Order 2011

- 5

- 11

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 May

, 20 1 1

Served: May 12 , 2011

Application of

XL AIRWAYS FRANCE Docket DOT

- OST

- 2008

- 0062

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

ORDER GRANTING EXEMPTION AND TO SHOW CAUSE

Summary

By this order we (1) grant the application of the referenced foreign air carrier for renewal of its exemption under 49 U.S.C. §40109, subject to conditions; 1 and (2) tentatively find that it is in the public interest to grant the applicant a foreign air carrier permit attached as Appendix B to this order.

Background

By Notice dated May 3, 2007, we invited foreign air carriers of the European Union (EU) to apply for Department economic authority to conduct operations to and from the United States under t he U.S.

- EU Air Transport Agreement. In that Notice, we stated our intent to process requests for this authority under the “streamlining” procedures set out in our August 23, 2005 Notice in Docket OST

- 2005

- 22228, in which we announced several steps designe d to simplify our regulatory procedures for licensing foreign (and U.S.) air carriers. Our action in this Order serves to implement those streamlined regulatory procedures for the application involved in this proceeding.

A pplication

By application filed March 18, 2011, XL Airways France

, a foreign air carrier of France

, requests
renewal of its exemption under 49 U.S.C. § 40109 2 and a foreign air carrier permit under

49 U.S.C. §41301, to engage in :

1 The conditions are attached as Appendix A.

2 See Notice of Action Taken dated March 31, 2009, in this Docket.2

a. foreign scheduled and charter air transportation of persons
, property , and mail from any point or points behind any Member State of the European Union, via any point or points in any

M ember State and via intermediate points

, to any point or points in the United States and beyond ;

b. foreign scheduled and char ter air transportation of persons
, property , and mail between any point or points in the United States and any point or points in any member of the European

Common Aviation Area ;

c. foreign scheduled and charter cargo air transportation between any point or points in the United States and any other point or points ;

d. o ther charter s pursuant to the prior approval requirements set forth in Part 212 of the Department’s Economic Regulations ; and

e. transportation authorized by any additional route rights made available to European Union

carriers in the future.

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

No answers were filed to the application.

Decision

We have decided, consistent with our August 23, 2005 Notice referenced above, to grant the applicant’s request for renewal of its exemption authority, subject to conditions, and tentatively to grant, subjec t to show

- cause procedures, its request for a foreign air carrier permit, also subject to

conditions.

Specifically, we w ill grant the request of XL Airways France for rene wal of its exemption authority for the services set forth in ordering paragraph 1 be low. 3 We will also tentatively grant XL Airways

France a foreign air carrier permit for these services, as discussed below.

With respect to the applicant’s request for renewal of its exemption authority, we find that grant of this authority, as conditi oned, is consistent with the public interest . We also find that the applicant is financially and operationally qualified to perform the services authorized

, and that it is substantially owned and effectively controlled by citizens of Member States of the European Union, consistent with the provisions of the U

. S.

- EU Agreement

. 4 We also find that the authority sought by the applicant is encompassed by the U.S.

- EU Agreement.

3 We note t hat XL Airways France’s exemption authority to conduct transportation authorized by any additional route rights made available to European Union carriers in the future was granted subject to the requirement that, before it commences any new service under t his authority, XL Airways France must provide, in Docket DOT

- OST

- 2008

- 0062 , evidence that it holds a homeland license for that new service, unless it has already provided such evidence . We are granting renewal of that authority by exemption (and tentative ly granting it by foreign air carrier permit) subject to the same requirement.

4 We make this finding based on Article 2 (Reciprocal Recognition of Regulatory Determinations with Regard to Airline Fitness and Citizenship) of the Protocol to amend the U.S.

- EU Air Transport Agreement, signed June 24, 2010.3

Further, we note that the applicant is properly licensed by its homeland to perfo rm the proposed services. In addition, on April 29, 2011, 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 20 3 (Warsaw liability waiver) and 205 (insurance requirements).

In view of the above, we find that grant of the requested exemption authority, as conditioned, for a

two

- year term, or until the requested permit authority becomes effective, whichever occurs e arlier, is

warranted.

Tentative Findings and Conclusions

-- Foreign Air Carrier Permit Application

We tentatively find and conclude that the public interest warrants granting the applicant a foreign air carrier permit, in the form attached as Appendix B an d subject to the conditions attached. 5 In particular, we tentatively find and conclude that the factors which support our grant of renewed exemption authority to the applicant, as discussed above, also warrant granting the applicant the

f

oreign air carrier permit it seeks.

In view of the foregoing and all facts of record, and acting under authority assigned by the Department in its regulations, 14 CFR Part 385, we tentatively find and conclude that:

1. It is in the public interest to issue the app licant a 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 Member States of the

E uropean U nion ;

4 . The public interest requires that the exercise of the privileges granted by the 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; 6

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

7 . Our action with respect to this 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 th e 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

.

