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JGR/DOT (Department of Transportation) International Aviation Decisions (10 of 10)
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Ronald Reagan Presidential Library
Digital Library Collections
This is a PDF of a folder from our textual collections.
Collection: Roberts, John G.: Files
Folder Title: JGR/DOT (Department of Transportation)
International Aviation Decisions (10 of 10)
Box: 17
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THE WHITE HOUSE
WASHINGTON
March 17, 1986
MEMORANDUM FOR DAVID L. CHEW
STAFF SECRETARY
FROM:
JOHN G. ROBERTS
ASSOCIATE COUNSEL TO THE PRESIDENT
SUBJECT:
DOT International Aviation Decisions:
Societe Anonyme Belge d'Exploitation
de la Navigation Aerienne (Sabena) and
El Al Israel Airlines Limited
Our office has reviewed the above-referenced Department of
Transportation International Aviation decisions, and has no
legal objection to the procedure that was followed with respect
to Presidential review of such decisions under 49 U.S.C.
§ 1461 (a).
We also have no legal objection to OMB's recommendation that the
President not disapprove these orders or to the substance of the
letter from the President to the Secretary of Transportation.
ID #
CU
WHITE HOUSE
CORRESPONDENCE TRACKING WORKSHEET
o . OUTGOING
H INTERNAL
I * INCOMING
Date Correspondence
Received (YY/MM/DD)
/
/
Name of Correspondent:
David Chew
MI Mail Report
User Codes: (A)
(B)
(C)
Subject:
DOT International Aviation Decisions re:
Societe Anonyma Belse d' Exploitation de (a
Navigation Aerienne (Sabena) and El Al Israel
Airlines Limited.
ROUTE TO:
ACTION
DISPOSITION
Tracking
Type
Completion
Action
Date
of
Date
Office/Agency
(Staff Name)
Code
YY/MM/DD
Response
Code
YY/MM/DD
CUHOLL
ORIGINATOR 86/03/13
/
/
I
Referral Note:
CUAT18
R
86,03,1 13
S 86,03,19
Referral Note:
/ /
/ /
-
Referral Note:
/ /
/
/
-
Referral Note:
/ /
/
/
-
Referral Note:
ACTION CODES:
DISPOSITION CODES:
A Appropriate Action
I Info Copy Only/No Action Necessary
A. Answered
C Completed
C Comment/Recommendation
R. Direct Reply w/Copy
B - . Non-Special Referral
S Suspended
D - Draft Response
S - For Signature
F Furnish Fact Sheet
X Interim Reply
to be used as Enclosure
FOR OUTGOING CORRESPONDENCE:
Type of Response = Initials of Signer
Code = "A"
Completion Date = Date of Outgoing
Comments:
Keep this worksheet attached to the original incoming letter.
Send all routing updates to Central Reference (Room 75, OEOB).
Always return completed correspondence record to Central Files.
Refer questions about the correspondence tracking system to Central Reference, ext. 2590.
5/81
Document No.
WHITE HOUSE STAFFING MEMORANDUM
DATE: 3/12/86
ACTION/CONCURRENCE/COMMENT DUE BY: Wed., 3/19/86
SUBJECT: DOT INTERNATIONAL AVIATION DECISIONS RE: Societe Anonyme Belge
d'Exploitation de la Navigation Aerienne (Sabena) AND
El Al Israel Airlines Limited
ACTION FYI
ACTION FYI
VICE PRESIDENT
LACY
REGAN
POINDEXTER
MILLER
RYAN
BALL
SPEAKES
BUCHANAN
SPRINKEL
CHAVEZ
SVAHN
CHEW
P
SS THOMAS
DANIELS
TUTTLE
FIELDING
HENKEL
HICKS
KINGON
REMARKS:
Please provide any comments/recommendations by Wednesday, March 19. Thank
you.
RESPONSE:
David L. Chew
Staff Secretary
Ext
2702
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
MAR 12 1986
ACTION
MEMORANDUM FOR THE PRESIDENT
SUBJECT:
Department of Transportation International
Aviation Decisions:
Societe Anonyme Belge
El A1 Israel Airlines
!'Exploitation de la
Limited
Navigation Aerienne (Sabena)
Docket 42457
Docket 42686
Date due: May 4, 1986
Date due: April 22, 1986
The Department of Transportation (DOT) proposes to take the
following action with regard to the above international aviation
cases:
-- Authorize Societe Anonyme Belge d'Exploitation de la
Navigation Aerienne (Sabena) to add Boston, Massachusetts
as a United States coterminal point to its current
authorized service.
