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This is a PDF of a folder from our textual collections.
Collection: Roberts, John G.: Files
Folder Title: JGR/Civil Aviation Board Decisions
(9 of 16)
Box: 10
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WITHDRAWAL SHEET
Ronald Reagan Library
Collection Name
Withdrawer
RBW 8/30/2005
File Folder
JGR/CIVIL AVIATION BOARD DECISIONS (9 OF 16)
FOIA
F05-139/01
Box Number
COOK
16RW
DOC Doc Type
Document Description
No of Doc Date Restrictions
COPY Reagan Presidential Record
NO
Pages
1
SUMMARY SUMMARY OF APPLICATION FOR
1 8/1N/D983 B4
492
MINERVE (OPEN IN WHOLE)
2
SUMMARY SUMMARY OF APPLICATION FOR
2 11/8/1983
B4
493
TRANS-MEDITERRANEAN AIRWAYS
(OPEN IN WHOLE)
Freedom of Information Act - [5 U.S.C. 552(b)]
B-1 National security classified information [(b)(1) of the FOIA]
B-2 Release would disclose internal personnel rules and practices of an agency [(b)(2) of the FOIA]
B-3 Release would violate a Federal statute [(b)(3) of the FOIA]
B-4 Release would disclose trade secrets or confidential or financial information [(b)(4) of the FOIA]
B-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA]
B-7 Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA]
B-8 Release would disclose information concerning the regulation of financial institutions [(b)(8) of the FOIA]
B-9 Release would disclose geological or geophysical information concerning wells [(b)(9) of the FOIA]
E.O. 13233
C. Closed in accordance with restrictions contained in donor's deed of gift.
THE WHITE HOUSE
WASHINGTON
November 1, 1983
MEMORANDUM FOR FRED F. FIELDING
FROM:
JOHN G. ROBERTSQYR
SUBJECT:
Civil Aeronautics Board Decision in
Minerve, Compagnie Francaise de Transports
Aeriens, S.A.
Richard Darman's office has asked for comments by close of
business Friday, November 4 on the above-referenced CAB
decision, which was submitted for Presidential review as
required by § 801 (a) of the Federal Aviation Act of 1958, as
amended, 49 U.S.C. § 1461 (a). Under this section, the
President may disapprove, solely on the basis of foreign
relations or national defense considerations, CAB actions
involving either foreign air carriers or domestic carriers
involved in foreign air transportation. If the President
wishes to disapprove such CAB actions, he must do so within
sixty days of submission (in this case, by November 7).
The order here has been reviewed by the appropriate depart-
ments and agencies, following the procedures established by
Executive Order No. 11920 (1976). OMB recommends that the
President not disapprove, and reports that the NSC and the
Departments of State, Defense, Justice and Transportation
have not identified any foreign relations or national
defense reasons for disapproval. Since this order involves
a foreign carrier, the proposed letter from the President to
the CAB Chairman prepared by OMB omits the standard sentence
designed to preserve availability of judicial review.
This order authorizes Minerve to engage in charger service
between the United States and France, including Corsica.
A memorandum for Darman is attached for your review and
signature.
Attachment
THE WHITE HOUSE
WASHINGTON
November 1, 1983
MEMORANDUM FOR RICHARD G. DARMAN
ASSISTANT TO THE PRESIDENT
FROM:
FRED F. FIELDING Orig. signed by FFF,
COUNSEL TO THE PRESIDENT
SUBJECT:
Civil Aeronautics Board Decision in
Minerve, Compagnie Francaise de Transports
Aeriens, S.A.
Our office has reviewed the above-referenced CAB decision
and related materials 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 this order or to the substance
of the letter from the President to the CAB Chairman
prepared by OMB.
FFF:JGR:aea 11/1/83
CC: FFFielding/JGRoberts/Subj/Chron
THE WHITE HOUSE
WASHINGTON
November 1, 1983
MEMORANDUM FOR RICHARD G. DARMAN
ASSISTANT TO THE PRESIDENT
FROM:
FRED F. FIELDING
COUNSEL TO THE PRESIDENT
SUBJECT:
Civil Aeronautics Board Decision in
Minerve, Compagnie Francaise de Transports
Aeriens, S.A.
Our office has reviewed the above-referenced CAB decision
and related materials 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 this order or to the substance
of the letter from the President to the CAB Chairman
prepared by OMB.
FFF:JGR:aea 11/1/83
CC: FFFielding/JGRoberts/Subj/Chron
ID # 168055 CU
WHITE HOUSE
CORRESPONDENCE TRACKING WORKSHEET
o . OUTGOING
H - INTERNAL
I - INCOMING
Date Correspondence
Received (YY/MM/DD)
/ /
Name of Correspondent: Richard G. DARMAN
MI Mail Report
User Codes: (A)
(B)
(C)
Subject: CAB Decision : Minerve Compagnie
Francaise de Transports aeriens, SA.
ROUTE TO:
ACTION
DISPOSITION
Tracking
Type
Completion
Action
Date
of
Date
Office/Agency
(Staff Name)
Code
YY/MM/DD
Response
Code YY/MM/DD
WHOLL
ORIGINATOR 83/11/01
11
-
Referral Note:
WATI8
D 83,11 ,01'
5 831 11 / 010
Referral Note:
/ /
/ /
Referral Note:
/ /
11
-
I
Referral Note:
11
11
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. 16805555
WHITE HOUSE STAFFING MEMORANDUM
DATE: 10/31/83
ACTION/CONCURRENCE/COMMENT DUE BY: c.o.b. Friday, 11/4/83
SUBJECT:
CAB Decision: Minerve, Compagnie Francaise de Transports
Aeriens, S.A.
ACTION FYI
ACTION FYI
VICE PRESIDENT
HICKEY
MEESE
JENKINS
BAKER
McFARLANE
DEAVER
McMANUS
STOCKMAN
MURPHY
DARMAN
P
SS ROGERS
DUBERSTEIN
SPEAKES
FELDSTEIN
SVAHN
FIELDING
VERSTANDIG
FULLER
WHITTLESEY
GERGEN
HERRINGTON
REMARKS:
Please provide comments/recommendations by c.o.b. Friday, November 4.
Thank you.
RESPONSE:
Richard G. Darman
Assistant to the President
Ext. 2702
OFFICE WTR OF THE PRESIDENT STATES UNITED a
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
October 31, 1983
ACTION
MEMORANDUM FOR THE PRESIDENT
SUBJECT: Civil Aeronautics Board Decision:
Minerve, Compagnie Francaise
de Transports Aeriens, S.A.
Docket 41025
Date due: November 7, 1983
The Civil Aeronautics Board proposes to take the following action
with regard to the above international air case:
-- Issue an initial foreign air carrier permit to Minerve,
Compagnie Francaise de transports Aeriens, S.A., for a
period of five years, authorizing it to engage in charter
foreign air transportation of persons and property
between any point or points in France and Corsica and any
point or points in the United States.
