\\DC - 026524/000001 - 6908698 v6 Expedited Consideration Requested

August 18, 2015 By Electronic Submission U.S. Department of Transportation Docket Management System 1200 New Jersey Avenue, SE Washington, DC 20590 Re: Joint Petition of Atlas Air, Inc. and Kalitta Air LLC for Extension of FAA Exemption No. 11096 (Docket No. FAA-2014-0184)

Dear Sir or Madam: Pursuant to 14 C.F.R. Part 11, Atlas Air, Inc. (“Atlas”) and Kalitta Air LLC (collectively, “Petitioners”) hereby petition the Federal Aviation Administration (“FAA”) for an extension of FAA Exemption No. 11096. 1 Exemption No. 11096 granted Petitioners an exemption from 14 C.F.R. §§ 91.9(a), 91.1025(a), 121.135(a)(4), 121.135(b)(21), and 121.141 to not apply the forward emergency landing load factor of 9G specified in § 25.561(b)(3)(ii) for restraint of cargo on the main deck of Boeing 747 series freighter aircraft. This relief was limited to the transport of cargo originating in

1 Original exemption holder, Southern Air, Inc., no longer operates B-747 freighter aircraft and thus is not a Joint Petitioner herein. Original exemption holder World Airways is no longer in business.Joint Petition for Extension of Exemption No. 11096 Page 2

\\DC - 026524/000001 - 6908698 v6 Afghanistan for the U.S. Department of Defense (“DOD”) for a period of one year (i.e., through October 31, 2015). Petitioners request that the duration of the Exemption be extended to December 15, 2016, which is one year from the expiration date of the similar one-year exemption granted to National Air Cargo Group, Inc., which expires December 15, 2015 (see Exemption No. 11125). 2 Extending Exemption No. 11096 would be in the public and national security interest because – as the FAA concluded in granting the original exemption on October 31, 2014 – it would enable Petitioners to continue carrying tall rigid cargo safely, efficiently, and cost-effectively in support of DOD’s ongoing mission-critical operations in Afghanistan. Moreover, the limited-duration continuation of this narrowly-tailored exemption would have no adverse impact on safety and would continue to provide a level of safety equivalent to the forward restraint requirement set forth in 14 C.F.R. § 25.561(b)(3). Petitioners believe that DOD’s demand for airlift capacity to transport tall rigid cargo out of Afghanistan is ongoing and will continue through 2016. At the same time, frangible cargo, which would enable the forward movement of tall rigid cargo to be restrained, continues to be unavailable for these missions. Without the continuation of the Exemption, however, Petitioners would no longer be able to carry tall rigid cargo and

2 To the extent that the FAA does not act on this Joint Petition prior to the October 31, 2015 “expiration” date, Petitioners hereby invoke and rely upon the automatic extension provisions of the Administrative Procedure Act, 5 U.S.C. § 558(c), in order to continue the effectiveness of the current Exemption No. 11096 pending the FAA’s final determination on this Joint Petition. For administrative convenience, the FAA may wish to grant an immediate extension to December 15, 2015, without soliciting comments, to align the Exemption with NAC’s expiration date, and thereafter to extend it by one year to December 15, 2016.Joint Petition for Extension of Exemption No. 11096 Page 3

\\DC - 026524/000001 - 6908698 v6 meet the critical needs of DOD. Accordingly, Petitioners respectfully request that the FAA expeditiously3 consider this Joint Petition and grant this request for an extension of Exemption No. 11096. Petitioners submit the following in further support of this Joint Petition for Extension of Exemption No. 110964:

I. BACKGROUND. A. The Petitioners. Atlas and Kalitta Air are Part 121 certificated U.S. air carriers, operating B-747 freighter aircraft throughout the world, which they wet-lease/charter to various customers, including the DOD and other U.S. Government agencies, as well as various airlines, freight forwarders, manufacturers, and relief organizations. In CY 2014, Atlas and its affiliated air carrier, Polar Air Cargo Worldwide, Inc., safely operated 28,245 flights to 432 airports in 123 countries for a variety of customers; and Kalitta Air safely operated more than 28,143 hours with 4,020 cycles to more than 130 countries around the globe. Thus far in 2015, Atlas has operated 21 flights (plus 3 more scheduled to be operated in August) originating in Afghanistan under Exemption No. 11096. Kalitta Air has operated 45 flights originating in Afghanistan under the Exemption.

