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

Amendment to Application of Silk Way Airlines Limited Liability Company for a foreign air carrier permit pursuant to 49 U.S.C.§41301 and an exemption pursuantto 49 U.S.C. §40109(c) to engage in cargo charter service betweenthe Republic ofAzerbaijan and the United States ) ) ) ) ) ) ) ) ) ) ) Docket OST-2007-28603



### ANSWER OF NATIONAL AIRLINES
Communications with respect to this document should be sent to: Edward M. Davidson President National Air Cargo Group, Inc., d/b/aNational Airlines 5955 T. G. Lee Blvd Suite 500 Orlando, FL 32822

March 10,2015 Pierre Murphy Law Offices ofPierre Murphy 1200 New Hampshire Avenue, N.W. Suite 590 Washington, D.C. 20036 Telephone: (202) 776-3980 Facsimile: (202) 776-3975 Email: pmurphy@lopmurphy.com Attorney for National Air Cargo Group, Inc. d/b/aNational Airlines

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

Amendment to Application of Silk Way Airlines Limited Liability Company for a foreign air carrier permit pursuant to 49 U.S.C.§41301 and an exemption pursuant to 49 U.S.C. §40109(c) to engage in cargo charter service between the Republic ofAzerbaijan and the United States ) ) ) ) ) ) ) ) ) ) ) Docket OST-2007-28603



### ANSWER OF NATIONAL AIRLINES
National Air Cargo Group, Inc., d/b/aNational Airlines (''National") respectfully responds in objection to the February 17,2015 application ofSilk Way Airlines Limited Liability Company ("SW A") to amend its application for all-cargo foreign air carrierpermit and exemption authority, which application has been pending since 2007. SW A now repeats its 2007 request for Azerbaijan- U.S. charters as well as for U.S.- third country charters with its fleet of IL-76 and An-12 all-cargo aircraft. 1

National objects to this renewed request for the reasons set forth below.

1. SWA's renewed application is premised entirely upon principles ofcomity and

It should be notedthat SW A operates a fleet ofaircraft which can only operate to the U.S. from Azerbaijan with multiple tech stops.

### ANSWER OF NATIONAL AIRLINES reciprocity since there is no bilateral air serve agreement between the 2 countries.2 However, as the Department is aware from the pleadings inDocket DOT-OST-2014-0111 (Silk Way West), there is an absence ofcomity and reciprocity with the foreign government. As an initial matter, comity and reciprocity is normally evidenced by a written statement from the relevant foreign government that reciprocal rights will be accorded U.S. carriers. No such statement from the relevant Azerbaijan authorities has beenreceived, despite assurances from SWA's subsidiary airline, the B-74 7-8F /74 7-400F all cargo carrier Silk Way West Airlines ("SWW"), that it was forthcoming.

2. Further, ithas already been demonstrated that comity and reciprocity does not exist for U.S. carriers in Azerbaijan. When applicant herein's affiliate SWW applied last
summer for U.S. operating rights under U.S.-Azerbaijan comity and reciprocity, the Department specifically limited such authority to 3rd;4th Freedom operations as opposed to the broader scheduled authority SWW had requested. See: DOT Order 2014-8-15, at 2 n. 4 (FACP Show Cause Order and Order Granting Exemption) (Docket DOT-OST-2014-0111). This action was entirely consistent with Department policy in such situations. Then subsequent to that Show Cause Order, SWW sought to amend its application by now adding 7th Freedom Baku-Hong Kong-Chicago-New York-Luxembourg-Baku scheduled all-cargo rights. Following a demonstration by U.S. carriers ofprotectionism and a highly restrictive and contentious bilateral regime amounting to a lack ofcomity and reciprocity, the Department in Order 2014-11-11 confmned the award to SWW ofAzerbaijan-U.S. rights only, but dismissed "all remaining

2 Inthe absence ofa bilateral, aviation relations are governed byprinciples ofcomity and reciprocity. 2ANSWER OF NATIONAL AIRLINES requests for reliefinthis Docket." See: DOT Order 2014-11-11 , at 2,**~** 3 (Final Order ).3

3
. Separately, SWA has sought to invoke DOT's streamlined regulatory procedures for approval ofthe amendment to its 2007 application. However, the referenced procedures have
no application herein. In the Department' s Notice implementing these streamlined procedures, it
was made clear that, inter alia, heavily controverted cases or ones that arise inthe context of restrictive or contentious bilateral regimes are not conducive to such expedited procedures.4 The application ofSWAherein, and the related application ofSWW in Docket DOT-OST-2014- 0111 , are clearly controversial. They have received strong opposition from U.S. carriers demonstrating a lack ofcomity and reciprocity and the separate applications ofboth SWA herein and SWW clearly arise inthe context ofa highly restricted and contentious bilateral environment. For these reasons, the expedited and streamlined consideration soughtby SW A herein have no applicability and should not be granted.

4. SWA' s amended application provides no reason to reconsider the decision to not grant SWAthe authority it requests. As the U.S
. objectors have demonstrated in the context of SWW's applications in Docket DOT-OST-2014-011 1, U.S
. air carriers which operate to Baku
are faced with a protectionist environment rendering operations uneconomical unless a U.S. carrier has a contractual relationship with Silk Way
. Comity and Reciprocity is clearly lacking.

Notwithstanding Order 20 14-11

- 11 , SWWhas initiated multiple rounds offilings onno fewer than 3 more occasions. Most recently, see: SWWMotion f orLeave to File and Motion to Expedite Request to Amend Authority, March 4, 20 15
. 4 See: Notice in the Matter ofStreamlining Regulations Procedures for licensing U.S. and Foreign Air Carriers, August 23, 2005 (Docket DOT-OST-2005-22228), at 3. 3

### ANSWER OFNATIONAL AIRLINES WHEREFORE, National Airlines submits that the application ofSilk Way Airlines be denied.

March 10, 2015

4 

### Respectfully s 

# /-- /ierre M / Law Of ces ofPierre Murphy

,,' 1200 NewHampshire Avenue, N
.W.

**~** 

### Suite 590 Washington, D.C. 20036 Telephone: (202) 776-3980 Facsimile: (202) 776-3975 Email: pmurphy@lopmurphy.com Attorney for National Air Cargo Group, Inc. d/b/a National AirlinesCERTIFICATE OF SERVICE I hereby certify that I have on this day served a copy ofthe foregoing document on this lOth day ofMarch 2015 upon each ofthe following email addresses: gpwicks@wicks-group.com ekagrimes@wicks-group.com sascha.vanderbellen@delta.com chris.walker@delta.com dshort@fedex.com sllunsford@fedex.com nssparks@fedex.com gbleopard@fedex.com dheffeman@cozen.com enisson@nac.aero mwiegele@nac.aero kevin.montgomery@polaraircargo.com peter.beckett@polaraircargo.com dan.weiss@united.com pdoell@naca.cc robert.wirick@aa.com francis.heil@aa.com howard.kass@usairways.com benjamin.slocum@usairways.com rsilverberg@sgbdc.com .ijohnson@sgbdc.com jrichardson@johnlrichardson.com jcanny@amerijet.com john@mietuslaw.com rpommer@atlasair.com matwood@cozen.com nwallace@wallaceair.com agoerlich@ggh-airlaw.com dhainbach@ggh-airlaw.com rzerkel@lac.lynden.com gwhite@lac.lynden.com jdavis@lac.lynden.com TGillies@southemair.com anita.mosner@hklaw.com jennifer.nowak@hklaw.com dsmalls@ups.com slachter@cozen.com EngleTS@state.gov

Kristin K. Leake