Order 2015-4-15

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

on the 17th day of April, 2015

Served: April 17, 2015

Application of

AIR BALTIC CORPORATION A/S Docket DOT-OST-2015-0065

 

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

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

ORDER GRANTING EXEMPTION AND TO SHOW CAUSE

Summary

By this order we (1) grant the application of the referenced foreign air carrier for an exemption 

under 49 U.S.C. §40109, subject to conditions;1 and (2) tentatively find that it is in the public 

interest to grant the applicant the foreign air carrier permit attached as Appendix B to this order.

Background

By Notice dated May 3, 2007, we invited foreign air carriers of the European Union (EU) to 

apply for Department economic authority to conduct operations to and from the United States 

under the U.S.-EU Air Transport Agreement. In that Notice, we stated our intent to process 

requests for this authority under the “streamlining” procedures set out in our August 23, 2005 

Notice in Docket DOT-OST-2005-22228, in which we announced several steps designed to 

simplify our regulatory procedures for licensing foreign (and U.S.) air carriers. Our action in this 

Order serves to implement those streamlined regulatory procedures for the application involved 

in this proceeding.

Application

By application filed March 26, 2015, Air Baltic Corporation A/S (AirBaltic), a foreign air carrier 

of the Republic of Latvia, requests an exemption under 49 U.S.C. §40109 and a foreign air 

carrier permit under 49 U.S.C. §41301, to engage in the following services:

 1 The conditions are attached as Appendix A.
a. 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;

b. 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;

c. foreign scheduled and charter air transportation of cargo between any point or points in 

the United States and any other point or points;

d. other charters pursuant to the prior approval requirements set forth in 14 CFR Part 212 of

the Department’s economic regulations; and

e. transportation authorized by any additional route rights made available to European 

Union carriers under the U.S.-EU Agreement in the future.

AirBaltic states that it proposes to conduct its operations through a code-share arrangement with 

Uzbekistan Airways (Uzbekistan), on flights operated by Uzbekistan.

2

The applicant provided evidentiary materials required by 14 CFR Part 211 of our regulations to 

support its requests for authority.

No answers were filed to the application.

Decision

We have decided, consistent with our August 23, 2005 Notice referenced above, to grant the 

applicant’s request for exemption authority, as described below and subject to conditions, and 

tentatively to grant, subject to show-cause procedures, its request for a foreign air carrier permit, 

also subject to conditions.

Specifically, we will grant AirBaltic exemption authority for the services set forth in ordering 

paragraph 1 below. We will tentatively grant AirBaltic a foreign air carrier permit for these 

services, as discussed below.

As an additional matter, AirBaltic requested that we grant it, in addition to authority currently 

contained in the U.S.-EU Agreement, authority to conduct transportation authorized by any 

 2 AirBaltic states that it plans to offer scheduled service between Riga, Latvia and New York (JFK) by displaying its 

“BT” designator code on flights operated by Uzbekistan. Uzbekistan has filed a corresponding application for a 

statement of authorization under 14 CFR Part 212 to display the AirBaltic designator code on flights operated by 

Uzbekistan in scheduled foreign air transportation of persons, property and mail between any point or points in 

Uzbekistan, via any intermediate point or points, and any point or points in the United States. Uzbekistan plans to 

initially display AirBaltic's designator code on the Riga-New York (JFK) segment of Uzbekistan’s Tashkent-RigaNew York (JFK) service. See Docket DOT-OST-2015-0067. We will act concurrently on Uzbekistan’s application.
additional route rights that may be made available to European Union carriers in the future. We 

are granting AirBaltic this authority by exemption (and tentatively granting it by foreign air 

carrier permit). We are, however, requiring AirBaltic, before it commences any new service 

under this authority, to provide us with evidence that it holds a homeland license for that new 

service, unless it has already provided such evidence.3

With respect to the applicant’s request for exemption authority, we find that grant of this 

authority, as conditioned, is consistent with the public interest; that the applicant has 

demonstrated, based on the record, that it is financially and operationally qualified to perform the 

services authorized; and that it is substantially owned and effectively controlled in a manner 

consistent with the provisions of the U.S.-EU Agreement.