3 As explained below, good cause also exists for the FAA to act on this Joint Petition for an extension without delay and without publishing a summary in the Federal Register or awaiting comments.

4 Petitioners hereby incorporate by reference all relevant information previously submitted in the above-referenced docket concerning the requested exemption.Joint Petition for Extension of Exemption No. 11096 Page 4

\\DC - 026524/000001 - 6908698 v6 B. Tall Rigid Cargo and the 9G Forward Restraint Requirement. The 9G forward restraint requirement stems from 14 C.F.R. § 25.561 and § 25.787, which establish aircraft design requirements and require that cargo stowage restraints handle forward inertia forces of 9G for tall rigid cargo. 5 Boeing is required by 14 C.F.R. § 21.5 to incorporate the design requirements into the manufacturer’s Aircraft Flight Manual (“AFM”), and 14 C.F.R. §§ 91.9, 91.1025(a), 121.135(a)(4), 121.135(b)(21), and 121.141 require U.S. air carriers to comply with the AFM. Boeing’s and Petitioners’ current weight & balance control and loading manuals for the B-747 freighter incorporate the restraint standards of 14 C.F.R. § 25.561(b)(3), and provide that tall rigid cargo must be restrained either to (1) a 9G forward load by using a cumbersome and complex arrangement of supplementary straps connected to aircraft tie-down points, or (2) a 1.5G (B-747-400F) or 1.2G (B-747-8F) forward flight load combined with a specific volume of frangible cargo placed in front of the tall rigid cargo, in either case in order to prevent the tall rigid cargo from shifting forward and impacting the upper deck and occupant areas. As detailed in the March 2014 Joint Petition, those two methods for transporting tall rigid cargo on the B-747 freighter are not economically feasible or practical.

5 As explained in detail in the original Joint Petition (dated March 18, 2014) (“March 2014 Joint Petition”), there are two principal categories of tall rigid cargo: (1) industry-standard 20-foot containers (ISO 1CC) which are 102 inches tall, and (2) other tall items, such as aircraft engines, generators, and large vehicles, which are taller than 98 inches.Joint Petition for Extension of Exemption No. 11096 Page 5

\\DC - 026524/000001 - 6908698 v6 First, there are only a limited number of tie-down positions on the B-747 freighter, which makes it virtually impossible to restrain tall rigid cargo to 9G and carry other
cargo. Second, it is extremely difficult, impractical, and uneconomical to use frangible cargo as a buffer. Indeed, sufficient frangible cargo is generally not available in Afghanistan for shipment on these DOD operations, and, in any event, military pallets (typically 88 inches wide, not the standard 96 inches) do not meet the width requirements for frangible cargo when tall rigid cargo is centerline-loaded on the B-747 freighter. As a result, absent the relief in Exemption No. 11096, such all-cargo flights are neither efficient nor cost-effective for DOD and the U.S. taxpayer. 6 As explained further in Section III.A below, Petitioners believe that there continues to be DOD demand for transporting tall rigid cargo by air out of Afghanistan and that such demand will continue through 2016. The B-747 freighter aircraft operated by Atlas and Kalitta Air are uniquely suited to transport such tall rigid cargo safely, efficiently, and cost-effectively. Indeed, B-747 freighter aircraft have carried such cargo safely for decades. However, with the continuing unavailability of “frangible” cargo, the ongoing DOD demand for tall rigid cargo air transportation, and the upcoming expiration of Exemption No. 11096, Petitioners face being unable to efficiently and effectively carry

6 Indeed, as detailed in the September 5, 2014 Supplement to the initial Joint Petition for relief, the affected carriers have lost essentially all of the business for transporting containers in shipments that are not required to be carried on U.S. aircraft.Joint Petition for Extension of Exemption No. 11096 Page 6