-- Authorize 21 A1 Israel Airlines Limited to add Portugal,
Romania, and Spain as intermediate points, and South
America and Asia as beyond points to its current
authorized service.
The National Security Council and the Departments of State,
Defense, and Justice have not identified any foreign policy or
national defense reasons for disapproving the orders in whole or
in part,
The Office of Management and Budget recommends that you approve
COT'S decisions by signing the attached letter to the Secretary
which indicates that you do not intend to cisapprove DOT'S orders
rithin the 60 days allowed by statute for your review.
Original signed by
Carol T Crawford
Carol 7. Crawford
Associate Director for
Economics and Government
ttachments:
TYP letters of transmittal
3P orders
atter to the Secretary
FOR OFFICIAL USE ONLY
U.S. Department of
Office of Assistant Secretary
400 Seventh St., S.W.
Transportation
Washington, D.C. 20590
Office of the Secretary
of Transportation
MAR 5 1986
The President
The White House
Washington, D.C. 20500
Dear Mr. President:
I transmit the Department's proposed order on the application of E1 A1
Israel Airlines Limited in Docket 42457, for your consideration under
section 801(a) of the Federal Aviation Act of 1958, as amended. The order
will, unless you disapprove it within 60 days of this transmittal, issue
the applicant an amended foreign air carrier permit under simplified
procedures.
If you should decide earlier that you will not disapprove, please advise me
to that effect; this will allow us to issue the order earlier.
We are submitting the proposed decision to you before publication under the
provisions of section 801(a) of the Federal Aviation Act of 1958, as
amended. In accordance with Executive Order 11920, however, we plan to
release all unclassified portions of the decision on or after the sixth day
following this transmittal unless notified by your Assistant for National
Security Affairs.
Respectfully yours,
Matthew V. Scocozza
Assistant Secretary for Policy
and International Affairs
Enclosures
FOR OFFICIAL USE ONLY
FOR OFFICIAL USE ONLY
UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY
WASHINGTON, D.C.
Issued by the Department of Transportation
on the 21st day of February, 1986
Application of
:
:
SOCIETE ANONYME BELGE D'EXPLOITATION
:
DE LA NAVIGATION AERIENNE (SABENA),
:
Docket 42686
:
for an amended Foreign Air Carrier Permit
:
pursuant to Section 402 (f) of the Federal
:
Aviation Act of 1958, as amended.
:
ORDER ISSUING FOREIGN AIR CARRIER PERMIT
Societe Anonyme Belge d'Exploitation de la Navigation Aerienne
(Sabena) has applied for amendment of its foreign air carrier
permit1 to add Boston, Massachusetts, among the U.S. coterminal
points authorized for service.2 Authorization for service to a
1
Sabena was last reissued an amended foreign air carrier permit
by C.A.B. Order 80-5-94. Sabena's application was filed with the
Civil Aeronautics Board prior to that agency's "sunset" on
December 31, 1984. Responsibility for processing foreign permit
applications transferred to the Department of Transportation on
January 1, 1985, pursuant to Pub. L. 98-443, October 4, 1984.
2
Currently Sabena's permit authorizes, inter alia, the carrier
to engage in foreign air transportation of persons, property and
mail between a point or points in Belgium; via intermediate
points; and
(i) the coterminal points Atlanta, Georgia; Chicago,
Illinois; Detroit, Michigan; and New York, New York; and
(ii) beyond one United States coterminal point to be selected
by Belgium from among Atlanta, Georgia; Chicago,
Illinois; Detroit, Michigan; and New York, New York, to
Mexico City; and
(iii) beyond the United States coterminal points to points in
Canada.
point in the U.S., to be selected by Belgium, in addition to the
points already served, is contained in the revised Air Transport
Agreement between Belgium and the United States, effectuated by an
Exchange of Notes dated October 23, 1980. 3 By Note Verbale, dated
October 31, 1984, the Belgian Government designated Boston,
Massachusetts, as the additional U.S. point to be served. In
addition, Sabena requests that the conditions of the permit
reflect the routing flexibility, and unlimited change of gauge
rights granted in Annex I of the bilateral.
Sabena has submitted evidence for processing its application,
filed December 12, 1984, in accordance with section 211.21 of
DOT's regulations. A notice of the application was published in
the Federal Register on December 24, 1984 (49 Fed. Reg. 49877).
