UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC

Issued by the Department of Transportation on November 26 , 2014

NO TICE OF ACTION TAKEN

– DOCKET DOT

- OST

- 2014

- 0194

_____________________________________________________________________________________ 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).

App lication of NORTHERN AIR CARGO , INC. ( NAC ) filed 11/12/14 for :

XX E xemption for two years under 49 U.S.C. §40109 to provide the following service: 1

Scheduled foreign air transportation of property and mail between the United States and all countries

wit h which the United Sates has entered into an Open

- Skies Agreement, as well as with any country with which the United States may in the future enter into such an agreement, once the agreement is being applied by both countries.

XX Certificate of Public Convenience and Necessity under 49 U.S.C. 41102 to provide the following service :

Scheduled foreign air transportation of property and mail between the United States and all countries with which the United Sates has entered into an Open

- Skies A greement, as well as with any country with which the United States may in the future enter into such an agreement, once the agreement is being applied by both countries.

Applicant representatives: Anita M. Mosner and Jennifer M. Nowak (202) 419

- 2604

DOT Analyst: Brett Kruger (202) 366

- 8025

D I S P O S I T I O N

XX Granted request for exemption authority (subject to conditions, see below ; see also Remarks below )

XX Deferred request for certificate authority 2

The above action granting exemption authority was effective when taken: November 26 , 2014

, through

November 26 , 20 1 6

, or until 90 days after final Department action on NAC’s corresponding application for a certificate of public convenience and necessity, whichever occur earlier

.

The above action deferring on the applicant’s request for certificate authority was effective when taken:

November 26 , 2014

.

Action taken by: Paul L. Gretch, Director

Office of International Aviation

XX The authority granted is consistent with open

- skies aviation agreements that are currently being applied

.

1 NAC has advised us informally that it is requesting this exemption authority on an expedited basis because, in connection with its desire to carry mail, including on a code

- share basis, it is facing a recently imposed December 8, 2014 deadline under the United States Postal Service International Commercial Air solicitation process to secure necessary regulatory approvals related to such operations

. 2 We will handle NAC’ s request for certificate authority separately.Except to the extent exempted or waived, this authority is subject to the terms, conditions, and limitations

indicated: XX Holder’s certificates o f public convenience and necessity

XX Standard exemption conditions (attached)

Conditions/Remarks : W e have decided to grant NAC the requested exemption authority to serve all open

skies partners; that is, foreign aviation partners with which the United States has entered into an O pen

- S kies

A greement where that agreement is being applied. We have also decided to grant to NAC exemption authority to serve Brunei Darussalam, Chile, Cook Isla nds, New Zealand, Samoa, Singapore, and Tonga, each a signatory to the Multilateral Agreement on the Liberalization of International Air Transportation (“MALIAT”). 3

We also grant the carrier blanket authority such that when an additional foreign aviation partner enters into an

open

- skies agreement with the United States, and where that agreement is being applied, authority to serve that

open

- skies partner will automatically be included as part of the carrier’s exemption authority without the need

for furt her action by the Department or the carrier. We find that the award of such authority, on a prospective basis, with the enhanced administrative convenience it would accord to the carrier, is consistent with the public

interest.

The Department’s Office of International Aviation maintains a list of currently applied open

- skies aviation agreements between the United States and its open

- skies partners. 4 The Department update s the list as open

skies partners are added

. 5

We acted on this application without a waiting expiration of the answer period with the consent of all parties served with the application.

_____________________________________________________________________________________ On the basis of data officially noticeable under Rule 24(g) of the Department's regu lations, 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 exemption 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 or deferred , we denie d all requests in the r eferenced

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 review of the action set forth in this Notice und er 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.gov

3 We have open

- skies relationships with the Cook Islands, Samoa and Tonga, under the MALIAT. Also, the MALIAT supersedes our bilateral open

- skies agreements with Brunei, Chile, New Zealand, and Singapore.

4 S ee http://www.dot.gov/policy/aviation

- policy/open

- skies

- agreements

- being

- applied for the list of open

- skies agreements that are being applied.

5 The Department wi ll also update the list if an open

- skies partner is removed and will provide notice when this occurs. Notice will be provided by publication in the Federal Register

.

### 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 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, containe d 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 requi rements 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 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 w hether 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 holde r is in compliance with the conditions imposed above.

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