5 The applicant’s request for a foreign air carrier permit was summarized in the Department’s published weekly list of applications filed. This notice described the authority sought and gave inter ested 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.

6 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.4

In view of the above, and acting under authority assigned by the Department in its regulations, 14 CFR Part 385, we find that (1) our actions are consistent with Department policy; and (2) with respect to the exemption authority we are conferring on the app licant, the applicant is qualified to perform those operations; and that grant of the exemption authority is consistent with the public interest and would not constitute a major regulatory action under the Energy Policy and Conservation

Act of 1975.

ACCORDINGLY,

1. We grant the request of XL Airways France for renewal of its exemption under 49 U.S.C. §40109

for the services set forth below:

a. foreign scheduled and charter air transportation of persons

, property , and mail from any point or points beh ind any Member State of the European Union, via any point or points in any Member State and via intermediate points to any point or points in the United States and beyond;

b. foreign scheduled and charter air transportation of persons

, property , and mail bet ween any point or points in the United States and any point or points in any member of the European Common Aviation Area;

c. foreign scheduled and charter cargo air transportation between any point or points in the United States and any other point or point s;

d. other charters pursuant to the prior approval requirements set forth in 14 CFR Part 212 of the Department’s regulations; and

e. transportation authorized by any additional route rights made available to European Union

carriers in the future.

2 . The exercise of the privileges granted above is subject to compliance by XL Airways France with the conditions listed in Appendix A;

3 . Our action granting the exemption authority described herein

, subject to the provisions of ordering paragraph s 1 an d 2 above, is effective immediately, for a period of two years from the issue date of this order, or until the attached permit becomes effective, whichever is earlier;

4 . We may amend, modify, or revoke the exemption authority set forth herein at our dis cretion at any time and without hearing;

5 . To the extent not acted upon above, we dismiss all requests for exemption authority in this Docket ( DOT

- OST

- 2008

- 0062 );

6 . With respect to the applicant’s request for a foreign air carrier permit in this proc eeding, we direct all interested persons to show cause why our tentative decision on that application, set forth above, should not be made final;5

7

. 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;

8

. 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;

9

. 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 concl usions set forth in this order; and

1 0 . We will serve a copy of this order on XL Airways France

, the Embassy of France in Washington

, D.C., the Department of State, and the Federal Aviation Administration.

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.govForeign Air Carrier Exemption Conditions Appendix A

In the conduct of the operations authorized, the foreign carrier applicant 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 a ll 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) (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 determined that security is adequate to allow such airport(s) to be served;

(3) Comply with the requiremen ts 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 Prog ram 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 equiv alent 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 t hose 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 Stat es 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 th is definition;

(8) Except as specifically authorized by the Department, originate or terminate all flights to/from the United States in a Member State of the European Union;

(9) Comply with the requirements of 14 CFR Part 217, concerning the reporting of schedul ed, 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 St ates.

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.

EU carrier 0 1 /200 8Appendix B

Issued by

Order 20 1 1

- X

- X

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.



### -------------------------------------------------------- PERMIT TO FOREIGN AIR CARRIER



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

XL AIRWAYS FRANCE

A Foreign Air Carrier of France

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:

F oreign scheduled and charter air transportation of persons

, property , and mail from any point or points behind any Member State of the European Union, via any point or points in any Member St ate and via intermediate points to any point or points in the United States and beyond;

F oreign scheduled and charter air transportation of persons , property, and mail between any point or points in the United States and any point or points in any

member of the European Common Aviation Area;

Foreign scheduled and charter cargo air transportation between any point or points in the United States and any other point or points ;

O ther charters pursuant to the prior approval requirements set forth in 14 CFR P art

212 of the Departme nt’s regulations; and

Transportation authorized by any additional route rights made available to European Union carriers in the future; provided, that the holder shall, before it commences any new service under such additional route rights, provide the Department with evidence that it holds a homeland license for that new service (unless it has already provided such evidence to the Department). Suc h evidence

shall be filed in Docket DOT

- OST

- 2008

- 0062

.

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 al l 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

__________ . 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 liquida tion 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 right for the service authorized by this permit from the service which may be operate d by airlines of the European Union and its Member States (or, if the right is partially eliminated, then the authority of this permit shall terminate in like part); or (3) upon the termination or expiration of the applicable air services agreement between the United States and the European Union and its Member States. However, clause (3) 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, conv ention or agreement to which the United States and the European Union and its Member States become parties.

The Department of Transportation has executed this permit and affixed its seal on

________.

By:

PAUL L. GRETCH

Director

Office of International Aviation



### (SEAL)Foreign Air Carrier Permit Conditions

In the conduct of the operations authorized, the foreign carrier applicant 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 Uni ted 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 determined that s ecurity 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 transpor tation 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 th at 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 a Member State of the European Union;

(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 ca nnot be sold or otherwise transferred without explicit Department approval under Title 49 of the U.S. Code.

EU carrier 01/2008