No answers to the application have been filed. Since the
application is unopposed, and the authority sought is covered by
the United States-Belgium Air Transport Services Agreement, we
find that further proceedings on the application are not
required. 4 We shall, therefore, dispense with a tentative
decision and proceed directly to a final decision using simplified
Subpart Q procedures. 5
We will grant the requested permit amendment. The authority
requested is provided for in the 1980 Air Transport Services
Agreement between the United States and Belgium, and the
Government of Belgium has selected Boston for service under the
agreement and designated Sabena to provide that service. Sabena
continues to be owned and effectively controlled by the Government
and nationals of Belgium, and there is no question as to the
continued fitness of Sabena to provide the service. (See
Attachment A.)
3
Annex I, Section 1, par. B., (a) grants a route:
- (a) From Belgium via intermediate points to Atlanta, New York
City, and three additional points in the United States and beyond
to any point or points in Canada and/or Mexico. 1"
The footnote restricts beyond traffic rights to: (a) between one
point in the United States and one point in Canada; and (b)
between one point in the United States and Mexico City. The
three discretionary points are to be designated by the Government
of Belgium, with the right to change such points on 60 days'
notice.
4
By Order 85-2-50 we granted Sabena exemption authority to
conduct its proposed Boston service commencing on or about
March 24, 1985. The carrier filed a renewal application for the
authority and relies on the automatic-extensions of Federal law,
5 USC section 558 (c), as implemented by 14 CFR Part 377, to keep
the exemption in effect, pending final disposition of the renewal
request.
5
14 C.F.R. Section 302.1701 et seq. Under Rule 29(b), we may,
in our discretion, omit a tentative decision in proceedings under
Subpart Q and proceed directly to a final decision.
- 3 -
In view of the foregoing and all the facts of record, we find and
conclude that:
1. It is in the public interest to issue an amended foreign air
carrier permit to Societe Anonyme Belge d'Exploitation de la
Navigation Aerienne (Sabena) in the form attached, authorizing the
carrier to serve Boston, Massachusetts, as an additional U.S.
coterminal point;
2. Sabena is qualified and designated by its government to
provide the additional service under the terms of the 1980 Air
Transport Services Agreement between the United States and
Belgium;
3. Sabena is fit, willing and able properly to perform the
foreign air transportation described in the attached permit and to
conform to the provisions of the Act, and to our rules,
regulations and requirements;
4. Sabena is substantially owned and effectively controlled by
the Government and nationals of Belgium;
5. The public interest requires that the exercise of the
privileges granted by the permit should be subject to the terms,
conditions, and limitations contained in and attached to the
permit, and to such other reasonable terms, conditions, and
limitations required by the public interest as we may prescribe;
6. Issuance of this amended foreign air carrier permit will not
constitute a "major regulatory action" under the Energy Policy and
Conservation Act of 1975, as defined in subsection 313.4 (a) (1) of
our Regulations; 6 and
7. The public interest does not require an oral evidentiary
hearing on the application.
ACCORDINGLY,
1. We amend and reissue, in the form attached, the foreign air
carrier permit issued to the applicant by Order 80-5-94, to
authorize service to Boston, Massachusetts, as an additional
coterminal point;
6
Our finding is based on the fact that the the new service under
the amendment of applicant's permit will not result in a near-term
annual increase in fuel consumption in excess of ten million
gallons.
- 4 -
2. The exercise of the privileges granted by the amended permit
shall be subject to the terms, conditions and limitations
contained in and attached to the permit, and to such other
reasonable terms, conditions and limitations as may be prescribed
by the Department;
3. Unless disapproved by the President of the United States under
section 801 (a) of the Act, this order and the attached permit
shall become effective on the 61st day after its submission to the
President, 7 or upon the date of receipt of advice from the
President that he does not intend to disapprove this order under
that section, whichever is earlier;
4. We shall serve this order upon Societe Anonyme Belge
d'Exploitation de la Navigation Aerienne (Sabena), the Ambassador
of the Kingdom of Belgium in Washington, D.C., the Federal
Aviation Administration (AFS-220), and the United States
Department of State; and
5. Except to the extent granted, the application of Sabena in
Docket 42686 is denied.
By:
MATTHEW V. SCOCOZZA
Assistant Secretary
for Policy and International Aftairs
(SEAL)
7
This order was submitted to the President on February 21, 1986.
Attachment A
SUMMARY OF APPLICATION
Homeland Country: Belgium
Current Permit Issued By: Order 80-5-94, effective May 14, 1980
Agreement Basis For Authority Sought: Air Transport Services
Agreement, effective October 23, 1980
Holds Government License For Authority Sought: Yes
Aircraft Maintenance Performed By: Sabena; Continues to comply
with the provisions of ICAO Pilots and Airmen Annexes 1, 6 (Part 1)
and 7.
