BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF TH E SECRETARY WASHINGTON, D.C.

Application of

Bertelsmann Aviation GmbH

For a foreign air carrier permit pursuant to 49 U.S.C. § 41301 and exemption authority pursuant to 49 U.S.C. § 40109 (U.S.-Europe) Docket DOT-OST-2011-

APPLICATION OF BERTELSMANN AVIATION GMBH FOR A FOREIGN AIR CARRIER PERMIT AND EXEMPTION AUTHORITY

Communications with respect to this document should be sent to:

Gary B. Garofalo Erin M. Tallardy Jason E. Maddux Garofalo Goerlich Hainbach PC 1200 New Hampshire Avenue NW Washington, D.C. 20036 Phone 202-776-3970 Fax 202-776-3975 ggarofalo@ggh-airlaw.com etallardy@ggh-airlaw.com jmaddux@ggh-airlaw.com

Counsel for Bertelsmann Aviation GmbH

July 29, 2011

Notice: Any person who wishes to support or oppose this applic ation may file an answer and serve that answer on above-name d counsel and all persons serv ed with the application. Answers to the exemption applic ation are due by Augu st 15, 2011, and answers to the permit application are due by August 19, 2011.BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF TH E SECRETARY WASHINGTON, D.C.

Application of

Bertelsmann Aviation GmbH

For a foreign air carrier permit pursuant to 49 U.S.C. § 41301 and exemption authority pursuant to 49 U.S.C. § 40109 (U.S.-Europe) Docket DOT-OST-2011-

APPLICATION OF BERTELSMANN AVIATION GMBH FOR A FOREIGN AIR CARRIER PERMIT AND EXEMPTION AUTHORITY

Pursuant to 49 U.S.C. § 41301 and Parts 211 and 302 of the Department’s Regulations,

Bertelsmann Aviation GmbH (“Bert elsmann”) hereby applies for a foreign air carrier permit to the

full extent authorized by the Air Transport Agreem ent Between the United States and the European

Community and the Member Stat es of the European Community (hereinafter the “US-EC

Agreement”) to enable it to engage in:

i. foreign charter air transportation of persons and property from any po int or points behind any Member State of the Eur opean Union via any point or points in any Member State and via intermediate points to any point or points in the United States and beyond;

ii. foreign charter air transportation of persons and property between any point or points in the United States and any point or points in any member of the European Common Aviation Area;

iii. other charters pursuant to the prior approval requirements set forth in Part 212 of the Department’s Economic Regulations; and

iv. transportation authorized by any additional route rights made available to European Community carriers in the future.2 Bertelsmann further requests exemption authority under 49 U. S.C. § 40109 to the extent

necessary to enable it to provide the services descri bed above pending issuance of a foreign air carrier

permit and such additional or other relief as the De partment may deem necessary or appropriate.

Bertelsmann requests that the authority describe d above be issued expeditiously and that the

Department process this application pursuant to the streamlined regulatory procedures for licensing

U.S. and foreign air carriers set forth in the No tice dated August 23, 2005 (Docket OST-2005-22228),

and issue a single order (1) granting the requested ex emption authority for a tw o-year period or until

the requested permit authority b ecomes effective, whichever occu rs first, and (2) approving the

corresponding foreign air carrier permit under the sh ow-cause procedures desc ribed in the August 23,

2005 Notice. Bertelsmann further requests the Depa rtment process this application pursuant to the

streamlined regulatory procedures for licensing European Union air carriers pursuant to the

provisions of the U.S.-EU Recipro cal Recognition Procedur es set forth in the Department’s notice

dated February 19, 2009.

In support of this application, Bertelsmann states as follows:

1. The United States and th e European Community successf ully concluded negotiations

for a new air transport agreement on March 2, 2007. The US-EC Agreem ent was approved by the

European Council on March 22, 2007 , and was signed on April 30, 2007, to be provisionally applied

beginning March 30, 2008. Bertelsm ann is requesting authority to th e full extent provided by the USEC Agreement and automatic application of a dditional rights made av ailable to European

Community carriers in the future.

