# ORIGINA L BEFOR E TH E DEPARTMEN T O FTRANSPORTATIO N OFFIC E O FTH E SECRETAR Y WASHINGTON , D.C . Applicatio n o f TRAN S CAPITA LAI RLTD . fo r a n exemptio n pursuan t

t o 4 9 U.S.C . § 40109(c ) (Canada-U.S . Schedule dan dCharte r Service ) Docke t OST-2005-2093 4

APPLICATIO N O F TRAN S CAPITA LAI RLTD . FO RRENEWA LO FA N EXEMPTIO N Communication s with respec t t o thi s documen t

shoul db e sen t

to : Nathanie l P . Breed , Jr . ZUCKER T SCOUT T & RASENBERGER , LL P 88 8 17t hStreet , N.W. , Suit e 70 0 Washington , D.C . 20006-330 9 (202 ) 973-791 9 (tel. ) (202 ) 342-068 3 (fax ) npbreed@zsrlaw.co m Attorney s for TRAN S CAPITA L AI RLTD . Jul y 20 , 201 0 NOTICE : Answer s t o thi s Applicatio n ar e du e t o b e filedo n Augus t 4 , 2010 . Answer s mus t

b e filedi n th e DOT' s Docke t Sectio n an dserve do n counse l fo r Tran s Capita l an do n al l person s name do n th e attache dServic e List .BEFOR E TH E DEPARTMEN T O FTRANSPORTATIO N OFFIC E O FTH E SECRETAR Y WASHINGTON , D.C . Applicatio n o f TRAN S CAPITA L AI RLTD . fo r an exemptio n pursuan t

t o 4 9 U.S.C . § 40109(c ) (Canada-U.S . Schedule dan dCharte r Service ) Docke t OST-2005-2093 4

Jul y 20 , 201 0 APPLICATIO N O F TRAN S CAPITA L AI RLTD . FO RRENEWA L O FA N EXEMPTIO N Tran s Capita l Ai r

Ltd . ("Tran s Capital" ) hereb y applies , pursuan t t o 4 9 U.S.C . § 4010 9 an dSubpart

C o f th e Procedura l Regulation s o f th e Departmen t

o f Transportatio n (th e "Department " o r

"DOT") , for

renewa l o f

it s temporar y exemptio n from4 9 U.S. C § 4130 1 authorizin g Tran s Capita l t o performtransborde r non-schedule dcharte r

flights , usin g aircraf

t havin g 6 0 o r

fewer seat s an dwithamaximu mpayloa dcapacity o f 18,00 0 pound s o r less,carryin g persons , propert y an dmai l betwee n an y poin t o r point s i n Canad a an dany poin t

o r point s i n th e Unite dState s pursuan t t o th e Marc h12 , 200 7 Bilatera l Ai r Transport Service s Agreemen t

betwee n Canad aan dth e Unite dState s (th e "2007 Agreement") , a s amended . Th e exemptio n authority at issu e wa s mos t

recentl y renewe d fo r atwo-year

period , throug h Jul y 30 , 2010 , b y Notic e o f Actio n Take n issue do n Jul y 30 , 2008 . Tran s Capita l request s tha t th e foregoin g exemptio n authority b e renewe dfo r a fiirther perio do f tw o years , throug h Jul y 30 , 2012 , o r unti l 6 0 day s after

final actio n b yTran s Capita l Ai r Applicatio n Transborde r

Exemptio n Authority 2

- th e Departmen t

o n aforthcomin g applicatio n b y Tran s Capita l for gran t o f aForeig n Ai r Carrie r Permi t pursuan t t o 4 9 U.S.C . § 4130 2 authorizin g th e sam e broad-scop e transborder

