Order 20 1 3

- 6

- 12

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 12 th day of June

, 201 3

Served: June 12 , 201 3

Application of

AIRBRIDGECARGO AIRLINES LLC Docket s DOT

- OST

- 2007

- 2823 3

DOT

- OST

- 2007

- 28234

for a n exemption under 49 U.S.C. §40109 and an amended foreign air carrier permit under 49 U.S.C. §41301

ORDER TO SHOW CAUSE

Summary

By this order we tentatively find that it is in the public interest to grant the applicant the amended foreign air carrier permit attached as the Appendix to this order.

Application

By ap plication filed March 5

, 2013 (as supplemented May 7, 2013 )

, 1 AirBridgeCargo Airlines LLC (AirBridgeCargo) , a foreign air carrier of the Russian Federation, requests an amended foreign air carrier permit under 49 U.S.C. §41301 to permit the applicant to engage in scheduled foreign air transportation of property a nd mail between a point or points in the Russian Federation, on the one hand, via intermediate points, and Miami, Florida; Dallas/Fort Worth, Texas; and Los Angeles, California, on the other hand, and beyond. 2

The applicant provided evidentiary materia ls required by 14 CFR Part 211 of our regulations to support its requests for authority.

1 We note that in this same application AirBridgeCargo requested exemption authority to serve the same points at issue here.

W e have previously acted on that portion of its request. See Notice of Action Taken dated March 2 8 , 20 1 3 , in Docket s DOT

- OST

- 2007

- 28233 and DOT

- OST

- 2007

- 28234

. 2 AirBridgeCargo’s current foreign air carrier permit, issued in Docket DOT

- OST

- 2007

- 2823 4 on September 20

, 2011, by

Order 20 11

- 9

- 1 5 , authorizes it to engage in , subject to conditions outlined in th e order: 1) scheduled foreign air transportation of property and mail between a point or points in the Russian Federation, on the one hand, via intermediate points, and Houston, Texas; New York, New York; Atlanta, Georgia; and Chicago, Illinois, on the oth er hand, and beyond to a point or points in the Western Hemisphere; and 2) charter foreign air transportation of property and mail between any point or points in the Russian Federation and any point or points in the United States.2 No answers were filed to the application.

Tentative Findings and Conclusions

We tentatively find and conclude that the public interest warrants granting the applican t an amended foreign air carrier permit, in the form attached as the Appendix to this order, and subject to the

conditions attached. 3 In particular, we tentatively find that grant of this authority is in the public interest; that the applicant has demonst rated, based on the record, that it is financially and operationally fit to perform the services authorized; 4 and that it is substantially owned and effectively controlled by

citizens of its claimed homeland. 5

The authority sought by the applicant is enco mpassed by the 1994 Air Transport Agreement between

the United States and the Russian Federation (the Agreement)

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

, the Federal Aviation

Ad ministration 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).

Finally, we tentat ively find that the authority sought by the applicant, if finalized, should be subject to the following conditions:

I n the conduct of the services authorized herein, AirBridgeCargo must adhere to (1) FAA

- approved flight routings; and ( 2 ) the Air Transport Agreement between the United States and the Russian Federation, including its Annexes. 7 In accordance with 14 CFR §212.9(d) a nd (e) of the Department’s rules, AirBridgeCargo shall not perform any charter(s) unless specific authority in the

form of a stat ement of authorization for such charter(s) has been granted by the Department. Applications for the statements of authorization required above shall be filed in accordance with the procedures set forth in 14 CFR §212.10.

In view of the foregoing and all facts of record, we tentatively find and conclude that:

3 The applicant’s request for an amended 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 The applicant has requested confidential treatment of its financial submissions, under the provisions of 14 CFR§302.12. Good cause having been sh own, we will grant this request.

5 AirBridgeCargo states that it is 51 % owned by Volga

- Dnepr

- Moscow LLC, a nd 49% owned by Volga

- Dnepr Logistics B.V., which are both Russian entities

. Volga

- Dnepr Logistics B.V. in turn owns 100% of Volga

- Dnepr

- Moscow LLC. T he applicant states that Volga

- Dnepr L ogistics B.V.’s reportable capital stock is held by three different entities, all of which are 100% owned by citizens of the Russian Federation. AirBridgeCargo further states that, except with respect to its Vice

Pr esident of Sales, who is a German citizen, all of its officers and key management personnel are citizens of the Russian

Federation.

