UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC

Issued by the Department of Transportation on July 28 , 20 1 1

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).

Application of KALITTA AIR, L.L.C. ( Kalitta ) filed 7/5 /2011 for:

XX Renewal of e xemption for two years under 49 U.S.C. 40109 to provide the following service:

Scheduled foreign air transportation of property and mail between the United S tates and Hong Kong

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Applicant rep : Mark W. Atwood (202) 463

- 2513 DOT Analyst: Brett D. Kruger (202) 366

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D I S P O S I T I O N

XX Granted

XX Granted w aiver of advance filing requirement under Part 377 1

The above action granting exem ption authority was effective when taken: July 28 , 20 1 1 through July 28 , 20 1 3 , or until 90 days after final Department action on Kalitta’s corresponding application for a certificate of public convenience and necessity in Docket DOT

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- 20149 , whichever occurs earlier

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The above action granting a waiver was effective when taken: July 28 , 2011

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Action taken by: Paul L. Gretch, Director

Office of International Aviation

XX The authority granted is consistent with the October 19, 2002 Memoran dum of Understanding between the United States and the Hong Kong Special Administrative Region of the People’s Republic of China

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

indicated:

XX Holder’s certificates of public convenience and necessity

XX Standard exemption conditions (attached)

On the basis of data officially noticeable under Rule 24(g) of the Department's regulations, we found the applicant qualified to provide t he 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

1 Kalitta’s renewal application was not timely filed under the terms of 14 CFR 377.10(c) and the carrier requested a waiver. In the circumstances presented, including the absence of opposition to Kalitta’s application, we will grant the carrier a waiver of the advance filing requirement.Docket. We may amend, modify, or revoke the authority grant ed 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) da ys 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

### 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 authority from the governm ent 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 r equirements 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, conc erning 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

concern ing 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 charter 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 be 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