UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on May 11 , 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 : Air Ch arter Scotland Ltd. ( ACSL ) Date Filed: April 24, 2012, as supplemented April 26, 2012

Relief requested: Exemption under 49 U.S.C. §40109 to engage in the following services, using small aircraft :

a. foreign charter air transportation of persons, prop erty, 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 charter air transportation of pe rsons, 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 charter air transportation of cargo between any point or points in the United States and any ot her point or points;

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

e. charter transportation authorized by any additional route rights that may be made available to European Unio n carriers in the future

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Applicant representative: C.A. Southerland

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- 4848 DOT analyst: Brett D. Kruger , 202

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Responsive pleadings: None.

DISPOSITION

Action: Approved

. Action date: May 11 , 2012

Effective dates of authority granted: May 11 , 2012 , through May 11 , 2014.

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

- E U A ir Transport Agreement

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

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Special conditions/Remarks: Based on the record in this case , w e found that ACSL is operationally and financially qualified to conduct the proposed services, and that it is substantially owned and effectively con trolled in a manner consistent with the provisions of the US.

- EU Agreement. 1 2 We also note that the applicant is properly licensed by its

1 We make this finding based on Article 2 (Reciprocal Recognition of Regulatory Determin ations with Regard to Airline Fitness and Citizenship) of the Protocol to amend the U.S.

- EU Air Transport Agreement, signed June 24, 2010.

2 The applicant has requested confidential treatment of its financial submissions, under the provisions of 14 CFR §30 2.12. Good cause having been shown, we will grant this request.homeland to perform the proposed services. In addition, on May 9, 2012, the FAA advised us that it knows of no reas on why we should act unfavorably on the applicant’s request.

With regard to the authority granted here to ACSL to conduct charter transportation authorized by any additional route rights made available to European Union carriers in the future, we are requiring ACSL , before it commences any new service under this authority, to provide us with evidence in this Docket that it holds a homeland license for that new service, unless it has already provided such evidence.

The authority granted above is limited to servi ces using small 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.

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 w as 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 and Co nservation

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 r eview 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 effective when taken, and the filing of a petition f or review will not alter such effectiveness.

An electronic version of this document is available on the World Wide Web at: http://www.regulations.govForeign Air Carrier Exemption 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) C omply 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 t he 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 Transportatio n 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 Governm ent 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 operati ons 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 purchase d 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 applica ble 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 D epartment, 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 imp osed 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