Order 2013-11-13

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

on the 18th day of November, 2013

 Served: November 18, 2013

Application of

UKRAINE INTERNATIONAL AIRLINES Docket DOT-OST-2013-0185

 

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

On August 23, 2005, the Department issued a Notice, in Docket DOT-OST-2005-22228, announcing 

several steps designed to streamline our regulatory procedures for licensing U.S. and foreign air carriers. 

Among other things, the Notice stated that:

Assuming, based on the record and on the public interest/public convenience and necessity 

elements germane to our licensing decisions, that we were in a position to act favorably, we 

would proceed to issue a single order (1) granting the exemption request for whatever duration 

we would normally have imposed, or until certificate/permit authority becomes effective, 

whichever is shorter, and (2) tentatively deciding (i.e., show-cause) to award a corresponding 

certificate (or permit), again for the standard duration we would normally have imposed (such 

as, in the case of certificates, five years for limited-entry markets, indefinite for open-entry 

markets, and in the case of permits, five years for comity and reciprocity regimes, indefinite for 

agreement regimes).

 1 The conditions are attached as Appendix A.
Our action in this Order serves to implement these streamlined regulatory procedures for the application 

involved in this proceeding.

Application

By application filed October 3, 2013 (as supplemented November 13, 2013, to clarify the scope of 

authority requested), Ukraine International Airlines (“UIA”), a foreign air carrier of Ukraine, requests an 

exemption under 49 U.S.C. §40109, and a foreign air carrier permit under 49 U.S.C. §41301, to engage 

in: 1) scheduled foreign air transportation of passengers, property, and mail between Kiev, Ukraine, and 

New York, New York; and 2) on-demand charter air transportation of passengers, property, and mail 

between any point or points in Ukraine and any point or points in the United States, as well as 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.2

 

The applicant provided evidentiary materials required by 14 CFR Part 211 of our regulations to support 

its requests for authority.

No answers were filed to the application.

Decision

We have decided, under assigned authority and 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.

With respect to the applicant’s request for exemption authority, we find that grant of this authority is 

consistent with the public interest; and that the applicant has demonstrated, based on the record, that it is 

financially and operationally qualified to perform the services authorized.

3

The record indicates that UIA is substantially owned by Ukrainian citizens. With respect to the control 

of the carrier, with the exception of its Chairman of the Board (a citizen of Israel), all of UIA’s 

remaining Board Members, its Chief Executive Officer, and all of its key management personnel are

citizens of the Ukraine. In light of the non-homeland involvement in the control of the applicant, we 

find that, to the extent a question may exist as to the control of the applicant, a waiver of our ownership 

and control policy is warranted in the circumstances presented, as there is nothing in the ownership and 

control of the applicant that would be inimical to U.S. aviation policy or interests.

Aviation relations between the United States and Ukraine are governed by a bilateral aviation 

agreement. However, the Annexes to the Agreement, which serve as the basis for the authority sought 

by UIA, expired on December 31, 2001. While the Annexes have yet to be formally extended, both 

parties have been continuing to observe their provisions on a comity and reciprocity basis. Therefore, 

we find that sufficient reciprocity exists with Ukraine to warrant grant of the requested exemption 

 2 UIA intends to begin operations no later than the spring season of 2014. 3 The applicant has requested confidential treatment of its ownership information under the provisions of 14 CFR §302.12. 

Good cause having been shown, we will grant this request.
authority for a one-year term, or until the requested permit authority becomes effective, whichever 

occurs earlier.

We also note that the applicant is properly licensed by its homeland to perform the proposed services. 

In addition, on November 4, 2013, the Federal Aviation Administration advised us that it knew of no 

reason why we should act unfavorably on the applicant’s request. We have verified the applicant’s 

compliance with 14 CFR Parts 203 (Warsaw liability waiver), and 205 (insurance requirements).

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.

4

 In particular, 

we tentatively find and conclude that the factors which support our grant of exemption authority to the 

applicant also warrant granting the applicant the foreign air carrier permit it seeks.

In view of the foregoing and all facts of record, 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, 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. A waiver of our ownership and control policy is warranted in the circumstances presented;

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;

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.

 4 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 to the application were 

filed.

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.
In view of the above, and acting under authority assigned by the Department in its regulations, 14 CFR 

Part 385, we find that (1) our actions are consistent with Department policy; and (2) 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 Ukraine International Airlines for an exemption under 49 U.S.C. §40109 to

permit it to engage in: 1) scheduled foreign air transportation of persons, property, and mail between 

Kiev, Ukraine, and New York, New York; and 2) charter foreign air transportation of persons, property, 

and mail between Ukraine and the United States, and other charters in accordance with 14 CFR Part 

212;

2. The exercise of the privileges granted above is subject to compliance by Ukraine International 

Airlines with the conditions listed in Appendix A;

3. Our action granting the exemption authority described herein is effective immediately, for a period of 

one year from the issue date of this order, or until the attached permit becomes effective, whichever is 

earlier;

4. We grant the request of Ukraine International Airlines for confidential treatment of its ownership 

information consistent with the provisions of 14 CFR § 302.12;

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 the applicant’s request for exemption authority in this 

Docket (DOT-OST-2013-0185);

7. 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;

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 further consideration to the matters 

and issues raised by the objections before we take further action;
10. 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

11. We will serve a copy of this order on the applicant, the Embassy of Ukraine in Washington, D.C., 

the Federal Aviation Administration, and the U.S. Department of State.

Persons entitled to petition the Department for review of this order under the Department’s regulations, 

14 CFR §385.30, may file their petitions within seven (7) days after the date of issuance of this order. 

Our action with respect to the applicant’s request for exemption authority under 49 U.S.C. §40109 is 

effective immediately, and the filing of a petition for review will not alter such effectiveness.

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
Appendix A 

Foreign Carrier Exemption Conditions

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

(1) Not conduct any operations unless it holds a currently 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 (AFS260), 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 its homeland;

(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.

12/2007
Appendix B

Issued by

Order 2013-X-X

 UNITED STATES OF AMERICA 

 DEPARTMENT OF TRANSPORTATION 

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

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

PERMIT TO FOREIGN AIR CARRIER

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

UKRAINE INTERNATIONAL AIRLINES

A Foreign Air Carrier of Ukraine

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:

Scheduled foreign air transportation of persons, property, and mail between Kiev, Ukraine and 

New York, New York; and

Charter foreign air transportation of persons, property, and mail between Ukraine and the United 

States.

The holder shall also be authorized to engage in other charter trips in foreign air transportation, subject to the 

terms, conditions, and limitations of the Department’s regulations governing charters.

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 , and shall terminate five years thereafter; provided, that if during said period the 

operation of the foreign air transportation authorized becomes the subject of any treaty, convention or agreement to 

which the United States and the applicant’s homeland are or shall become parties, then this permit is continued in 

effect during the period provided in such treaty, convention, or agreement.

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 operations authorized, the foreign carrier applicant(s) 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 

its homeland;

(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.

12/2007