The Departments of State, Defense, Justice, and Transportation
and the National Security Council have not identified any foreign
policy or national defense reasons for disapproving the Board's
order in whole or in part.
The Office of Management and Budget recommends that you approve
the Board's decision by signing the attached letter to the
Chairman which indicates that you do not intend to disapprove the
Board's order within the 60 days allowed by statute for your
review.
Constana Hown
Constance Horner
Associate Director
Economics and Government
Attachments:
CAB letter of transmittal
CAB order
Letter to the Chairman,
2
Options and Implementation Actions:
( )
1) Approve the Board's order (DOS, DOD, DOJ, DOT, NSC,
OMB) .
-- Sign the attached letter to the Chairman.
( )
2)
Disapprove the Board's order.
-- Implementation materials to be prepared.
( ) 3) See me.
FOR OFFICIAL USE ONLY
THE CHAIRMAN
STATE
OF THE
CIVIL AERONAUTICS BOARD
GREAT STATES of MARCH
WASHINGTON, D. C. 20428
B-11
SEP 8 1983
The President
The White House
Washington, D.C. 20500
Dear Mr. President:
I transmit the Board's proposed order on the application of Minerve,
Compagnie Francaise de Transports Aeriens, S.A., Docket 41025, for your
consideration under section 801(a) of the Federal Aviation Act of 1958, as
amended by the Airline Deregulation Act of 1978. The order will issue a
permit to the applicant and adopt the Board's tentative decision in its Order
to Show Cause 83-8-43 (enclosed) unless you disapprove it within 60 days of
this transmittal.
If you should decide earlier that you will not disapprove, please advise
me to that effect; this will allow the earlier issuance of the authority.
We are submitting the proposed decision to you before publication under
the provisions of section 801(a) of the Federal Aviation Act of 1958. In
accordance with Executive Order 11920, however, we plan to release all unclass-
ified portions of the decision on or after the sixth day following this
transmittal unless notified by your Assistant for National Security Affairs.
Respectfully yours,
Dan Mckminan
Dan McKinnon
Enclosures
FOR OFFICIAL USE ONLY
THE WHITE HOUSE
WASHINGTON
Dear Mr. Chairman:
I have reviewed the order proposed by the Civil Aeronautics Board
in the following case:
Minerve, Compagnie Francaise
de Transports Aeriens, S.A.
Docket 41025
I have decided not to disapprove the Board's order.
Sincerely,
The Honorable Dan McKinnon
Chairman
Civil Aeronautics Board
Washington, D.C. 20428
FOR OFFICIAL USE ONLY
UNITED STATES OF AMERICA
CIVIL AERONAUTICS BOARD
WASHINGTON, D.C.
Adopted by the Civil Aeronautics Board
at its office in Washington, D.C.
on the 7th day of September, 1983
Application of
:
:
MINERVE, COMPAGNIE FRANCAISE
:
Docket 41025
DE TRANSPORTS AERIENS, S.A.
:
:
for a foreign air carrier permit
:
pursuant to section 402 of the Federal
:
Aviation Act of 1958, as amended
:
ORDER
By Order 83-8-43, adopted August 10, 1983, the Board directed
interested persons to show cause why the Board should not, subject to the
disapproval of the President, issue an initial foreign air carrier permit
to Minerve, Compagnie Francaise de Transports Aeriens, S.A., for a period
of five years, authorizing it to engage in charter foreign air
transportation of persons and property, as follows:
Between any point or points in France and Corsica
and any point or points in the United States.
The order directed persons objecting to the Board's tentative
findings and conclusions set forth in that order, or to the issuance of
the proposed foreign air carrier permit, to file their objections within
21 days. In addition, the order provided that in the event no objections
were filed, all further procedural steps would be deemed waived, and the
Secretary would enter an order which (1) would make final the Board's
tentative findings and conclusions, and (2) subject to the disapproval of
the President pursuant to section 801 (a) of the Act, would issue a foreign
air carrier permit to Minerve in the specimen form attached.
No objections to Order 83-8-43 have been filed.
OFFICIAL USE ONLY
- 2 -
ACCORDINGLY,
1. We make final our tentative findings and conclusions set forth in
Order 83-8-43;
2. We are issuing a foreign air carrier permit in the form attached
to Minerve, Compagnie Francaise de Transports Aeriens, S.A.;
3. The Secretary of the Board shall sign the permit on our behalf
and shall affix the seal of the Board; and
4. Unless disapproved by the President of the United States under
section 801(a) of the Act, this order and the permit attached shall become
effective on the 61st day after its submission to the President, 1/ or
upon the date of receipt of advice from the President that he does not
intend to disapprove the Board's order under that section, whichever is
earlier.
By the Civil Aeronautics Board:
PHYLLIS T. KAYLOR
Secretary
(SEAL)
All Members concurred.
SEP 8 1983
1/ This order was submitted to the President on
The 61st day is
8 NOV 1983
UNITED STATES OF AMERICA
CIVIL AERONAUTICS BOARD
WASHINGTON, D. C.
PERMIT TO FOREIGN AIR CARRIER
MINERVE, COMPAGNIE FRANCAISE DE TRANSPORTS AERIENS, S.A.
is authorized, subject to the provisions set forth, the provisions of the
Federal Aviation Act of 1958, as amended, and the orders, rules, and
regulations of the Board to engage in charter foreign air transportation
of persons and property, as follows:
Between any point or points in France and Corsica and
any point or points in the United States.
The holder may engage in other charter flights in foreign air
transportation subject to the Board's regulations governing charters.
This permit and the exercise of the privileges granted in its shall
be subject to the terms, conditions, and limitations attached, and to the
following:
1. In the event any practice develops which the Board
regards inimical to fair competition, the holder and the
Board will consult and will use their best efforts to
agree upon modifications satisfactory to the Board and
the holder.
2. This permit shall be subject to all applicable pro-
visions of any treaty, convention, or agreement affecting
international air transportation now in effect, or that
may become effective during the period the permit remains
in effect, to which the United States and France shall be
parties.
3. The Board, by order or regulation, with or without
hearing, may require advance approval of individual
charter trips conducted under the authority granted by
this permit, if it finds that such action is required in
the public interest.
- 2 -
This permit shall be effective on
and shall
,
terminate five years thereafter, except that it shall be subject to
termination at any time if the authority to conduct flight operations to
and from France and/or Corsica granted by the Government of France is
cancelled or restricted.
The Civil Aeronautics Board, through its Secretary, has executed this
permit and affixed its seal on September 7, 1983.