4

 We also find that the authority 

sought by the applicant is encompassed by the U.S.-EU Agreement. 

We also note that the applicant is properly licensed by its homeland to perform the proposed 

services. We have verified the applicant’s compliance with 14 CFR Parts 203 (Warsaw liability 

waiver), and 205 (insurance requirements).

In view of the above, we find that grant of the requested exemption authority, as conditioned, for 

a two-year term, or until the requested permit authority becomes effective, whichever occurs 

earlier, is warranted.

Tentative Findings and Conclusions--Foreign Air Carrier Permit Application

We tentatively find and conclude that the public interest warrants granting the applicant a foreign 

air carrier permit, in the form attached as Appendix B and subject to the conditions attached.5

 In 

particular, we tentatively find and conclude that the factors which support our grant of exemption 

authority to the applicant also warrant granting the applicant the foreign air carrier permit it 

seeks.

In view of the foregoing and all facts of record, and acting under authority assigned by the 

Department in its regulations, 14 CFR Part 385, we tentatively find and conclude that:

1. It is in the public interest to issue the applicant a foreign air carrier permit in the form 

attached; 

2. The applicant is fit, willing and able properly to perform the foreign air transportation 

described in the attached permit and to conform to the provisions of Title 49 of the U.S. Code, 

and to our rules, regulations, and requirements;

 3 See Orders 2007-6-19 and 2007-10-1, and Orders 2007-7-13 and 2007-10-16, where we granted this authority to 

British Airways Plc. and Virgin Atlantic Airways Ltd., respectively. 4 We make this finding based on Article 2 (Reciprocal Recognition of Regulatory Determinations with Regard to 

Airline Fitness and Citizenship) of the Protocol to amend the U.S.-EU Air Transport Agreement, signed June 24, 

2010. 

5 The applicant’s request for a foreign air carrier permit was summarized in the Department’s published weekly list 

of applications filed. This notice described the authority sought and gave interested persons an opportunity to 

submit evidence and objections to the award of this foreign air carrier permit authority. As noted above, no answers 

to the application were filed.
3. The applicant is substantially owned and effectively controlled in a manner consistent with 

the provisions of the U.S.-EU Agreement;

4. The public interest requires that the exercise of the privileges granted by the permit should be 

subject to the terms, conditions, and limitations contained in the attached permit, and to such 

other reasonable terms, conditions, and limitations required by the public interest as we may 

prescribe;

5. The issuance of this foreign air carrier permit will not constitute a major regulatory action 

under the Energy Policy and Conservation Act of 1975, as defined in 14 CFR §313.4(a)(1) of our 

regulations;6

6. The public interest does not require an oral evidentiary hearing on the application; and

7. Our action with respect to this foreign air carrier permit should, unless disapproved by the 

President of the United States under §41307 of Title 49 of the U.S. Code, become effective on 

the 61st day after its submission for §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 this portion of the Department’s decision under that section, 

whichever occurs earlier.

In view of the above, we find that, with respect to the exemption authority we are conferring on 

the applicant, the applicant is qualified to perform those operations, and that grant of the 

exemption authority is consistent with the public interest and would not constitute a major 

regulatory action under the Energy Policy and Conservation Act of 1975. 

ACCORDINGLY,

1. We grant the request of Air Baltic Corporation A/S for an exemption under 49 U.S.C. §40109 

for the services set forth below:

a. 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;

b. 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;

c. foreign scheduled and charter air transportation of cargo between any point or points in 

the United States and any other point or points;

 6

 This finding is based on the fact that the grant of this permit will not result in a near-term net annual change in 

aircraft fuel consumption of 10 million gallons or more.
d. other charters pursuant to the prior approval requirements set forth in 14 CFR Part 212 of 

the Department’s economic regulations; and

e. transportation authorized by any additional route rights made available to European 

Union carriers in the future.

