Order 2010-11-20

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

on the 18th day of November, 2010

Served: November 18, 2010

Application of

MIDEX AIRLINES Docket DOT-OST-2010-0238

 

for an exemption 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 an 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 the foreign air carrier permit attached as Appendix B to this order.

Background

On August 23, 2005, the Department issued a Notice, in Docket DOT-OST-2005-22228,

announcing several steps designed to streamline our regulatory procedures for licensing U.S. and 

foreign air carriers. Among other things, the Notice stated that:

Assuming, based on the record and on the public interest/public convenience and 

necessity elements germane to our licensing decisions, that we were in a position to act 

favorably, we would proceed to issue a single order (1) granting the exemption request 

for whatever duration we would normally have imposed, or until certificate/permit 

authority becomes effective, whichever is shorter, and (2) tentatively deciding (i.e., 

show-cause) to award a corresponding certificate (or permit), again for the standard 

duration we would normally have imposed (such as, in the case of certificates, five years 

for limited-entry markets, indefinite for open-entry markets, and in the case of permits, 

five years for comity and reciprocity regimes, indefinite for agreement regimes).

 1 The conditions are attached as Appendix A.
Our action in this Order serves to implement these streamlined regulatory procedures for the 

application involved in this proceeding.

Application

By application filed September 21, 2010 (as supplemented), MIDEX AIRLINES (MIDEX), a 

foreign air carrier of the United Arab Emirates, requests an exemption under 49 U.S.C. §40109,

and a foreign air carrier permit under 49 U.S.C. §41301, to engage in charter transportation of 

property and mail between the United Arab Emirates and the United States, and between the 

United States and any point or points in third countries.

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, under assigned authority and consistent with our August 23, 2005 Notice 

referenced above, to grant the applicant’s request for exemption authority, subject to conditions, 

and tentatively to grant, subject to show-cause procedures, its request for a foreign air carrier 

permit, also subject to conditions.

With respect to the applicant’s request for exemption authority, we find that grant of this 

authority is consistent with the public interest and that the applicant has demonstrated, based on 

the record, that it is financially and operationally qualified to perform the services authorized.

2

With respect to the ownership and control of the applicant, MIDEX states that one individual, a

citizen of the United Arab Emirates, owns 51% of the applicant and is also its Director General. 

The second owner, a dual citizen of the United States and Lebanon, owns 49% of the applicant 

and is also its President. MIDEX states that it does not have a board of directors and the record 

indicates that the remainder of its key management personnel are citizens of Lebanon, the United 

States, Jordan, New Zealand, Italy, the United Kingdom, and India. In spite of the fact that we 

are unable to find that MIDEX is substantially owned and effectively controlled by homeland 

nationals, we find it appropriate to waive our ownership and control requirements in the 

circumstances presented. The applicant is properly licensed by its homeland to perform the 

proposed services and there is no evidence on the record which would suggest that the ownership 

and control of the carrier would be inimical to U.S. aviation policy or interests. 

In addition, the authority sought by the applicant is encompassed by the Air Transport Agreement 

between the United States and the United Arab Emirates. We therefore find that grant of the 

requested exemption authority, for a two-year term, or until the requested permit authority 

becomes effective, whichever occurs earlier, is warranted.

 2 The applicant has requested confidential treatment of its traffic and financial forecasts, under the provisions of 

14 CFR §302.12. Good cause having been shown, we will grant this request.
We also note on November 2, 2010, 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).

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 and subject to the conditions attached.3

 In 

particular, we tentatively find and conclude that the factors which support our grant of exemption 

authority to the applicant also warrant granting the applicant the foreign air carrier permit it 

seeks.

In view of the foregoing and all facts of record, 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. A waiver of our ownership and control policy is warranted in the circumstances presented;

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;4

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 

 3 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 interested persons an opportunity to submit 

evidence and objections to the award of this foreign air carrier permit authority. As noted above, no answers to the 

application were filed.

4

 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.
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.

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 applicant, 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 MIDEX AIRLINES for an exemption under 49 U.S.C. §40109 to

permit it to engage in charter transportation of property and mail between: 1) any point or points 

in the United Arab Emirates and any point or points in the United States; and 2) between any 

point or points in the United States and any point or points in a third country or countries;

2. The exercise of the privileges granted above is subject to compliance by MIDEX AIRLINES

with the conditions listed in Appendix A;

3. We grant the request of MIDEX AIRLINES for confidential treatment of its traffic and 

financial forecasts, consistent with the provisions of 14 CFR §302.12;

4. Our action granting the exemption authority described herein 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;

5. We may amend, modify, or revoke the exemption authority set forth herein at our discretion at 

any time and without hearing;

6. To the extent not acted upon above, we dismiss the applicant’s request for exemption 

authority in this Docket (DOT-OST-2010-0238);

7. With respect to the applicant’s request for a foreign air carrier permit in this proceeding, we 

direct all interested persons to show cause why our tentative decision on that application, set 

forth above, should not be made final;

8. 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 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 to objections are due no later than seven (7) calendar days 

thereafter;

9. 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;

10. 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 conclusions set forth in this 

order; and

11. We will serve a copy of this order on the applicant, the Ambassador of the United Arab 

Emirates in Washington, D.C., the Federal Aviation Administration, and the U.S. Department of 

State.

Persons entitled to petition the Department for review of this order under the Department’s 

regulations, 14 CFR §385.30, may file their petitions within seven (7) days after the date of 

issuance of this order. Our action with respect to the applicant’s request for exemption authority 

under 49 U.S.C. §40109 is effective immediately, and the filing of a petition for review will not 

alter such effectiveness.

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.gov
Appendix A 

Foreign Carrier Exemption 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 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 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 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 (AFS260), 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 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 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 cannot be sold or otherwise transferred without explicit Department 

approval under Title 49 of the U.S. Code.

12/2007
Appendix B

Issued by

Order 2010-X-X

 UNITED STATES OF AMERICA 

 DEPARTMENT OF TRANSPORTATION 

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

--------------------------------------------------------

PERMIT TO FOREIGN AIR CARRIER

---------------------------------------------------------

MIDEX AIRLINES

A Foreign Air Carrier of the Republic of the United Arab Emirates

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:

Between any point or points in the United Arab Emirates and any point or points in the 

United States; and

Between any point or points in the United States and any point or points in a third

country or countries.

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 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 , 2010. 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 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 bilateral right for the service authorized by this permit from the service 

which may be operated by airlines designated by the Government of the United Arab Emirates

(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 United Arab Emirates in lieu of the holder; or (4) upon the 

termination or expiration of the applicable air services agreement between the United States and 

the United Arab Emirates. However, clause (4) 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, convention or agreement to which the United States and the United Arab Emirates

become parties.

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

 , 2010.

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(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 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 

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 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 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 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 cannot be sold or otherwise transferred without explicit Department 

approval under Title 49 of the U.S. Code.

12/2007