Order 20 10

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UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 1 st day of February, 20 10

Served: February 1, 2010

Ap plication of

HELLENIC IMPERIAL AIRWAYS Docket DOT

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- 0244

for a n exe mption under 49 U.S.C. §40109 and a foreign air carrier permit under 49 U.S.C. §41301

ORDER GRANTING EXEMPTION AND TO SHOW CAUSE

Summary

By this or der we (1) grant the application of the referenced foreign air carrier for an exemption under 49 U.S.C. §40109, subject to conditions; 1 and (2) tentatively find that it is in the public interest to grant the applicant the foreign air carrier permit attache d as Appendix B to this order.

Background

By Notice dated May 3, 2007, we invited foreign air carriers of the European Union (EU) to apply for Department economic authority to conduct operations to and from the United States under the U.S.

- EU Air Transpo rt Agreement. In that Notice, we stated that we anticipated handling these EU carrier requests on an expedited basis to ensure that affected EU carriers may receive the authority available to them under the new Agreement as quickly as possible. To that e nd, we stated our intent to process requests for this authority under the “streamlining” procedures set out in our August 23, 2005 Notice in

Docket OST

- 2005

- 22228, in which we announced several steps designed to simplify our regulatory procedures for licen sing foreign (and U.S.) air carriers. Our action in this Order serves to implement those streamlined regulatory procedures for the application involved in this proceeding.

Application

By application filed October 6, 2009, Hellenic Imperial Airways, a fo reign air carrier of Greece, requests

an e xe mption under 49 U.S.C § 40109, and a foreign air carrier permit under 49 U.S.C. § 41301, to engage in the following services : :

1 The conditions ar e attached as Appendix A.2

a. F oreign scheduled and charter air transportation of persons , property and mail fr om any point or points behind any Member State of the European Union via any point or points in any Member State and via intermediate points to any point or points in the United States and beyond;

b. Foreign scheduled and c harter air transportation of persons , p roperty and mail between any point or points in the United States and any point or points in any member of the European

Common Aviation Area ;

c. Foreign scheduled and charter all

- cargo air transportation between any point or points in the

United States a nd any other point or points; and

d. Scheduled and charter t ransportation authorized by any additional route rights made available to European Community carriers in the future

.

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

We received no answers to the application.

Decision

We have decided, consistent with our August 23, 2005 Notice referenced above, to grant the applicant’s request for exemption authority, as described b elow and subject to conditions, and tentatively to grant, subject to show

- cause procedures, its request for a n amended f oreign air carrier permit, also subject to

conditions.

Specifically, we will grant Hellenic Imperial Airways e xemption authority for th e services set forth in ordering paragraph 1 below. We will tentatively grant Hellenic Imperial Airways a foreign air carrier permit for these services

. 2

As an additional matter, Hellenic Imperial Airways requested that we grant it, in addition to author ity currently contained in the U.S.

- EU Agreement, authority to conduct t ransportation authorized by any additional route rights made available to European Community carriers in the future. We are granting the request of Hellenic Imperial Airways for this authority by exemption (and tentatively granting it by foreign air carrier permit). We are, however, requiring Hellenic Imperial Airways, before it commences any new service under this authority, to provide us with evidence that it holds a homeland licens e for that new service, unless it has already provided such evidence. 3

With respect to the applicant’s request for exemption authority, we find that grant of this authority, as conditioned, is consistent with the public interest . We also find that the ap plicant is financially and operationally qualified to perform the services authorized , and that it is substantially owned and effectively controlled in a manner consistent with the provisions of the U.S.

- EU Agreement

. 4

2 As is our normal practice, we will also grant the applicant exemption authority, and tentatively grant it permit authority, to conduct other charters pursuant to 14 CFR Part 212 of our regulations. See , for example, Order 2009

- 10

- 14. We also find that the authority soug ht by the applicant is encompassed by the U.S.

- EU Air Transport Agreement

.

3 See Orders 2007

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- 19 and 2007

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- 1, and Orders 2007

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- 13 and 2007

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- 16, where we granted this authority to British Airways Plc. and Virgin Atlantic Airways Ltd., respectively.

4 We make this finding based on the Procedures for Reciprocal Recognit ion of Regulatory Determinations with Regard to Airline Fitness and Citizenship, adopted by the U.S.

- EU Joint Committee on January 12, 2009.3

Further, we note that the applicant is properly licensed by its homeland to perform the proposed services. In addition, by memorandum dated November 12, 2009, the Federal Aviati on 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).

In view of th e above, we find that grant of the requested exemption authority, as conditioned, for a two

year term, or until the requested permit authority becomes effective, whichever occurs earlier, is

warranted.