PHYLLIS T. KAYLOR
Secretary
(SEAL)
ATTACHMENT
PERMIT TO FOREIGN AIR CARRIER
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 holder shall keep on deposit with the Board a signed counterpart
of CAB Agreement 18900, an agreement relating to liability limitations of the
Warsaw Convention and the Hague Protocol approved by Board Order E-23680,
May 13, 1966, and a signed counterpart of any amendment or amendments to such
agreement which may be approved by the Board and to which the holder becomes a
party.
(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 pro-
ceeding 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 Board, 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 Board.
(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 Board.
*
Order 83-8-43
UNITED STATES OF AMERICA
CIVIL AERONAUTICS BOARD
WASHINGTON, D. C.
Adopted by the Civil Aeronautics Board
at its office in Washington, D.C.
on the 10th day of August, 1983
Application of
:
:
MINERVE, COMPAGNIE FRANCAISE
:
Docket 41025
DE TRANSPORTS AERIENS, S.A.
:
:
for a foreign air carrier permit
:
pursuant to section 402 of the
:
Federal Aviation Act of 1958, as
:
amended
:
STATEMENT OF TENTATIVE FINDINGS AND CONCLUSIONS
AND ORDER TO SHOW CAUSE
By application filed October 5, 1982, 1/ and noticed in the Federal
Register (47 FR 46348, October 18, 1982), Minerve, Compagnie. Francaise de
Transports Aeriens, S.A., a French charter carrier, requests an initial
foreign air carrier permit to engage in charter foreign air transportation
of persons and property between "Metropolitan France" 2/ and New York, New
York, Miami, Florida, and New Orleans, Louisiana. 3/ On June 22, 1983,
1/ The application received on that date was incomplete, and by Order
82-10-68 we deferred further processing of the application until the
missing evidence required under Part 211 of our Economic Regulations was
furnished. We reserved the right to reject the application if Minerve had
not furnished the missing evidence by December 27, 1982. We received most,
but not all, of the missing evidence in a supplement to the application on
December 22, 1982. On December 23, 1982, the attorney for Minerve
requested an extension until January 20, 1983, to complete the
application. Such request was granted on December 27, 1982, and further
evidence was furnished on January 20, 1983, at which time the application
was complete.
2/ In its supplement to the application, filed on December 22, 1982,
Minerve clarified "Metropolitan France" to mean France plus Corsica.
3/ By Order 83-2-7 in Docket 41041, we granted Minerve an exemption
authorizing charters of persons and property between Metropolitan France
and New York, Miami and New Orleans. This authority will expire in one
year from the date of issue (February 2, 1983) or ninety days after the
Board submits an order to the President with respect to its decision in
this docket, whichever occurs first.
- 3 -
Ownership and Control
Minerve was incorporated on August 8, 1975, under the laws of France.
The company states that it is privately owned and that all of its stock is
held by French citizens. The holder of the largest number of shares (31
percent of the total) is Mr. Rene Ferdinand Meyer, a French citizen and the
president and general manager of the carrier. The applicant states that
all of its officers, directors, and key management personnel are French
citizens, and none holds any stock or other interest in any U.S. or foreign
air carrier or in any person engaged in the business of aeronautics.
Operating History
Since 1975, Minerve has operated passenger charters, primarily from
France to the Mediterranean Basin area, the French West Indies, Peru, and
Kenya. Traffic has increased at an average annual râte of 47 percent from
50,000 passengers in 1976 to 345,000 in 1981. The number of employees has
increased from 16 to 150. The carrier started with one Caravalle in 1976
and acquired one more in each of the next three years. It added a Super
Caravelle in 1980, a DC-8 in 1981, and another in 1982. (Revised Exhibit
15)
Financial and Operating Fitness
Minerve's current license was issued by the Government of France on
December 29, 1982, and authorizes it to operate international passenger,
freight, and courier charter services utilizing its current equipment
within Europe and the Mediterranean Basin area as well as Dakar, Senegal;
Mombassa, Kenya; Asuncion, Paraguay; and Lima, Peru. Minerve is further
licensed to conduct charter operations from the French West Indies and
Europe (except France) to the United States and other named countries, as
well as between France and Corsica and the United States and to certain
other non-U.S. points. Minerve is licensed to operate charter mail and
cargo services on a worldwide basis. The license also permits certain
other operations using small aircraft. (Revised Exhibit 9)
No French governmental assistance has been received or expected (page
2 of application). The carrier had assets of $3.44 million at the end of
1980 and $5.13 million at the end of 1981. The stockholders' equity was
valued at $152,000 at the end of 1980 and $233,000 at the end of 1981.
Minerve sustained an operating loss of $70,000 for calendar year 1980 but
achieved an operating profit of $103,000 for 1981. (Exhibit 14)
During the last three years, Minerve has never been refused insurance
or had it involuntarily cancelled, nor has it been refused debt financing,
defaulted on any transportation commitments, or failed to meet any current
financial obligations. During the last five years, Minerve has had no
- 5 -
Grant of this authority will make possible new United States-France
charter services and add competition in the market.
In view of the foregoing and all the facts of record, we tentatively
find and conclude that:
1. It is in the public interest to issue a foreign air carrier permit
to Minerve, Compagnie Francaise de Transports Aeriens, S.A. in the specimen
form attached, authorizing charter transportation of persons and property
between any point or points in France and Corsica and any point or points
in the United States;
2. The public interest requires that the exercise of the privileges
granted by the permit shall be subject to the terms, conditions, and
limitations contained in the specimen permit attached to this order, and to
such other reasonable terms, conditions, and limitations as we may
prescribe;
3. Minerve is fit, willing, and able properly to perform the
transportation described in the specimen permit and to conform to the
provisions of the Federal Aviation Act of 1958, as amended, and to our
rules, regulations, and requirements;
4. Minerve is substantially owned and effectively controlled by
citizens of France;
5. The public interest does not require an oral evidentiary hearing
on the application;
6. The proposed issuance of Minerve's foreign air carrier permit will
not constitute a "major regulatory action" under the Energy Policy and
Conservation Act of 1975, as defined in section 313.4(a) (1) of the Board's
Regulations; 8/ and
7. Except to the extent granted, the application of Minerve in
Docket 41025 should be denied.
8/ Our tentative finding is based on the fact that issuance of the
proposed permit will not result in a near-term annual increase in fuel
consumption in excess of 10 million gallons.
- 7 -
7. We shall serve a copy of this order upon Minerve, Compagnie
Francaise de Transports Aeriens, S.A.; Dade County, Florida and the
Greater Miami Traffic Association; Transamerica Airlines, Inc.; the
Ambassador of France in Washington, D.C.; and the U.S. Departments of
State and Transportation.
We shallpublish a summary of this order in the Federal Register.
