UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on July 12, 2010

NOTICE OF ACTION TAKE N -- DOCKET DOT-OST-2010-0093

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

Applicant: Open Joint Stock Company Transaero Airlines (Transaero) Date Filed: June 28, 2010

Relief requested: Amended exemption under 49 USC § 40109 to engage in scheduled foreign air transportation of persons, property, and mail from any point or points behind the Russian Federation, via any point or points in the Russian Federation and intermediate points, to New York, New York and Miami, Florida. 1

Applicant rep: Gerald F. Murphy, 202-624-2500 DOT analyst: Thuy H. Cooper, 202-366-5423

Responsive pleadings: None filed

DISPOSITION

Action: Approved (subject to conditions, see belo w). Action date: July 12, 2010

Effective dates of exemption authority granted: July 12, 2010, through July 12, 2011

Basis for approval (bilateral agreement/reciprocity): The author ity granted is consistent with the Annexes to the 1994 U.S.–Russian Federation Air Transport Agreement. 2

Except to the extent exempted/waived, this authority is subj ect to the terms, conditions, a nd limitations indicated:

X Standard foreign air carrier exemption conditions (a ttached), and conditions contained in Order 2010-6-11

Special conditions/Remarks: We acted on this application without awaiting expiration of the answer period with the consent of all parties served with the application.

Action taken by: Paul L. Gretch, Director

Office of International Aviation

____________________________________________________________________________________________________________________ Under authority assigned by the Department in its regula tions, 14 CFR Part 385, we found that (1) our action was consistent with Department policy; (2) the applicant was qua lified to perform its proposed operations; (3) grant of the authority was consistent with the public interest; and (4) 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, we denied all requests in the referenced Dockets. We may amend, modify, or revoke the authority granted in this Notice at any time without hearing at our discretion.

1 Transaero currently holds exemption authority in this docket for (i) scheduled foreign transportation of persons, property, an d mail between Moscow, Russian Federation, on the one hand, and New York, New York, and Miami, Florida, on the other hand; (ii) charter foreign transportation of pers ons, property, and mail between points in the Russian Federation and points in the U nited States; and (iii) other charters pursuant to the prior approval requirements set forth in the Department’s regulations governin g charters. See Order 2010-6-11. Transaero asks that we expand its scheduled authority so that it can sell tickets between other points in its network (both intra-Russian and third country points) and Miami and New York, via Moscow.

2 On February 13, 2009, 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 en try into force, the respective aeronautical authorities intend to implement the provisions of those Annexes on the basis of comity and reciprocity.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 thei r petitions within seven (7) days after th e 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.govATTACHMENT Foreign Carrier Exemption Conditions

In the conduct of the operations author ized, the foreign carrier applicant shall:

(1) Not conduct any operations unless it holds a currently effective aut horization from its homeland for such operations, and it has filed a copy of su ch authorization with the Department;

(2) Comply with all applicable requirements of the Fe deral 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 secur ity, 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) (fo rmerly 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 ev idence of such coverage, in the form of a completed OST Form 6411, with the Federal Aviation Administration’s Pr ogram Management Branch (AFS-260), Flight Standards Service (any changes to, or termination of, insu rance also shall be filed with that office);

(4) Not operate aircraft under this authority unless it compli es 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 fo r in a Department Order, comply with the requirements of 14 CFR Part 203, concerning waiver of Wa rsaw Convention liability limits and defenses;

(7) Agree that operations under this au thority 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 inte rnational air transportation that, according to the contract of carriage, include a point in the United States as a point of orig in, 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 St ates. In this condition, the term "international air transportation" means "international tran sportation" as defined by the Warsaw Convention, except that all States shall be considered to be High C ontracting 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 otherwi se provided in the applicable aviation agreement, comply with the Department's rule s 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 re gulations of other U.S. agenci es and courts, and with all applicable laws of the United States.

This authority shall not be effective during any period wh en 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.

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