operations , whicheve r

occur s first . I n accordanc e with Sectio n 302.30 3 an dSectio n 211.20 o f th e Department' s Regulations , Tran s Capita l submit s th e followin g informatio n i n support o f thi s renewa l application . 1 . Existin g Authorit y an dOperations . Tran s Capita l i s aCanadia n charte r ai r carrie r base di n Toronto , Ontario . Tran s Capita l perform s on-deman dpassenge r charte r flight s withi n Canada , an dbetwee n point s i n Canad aan dpoint s i n Thir dCounties , an dbetwee n point s i n Canad aan dpoint s i n th e Unite dStates , utilizin g afleet o f four lease dCanadian-registere dDeHavillan dDas h7 aircraf t configure dt o carry 4 8 passengers . I n addition , Tran s Capita l provide s on deman demergenc y medica l evacuatio n flights carryin g seriously-injure do r gravel y il l Unite dNation s peacekeepin g persorme l betwee n Port-au-Prince , Hait i an dMiam i o r Ft . Lauderdale , Florid a(an dals o betwee n Hait i an dSant o Domingo , D.R. , whic hals o ha s suitabl e hospita l facilities) , pursuan t t o arecently-renewe dthree-year contrac t (Jun e 3 , 200 8 - Jun e 2 , 2011 ) with th e Unite dNations . Th e Haiti-Miam i (o r Ft . Lauderdale ) on deman dcharte r

flights for

th e Unite dNation s hav e bee n operate dpursuan t t o Tran s Capital' s exemptio n authority an dthroug haserie s o f Part 21 2 Statement s o fTran s Capita l Ai r Applicatio n Transborde r

Exemptio n Authority - 3

- Authorizatio n grantin g Tran s Capita l limite dspecial-purpos e 5 ^ freedo mpassenge r charte r authority pursuan t

t o Par t 21 2 o f th e Department' s Economi c Regulations. ' I n additio n t o th e foregoin g U.S . economi c authority , Tran s Capita l hold s aPart 129 Foreig n Ai r

Carrie r Certificat e an dOperation s Specification s issue dt o i t b y th e U.S . Federa l Aviatio n Administratio n (th e "FAA") . Tran s Capita l als o hold s Canadia n domesti c an dinternationa l License s issue dt o i t b y th e Canadia n Transportatio n Agenc y (th e "CTA" ) an dan Ai r

Operato r Certificat e issue dt o i t

b y Transport

Canad a("Transport Canada") , authorizin g Tran s Capita l t o engag e i n non-schedule doperation s withi n Canada , an dbetwee n point s i n Canad aan dpoint s i n foreig n countries , includin g th e Unite dStates . 2 . Automati c Extension . Tran s Capita l hereb y invoke s an drelie s upo n th e provision s o f Sectio n 558(c ) o f th e Administrativ e Procedur e Act , 5 U.S.C . §558(c) , a s implementedb y Part 37 7 o f th e Department' s Specia l Regulation s (1 4 CF R§377.10) , t o continu e in effec t it s exemptio n authorizin g Tran s Capita l t o provid e charte r foreig n ai r

transportatio n betwee n Canad a an dth e Unite dState s unti l th e Departmen t make s afinal determinatio n o f thi s Application . I n accordanc e with Sectio n 377.10(c)(3) , thi s renewa l applicatio n i s bein g filedprio r t o th e expiratio n dat e o f

th e temporar y authority at issue .

' Tran s Capita l i s concurrentl y filing an applicatio n fo r issuanc e o f

aone-year

extensio n o f it s prio r Statemen t

o f Authorization , throug hJul y 30 , 2011 .Tran s Capita l Ai r Applicatio n Transborde r

Exemptio n Authority 4

- 3 . Ownership , Citizenshi p an dFitness . Subsequen t

t o th e filing o f

Tran s Capital' s initia l exemptio n applicatio n i n thi s docke t o n Apri l 6 , 2005 , ther e ha s been n o chang e i n it s ownership , boar do f director s an dmanagement , al l o f

who mar e Canadia n citizen s o r lande dimmigrant s i n Canada , an d ther e ha s been n o advers e chang e i n Tran s Capital' s financial condition , scop e an dtyp e o f operations , complianc e dispositio n an dsafet y record . 4 . Applicabl e Bilatera l Agreement . A s th e Departmen t

ha s previousl y determine d(Notic e o f Actio n Taken , issue di n thi s proceedin g o n Jun e 13 , 2005 ; an dNotic e o f Actio n Taken , issue do n Jul y 30 , 2008) , th e exemptio n authority a t issu e i s consisten t

