### BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.
) Request ) ) of Silk Way West Airlines ) Docket OST 2014-0111 to amend issued exemption authority and ) pending application for a foreign air carrier permit ) and motion to expedite processing ) (Baku- Hong Kong-Chicago

-New York- Luxemburg- Baku) )


### RESPONSE OF SILK WAY WEST AIRLINES TO ANSWERS OF NATIONAL AIRLINES TO SILK WAY WEST AIRLINES MOTION TO EXPEDITE PROCESSING AND REQUEST OF SILK WAY WEST AIRLINES

TO AMEND EXEMPTION AUTHORITY
Communications with respect to this document should be sent to: KAMRAN GASIMOV Director /CEO GLENN P. WICKS EKATERINA A. GRIMES SILK WAY WEST AIRLINES Heydar Aliyev International Airport Baku , AZ

- 1 044 , Republic ofAzerbaijan



### Dated: October 24, 2014 THE WICKS GROUP , PLLC 733 10 1 h Street NW, Suite 3002 Washington, DC 20001 (202) 457-7790 gpw icks @ wicks-gro up.com ekagrimes @ wicks-group.com 

### For: SILK WAY WEST AIRLINESBEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.
) Request ) ) of Silk Way West Airlines ) Docket OST 2014-0 I 11 to amend issued exemption authority and ) pending application for a foreign air carrier permit ) and motion to expedite processing ) (Baku-Hong Kong-Chicago-New York-Luxemburg-Baku) )



# ______ __ ____________________________ ) RESPONSE OF SILK WAY WEST AIRLINES TO ANSWERS OF NATIONAL AIRLINES TO SILK WAY WEST AIRLINES MOTION TO EXPEDITE PROCESSING AND REQUEST OF SILK WAY WEST AIRLINES

TO AMEND EXEMPTION AUTHORITY
On October 8, 20 14 , Silk Way West A irlines ("Si lk Way West) submitted to the Department of Transportation ("Department") a request that the exemption authority granted to it by Order 2014-8-125 in Docket DOT-OST-2014-0lllbe expanded to allow it to implement scheduled air transportation ofproperty and mail on the route Baku-Hong Kong-Chicago-New York-Luxemburg-Baku, with no US domestic cargo transportation between the points of Chicago and New York ("Request to Amend"). Silk Way West further motioned the Department for expedited consideration of its Request to Amend, and
was polling the US carriers on the attached service list. 

### In its Request to Amend Silk Way West stated that it was requesting the broader authority and the expedited consideration of its request in order to ensure greater economic efficiency and a better benefit to the current market of cargo air transportation. Silk Way West further maintained that an expedited consideration and grant of its Request to Amend is in the public interest as Silk Way West will provide the much needed services

- 2-in the U.S.-Azerbaijan aviation market, as well as in the broader international market of cargo air transportation by pro viding additional capacity and helping to meet the requirements for cargo air transportation services in the high season and peak demand. Silk Way West's ability to timely implement its service during the high season will also serve as
a justification and incentive for its recent acquisition ofbrand new Boeing 747-8F aircraft. Silk Way West also stated that , pending finalization of the broader bilateral undertakings between the United States and the Republic ofAzerbaijan , its proposed services that are the subject ofthe Request to Amend are based upon comity and reciprocity between the Government ofthe United States and the Government of Azerbaijan, and that Silk Way West had been formally designated by the State Civil Aviation Administration of the Republic of Azerbaijan (SCAA) to operate the proposed services. A formal letter from the State Civil Aviation Administration ofthe Republic ofAzerbaijan confirming Silk Way West's designation for the specific route requested herein, as well as reiterating SCAA ' s adherence to the principles of comity and reciprocity in considering any similar applications from US carriers , is being currently transmitted to the Department. Silk Way West continued polling its Request to Amend past the requested shortened comment period pending transmission ofthe designation and reciprocity letter to the Department. On October 20, 2014, Silk Way West received the Answer of National Airlines ("National") to Silk Way West ' s Motion to Expedite Processing containing an objection to the Motion to Expedite and a statement that National will be filing answers to the application to amend Silk Way West's authority "due to problems it has encountered in Azerbaijan." On October 23 , 2014, Silk Way West received a second answer ofNational enumerating it s objections. Specifically, National states that the Department should not grant the requested authority on the grounds that (1) nothing has changed since the initial grant of authority; (2) the service requested is " incredibly broad " in nature; (3) the DOT should not " change its original decision " (pinning its analysis to the idea that DOT did not

