UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on December 18 , 20 1 3

NOTICE OF ACTION TAKEN

-- DOCKET DOT

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_______________________________________________________________________________________________ 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 : AIR CONTRACTORS (IRELAND) LTD (Air Contractors)

Date Filed: July 9 , 2013 ; as supplemented July 17, 2013, and August 12, 2013; and a mended November 20, 2013

Relief requested: Exemption under 49 U.S.C. §40109 to engage in:

i. foreign scheduled and charter air transportation of persons and property from any point or points behind any Member State of the European Union, via any point or points in any Member State and via intermediate points to any point or points in the

United St ates and beyond;

ii. foreign scheduled and charter air transportation of persons, property, and mail between any point or points in the United States and any point or points in any member of the European Common Aviation Area;

iii. foreign scheduled and charter c argo air transportation between any point or points in the United States and any point or points;

iv. other charters pursuant to the prior approval requirements set forth in 14 CFR Part 212 of the Department’s Economic

R

egulations; and

v. transportation authori zed by any additional route rights that may be made available to European Union carriers in the future.

Air Contractors states that it intends to operate Ireland

- U.S. services on behalf of Aer Lingus Limited (Aer Lingus) beginning in January 2014. In this regard, th e applicant requests a statement of authorization pursuant to 14 CFR Part 212 of the Department's regulations to the extent necessary to enable it to engage in a long term wet

- lease agreement with Aer Lingus for operation of Aer

L

ingus’ services in the Shannon

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ew York (JFK), Shannon

- Boston, Dublin

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ew York (JFK), and Dublin

– Boston markets. 1

Applicant representative: Paul Hughes

, 353 1 812 1151 DOT analyst: Darren Jaffe, 202

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Responsive pleadings: None.

DISPOSITION

Action: Approved

, subject to conditions. (See conditions and remarks below.)

Action date: December 18 , 2013

Effective dates of authority granted: The exemption authority granted to Air Contractors is effective December 18

, 201 3 , through

December 18 , 2015

. The statement of authorization granted to Air Contractors to permit it to engage in a long

- term wet

- lease to Aer Lingus is effective December 18 , 2013, through December 18 , 2015 , subject to cond itions.

Basis for approval (bil ateral agreement/reciprocity): U.S.

- EU Air Transport Agreement.

1 In its August 12, 2013 filing, the applicant also requested statement s of authorization pursuant to 14 CFR Part 212 to permit it to display the ( UA* ) designator code of United Air Lines and the ( B6* ) designator code of Jet Blue Airways on flights it operated on behalf of Aer Lingus in the referenced markets. In its November 20, 2013 amendment, Air Contractors indicated that it was no longer pursing its pending request for code

- share authority but rather would apply separately for the code

- share statements of

authorization once code

- share audit requirements had been completed.Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our standard exemption

co nditions attached as Appendix A.

Special conditions/Remarks: Based on the record in this case, we found that Air Contractors is operationally and financially qualified to conduct the proposed services, and that it is substantially owned and effectively controlled in a manner consistent with t he provisions of the U.S.

- EU Agreement. 2 We also not e that the applicant is properly l icensed by its homeland to perform the proposed

services. In addition, on September 10 , 2013 , the Federal Aviation Administration advised us that it knew of no reason why we

should act unfavor ably on the applicant’s request for exemption authority.

Wit h regard to the authority granted here to permit the applicant to conduct transportation authorized by any additional route rights made available to European Union carriers in the future, we are requiring Air Contractors , before it commences any new servic e under this authority, to provide us, in Docket DOT

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- 0135 , with evidence that it holds a homeland license for that new service, unless it has already provided such evidence.

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

________________________________________________________________________________ _______ __________ 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 was consistent with the public interest; and ( 4 ) grant of the authority would not constitute a major regulatory action under the Energy Policy and

Conservation Act of 1975. To the extent not granted/deferred/dismissed, we denied all requests in the referenced 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 regulations, 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 filin g of a petition for review will not alter such effectiveness.

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

2 We make this finding based on Article 2 (Reciprocal Recognition of Regulatory Determinations with Regard to Airline Fitness and Citizenship) of the Protocol to amen d the U.S.

- EU Air Transport Agreement, signed June 24, 2010.Appendix A 

### Foreign Air Carrier Exemption Co nditions

In the conduct of the operations authorized, the foreign 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 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 C FR 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 w hether 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 a ny 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, insur ance 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 req uirements 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 defen ses;

(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 Stat es 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 "inter national 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 fli ghts to/from the United States in a Member State of the European Union;

(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 complian ce 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.

EU carrier 01/2008