Tentative Findings and Conclusions

-- Foreign Air Carri er Permit Application

We tentatively find and conclude that the public interest warrants granting the applicant a foreign air carrier permit, in the form attached as Appendix B and subject to the conditions attached. 5 In particular, we tentatively find a nd conclude that the factors which support our grant of exemption authority to the applicant, as discussed above, also warrant granting the applicant the foreign air carrier permit it seeks.

In view of the foregoing and all facts of record and acting unde r authority assigned by the Department in its regulations, 14 CFR Part 385, we tentatively find and conclude that:

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

2. The applicant is fit, willi ng 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. The applicant is substantially owned and ef fectively controlled in a manner consistent with the provisions of the U.S.

- EU Agreement ;

4 . The public interest requires that the exercise of the privileges granted by the permit should be subject to the terms, conditions, and limitations contained in t he 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 under the Energy Pol icy and Conservation Act of 1975, as defined in 14 CFR §313.4(a)(1) of our regulations; 6

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

7 . Our action with respect to this foreign air carrier permit should, u nless 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 Execu tive 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

.

5 The applicant’s request for a foreign air carrier permit was summarized in the Department’s published weekly li st 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.

6 This finding is based on the fact that the gran t of this permit will not result in a near

- term net annual change in aircraft fuel consumption of 10 million gallons or more.4

In view of the above, we find that, with respect to the exemption authority we are conferring on the applicant, the applicant is qualified to perform those operations, and that grant of the exemption authority is consistent with the public interest and would not constitute a major regulatory action under the Energy Policy and Cons ervation Act of 1975.

ACCORDINGLY,

1. We grant the request of Hellenic Imperial Airways for a n exemption under 49 U.S.C. §40109 for the

services set forth below:

a. Foreign scheduled and c harter air transportation of persons, property and mail f rom any point or points behind any Member State of the European Union via any point or points in any Member State and via intermediate points to any point or points in the United States and beyond;

b. Foreign scheduled and c harter air transportation of persons

, p roperty and mail between any point or points in the United States and any point or points in any member of th e European Common Aviation Area;

c. Foreign scheduled and charter all

- cargo air transportation between any point or points in the

United States and any other point or points;

d. Other c harters pursuant to the prior approval requirements set forth in the Department’s regulations governing charters; and

e. Scheduled and charter t ransportation authorized by an y additional route rights made available to Europ ean Community carriers in the future.

2. Hellenic Imperial Airways shall, before it commences any new service under subparagraph ( e ) of ordering paragraph 1 above, provide the Department in Docket DOT

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it holds a homeland license for that new service, unless it has already provided such evidence to the Department;

3

. The exercise of the privileges granted above is subject to compliance by Hellenic Imperial Airways

wi th the conditions listed in Appendix A;

4 . Our action granting the exemption authority described herein

, subject to the provisions of the ordering paragraph s above, is effective immediately, for a period of two years from the issue date of this order, or until the attached permit becomes effective, whichever is earlier;

5 . We may amend, modify, or revoke the exemption authority set forth herein at our discretion at any time and without hearing;

6 . To the extent not acted upon above, we dismiss all requests for exemption authority in th e referenced

docke t ( DOT

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7 . With respect to the applicant’s request for a f oreign air carrier permit in this proceeding, we direct all interested persons to show cause why our tentative decision on that application, set forth above, should not be made final;5

8 . Any interested 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 this 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 concrete 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 . If timely and properly supported objections are filed, we will give fur ther consideration to the matters and issues raised by the objections before we take further action;

1 0 . 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

1 1 . We will serve a copy of this order on Hellenic Imperial Airways, the Embassy of Greece in Washington, D.C. , the Department of State, and the Federal Aviation Administration.

By:

PAUL L. GRETCH

Director

Office of International Aviation

(SEAL)

Appendices

An electronic version of this document is available on the World Wide Web at: http://www.r egulations .govForeign Air Carrier Exemption Conditions Appendix A

In the conduct of the operations authorized, the foreign carrier applicant shall:

(1) Not conduct any operations unless it holds a currently effective authorization from its ho meland 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. Governm ent 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 concerning security, the holder shall, bef ore 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 referred to as International Princ ipal Security Inspector) to advise the IIR 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 c overage contained in 14 CFR Part 205, and, prior to the commencement of any operations under this authority, file evidence of such coverage, in the form of a completed OST Form 6411, with the Federal Aviation Administration’s Program Management Branch (AFS

- 260), Flight Standards Service (any changes to, or termination of, insurance also shall be filed with that office);

(4) Not operate aircraft under this authority unless it complies with operational safety requirements at least equivalent to Anne x 6

of the Ch icago Convention;

(5) Conform to the airworthiness and airman competency requirements of its Government for international air services;

(6) Except as specifically exempted or otherwise provided for in a Department Order, comply with the requirements of 14 CFR

Pa rt 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 respect to those actions or proceeding s instituted against it in any court or other tribunal in the United States that are: (a) based on its operations in international air transportation that, according to the contract of carriage, include a point in the United States as a point of origin, p oint 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 o r 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 Partie s 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 a Member State of the European Union;

(9) Comply with the requirements of 14 CFR Part 217, concerning the reporting of scheduled, nonscheduled, and char ter data;

(10) If charter operations are authorized, except as otherwise provided in the applicable aviation agreement, comply with the Department's rules governing charters (including 14 CFR Parts 212 and 380); and

(11) Comply with such other reasonable terms, conditions, and limitations required by the public interest as may be prescribed by the Department, with all applicable orders or regulations of other U.S. agencies and courts, and with all applicable laws of the

United States.

