	

                    UNITED STATES OF AMERICA

            DEPARTMENT OF TRANSPORTATION

                    OFFICE OF THE SECRETARY

                             WASHINGTON, DC

Issued by the Department of Transportation on April 21, 2006

NOTICE OF ACTION TAKEN -- DOCKET OST-2002-12262

________________________________________________________________________
_____________

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   Southern Air, Inc.   filed  3/11/2004  to:	

XX  Renew for two years exemption pursuant to 49 U.S.C. §40109 to
provide the following service:

Scheduled foreign air transportation of property and mail between any
point(s) in the United States, directly or via any intermediate
point(s), and any point(s) in Korea or Taiwan, and between any point(s)
in Korea or Taiwan and any third-country point(s).  Southern Air also
requests the authority to integrate this authority with its existing
exemption and certificate authority.

Applicant rep:  R. Bruce Keiner, Jr.    (202) 624-2500    DOT Analyst: 
Gerald Caolo   (202) 366-2406

D I S P O S I T I O N

XX  Granted, subject to conditions (see below).

The above action was effective when taken: April 21, 2006, through 
April 21, 2008.

Action taken by:   Paul L. Gretch, Director	

		    Office of International Aviation	

XX   The authority granted is consistent with the agreements governing
air services between the United States and South Korea and the United
States and Taiwan.          

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)

_____________________________________

Remarks:  The authority for which Southern requested renewal expired May
28, 2004, but was kept in force pursuant to the provisions of the
Administrative Procedure Act, 5 U.S.C. 558(c), as implemented by 14 CFR
Part 377, pending action on its timely-filed renewal application.  

Conditions:  The exemption authority granted to serve intermediate and
beyond points is limited to countries with which the United States has
signed open-skies agreements and/or countries for which the carrier
holds authority to serve under certificates or exemptions issued by the
Department, and for which it holds route integration authority, by
virtue of either the present action or other action of the Department,
and is subject to all conditions attached to that authority. 

The route integration authority granted is subject to the condition that
any service provided under this authority shall be consistent with the
applicable bilateral aviation agreements between the United States and
the foreign countries involved.  Furthermore, (a) nothing in the award
of this authority requested should be construed as conferring upon
Southern Air additional rights (including code-share, fifth-freedom
intermediate and/or beyond rights) to serve markets where U.S. carrier
entry is limited unless Southern Air first notifies the Department of
its intent to serve such a market and unless and until the Department
has completed any necessary carrier selection procedures to determine
which carrier(s) should be authorized to exercise such rights; and (b)
should there be a request by any carrier to use the limited-entry route
rights that are included in Southern Air’s authority by virtue of the
route integration authority granted here, but that are not then being
used by Southern Air, the holding of such authority by route integration
will not be considered as providing any preference for Southern Air in a
competitive carrier selection proceeding to determine which carrier(s)
should be entitled to use the authority at issue. 

___________________________________

On the basis of data officially noticeable under Rule 24(g) of the
Department’s regulations, we found the applicant qualified to provide
the 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 or dismissed, we denied all requests in the
referenced 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 under 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 order is available on the World Wide Web
at 

  HYPERLINK "http://dms.dot.gov//reports/reports_ aviation.asp" 
http://dms.dot.gov//reports/reports_ aviation.asp 



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, 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, concerning
waiver of Warsaw Convention liability limits and defenses;

(6)  Comply with all applicable requirements of the Federal Aviation
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
International Principal Security Inspector (IPSI) to advise the IPSI 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; and

(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.

05/2004

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