- 008 Expitydate: March 19
. 2016

### tSTtSMAR~I 

## SERTiFiKA TI I 

## AIR OPERATOR CERTIFICATE Dovlat Mnlki Aviasiya Administrasiyast/ State Civil Aviation Administration lstismarvmm adt:
.. Silk Way**vi irk:lt** **"** 

### MMC lstismarymm Onvaru: Heydor 81iyev**Beyn~lxalq** 

### Aeroportu, AZ1044, 

### Bak1**~hari, ~rbaycan**  

### Respublikast Telefon: 

### (+ 994 12) 437 47 57 Faks: (+ 

### 994 12) 493 38 

### 59 Elektron Onvam: silkwayltd@silkwayltd.com 

### Operator name: " Silk W ayA irli nes · · LLC Operator address: Heydar Aliyev International Airport , AZ/044 , Baku 

### city, the Republic of Azerbaijan Phone: ( + 

### 994 12) 437 47 57 

### Fax: (+ 994 12 ) 493 38 59 E-mail:**silkwayltd~ilkwayltd.** 

### com lstismar modd:Jti arzinda 

### tacili alaqa: Telefon: 

### (+ 994 77) 888 91 48 Fales:(+ 994 12) 437 47 94; elektron Onvam : silkway.ops@silkwaltd
.com Operativ 1'00barlikd3 

### tacili alaqa saxlamaq**~On** 

### malumat**Uyu~larm** 

### lcrasJ lizr:l 

### Talimatm A Hissasindal.l02.2. paraqmfinda**yerl~irilib** 

### Operationalpoints of contact: Phone : ( + 994 77) 888 9/48 

### Fax: ( + 994 12) 43 7 47 94: e-mail: silkway
. ops@silkwaltdcom Contact details, at which operational management can be conta cted withouJ undue delay are listed in the Operations Manual Part A. Cha ter 1 ra a h 1
. 102
. 2 Bununla tasdiq edilir ki, " Silk Way Aviasirkati" MMC-na istismar mahdudiyyatl:nind:l gOstarilan**~artlarla Uv~lann**  

### yerina yetirilmasina dair talimat" a V3 

### Azarbaycan Respublikasmm " Aviasiya haqqmda" Qanununa mOvafiq olaraq kommersiya hava**d~1malanm** 

### yerina**yetinn:~ya** 

### i= verilir.

Date ofissue: March 19,2014 Vazifasi 

### I Title : Direktorun mOavini 

### I De 

### ut Director

## EXHIBIT SILK WAY

- 9 OPERATING HISTORY
Silk Way Airlines was founded and initially certified on October 9 , 2001. Silk Way is an operator certified in the Azerbaijan Republic, and is an Azerbaijan flag carrier
. The airline operates ad hoc cargo charters and charter programs around the world with Ilyushin IL- 76TD-90, Ilyushin IL-76TD and Antonov AN-12 all

-cargo aircraft. Beginning from May 07 , 2007 Silk Way Airlines has operated new IL-76TD-90 aircraft equipped with the PS-90A-76 engines that comply with the provisions of standards of Aviation Rules AR-36 , Stage IV and ICAO Annex 16 , Volume 1 , Chapter 4 (environmental protection). The airline operates ad hoc cargo charter flights and charter programs to such destinations as Dubai (U
.A.E.), Urumqi (PRC), Kabul (Afghanistan), Kandahar (Afghanistan) , Baghdad (Iraq) , Istanbul (Turkey), Tbilisi (Georgia) , Dushanbe (Tajikistan) , Luxembourg (Luxembourg) , Hahn (Germany), Neubrandenburg (Germany), Lyn ham (United Kingdom), Chateauroux (France), Bratislava (Slovakia) , Eindhoven (Netherlands) , and Tel Aviv (Israel)
. Overall, Silk Way operates to over 50 destinations worldwide
. Over the years ofits operations , Silk Way has consistently operated charters in support of the US Transcom and Air Mobility Command, as well as other ISAF program flights for transportation ofrelief and other goods into and out ofAfghanistan. Silk Way has broad experience in the transportation of such cargo as oil well equipment, construction materials and heavy industrial equipment and machinery, sea and 20-foot containers, vehicles and spare parts , humanitarian and relief cargo, food, entertainment equipment, and large shipments of general cargo, and hazardous materials (carried in accordance with lATA Dangerous Goods Regulations).

## EXHIBIT SILK WAY

- 9 Silk Way is an active and generous contributor to the development of the Azerbaijani air cargo transportation industry and its infrastructure
. In November of 2004 Silk Way completed the construction of , and commissioned, a new apron (134 ,907 m2 ) 

## and ten (1 0) aircraft parking lots at Baku 's Heydar Aliyev International Airport. Silk Way is also a founder of the Baku Cargo Tenninal (BCT) at the Heydar Aliyev Internat ional Airport. Built in 2005 , the BCT employs state ofthe art operation, inf01mation and management technologies. In 2006 Silk Way started the construction project of its own Maintenance Centre " SILK WAY Technics" which now performs all types of aircraft maintenance at the Heydar Aliyev International Airport, Baku (Republic of Azerbaijan)
. Silk Way is a parent company of its I 00% owned subsidiary, Si lk Way West Airlines, a separate AOC holder specializing in cargo air transportation using Boeing 747

-SF, and Boeing 747-400F equipment.

## EXHIBIT SILK WAY

- 10 AIRCRAFT INVENTORY
Silk Way currently operates six (6) Ilyushin IL-76 aircraft, three (3) Antonov AN-12 aircraft, and two (2) modernized Ilyushin IL-76

-90 aircraft as listed below. All aircraft operated by Silk Way are registered in Azerbaijan. Infonnation regarding lessors of the leased Silk Way aircraft is listed below
. Aircraft Tvoe & 

## Serial No. Basis of Use Registration No
. IL-76TD , 0053460820 Owned 4K-AZ19 IL-76TD , 05184 Leased from International Handling Company Ltd 4K-AZ31 IL-76TD , 1043419632 Leased from International Handling Company Ltd 4K-AZ40 IL-76TD , 1093420673 Leased from International Handling Company Ltd 4K-AZ41 IL

-76TD, 0093499982 Leased from AL-DANA (FZE) 4K

-AZ60 IL-76TD, 1023412411 Leased from Cargo Airline of AZAL 4K-AZ61 IL-76TD-90, 2073421708 Leased from International Handling Company Ltd 4K-AZ100 IL-76TD-90, 2083421716 Leased from International Handling Company Ltd 4K-AZ101 AN

- 12BK, 8345605 Owned 4K-AZ23 AN-12BK, 9346308 Leased from Shovkoviy Shlyax 4K-AZ63 AN-12BK, 7345203 Leased from Euro-Asia Air Services FZE 4K-AZ63