Financial Indicators (As Of) :
Dec. 31, 1983
Dec. 31, 1982
(Millions)
(Millions)
Total Assets
$ 441.0
$ 434.3
Total Liabilities
399.5
510.6
Owners' Equity
41.5
(76.3)
Operating Profit--12 mos. ended
24.2
(16.0)
Majority Ownership By Nationals Of: Substantial majority
ownership by the Government of Belgium.
Effective Control By Nationals Of: Government of Belgium.
Safety Or Tariff Violations During Last 5 Years: No
Near-term Annual Fuel Consumption Exceeds 10 Million Gallons: No
UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY
WASHINGTON, D. C.
PERMIT TO FOREIGN AIR CARRIER
(as amended and reissued)
SOCIETE ANONYME BELGE D'EXPLOITATION
DE LA NAVIGATION AERIENNE (SABENA)
is authorized, subject to the provisions of the Federal Aviation Act of 1958,
as amended, and the orders, rules, and regulations of the Department of
Transportation, to engage in foreign air transportation:
A. Of persons, property and mail between a point or points in Belgium;
via intermediate points; and
(i) the coterminal points Atlanta, Georgia; Boston, Massachusetts;
Chicago, Illinois; Detroit, Michigan; and New York, New York;
and
(ii) beyond one United States coterminal point to be selected by
Belgium from among Atlanta, Georgia; Boston, Massachusetts;
Chicago, Illinois; Detroit, Michigan; and New York, New York,
to Mexico City, Mexico; and
(iii) beyond one United States coterminal point to be selected by
Belgium from among Atlanta, Georgia; Boston, Massachusetts;
Chicago, Illinois; Detroit, Michigan; and New York, New York,
to one point in Canada to be selected by Belgium.
B. Of property only between a point or points in Belgium; via
intermediate points; and
(i) any point or points in the United States; and
(ii) beyond the point in the United States selected by Belgium under
A (ii) above to Mexico City; and
(iii) beyond United States coterminal points to points in Canada.
Sabena may engage in charter foreign air transportation:
C. Of persons and/or property, separately or in combination,
(i) between any point or points in Belgium and any point or points in
the United States, including intermediate and beyond points; and
(ii) between a point or points in the United States and a point or
points in neither Belgium nor the United States, provided such
charters stop over in Belgium for at least two consecutive
nights.
- 2 -
D. Of persons and/or property, separately or in combination, between
any point or points in the United States and any point or points in
neither Belgium nor the United States which do not stop over in
Belgium for at least two consecutive nights.
This permit and the exercise of the privileges granted in it shall be subject
to the terms, conditions, and limitations attached, and to the following:
1. The holder's beyond-United States traffic rights to Mexico City, and
beyond-United States combination service traffic rights to Canada, shall
not become effective until the Government of Belgium designates through
diplomatic channels, respectively, (a) the authorized coterminal point in
the United States from which service to Mexico City will be provided, and
(b) the authorized coterminal point in the United States and the point in
Canada from or to which such combination service will be provided. The
Government of Belgium shall provide notice of its selection at least 60
days prior to Sabena's commencing such service. Changes in the selected
points can be made without limitation, subject only to 60-days' notice of
intent to change the points authorized.
2. Beyond points in Mexico and Canada on route A, and in Mexico on route
B, other than Mexico City and the Canadian point selected under condition
1, may be served by the holder without traffic rights from authorized
United States points.
3. The holder may, on any or all scheduled flights, at its option,
operate flights in either or both directions and without directional or
geographic limitation; serve points on the routes in any combination and
in any order; and omit stops at any point or points without loss of any
right to uplift or discharge traffic otherwise permissible under this
amended permit.
4. Points in Canada on route B, the selected Canadian point on its route
segment on route A, and Mexico City on its route segment on routes A and
B, may be served as either intermediate or beyond points, or both with a
single landing.
5. The holder may, at its option, operate on any segment or segments of
the authorized routes without any limitation as to change in type or
number of aircraft operated.
6. The authority of the holder to perform charters under paragraph C
shall be subject to the charterworthiness rules of the Governments of
either Belgium or the United States. Except as otherwise authorized by
this permit, the holder shall operate U.S.-originating charters in
conformance with the Department's regulations governing charters.
7. Flights authorized by paragraph D shall comply with the Department's
regulations governing charters, and must be individually approved by the
Department unless this requirement is waived by Department order.
- 3 -
8. This permit shall be subject to all applicable provisions of any
treaty, convention, or agreement affecting international air transportation
now in effect, or that may become effective, to which the United States and
Belgium are or shall become parties.