By the Civil Aeronautics Board:
PHYLLIS T. KAYLOR
Secretary
(SEAL)
All Members concurred.
Attachment A
SUMMARY OF APPLICATION
Homeland Country: France
Reciprocity And Comity As Basis For Authority Sought: Yes -- Adequate
comity and reciprocity exist.
Holds Government License For Authority Sought: Exhibit 9
COPY Reagan Presidential Record
Operating History: Charter passenger operations since 1976 from France to
the Mediterranean Basin area, the French West Indies, Peru, and Kenya
Aircraft (All Owned): 2. DC-8-53, 4 Caravelle SE 210 VI, 1 Caravelle SE
210 X 133 ("Super Caravelle")
Aircraft Maintenance Performed By: Aeronavali in Venice and Cargolux in
Luxembourg for checks over 500 hours; Minerve in Toulouse, France for
checks 500 hours or less
Financial Indicators-- As Of:
Dec. 31, 1980
Dec. 31, 1981
(000)
(000)
Total Assets
$ 3,438
$ 5,128
Total Liabilities
3,286
4,895
Owners' Equity-
152
233
Operating Profit (Loss) 12-mos. ended
(70)
103
Majority Ownership And Effective Control By Nationals Of: France
Insurance Coverage: Meets requirements
Insurance Refused Or Involuntarily Canceled During Last 3 Years: No
Refused Debt Financing Last 3 Years: No
Defaulted On Transportation Commitments Last 3 Years: No
Failed To Meet Current Financial Obligations Last 3 Years: No
Safety Or Traffic Violations During Last 5 Years: No
Subscribes To Standard Permit Conditions Regarding Insurance And Annex 6
Of Chicago Convention And C.A.B. Agreement 18900: Yes
Near-term Annual Fuel Consumption Exceeds 10 Million Gallons: No
SPECIMEN PERMIT
UNITED STATES OF AMERICA
CIVIL AERONAUTICS BOARD
WASHINGTON, D. C.
PERMIT TO FOREIGN AIR CARRIER
MINERVE, COMPAGNIE FRANCAISE DE TRANSPORTS AERIENS, S.A.
is authorized, subject to the provisions set forth, the provisions of the
Federal Aviation Act of 1958, as amended, and the orders, rules, and
regulations of the Board to engage in charter foreign air transportation
of persons and property, as follows:
Between any point or points in France and Corsica and
any point or points in the United States.
The holder may engage in other charter flights in foreign air
transportation subject to the Board's regulations governing charters.
This permit and the exercise of the privileges granted in its shall
be subject to the terms, conditions, and limitations attached, and to the
following:
1. In the event any practice develops which the Board
regards inimical to fair competition, the holder and the
Board will consult and will use their best efforts to
agree upon modifications satisfactory to the Board and
the holder.
2. This permit shall be subject to all applicable pro-
visions of any treaty, convention, or agreement affecting
international air transportation now in effect, or that
may become effective during the period the permit remains
in effect, to which the United States and France shall be
parties.
3. The Board, by order or regulation, with or without
hearing, may require advance approval of individual
charter trips conducted under the authority granted by
this permit, if it finds that such action is required in
the public interest.
ATTACHMENT
PERMIT TO FOREIGN AIR CARRIER
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 holder shall keep on deposit with the Board a signed counterpart
of CAB Agreement 18900, an agreement relating to liability limitations of the
Warsaw Convention and the Hague Protocol approved by Board Order E-23680,
May 13, 1966, and a signed counterpart of any amendment or amendments to such
agreement which may be approved by the Board and to which the holder becomes a
party.
(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 pro-
ceeding 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 Board, 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 Board.
(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 Board.
*
*
*
THE WHITE HOUSE
WASHINGTON
December 23, 1983
MEMORANDUM FOR FRED F. FIELDING
FROM:
JOHN G. ROBERTS
&
SUBJECT:
Civil Aeronautics Board Decisions in
Aeroperu; Aeronaves del Peru; Compania
de Aviacion "Faucett"
Richard Darman's office has asked for comments by
January 5 on the above-referenced CAB decisions, which
were submitted for Presidential review as required by
S 801 (a) of the Federal Aviation Act of 1958, as amended,
49 U.S.C. § 1461 (a). Under this section, the President
may disapprove, solely on the basis of foreign relations or
national defense considerations, CAB actions involving
either foreign air carriers or domestic carriers involved in
foreign air transportation. If the President wishes to
disapprove such CAB actions, he must do so within sixty days
of submission (in these cases, by January 22, 1984).
The orders here have been reviewed by the appropriate
departments and agencies, following the procedures
established by Executive Order No. 11920 (1976). OMB
recommends that the President not disapprove, and reports
that the NSC and the Departments of State, Defense, Justice
and Transportation have not identified any foreign relations
or national defense reasons for disapproval. Since these
orders involve foreign carriers, the proposed letter from
the President to the CAB Chairman prepared by OMB omits the
standard sentence designed to preserve availability of
judicial review.
These orders deny all pending applications by Peruvian
carriers, in response to Peru's recent renunciation of the
U.S.-Peru Air Transport Services Agreement. The Board hopes
to use these orders as a bargaining chip in negotiations
with Peru scheduled for January 1984.
A memorandum for Darman is attached for your review and
signature.
Attachment
THE WHITE HOUSE
WASHINGTON
December 23, 1983
MEMORANDUM FOR RICHARD G. DARMAN
ASSISTANT TO THE PRESIDENT
FROM:
FRED F. FIELDING Orig. signed by FFF
COUNSEL TO THE PRESIDENT
SUBJECT:
Civil Aeronautics Board Decisions in
Aeroperu; Aeronaves del Peru; Compania
de Aviacion "Faucett"
Our office has reviewed the above-referenced CAB decisions
and related materials, 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 CAB
Chairman prepared by OMB.
FFF: JGR:aea 12/23/83
CC: FFFielding/JGRoberts/Subj/Chron
THE WHITE HOUSE
WASHINGTON
December 23, 1983
MEMORANDUM FOR RICHARD G. DARMAN
ASSISTANT TO THE PRESIDENT
FROM:
FRED F. FIELDING
COUNSEL TO THE PRESIDENT
SUBJECT:
Civil Aeronautics Board Decisions in
Aeroperu; Aeronaves del Peru; Compania
de Aviacion "Faucett"
Our office has reviewed the above-referenced CAB decisions
and related materials, 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 CAB
Chairman prepared by OMB.
FFF:JGR:aea 12/23/83
CC: FFFielding/JGRoberts/Subj/Chron
ID # 168507
CU
WHITE HOUSE
CORRESPONDENCE TRACKING WORKSHEET
o OUTGOING
H INTERNAL
I . INCOMING
Date Correspondence
Received (YY/MM/DD)
/
/
Name of Correspondent:
Richard G. DARMAN
MI Mail Report
User Codes: (A)
(B)
(C)
Subject: CAB Decision rc: aeroperu; ; aeronaves del
Peru, ; Compania de aviacion "Faucett"
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 83,12,22
/ /
Referral Note:
CUAT18
D
83/12/22
584,01,05
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.