withth e Marc h12 , 200 7 Bilatera l Ai r Transport Agreemen t

betwee n th e Unite dState s an dCanada , a s amended . Th e February 199 5 Agreemen t

ha s recentl y bee n supersede db y th e Unite dStates-Canad a(th e "Marc h 200 7 Agreement") . Th e Marc h 200 7 Agreemen t i s alibera l "open-skies " agreemen t contemplatin g th e unrestricte dexchang e o f 3'^' ^ an d4 * freedomtraffi c right s betwee n th e tw o countries , an dals o contemplate s th e libera l gran t o f 5^ ^ freedomtraffi c rights , o n th e basi s o f reciprocity , t o ai r

carrier s o f

eac hcountry . Accordingly , th e Governmen t o f Canad acontinue s t o follo w apolic y o f grantin g Canada-Thir dCountry 5" ^ freedom traffi c right s t o U.S . carrier s o n alibera l basis , a s confirme db y th e Certificatio n filedin Docke t OST-2006-2426 9 o n Decembe r 22 , 200 8 b y th e Canadian Transportatio n Agency .Tran s Capita l Ai r Applicatio n Transborde r

Exemptio n Authority - 5

- 5 . Publi c Interest . Tran s Capita l respectfiill y submit s tha t th e renewa l o f

it s existin g Canada-U.S . transborde r

exemptio n authority i s consisten t withth e publi c interes t

an dDepartmen t precedent . Tran s Capita l ha s been foun dt o be , an dcontinue s t o be , fit, willin g an dabl e t o performth e foreig n ai r transportatio n applie dfo r herei n an dt o conformt o th e requirement s o f

th e Federa l Aviatio n Statute s an dth e rules , regulation s an dorder s o f th e Departmen t

an dth e FA A thereunder . Tran s Capita l fiirther submit s tha t

it s ongoin g an d propose dcharte r

operation s operate dpursuan t t o th e exemptio n authority a t issu e hav e no t constituted , an dwil l no t

constitute , a"majo r

regulator y action " withi n th e definition s o f Sectio n 313. 4 o f

th e Department' s Procedura l Regulafions , implementin g th e provision s o f

th e Energ y Polic y an dConservatio n c t o f 1975 . O n th e basi s o f

th e Marc h 200 7 U.S.-Canad a"Ope n Skies " Bilatera l Agreemen t an dTran s Capital' s designatio n b y th e Canadia n Governmen t t o provid e foreig n ai r transportatio n a s provide dfor unde r tha t Agreement , renewa l o f

th e foreig n ai r transportatio n exemptio n authority at issu e i s presumptivel y consisten t withth e publi c interest .Tran s Capita l Ai r Applicatio n Transborde r

Exemptio n Authority 6

- WHEREFORE , Tran s Capita l respectfull y request s th e Departmen t t o issu e an Orde r o r Notic e o f

Actio n Take n renewin g Tran s Capital' s existin g exemptio n from4 9 U.S.C . §4130 1 fo

r aperio do f

tw o years , throug hJul y 30 , 2012 . Respectfiill y submitted .

Nathanie l P . Breed , Jr . ZUCKER T SCOUT T & RASENBERGER , LL P Attorney s for TRAN S CAPITA LAI RLTD . Washington , D.C . Jul y 20 , 201 0CERTIFICAT E O FSERVIC E I hereb y certif

y that o n thi s 20" ^ day o f

Jul y 2010 , acop y o f

th e foregoin g Applicatio n o f Tran s Capita l Ai r Ltd . for Renewal o f

an Exemptio n (Canada-U.S . Transborde r Operations ) wa s serve db y e-mai l o n th e following : Jeffrey Manle y Senio r Adviso r - Regulatory Affair s Unite dAi r

Lines , Inc . 102 5 Connecticu t

Avenue , N.W . Suite 121 0 Washington , D C 2003 6 jeffrey.manley@united.co m R . Bruc e Keiner , Jr . Lorrain e B . Halloway Counse l for