\\DC - 026524/000001 - 6908698 v6 tall rigid cargo for DOD. The requested extension of Exemption No. 11096 would avoid that result and the resulting harm to the public interest and national security. C. Exemption No. 11096. On March 18, 2014, Petitioners applied for an exemption from 14 C.F.R. §§ 91.9, 91.1025(a), 121.135(a)(4), 121.135(b)(21), and 121.141 in order to allow them to operate B-747 freighter aircraft while transporting tall rigid cargo restrained to withstand a 3G forward load. Airlines for America, Boeing, the Cargo Airline Association, and the National Air Carrier Association filed comments in support of the Joint Petition. On September 5, 2014, in response to a follow-up inquiry from the FAA, Petitioners submitted a supplemental response about the public interest and national security benefits that would result if the requested exemption was granted. On October 31, 2014, the FAA issued Exemption No. 11096 partially granting the requested exemption from the aforementioned FARs, subject to the following three conditions and limitations: “1. This exemption applies only to all-cargo flights originating in Afghanistan for the transport of cargo for the United States Department of Defense, including all flight segments to reach the intended final destination, provided the cargo or method to secure the cargo is not altered or changed prior to reaching the final destination. 2. All cargo must be secured for all flight loads as required by 14 CFR part 25, subpart C. This exemption provides no relief from 14 CFR part 25, subpart C, flight loads. 3. The flight crew must carry a copy of this exemption on all flights operated under his exemption. This exemption expires one year from the date of issuance of this exemption, unless sooner superseded or rescinded.”Joint Petition for Extension of Exemption No. 11096 Page 7

\\DC - 026524/000001 - 6908698 v6 Petitioners have been able to support the national security interests and DOD airlift requirements ex-Afghanistan by operating a total of 69 missions under this Exemption. The FAA subsequently issued the same exemption to National Air Cargo Group, Inc. (“NAC”) subject to the same conditions (see Exemption No. 11125), thereby providing the same relief to NAC as was provided to Petitioners in Exemption No. 11096. The expiration date for NAC’s Exemption is December 15, 2015, approximately 11⁄2 months later than the expiration date for Petitioners’ Exemption No. 11096.

II. THE REQUESTED EXTENSION OF EXEMPTION. Atlas and Kalitta Air seek an extension of Exemption No. 11096 in order to allow Petitioners to continue operating B-747 freighter aircraft while transporting tall rigid cargo without application of the forward emergency landing load factor of 9G. Petitioners will accept the conditions and limitations set forth in the current Exemption No. 11096 for the extended exemption. Petitioners request that (i) the FAA issue any extension of Exemption No. 11096 before October 31, 2015, and (ii) such extension not expire until at least December 15, 2016 – one year after the expiration of NAC’s current Exemption No. 11125.Joint Petition for Extension of Exemption No. 11096 Page 8

\\DC - 026524/000001 - 6908698 v6 III. EXTENSION OF THIS EXEMPTION CONTINUES TO BE IN THE PUBLIC INTEREST, WILL CONTINUE TO PROVIDE AN EQUIVALENT LEVEL OF SAFETY, AND IS CONSISTENT WITH FAA PRECEDENT. The inability of Petitioners to carry tall rigid cargo for DOD on a cost-effective and timely basis in the absence of the extension of Exemption No. 11096 remains an urgent issue, as the demand for air transportation to carry tall rigid cargo on behalf of DOD out of Afghanistan continues. Petitioners believe that this national security need will continue beyond October 2015 and through 2016, but Petitioners require that Exemption No. 11096 be extended in order to continue meeting that critical need. A. Extension of This Exemption Would Be in the Interests of National Security and the Public. Extending Exemption No. 11096 is in the national security and public interests because it will enable Atlas and Kalitta Air to safely, efficiently, and cost-effectively carry on their B-747 freighter aircraft tall rigid cargo, including multiple 20-foot sea containers, large equipment, and large vehicles, for U.S. military shippers. DOD needs access to reasonable, safe, and timely air transportation for its shipments of tall rigid cargo out of Afghanistan; but, without an extension of this exemption, DOD would have to rely on foreign-flag carriers and have fewer B-747 aircraft to handle these critical airlift missions. This, in turn, would lead to delays for the delivery of critical cargo and/or substantially increased costs for DOD and U.S. taxpayers to get the U.S. military’s cargo delivered. More specifically, if the tie-down method is used to meet the 9G requirement, the space required for strapping increases by 50% or more (five containers could be carried, but only three can be transportedJoint Petition for Extension of Exemption No. 11096 Page 9

