UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on June 5 , 20 1 4



### NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

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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 : CEBU AIR, I NC. d/b/a CEBU PACIFIC AIR ( Cebu ) Date s Filed: November 8, 2013 and April 14, 2014

Relief requested: Renewal of e xemption from 49 USC § 4 1301 to engage in (i) scheduled foreign air transportation of persons, property and mail from the Phili ppines via intermediate points to Honolulu, San Francisco, Los Angeles, Guam, Saipan, and four additional points in the United States selected by the Philippines, and beyond to five countries selected by the Philippines; and ( ii ) charter foreign air transp ortation in accordance with the requirements of 14 C.F.R.

Part 212

.

The applicant further requests amendment of its exemption authority to remove the wet lease condition so that it may conduct its authorized operations using its own aircraft and crews. 1

Date and citation of last action: November 15, 2012, in this Docket.

Applicant representative: Charles F. Donley II

, (202) 626

- 6840 DOT ana lyst: Brett D. Kruger ( 202 ) 366

- 8025

Responsive pleadings: None.

DISPOSITION

Action: Approved. Action date: June 5 , 2014

Effective dates of authority granted: June 5 , 201 4 , through June 5 , 2015.

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

- Philippines Air Transport Agreement

.

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our standard exemption conditions (attached).

Action taken by: Paul L. Gretch, Director, Office of Inter national Aviation

________________________________________________________________________________________________________ Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our action was consistent w ith Dep artment policy; (2) the applicant was qualified 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 an d Conservation Act of 1975. To the extent not granted/deferred/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.

1 When we originally granted Cebu its exemption authority the Philippines was a Category 2 country under the FAA’s International Safety Assessment Program (IASA). We therefore limited Cebu to operations conducted only by wet leasing aircraft from a duly authorized and properly supervised U.S. or foreign air carrier. See Notice of Action Taken dated November 15, 2012, in this

Docket. The FAA has now announced that the Philippines has achieved IASA Category 1 status, and Cebu has accordingly sought amendment of its authority to remove the wet lease restriction. We would note that on May 28, 2014 , the FAA advised us that it knew of no reason why we should act unfavorably on the applicant’s request

.Persons entitl ed 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 effec tive

when ta ken, 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.gov

### Foreign Carrier Exemptio n 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 a uthorization 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 flight s) 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 I IR 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 airwort hiness 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 "int ernational 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 b y 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 au thorized, 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 th e 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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