 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on February 27, 2006

   NOTICE OF ACTION TAKEN -- DOCKET OST-2002-13756

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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 KALITTA AIR, L.L.C. (KALITTA) filed 7/11/05:

XX  Renewal of exemption for two years under 49 U.S.C. 40109 to provide
the following service:

Scheduled foreign air transportation of property and mail between points
in the United States, on the one hand, and the coterminal points Seoul,
Korea; Dubai, United Arab Emirates; and Kuala Lumpur, Malaysia, on the
other hand.  

Applicant rep:  Mark W. Atwood (202) 463-2513   DOT Analyst:  Thuy H.
Cooper (202) 366-5423

D I S P O S I T I O N

XX  Granted exemption (subject to conditions, see below)

XX  Granted sua sponte route integration authority (subject to
conditions, see below)

The above action was effective when taken:  February 27, 2006, through
February 27, 2008.

Action taken by:   Paul L. Gretch, Director	

		      Office of International Aviation	

XX  The authority granted is consistent with the aviation agreements
between the United States and Korea, the United States and the United
Arab Emirates, and the United States and Malaysia.

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)

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Conditions:  The route integration authority granted is subject to the
condition that any service provided under this exemption shall be
consistent with all applicable agreements between the United States and
the foreign countries involved.  Furthermore, (a) nothing in the award
of the route integration authority requested should be construed as
conferring upon Kalitta rights (including fifth-freedom intermediate
and/or beyond rights) to serve markets where U.S. carrier entry is
limited unless Kalitta 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 Kalitta’s authority by virtue of the route integration
exemption granted here, but that are not then being used by Kalitta, the
holding of such authority by route integration will not be considered as
providing any preference for Kalitta in a competitive carrier selection
proceeding to determine which carrier(s) should be entitled to use the
authority at issue.

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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
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, 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 document is available on the World Wide
Web at:

http://dms.dot.gov//reports/reports_aviation.asp

				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, 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

 The carrier in its current renewal application did not specifically
request renewal of its route integration authority (see Notice of Action
Taken, September 12, 2003, in this docket).  We will sua sponte renew
the authority.

