Order 2011

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UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C

.
Issued by the Department of Transportation

on the 13 th day of January, 2011

Served: January 13 , 201 1

Application of

VOLGA

- DNEPR AIRLINES LLC Docket DOT

- OST

- 2010

- 0276

for a 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 foreign

ai r carrier permit attached as the Appendix to this order.

Application

By application filed November 5, 2010, Volga

- Dnepr Airlines LLC (Volga

- Dnepr) , a foreign air

carrier of the Russian Federation, reque sts a foreign air carrier permit under 49 U.S.C. §4 1301, to conduct: 1) charter foreign air transportation of property and mail between a ny point or points in

the Russian Federation and any point or points in the United States ; and 2) other all

- cargo charters subject to the provisions of 14 CFR part 212.

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.

Tentative Findings and Conclusions

We tentatively find and conclude that the p ublic interest warrants granting the applicant a foreign air carrier permit, in the form attached as the Appendix to this order, and subject to the

conditions attached. 1

1 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 autho rity 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. In particular, we tentatively find that grant of this authority is in the public

inte rest; that the applicant has demonstrated, based on the record, that it is financially and2 operationally fit to perform the services authorized ; 2 and that it is substantially owned and effectively controlled by citizens of its claimed homeland. 3

T he aut hority sought by the applicant is encompassed by the Air Transport Agreement between

the Unit ed States and the Russian Federation

. 4 We also note that the applicant is properly licensed by its homeland to perform the proposed services. In addition, by mem orandum dated

December 6 , 20 10 , 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, in the conduct of the charter services tentatively authorized herein, Volga

- Dnepr must adhere to (1) the conditions attached to this order; (2) FAA

- approved flight routings; and (3) the Air Transport Agreement between the United States and the Russian Federation, including its Annexes. In accordance with 14 CFR §212.9(d) and (e) of the Department’s rules Volga

- Dnepr shall not perform any charter(s) unless specific authority in the form of a statement of

authoriz ation 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, 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 applicant 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 substantiall y owned and effectively controlled by citizens of its claimed homeland;

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 Conservati on Act of 1975, as defined in 14 CFR §313.4(a)(1) of our regulations; 5

2 The applicant has requested confidential trea tment of its financial submissions, under the provisions of 14 CFR§302.12. Good cause having been shown, we will grant this request.

3 Volga

- Dnepr states that its reportable capital stock is held by seven different entities, all of which are 100% owned by citizens of the Russian Federation. Volga

- Dnepr further states that all of its officers and key management personnel are citizens of the Russian Federation.

4 On February 13, 2009, the United States and the Russian Federation agreed, ad referendum , to re vised 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.

5 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.3 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 the date of receipt of advice from the President or his designee under Executive Order 12597 a nd implementing regulations that he or she does not intend to disapprove this portion of the Department’s decision under that section,

whichever occurs earlier.

ACCORDINGLY,

1. We direct all interested persons to show cause why our tentative decision on the application of Volga

- Dnepr Airlines LLC, set forth above, should not be made final;

2. 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 fore ign 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 day s thereafter;

3. 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;

4. In the event no objections are filed, all further procedural s teps 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

5. We will serve a cop y of this order on Volga

- Dnepr Airlines LLC , the Ambassador of the

Russian Federation in Washington, D.C., the Department of State, and the Federal Aviation

Administration.

By:

PAUL L. GRETCH

Director

Office of International Aviation

(SEAL)

Appendix An electronic version of this document is available on the World Wide Web at: http://www.regulations.govAppendix

Issued by

Order 20 1 1

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UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECR ETARY WASHINGTON, D.C.



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



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



### VOLGA

- DNEPR 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 charter foreign air transportation of property and mail as follows:

Between any po int 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 provisio ns 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 Russian Federation are or shall become part ies.

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 liquidation of the holder t o 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 airli nes 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

the Russian Federation. However, clause (4) of this paragraph sh all not apply if prior to such termination or expiration, the foreign air transportation authorized herein becomes the subject of2 another treaty, convention or agreement to which the United States and the Russian Federation 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)Attachment Foreign Air Carrier Permit Conditions

In the conduct of the operations authorized, the fo reign 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 requirement s 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 app licable. 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 f or 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 determin ed 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 cove rage, 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 aircr aft 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) E xcept 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 governi ng 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. agen cies 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 trans ferred without explicit Department approval under Title 49 of the U.S. Code.

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