- 3-grant this in its initial grant of authority); and (4) National has "on multiple occasions " not received crew visas " in and out of Baku. " For these reasons , National argues that DOT should deny Silk Way West's pending request to amend its authority. In response to National 's October 20 , 2014 and October 23, 2014 filings, Silk Way West hereby submits as follows: National ha s offered scant substantive grounds for its response. Following National 's initial filing , Silk Way West, through its senior executives , reached out to their counterparts at National to seek clarification of National's alleged concerns. Instead of responding with a specific concern that Silk Way West could promptly address, National chose to wait several days to file its answer through counsel. Given the actual amount of time required to draft a re sponsive pleading that can essentially be reduced to a single paragraph in substance, Silk Way West finds it hard to believe that this is anything more than an effort to game the Department ' s procedural rules to delay a decision for a short term business advantage for National. Similarly, the suggestion by National in its initial filing that there are "prob lem s it has encountered in Azerbaijan" has n ot in any way been substantiated by National in its second filing , and seems to be a gross overstatement. First, there is only one "prob lem " cited- namely that certain crew v i sas " in and out of Baku " have been denied

. On its face , Nation al fails to cite even one instance. Indeed , there is no allegation that there is currently a problem. Visa matters do infrequentl y become problematic both for foreign carriers operating to the United States , and US carriers operating to other countries. However, predominantly, such problems are resolved through cooperative work of those carriers with the Consulates and other appropriate entities ofrespective countries. Upon inquiry, Silk Way West has been advised that National ' s visa issues have consistently been resolved in Baku through appropriate channels. Specifically, in one case when at the end ofJanuary 2014 several flights by National were delayed in Baku for several days which caused the 

### - 4

-involved crews to outstay the 72-hour visa-free stay limit that was available to them , with the assistance of Silk Way West and Baku Logistics Center management, the issue was resolved with Azeri immigration authorities promptly and without any delay of the flight departures. Similarly, other instances of crews outstaying the 72-hour limit due to weather
or other operational concerns ofNational were reso lved by National ' s representatives in Baku. Silk Way West , in fact , notes that National ' s representatives in Baku have commended the level of cooperation and the level of support National has been receiving in its Baku operations. See Exhibit 1. Simi larl y, in cases when Azeri carriers have faced visa issuance problems for their crews flying to the United States, rather than attempting to use the issue as a basis to stop National or other US carriers ' ongoing operations , they worked diligently with the US and Azeri consulates to establish a procedure to resolve the problem

. Indeed, Silk Way West expects to do the same when it initiates its US services. Moreover, the fact that Silk Way West had to itself inquire to determine the nature ofNational ' s objection , when National would indicate how little National is willing to exert itself

- even when attempting to establish an objection before the Department of Transportation, is telling in itself. The DOT should not give weight to s uch lightly considered objections. Therefore, it remains unclear to Silk Way West why National sees fit to object to Silk Way West ' s mere ability to initiate a meaningful and economically beneficial operation, based on that which is a common experience in both the US and other countries. That National has raised this to the level of an objection in a pending application for authority is irresponsible

. Once again, this appears to be a thinly veiled delay tactic calculated to prevent Silk Way West from starting a timely and commercially sound operation during the traditional high season for cargo that would benefit the shipping public. This has a clear and actual harmful effect on the shipping public with no obvious redeeming value.

- 5 -Furthern1ore, National argues that (1) nothing has changed since the initial grant of authority; (2) the service requested is " incredibly broad " in nature; and (3) the DOT should not " change its original decision. " These assertions have no merit. First, Silk Way West's original request for authority was broadly stated and did not stipulate the route that is the subject ofthis proceeding. S ilk Way West did request intermediate points, but did not specify those points. As such, its request for amendment specifies intermediate points that
are necessary to make the service economically viable. At the time , DOT informed Silk Way West that it wou ld issue a more limited authority than requested, but in the event that S ilk Way West had specific plans to start a specific route, S ilk Way West should request it and it would be given due consideration. Hence, something has changed since the original request for authority. Namely, Silk Way West has a specific route and specific members of the shipping public it wishes to serve and is, consistent with DOT's indications , now requesting it. Moreover, the service requested is not " incredibly broad. " Rather, it is quite specific albeit consistent with Silk Way West ' s original request. National might notice that the header to this application notes it as "Baku-Hong Kong-Chicago-New York-LuxemburgBaku

. " Silk Way West is unsure how four intermediate points on a Baku to Baku route has become "incredibly broad " authority. Rather, its request is specific and tailored to Silk Way West's customer needs. Notably , National has been exercising extensive de facto fifth freedom charters in its operations to/ from Baku as a part ofthe USTC multi-modal program. Silk Way West further states that, as is evidenced in the applicable letter supporting comity and reciprocity, that the Government of Azerbaijan is both willing and ready to support reciprocal rights. As noted above, National , along with numerous other US carriers, has already operated extensive operations from Baku under the multi-modal program for the United States Transportation Command, including fifth freedom rights. Therefore , contrary to National's statement, comity and reciprocity has indeed been demonstrated by the Azeri
side in its treatment of US carriers operating to/ from and through Azerbaijan.