LESSOR REGISTERED ADDRESS Country of Incorporation 

## International Handling Company Craigmuir Chambers , Road Town, 

## UK Ltd P.O
. Box 71 , British Virgin Island AL-DANA (FZE) NEZ-14 , P.O. Box 9540, Shatjah, UAE UAE Cargo Airline ofAZAL Heydar Aliyev International AZERBAIJAN Airport, AZ-1044 , Baku. Azerbaijan Shovkoviy Shlyax 01001 , 13 Kikvidze street, Kiev, UKRAINE Ukraine Euro-Asia Air Services FZE Dubai Airport Free Zone, P .O. Box UAE 54787 , Dubai, UAE

## EXHIBIT SILK WAY

- 11

MAINTENANCE ARRANGEMENTS
Silk Way will utilize primarily Ilyushin IL-76TD-90 aircraft or such other aircraft as it may have or acquire to conduct the proposed operations. Silk Way ' s aircraft inventory is set forth in exhibit SILK WAY

- 10. Line and base maintenance for all Silk Way's aircraft is performed by "Silk Way Technics " at Heydar Aliyev International Airport/Baku, Azerbaijan, a maintenance organization approved under the applicable aviation regulations of Azerbaijan (AAR-145)
. Azerbaijan 1s a contracting state to the Convention on International civil Aviation (" Chicago Convention")
. Silk Way's aircraft are maintained in compliance with ICAO Annexes 1, 6 (Part I), and 7. In addition , Silk Way' s aircraft conform to respective type designs approved by the Interstate Aviation Committee and have been issued civil airworthiness certificates in accordance with the provisions of ICAO Annex 8.

## EXHIBIT SILK WAY

- 12 AGREEMENTS WITH OTHER CARRIERS AFFECTING SILK WAY ' S SERVICE PROPOSAL
Silk Way Airlines does not have any agreements with other carriers that may affect its services proposed by this application.

## EXHIBIT SILK WAY

- 13 FINANCIAL DATA SUMMARIES Silk Way is providing the Department with abbreviated audited statements for years 2011 , 2012 , and 2013
. Silk Way respectfully requests that in addition to the attached statements, the Department consider its extensive operations over the past years as sufficient to demonstrate the capability of Silk Way to operate to the United States.

# Azgrbaycan 

# Respublikast Bakt**~hgri** 

# "M&J accuracy consulting" NINIC 

# M&J 

# y

STATEMENT 

# Azerbaijan Republic Baku City 

# "M&J accuracy consulting" LTD



# ---------- 

# -

On Financial and Economic Condition of a Civil Aviation Enterprise Baku
. 31 October, 2012 Name of the Enterprise: " Silk Way A irlines'' Postal Address: Heydar Aliyev International Airport, All 044 , Baku, Azerbaijan. Tel.: (+994 12) 437 47 57 ext. 4119; Fax: (+994 12) 493 38 59. Examined: a) "M&J accuracy'' consulting 

## LTO , Baku, Azerbaij an. Reached Conclusion: I. Financial and economic condition indices of the Enterpri se reports of 3 1.12 .20I I testify that the CA ENTERPRIS E COMPLIES WITH THE REQUIREMENTS TO THE STATED OPERATIONS. 2. Basic indices of operations , findings and observations resulted from the analysis of the fmancial and economic condition of theCA Enterprise: 2.1. The Ent erprise revenue by 31.12.20 II comprised 365 , 918 ,492.26 AZN which equals to 465 ,249 , 195.50 USD at the Central Bank exchange rate. The Enterpri se operations in year 20 II 

## were efficient. Net income in 20 I I 

## constituted 25,721 , 697.29 AZN or 32,704 , 001.64 USD. 2.2. The continued correctly carried policy of the Enterprise Management to adopt a new strategy, to expand geography of the company flights and to boost new schedu led and charter flights , both domestic and international , by the operated aircrafts. As of 3 1 .12.20 II the Enterprise had no arrears of wages, of budget or social funds
. '·Si lk Way Airlines" reports and subs tantiated forecast testify to the ability of the Enterprise to accumulate and su stain sufficient fund s to ensure safe aircraft operations in compl iance with the rules and requirements in the field of Civil Aviation and to keep up stable and efficient business. Director, "M&J accuracy" consulting L ,. TD 

# ::f1 k
....,. · ' ./( ,. i E. Jafarov/ ;> 

## 31 October, 2012 Signature 

# ---**~**

# Azarbaycan Respublikas1 Bakt**~hari** 

# "M&J accuracy consulting" I\IINIC 

## STATEMENT 

# Azerbaijan Republic Baku City 

# "M&J accuracy consulting" LTD



## On Financial and Economic Condition of a Civil Aviation Enterprise Oaku
. 22 July. 2014 Name ofthe Enterpri se : ·' Si lk Way Airlines ·· Po stal Add r es s: Heydar Aliyev fnt ernational A1rport. AZ 1044
. Baku. Azerbaijan
. rel. :(+994 12)4374775ext.41 19 : 

## ra x: (+994 12) 49 7 10 3 8 Examined: a)
..M&J accuracy.. cons ulting 

## L TO. Baku
. Azerbaija n . Reached Conclu s ion: I. 

## Financial a nd economic condition indices of the Enter prise report s of 31.12 .20 12- 3 1
. 12.2013 tes tif y that theCA ENTERPR ISE COMPLIES WTTH 

## THE REQUIREME TS 

## 1"0 THESTATEDOPERA fiO 1

## S
. 2. 

## Bas ic indices of operations. finding s and observation s res ulted from the a nalys is of the financial and economic condition of theCA Enterpri se : 2.1. The Enterpri se revenue by 3 1.1 2.20 12 comprised 363 708 453.42 AZ which equal s to 46 3 322 870
. 60 USD at the Central Oank exchange rate : by 

## 31. I

## 2
.20 13 comprised 342 496 854.3 2 AZN which equa l s to 436 579 801.55 U D at the Central Bank exchange rate . The E nter pri se operations in years 20 12-2013 were efficient. Ne t income in 20 12 con stituted l 67J 41 5
. 33 1\ZN 

## or 2 13 1 739.27 USD: net incom e in 20 13 constituted 3 884 007 .5 7 AZJ\' or 4 95 0 933.80 USD
. 2.2. The continued conectl ) carried policy of the Enterpri se Management to a dopt a new 

## strategy. to expand geography of the company tl ights and to boost new 

## schedu l ed and charter t l ights. h ot h dome stic and international. by 

## the operated ai rcrafts. J\ s 

## of 3 1
. 12.20 13 the Enterpri se had no arrears of wages, ofbudge t or social fund s.

Director.


