UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on April 13, 2015



### NOTICE OF ACTION TAKEN

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_____________________________________________________________________________________________________________________________ ___ 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).

Applicant: Saudi Arabian Airlines Corporation D ate Filed: March 18, 2015

Relief requested: E x emption under 49 U.S.C. §4 0109 for a two

- year period to conduct the following services:

a. Scheduled f

oreign s cheduled a ir transportation of persons, property and mail from points behind Saudi Arabia via Saudi Arabia and intermediate points to a point or points in the United States and beyond;

b. C harter foreign air transportation of p assengers (and their accompanying baggage) between Saudi Arabia and any point or point i n the United States and beyond; and

c. All

- cargo service between the United States and any point or points.

Applicant representative s : George T. Boggs & Henry C. C ashen II ( 202 ) 420

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DOT analyst: Shelita Johnson ( 202 ) 366

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Responsive pleadings: None filed

DISPOSITION

Action: Approved in part, remainder dismissed (See remarks below)

Action date: April 13, 2015

Effe ctive dates of authority granted: April 13, 2015

– April 13, 201 7

Basis for approval (bilateral agreement/reciprocity): U.S.

- Saudi Arabia Air Transport Agreement 1 (the Agreement).

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations in dicated:

X Standard exemption conditions (attached) X Foreign air carrier permit conditions (Order 88

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Special conditions/Remarks: Saudi Arabian Airlines requests an exemption authorizing it to conduct operations to and

from the United States in accordance with the Agreement. Consistent with this request, w e will grant the applicant exemption authority to allow it to conduct the full scope of scheduled and charter services authorized under the Agreement

. Specifically, we will grant it exemption authority to conduct: 1) scheduled and charter foreign air transportation of persons, property, and mail from points behind the Kingdom of Saudi Arabia via the Kingdom of Saudi Arabia and intermediate points to any point or points in the United S tates and beyond; and 2) other charters pursuant to the prior approval requirements set forth in 14 CFR Part 212. With respect to the applicant’s request in paragraph (c)

above for exemption authority to conduct all

- cargo service between the United States and any point or points, w e note that the Agreement does not provide for scheduled or charter all

- cargo seventh

- freedom services by U.S. or Saudi Arabian

carriers and the applicant has not otherwise offered any basis why such authority should be considere d on an extrabilateral

basis . Therefore, we dismiss that portion of the exemption request.

1 Also referred to in the application as the U.S.

- Saudi Arabia Open Skies Agreement, signed May 28, 2013.In accordance with Annex II of the Agreement, until May 28, 2016, the applicant may only perform its authorized services with local traffic rights (fifth

- freedom) between points in the United States and three intermediate and three beyond points in third c ountries

. Until that date, the applicant may exercise fifth

- freedom traffic rights only to or from

those intermediate and beyond points that are na med in advance by diplomatic note from the Government of Saudi

Arabia

. Beyond May 28, 2016, the applicant m ay conduct fifth

- freedom services with out limitation

. Action taken by: Paul L. Gretch, Director

Office of International Aviation

_____________________________________________________________________________________________________________________________ _______ Under authority assigned by the Department in its regulations, 14 CFR 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 Conservation Act of 1975. To the extent not granted/defe rred/dismissed, we denied all requests in the referenced Docket. We may amend, modify, or revoke the authority granted in this Notice at any time without hearing at our discretion.

Persons entitled to petition the Department 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: http://www.regulations.gov12/2007



### 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 appl icable. 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 determine d 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 internationa l 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 ope rations 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 U nited 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 defin ed 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 Stat es 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 app licable 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.