Continenta l Airline s Crowel l & Morin g 100 1 Pennsylvani aAvenue , N.W . Washington , D.C . 2000 4 rbkeiner@crowell.co m Lhalloway@crowell.co m Alexande r Van De r Belle n Jef f Morga n Samett aC . Bamet t Delt aAi r Line s 121 2 Ne w Yor

k Avenue , NW Suite 20 0 Washington , D.C . 2000 5 Sascha.vanderbellen@delta.co m sametta.c.bamett@delta.co m Jeff.morgan@delta.co m Carl B . Nelson , Jr . Associat e Genera l Counse l America n Airlines , Inc . 110 1 Seventeenth Street , N.W . Suite 600 Washington , D.C . 2003 6 carl.nelson@aa.co m Hershe l Kame n Vic e President—Internationa l an dRegulatory Affair s Dan Weis s Continenta l Airlines , Inc . Governmen t

Affairs—8 * Floo r 160 0 Smit h Stree t Dept . HQSG V Houston , T X 7700 2 hkamen@coair.co m dan.weiss@coair.co m Davi dL . Vaugha n Daniell e Fishe r Counse l for

Unite dParce l Servic e Kelle y Dry e Collier

Shanno n 305 0 K Street , N.W . Suite 40 0 Washington , D.C . 2000 7 dvaughan@kelleydrye.co m dfisher@kelleydrye.co m Joh n L . Richardso n Counse l for

Amerije t Internationa l Joh n L . Richardson , P.L.L.C . 55 5 13" ' Street , N.W . Suite 42 0 Wes t Washington , D.C . 2000 4 j r i chardson@ j ohnlrichardson . co m Joh n Pal o Vic e President , Plannin g Militar y an dGovernmen t Evergree n Internationa l Airlines , Inc . 385 0 Thre e Mil e Lan e McMinnville , O R9712 8 john.palo@evergreenairlines.co m charters@evergreenairlines.co m Malcol mL . Beng e Counse l for

Worl dAirway s an dNorth America n Airline s Zuckert, Scoutt

& Rasenberger , L.L.P . 88 8 Seventeenth Street , N.W . Suite 700 Washington , D C 2000 6 mlbenge@zsrlaw.co mAngelin e Garbuzinski

Legal an dRegulator y Affair s Federa l Expres s Corporatio n 362 0 Hack s Cros s Roa d Buildin g B , 3" ' Floo r Memphis , T N 3812 5 anbird@fedex.co m Pierr e Murph y Counse l for

Brenda n Airways , L.L.C . d/b/aUS A 300 0 Airline s an dArro w Ai r 120 0 Ne w Hampshir e Avenue , N.W . Suite 59 0 Washington , D.C . 20036-680 2 pmurphy@lopmurphy.co m Thoma s E . Fosk o Vic e Presiden t Ai r Transpor t

Internationa l LL C 2800Cantrel l Roa d Littl e Rock , AR7220 2 tom.fosko@airtransport.c c Howar dKas s Managin g Directo r

& Associat e Genera l Counse l U S Airway s 140 1 H Street , N.W . Suite 107 5 Washington , D.C . 2000 6 howar dkass@usairways.co m Aaro n Goerlic h Counse l for

Allegian t

Ai r an d Ryan Internationa l Airline s Garofal o Goerlic h Hainbac hP C 120 0 Ne w Hampshir e Avenu e NW Suite 80 0 Washington , D.C . 20036-680 2 agoerlich@ggh-airlaw.co m EdwardP . Faberman Counse l for

Frontie r Airline s Wile y Rei n LL P 177 6 K Street , N.W . Washington , D C 2000 6 efaberman(a),wrfco m Robert P . Silverber g Jeffre y Johnso n Counse l fo

r AB X Ai r Silverberg , Goldma n & Bikoff , L.L.P . 110 1 30t h Street , N.W . Suite 12 0 Washington , D.C . 2000 7 rsilverberg@sgbdc.co m jjohnson@sgbdc.co m Marshal l S . Sinic k Counse l for

Alask aAirline s an dFlorid aWes t

Internationa l Airway s Squire , Sander s & Dempse y 120 1 Pennsylvani aAvenue , N.W . Suit e 50 0 Washington , D.C . 2000 4 msinick@ssd.co m Stephe n H . Lachte r Counse l for

