Application of Kalitta Air, LLC for an exemption BEFORE THE DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, DC

Docket DOT-OST-2002-12525 pursuant to 49 U.S .C. 

### § 40109 (U.S.-Hong Kong Scheduled All-Cargo) ) ) ) ) ) ) ) ) 

# ______________________________) APPLICATION OF KALITTA AIR, LLC

FOR RENEWAL OF AN EXEMPTION Communications with respect to this document should be addressed to:

March 30, 2015 Mark W. Atwood Cozen O'Connor The Army and Navy Club Bldg . 1627 I Street, NW Suite 1100 Washington, DC 20006 (202) 463-2513 matwood@cozen.com Counsel for Kalitta Air, LLC

NOTE: Any person may support or oppose this application by filing an answer and serving a copy of the answer on counsel for Kalitta Air, LLC and all persons listed on the attached service list. Answers to this exemption renewal application are due on or before April 14 , 2015.Application of Kalitta Air, LLC for an exemption BEFORE THE DE PARTMENT OF TRA NSPORTATION OFFICE OF THE SECRETARY WASHINGTON, DC

Docket DOT-OST-2002-12525 pursuant to 49 U .S.C. 

### § 40109 (U.S .-Hong Kong Scheduled All-Cargo) ) ) ) ) ) ) ) ) 

## ______________________________) APPLICATION OF KALITTA AIR, LLC

FOR RENEWAL OF AN EXEMPTION Pursuant to 14 U .S .C. 

### § 40109 and Subpart C of the Department's Procedural Rules (14 C . F.R . 

### §§ 302 .301 et seq .) , Kalitta Air , LLC ("Kalitta Air" or "Kalitta") hereby requests renewal of its exemption from the provisions of 49 U .S .C . 

### § 41101 authorizing it to engage in scheduled foreign air transportation of property and mail between the United States and Hong Kong . Kalitta requests that its exemption be renewed for an additional two years or for such longer period as the Department deems appropriate. 1 Kalitta invokes the automatic extension provisions of 5 U .S .C. 

### § 558(c) and Part 377 of the Department's Special Regulations to ensu re the continued effectiveness of its exemption pending final action by the Department on this application. In support of its application , Kalitta states as follows: 1. Kal itta Air is a Michigan limited liability company. It is a citizen of the United States within the meaning of the Statute , in that it is entirely owned by Mr.

1 On January 21 , 2005 , Kalitta Air applied for a certificate of public convenience and necessity authorizing it to operate scheduled all -cargo service between a point or poin ts in the United States and Hong Kong (Docket DOT-OST-2005-20149). That application remains pending.Conrad Kalitta , a U .S . citizen and resident of M ichigan. Mr. Kalitta is the sole owner of the compa ny, and all of the company's officers are U .S. citizens. 2 . Kalitta Air was initially granted an exemption on June 26, 2002 , allowing it to operate scheduled foreign air transportation of property and mail between New York , Chicago , and Los Angeles , on the one hand , and Hong Kong . That exemption authority was later renewed on September 5 , 2007 , authorizing Kalitta Air to operate scheduled all-cargo service between any points in the United States and Hong Kong. The exemption authority was most recently renewed on May 30, 2013 , and expires on May 30 , 2015 .23 . Kalitta Air now seeks renewal of its exemption authority to provide scheduled all-ca rgo service between the United States and Hong Kong . Since its inauguration of service to Hong Kong in 2002 , Kalitta Air has operated a high volume of flights at that point , both scheduled and charter. 4 . Kalitta Air has repeatedly been found fit , willing and able to provide the kind of air transportation contemplated herein . It holds a Certificate of Pub lic Convenience and Necessity for scheduled interstate cargo air transportation . This certificate was issued by Order 2000 - 11-27 dated November 29 , 2000. Kalitta Air also holds blanket Open Skies certificate authority as issued by Order 2007-7-14 , as well as exemption authority , allowing it to provide foreign air transportation to points in Asia , Europe , Latin Ame rica and the Middle East. 3 Nothing has occurred to impair Kalitta 's