This permit shall be effective on
Unless otherwise terminated at an earlier date pursuant to the terms of any
applicable treaty, convention, or agreement, this permit shall terminate
(1) upon the dissolution or liquidation of the holder to which it was issued;
(2) upon the effective date of any treaty, convention, agreement or amendment,
which shall have the effect of eliminating the bilaterally authorized service
authorized by this permit from the service which may be operated by airlines
designated by the Government of Belgium (or in the event of the elimination of
any part of the authorized service, the authority granted shall terminate to
the extent of such elimination); or (3) upon the effective date of any permit
granted by the Department to any other carrier designated by the Government of
Belgium in lieu of the holder; or (4) upon the termination or expiration of the
Air Transport Services Agreement between the Government of the United States of
America and the Government of Belgium, as amended (or in the event of the
termination or expiration of any part of the Air Services Agreement the
authority granted by this permit shall cease to the extent of such termination
or expiration). However, clause (4) of this paragraph shall not apply if,
prior to the occurence of the event specified in clause (4), the operation of
the authorized foreign air transportation becomes the subject of any treaty,
convention, or agreement to which the United States of America and Belgium are
or shall become parties.
The Department of Transportation has executed this permit and affixed its seal
on February 21, 1986.
By:
MATTHEW V. SCOCOZZA
Assistant Secretary for Policy
and International Affairs
(SEAL)
ATTACHMENT
PERMIT TO FOREIGN AIR CARRIER
Docket 42686
The holder's authority to conduct operations under the permit to which this
is attached shall also be subject to the following terms, conditions, and
limitations:
(1) The privileges granted by this permit are subject to the condition
that the foreign air carrier complies with the requirements of 14 CFR 203,
concerning waiver of Warsaw Convention liability limits and defenses;
(2) The privileges granted by this permit are subject to the condition
that the foreign air carrier complies with the requirements for minimum
insurance coverage contained in 14 CFR 205;
(3) By accepting this permit, the holder waives any right it may possess
to assert any defense of sovereign immunity from suit in any action or
proceeding instituted against the holder in any court or other tribunal in
the United States (or its territories or possessions) based upon any claim
arising out of operations by the holder under this permit;
(4) The holder shall not operate any aircraft under the authority granted
by this permit, unless the holder complies with operational safety
requirements at least equivalent to Annex 6 of the Chicago Convention;
(5) The holder shall conform to the airworthiness and airman competency
requirements prescribed by its home Government for international air
service;
(6) Except as specifically authorized by the Department of Transportation,
all flights to/from the United States must originate or terminate in the
holder's homeland;
(7) The holder shall not provide the foreign air transportation authorized
by this permit unless it holds a currently effective authorization from its
Government for such operations and such document is on file with the
Department of Transportation;
(8) The exercise of the privileges granted by this permit shall be subject
to such other reasonable terms, conditions, and limitations required by the
public interest as may be prescribed by the Department of Transportation;
and shall be subject to compliance with all applicable orders and
regulations of other U.S. agencies and courts, and with all applicable laws
of the United States; and
(9) This permit cannot be sold or otherwise transferred without explicit
Department approval under section 402(g) of the Federal Aviation Act of
1958, as amended.
UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY
WASHINGTON, D. C.
Issued by the Department of Transportation
on the 5th day of March , 1986
Application of
:
EL AL ISRAEL AIRLINES LIMITED
:
Docket 42457
:
for amendment of its foreign air carrier :
permit under section 402 of the Federal
:
Aviation Act of 1958, as amended
:
ORDER ISSUING FOREIGN AIR CARRIER PERMIT
Background
E1 A1 Israel Airlines Limited has held a foreign air carrier permit since
1950. Its most recent foreign air carrier permit was issued by the Civil
Aeronautics Board in 1984 (see CAB Order 84-6-44). Under that permit,
E1 A1 holds authority to conduct charter flights to and from the United
States and to engage in scheduled foreign air transportation as follows:
Between a terminal point or points in Israel; inter-
mediate points in Cyprus, Turkey, Greece, Italy,
Switzerland, Austria, Federal Republic of Germany,
France, Luxembourg, Belgium, The Netherlands, United
Kingdom of Great Britain and Northern Ireland, Ireland,
and Montreal, Canada (without traffic rights between
Montreal and points in the United States); and the
coterminal points New York, New York; Chicago, Illinois;
Boston, Massachusetts; Miami, Florida; and Los Angeles,
California; and beyond one U.S. point selected by
Israel to Mexico City, Mexico (without traffic rights
between the selected U.S. point and Mexico City).
