Order 2014-7-17

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 24th day of July, 2014

Served: July 24, 2014

Application of

EUROFLY SERVICE S.p.A. Docket DOT-OST-2014-0080

 

for an exemption 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 order 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 attached 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 Transport Agreement. In that Notice, 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 licensing 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 May 22, 2014, Eurofly Service S.p.A. (Eurofly Service), a foreign air carrier 

of Italy, requests an exemption under 49 U.S.C §40109 and a foreign air carrier permit under 

49 U.S.C. §41301, to engage in the following services, using small aircraft:

 1 The conditions are attached as Appendix A.
2

a. foreign charter air transportation of persons and property 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;

b. foreign charter air transportation of persons and property between any point or points in 

the United States and any point or points in any member of the European Common 

Aviation Area;

c. other charters pursuant to the prior approval requirements set forth in 14 CFR Part 212 of 

the Department’s regulations; and

d. charter transportation consistent with any future, additional rights that may be granted to

European Union carriers.

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, subject to conditions, and tentatively to grant, 

subject to show-cause procedures, its request for a foreign air carrier permit, also subject to 

conditions.

Specifically, we will grant Eurofly Service exemption authority for the services set forth in 

ordering paragraph 1 below. We will tentatively grant Eurofly Service a foreign air carrier 

permit for these services, as discussed below.

As an additional matter, we will grant Eurofly Service, in addition to charter authority currently 

contained in the U.S.-EU Agreement, authority to conduct charter transportation authorized by 

any additional route rights that may be made available to European Union carriers in the future. 

We are granting Eurofly Service this authority by exemption (and tentatively granting it by 

foreign air carrier permit). We are, however, requiring Eurofly Service, before it commences 

any new service under this authority, to provide us with evidence that it holds a homeland license 

for that new service, unless it has already provided such evidence.

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 applicant 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.2 We also find that the authority sought by the applicant is encompassed by 

the U.S.-EU Agreement. 

 2 We make this finding based on Article 2 (Reciprocal Recognition of Regulatory Determinations with Regard to 

Airline Fitness and Citizenship) of the Protocol to amend the U.S.-EU Air Transport Agreement, signed 

June 24, 2010. 
3

Further, we note that the applicant is properly licensed by its homeland to perform the proposed 

services. In addition, on June 16, 2014, the Federal Aviation Administration advised us that it 

knew of no reason why we should act unfavorably on the applicant’s requests. We have verified 

the applicant’s compliance with 14 CFR Parts 203 (Warsaw liability waiver), and 205 (insurance 

requirements).

In view of the 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 Carrier 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.3

 In 

particular, we tentatively find and 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 under 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, for operations with small aircraft;4; 

2. The applicant is fit, willing and able properly to perform the foreign air transportation 

described in the attached permit and to conform to the provisions of Title 49 of the U.S. Code, 

and to our rules, regulations, and requirements;

3. The applicant is substantially owned and effectively 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 the attached permit, and to such 

other reasonable terms, conditions, and limitations required by the public interest as we may 

prescribe;

 3 The applicant’s request for a foreign air carrier permit was summarized in the Department’s published weekly list 

of applications filed. This notice described the authority sought and gave interested persons an opportunity to 

submit evidence and objections to the award of this foreign air carrier permit authority. As noted above, no answers 

were filed to the application.

4 In its application, Eurofly Service specifically stated that it was applying to provide the services requested using 

small aircraft.
5. The issuance of this foreign air carrier permit will not constitute a major regulatory action 

under the Energy Policy and Conservation Act of 1975, as defined in 14 CFR §313.4(a)(1) of our 

regulations;5

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, unless disapproved by the 

President of the United States under §41307 of Title 49 of the U.S. Code, become effective on 

the 61st day after its submission for §41307 review, or upon the date of receipt of advice from 

the President or his designee under Executive Order 12597 and implementing regulations that he 

or she does not intend to disapprove this portion of the Department’s decision under that section, 

whichever occurs earlier.

In view of the above, 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 Conservation Act of 1975. 

ACCORDINGLY,

1. We grant the request of Eurofly Service S.p.A. for an exemption under 49 U.S.C. §40109 for 

the services set forth below: 

a. foreign charter air transportation of persons and property 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;

b. foreign charter air transportation of persons and property between any point or points in 

the United States and any point or points in any member of the European Common 

Aviation Area;

c. other charters pursuant to the prior approval requirements set forth in 14 CFR Part 212 of 

the Department’s regulations; and

d. charter transportation authorized by any additional route rights made available to 

European Union carriers in the future.