2. The full name and addr ess of the applicant is:

Bertelsmann Aviation GmbH Carl-Bertelsmann-Stra ß e 270 33311 G ü tersloh / Germany3 The applicant is a corporation organized under the laws of Germany.

3. The name and official address of th e government air transport authority having

regulatory jurisdiction over Bertelsmann is:

Luftfahrt-Bundesamt D-38144 Braunschweig Germany

4. Bertelsmann holds an Operating License au thorizing operation of the aircraft listed in

its Air Operator Certificate D-174 AOC. Bertelsmann’s Operating Li cense, Air Operator Certificate

and Operations Specifications are attached as Exhibit 1.

5. Since March 30, 2008, air tr ansportation between the United States and Germany is

governed by the Air Transport Agreement Between the United States and th e European Community

and the Member States of the European Comm unity (signed April 30, 2007). The authority

requested here is consistent with that agreement.

6. Bertelsmann requests this authority to pr ovide ad hoc, on demand charter operations

between points outside the United States and points in the United St ates. These services will be

operated with business size aircraft.

15. Bertelsmann meets the Department’s re quirements for insuranc e. Attached as

Exhibit 2 is OST Form 6411.

18. Bertelsmann is applying to the Department for authority to operate aircraft designed

to have a maximum passenger capacity of not more than 60 seats or a maximum payload capacity of

not more than 18,000 pounds. Pu rsuant to Order 98-1-31 issued February 3, 1998, Bertelsmann is4 exempt from the provisions of 49 U.S.C. § 41313, which requires submission of an Aviation Disaster

Family Assistance Plan. Furthe r, pursuant to Part 243.3 of the Department’s regulations,

Bertelsmann is not required to collect passenger manifest information.

19. A partial waiver of the liability lim itations of the Warsaw Convention (OST Form

4523) is attached as Exhibit 3.

20. Bertelsmann anticipates that grant of the requested authority will not result in

aircraft fuel consumption exceeding 10 million ga llons. Grant of the requested foreign air

carrier permit and exemption au thority would not constitute a major regulatory action under

the Energy and Conservation Act of 1975, as de fined in Section 313.4 of the Department’s

regulations.

21. The verification required by § 211.11 of the Department’s regulations is attached as

Exhibit 4.

WHEREFORE, Bertelsmann submits that grant of this application would be consistent with

the public interest, and requests that the Department issue a foreig n air carrier permit and exemption

authority to enable Bertelsmann to engage in:

i. foreign charter air transportation of pers ons and property from any point or points behind any Member State of the European Union via any point or points in any Member State and via intermediate points to any point or points in the United States and beyond;

ii. foreign charter air transportation of persons and property between any point or points in the United States and any point or point s in any member of the European Common Aviation Area;

iii. other charters pursuant to the prior approval requirements set forth in Part 212 of the Department’s Economic Regulations; and5 iv. transportation authorized by any additional route rights made available to European Community carriers in the future.

Respectfully submitted,

Gary B. Garofalo Erin M. Tallardy Jason E. Maddux G AROFALO G OERLICH H AINBACH PC

Counsel for Bertelsmann Aviation GmbH

July 29, 2011CERTIFICATE OF SERVICE

I certify on this 29 day of July, 2011 a copy of the fore going Application for a Foreign Air

Carrier Permit and Exemption Authority has been served by electronic mail on the parties named

below.

_________________ _________________ Vanessa Krasniewicz

Kris Urs U.S. Department of State urskr@state.gov John Allen Federal Aviation Administration john.allen@faa.govBERTELSMANN AVIATION GMBH

EXHIBIT 1

OPERATING LICENSE, AIR OPERATOR CERTIFICATE, AND OPERATIONS SPECIFICATIONSBERTELSMANN AVIATION GMBH

EXHIBIT 2

INSURANCE (OST FORM 6411)BERTELSMANN AVIATION GMBH

EXHIBIT 3

WARSAW CONVENTION (OST FORM 4523)BERTELSMANN AVIATION GMBH

EXHIBIT 4

VERIFICATION