UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on January 16 , 20 1 4



### 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: EL AL ISRAEL AIRLINES LTD. (El Al) Date Filed: December 18, 2013

Relief requested: Renewal and amendment of e xemption from 49 USC §41301 to permit the applicant to engage in (1) scheduled foreign air transportation of persons, property, and mail from points behin d Israel, via Israel and intermediate points, to points in the United States and beyond ; (2) charter foreign air transportation of persons, property, and mail from points behind Israel, via Israel and intermediate points, to points in the United States and beyond; and (3) other charters pursuant to 14 CFR Part 212

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If renewal, date and citation of last action: December 22, 2011 , in this Docket.

Applicant representative s : Malcolm L. Benge and David M. Endersbee , 2 0 2

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- 7904 DOT analyst: Brett D. Krug er , 202

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Responsive pleadings: None.

DISPOSITION

Action: Approved (subject to conditions, see below) . Action date: January 16 , 2014

Effective dates of authority granted: January 16 , 2014 , throug h January 16 , 2016

Basis for approval (bilateral agreement/reciprocity): U.S.

- Israel Air Transport Agreement.

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

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

______________________________________________________________________ ______________________________ Under authority assigned by the Department in its regulations, 1 4 CFR Part 385, we found that (1) our action was consistent with Department policy; (2) the applicant was qualified to perform its proposed operations; (3) grant of the authority was consist ent with the public interest; and (4) 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/deferred/dismissed, we denied all requests in the referenced Docket. We may amend, modify, or revoke the authority granted in this N otice at any time without hearing at our discretion.

1 El Al’s current exemption permits it to engage in scheduled foreign air transportation of persons, property, and mail from points behind Israel, via Israel and intermediate points, to points in the United States and beyond . That authority was limited to the placement of El Al ’s code on flights operated by American Airlines, Inc., until such time as Israel attained a Category I rating

under the FAA ’ s International Aviation Safety Assessment ( IASA ) Program (s ee Notice of Action Taken dated December 22, 2011, in this Docket) . El Al now reques ts amendment of its authority to the extent necessary to remove that condition , consistent with the FAA’s rating of Israel as Category I under the IASA program . El Al also requests amendment of its authority to include charter rights available under the U .S.

- Israel Open Skies Agreement, and other charters pursuant to 14 CFR Part 212.Persons entitled to petition the Department for review of the action set forth in this Notice under the Department’s regulati ons, 14 CFR §385.30, may file their petitions within seven (7) days after the date of issuance of this Notice. This action was effective when 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

### Foreign Carrier Exemption Conditions

In the conduct of the operations authorized, the foreign carrier applicant(s) shall:

(1) Not conduct any operations unless it holds a currently effective authorization fro m 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 holde r 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 Interna tional Principal Security Inspector) to advise the I IR 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 min imum 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 Manage ment 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 t he 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 respec t 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 Unite d 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 t ribunal 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 purpos e of this definition;

(8) Except as specifically authorized by the Department, originate or terminate all flights to/from the United States in its homeland;

(9) Comply with the requirements of 14 CFR Part 217, concerning the reporting of scheduled, nonsc heduled, 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 o ther 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. Cod e.

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