Application
By application filed August 30, 1984, as supplemented September 19,
September 27, and November 12, 1985, E1 A1 requests that we amend its
foreign air carrier permit under section 402 of the Federal Aviation Act,
to authorize it to serve intermediate points in Portugal, Romania, and
Spain, and to provide beyond service to South America and Asia, but without
traffic rights between U.S. points and the beyond points. 1/ In support of
1/ A summary of the application was published in the Federal Register,
49 FR 35969, September 13, 1984.
- 2 -
its application, which is summarized in Attachment A, E1 A1 asserts that it
is: (1) owned and controlled by the Government and nationals of Israel; (2)
financially and operationally fit to conduct the proposed scheduled
operations; (3) licensed by its homeland to do so; and (4) designated by
its government to provide the services under the United States-Israel
Protocol, signed August 16, 1978 (1978 Protocol).
Answers
No answers to the application were filed.
Decision
We have thoroughly reviewed the record and have decided to grant the
application using the simplified Subpart Q procedures. 2/ The public was
informed of E1 Al's application by notices in the Federal Register and the
CAB's weekly list of applications filed, describing the authority sought
and giving interested persons an opportunity to submit evidence and
objections to the award of authority. These notices provided the required
notice and filing opportunities. Simplified procedures are appropriate in
this case because there are no material, determinative issues of fact
requiring other procedures.
We are granting E1 A1 the route authority it requests. The scheduled
authority we are adding to the carrier's permit is, as E1 A1 notes,
encompassed by the 1978 Protocol. Based on the record, we find that E1 A1
is substantially owned and effectively controlled by the Government and
nationals of Israel, and that it is fit, willing, and able to perform
properly the charter and scheduled foreign air transportation described in
the attached permit, and to conform to the provisions of the Act, and to
our rules, regulations, and requirements. In this case no party has
challenged El Al's ownership and control by homeland government and
nationals, the airline's financial and operational fitness, 3/ or the
adequacy of the carrier's compliance disposition. Moreover, in 1984 the
Civil Aeronautics Board found E1 A1 to be fit to conduct substantially
similar permit operations, and we have no information that would now
warrant a different finding. 4/
2/ 14 CFR § 302.1701 et seq. Under Rule 29(b) we may, in our discretion,
omit a tentative decision in proceedings under Subpart Q and proceed
directly to a final decision, after providing an opportunity for interested
parties to submit evidence and to object to grant of authority under
section 402 of the Act.
3/ By memorandum dated March 15, 1985, and informally updated on
February 3, 1986, the Acting Manager, Air Transportation Division, Federal
Aviation Administration, stated that E1 A1 conducts its operations within
the United States in accordance with Part 129 of the FAA's Federal Aviation
Regulations, and that he knows of no reason why the Department should act
unfavorably on this application.
4/ While E1 A1 has lost money in past operations, it indicates that its
government is a source of additional funds.
- 3 -
In view of the foregoing and all facts of record, we find and conclude
that:
1. It is in the public interest to issue an amended foreign air carrier
permit to E1 A1 Israel Airlines Limited, in the form attached, authorizing
the carrier, in addition to the authority held under the permit issued by
the Civil Aeronautics Board by Order 84-6-44, to serve, in its scheduled
U.S. operations, intermediate points in Portugal, Romania, and Spain, and
beyond the United States to South America and Asia, but without traffic
rights between the authorized U.S. points and the beyond points;
2. E1 A1 Israel Airlines is qualified and designated by its government to
provide the proposed additional scheduled services under the terms of the
United States-Israel Protocol, signed August 16, 1978;
3. E1 A1 Israel Airlines is fit, willing, and able to perform properly the
foreign air transportation described in the attached permit and to conform
to the provisions of the Federal Aviation Act of 1958, as amended, and to
our rules, regulations, and requirements;
4. E1 A1 Israel Airlines is substantially owned and effectively controlled
by the Government and nationals of Israel;
5. The public interest requires that the exercise of the privileges
granted by the permit should be subject to the terms, conditions, and
limitations contained in and attached to the permit, and to such other
reasonable terms, conditions, and limitations required by the public
interest as we may prescribe;
6. Issuance of this amended foreign air carrier permit will not constitute
a "major regulatory action" under the Energy Policy and Conservation Act of
1975, as defined in subsection 313.4(a)(1) of our Regulations; 5/ and
7. The public interest does not require an oral evidentiary hearing on the
application.