168507SS
WHITE HOUSE STAFFING MEMORANDUM
DATE:
12/22/83
ACTION/CONCURRENCE/COMMENT DUE BY:
1/5/84
SUBJECT: CAB DECISION RE: AEROPERU; AERONAVES DEL PERU; COMPANIA DE AVIACION
"FAUCETT"
ACTION FYI
ACTION FYI
VICE PRESIDENT
JENKINS
MEESE
McFARLANE
BAKER
McMANUS
DEAVER
MURPHY
STOCKMAN
OGLESBY
DARMAN
P
SS ROGERS
FELDSTEIN
SPEAKES
FIELDING
SVAHN
FULLER
VERSTANDIG
GERGEN
WHITTLESEY
HERRINGTON
HICKEY
REMARKS:
May we have your comments on the attached by Thursday, January 5.
Thank you.
RESPONSE:
1983 DEC 22 AM II: 28
Richard G. Darman
Assistant to the President
Ext. 2702
STATE / EXECUTIVE UNITED OFFICE FRESDENN
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
DEC 21 1983
ACTION
MEMORANDUM FOR:
ASSISTANT TO THE PRESIDENT
AND DEPUTY TO THE CHIEF OF STAFF
SUBJECT:
Civil Aeronautics Board Decisions
AeroPeru (Empresa de
Aeronaves del Peru, S.A.
Transportes Aereo del Peru)
Docket 26637
Dockets 32945, 33546, 34168
Date due: January 22, 1984
Date due: January 22, 1984
Aeronaves del Peru, S.A.
Compania de Aviacion "Faucett,"
Docket 40850
S.A.
Date due: January 22, 1984
Dockets 35755, 32089
Date due: January 22, 1984
You will find attached a memorandum for the President about the
above international aviation cases. The interested executive
agencies have reviewed the Board's decisions and have no
objection to the proposed orders.
These are routine, noncontroversial matters. No foreign policy
or national defense reasons for disapproving the Board's orders
have been identified. I recommend that the President sign the
attached letter to the Chairman which indicates that he does not
intend to disapprove the Board's orders within the 60 days
allowed by statute. Otherwise, the Board's orders become final
on the 61st day.
You should also be aware that the Board has requested that the
President review these cases on an expedited basis. The Board
hopes to use the decisions as a bargaining tool in air transport
negotiations with Peru, scheduled for January 1984.
Original signed by
Constance Horner
Constance Horner
Associate Director
Economics and Government
Attachments:
Memorandum to the President
CAB letters of transmittal
CAB orders
Letter to the Chairman
/ STREUTIVE UNITED OFFICE FRESDEND
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
DEC 21 1983
ACTION
MEMORANDUM FOR THE PRESIDENT
SUBJECT:
Civil Aeronautics Board Decisions:
AeroPeru (Empresa de
Aeronaves del Peru, S.A.
Transportes Aereo del Peru)
Docket 26637
Dockets 32945, 33546, 34168
Date due: January 22, 1984
Date due: January 22, 1984
Aeronaves del Peru, S.A.
Compania de Aviacion "Faucett,"
Docket 40850
S.A.
Date due: January 22, 1984
Dockets 35755, 32089
Date due: January 22, 1984
The Civil Aeronautics Board proposes to take the following
actions with regard to the above international air cases:
-- Deny all pending permit renewal or amendment applications
of AeroPeru, Aeronaves del Peru, S.A., and Compania de
Aviacion "Faucett," S.A. The Board's action is a measured
response to Peru's renunciation of the U.S.-Peru Air
Transport Services Agreement. The Board believes that
this action will aid the United States in negotiations
with Peru, scheduled for January 1984, over a new
agreement.
The Departments of State, Defense, Justice, and Transportation
and the National Security Council 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
the Board's decisions by signing the attached letter to the
Chairman which indicates that you do not intend to disapprove the
Board's orders within the 60 days allowed by statute for your
review.
signal signed by
Constance Horner
Constance Horner
Associate Director
Economics and Government
2
Attachments:
CAB letters of transmittal
CAB orders
Letter to the Chairman
Options and Implementation Actions:
( ) 1) Approve the Board's orders (DOS, DOD,
DOJ, DOT, NSC, OMB) .
-- Sign the attached letter to the Chairman.
( ) 2) Disapprove the Board's orders.
-- Implementation materials to be prepared.
( ) 3) See me.
THE WHITE HOUSE
WASHINGTON
Dear Mr. Chairman:
I have reviewed the orders proposed by the Civil Aeronautics
Board in the following cases:
AeroPeru (Empresa de
Aeronaves del Peru, S.A.
Transportes Aereo del Peru)
Docket 26637
Dockets 32945, 33546, 34168
Aeronaves del Peru, S.A.
Compania de Aviacion "Faucett,"
Docket 40850
S.A.
Dockets 35755, 32089
I have decided not to disapprove the Board's orders.
Sincerely,
The Honorable Dan McKinnon
Chairman
Civil Aeronautics Board
Washington, D.C. 20428
FOR OFFICIAL USE ONLY
UNITED STATES OF AMERICA
CIVIL AERONAUTICS BOARD
WASHINGTON, D. C.
Adopted by the Civil Aeronautics Board
at its office in Washington, D. C.
on the 23rd day of November, 1983
Applications of
:
:
AEROPERU (EMPRESA DE
:
Dockets 32945
TRANSPORTES AEREO DEL PERU)
:
33546
:
34168
for renewal and amendment of its foreign
:
air carrier permit pursuant to
:
section 402 of the Federal Aviation
:
Act of 1958, as amended
:
:
:
Application of
:
:
AERONAVES DEL PERU, S.A.
:
Docket 26637
:
for amendment and renewal of its
:
foreign air carrier permit pursuant to
:
section 402 of the Federal Aviation Act
:
of 1958, as amended
:
:
Application of
:
:
AERONAVES DEL PERU, S.A.
:
Docket 40850
:
for a foreign air carrier
:
permit pursuant to section
:
402 of the Federal Aviation
:
Act of 1958, as amended
:
:
:
Applications of
:
:
COMPANIA DE AVIACION "FAUCETT," S.A.
