Order 201 5

- 1

- 20

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 23 rd day of January

, 201 5

Served: January 23 , 201 5

Application of

JIN AIR COMPANY, LIMITED Docket DOT

- OST

- 2009

- 0310

Docket DOT

- OST

- 2012

- 0194

for exemption renewal under 49 U.S.C. § 40109 and an

a mended f oreign a ir c arrier p ermit under 49 U.S.C. § 4130 1

ORDER GRANT ING 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. § 4010 9 , subject to conditions 1 , and (2) tentatively find that it is in the public interest to grant the applicant an amended foreign air carrier permit attached as Appendix B t o this order.

Background

On August 2 3, 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)

1 The conditions are attached as Appendix A.tentatively deciding ( i.e. , show

- cause) to award a corresponding certificate (or permit), again for the standard du ration 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 regime s).

Our action in this Order serves to implement these streamlined regulatory procedures for the application involved in this proceeding.

Application

By application filed October 3, 2014

, ( as supplemented on November 26,2014 )

, Jin Air Company, Limited ( Jin Air) , a foreign air carrier of the Republic of Korea

, requests : 1)

renewal of its current exemption under 49 U.S.C. § 40109 2 and amendment of its foreign air carrier permit under 49 U.S.C. § 41301 3

, to permit it to engage in scheduled foreign air transportation of persons, proper ty, and mail from points behind the Republic of Korea via the Republic of Korea and intermediate points to a point or points in the United States and beyond

.

The applicant provided evidentiary materials required by 14 CFR Part 211 of our reg ulations to support its request for authority.

No answers were filed to the application.

Decision

We have decided , under assigned authority and consistent with our August 23, 2005 Notice reference above, to grant the applicant’s r equest for renewal of its exemption authority, subject to conditions, and tentatively to grant, subject to show

- cause procedures, its request for an amended foreign air carrier permit, also subject to conditions.

With respect to the applicant’s request for renewal of its exemption authority, we find that grant of this authority, as conditioned, is consistent with the public interest. We also find that

2 Jin Air’s exemption authority permits it to engage in scheduled foreign air transportation of persons, property, and mail from points behind the Republic of Korea via the Republic of Korea and intermediate points to a point or points in the United States and beyond. See Notice of Action Taken dated November 20, 2012 in Docket

DOT

- OST

- 2012

- 0194.

3 Jin Air’s current foreign air carrier permit authorizes it to engage in (i) scheduled foreign air transportation of persons, property, and mail between Seoul, Republic of Korea, on the one hand, and Guam, on the other hand; and (ii) charter foreign air transportation of persons, property, and mail between any point or points in the Republic of Korea and any point or points in the United States, and between any p oint or points in the United States and any point or points in a third country or countries, provided that such service constitutes part of a continuous operation, with or without a change of aircraft, that includes service to the Republic of Korea for the purpose of carrying local traffic between the Republic of Korea and the United States. See Order 2010

- 4

- 12 dated April 20 , 2010 in Docket DOT

- OST

- 2009

- 0310.the applicant has demonstrated, based on the record, that it is financially and operationally qualified to perform the services authorized, and that it is substantially owned and effectively

controlled by citizens of its claimed homeland. 4

The authority sought by the applicant is encompassed by the Air Transport Agreement

between the United States and the Republic of Korea. 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.

Further, we note that the applicant is properly l icensed by its homeland to perform the proposed services. In addition, on October 27 , 2014, 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 Part 203 (Warsaw liability waiver) and 205 (insurance requirements).

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

- year term, or until the requested permit auth ority becomes effective, whichever occurs earlier, is warranted.

