UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC

Issued by the Department of Transportation on May 16 , 2011

NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 2011

- 0092

______________________________________________________________________________ ____________ ___________________________ 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).

Application of SKY LEASE I , INC. D/B/A TRADEWINDS D/B/A TRADEWINDS AIRLINES ( Sky

Lease ) filed 5/5 /11 for:

XX Exemption under 49 U.S.C. 40109 to provide the following service:

Scheduled foreign air transportation of property and mail between a point or points in the United States, on the one hand, and a point or points in the People’s Republic of China, on the other hand, via intermediate points and beyond China. 1 Sky Lease also requests that this exemption authority be integrated with its existing exemption and certificate authority.

Applicant rep : William C. Evans ( 410 ) 827

- 5074 DOT Analyst: Robert J. Finamore (202) 366

- 2405

D I S P O S I T I O N

XX Granted , subject to conditions (see below)

The above action was effective when taken: May 16 , 2011 through May 16 , 2013

. Action taken by: Paul L. Gretch, Director

Office of International Aviation

XX The authority granted is consistent with the Air Transport Agreement, as amended, between the United States and the People’s Republic of China.

Except to the extent exempted or waived, this authority is subject to the terms, conditions, and limitations

indic ated:

XX Holder’s certificates of public convenience and necessity

XX Standard exemption conditions (attached)

Special conditions/R emarks: The route integration authority granted is subject to the condition that any

service provided under this exemption shall be consistent with all applicable agreements between the United States and the foreign countries involved. Furthermore, (a) nothing in award of the route integration authority granted should be construed as conferring upon Sky Lease rights (including fifth

freedom intermediate and/or beyond rights) to serve markets where U.S. carrier entry is limited unless Sky Lease notifies the Department of its intent to serve such a market and unless and until the Department

has com pleted any necessary carrier selection procedures to determine which carrier(s) should be authorized to exercise such rights; and (b) should there be a request by any carrier to use the limited

- entry route rights that are included in Sky Lease’s authority by virtue of the route integration exemption granted

1 Sky Lease states tha t it initially plans to serve the Miami

- Anchorage

- Shanghai market using MD

- 11 aircraft, with additional potential service to Houston, Chicago, and Los Angeles.here, but that are not then being used by Sky Lease, the holding of such authority by route integration will not be considered as providing any preference for Sky Lease in a competitive carrier selection proceeding.

We acted on this application prior to the expiration of the 15

- day answer period with the consent of all parties served.

On the basis of data officially noticeable under Rule 24(g) of the Department's regulations, we found the applicant qualified to provide the exemption services authorized.

Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our action was consistent with Department policy; (2) grant of the authority was consistent with the public interest; and (3) 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, we denied all requests in the referenced Docket. We may amend, modify, or revo ke the authority granted in this Notice at any time without hearing at our discretion.

Persons entitled to petition the Department for review 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 for review will not alter such effectiveness.

An electronic version of this document is available on the World W ide Web at: http://www.regulations.gov

### Attachment

U.S. Carrier Exemption Conditions

In the conduct of the operations authorized, the U.S. carrier applicant(s) shall:

(1) Hold at all times effective operating a uthority from the government of each country served;

(2) Comply with applicable requirements concerning oversales contained in 14 CFR 250 (for scheduled operations, if authorized);

(3) Comply with the requirements for reporting data contained in 14 CFR 241;

(4) Comply with requirements for minimum insurance coverage, and for certifying that coverage to the Department, contained in 14 CFR 205;

(5) Except as specifically exempted or otherwise provided for in a Department Order, comply

with the requirements of 14 CFR 203, concerning waiver of Warsaw Convention liability limits and defenses;

(6) 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, 49 CFR Part 1544. To assure compliance with all applicable U.S. Government requirements concerning security, the holder shall, before commencing any new service (including charte r flights) to or from a foreign airport, contact its Principal Security Inspector (PSI) to advise the PSI of its plans and to find out whether the Transportation Security Administration has determined that security is adequate to allow such airport(s) to b e served ;

(7) Comply with such other reasonable terms, conditions, and limitations required by the public interest as may be prescribed by the Department of Transportation, with all applicable orders and regulations of other U.S. agencies and courts, and with all applicable laws of the United States.

The authority granted shall be effective only during the period when the holder is in compliance with the conditions imposed above.

1/2008