# ..M&.I :m;sn g

LTD
Signature I E..Ia 

## 22 Jul ). 2014

### ACCOUNTING BALANCE SHEET SILK WAY AIRLINES

Azyenimanat (AZN) 31 December, 2011 DATA .lJ.AHHblE at the beginning of the year (AZN) 1 2 3 

### I. ASSETS 

### J. BHE060POTHblE AKTHBhl Intangible Assets HeMaTepuaJJbHbte aKTHBbt 793,407.78 Investments Fixed assets OcHOBHbte cpe.ncTBa 208,082,197.61 Long-term investments .ll.onrocpo'IHbte 16,556,248.44 «flHHaHCOBble BJJO)KeHHSI Capital investments to fixed KamtTaJJosnomeHHSJ B 3,153,949.69 assets OCHOBHble cpe,nCTBa TOTAL FOR SECTION I HTOrO llO PA3.li.EJIY I 228,585,803
. 52

II. CURRENT ASSETS II. 060POTHbiE AKTHBbJ Stocks 3anacbl 39,078,227.83 Inward VAT BHYTPCHHHH H.LJ.C 

# - .lJ.eOHTOpCKaSJ Ja,noJJmeHHOCTb ( nJJa TemH Accounts receivable (over no KOTOpOfi OmH,naJOTCSI



# - than 12 months) 6onee 'leM 'lepeJ 12 MCCSIUCB DOCJJe OT'IeTHOH ,naTbt) ,lleOHTOpcKaSJ Accounts Receivable (due less Ja,nonmeHHOCTb (nJJaTemH than 12 months) no KOTOpOii O)KH,naJOTCSI B 105,369,610.91 Te'leHHe12 MeCSJUeB IIOCJJe OT'IeTHOH ,naTbl) flpO'IHe aKTHBbl 107,589 ,058
.92 Cash .ll.eHemHbJe cpe.ncTsa 2,198,837.45
TOTAL FOR SECTION II HTOrO 

# no PA3.li.EJIY II 254,235 , 735
. 11 BALANCE 6AJIAHC 482 821 , 538
. 63
LIABILITIES OACCHB at the end of the year (AZN) 4
760,372.04
206,093,727.49

39,529,609.65

9 ,399,495.48 255 , 783,204.66

41,346 , 956.77



## -



# -

116,337,492
. 15
201,960,479.63 2,016,146.00 361,661,074
.55 617, 444,279.21

### Ill. STOCK AND Ill. KAnHTAJI H RESERVES PE3EPBbl Share capital YcTaBHLiii tcannTaJl 

### 24,049 ,400.00 24,050,000.00 Surplus Capital )lo6aBO'IHbiH KaUHTaJl Inward investments and IJ.CJl CBble**~HHaHCIIpOBaHHC** 

# - donations II 

### UOCTYDJlCHHSI Retained Earnings (carried Hepacnpe.lleJlcunast 

### 28,415,763.79 40,006,887
. 77 forward) npHfibiJlb npOWJlbiX JlCT Non covered Loss HenoKpblTbiH y6LITOK



# - (carried forward} npOWJlbiX JlCT Retained Earnings (current Hepacnpe,lleJleunast 

### 12,512,256.21 18,528,919.60 year) npn6btJlb OT'ICTIIOrO rO,lla Non covered loss (current HenoKpblTbJH y6LtTOK



## - 

# - year) OT'ICTHOrO ro,lla TOTAL FOR SECTION III HTOfO 

# no PA3)l.EJIY III 

### 64,977,420.00 82 , 585,807.37

IV. LONG-TERM IV. J!OJifOCPOlfHbiE LIABILITIES 06JI3ATEJibCTBA Loans 3aCMHbte cpe,llCTBa 

# - 

# - Other long-term obligations llpO'IliC .llOJlrOCpO'IHbiC



# - 06st3aTCJlbCTBa
TOTAL FOR SECTION IV HTOfO llO PA3)l.EJIY IV 

# -

V. SHORT-TERM V. KPATKOCPOqHhlE

LIABILITIES llACCHBbl Loans 3aeMHbiC CpC,llCTBa Accounts Payable Kpe.lliiTopctcast 

### 173,954,929.51 225 , 142,389.69 3a,llOJl'lKeHHOCTb Settlements with founders Pac'leTbt c y'lpe,llnTeJlstMH Deferred income )l.OXO.llbl**fiy.lly~HX** 

### 87,159,503.81 80,352,200.23 nepliO,llOB Reserves of deferred expenses PeJepBbJ npe.llCTOHLQHX 

### 3 ,664,729.48 229,363,881.92 paCXO,llOB TOTAL FOR SECTION V
. HTOrO llO PA3)l.EJIY V. 

### 264,779, 162.80 534,858 ,471
. 84 BALANCE 6AJIAHC 

### 329,756 582.80 617 444 ,279
. 21

### ACCOUNTING BALANCE SHEET SILK WAY AIRLINES

Azyenimanat (AZN) 31 December, 2012 DATA )l.AHHbiE at the beginning of the year (AZN) 1 2 3 I. 

### ASSETS I. 

### BHEOl>OPOTH bJE AKTHBbJ Intangible Assets HeMaTepuaJJbHbJe aKTH8bJ 760,372.04 Investments Fixed assets 0CH08HbJe cpeJlCT8a 206 ,093,727.49 Long-term investments )l,oJJrocpo<tHbJe 39,529,609.65 «JlHHaHC08bJe 8JJO)KeHHSI Capital investments to fixed KanHTaJJ08JJOmeuHSI 8 9,399,495.48 assets OCH08Hble cpeJlCT8a TOTAL FOR SECTION I MTOrO no PA3)l.EJIY I 255 ,783,204.66

II
. CURRENT ASSETS II. OJiOPOTHbiE AKTHBhl Stocks 3anacbJ 41,346,956.77 Inward VAT BHyTpeuunu H)l.C )l,e6HTOpCKaSI JaJlOJJ)KeHHOCTb (nJJaTemu Accounts receivable (over no KOTOpOH O)KHJla IOTCSI



# - than 12 months) 6oJJee <JeM <tepeJ 12 MeCSIUe8 DOCJJe OT<JeTHOH JlaTbl) )l,e6JtTOpCKaSI Accounts Receivable (due less JaJlOJJ)KeHHOCTb (nJJaTemH than 12 months) DO KOTOpOH O)KHJlaJOTCSI 8 116,337,492.15 Te<teune 12 MeCSIUe8 nocJJe OT<JeTHOH JlaTbl) npo<tue aKTH8bJ 201,960,479.63 Cash )l.e uemubJe cpeJlCT8a 2,016 , 146.00
TOTAL FOR SECTION II lfTOrO no PA3)l.EJIY II 361,661,074
. 55 BALANCE l>AJIAHC 617,444,279
.21 at the end of the year (AZN) 4
753,862.54 327,967,754.33