- 6
-In this regard , Silk Way West notes that DOT's willingness to entertain its request during the on-going negotiati ons for open skies , of which Silk Way West has been consistently supportive , is deeply appreciated and will continue to be met with reciprocal rights. Indeed , Silk Way West urges that DOT not allow the small

- minded short term inter ests ofa bankrupt (and po ss ib ly soon to be defunct) carrier to influence the long-term po s itive rel ationship that the Government of Azerbaijan and the Government of the United States have enjoyed over many years . Finally, Silk Way West hereby notifie s the Department that it has completed the poll of it pending Reque st to Amend , and , with the exception ofNational's objection to shorten the comment period and its subsequent answer, has not r eceived any procedural or
sub stantive objections , comments or answers from any other carrier o n the service li st. 

## * * * * * * * WHEREFORE, Silk Way West respectfully requests that the Department grant its request for a foreign air carrier permit and exemption , as amended , to allow it to implement scheduled air transportation of property and mail on the route Baku-Hong KongChicago -New York-Luxemburg -Baku (with no US domestic cargo transportation between the points of C hicago and New York) , or such other or further re li ef as the Department determines to be appropriate and consistent with the public inter est. Si lk Way West al so
r espectfull y motio n s t he Department fo r expedited cons ideration of its pending Request. Respectfully submitted , 

# J){L, f

# /IJ:a

GLENN P. WICKS Co unsel for Silk Way West Airlines 

# +

EKATERINA A. GRIMES Con sultant for Si lk Way West Airlines



### - 7-EXHIBIT 1From: Rohan Wijayasundara [ mailto : rwijayasundara @ nationala i rcargo .com ] Sent: Friday, February 07, 2014 11:52 AM To: Teymur Qasanov Cc: Alan White Subject: Thank You !

Dear Sir, Salam , First of all , on behalf of our Senior Management, we would like to thank you from the bottom of our hearts for all your kind assistance that was rendered to us from day one up to this minute as I type this message. It truly gives us immense pleasure working with you and all associates of the various departments here at Baku Cargo Terminal. As a result, it has given us confidence and strong spirit for our upcoming OJ?erations at GYD

. All in all , we look forward for a long lasting affiliation with you and all at BCT

. Here's wishing you a pleasant and eventful

**w~ekend**

**.** Best Regards, Lt Col (Retd) Rohan Wijayasundara RWP RSP BA ( Def) National Air Cargo Baku, Azerbaijan GSM # + 994 5145 207 95 

# INATTONM DESTINATION EXCELLENCE

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1CERTIFICATE OF SERVICE
I hereby certify that I have on thi s day served a copy of the foregoing document up on each ofthe following electronic ma il addresses:

sascha. vanderbellen@delta.com sametta.c .b amett@delta.com chris. walker@delta.com dshort @fedex.com sllunsford@fedex.com n ssparks@fedex.com gbleopard @fedex.com ms inick @ssd .com enisson@nac.aero mwiegele @ nac.aero kevin.montgomery@polaraircargo .com peter.beckett @ polaraircargo.com dan.wei ss@ coair.com dan.weiss@united

.c om pdoell @naca.cc robert

. wirick@aa.com francis.heil @aa.com how ard ka ss@ usairways.com benjamin. s locum@usairways.com rsilverberg@sgbdc.com jjohnson @sgbdc.com jrichardson@ johnrichard son. com mriordan@j ohnrichardson.com jcanny@amerijet.com john @ mi etu slaw .com rpommer@atlasair.com matwood @cozen .com nwall ace@waU aceair.com agoerlich@ggh-airlaw.com dhainbach@ggh

- airlaw.com jud y@lac.lynden .com rzerkel @ lac.lynden.com gwhite @ lac. lynden.com jdavis@lac .lvnden.com

Ekaterina A. Grimes TGillies@southemair.com info @airlineinfo.com anita.mosner@hklaw.com j ennifer

. nowak @ hklaw .com d small s@ ups.com stephen

. lachter @ lachterlaw.com pmurphy @ lopmumhy.com kleake@ ggh-airlaw .com EngleTS @state. go v

Dated: Octo ber 24,2014