:
Dockets 35755
:
32089
for amendment and renewal of its foreign
:
air carrier permit pursuant to section
:
402 of the Federal Aviation Act of 1958,
:
as amended
:
FOR OFFICIAL USE ONLY
- 2 -
FINAL ORDER
Introduction
By Order 83-11-56, we tentatively decided to deny all pending
permit renewal or amendment applications of AeroPeru (Empresa de
Transportes Aereo del Peru), Aeronaves del Peru, S.A., and Compania de
Aviacion "Faucett," S.A. We directed all interested persons to show cause
why we should not issue an order making final our tentative findings and
conclusions, and allowed such persons until 12:00 noon November 18, 1983,
to file comments in response to our show-cause order.
Aeronaves and Faucett filed responses to our order. Aeronaves urges
the Board to defer consideration of the applications until the conclusion
of negotiations between the United States and Peru. The carrier suggests
that our proposed action is inconsistent with the public interest because
it may impede the resumption of normal aviation relations between the
United States and Peru.
Faucett requests that instead of denying its applications, the Board
suspend action on them, or alternatively, dismiss them without prejudice
to their reinstatement at such time as a new air transport agreement
between the United States and Peru becomes effective. In support of its
request, Faucett states that denial of its applications presumes a finding
by the Board that grant of each application would be inconsistent with the
public interest. Faucett asserts that there is no record upon which such
a finding could be made and that the Board's decision in Order 83-11-49 to
allow Faucett and the other Peruvian carriers to continue their existing
service under temporary exemption authority supports the conclusion that
at least that service remains in the public interest. Although Faucett
concedes that the lack of an underlying bilateral treaty removes all
basis for granting the pending applications, it asserts, on the other
hand, that the lack of a treaty does not require the denial of those
applications.
Decision
We have decided to make final our tentative findings and conclusions
and to issue an order denying the pending permit applications of AeroPeru,
Aeronaves and Faucett.
- 3 -
Aeronaves' and Faucett's permit authority were based on the terms of
the U.S.-Peru Air Transport Services Agreement. That authority terminated
automatically upon termination of the Agreement on November 11, 1983.
Thus, the Peruvian carriers' pending permit applications request renewal
and amendment of permit authority which no longer exists. As Faucett
itself recognizes, no basis exists for granting these pending
applications. Under these circumstances, preservation of the applications
would serve no purpose, and denial is in order.
Moreover, we indicated clearly in Order 83-11-49 that because of
Peru's renunciation of the Agreement, it was consistant with the public
interest to consider all Peruvian carrier requests for operating authority
de novo, based on principles of comity and reciprocity. We also indicated
that it was consistent with the public interest to transform the regime of
U.S.-Peru aviation relations into one where all Peruvian carriers would
hold new temporary authorizations. Nothing in the pleadings causes us to
alter our tentative findings and conclusions. Against this background,
denial of pending permit applications is fully consistent with the public
interest.
ACCORDINGLY,
1. We make final our tentative findings and conclusions in Order
83-11-56;
2. We deny AeroPeru's applications in Dockets 32945, 33546 and
34168; Aeronaves' applications in Dockets 26637 and 40850; and Faucett's
applications in Dockets 26637, 32089 and 35755;
3. Unless disapproved by the President. of the United States under
section 801 (a) of the Act, this order shall become effective on the 61st
day after its submission to the President or upon the date of receipt of
advice from the President that he does not intend to disapprove the
Board's order under that section, whichever is earlier; 1;' and
4. We will serve this order upon AeroPeru (Empresa de Transportes
Aereo del Peru), Aeronaves del Peru, S.A., Compania de Aviacion "Faucett,"
S.A., Challenge Air Transport, Inc., Eastern Air Lines, Inc., the
Ambassador of Peru in Washington, D.C., and the United States Departments
of State and Transportation.
By the Civil Aeronautics Board:
PHYLLIS T. KAYLOR
Secretary
(SEAL)
All Members concurred.
1/ This letter was submitted to the President on NOV 23 1983
The 61st day is JAN 23 1984
THE WHITE HOUSE
WASHINGTON
December 27, 1983
MEMORANDUM FOR FRED F. FIELDING
FROM:
JOHN G. ROBERTS
23R
SUBJECT:
Civil Aeronautics Board Decision in
Trans-Mediterranean Airways
Richard Darman's office has asked for comments by
December 27 on the above-referenced CAB decision, which
was submitted for Presidential review as required by
§ 801 (a) of the Federal Aviation Act of 1958, as amended,
49 U.S.C. § 1461 (a). Under this section, the President
may disapprove, solely on the basis of foreign relations or
national defense considerations, CAB actions involving
either foreign air carriers or domestic carriers involved in
foreign air transportation. If the President wishes to
disapprove such CAB actions, he must do so within sixty days
of submission (in this case, by January 9, 1984).
The order here has been reviewed by the appropriate depart-
ments and agencies, following the procedures established by
Executive Order No. 11920 (1976). OMB recommends that the
President not disapprove, and reports that the NSC and the
Departments of State, Defense, Justice and Transportation
have not identified any foreign relations or national
defense reasons for disapproval. Since this order involves
a foreign carrier, the proposed letter from the President to
the CAB Chairman prepared by OMB omits the standard sentence
designed to preserve availability of judicial review.
This order authorizes service by the named carrier between
Lebanon and New York, with seven intermediate points in
Europe. OMB describes the order as a "routine, noncon-
troversial matter."
A memorandum for Darman is attached for your review and
signature.
Attachment
THE WHITE HOUSE
WASHINGTON
December 27, 1983
MEMORANDUM FOR RICHARD G. DARMAN
ASSISTANT TO THE PRESIDENT
FROM:
FRED F. FIELDING 15/
COUNSEL TO THE PRESIDENT
SUBJECT:
Civil Aeronautics Board Decision in
Trans-Mediterranean Airways
Our office has reviewed the above-referenced CAB decision
and related materials, 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 this order or to the substance
of the letter from the President to the CAB Chairman
prepared by OMB.
FFF:JGR:aea 12/27/83
CC: FFFielding/JGRoberts/Subj/Chron
ID #
CU
WHITE HOUSE
CORRESPONDENCE TRACKING WORKSHEET
o OUTGOING
H INTERNAL
I * INCOMING
Date Correspondence
Received (YY/MM/DD)
/
/
Name of Correspondent:
Richard G. DARMAN
MI Mail Report
User Codes: (A)
(B)
(C)
Subject:
CAB Decisure rc: Trans- Mediterranean
airways
ROUTE TO:
ACTION
DISPOSITION
Tracking
Type
Completion
Action
Date
of
Date
Office/Agency
(Staff Name)
Code
YY/MM/DD
Response
Code
YY/MM/DD
CUISOLL
ORIGINATOR 83,12,23
/
/
Referral Note:
CNATIB
7
83/12/23
5 83,12,23
Referral Note:
/ /
/ /
-
Referral Note:
/ /
/ /
-
Referral Note:
1.1
/ /
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.