2. Air Baltic Corporation A/S shall, before it commences any new service under subparagraph 

(e) of ordering paragraph 1 above, provide the Department in Docket DOT-OST-2015-0065 with 

evidence that it holds a homeland license for that new service, unless it has already provided 

such evidence to the Department;

3. The exercise of the privileges granted above is subject to compliance by Air Baltic 

Corporation A/S with the conditions listed in Appendix A;

4. In the conduct of the operations authorized, Air Baltic Corporation A/S may only operate 

through a code-share arrangement with a duly authorized and properly supervised U.S. or foreign 

air carrier, where Air Baltic Corporation A/S is not physically operating the flight to and from 

the United States;

7

5. Our action granting the exemption authority described herein is effective immediately, for a 

period of two years from the issue date of this order, or until the attached permit becomes 

effective, whichever is earlier;

6. We may amend, modify, or revoke the exemption authority set forth herein at our discretion 

at any time and without hearing;

7. To the extent not acted upon above, we dismiss the applicant’s request for exemption 

authority in this Docket (DOT-OST-2015-0065);

8. With respect to the applicant’s request for a foreign air carrier permit in this proceeding, we 

direct all interested persons to show cause why our tentative decision on that application, set 

forth above, should not be made final;

9. Any interested person objecting to the issuance of an order making final our tentative findings 

and conclusions with respect to the applicant’s request for a foreign air carrier permit shall, no 

later than twenty-one (21) calendar days after the date of service of this order, file with the 

Department and serve on the parties to this proceeding, a statement of objections specifying the 

part or parts of the tentative findings and conclusions objected to, together with a summary of 

testimony, statistical data, and concrete evidence to be relied upon in support of the objections; if 

objections are filed, answers to objections are due no later than seven (7) calendar days 

thereafter;

10. If timely and properly supported objections are filed, we will give further consideration to the 

matters and issues raised by the objections before we take further action;

 7 The Republic of Latvia has not been assessed under the Federal Aviation Administration’s International Aviation 

Safety Assessment (IASA) Program. 
11. In the event no objections are filed, all further procedural steps shall be deemed waived, and 

the Department will enter an order which will (subject to Presidential review under §41307 of 

Title 49 of the U.S. Code) make final our tentative findings and conclusions set forth in this 

order; and

12. We will serve a copy of this order on Air Baltic Corporation A/S; the Embassy of the 

Republic of Latvia; in Washington, D.C.; the Department of State; and the Federal Aviation 

Administration.

Persons entitled to petition the Department for review of this order under the Department’s 

regulations, 14 CFR §385.30, may file their petitions within seven (7) days after the date of 

issuance of this order. Our action with respect to the applicant’s request for exemption authority

under 49 U.S.C. §40109 is effective immediately, and the filing of a petition for review will not 

alter such effectiveness.

By:

PAUL L. GRETCH

Director

Office of International Aviation

(SEAL)

Appendices

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

http://www.regulations.gov
Foreign Air Carrier Exemption Conditions Appendix A

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 

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
Appendix B

 Issued by

 Order 2015-XX-XX

 UNITED STATES OF AMERICA 

 DEPARTMENT OF TRANSPORTATION 

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

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

PERMIT TO FOREIGN AIR CARRIER

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

AIR BALTIC CORPORATION A/S

A Foreign Air Carrier of the Republic of Latvia

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 the 

following services:

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 economic regulations governing charters; and

Transportation authorized by any additional route rights made available to European 

Union carriers 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-2015-0065.
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.

In addition, in the conduct of the operations authorized, Air Baltic Corporation A/S may only 

operate through a code-share arrangement with a duly authorized and properly supervised U.S. 

or foreign air carrier, where Air Baltic Corporation A/S is not physically operating the flight to 

and from the United States.

This permit shall be effective on Month XX, 2014. 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 the European Union and its Member States (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 of the applicable air services agreement between the United States and 

the European Union and its Member States. 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 

the European Union and its Member States become parties.

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

2015.

By:

PAUL L. GRETCH

Director

Office of International Aviation

(SEAL)
Foreign Air Carrier Permit Conditions

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 

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 1/2008