			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on November 29, 2004

NOTICE OF ACTION TAKEN -- DOCKET OST-2004-19503

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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).

Applicant:  Air Executive LU.at GmbH				Date Filed:  October 26, 2004

Relief requested:  Exemption from 49 U.S.C. § 41301 to engage in
charter foreign air transportation of persons, property and mail between
any point or points in Austria and any point or points in the United
States; and between any point or points in the United States and any
point or points in a third country or countries, provided that such
charter traffic is carried on a flight that serves Austria for purposes
of carrying traffic between the United States and Austria; and other
charters subject to Part 212 of the Department’s rules.  Air Executive
proposes to operate these services using corporate jet aircraft,
including a Bombardier Challenger 604.

If renewal, date and citation of last action:  New authority

Applicant representative:  Sheryl R. Israel (202) 663-8312

Responsive pleadings:  None filed

	DISPOSITION

Action:  Approved						Action date:  November 29, 2004

Effective dates of the exemption authority granted:  November 29,
2004-November 29, 2006

Basis for approval (bilateral agreement/reciprocity):  Air Transport
Services Agreement between the United States and Austria

Except to the extent exempted/waived, this authority is subject to the
terms, conditions, and limitations indicated:  X Standard exemption
conditions (attached)

Special conditions/Partial grant/Denial basis/Remarks:  Based on the
record in this case, we find that Air Executive is financially and
operationally qualified to perform the services authorized above. 
However, we are unable to find that Air Executive is substantially owned
and effectively controlled by Austrian nationals.  Specifically, the
applicant states that it is wholly owned and controlled by Mr. Benno
Fell, a citizen of Germany.  In addition, Air Executive states that all
of its key management personnel are also citizens of Germany.  In spite
of the fact that we are unable to find that Air Executive is
substantially owned and effectively controlled by homeland nationals, we
find it appropriate to waive our ownership and control requirements. 
The carrier is properly licensed and designated (Note # 4.10.8/4/04,
dated November 3, 2004) by the Government of Austria to perform the
proposed services, and there is no evidence on the record which would
suggest that the ownership of the carrier would be inimical to U.S.
aviation policy or interests.  By memorandum dated November 17, 2004,
the FAA advised us that it knows of no reason why we should act
unfavorably on Air Executive’s application.

In the conduct of the charter operations authorized, Air Executive shall
use only small aircraft (i.e., 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).

Action taken by:   Paul L. Gretch, Director	

		      Office of International Aviation	

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__________________________________________

Under authority assigned by the Department in its regulations, 14 CFR
Part 385, we found that (1) the applicant was qualified to perform the
proposed operations; (2) our action was consistent with 

-2-

Department policy; (3) grant of the authority was consistent with the
public interest; and (4) 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/deferred/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 document is available on the World Wide
Web at:

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

Attachment

In the conduct of the operations authorized, the foreign carrier
applicant(s) shall:

(1)  Not conduct any operations unless it holds a currently effective
authorization from its homeland for such operations, and it has filed a
copy of such authorization with the Department;

(2)  Comply with all applicable requirements of the Federal Aviation
Administration, including, but not limited to, 14 CFR Parts 129, 91, and
36, and with all applicable U.S. Government requirements concerning
security, including, but not limited to, 49 CFR Part 1546 or 1550, as
applicable.  To assure compliance with all applicable U.S. Government
requirements concerning security, the holder shall, before commencing
any new service (including charter flights) from a foreign airport that
would be the holder’s last point of departure for the United States,
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;

(3)  Comply with the requirements for minimum insurance coverage
contained in 14 CFR Part 205, and, prior to the commencement of any
operations under this authority, file evidence of such coverage, in the
form of a completed OST Form 6411, with the Federal Aviation
Administration’s Program Management Branch (AFS-260), Flight Standards
Service (any changes to, or termination of, insurance also shall be
filed with that office);

(4)  Not operate aircraft under this authority unless it complies with
operational safety requirements at least equivalent to Annex 6 of the
Chicago Convention;

(5)  Conform to the airworthiness and airman competency requirements of
its Government for international air services;

(6)  Except as specifically exempted or otherwise provided for in a
Department Order, comply with the requirements of 14 CFR Part 203,
concerning waiver of Warsaw Convention liability limits and defenses;

(7)  Agree that operations under this authority constitute a waiver of
sovereign immunity, for the purposes of 28 U.S.C. 1605(a), but only with
respect to those actions or proceedings instituted against it in any
court or other tribunal in the United States that are: (a)  based on its
operations in international air transportation that, according to the
contract of carriage, include a point in the United States as a point of
origin, point of destination, or agreed stopping place, or for which the
contract of carriage was purchased in the United States; or (b)  based
on a claim under any international agreement or treaty cognizable in any
court or other tribunal of the United States.  In this condition, the
term "international air transportation" means "international
transportation" as defined by the Warsaw Convention, except that all
States shall be considered to be High Contracting Parties for the
purpose of this definition;

(8)  Except as specifically authorized by the Department, originate or
terminate all flights to/from the United States in its homeland;

(9)  Comply with the requirements of 14 CFR Part 217, concerning the
reporting of scheduled, nonscheduled, and charter data;

(10) If charter operations are authorized, except as otherwise provided
in the applicable aviation agreement, comply with the Department's rules
governing charters (including 14 CFR Parts 212 and 380); and

(11) Comply with such other reasonable terms, conditions, and
limitations required by the public interest as may be prescribed by the
Department, with all applicable orders or regulations of other U.S.
agencies and courts, and with all applicable laws of the United States.

This authority shall not be effective during any period when the holder
is not in compliance with the conditions imposed above.  Moreover, this
authority cannot be sold or otherwise transferred without explicit
Department approval under Title 49 of the U.S. Code.

												05/2004

  Mr. Fell is also the President of Air Executive.

