Order 2012

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UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 21 st d ay of February , 201 2

Served: April 24 , 2012

Application of

ICELANDAIR EHF. Docket DOT

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for an exemption under 49 U.S.C. §40109 and a n amended foreign air carrier permit under 49 U.S.C. §41301

FINAL ORDER

By Order 20 1 2

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, 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 d isapproved by the President of the United States under 49 U.S.C. §41307, this order

shall become effective on the 61 st day after its submission for section 41307 review or upon the date of receipt of advice from the President or his designee under Executiv e 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 61 st day is April 23, 2012. Since the Presi dent or his designee did not disapprove this order before that date, it became

effective on April 23, 2012

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

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4 . We will serve a copy of this order on Icelandair ehf.; the Embassy of I celand 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.govIssued by

Order 201 2

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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 ;

F oreign schedule d 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;

F oreign 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 s cheduled and charter air transportation of cargo between any point or points in the United States and any other point or points;

O ther charters pursuant to the prior approval requirements set forth in 14 CFR Part 212 of the Department’s regulations; and

T ransportation authorize d 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, prov ide 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 DOT

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.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

t ransportation 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.

T his permit shall be effective on April 23, 2012 . Unless otherwis e 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, con vention, 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

o f 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 ex piration, 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 Admini stration, 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

w ith 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 it s 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 authorit y 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 e xempted 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 imm unity, 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, a ccording 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 int ernational 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 Departmen t'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 regulati ons 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 s old or otherwise transferred without explicit Department approval under Title 49 of the U.S. Code.

EU carrier 0 1/2008