51,717,254.92

1,643 ,367.46 382 ,08 2, 239.25

72 ,877'785.18



## -



# -

148,158 ,346.81
200,252,665 .67 1,344,648.31 422,633,445.97 804 715,685.22

### LIABILITIES IlACCMB at the beginning of at the end of the the yea year III. STOCK AND III. KAOHT AJI H RESERVES PE3EPBhl Share capital YcTaBHbiii KamnaJI 24 ,050,000.00 24,050,000.00 Surplus Capital .lJ,ooaBOlfHbiH KanHTaJI Inward investments and l}.eJieBbie «j>HHaHUtpOBaHHe



# - donations H nocTynJieHHH Retained Earnings (carried**Hepacnpe~eJieHHaH** 

### 40,006,887.77 25,867,486.15 forward) npHObiJib npOWJibiX JieT Non covered Loss HenoKpbiTbiH y6LITOK



# - (carried forward} npOWJibiX JieT Retained Earnings (current**Hepacnpe~eJieuuaH** 

### 18,528 ,919 .60 1,338,732.26 year) npHObiJib OTlfeTHOrO**ro~a** 

### Non covered loss (current Heno KpbiTbiH y6LITOK



# - - year) OTlfeTuoro**ro~a** 

### TOTAL FOR SECTION Ul 

### HTOrO 00 PA3.li,EJIY III 82,585,807.37 51,256, 218
.41

IV
. LONG-TERM IV. ,J!OJirOCPOlJHbiE LIABILITIES 06.H3ATEJihCTBA Loans 3aeMHbie**cpe~CTBa** 

# - - Other long-term obligations fipOlfHe**~OJirocpOlfHb ie**  

# - o6H3aTeJibCTBa
TOTAL FOR SECTION IV HTOrO ITO PA3.li,EJIY IV 

# -
v. SHORT-TERM V. KPATKOCPOqHhlE

LIABILITIES IlACCHBhl Loans JaeMHbie**cpe CTBa**  

### Accounts Payable**Kpe~HTopcKaH** 

### 225,142,389.69 470,875,744.10**Ja~OJiiKeH** 

### HOCTb Settlements with founders PaclfeTbi c**ylfpe~HTeJIHMn** 

### Deferred income**.LJ,oxo~bi 6y** **~y mnx**  

### 80,352,200
.23 72 ,260 ,010.23**nepuo OB**  

### Reserves of deferred expenses PeJepBbi**npe~cTOHUlHX** 

### 229,363,881.92 210,323,712.48**acxo~oB**



### TOTAL FOR SECTION V. HTOrO 00 PA3.li,EJIY V
. 534,858,471.84 753,459,466.81 BALANCE liAJIAHC 617 444,279.21 804,715 685.22

### ACCOUNTING BALANCE SHEET SILK WAY AIRLINES

Azyenimanat (AZN) 31 December, 2013 DATA**~AHHbiE** 

### at the beginning of the year (AZN) 1 2 3 I. ASSETS 

### I. BHEOEOPOTHbiE AKTHBbi Intangible Assets HeMaTepnaJlbHble aKTHBbl 753,862
. 54 Investments Fixed assets OcnoBHble cpeA CTBa 327,967 ,754.33 Long-term investments**~OJirOCpO"'Hble** 

### 51,717,254.92 !J!nHaHCOBbiC BJlOJKeHHSl Capital investments to fixed KannTaJioBJioJKeunst B 1,643,367.46 assets OCHOBHbiC cpeACTBa TOTAL FOR SECTION I liTOrO flO**PA3~EJIY** 

### I 382,082, 239.25

II. CURRENT ASSETS II. OliOPOTHbl E AKTMBbl Stocks 3anaCbl 72,877,785
. 18 Inward VAT BuyTpeuunn**C** 

## -**~e6HTOpCK3S1** 

### 3aAOJ1JKCHHOCTb (nJiaTCJKH Accounts receivable (over DO KOTOpOH OJKHA310TCS1



# - than 12 months) 6oJiee "'CM qepn 12 MCCstU,eB DOCJle OT"'CTHOH AaTbl)**~efiHTOpCKaSI** 

### Accounts Receivable (due less 3aA OJ1JKCHHOCTb (nJiaTeJKH than 12 months) DO KOTOpoif OJKHAaiOTCSl B 148,158,346
. 81 Te"'eHHe12 MCCSlli,CB DOCJIC OT"'CTHOH AaTbl) flpO"'IfC aKTifBbl 200, 252,665.67 Cash**~CHCJKHbiC** 

### CpCA C

TBa 1,344,648.31
TOTAL FOR SECTION II HTOfO flO**PA3~EJIY** 

### II 422,633,445
.97 BALANCE I>AJIAHC 804 715,685.22 at the end of the year (AZ N) 4
716,934.60 309,537 , 199.11

53,189,715
. 86

1 ,679, 623
.93 365 , 123,473.50

52 ,753,685.71

87,018,701.35
78,621 , 613
. 89 1,764 , 891.51 220,158,892.46 585 282,365.96

### LIABILITIES nACCHB at t he beginning of at the end of the the yea year 

### ill. STOCK AND III. KAnlfT A.JI H RESERVES PE3EPBhl Share capital YcTaBHbiH KannTaJI 

### 24,050,000
. 00 24,050 ,000.00 Surplus Capital )J,o6aBO'IHbiH KamnaJI Inward investments and l.J.eJieBble lflnHaHCHpOBaHHC donations " nocTynJieHHSI Retained Earnings (carried HepacnpeAeJiennaH 

### 25,867,486.15 4,595,866.01 forward) npHfibJJib npOUJJibiX JieT Non covered Loss HenoKpblTbJH y6b1TOK (carried forward} npOWJibiX JieT Retained Earnings (current HepacnpeAeJieuuaSI 

### 1,338 ,732.26 0.00 year) nplt6b1Jib OT'ICTHOrO rOA3 Non covered loss (current HenoKpblTbJH y6bJTOK



# - 

# - year) OT'ICTHOrO rOAa TOTAL FOR SECTION III HTOrO no PA3).(E.JIY 

### III 51,256,218.41 28 ,645,866
. 0 I

IV. LONG-TERM IV. ,l!OJirOcPOqHhiE LIABILITIES OliH3ATEJihCTBA Loans 3aeMHbiC cpeACTBa 

# - - Other long

- term obligations npO'IHe AOJirOCpO'IHbiC



# - OfiSIJaTCJibCTBa
TOTAL FOR SECTION IV HTOrO no PA3)1,EJIY IV 

# -
V. SHORT

- TERM V. KPATKOCPOqHbiE

LIABILITIES nACCHBhl Loans 3aCMHbiC CpCACTBa Accounts Payable KpeAnTopcKaH 

### 470,875,744.IO 418,586,035
.04 JaAOJI*CHHOCTb Settlements with founders Pac'ICTbJ c y'lpeAHTeJISIMH Deferred income )J,OXOAbl**fiyAy~HX** 