\\DC - 026524/000001 - 6908698 v6 under the 9G forward restraint requirement). 7 For example, in a letter the Petitioners previously submitted in support of the original Petition, Diplomat Freight Services – which ships cargo between the Middle East and Afghanistan – stated that it moved 276 containers to and from Afghanistan in the first 71⁄2 months of 2014 – an average of about 40 per month. It stated that due to the need to comply with the 9G restriction, Kalitta Air was required to operate 37 more flights to transport the cargo than the number of flights that could have been operated without the 9G restriction. This resulted in an additional (and unnecessary) cost to the U.S. taxpayer of $4,625,000. See Supplemental Response of Petitioners (September 5, 2014), Exhibit 1: “Thus far in 2014 [through August 25, 2014], under numerous United States Transportation Command tenders, DFS, utilizing Kalitta Air, has shipped 276 Multi Modal twenty two foot containers, ex-Afghanistan. Given the restrictive FAA requirements we [DFS] were only able to load three (3) twenty foot containers on each flight. Without the restriction we would have been able to load five containers per flight, as was universal practice prior to the FAA restriction. Since we were only able to move three containers per flight on Kalitta Air, 92 flights were require[d] as compared to 55 flights if five containers were transported. . . .” DFS letter dated August 25, 2014. On the other hand, even if sufficient “frangible cargo” could be found in Afghanistan (which is not the case), 12-14 cargo positions (out of 29-30 such positions on the main deck) would need to be filled with frangible cargo, 8 resulting in a substantial loss of cargo capacity for DOD shipments. And if the flight will still operate

7 Before, 2-4 positions were required to secure a 20-foot container; now, 6 or more are required, depending on weight.

8 An even larger portion of the weight capacity of the B-747 is sacrificed, because the two positions with the greatest weight-bearing capacity – the over-wing positions – must be used for the frangible cargo.Joint Petition for Extension of Exemption No. 11096 Page 10

\\DC - 026524/000001 - 6908698 v6 notwithstanding that loss of cargo capacity, it takes approximately 10 hours to build up such a frangible load, causing flight delays and costing man-hours that could be better used for other mission-critical flights, in addition to putting Petitioners’ aircrew and aircraft at greater risk by extending the on-ground time in Afghanistan. In sum, absent the requested extension of Exemption No. 11096, Petitioners’ ability to provide this vital service will be significantly undermined, and the beneficiaries of this specialized airlift (the U.S. military), as well as national security, will be significantly and negatively affected. In Petitioners’ view, there remain ongoing national security and public interest needs for this Exemption and the tall rigid cargo airlift support it enables. In fact, the FAA already acknowledged as much by granting Exemption No. 11125 to NAC through December 15, 2015 (11⁄2 months after the “expiration” date of Petitioners’ Exemption). And, as U.S. activities in Afghanistan continue into 2016, DOD continues to move substantial amounts of equipment, including cargo now classified as tall rigid cargo such as industry-standard 20-foot Sea-Land containers, large vehicles and trailers, satellite equipment, large communications equipment, power generators, steel shelters, containerized aerial drones, containers of tents, uniforms, supplies, and office equipment, containerized high value shipments, and forklifts, among others, out of the country to other overseas locations or the United States. Petitioners anticipate that this critically important need will continue in 2016. Indeed, the DOD recently issued a CRAF RFP for international commercial air transportation to move DOD-approved cargoJoint Petition for Extension of Exemption No. 11096 Page 11

