UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on December 10

, 20 12



### NOTICE OF ACTION TAKEN

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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 : ISLANDE R ENTERPRISES SAMOA LTD. D/B/A SAMOA AIR (Samoa Air)

Date Filed: November 20, 2012 , as supplemented December 6, 2012

Relief requested: Foreign air carrier permit under 49 U.S.C. §41301 and an e xemption under 49 U.S.C. §40109 to engage in

, using smal l aircraft, scheduled and charter foreign air transportation of persons, property, and mail: (i) from points behind the Independent State of Samoa, via the Independent State of Samoa and intermediate points, to any point or points in American Samoa and bey ond; and (ii) for all

- cargo service or services, between American Samoa and any point or points. 1

Applicant representative s : Robert P

. Silverberg and L. Jeffrey Johnson , 202

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DOT analyst: Robert J. Finamore , 202

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Responsiv e pleadings: On December 5, 2012, Inter Island Airways, Inc. filed an answer in support of Samoa Air’s request for an exemption and a foreign air carrier permit.

DISPOSITION

Action: Approved in part (exemption authority ), remainder (request for permit authority) deferred 2

Action date: December 10 , 20 12

Effective dates of authority granted: December 10 , 20 12 , through December 10 , 20 14

.

Basis for approval (bil ateral agreement/reciprocity): Multilateral Agreement on the Liberalization of International Air Transportation (MALIAT ).

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our standard exemption conditions (attached)

.

Special conditions/Remarks: In the conduct of these ope rations, the carrier may only use aircraft designed to have a maximum passenger capacity of not more than 60 seats and a maximum payload capacity of not more than 18,000 pounds.

1 In its application for initial exemption and permit authority, Samoa Air notes t hat it has separately filed with the Department an application for an e mergency e xemption to conduct cabotage operations between Pago Pago International Airport in American Samoa and the regional airports Fitiuta Airport in Ta'u and Ofu Airport located in the Manu'a Islands of American Samoa. See

Docket DOT

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- 0199. In its December 6, 2012 supplemental filing in Dockets DOT

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- 0199, Samoa Air requests that the 30

- day period of its cabotage request commence no earlier than the date that the Federal Aviation Administration (FAA) issues it Part 129 Operations Specifications. W e will address the disposition of Samoa Air’s cabotage exemption request in a separate action.

2 We note that S amoa Air also requested a foreign air ca rrier permit to engage in its proposed services. We will act on that portion of its request separately.Based on the record in this case, w e found that the applicant is operationa lly and financially qualified to perform the proposed services, and that it is substantially owned and effectively controlled by citizens of its homeland

. 3 4 We also note that the applicant is properly licensed by its homeland to perform the proposed serv ices. In addition, on December 7, 2012, the FAA advised us that it knows of no reason why we should act unfavorably on the applicant’s request.

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

____________________________ ____________________________________________________________________________ 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 an d

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 filing of a petition for review wi ll not alter such effectiveness.

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

3 The applicant has requested confidential treatment of its shareholder and financial information under the provisions of 14 CF R

302.12. Good cause ha ving been shown, we will grant this request.

4 The record indicates that Samoa Air’s CEO and three of its six key management personnel are Samoan citizens, with one a citiz en of Australia, and two citizens of New Zealand.

### Foreign Carrier Exemption Conditions

In the conduct of the operations a uthorized, the foreign carrier applicant(s) 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 w ith 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 hold er’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 I IR of its plans and to find out whether the Transportation Secur ity 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 a uthority, 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 w ith 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 tha t 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 car riage 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 "internatio nal 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 its homeland;

(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 ap plicable 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 condition s imposed above. Moreover, this authority cannot be sold or otherwise transferred without explicit Department approval

under Title 49 of the U.S. Code.

12/2007