### 12,260,0I0.23 55,360,738.11 nepHOAOB Reserves of deferred expenses Pe3epBbJ**npeACTOSI~ux** 

### 210,323,712.48 82,689'126.80 paCXOAOB TOTAL FOR SECTION V. HTOrO no PA3)1,EJIY V. 

### 753 ,459,466.81 556,636,499
. 95 BALANCE liA.JIAHC 

### 804 ,7I5 685.22 585 282 365.96

## EXHIBIT SILK WAY- 14 FINANCIAL PROJECTIONS Silk Way Airlines plans to operate IL- 76TD-90 Stage 4 noi se compliant aircraft for charters bet ween Baku, Azerbaijan and continental U.S. (mainly Houston/ IAH , TX and Chicago/ORD, IL). Estimated price per GYD-IAH-GYD flight is $522 000 with 20T lo ad and $455 000 per GYD-ORD

- GYD with 30T load. This calculation is based on the review ofthe market data, that showed the average cargo flow on s imilar routes in the year 2013. With the average estimated cost per flight of$458 000 and $405 000 accordingly, the average financial result per flight is $57 000
. With the estimated 20 round-trip flights in the first year of operations, the fi nancial result per year is estimated to const itute $ 1 140 000.

## EXHIBIT SILK WAY

- 15 GOVERNMENTAL FINANCIAL ASSISTANCE 

# Silk Way does not receive, and does not expect to receive, any financial assistance from the government ofAzerbaijan.

## EXHIBIT SILK WAY

- 16 BILATERAL AGREEMENT & 

## DESIGNATION OF SILK WAY
Silk Way has been designated by the Government of Azerbaijan to perform f oreign air transportation services between the United States and Azerbaijan as is required by 49 U
. S.C
. 41302. Pending the outcome of the ongoing US

-Azerbaijan bilateral air transport negotiations, Silk Way Airlines' proposed services that are the subject of this application are based upon comity and reciprocity between the Government of the United States and the Government of Azerbaijan
.

## EXHIBIT SILK WAY

- 17

SAFETY & 

## TARIFF VIOLATIONS
In the five years preceding the instant updated application, Silk Way was involved in one accident resulting in the loss of life
. The accident involved its IL

-76TD aircraft that crashed in the vicinity of Bagram Air Base (Afghanistan) on July 5, 2011. The crew of the aircraft died in the crash. Crew coordination, poor control of approaches by the local ATC, and general complicated geographic conditions were determined to be the causes ofthe crash. Following the accident, Silk Way, under the oversight of the State Civil Aviation Administration of Azerbaijan has undertaken a broad program of safety enhancing measures that included modification to its Flight Operations Manual, additional crew training programs , and internal safety audit programs. Silk Way has not been involved in any tariffviolations.

## EXHIBIT SILK WAY

- 18

WAIVER OF LIABILITY LIMITS UNDER WARSAW /MONTREAL CONVENTION
Attached are an original and four copies of OST Form 4523 (Waiver of liability Limits under Warsaw Convention) as is required by 14 C.F.R. 

## § 211.20(t).

### Docket OST 95-236 U.S . Department of Transportation Office of the Secretary of Transportation 

## AGREEMENT The undersigned carriers (hereinafter referred to as "the Carriers•) hereby agree as follows : 1
. Each of the Carriers shall , effective May 16, 1966
. include the following i n its conditions of carriage , including tariffs embodying conditions of carriage filed by it with any government:

" The Carrier shall avail itself of the limitation of liability provided in the Convention for the Unification of Certain Rules Relating to Internationa l Carriage by Air signed at Warsaw October 12th, 1929, or provided in th e said Convention as amended by the Protocol signed at The Hague September 28th , 1955
. However, in accordance with Article 22( 1) of said Convention , or said Conventi on as amended by said Protocol , the Carrier agrees that , as to all international transportation by the Carrier as defined i n the said Convention or said Convention as amended by said Protoco l, which, according to the contract of Carriage, includes a point in the United States of Ame rica as a point of origin, po i nt of destination, or agreed stopping place (1) The limit of liability for each passenger fo r death, wound i ng , or other bodily injury shall be the sum of US $75,000 inclusive of lega l fees and costs, except that , in case of a claim brought in a State where provision is made for separate award of legal fees and costs, the limit shall be the sum of US $58,000 exclusive of legal fees a n d costs. (2) The Carrie r shall not , with respect to any claim arising out of the death , wounding, or other bodily injury of a passenger, avail itse l f of any defense under Article 20(1) of said Convention or said Convention as amended by said Protoco l. Nothing here i n shall be deemed to affect the rights and liabilities of the Carrier with regard to any claim brought by. on behalf of, or in respect of any person who has willfully caused damage which resulted in death , wounding , or other bodily injury of a passenge r ." 2. Each Carrier shall, at the time of delivery of the ticket, furnish to each passenger whose transpor tation is governed by the Convention , or the Convention as amended by the Hague Protocol , and by the special contract described in paragraph 1, the following notice, which shall be printed in type at least as large as 10 point modern type and in i nk contrasting with the stock on (i) each ticket ; (ii) a piece of paper either placed in the ticket envelope wi'h the ticket or atta ched to the ticket or {iii) on the ticket envelope: "ADVICE TO INTERNATIONAL PASSENGER ON LIMITATION OF LIABILITY Passen gers on a jo urney involvi ng an ultimate d estination or a slop in a country other than the country of origin are advised that the provisions of a treaty known as the Warsaw Convention may be applicable to the entire journey, including any portion entirel y within the country of origin or dest ination
. For such passengers on a journey to
. from, or with an agreed stopping place in the United States of America , the Convention and special contracts of carriage embod ied in applicable tariffs provide that the liability of S IL K WAY AIRLIN ES [certain 

### 1• ((name of carrier) and certain other] carriers parties to such special co ntracts for death of or personal injury to passengers is li mited in most cases to p r oven damages not to exceed US $75,000 per passenge r , and that this liability up to such limit shall not depend on negligence on the part of the carrier. For such passengers traveling by a carrier not a party to such special contracts or on a journey not to. from, or havi ng an agreed stopping place in the Un ited States of America , liability of the carrier for death or persona l injury to passengers is limited in most ceses to approximately US $10,000 or US $20,000

