### BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.
Request of: ) ) Silk Way West Airlines ) Docket OST-2014-0111 ) to amend issued exemption authority and ) pending application for a foreign air carrierpermit ) and motion to expedite processing ) (Baku-Hong Kong-Chicago-New York-Luxemburg-Baku) )



### ANSWER OF NATIONAL AIRLINES TO REQUEST OF SILKWAY WEST AIRLINES TO AMEND FOREIGN AIR CARRIERPERMIT PENDING APPLICATION Communications with respect to this document should be sent to: Glen G. Joerger President National Air Cargo Group, Inc., d/b/a National Airlines 5955 T. G. Lee Blvd Suite 500 Orlando, FL 32822

October 29,2014 Pierre Murphy Law Offices ofPierre Murphy 1200 New Hampshire Avenue, N.W. Suite 590 Washington, D.C. 20036 Telephone: (202) 776-3980 Facsimile: (202) 776-3975 Email: pmurphy@lopmurphy.com Attorney for National Air Cargo Group, Inc. d/b/a National AirlinesRequest of: Silk Way West Airlines 

### BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

Docket OST-2014-0111 to amend issued exemption authority and ) ) ) ) ) ) pending application for a foreign air carrier permit and motion to expedite processing ) (Baku-Hong Kong-Chicago-New York-Luxemburg-Baku) )



### ANSWER OF NATIONAL AIRLINES TO REQUEST OF SILKWAY WEST AIRLINES TO AMEND FOREIGN AIRCARRIERPERMIT PENDING APPLICATION National Air Cargo Group, Inc., d/b/aNational Airlines ("National") respectfully responds to the request ofSilk Way West Airlines ("Silk Way West") to amend its pending application for a foreign air carrier permit.

Otherthan a purported "greater economic efficiency" for its Baku- New York operation already authorized by the Department onprinciples ofcomity and reciprocity, Silk Way West has inits amended application submitted no validbasisfor an award ofthe additional, extraordinarily broad intermediate and beyond authority (Hong Kong & Luxemburg) it is again seeking and nothing has changed since the award to Silk Way West ofBaku -NewYork authority. The Department should not change its initial decision to decline awarding the incredibly broad intermediate and beyond authorities sought by Silk Way West.ANSWER OF NATIONAL AIRLINES Clearly it is Silk Way West's intentionto transport substantial Hong Kong- U.S. and U.S.- Luxemburg cargo, bothmajor U.S. all-cargo markets, but markets to which a carrier from
a country where there is no governing aviationbilateral agreement has no basis to operate. As reflected inthe Department's original award ofBaku-NY authority herein, there is any basis for the award ofsuch substantial major 3rd country authority onthe basis ofcomity and reciprocity which has not been demonstrated.

Inits October 24 Response to National's Answerto Exemption application, Silk Way West accuses National ofbeing "small-minded" and attempts to reprimand National for choosing to raise its bilateral problems in an Answer to SilkWay West's applications. However, far from being small-minded, in the absence ofany bilateral aviation mechanism and National recognizing that it is "on its own" as far as the local treatment ofits Azerbaijan operations, the only way for National to raise the local doing-business problems it has encountered is when an application for broad 3rd country authority on the basis ofcomity and reciprocity is filed by a carrier ofAzerbaijan.
Further, in connection with the comity and reciprocity principles which apply to U.S. Azerbaijan aviation relations, National has onmultiple occasions now effectively been denied
crew visas both in and out ofBaku due to unreasonable delays, thereby preventing and substantially hindering National's authorized operations inthe region.
Secondly, even whenNational has been able to operate flights to/from Baku, there have also been significant problems encountered associated with the price offuel required to be

2

### ANSWER OF NATIONAL AIRLINES uploaded in Baku. In earlier flights, National uploaded fuel at pre-negotiated rates from its regular fuel-supplier. However, in later fights National was obliged to purchase fuel from a designated fueler at a per gallonrate that was 22% higherthan National's pre-negotiated price. These differing fuel prices were charged for 2 back-to-hack flights and National believes the higher-priced fuel is clearly discriminatory.

Under these circumstances, Silk Way West's application should be denied as being unduly broad and inconsistent with the applicable governing aviation principles
.

October 29, 2014

# R~**ectfull** submitted, .,

. . 

### -· ' hy

. 0
. 1ces ofPierre Murphy

3 1200 New Hampshire Avenue, N.W. Suite 590 Washington, D.C. 20036 Telephone: (202) 776-3980 Facsimile: (202) 776-3975 Email: pmurphy@lopmurphy.com Attorney for National Air Cargo Group, Inc. d/b/aNational AirlinesCERTIFICATE OF SERVICE I hereby certify that I have on this day served a copy ofthe foregoing document onthis 29th day ofOctober 2014 upon each ofthe following email addresses: gpwicks@wicks-group.com ekagrimes@wicks-group.com sascha.vanderbellen@delta.com chris.walker@delta.com dshort@fedex.com sllunsford@fedex.com nssparks@fedex.com gbleopard@fedex.com msinick@ssd.com enisson@nac.aero mwiegele@nac.aero kevin.montgomery@polaraircargo
.com peter.beckett@polaraircargo.com dan.weiss@united.com pdoell@naca.cc robert.wirick@aa.com francis.heil@aa.com howard.kass@usairways.com benjamin.slocum@usairways.com rsilverberg@sgbdc.com ijohnson@sgbdc.com jrichardson@johnlrichardson.com jcanny@amerijet.com john@mietuslaw.com rpommer@atlasair.com matwood@cozen.com nwallace@wallaceair.com agoerlich@ggh-airlaw.com dhainbach@ggh-airlaw.com rzerkel@lac.lynden.com gwhite@lac.lynden.com jdavis@lac.lynden.com TGillies@southernair.com anita.mosner@hklaw.com jennifer.nowak@hklaw.com dsmalls@ups.com stephen.lachter@lachterlaw.com EngleTS@state.gov



# h4~f'it~ Kristin K. Leake