2. In the conduct of these operations, Eurofly Service S.p.A. may only use aircraft capable of 

carrying no more than 60 passengers and having a maximum payload capacity of no more than 

18,000 pounds;

3. Eurofly Service S.p.A. shall, before it commences any new service under subparagraph (d) of 

ordering paragraph 1 above, provide the Department, in Docket DOT-OST-2014-0080, with 

 5

 This finding is based on the fact that the grant of this permit will not result in a near-term net annual change in 

aircraft fuel consumption of 10 million gallons or more.
5

evidence that it holds a homeland license for that new service, unless it has already provided 

such evidence to the Department;

4. The exercise of the privileges granted above is subject to compliance by Eurofly Service

S.p.A. with the conditions listed in Appendix A;

5. Our action granting the exemption authority described herein, subject to the provisions of the 

ordering paragraphs 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;

6. We may amend, modify, or revoke the exemption authority set forth herein at our discretion 

at any time and without hearing;

7. To the extent not acted upon above, we dismiss all requests for exemption authority in the 

referenced docket (DOT-OST-2014-0080);

8. With respect to the applicant’s request for a foreign 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;

9. 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;

10. If timely and properly supported objections are filed, we will give further consideration to the 

matters and issues raised by the objections before we take further action;

11. 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
12. We will serve a copy of this order on Eurofly Service S.p.A.; the Embassy of Italy 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.regulations.gov
Foreign 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 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 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 

Principal 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 coverage contained in 14 CFR Part 205, and, prior to the 

commencement of any operations under this authority, file evidence of such coverage, in the form of a completed 

OST Form 6411, with the Federal Aviation Administration’s Program Management Branch (AFS-260), Flight 

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

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

to Annex 6 of the Chicago Convention;

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

services;

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

14 CFR Part 203, concerning waiver of Warsaw Convention liability limits and defenses;

(7) Agree that operations under this authority constitute a waiver of 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 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, point of destination, or agreed 

stopping place, or for which the contract of carriage was purchased in the United States; or (b) based on a claim 

under any international agreement or treaty cognizable in any court or other tribunal of the United States. In this 

condition, the term "international air transportation" means "international transportation" as defined by the Warsaw 

Convention, except that all States shall be considered to be High Contracting Parties for the purpose of this 

definition;

(8) Except as specifically authorized by the Department, originate or terminate all flights to/from the United States in 

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, 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 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 01/2008
Appendix B

Issued by

Order 2014-

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

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

PERMIT TO FOREIGN AIR CARRIER

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

EUROFLY SERVICE S.p.A. 

A Foreign Air Carrier of Italy 

is authorized, subject to the following provisions, the provisions of Title 49 of the U.S. Code, 

and the orders, rules, and regulations of the Department of Transportation, to engage in the 

following services:

Foreign charter air transportation of persons and property 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 charter air transportation of persons and property between any point or points 

in the United States and any point or points in any member of the European Common 

Aviation Area;

Other charters pursuant to the prior approval requirements set forth in 14 CFR Part 

212 of the Department’s regulations; and

Charter transportation authorized by any additional route rights made available to 

European Union 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 Docket 

DOT-OST-2014-0080.

In the conduct of these operations, the holder may only use aircraft capable of carrying no more 

than 60 passengers and having a maximum payload capacity of no more than 18,000 pounds.

This permit and the exercise of the privileges granted in it shall be subject to the terms, 

conditions and limitations in both the order issuing this permit and the attachment to this order, 

and to all applicable provisions of any treaty, convention or agreement affecting international air 
transportation now in effect, or that may become effective during the period this permit remains 

in effect, to which the United States and the holder’s homeland are or shall become parties.

This 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, convention, 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 Union and its Member States (or, if the right is 

partially 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 Union 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 Union and its Member States become parties.

The Department of Transportation has executed this permit and affixed its seal on ____, 2014.

By:

PAUL L. GRETCH 

Director 

Office of International Aviation 

(SEAL)
Foreign Air Carrier Permit Conditions

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 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 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 Principal 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 coverage contained in 14 CFR Part 205, and, prior to the 

commencement of any operations under this authority, file evidence of such coverage, in the form of a completed OST 

Form 6411, with the Federal Aviation Administration’s Program Management Branch (AFS-260), Flight Standards 

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

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

to Annex 6 of the Chicago Convention;

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

services;

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

of 14 CFR Part 203, concerning waiver of Warsaw Convention liability limits and defenses;

(7) Agree that operations under this authority constitute a waiver of 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 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, point of destination, or agreed stopping place, or for 

which the contract of carriage was purchased in the United States; or (b) based on a claim under any international 

agreement or treaty cognizable in any court or other tribunal of the United States. In this condition, the term 

"international air transportation" means "international transportation" as defined by the Warsaw Convention, except 

that all States shall be considered to be High Contracting Parties for the purpose of this definition;

(8) Except as specifically authorized by the Department, originate or terminate all flights to/from the United States in 

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, 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 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