. The names of Carriers parties to such special contracts a re available at all ticket offices of s u ch carriers and may be examined on request Additional protection can usually be obtained by purchasing insu rance from a private company. Such insurance is not affected by any limitat ion of the carrier's liability u nder the Warsaw Convention or such special contracts of carriage
. For further information please consult your airline or insurance company representative ." 3. [This Agreement was filed with the Civil Aeronautics Board of the United States. The Board approved it by Order E-23680, adopted May 13, 1966
. The Agreement (Agreement 18900) became effective May 16, 1g66
. On January 1 , 1985 , thi s Agreement became the responsibility of the Department of Transportation (DOT) by ope ration of l aw.] 4. This Agreemen t 

## may be signed in any number of counterparts , all of which shall constitute one Agreement. Any Carrier may becom e a party to this Ag reement by signing a co u nterpart h ereof an d depos iti n g i t with DOT. 5. Any Ca r rier party hereto may withdraw from this Ag r eement by giving twelve other Carriers parties to the Agreement
. •Either alternative may be used
. (Signature and Date) (Printed Name and Title) 2) m onth s' written noti ce of withdrawal to DOT and the 

# Te-6 -u_, 

# r**2,~** 2.0/ 

# s-
(Name and Address of Carrier) Silk Way Airlines
.

OST Form 4523 (Formerly CAB Form 263)



## -- 

# ----- Heydar Allyev international Airport
. Baku AZ-1044 Azerbaijan

### U.S
. Department of Transportation Office of the Secretary of Transportation 

# AGREEMENT Docket OST 95-236

The undersigned carriers (hereinafter referred to as "the Carriers" ) hereby agree as follows : 1
. Each of 

### the Carriers shall , effective May 16 , 1966
. include the following in its conditions of carriage , including tariffs embodying conditions of carriage filed by it with any government: "The Carrier shall avail itself of the limitation of liability provided in the Convention for the Unification of Certain Rules Relating to International Carriage by Air signed at Warsaw October 12th, 1929, or provided in the said Convention as amended by the Protocol signed at The Hague September 28th, 1955
. However, In accordance with Article 22(1) ofsaid Convention, or said Convention as amended by said Protocol , the Carrier agrees that, as to all international transportation by the Carrier as defined in the said Convention or said Convention as amended by said Protocol , which, according to 

### the contract of Carriage , Includes a point In the United States of America as a point of orig i n, po i nt of destination, or agreed stopping place (1) The limit of liability for each passenger for death, wounding , or other bodily injury shall be the sum of US $75 ,000 inclusive of legal fees and costs, except that, In case of a claim brought in a State where provision is made for separate award of legal fees and costs, the limit shall 

### be the sum of US $58,000 exclusive of legal fees and costs
. (2) The Carrier shall not , with respect to any claim arising out of the death, wounding , or other bodily injury of a passenger, avail itself ofany defense under Article 20(1) of said Convention or said Convention as amended by said Protocol. Nothing herein shall 

### be deemed to affect the rights and liabilities of the Carrier with regard to any claim brought by, on behalf of, or in respect of any person who has willfully caused damage which resulted in death, wounding, or other bodily injury of a passenger." 2
. Each carrier shall, at the time of delivery of the ticket, furnish to each passenger whose transportation Is governed by the Convention, or the Convention as amended by the Hague Protocol, and by the special contract described in paragraph 1, the following notice, which shall 

### be printed In type at least as large as 10 point modern type and in Ink contrasting with the stock on (i) each ticket : (ii) a piece of paper either placed in the ticket envelope**wi~h** the ticket or attached to the ticket ; or (iii) on the ticket envelope : "ADVICE TO INTERNATIONAL PASSENGER ON LIMITATION OF LIABILITY Passengers on a journey involving an ultimate destination or a stop in a country other than the country of origin are advised that the provisions of a treaty known as the Warsaw Convention may be applicable to the entire journey, includ i ng any portion entirely within the country of origin or destination
. For such passengers on a journey to , from, or with an agreed stopping place in the United States of America, the Convention and special contracts of carriage embodied In applicable tariffs provide that the tiability of SILK WAY AIRLINES [certain ]• ((name of carrier) and certain other ] carriers parties to such special contracts for death of or personal injury to passengers is limited In most cases to proven damages not to exceed US $75,000 per passenger, and that this liability up to such limit shall not depend on negligence on the part of the carrier. For such passengers traveling by a carrier not a party to such special contracts or on a journey not to, from , or having an agreed stopping place In the United States of America, fiability of the carrier for death or personal injury to passengers is limited in most cases to approximately US $10,000 or US $20,000

. The names of Carriers parties to such special contracts are available at all ticket offices of such carriers and may 

### be examined on request Additional protection can usually 

### be obtained by purchasing Insurance from a private company . Such insurance is not affected by any limitation of the carrier's liability under the Warsaw Convention or such special contracts of carriage. For further information please consult your airline or insurance company representative." 3
. [This Agreement was filed with the Civil Aeronautics Board ofthe United States. The Board approved i t by Order E-23680 , adopted May 13, 1966
. The Agreement (Agreement 18900) became effecti ve May 16, 1966
. On January 1 , 1985 , this Agreement became the responsibility of the Department ofTransportation (DOT) by operation of law
.] 4
. This Agreement may be signed in any number of counterparts, all of which shall constitute one Agreement. Any Carrier may become a party to this Agreement by signing a counterpart hereof and depositing it with DOT. 5
. Any Carrier party hereto may withdraw from this Agreement by giving twelve 2) months' written notice of withdrawal to DOT and the other Carriers parties to the Agreement. 