6 On February 1 4 , 20 13 , the United States and the Russian Federation agreed, ad referendum , to revised Annexes to the

U.S.

- R ussia Air Transport Agreement and stated that, pending their entry into force, their respective aeronautical authorities intend to implement the provisions of those Annexes on the basis of comity and reciprocity.

7 With regard to the scheduled all

- cargo au thority tentatively granted herein, the applicant may exercise fifth

- freedom traffic rights only to or from beyon d points listed in the Agreement or named by the Russian Federation

.3 1. It is in the public interest to issue the applicant a n amended foreign air carrier permit in the form attached;

2. The applicant is fit, willing and able properly to perform the foreign air tra nsportation 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 by citizens of its claimed hom eland;

4. The public interest requires that the exercise of the privileges granted by the amended permit should be subject to the terms, conditions, and limitations contained in the attached permit, and to such other reasonable terms, conditions, and lim itations 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; 8

6. The public interest does not require an oral evidentiary hearing on the application; and

7. Our action with respect to this amended foreign air carrier permit should, unless disapproved by the President of the United States under §413 07 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, and acting under authority assigned by the Department in its regulations, 14 CFR Part 385, we tentatively find that our actions are consistent with Department policy.

ACCORDINGLY,

1. We direct all interested persons to show cause why our tentative decision on the application of AirBridgeCargo Airlines LLC, set forth above, should not be made final ;

2 . We grant the request of AirBridgeCargo Airlines LLC for confidential treatment of its financial submissions, consistent with the provisions of 14 CFR §302.12;

3. Any interested person objecting to the issuance of an order making final our tentative findings and

concl usions 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 t o objections are due no later than seven (7) calendar days thereafter; 9

8 This finding is based on the fact that the grant of this permit will no t result in a near

- term net annual change in aircraft fuel consumption of 10 million gallons or more.

9 Because we are providing for the filing of objections to our tentative decision in this order, we will not entertain petition s for review of this order.4 4

. 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;

5

. 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 conc lusions set forth in this order; and

6

. We will serve a copy of this order on AirBridgeCargo Airlines LLC , the Embassy of the Russian Federation to the United States in Washington, D.C., the Federal Aviation Administration, and the U.S. Department of Sta te (Office of Aviation Negotiations).

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://ww w.regulations.govAppendix

Issued by

Order 201 3

-

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.



### -------------------------------------------------------- PERMIT TO FOREIGN AIR CARRIER (as amended)



### ------------------------------------------------------- --



### AirBridgeCargo Airlines LLC

A F oreign Air Carrier of the Russian Federation

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, t o engage in foreign air transportation of property and mail as follows:

Scheduled foreign air transportation of property and mail between a point or points in the Russian

Federation
, on the one hand, via intermediate points, and Houston, T exas; New York, N ew Y ork; Atlanta, G eorgia ; Chicago, Illinois; Miami, Florida; Dallas/Fort, Worth, Texas; and Los Angeles,

Califo r nia, on the other hand, and beyond ; and

Charter foreign air transportation of property and mail b etween any point or points in the Russian

F ederation and any point or points in 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 charte rs.

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 o r 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 effe ctive on Month XX, 20 1 3 . 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) u pon the effective date of any treaty, convention, or agreement or amendment, which shall have the effect of eliminating the bilateral right for the service authorized by this permit from the service which may be operated by airlines designated by the Gover nment of the Russian Federation (or, if the right is partially eliminated, then theauthority of this permit shall terminate in like part); (3) upon the effective date of any permit granted by the Department to any other carrier designated by the Governmen t of the Russian Federation in lieu of the holder; or (4) upon the termination or expiration of the applicable air services agreement between the United States and Russia. However, clause (4) 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 Russia become parties.

The Department of Transportation has executed this permit and affixed its seal on Month XX , 20 1 3

.

By:

PAUL L. GRETCH

Director

Office of International Aviation 

### (SEAL)Foreign 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. Gover nment 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 Principal Sec urity Inspector (IPSI) to advise the IPSI 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 insuranc e 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 requiremen ts 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 ac tions 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

defin ition;

(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

ch arter 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 reasonab le 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 sh all 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.

11/2006