168514SS
TOR
WHITE HOUSE STAFFING MEMORANDUM
DATE:
12/22/83
ACTION/CONCURRENCE/COMMENT DUE BY:
12/27/83
SUBJECT:
CAB DECISION RE TRANS-MEDITERRANEAN AIRWAYS
ACTION FYI
ACTION FYI
VICE PRESIDENT
JENKINS
MEESE
McFARLANE
BAKER
McMANUS
DEAVER
MURPHY
STOCKMAN
OGLESBY
DARMAN
P
SS ROGERS
FELDSTEIN
SPEAKES
FIELDING
SVAHN
FULLER
VERSTANDIG
GERGEN
WHITTLESEY
HERRINGTON
HICKEY
REMARKS:
May we have your comments on the attached by December 27. Thank you.
RESPONSE:
Richard G. Darman
Assistant to the President
Ext. 2702
OFFICE PRESIDENT SERVICE UNITED
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
DEC 22 1983
ACTION
MEMORANDUM FOR: ASSISTANT TO THE PRESIDENT
AND DEPUTY TO THE CHIEF OF STAFF
SUBJECT:
Civil Aeronautics Board Decision:
Trans-Mediterranean Airways, S.A.L.
Docket 41488
Date due: January 9, 1984
You will find attached a memorandum for the President about the
above international aviation case. The interested executive
agencies have reviewed the Board's decision and have no objection
to the proposed order.
This is a routine, noncontroversial matter. No foreign policy or
national defense reasons for disapproving the Board's order have
been identified. I recommend that the President sign the
attached letter to the Chairman which indicates that he does not
intend to disapprove the Board's order within the 60 days allowed
by statute. Otherwise, the Board's order becomes final on the
61st day.
Original signed by
Constance Horner
Constance Horner
Associate Director
Economics and Government
Attachments:
Memorandum to the President
CAB letter of transmittal
CAB order
Letter to the Chairman
WTR
PRESIDENT
OFFICE
EXECUTIVE OFFICE OF THE PRESIDENT
STENUTIVE
UNITED
OFFICE OF MANAGEMENT AND BUDGET
STATE
WASHINGTON, D.C. 20503
DEC 22 1983
ACTION
MEMORANDUM FOR THE PRESIDENT
SUBJECT: Civil Aeronautics Board Decision:
Trans-Mediterranean Airways, S.A.L.
Docket 41488
Date due: January 9, 1983
The Civil Aeronautics Board proposes to take the following action
with regard to the above international air case:
-- Amend and renew the foreign air carrier permit of
Trans-Mediterranean Airways, S.A.L., to authorize
scheduled and charter air service of property and mail
between a point or points in Lebanon, seven intermediate
points in Western Europe, and the terminal point of
New York, New York.
The Departments of State, Defense, Justice, and Transportation
and the National Security Council have not identified any foreign
policy or national defense reasons for disapproving the Board's
order in whole or in part.
The Office of Management and Budget recommends that you approve
the Board's decision by signing the attached letter to the
Chairman which indicates that you do not intend to disapprove the
Board's order within the 60 days allowed by statute for your
review.
Original signed by
Constance Horner
Constance Horner
Associate Director
Economics and Government
Attachments:
CAB letter of transmittal
CAB order
Letter to the Chairman
2
Options and Implementation Actions:
(
)
1) Approve the Board's order (DOS, DOD, DOJ, DOT, NSC,
OMB) .
-- Sign the attached letter to the Chairman.
(
)
2)
Disapprove the Board's order.
-- Implementation materials to be prepared.
( ) 3) See me.
THE WHITE HOUSE
WASHINGTON
Dear Mr. Chairman:
I have reviewed the order proposed by the Civil Aeronautics Board
in the following case:
Trans-Mediterranean Airways, S.A.L.
Docket 41488
I have decided not to disapprove the Board's order.
Sincerely,
The Honorable Dan McKinnon
Chairman
Civil Aeronautics Board
Washington, D.C. 20428
OFFICE PRESIDENT SERVICE UNITED
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF management AND BUDGET
WASHINGTON, D.C. 20503
DEC 22 1983
ACTION
MEMORANDUM FOR: ASSISTANT TO THE PRESIDENT
AND DEPUTY TO THE CHIEF OF STAFF
SUBJECT:
Civil Aeronautics Board Decision:
Trans-Mediterranean Airways, S.A.L.
Docket 41488
Date due: January 9, 1984
You will find attached a memorandum for the President about the
above international aviation case. The interested executive
agencies have reviewed the Board's decision and have no objection
to the proposed order.
This is a routine, noncontroversial matter. No foreign policy or
national defense reasons for disapproving the Board's order have
been identified. I recommend that the President sign the
attached letter to the Chairman which indicates that he does not
intend to disapprove the Board's order within the 60 days allowed
by statute. Otherwise, the Board's order becomes final on the
61st day.
Original signed by
Constance Horner
Constance Horner
Associate Director
Economics and Government
Attachments:
Memorandum to the President
CAB letter of transmittal
CAB order
Letter to the Chairman
OFFICE PRESIDENT STATE UNITED
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF management AND BUDGET
WASHINGTON, D.C. 20503
DEC 22 1983
ACTION
MEMORANDUM FOR THE PRESIDENT
SUBJECT: Civil Aeronautics Board Decision:
Trans-Mediterranean Airways, S.A.L.
Docket 41488
Date due: January 9, 1983
The Civil Aeronautics Board proposes to take the following action
with regard to the above international air case:
-- Amend and renew the foreign air carrier permit of
Trans-Mediterranean Airways, S.A.L., to authorize
scheduled and charter air service of property and mail
between a point or points in Lebanon, seven intermediate
points in Western Europe, and the terminal point of
New York, New York.
The Departments of State, Defense, Justice, and Transportation
and the National Security Council have not identified any foreign
policy or national defense reasons for disapproving the Board's
order in whole or in part.
The Office of Management and Budget recommends that you approve
the Board's decision by signing the attached letter to the
Chairman which indicates that you do not intend to disapprove the
Board's order within the 60 days allowed by statute for your
review.
Original signed by
Constance Homer
Constance Horner
Associate Director
Economics and Government
Attachments:
CAB letter of transmittal
CAB order
Letter to the Chairman
2
Options and Implementation Actions:
(
) 1) Approve the Board's order (DOS, DOD, DOJ, DOT, NSC,
OMB) .
---- Sign the attached letter to the Chairman.
( )
2)
Disapprove the Board's order.
- Implementation materials to be prepared.
( ) 3) See me.
THE WHITE HOUSE
WASHINGTON
Dear Mr. Chairman:
I have reviewed the order proposed by the Civil Aeronautics Board
in the following case:
Trans-Mediterranean Airways, S.A.L.
Docket 41488
I have decided not to disapprove the Board's order.