## r:_..,.,.., #
. (Signature and Date)**2-'0** o..-<.1 

### 1'2/**2..0/~** •etther alternative may be used
. ....--

OST Form 4523 (Formerly CAB Form 263) (Printed Name and Title) trsalayev
. D i rector (Nam e end Address of Carrier) Silk Wey Airlines
. Heyder Allyev International Airport , Baku AZ·1044 Azerbaijan

### U .S. Department of Transportation Office of the Secretary of Transportation 

### AGREEMENT The undersigned carriers (hereinafte r referred to as "the Carriers ' ) hereby agree as follows : 

### Docket OST 95-236

1
. Each of the Carriers shall, effective May 16, 1966 , i nclude the following i n its condition s of carriage , including tariffs embodying conditions of carriage filed by it with any government:

" The Carrier shall avail itself of the limitation of liability provided in the Convention for the Unification of Certain Rules Relating to International Carriage by Air signed at Warsaw October 12th. 1929, or provided in the said Convention as amended by the Protocol signed at The Hague September 28th , 1955
. However, in accordance with Article 22( 

### 1) of said Convention , or said Convention as amended by said Protocol , the Carrier agrees that, as to all international transportation by the Carrier as defined in the said Convention or sa id Convention 

### as amended by sa id Protocol, which, according to the contract of Carriage , I ncludes a point in the United States of America as a point of origin, point of destination, or agreed stopping place (1) The limit of liability for each passenger for death, wounding, or other bodily injury shall be the sum of US $75,000 inclusive of legal fees and costs, except that, in case of a claim brought in a Stale where provision is made for separate award of legal fees and costs, the limit shall be the sum of US $58,000 exclusive of legal fees and costs
. (2) 

### The Carrier shall not , with respect to any claim arising out of the death, wounding, or other bodily injury of a passenger, avail itself of any defense under Article 20(1) of said Convention or said Convention as amended by said Protocol. Nothing herein shall be deemed to affect the rights and liabilities of the Carrier with regard to any claim brought by, on behalf of. or in respect of any person who has willfully caused damage which resulted in death , wounding, or other bodily injury of 

### a passenger .• 2. Each Carrier shall, at the time of delivery of the ticket, furnish to each passenger whose transportation is governed by the Convention, or the Convention as amended by the Hague Protocol , and by the special contract described in paragraph 1, the following 

### notice, which shall be printed In type at least as large as 10 point modern type and in Ink contrasting with the stock on {i) each ticket ; {ii) a piece of paper either placed in the ticket envelope wi!h the ticket or attached to the ticket: or (iii) on the ticket envelope : "ADVICE TO INTERNATIONAL PASSENGER ON LIMITATION OF LIABILITY Passengers on a journey Involving an ultimate destination or a stop in 

### a country other than the country of origin a re advised that the provisions of a treaty 

### known as the Warsaw Convention may 

### be applicable to the entire journey, including any portion entirely within the country oforigin or destination
. For such passengers on a journey to, from, or with an agreed stopping place in the United States of America, the Convention and special contracts of carriage embodied in applicable tariffs provide that the liability of SILK WAY AIRLINES (certain 

# r ({name of carrier) and certain other] carriers parties to such special contracts for death of or personal injury to passengers is limited In most cases to proven damages not to exceed US $75,000 per passenger, and that this liability up to such limit shall not depend on negligence on the part of the carrier. For such passengers traveling by a carrier not a party to such special contracts or on a joumey not to , from, or having an agre ed stopping place in the United States of America, 6abnlty ofthe carrier for death or personal injury to passengers is limited in most cases to approximately US $10,000 or US $20,000. The names of Carriers parties to such special contracts are available at all ticket offices of such carriers and may be examined on request Additional protection can usually be obtained by purchasing insurance from a private company . Such insurance is not affected by any limitation of the carrier's liability unde r the Warsaw Convention or such special contracts of carriage. For further infonnation please consult your airline or insurance company representative." 3. [This Agreement was filed with the Civil Aeronautics Board ofthe United States
. Th e Board approved i t by Order E-23680, adopted May 13, 1966
. The Agreement (Agreement 18900) became effective May 16, 1966
. On January 1, 1985, this Agreement became the responsib ility of the Department ofTransportation (DOT) by operation of law
.) 

### 4. This Agreement may be signed in any numbe r of counterparts, all of which shall constitute one Agreement. Any Carrier may become a party to this Agreement by signing a counterpart hereof and depositing it with DOT. 5
. Any Carrier party hereto may withdraw from thi s Agreement by giving twelve other Carriers parties to the Agreement. •either alternative may be used. (Signature and Date) (Printed Name and Title) 2) month s' written notice of withdrawal to DOT and the 

# T«d'Z..U 

### t' 

## 2_, 2.0

# Is-

(Name and Address of Carrier) Silk Way Airlines,

OST Form 4523 (Formerly CAB Form 263)



## -- -- - ----- . 

# -- ·--·-- -- Heydar Al iyev intemational Airport , Baku AZ-1044 Azerbaij an

### U
. S. Department of Transportation Office of the Secretary of Transportation 

### AGREEMENT Docket OST 95-236

The undersigned carriers (hereinafter referred to as "th e Carriers") hereby agree as follows : 1
. Each of 

### the Carriers shall, effective May 16 , 1966, include the following in its conditions of carriage , includ i ng tariffs embodying conditions of carriage filed by it with any government:

"The Carrier shall avail Itself of the limitation of liability provided in the Convention for the Un ificatio n of Certain Rules Relating to International Caniage by Air signed at Warsaw October 12th , 1929, or provided in the said Convention as amended by the Protocol signed at The Hague September 28th , 1955
. However , in accordance with Article 22( 1) of said Convention, or said Convention as amended by said Protocol, the Carrier agrees that, as to all international transportation by the Carrier as defined in the sa i d Convention or said Convention as amended by said Protocol, which , according to the contract of Carriage , Includes a point In the United States of America as a point of origin, point of destination , or agreed stopping place (1) The limit of liability for each passenge r for death, wound i ng, or other bodily Injury shall be the sum of US $75 ,000 inclusive of legal fees and costs, except that , in case of a claim brought 

### in a Stale where provision is made for separate award of legal fees and costs , the limit shall be the sum of US $58,000 exclusive of legal fees and costs
. (2) The Carrier shall not , with respect to any claim arising out of the death, wounding, or othe r bodily injury of a passenger, avail itself of any defense under Article 20(1) of said Conven tion or said Convention as amended by said Protocol
. Nothing herein shall be deemed to affect the rights and liabilities of the Carrier with regard to any claim brought by, on behalf of, or in respect of any person who has willfully caused damage which resulted in death, wounding, or other bodily injury of a passenger.• 2. Each Carrier shall, at the time of delivery of the ticket, furnish to each passenger whose transportation is governed by the Convention, or the Convention as amended by the Hague Protocol , and by the special contract described in paragraph 1. the following notice, which shall be printed In type at least as large as 10 point modern 

### type and in Ink contrasting with the stock on (i) each ti cket ; (ii) a piece of paper either placed in the ticket envelope**wi~h** the t i cket or attached to the ticket ; or (iii) on the ticket envelope : "ADVICE TO INTERNATIONAL PASSENGER ON LIMITATION OF LIABILITY

Passengers on a journey Involving an ultimate destination or a stop in a country other than the country of origin are advised that the provisions of a treaty known as the Warsaw Convention may be appli cable 

### to the entire journey, including any portion entirely within the country of origin or destination
. For such passengers on a journey to, from , or with an agreed stopping p l ace in the United States of America, the Convention and special contracts of caniage embod i ed in applicable tariffs provide that the tiability of SILK WAY AIRLINES (certa i n 

