Order 2013-6-12

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 12th day of June, 2013

Served: June 12, 2013

Application of

AIRBRIDGECARGO AIRLINES LLC Dockets DOT-OST-2007-28233

 DOT-OST-2007-28234

for an 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 application 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 and 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 materials 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. 

We have previously acted on that portion of its request. See Notice of Action Taken dated March 28, 2013, in Dockets 

DOT-OST-2007-28233 and DOT-OST-2007-28234. 2 AirBridgeCargo’s current foreign air carrier permit, issued in Docket DOT-OST-2007-28234 on September 20, 2011, by

Order 2011-9-15, authorizes it to engage in, subject to conditions outlined in the 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 other 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 applicant 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 demonstrated, 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 encompassed 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 

Administration 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 tentatively find that the authority sought by the applicant, if finalized, should be subject to 

the following conditions:

In 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) and (e) of the 

Department’s rules, AirBridgeCargo shall not perform any charter(s) unless specific authority in the 

form of a statement 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 shown, we will grant this request. 5 AirBridgeCargo states that it is 51% owned by Volga-Dnepr-Moscow LLC, and 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. The 

applicant states that Volga-Dnepr Logistics 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 

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

Federation.

6 On February 14, 2013, the United States and the Russian Federation agreed, ad referendum, to revised Annexes to the 

U.S.-Russia 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 authority tentatively granted herein, the applicant may exercise fifth-freedom traffic 

rights only to or from beyond points listed in the Agreement or named by the Russian Federation.
3

1. It is in the public interest to issue the applicant an amended 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. The applicant is substantially owned and effectively controlled by citizens of its claimed homeland;

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 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;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 §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.

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 

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

 8

 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.

9 Because we are providing for the filing of objections to our tentative decision in this order, we will not entertain petitions 

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 conclusions 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 State (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://www.regulations.gov
Appendix 

Issued by

Order 2013-

 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 Foreign 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, to 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, Texas; New York, New York;

Atlanta, Georgia; Chicago, Illinois; Miami, Florida; Dallas/Fort, Worth, Texas; and Los Angeles, 

California, on the other hand, and beyond; and

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.

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 Month XX, 2013. 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) upon 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 Government of the Russian Federation (or, if the right is partially eliminated, then the 
authority 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 Government 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, 2013.

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. 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 Principal Security 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 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.

11/2006