UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC



### Issued by the Department of Transportation on March 10 , 2010

NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 2009

- 0146

This serves as notice to the public of the action described below, taken by the Department official indicated (no additional confirming order will be issued in this matter).

Application of WORLD AIRWAYS, INC. (World), filed 6/22/09, for:

XX Exemption for two years under 49 U.S.C. 40109 to provide the following service:

Scheduled foreign air transportation of property and mail between Houston, Texas, and Luanda, Angola, via any intermediate points, with or without stopovers. 1

Applicant rep: Malcomb L. Benge (202 ) 298

- 8660 DOT Analyst: Linda L. Lundell (202) 366

- 2336

D I S P O S I T I O N

XX Granted exemption authority, subject to conditions (see below)

XX Denied the request to revoke the Department’s waiver for the “Houston Express” flights (see footnote 1

, below , and also Remarks )

The above action granting exemption authority was effective when taken: March 10 , 20 10

, through

March 10 , 201 2

.

The above action d enying the request to revoke the waiver for the “Houston Express” flights was effective when

tak en: March 10 , 20 10

.

Action taken by: Paul L. Gretch, Director

Office of International Aviation

XX The authority granted is consistent with the overall aviation relationship between the United States and Angola.

Except to the extent ex empted or waived, this authority is subject to the terms, conditions, and limitations indicated:

XX The holder’s certificates of public convenience and necessity

XX Standard Exemption Conditions (attached)

1 World states that it currently operates passenger charters thrice

- weekly on the Houston

- Luanda route under an arrangement

with the United States

- Africa Energy Association (USAEA) and So nAir Servico Aéreo, S.A. (SonAir), a subsidiary of Angola’s state

- owned national petroleum company. These “Houston Express” flights, operated pursuant to waiver authority granted by the Department to USAEA, are limited to USAEA members only. World states that grant of the scheduled exemption authority requested in the instant application would allow World to expand its Luanda services to the general publi c, and would also eliminate the need for continued Departmental waiver for the “Houston Express” charte r program. World requests that the Department revoke the waiver upon commencement of World’s scheduled Houston

- Luanda service. World proposes to begin its scheduled service on the route on May 14, 2010.

### Remarks: We find that grant of World’s Houston

- Luanda exemption authority would offer new service options

for travel ers and shippers and would be consistent with the public interest. 2 While a number of pleadings were filed in response to the application, these essentially raised iss ues involving contractual arrangements between and among USAEA and SonAir (collectively, the “Houston Express Parties”), and World

. 3 W e find that these issues concern private contractual matters which are beyond the scope of this proceeding and are more a ppropriately

handled in other fora , and do not provide a persuasive basis to withhold the requested exemption authority.

We have decided to deny World’s request to revoke the Department’s waiver for the Houston Express charter

program. As the waiver in question was granted to USAEA, and not World, 4 World lacks standing to call for its

revocation . In this regard, we note that USAEA has not expressed support for World’s revocation request and, indeed, has shown on the record a basis for continuation of t he waiver.

On the basis of data officially noticeable under Rule 24(g) of the Department's regulations, we found the applicant qualified to provide the exemption services authorized.

Under authority assigned by the Department in its regulations, 14 CF R Part 385, we found that (1) our action was consistent with Department policy; (2) grant of the authority was consistent with the public interest; and (3) grant of the authority would not constitute a major regulatory action under the Energy Policy and Co nservation Act of 1975. To the extent not granted, we denied all requests in the referenced Docket. We may amend, modify, or revoke th e authority granted in this Notice at any time without hearing at our discretion.

Persons entitled to petition the Dep artment for review of the action set forth in this Notice under the Department’s regulations, 14 CFR §385.30, may file their petitions within seven (7) days after the date of issuance of this Notice. This action was effective when taken, and the filing of a petition for review will not alter such effectiveness.

An electronic version of this document is available on the World Wide Web at: www.regulations.gov

2 We note that the Transportation Security Admini stration has not yet approved scheduled passenger service to Luanda.

3 We grant all motions for leave to file otherwise unauthorized documents.

4 See letter dated June 27, 2006, to Ms. Eileen Brown (counsel for USAEA) from Paul L. Gretch (Director of t he Office of International Aviation) and Samuel Podberesky (Assistant General Counsel for Aviation Enforcement and Proceedings), granting to USAEA a waiver from 49 U.S.C. §41101 and 14 CFR Parts 212 and 380 of the Department’s regulations, to the

extent ne cessary, to provide the Houston Express passenger charters.ATTACH MENT

U.S. Carrier Exemption Conditions

In the conduct of the operations authorized, the U.S. carrier applicant(s) shall:

(1) Hold at all times effective operating authority from the government of each country served;

(2) Comply with applicable requirements concerning oversales contained in 14 CFR 250 (for scheduled operations, if authorized);

(3) Comply with the requirements for reporting data contained in 14 CFR 241;

(4) Comply with requirements for minimum insurance coverage, and for certifying that coverage to the Department, contained in 1 4 CFR 205;

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

(6) Comply with all applicable requirement s of the Federal Aviation Administration, the Transportation Security Administration, and with all applicable U.S. Government requirements concerning security, including, but not limited to, 49 CFR Part 1544. To assure compliance with all applicable U.S. Government requirements concerning security, the holder shall, before commencing any new service (including charter flights) to or from a foreign airport, contact its Principal Security Inspector (PSI) to advise the PSI 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;

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

The authority granted shall be effective only during the period when the holder is in compl iance with the conditions imposed above.



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