# r [(name of carrier) and certain other) carriers parties to such special contracts for death of or personal injury to passengers is limited in most cases to proven damages not to exceed US $75,000 per passenger, and that this liability up to such limit shall not depend on negligence on the part of the carrier
. Fo r such passengers traveling by a carrier not a party to such special contracts or on a journey not to, from , or having an agreed stopping place in the United States of America,**~ability** ofthe canier for death or personal injury to pass engers 

### is limited in most cases to approximately US $10 ,000 or US $20 ,000
. The names of Carriers parties to such special contracts are available at all ticket offices of s uch carriers and may be exam i ned on request Additional protection can usually be obta i ned by purchasing Insurance from a private company . Such insurance is not affected by any limitation of the carrier's liability under the Warsaw Convention or such special contracts of carriage
. For further information please consult your airline or insurance company representative ." 3. [This Agreement was filed with the Civil Aeronautics Board ofthe United States
. T h e Board approved it by O r der E-23680, ad o pted May 13, 1966
. The Agreement (Agreement 18900) became effective May 16 , 1966. On Janua ry 1 , 1985 , this Agreement became the responsibility of the Department of Transportation (DOT) by operation of law
.) 4
. This Agreement may be signed in any number of counterparts, all of which shall con s titute one Agreem e nt. Any Carrier may become a party to this Agreement by signing a counterpart hereof and depositing it with DOT. 5
. Any Carrier party hereto may withdraw from th i s Agreement by giving twe lve 2) months' writte n notice of withdrawal to DOT and the othe r Carriers parties to the Agreement.**~** , 

## r:/**~ ~**  

## _ (S ig nature and Date)**~0 ·** **t'~** 

### 2..0I,S"'" •Either aHemative may be used
.

OST Form 4523 (Formerly CAB Form 263) (P ri nted Name and Till e) (Name and Address of Carrier) Silk Way Airlines , Heydar Al lyev lntematio nal Ai rport , Baku AZ·1044 Azerbaijan

### U.S. Department of Transportation Office of the Secretary of Transportation 

# AGREEMENT Docket OST 95-236

The undersigned carriers (hereinafter referred to as "the Carriers') hereby agree as follows : 1
. Each of the Carriers shall , effective May 16, 1966, include the following in its conditions of ca rri age, including tariffs embodying conditions of carriage filed by it with any government:

" The Carrier shall avail itself of the limitation of liability provided in the Convention tor the Unification of Certain Rules Relating to International Carriage by Air signed at Warsaw October 12th, 1929, or provided in the said Convention as amended by the Protocol signed at The Hague September 28th, 1955
. However, in accordance with Article 22( 

### 1) of said Convention , or said Conventi on as amended 

### by said Protocol , the Carrier agrees that , as to all international transportation by the Carrier as defined in the sa id Convention or said Convention 

### as amended by said Protocol, which, according to the contract of Carriage, Includes a point in the United States of America as a point of orig in, po int of destination, or agreed stopping place (1) The limit of liability for each passenger for death, wounding, or other bodily injury shall be the sum of US 

### $75,000 inclusive of legal fees and costs, except that , In case of a claim brought in a State where provision is made for separate award of l egal fees and costs , the limit shall 

### be the sum of US $58,000 exclusive of legal fees and costs. (2) The Carrier shall not , with respect to any claim arising out of the death , wounding , or other bodily injury of a passenger, avail itself of any defense under Article 20(1) of said Convention or said Convention as amended by said Protocol. Nothing herein shall be deemed to affect the rights and liabilities of the Carrier with regard to any claim brought by, on behalf of, or in respect of any person who has willfully caused damage which resulted in death, wounding, or other bodily injury of a passenger. " 

### 2. Each Carrier shall, at the time of delivery of the ticket , furnish to each passenger whose transportation is governed 

### by the Convention , or the Convention as amended by the Hague Protocol, and by the special contract described In paragraph 1, the following notice, which shall be printed In type at least as large as 10 point modem 

### type and in Ink contrasting with the stock on (i ) each ticket; (ii) a piece of paper either placed in the ticket envelope wi!h the ticket or attached to the ticket; or (iii) on the ticket envelope : "ADVICE TO INTERNATIONAL PASSENGER ON liMITATION OF LIABILITY

Passengers on a journey involving an ultimate destination or a stop in a country other than the country of origin are advised that 

### the provisions of a treaty known as the Warsaw Convention may be applicable 

### to the entire journey, including any portion entirely within the country of origin or destination
. For such passengers on a journey to, from, or with an agreed stopping place in the United States of America, the Convention and special contracts of carriage embodied in applicable tariffs provide that the liability of SILK 

### WAY AIRLINES (certain 

# r ((name of carrier) and certain other) carriers parties to such special contracts for death of or personal injury to passengers is limited In most cases to proven damages not to exceed US 

### $75,000 per passenger, and that this liability up to such limit shall not depend on negligence on the part of the carrier. For such passengers traveling by a carrier not a party to such special contracts or on a journey not to, from , or having an agreed stopping place in the United States of America,**~ability** of the carrier for death or personal injury to passengers is l i mited in most cases to approximately US $10,000 or US $20,000. The names of Carriers parties to such special contracts are available at all ticket offices of such carriers and may 

### be examined on request Additional protection can usually be obtained by purchasing insurance from a private company. Such insurance is not affected by any limitation of the carrier's liability under the Warsaw Convention or such special contracts of carriage
. For furthe r information please consult your airline or insurance company representative ." 3. [This Agreement was filed with the Civil Aeronautics Board of the United States. The Board approved It by Order E-23680 , adopted May 13, 

### 1966
. The Agreement (Agreement 18900) became effective May 16, 1966. On January 1 , 1985 , this Agreement became 

### the responsibility of the Department of Transportation (DOT) by operation of law
.) 

### 4. This Agreement may be signed in any number of counterparts, all of which shall constitute one Agreement. Any Gamer may become a party to this Agreement by signing a counterpart hereof and depositing it with DOT. 

### 5. Any Carrier party hereto may withdraw from this Agreement by g iving twelve 

### 2) months ' written notice of withdrawal to DDT and the other Carriers parties to the Agreement. 

### r:_/A**~** _ (Signature and Date)**tero <..<.~** **•** 

### t'**_~** 

### 2.0I

# _s- •Either aKemalive may be used.

OST Form 4523 (Formerly CAB Form 263) (Printed Name and Title) (Name and Address of Carrier) Silk Way Airlines. Heyd;u Allyev International Airport, Ba ku AZ · 1044 Azerba ij an