5/ Our finding is based on the fact that the new scheduled operations
under the amendment of the applicant's permit will not result in a
near-term annual increase in fuel consumption in excess of ten million
gallons.
- 4 -
ACCORDINGLY,
1. We amend and reissue, in the form attached, the foreign air carrier
permit issued to the applicant by Order 84-6-44, to authorize the carrier,
in addition to the authority held under Order 84-6-44, to serve, in its
scheduled U.S. operations, intermediate points in Portugal, Romania, and
Spain, and beyond authorized U.S. points to South America and Asia (but
without traffic rights between the U.S. points and the beyond points);
2. The exercise of the privileges granted by the amended permit shall be
subject to the terms, conditions, and limitations contained in and attached
to the permit, and to such other reasonable terms, conditions, and
limitations as may be prescribed by the Department;
3. Unless disapproved by the President of the United States under section
801 (a) of the Act, this order and the attached permit shall become
effective on the 61st day after its submission to the President, 6/ or upon
the date of receipt of advice from the President that he does not intend to
disapprove this order under that section, whichever is earlier;
4. We shall serve this order upon E1 A1 Israel Airlines Limited; the
Ambassador of Israel in Washington, D.C., the Federal Aviation
Administration (AFS-220), and the United States Department of State; and
5. Except to the extent granted, the application of E1 A1 Israel Airlines
Limited in Docket 42457 is denied.
By:
MATTHEW V. SCOCOZZA
Assistant Secretary for Policy
and International Affairs
(SEAL)
6/ This order was submitted to the President on March 5, 1986.
The 61st day is May 5, 1986.
Attachment A
SUMMARY OF APPLICATION
E1 A1 Israel Airlines Limited
Docket 42457
Homeland Country: Israel
Current Permit Issued By: CAB Order 84-6-44, effective June 14, 1984
Evidence Incorporated By Reference From: Docket 41676
Authority Covered By Bilateral Agreement: Yes
Designated By Its Government: Yes
Holds Government License For Authority Sought: Yes, see supplement filed
November 12, 1985, in this docket.
Operating History: E1 A1 commenced airline operations in 1949. The CAB
issued the carrier its initial foreign air carrier permit by
Order E-4341, effective June 22, 1950. E1 A1 has been conducting
operations to the United States for more than 30 years.
Aircraft Maintenance Program Complies With The Provisions of ICAO Pilots
and Airmen Annexes 1, 6 (Part 1) and 7: Yes
Financial Indicators (Last 2 years):
March 31, 1983
March 31, 1982
(000)
(000)
Total Assets
$ 265,111
$ 343,939
Total Liabilities
548,478
503,978
Deficiency in Capital
(283,367)
(160,039)
Operating (Loss) for the year
(123,328)
(32,640)
Majority Ownership And Effective Control By: the Government and nationals
of Israel
Insurance Coverage: Yes, meets the requirements of 14 CFR Part 205.
Safety Violations During Last 5 Years: No
Tariff Violations During Last 5 Years: No
Near-term Annual Fuel Consumption Exceeds 10 Million Gallons: No
Other: E1 A1 suspended operations in September 1982 during a labor
dispute, and resumed them four months later.
UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY
WASHINGTON, D. C.
PERMIT TO FOREIGN AIR CARRIER
(as amended and reissued)
EL AL ISRAEL AIRLINES LIMITED
is authorized, subject to the provisions of the Federal Aviation Act of
1958, as amended, and the orders, rules, and regulations of the Department
of Transportation, to engage in foreign air transportation:
A. Between a terminal point or points in Israel; intermediate
points in Cyprus, Turkey, Greece, Romania, Italy, Spain,
Portugal, Switzerland, Austria, Federal Republic of Germany,
France, Luxembourg, Belgium, The Netherlands, United Kingdom of
Great Britain and Northern Ireland, Ireland, and Montreal,
Canada (without traffic rights between Montreal and points in the
United States); and the coterminal points New York, New York;
Chicago, Illinois; Boston, Massachusetts; Miami, Florida; and Los
Angeles, California; beyond one U.S. point selected by Israel to
Mexico City, Mexico (without traffic rights between the selected
U.S. point and Mexico City); and beyond any specified U.S. points
to South America and Asia (without traffic rights between the
specified U.S. points and points in South America and Asia).
B. Between a point or points in Israel and any point or points
in the United States, either directly or via intermediate or
beyond points in other countries, with or without stopovers.
C. Between a point or points in the United States and any point
or points not in Israel or the United States.
This permit and the exercise of the privileges granted in it shall be
subject to the terms, conditions, and limitations attached, and to the
following:
1. The exercise of the authority granted by paragraph A shall be
limited to scheduled foreign air transportation of persons,
property and mail.