\\DC - 026524/000001 - 6908698 v6 for 2016, including Government Furnished Containers (e.g., 8.0’-9.5’ high x 8’ wide x 20/40’ long containers). 9 The new United States Transportation Command (USTRANSCOM) Multimodal-02 contracts 10 encompass not only Afghanistan, but worldwide operations. Operations to and from Afghanistan are specifically noted. For example, Section 1.21.2 of the RFP PWS provides: “When subcontracting for air transportation, the contractor shall use CRAF carriers to meet the requirement. CRAF carriage on U.S. flagged aircraft is required and only authorized when the consignor or consignee is at one of the following locations and/or all flights arriving at and/or departing from the following locations: Bagram, Mazar-i-Sharif, Kandahar, and Kabul [Afghanistan] . If technical requirements exceed (cargo size or weight) aircraft available by any CRAF carriers, the contractor shall only use carriers capable of performing the service and, at a minimum, comply with the technical requirements identified in the Safety and Audit Oversight Checklist.” (first emphasis in RFP PWS; second emphasis added). Moreover, all of Atlas’ flights under Exemption No. 11096 in 2015 involved the transportation of sea containers. Petitioners understand that there are several thousand containers still in Afghanistan, at least some of which will likely require airlift out of Afghanistan. But Petitioners can only continue supporting this massive effort to transport important, expensive tall rigid cargo out of Afghanistan and offering DOD more air transportation options and greatly enhanced flexibility to fulfill its mission-critical airlift

9 Multimodal-02 HTC711-15-R-R001, Attachment 1, Performance Work Statement (“RFP PWS”).

10 Contract HTC711-15-D-R044 Farrell Lines, Inc.; Contract HTC711-15-D-R045 Liberty Global Logistics, LLC. (LGL); Contract HTC711-15-D-R046 National Air Cargo Group, Inc. (NAC); Contract HTC711-15-D-R047 Kalitta Air, LLC; Contract HTC711-15-D-R048 American President Lines LTD, Inc. (APL); Contract HTC711-15-D-R049 United Air Lines, Inc.Joint Petition for Extension of Exemption No. 11096 Page 12

\\DC - 026524/000001 - 6908698 v6 needs in a timely and cost-effective manner if the FAA grants the requested extension of Exemption No. 11096. The FAA relied heavily on the national security and public interests at the core of this Joint Petition in granting Exemption No. 11096, stating: “The FAA has concluded that it is in the public interest to grant . . . [Exemption No. 11096]. This determination is based on . . . the importance of the mission as it relates to US National security.... The FAA has held discussions with the DoD regarding air carrier all cargo operational support for the DoD mission to remove military equipment out of Afghanistan by the end of 2014. This DoD effort began in 2013, involving the movement of approximately 24,000 vehicles and 20,000 shipping containers. In discussions with the DoD, DoD representatives have indicated that one mode of transit employed by the DoD to remove this cargo from Afghanistan is by the use of air cargo carriers. Existing limitations in air carrier cargo operator manuals limit the amount of cargo that can be carried on Boeing 747 cargo airplanes, which is one of the primary airplane models used for this mission. Representatives of the DoD have indicated that these limitations may inhibit the ability of the DoD to meet their planned mission requirement to remove military equipment from Afghanistan by the end of 2014. By easing the current limitations in the air carrier cargo operator manuals, this exemption would allow the petitioners to better support the DoD mission.” Exemption No. 11096 at 9-10. That conclusion remains valid today and at least through 2016. Nothing has changed with respect to the national security and public interest factors that would warrant not extending Exemption No. 11096. The FAA’s failure to timely extend Exemption No. 11096 as requested herein would substantially and negatively impact national security. It would essentially eliminate an otherwise cost-effective, efficient, and safe airlift option used to support America’s warfighters and reduce DOD’s flexibility to support those critical missions.Joint Petition for Extension of Exemption No. 11096 Page 13