2 Notice of Action Ta ken dated May 30 , 2013 , Docket DOT-OST-2002-12525 . 3 Notice of Action Ta ken dated May 13 , 20 1 3, Docket DOT-OST-2011 -0084 (U .S .-Brazil all cargo)( renewal pending ); Notice of Action Taken dated May 29 , 2012 , Docket DOT-OST-2010-0017 (U .S.-China al l-cargo )( renewal pending ) ; Notice of Action Taken dated March 19 , 20 1 3, Docket DOTOST-2009-0100 (U .S .-Afghanistan )( renewal pend ing ). 2fitness or to change the underlying information on which the Department has based its fitness determinations . 5 . Renewal of the requested U .S .-Hong Kong exemption authority is consistent with the publ ic interest. The exemption authority allows Kal itta to offer competitive U.S.-Hong Kong air cargo transportation to shippers both in the U .S . and abroad . Kalitta 's authority to serve Hong Kong is pe rmitted under the U .S .-Hong Kong air transport services agreement. The agreement allows U .S . airlines to operate from points in the United States via intermediate points to Hong Kong and beyond .4 6. As noted above , Kalitta wishes to invoke section 558(c) of the Administrative Procedure Act (5 U.S .C. § 558(c) , as implemented under 14 C.F.R. Part 377, pending DOT action on th is renewal request. This renewal application is being filed in a "timely and sufficient" manner as required by the statute .

4 Memorandum of Understanding Between the Government of the United States of America and the Hong Kong Special Administrative Region of the People 's Republi c of China , Octob er 19 , 2002 . 3WHEREFORE , Kalitta Air requests that the Department renew its exemption from the requirements of 49 U.S.C . 

### § 41101 to the extent necessary to permit the carrier to operate scheduled foreign air transportation of property and mail between the United States and Hong Kong. Kalitta requests that this authority be renewed for a period of two years or until such final action is taken by the Department to grant Kalitta Air's pending application for certificate authority for this service .

Dated : March 30 , 2015

4 Respectfully submitted,



# oo**~~~** Cozen O'Connor The Army and Navy Club Bldg . 1627 I Street , NW Suite 1100 Washington , DC 20006 (202) 463-2513 matwood@cozen.com Counsel for Ka litta Air, LLCCERTIFICATE OF SERVICE I hereby certify that on this 30th day of March 2015, I have caused a copy of the foregoing Application of Kalitta Air for Exemption Rene aHo**be ervretJ**  all persons listed below by e-mail.

### ~

JohnS. Duncan FAA john.s.duncan@faa.gov Robert Silverberg ABX Air, Inc . and Air rsilverberg@sgbdc.com Transport lnt'l Howard Kass American Airlines howard.kass@aa.com Robert Wirick robert.wirick@aa.com Abigail Donovan Abigail .donovan@aa.com John Richardson Amerijet lnt'l jrichardson@johnlrichardson.com Joan M. Canny jcanny@amerijet.com Russell Pommer Atlas Air rpommer@atlasair.com John R. Mietus Centurion Air Cargo, john@mietuslaw.com Inc. Sascha Vanderbellen Delta Airlines sascha .vanderbellen@delta .com Christopher Walker christopher.walker@delta.com Nancy S . Sparks Fed Ex nssparks@fedex.com Courtney E. Felts cefelts@fedex .com G . Bailey Leopard gbleopard@fedex.com Kevin Montgomery Polar Air Cargo kevin .montgomery@polaraircargo.com Aaron Goerlich Southern Air agoerlich@ggh-airlaw .com Dan Weiss United Air Lines, Inc . dan .weiss@united.com Steve Morrissey steve.morrissey@united.com Gerald Murphy gmurphy@crowell .com Anita Mosner UPS anita.mosne r@hklaw.com Jennifer Nowak jennifer.nowak@hklaw.com

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