Order 2010-9-15

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 10th day of September, 2010

Served: September 10, 2010

Application of

PRIVILEGE STYLE, S.A. Docket DOT-OST-2010-0148

 

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;1and (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

By Notice dated May 3, 2007, we invited foreign air carriers of the European Union (EU) to apply for 

Department economic authority to conduct operations to and from the United States under the U.S.-EU 

Air Transport Agreement. In that Notice, we stated that our intent to process requests for this authority 

under the “streamlining” procedures set out in our August 23, 2005 Notice in Docket OST-2005-22228, 

in which we announced several steps designed to simplify our regulatory procedures for licensing foreign 

(and U.S.) air carriers. Our action in this Order serves to implement those streamlined regulatory 

procedures for the application involved in this proceeding.

Application

By application filed June 8, 2010, Privilege Style, S.A., a foreign air carrier of Spain, requests an 

exemption under 49 U.S.C § 40109, and a foreign air carrier permit under 49 U.S.C. § 41301, to engage 

in the following services::

a. Foreign charter air transportation of persons, property and mail 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 States and beyond; 

 

1 The conditions are attached as Appendix A.
2

b. Foreign 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;

c. Foreign charter all-cargo air transportation between any point or points in the United States and 

any other point or points; and 

d. Charter transportation authorized by any additional route rights made available to European 

Community carriers in the future.

The applicant provided evidentiary materials required by 14 CFR Part 211 of our regulations to support 

its requests for authority.

We received no answers to the application.

Decision

We have decided, consistent with our August 23, 2005 Notice referenced above, to grant the applicant’s 

request for exemption authority, as described below and subject to conditions, and tentatively to grant, 

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

Specifically, we will grant Privilege Style, S.A. exemption authority for the services set forth in ordering 

paragraph 1 below. We will tentatively grant Privilege Style, S.A. a foreign air carrier permit for these 

services.

2

As an additional matter, Privilege Style, S.A. requested that we grant it, in addition to authority currently 

contained in the U.S.-EU Agreement, authority to conduct transportation authorized by any additional 

route rights made available to European Community carriers in the future. We are granting the request of 

Privilege Style, S.A. for this authority by exemption (and tentatively granting it by foreign air carrier 

permit). We are, however, requiring Privilege Style, S.A., before it commences any new service under 

this authority, to provide us with evidence that it holds a homeland license for that new service, unless it 

has already provided such evidence.3

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

conditioned, is consistent with the public interest. We also find that the applicant is financially and 

operationally qualified to perform the services authorized, and that it is substantially owned and 

effectively controlled in a manner consistent with the provisions of the U.S.-EU Agreement.

4

 We also 

find that the authority sought by the applicant is encompassed by the U.S.-EU Air Transport Agreement. 

Further, we note that the applicant is properly licensed by its homeland to perform the proposed services. 

In addition, by memorandum dated June 23, 2010, the Federal Aviation Administration advised us that it 

 

2 As is our normal practice, we will also grant the applicant exemption authority, and tentatively grant it permit 

authority, to conduct other charters pursuant to 14 CFR Part 212 of our regulations. See, for example, Order 2009-

10-14.

3

See Orders 2007-6-19 and 2007-10-1, and Orders 2007-7-13 and 2007-10-16, where we granted this authority to 

British Airways Plc. and Virgin Atlantic Airways Ltd., respectively.

4 We make this finding based on Article 2 (Reciprocal Recognition of Regulatory Determinations with Regard to 

Airline Fitness and Citizenship) of the Protocol to amend the U.S.-EU Air Transport Agreement, signed 

June 24, 2010. 
3

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).

In view of the above, we find that grant of the requested exemption authority, as conditioned, for a twoyear term, or until the requested permit authority becomes effective, whichever occurs earlier, is 

warranted.

Tentative Findings and Conclusions--Foreign Air Carrier Permit Application

We tentatively find and conclude that the public interest warrants granting the applicant an amended 

foreign air carrier permit, in the form attached as Appendix B and subject to the conditions attached.5 In 

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

authority to the applicant, as discussed above, also warrant granting the applicant the 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 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. The applicant is substantially owned and effectively controlled in a manner consistent with the 

provisions of the U.S.-EU Agreement;

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;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, become 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, we find that, 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 

 

5 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.

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 gallons or more.
4

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 Privilege Style, S.A. for an exemption under 49 U.S.C. §40109 for the 

services set forth below: 

a. Foreign charter air transportation of persons, property and mail 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 States and beyond; 

b. Foreign 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; 

c. Foreign charter all-cargo air transportation between any point or points in the United States and 

any other point or points;

d. Other charters pursuant to the prior approval requirements set forth in the Department’s 

regulations governing charters; and

e. Charter transportation authorized by any additional route rights made available to European 

Community carriers in the future.

2. Privilege Style, S.A. shall, before it commences any new service under subparagraph (e) of ordering 

paragraph 1 above, provide the Department in Docket DOT-OST-2010-0148 with evidence that it holds a 

homeland license for that new service, unless it has already provided such evidence to the Department;

3. The exercise of the privileges granted above is subject to compliance by Privilege Style, S.A. with the 

conditions listed in Appendix A;

5. Our action granting the exemption authority described herein, subject to the provisions of the ordering 

paragraphs above, 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;

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

time and without hearing;

7. To the extent not acted upon above, we dismiss all requests for exemption authority in the referenced 

docket (DOT-OST-2010-0148);

8. 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;

9. 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 
5

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;

10. 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;

11. 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

12. We will serve a copy of this order on Privilege Style, S.A., the Embassy of Spain, in Washington, 

D.C., the Department of State, and the Federal Aviation Administration.

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
Foreign Air Carrier Exemption Conditions Appendix A

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 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 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 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.

EU carrier 01/2008
Appendix B

Issued by

Order 2010-

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

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

PERMIT TO FOREIGN AIR CARRIER

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

PRIVILEGE STYLE, S.A. 

A Foreign Air Carrier of Spain 

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:

Foreign charter air transportation of persons, property and mail 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 States and beyond; 

Foreign 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; 

Foreign charter all-cargo air transportation between any point or points in the United 

States and any other point or points;

Other charters pursuant to the prior approval requirements set forth in the Department’s 

regulations governing charters; and 

Charter transportation authorized by any additional route rights made available to 

European Community carriers in the future; provided, that the holder shall, before it 

commences any new service under such additional route rights, provide the Department 

with evidence that it holds a homeland license for that new service (unless it has already 

provided such evidence to the Department). Such evidence shall be filed in Docket DOTOST-2010-0148.

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 . 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 right for the 

service authorized by this permit from the service which may be operated by airlines of the European 
Community and its Member States (or, if the right is partially eliminated, then the authority of this permit 

shall terminate in like part); or (3) upon the termination or expiration of the applicable air services 

agreement between the United States and the European Community and its Member States. However, 

clause (3) 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 European Community and its Member States become parties.

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

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 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 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 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.

EU carrier 1/2008