UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on July 14

, 20 1 4



### N OTICE OF ACTION TAKEN

– DOCKET DOT

- O ST

- 20 1 2

- 0148

________________________________________________ ________________________________________________________________________________ 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).

Joint Applicant s : OPEN JOINT STOCK COMPANY TRANSAERO AIRLINES ( Transaero )

Date Filed: May 30, 2014

Relief requested: Renewal of e xemption from 49 USC § 41301 to permit Transaero to provide scheduled foreign air transportation of persons, property, and mail between Moscow and Boston, Los Angeles, Orlando, and San Francisco by

code

- sharing on flights operated by Virgin Atlantic Airways Ltd (Virgin Atlantic) between London, on the one hand, and Boston, Los Angeles, Orlando, and San Francisco, on the other hand. Transaero requests that this authority be granted for

a two

- year term.

If renewal, date and citation of last action: July 30 , 2013 , in this Docket.

Applicant representative s : Gerald F. Murphy and Steven J. Seiden

, 202

- 624

- 2500

DOT analyst: B rett D. Kruger , 202

- 366

- 8025

Responsive pleadings: None

DISPOSITION

Action: Approved in part , subject to conditions, remainder (request for longer

- term authority) dismissed. 1

Action date: July 14 , 2014

Effective dates of authority granted: July 14 , 2014

, through July 14 , 2015

.

Basis for approval (bilateral agreement/reciprocity): T he Annexes to the 1994 U.S.

- Russian Federation Air Transport Agreement. 2

Except to the extent exempted/waive d , this authority is subject to the terms, conditions, and l imitations of our standard foreign air carrier exemption conditions ( attached ), the code

- share conditions previously imposed on Transaero, and to the

otherwise

- applicable terms, conditions, and limitations of Transaero’s foreign air carrier permit (Order 2 01 3

- 3

- 3 ).

Special conditions/Remarks: The exemption authority granted to Transaero is limited to services provided on a

code

- share basis only, only on flights operated by Virgin Atlantic.

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

________________________________________________________ ___________________________________________________

1 The one

- year duration of the authority we granted Transaero is consistent with our usual policy of granting exemption authority in the circumstances presented. We therefore, dismissed the application to the extent that it sought exemption authority for a longer period.

2 On February 1 4 , 20 13 , the United States and the Russian Federation agreed, ad referendum , to revised Annexes to the U.S.

- Russia Air Transport Agreement and stated that, pending their entry into force, the respective aeronautical authorities inten d to implement the pr ovisions of those Annexes on the basis of comity and reciprocity

.Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our action was consistent w ith Depar tment policy; (2) the applicant was 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 an d Conservation Act of 1975. To the extent not granted or 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 pe tition 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 Wide Web at: http://www.regulations.govAppendix A



### Foreign Carrier Exempt ion 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 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 n ot 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 flig hts) 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 plan s 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 airwo rthiness 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 Warsa w 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 an y 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 agree d 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

"i nternational 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 its homeland;

(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 requir ed 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.

12/2007