Tentative Findings and Conclusions

— Amended Foreign Air Carrier Permit Application

We tentatively find and conclude that the public interest warrants granting the applicant a n amended fore ign air carrier permit, in the form attached as the Appendix B to this order, and subject to the conditions attached. 5 In particular, w e 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 foreign 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 tenta tively find and conclude that:

1. It is in the public interest to issue the applicant a n amended 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;

4 The record indicates that the applicant is wholly owned by Hanjin Kal Co., Ltd. (Hanjin Kal), a South Korean company whose shares are publicly traded on the Korean Stock Exchange. The record further indicates that

8 7.5% of the shares of Hanjin Kal are held by South Korean citizens and the remaining 12.5% are held by foreign investors. In addition, the applicant states that its President/CEO, directors, and all other key management personnel are citizens of South Korea.

5 The applicant’s request for a n amended foreign air carrier permit was summarized in the Department’s published weekly list of applications filed. Th is notice described the authority sought and gave interested persons an opportunity to submit evidence and objections to the award of this foreig n air carrier permit authority. As noted above, no answers to the application were filed.3. The applicant is substantially owned and effectively controlled by citizens of the Republic

of Korea ;

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 r egulations; 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, becom e 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 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 r egulatory action under the Energy Policy and Conservation Act of 1975.

ACCORDINGLY,

1. We grant the request of Jin Air Company, Limited for renewal of its exemption under 49 U.S.C. § 40109 to engage in scheduled foreign air transportation of persons, property, and mail from points behind the Republic of Korea via the Republic of Korea and intermediate points to a point or points in the United States and beyond ;

2. The exercise of the privileges granted above is subject to compliance by to Jin Air

Com pany, Limited with the conditions listed in Appendix A;

3. Our action granting the exemption authority described herein, subject to the provisions of ordering paragraphs 1 and 2 above, is effective immediately, for a period of two years from

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 gallon s or more.the issue da te 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 discretion at any time without hearing;

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

- OST

- 2009

- 0310 and DOT

- OST

- 2012

- 0194);

6. With respect to the applicant’s request for a n amended 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;

7. Any interested person objecting to the issuance of an order makin g 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 pa rties 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 object ions if objections are filed, answers to 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 and order which will (subject to Presidential review under §41307 of Title 49 of the U.S. Code) ma ke final our tentative findings and conclusions set forth in this order; and

10. We will serve a copy of this order on Jin Air Company, Limited ; the Ambassador of the Republic of Korea to the United States in Washington, D.C. ; the Department of State (Office of Aviation Negotiations) ; and the Federal Aviation Administration

.

By:

PAUL L. GRETCH

Director

Office of International A viation (SEAL) Appendices

An electronic version of this document is available on the World Wide Web at: http://www.regulations.govForeign Carrier Exemption Conditions Appendix A

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 Departmen t;

(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 Tra nsportation 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 operat ions 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 re quirements 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 th e 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 w ith 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.

12/2007Appendix B

Issued by

Order 2015

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UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.



### -------------------------------------------------------- PERMIT TO FOREIGN AIR CARRIER (as amended)



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



### Jin Air Company, Limited

A F oreign Air Carrie r of the Republic of Korea

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 :

Scheduled foreign air transportation of persons, property, and mail from points behind the Republic of Korea via the Republic of Korea and intermediate points to a point or points in the United States and beyond ; and

C harter foreign air transportation of persons, property, and mail between any point or points in the Republic of Korea 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, provided that such service constitutes part of a continu ous operation, with or without a change of aircraft, that includes service to the Republic of Korea for the purpose of carrying local traffic between the Republic of Korea and 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 l imitations 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 per iod 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 applic able 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 o f 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 Republic of

Korea (or, if the right is partially eliminated, then the authority of this permi t 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 Republic of Korea in lieu of the holder; or (4) upon the termination or expiration of the applicab le air services agreement between the United States and the Republic of Korea . 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

anothe r treaty, convention or agreement to which the United States and the Republic of Korea become parties.

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

___________.

By:

PAUL L. GRETCH

Director

Office of International Avi ation 

### (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 Principa l 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 (AF S

- 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 t he 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 acti ons 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 po int 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 Un ited 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

definit ion;

(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

char ter 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 shal l 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.

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