Astar Ai r Carg o Lachte r & Clement s LL P 115 0 Connecticu t

Avenue , N.W. , Ste . 900 Washington , D C 2003 6 slachter@lachter-clements.co m Russel l E . Pomme r Associat e Genera l Counse l an d Directo r o f Regulatory Affair s Atla s Air , Inc . 174 7 Pennsylvani aAvenue , N.W . Suite 87 5 Washington , D. C 2000 6 rpommer@atlasair.co m Mar k W . Atwoo d Counse l for

Kalitt aAi r She r & Blackwell , L.L.P . 185 0 M Street , N.W . Suite 900 Washington , D.C . 2003 6 matwood@sherblackwell.co m Jonatha n B . Hil l Counse l for

Hawaiian Airline s an dJetBlu e Do w Lohne s 120 0 Ne w Hampshir e Avenue , N.W . Suit e 80 0 Washington , D C 20036-680 2 jhill@dowlohne sJoh n S . Frederickse n

Vic e Presiden t

an dGenera l Counse l M N Airlines , LL C db aSu n Countr y Airline s 130 0 Mendot aHeight s Roa d Mendot aHeights , MN 5512 0 john.fredericksen@suncountry.co m Joann e W . Youn g Counse l for

Spiri t Airline s Kirstei n & Youn g PLL C 100 1 Pennsylvani aAve. , N.W . Suite 600 Sout

h Washington , D C 2000 4 jyoung@yklaw.co m Willia mC . Evan s Joh n R . Mietus , Jr . Counse l for

Centurio n Ai r

Carg o an dTrad e Wind s Airline s Law Offic e o f

Joh n Mietus , LL C 31 5 C Street , SE , Lowe r

Leve l Washington , D C 2000 3 bill@mietuslaw.co m john@mietuslaw.co m Thoma s A . Gillie s Chie f Operatin g Officer Southern Ai r

Inc . 11 7 Glove r

Ave . Norwalk , C T 0685 0 Email : tgillies@southemair.co m Jonatha n Blan k J . Timoth y Hobb s Counse l fo

r Capita l Carg o Intemationa l Airline s Kirkpatric k

& Lockhart Presto n Gate s Elli s LL P 160 1 K Stree t N W Washington , D C 2000 6 jonathan.blank@klgates.co m tim.hobbs@klgates.co m Georg e Wellington , Chie f Foreig n Carrie r

Licensin g Divisio n Offic e o f Intemationa l Aviatio n Departmen t

o f Transportatio n 120 0 Ne w Jerse y Avenue , S.E . Washington , D C 2059 0 george.wellington@dot.go v Lis aDun n Counse l fo

r TE M Enterprises /

Xtr aAirways / Casin o Expres s 33 1 7"'Stree t Elko , NV 8980 1 ldunn@xtraairways.co m Stephe n A . Alterma n Counse l for

Horizo n Ai r Meyer s & Alterma n 122 0 NineteenthStreet , N.W . Washington , D.C . 2003 6 cargoair@aol.co m Eri c Christense n Vic e President , Plannin g Skywes t Airline s 44 4 S . Rive r

Roa d St . George , U T 8477 0 echristensen@skvwest.co m Kevi n Montgomer y Pete r Beckett Polar Ai r Cargo , Inc . 174 7 Pennsylvani aAvenue , N.W . Suite 87 5 Washington , D. C 2000 6 kevin.montgomery @ polaraircargo.co m peter.beckett@polaraircargo.co m Robert J . Finamor e Analys t Roo mW-86-43 3 Departmen t

o f Transportatio n 120 0 Ne w Jerse y Avenue , S.E . Washington , D C 2059 0 Robert.finamore@dot.go v Joh n M . Alle n Directo r Fligh t Standard s Servic e Federa l Aviatio n Administratio n 800 Independenc e Avenue , S.W . Roo m82 1 Washington , D.C . 2059 1 john.allen@faa.go v 

# 4u^jl^/2^j ? Nathanie l P . Breed , Jr .