\\DC - 026524/000001 - 6908698 v6 On the other hand, if the ongoing national security needs for this airlift do not materialize in 2016 as envisioned, then there would been no harm because no flights would have been operated pursuant to the extended Exemption. B. Non-Application of the 9G Forward Restraint Load Factor Requirement Under These Circumstances Would Have No Adverse Impact on Safety and Would Provide an Equivalent Level of Safety. The FAA recognized that granting the Exemption for DOD shipments originating in Afghanistan under these circumstances would not degrade safety or unjustifiably increase risk. “This determination [for the Exemption] is based on the limited risk exposure of this specific mission . . . . This determination is also consistent with the USAF recommendation in the aforementioned report: ‘9G was a reasonable level of restraint for protection of passengers, yet it was recognized that it could not be achieved under all circumstances, particularly not in combat conditions.’” Exemption No. 11096 at 10. The FAA should again reach the same conclusion under these circumstances.

IV. THE FAA SHOULD EXTEND THIS EXEMPTION EXPEDITIOUSLY WITHOUT ANY FEDERAL REGISTER PUBLICATION OR COMMENT PERIOD. Petitioners urge the FAA to expeditiously extend Exemption No. 11096 as requested herein before the October 31, 2015 “expiration” date. Delayed action on this Joint Petition would threaten to undermine DOD’s operations and national security efforts by denying DOD safe, timely, and cost-effective service from Atlas and Kalitta Air for flying DOD’s tall rigid cargo.Joint Petition for Extension of Exemption No. 11096 Page 14

\\DC - 026524/000001 - 6908698 v6 Pursuant to 14 C.F.R. § 11.87, the publication and comment procedures of Part 11 may be waived if “good cause” is shown in the exemption petition that action on the petition should not be delayed by the publication and comment procedures. Good cause exists for the FAA to act on this Joint Petition without delay and without publishing a summary in the Federal Register or awaiting comments. No new precedent would be established by extending the requested exemption for Petitioners through December 15, 2016. See FAA Exemption No. 11096 (Atlas, Kalitta Air); Exemption No. 11125 (NAC). Furthermore, the FAA did not publish a summary of NAC’s Petition for the very same substantive relief in the Federal Register in late 2014, and there is no reason for a different result here. The FAA should likewise refrain from publishing any notice and seeking comments on this Joint Petition for an Extension of Exemption No. 11096. 11

11 If the FAA deviates from past practice and precedent and nonetheless determines that publication is somehow warranted, a summary of this Joint Petition for extension of this current Exemption is contained in Attachment 1.Joint Petition for Extension of Exemption No. 11096 Page 15

\\DC - 026524/000001 - 6908698 v6 V. CONCLUSION

. Petitioners submit that granting the requested extension of Exemption No. 11096 would continue to address critically important U.S. national security and public interest needs, would have no adverse impact on safety, and would provide an equivalent level of safety. Petitioners respectfully request expedited action on this request. Respectfully submitted,Joint Petition for Extension of Exemption No. 11096 Page 16

\\DC - 026524/000001 - 6908698 v6 ATTACHMENT 1 FEDERAL REGISTER SUMMARY As explained above in Section IV, Petitioners believe that good cause exists for not publishing this Joint Petition for an Extension in the Federal Register. Nonetheless, if such publication is deemed necessary, Petitioners propose – in accordance with §11.81(f) – that the FAA use the following as the summary: Docket No.: FAA-2014-0184 Petitioners: Atlas Air, Inc. and Kalitta Air, LLC Section of the FAR Affected: 14 C.F.R. §§ 91.9(a), 91.1025(a), 121.135(a)(4), 121.135(b)(21), 121.141 Description of Relief Sought: Petitioners seek to extend their Exemption No. 11096 from the requirements of 14 C.F.R. §§ 91.9(a), 91.1025(a), 121.135(a)(4), 121.135(b)(21), and 121.141 to allow the operation of B-747 freighter aircraft while transporting tall rigid cargo restrained to withstand flight loads without having to apply the forward emergency landing load factor of 9.0G.