Order 2012-4-28

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 21st day of February, 2012

Served: April 24, 2012

Application of

ICELANDAIR EHF. Docket DOT-OST-2011-0183

for an exemption under 49 U.S.C. §40109 and an amended

foreign air carrier permit under 49 U.S.C. §41301 

FINAL ORDER

By Order 2012-1-26, issued January 27, 2012, we directed all interested persons to show cause 

why we should not make final our tentative findings and conclusions stated therein and award a

foreign air carrier permit in the form attached to the Order and subject to the conditions attached 

thereto. We gave interested persons 21 days to file objections to the Order. We said that if no 

objections were filed, all further procedural steps would be deemed waived, and the Department 

would enter an order (subject to Presidential review under 49 U.S.C. §41307) which would make 

final the findings and conclusions of the Order. 

No objections were received within the time period provided.

ACCORDINGLY,

1. We make final our findings and conclusions as stated in the Order and award to Icelandair 

ehf. the amended foreign air carrier permit with associated conditions attached to the Order (and 

attached as the Appendix to the present order);

2. Unless disapproved by the President of the United States under 49 U.S.C. §41307, this order 

shall become effective on the 61st day after its submission for section 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 the Department’s order 

under that section, whichever occurs earlier;1

 1 This order was submitted for review under 49 U.S.C. §41307 on February 21, 2012. The 61st day is 

April 23, 2012. Since the President or his designee did not disapprove this order before that date, it became 

effective on April 23, 2012.
2

3. To the extent not acted upon above, we dismiss all remaining requests for relief in Docket 

DOT-OST-2011-0183; and

4. We will serve a copy of this order on Icelandair ehf.; the Embassy of Iceland in Washington, 

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

By:

PAUL L. GRETCH

Director

Office of International Aviation

(SEAL)

Appendix

An electronic version of this document is available on the World Wide Web at:

http://www.regulations.gov
Issued by

Order 2012-4-28

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

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

PERMIT TO FOREIGN AIR CARRIER

(as amended)

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

ICELANDAIR EHF.

A Foreign Air Carrier of Iceland

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 scheduled air transportation of persons, property, and mail between points 

behind Iceland, via Iceland and intermediate points, and any point or points in the 

United States, and beyond;

Foreign scheduled and 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 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;

Foreign scheduled and charter air transportation of cargo 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 14 CFR Part 

212 of the Department’s regulations; and

Transportation authorized by any additional route rights made available to 

European Union carriers under the U.S.-EU-Iceland-Norway Air Transport 

Agreement 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-2011-0183.
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 April 23, 2012. 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 Iceland (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 between the 

United States and Iceland of the applicable air services agreement. 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 Iceland become parties.

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

February 21, 2012.

By:

PAUL L. GRETCH

Director

Office of International Aviation

(SEAL)
Foreign Air Carrier Permit Conditions Appendix

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 

Iceland or 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