UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on March 25 , 20 1 1



### NOTICE OF ACTION TAKEN

-- 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 will be issued in this matter).

Applicant : OPEN JOINT STOCK COMPANY TRANSAERO AIRLINES (Transaero)

Date Filed: February 28

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Relief requested: Amended e xemption from 49 USC § 41301 to permit the applicant to engage in scheduled foreign air transportation of persons, property and mail from any point or p oints behind the Russian Federation, via any point or points in the Russian Federation and intermediate poi nts, to Los Angeles, California

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Applicant representative: Gerald F. Murphy

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- 2500 DOT ana lyst: Brett D. Kruger 202

- 366

- 8025

Responsive pleadings: None.

DISPOSITION

Action: Approved (subject to conditions, see below)

. Action date: March 25 , 20 1 1

Effective dates of authority granted: Ma rch 25 , 20 1 1 , through March 25 , 20 1 2

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Basis for approval (bil ateral agreement /reciprocity): The authority granted is consistent with the Annexes to the 1994

U.S.

- Russian Federation Air Transport Agreement

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Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our standard

ex emption conditions (attached) , and to the conditions contained in Order 2010

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

_____________________________________________________________________________________________ ___________ Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our action was consistent w ith Department policy; (2) the applicant was qualified to perform its proposed operations; (3) grant of the authority w as 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 referen ced Docket. We may amend, modify, or revoke the authority granted in this Notice at any time without hearing at our discretion.

Persons entitled to petition the Department for review of the action set forth in this Notice under the Department’s regulati o ns, 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 taken, and the filing of a petition for review will not alter such effectiveness.

An electronic version of this d ocument is available on the World Wide Web at: http://www.regulations.gov

1 Transaero currently holds exemption authority in this docket for (i) scheduled foreign transportation of persons, property, a nd mail from any po int 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; (ii) charter foreign transportation of persons, property, and mail between points in the Russi an Federation and points in the United States; and (iii) other charters pursuant to the prior approval requirements set forth in the Department’s regulations governing charters. See Order 2010

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- 11 , as amended by Notice of Action Taken dated July 12, 2010, in this Docket

. Transaero asks that we expand its scheduled authority so that it can provide twice

- weekly flights between Moscow and Los Angeles

. 2 On February 13, 2009, the United States and the Russian Federation agreed, ad referendum , to revised Annex es to the U.S.

- Russia Air Transport Agreement and stated that, pending their entry into force, the respective aeronautical authorities inten d to implement the provisions of those Annexes on the basis of comity and reciprocity

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### Foreign Carrier Exemption Conditions

In the conduct of the operations authorized, the foreign carrier applicant(s) shall:

(1) Not con duct 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 Administ ration, 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 wit h 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 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 a llow 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 compl eted 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 authorit y 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 spec ifically 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 o f 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 transpo rtation 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 cla im 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 wit h 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 oth er 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 oth erwise transferred without explicit Department approval under Title 49 of the U.S. Code.

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