This authority shal l 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.

EU carrier 0 1/ 200 8Appendix B

Issued by
Order 20 10

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UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

--------------------------------------------------------

PERMIT TO FOREIGN AIR CARRIER

---------------------------- -----------------------------

HELLENIC IMPERIAL AIRWAYS

A Foreign Air Carrier of Greece

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 Tran sportation, to engage in:

Foreign scheduled and c harter air transportation of persons
, property and mail from any point or points behind any Member State of the European Union via any point or points in any Member State and via intermediate points to any point or points in the United States and beyond;

Foreign scheduled and c harter air transportation of persons
, property and mail between any point or points in the United States and any point or points in any member of the European Common Aviation Area;

Foreign scheduled and charter all

- cargo air transportation between any point or points in the United States and any other point or points;

Other charters pursuant to the prior approval requirements set forth in the Department’s regulations governing cha rters ; and

Scheduled and charter tra nsportation authorized by any additional route rights made available to European Community carriers in the future; provided , that the holder shall, before it commences any new service under such additional route rights , provide the Department with evidence that it holds a homeland license for that new service (unless it has already provided such evidence to the Department). Such evidence shall be filed in

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.

This permit and the exercise of the p rivileges 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 treaty, convention or agreement affecting international air tr ansportation 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 permit shall be effective on . 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 it was issued; (2) upon the effective date of any treaty,conv ention, or agreement or amendment, which shall have the effect of eliminating the right for the service authorized by this permit from the service which may be operated by airlines of the European Community and its Member States (or, if the right is partia lly eliminated, then the authority of this permit shall terminate in like part); or (3) upon the termination or expiration of the applicable air services agreement between the United States and the European Community and its Member States. However,

clause (3) of this paragraph shall not apply if prior to 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 the European Community and its Member States become parties.

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

By:

PAUL L. GRETCH

Director

Office of International Aviation

(SEAL)Foreign Air Carrier Permit Conditions

In the conduct of the o perations authorized, the foreign carrier applicant shall:

(1) Not conduct any operations unless it holds a currently effective authorization from its homeland for such operations, and it has filed a copy of such authorization with the Department;

(2) Comply with all applicable requirements of the Federal Aviation Administration, the Transportation Security Administration, and with all applicable U.S. Government requirements concerning security, including, but not limited to, 14 CFR Parts 129, 91

, and 36 and 49 CFR Part 1546 or 1550, as applicable. To assure compliance with all applicable U.S. Government requirements concerning security, the holder shall, before commencing any new service (including charter flights) from a foreign airport t hat

would be the holder’s last point of departure for the United States, contact its International Industry Representative (IIR) (formerly referred to as International Principal Security Inspector) to advise the IIR of its plans and to find out whether the Transportat ion 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 und er this authority, file evidence of such coverage, in the form of a completed OST Form 6411, with the Federal Aviation Administration’s Program Management Branch (AFS

- 260), Flight Standards Service (any changes to, or termination of, insurance also shall b e filed with that office);

(4) Not operate aircraft under this authority unless it complies with operational safety requirements at least equivalent to Annex 6 of the Chicago Convention;

(5) Conform to the airworthiness and airman competency requiremen ts of its Government for international air services;

(6) Except as specifically exempted or otherwise provided for in a Department Order, comply with the requirements of 14 CFR Part 203, concerning waiver of Warsaw Convention liability limits and defense s;

(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 respect to those actions or proceedings instituted against it in any court or other tribunal in the United S tates that are: (a) based on its operations in international air transportation that, according to the contract of carriage, include a point in the United States as a point of origin, point of destination, or agreed stopping place, or for which the contra ct of carriage was purchased in the United States; or (b) based on a claim under any international agreement or treaty cognizable in any court o r other tribunal of the United States. In this condition, the term "international air transportation" means "in ternational transportation" as defined by the Warsaw Convention, except that all States shall be considered to be High Contracting Partie s 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 a Member State of the European Union;

(9) Comply with the requirements of 14 CFR Part 217, concerning the reporting of scheduled, nonscheduled, and charter data;

(10) If charter operations are authorized, excep t 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 publi c 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.

EU carrier 1/2008