2. The exercise of authority granted by paragraphs B and C shall
limited to charter transportation of persons and their
accompanying baggage, and property.
- 2 -
3. The holder may serve Mexico City from any point specified in
paragraph A, but such service shall be conducted from only
one U.S. point at any given time. The holder shall provide
the Department with 30 days' notice of the U.S. point from
which it will be conducting such service.
4. The authority of the holder pursuant to paragraph B to perform
charters which originate in Israel is subject to the rules,
regulations and licenses issued by the government and
aeronautical authorities of Israel.
5. The authority of the holder pursuant to paragraph B to perform
charters which originate in the United States is subject to
applicable Department regulations, except where waivers of
these regulations have been explicitly granted by the
Department.
6. The authority of the holder pursuant to paragraph B to perform
charters which originate in the United States and terminate at
points beyond Israel is limited to charters which stop over in
Israel for at least two consecutive nights. All traffic
originating in the United States and stopping over in Israel
for less than two consecutive nights shall be carried pursuant
to paragraph C of this permit.
7. Charter air transportation authorized by paragraph C is
subject to the Department's regulations governing such
charters.
8. This permit shall be subject to all applicable provisions of
any treaty, convention, or agreement affecting international
air transportation now in effect, or that may become effective
to which the United States and Israel are or shall become
parties.
This permit shall be effective on
.
Unless otherwise
terminated at an earlier date under the terms of any applicable treaty,
convention, or agreement, this permit shall terminate (1) upon the
dissolution or liquidation of the holder to which it was issued; (2) upon
the effective date of any treaty, convention, or agreement, or amendment,
which shall have the effect of eliminating the route or routes authorized
by this permit from the routes which may be operated by airlines designated
by the Government of Israel (or in the event of the elimination of any part
of the authorized route, the authority granted shall terminate to the
extent of such elimination); or (3) upon the effective date of any permit
granted by the Department to any other carrier designated by the Government
of Israel in lieu of the holder; or (4) upon the termination or expiration
of the Air Transport Agreement between the Government of the United States
of America and the Government of Israel dated June 15, 1950, as amended
(or in the event of the termination or expiration of any part of the Air.
Transport Agreement, the authority granted by this permit shall cease to
- 3 -
the extent of such termination or expiration). However, clause (4) of this
paragraph shall not apply if, prior to the occurrence of the event
specified in clause (4), the operation of the foreign air transportation
authorized becomes subject to any treaty, convention, or agreement to which
the United States and Israel are or shall become parties.
The Department of Transportation has executed this permit and affixed its
seal on March 5, 1986.
MATTHEW V. SCOCOZZA
Assistant Secretary for Policy
and International Affairs
(SEAL)
PERMIT TO FOREIGN AIR CARRIER
Docket 42457
The holder's authority to conduct operations under the permit to which this
is attached shall also be subject to the following terms, conditions, and
limitations:
(1) The privileges granted by this permit are subject to the condition
that the foreign air carrier complies with the requirements of 14 CFR 203,
concerning waiver of Warsaw Convention liability limits and defenses;
(2) The privileges granted by this permit are subject to the condition
that the foreign air carrier complies with the requirements for minimum
insurance coverage contained in 14 CFR 205;
(3) By accepting this permit, the holder waives any right it may possess
to assert any defense of sovereign immunity from suit in any action or
proceeding instituted against the holder in any court or other tribunal in
the United States (or its territories or possessions) based upon any claim
arising out of operations by the holder under this permit;
(4) The holder shall not operate any aircraft under the authority granted
by this permit, unless the holder complies with operational safety
requirements at least equivalent to Annex 6 of the Chicago Convention;
(5) The holder shall conform to the airworthiness and airman competency
requirements prescribed by its home Government for international air
service;
(6) Except as specifically authorized by the Department of Transportation,
all flights to/from the United States must originate or terminate in the
holder's homeland;
(7) The holder shall not provide the foreign air transportation authorized
by this permit unless it holds a currently effective authorization from its
Government for such operations and such document is on file with the
Department of Transportation;
(8) The exercise of the privileges granted by this permit shall be subject
to such other reasonable terms, conditions, and limitations required by the
public interest as may be prescribed by the Department of Transportation;
and shall be subject to compliance with all applicable orders and
regulations of other U.S. agencies and courts, and with all applicable laws
of the United States; and
(9) This permit cannot be sold or otherwise transferred without explicit
Department approval under section 402(g) of the Federal Aviation Act of
1958, as amended.
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