UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC

Issued by the Department of Transportation on July 21, 2010

NOTICE OF ACTION TAKEN -- DOCKET DOT-OST-2010-0157
This document serves as notice to the public of the ac tion described below, by the Department official indicated (no additional confirming orde r will be issued in this matter).

Application of SOUTHERN AIR, INC. (Southern) filed 6/17/10 for:

XX Exemption authority pursuant to 49 U.S. C. 40109 to provide the following services:

Scheduled foreign air transportation of property and mail between a point or points in the United States, on the one hand, and a point or points in the People’s Republic of China, on the other hand, via intermediate points, and beyond China.

XX Certificate under 49 U.S.C. 41101 to provide the following service:

Scheduled foreign air transportation of property and mail between a point or points in the United States, on the one hand, and a point or points in the People’s Republic of China, on the other hand, via intermediate points, and beyond China.

Applicant Rep: Aaron A. Goerlich (202) 776-3974 DOT Analyst: Thuy H. Cooper (202) 366-5423

DISPOSITION

XX Granted request for exemption authority (subject to conditions)

XX Deferred action on request for certificate authority 1

The above action granting exemption authority was effective when taken: July 21, 2010

, through July 21, 2012

. 2

The above action deferring action on the request for certificate authority was effective when taken: June 21, 2010

Action taken by: Paul L. Gretch, Director

Office of International Aviation

XX The authority granted is consistent with th e Air Transport Agreement, as amended, between the United States and the People’s Republic of China.

Except to the extent exempted or waived, this authorit y is subject to the terms, conditions, and limitations

indicated: XX Holder’s certificates of public convenience and necessity

XX Standard exemption conditions (attached)

1 We will address Southern’s request fo r certificate authority separately.

2 We note that frequency and designation limitations will no longer be applicable to U.S.-China scheduled all-cargo operations effective March 25, 2011. Southern may not commence its proposed scheduled U.S.-China all-cargo

service until these limitations are removed.______________________________________________________________________________________________________________________ On the basis of data officially noticeable under Rule 24(g) of the Department’s regulations, we found the applicant qualified to provide the services authorized.

Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our action was consistent with Department policy; (2) gran t of the application was consistent with the public interest; and (3) 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 or deferred, 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 with in seven (7) days after the date of

issuance of this Notice. This action was effective wh en taken, and the filing 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

### Attachment

U.S. Carrier Exemption Conditions

In the conduct of the operations authori zed, the U.S. carrier applicant(s) shall:

(1) Hold at all times effective operating author ity from the government of each country served;

(2) Comply with applicable requirements c oncerning oversales contained in 14 CFR 250 (for scheduled operations, if authorized);

(3) Comply with the requirements fo r reporting data contained in 14 CFR 241;

(4) Comply with requirements for minimum insura nce coverage, and for certifying that coverage to the Department, contained in 14 CFR 205;

(5) Except as specifically exempted or otherwise pr ovided for in a Department Order, comply with the requirements of 14 CFR 203, concerni ng waiver of Warsaw Convention liability limits and defenses;

(6) Comply with all applicable requirement s of the Federal Aviati on Administration, the Transportation Security Administ ration, and with all ap plicable U.S. Government requirements concerning security, including, but not limited to, 49 CFR Part 1544. To assure compliance with all applicable U.S. Government requirements concer ning security, the holder shall, before commencing any new service (including charter fli ghts) to or from a foreign airpor t, contact its Principal Security Inspector (PSI) to advise the PSI of its plans a nd to find out whether the Transportation Security

Administration has determined that security is adequate to allow such airport(s) to be served;

(7) Comply with such other reasonable terms, conditions, and limitations required by the public interest as may be prescribed by the Department of Transportation, with all applicab le orders and regulations of other U.S. agencies and courts, a nd with all applicable laws of the United States.

The authority granted shall be eff ective only during the period when the holder is in compliance with the conditions imposed above.

1/2008