Sincerely,
The Honorable Dan McKinnon
Chairman
Civil Aeronautics Board
Washington, D.C. 20428
FOR OFFICIAL USE ONLY
UNITED STATES OF AMERICA
CIVIL AERONAUTICS BOARD
WASHINGTON, D. C.
Adopted by the Civil Aeronautics Board
at its office in Washington, D.C.
on the 8th day of November, 1983
Application of
:
:
TRANS-MEDITERRANEAN AIRWAYS, S.A.L.
:
Docket 41488
:
for amendment and renewal 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
Trans-Mediterranean Airways, S.A.L., (TMA), a Lebanese carrier,
currently holds a three-year foreign air carrier permit, by Order
80-5-147 effective May 21, 1980. The permit authorizes TMA to conduct
scheduled Lebanon-New York City service, carrying property and mail, via
seven European intermediate points, 1/ and to operate cargo charters under
our charter regulations. 2/
TMA's permit contains, among others, the following three terms,
conditions, and limitations: (1) TMA shall not operate more than seven
scheduled flights per week in each direction; (2) the volume of TMA's cargo
loaded or unloaded at New York, which is destined for and coming from third
countries, shall bear a "reasonable relationship" to the volume of its New
York-Lebanon cargo--any cargo which, within ten days, will be transported
to, or has been transported from, a point beyond Lebanon in TMA aircraft,
is considered to be destined for or coming from a third country (the
"ten-day" restriction); and (3) TMA shall not grant a boarding or delivery
priority or preference to the Arabian-American Oil Company (ARAMCO) or its
affiliates, unless such service is available to all shippers at the same
rate or charge, and shall cancel any existing contract provision with
ARAMCO or its affiliates, which is not available on equal terms to all
shippers (the "ARAMCO" restriction).
1/ The seven intermediates are Basel, Switzerland; Amsterdam, Netherlands;
Copenhagen, Denmark; Stockholm, Sweden; Frankfurt, Germany; Paris, France;
London, England. However, the permit precludes TMA from picking up or
discharging at New York property or mail destined for or originating at
Frankfurt, Paris, or London.
2/ In its instant permit application, TMA relies on the automatic-
extension provisions of the Administrative Procedure Act, 5 U.S.C. 558(c),
as implemented by Part 377 of our regulations, to keep the authority in
effect pending final disposition of the application.
FOR OFFICIAL USE ONLY
- 2 -
TMA is designated by its government under the United States-Lebanon
Air Transport Services Agreement, which entered into force September 1,
1972, to conduct scheduled all-cargo services between the two countries via
the seven named European intermediate points. 3/ The route schedule of the
1972 Agreement expired by its terms on May 27, 1976. It was extended
through December 31, 1976 by agreement between the two governments. An
Exchange of Notes signed in October 1977 provided continued authority for
TMA's operations and for the resumption of Pan American's Beirut service
on the basis of comity and reciprocity. Two recent Exchange of Notes again
provide definitive route rights for the carriers of both countries. The
Exchange of Notes dated December 22, 1982, provides routes for airlines of
the United States and for another Lebanese carrier, Middle East Airlines.
The Exchange dated April 29, 1983, provides TMA's all-cargo route rights.
Under the April 29 Exchange of Notes, TMA is entitled to conduct
scheduled all-cargo Lebanon-New York service, via the intermediate points
Basel, Amsterdam, Copenhagen, Stockholm, Frankfurt, Paris, and London,
without traffic rights between New York and the intermediate points Paris,
London, and Frankfurt, at a frequency of four round-trip flights per week
with narrow-body aircraft or equivalent capacity.
Application
By application filed May 16, 1983, and notice of which was placed in
the Federal Register (48 FR 23876, May 27, 1983), TMA requests that we
renew its foreign air carrier permit for a three-year period, and amend it
in accordance with the Exchange of Notes dated April 29, 1983. TMA also
requests that we remove from its permit the ten-day and ARAMCO conditions.
In support of its overall application, TMA asserts (Attachment A is a
summary of the application) that it is a carrier of Lebanon, privately
owned and controlled by nationals of Lebanon; that it is financially and
operationally qualified to conduct the scheduled and charter cargo
operations it proposes; 4/ that it is licensed by its government to do so;
3/ The 1972 Agreement superseded the 1946 United States-Lebanon Air
Transport Services Agreement.
4/ TMA states that the Port Authority of New York and New Jersey enacted
noise-abatement regulations, which will not permit the use of Boeing 707
equipment at its airports. TMA's fleet consists solely of B-707's. By
letter dated August 16, 1983, TMA states that in June 1983 the United
States District Court for the Southern District of New York found the
restriction to be invalid and issued a preliminary injunction against the
Port Authority, that the Port Authority has appealed the District Court's
decision to the United States Court of Appeals, and that the appeal is
pending. TMA asserts that, regardless of the outcome of the appeal, it has
the means to conduct New York service via its block-space arrangement with
Middle East Airlines S.A.L., approved for a one-year period by Order
83-7-72.
- 3 -
that it is designated by its government to conduct the scheduled cargo
services provided for in the April 29 Exchange of Notes; 5/ and that
adequate comity and reciprocity with Lebanon underlie its request to
operate cargo charter flights to the United States.
In support of its request to have the ten-day condition removed from
its permit, TMA argues that it was instituted in the absence of an
effective route schedule specified in the Agreement and is no longer
relevant because the April 29 Exchange of Notes prescribes the limitations
on the level of TMA's operations. Further, TMA asserts, without
elaboration, that the ARAMCO condition has not been relevant for a number
of years.
No answers to the application have been filed.
Decision
We have thoroughly reviewed the record, including the application, and
have decided to grant the application using the simplified Subpart Q
procedures. 6/ The public was informed of TMA's application by notices in
the Federal Register and our weekly list of applications filed, describing
the authority sought and giving interested persons an opportunity to submit
evidence and objections to the award of the 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 have decided to amend and renew TMA's foreign air carrier permit
for a three-year period to authorize the carrier to conduct scheduled
service, carrying property and mail, between Lebanon and New York City, via
the seven named European intermediate points, and to operate cargo charter
flights in foreign air transportation, under our regulations governing
charters. 7/ Based on TMA's submissions and other facts of record, we find
and conclude that the applicant is substantially owned and effectively
controlled by nationals of Lebanon, and that it is fit, willing, and able
to perform properly the scheduled and charter 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 regard,
no party has challenged TMA's ownership and control by homeland nationals,
5/ See section 402(b) of the Federal Aviation Act of 1958, as amended;
49 U.S.C. 1372(b).
6/ 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 provision of an opportunity for
interested parties to submit evidence and to object to grant of authority
under section 402 of the Act.
7/ Although the Agreement and the exchanges of notes do not provide for
charter operations, we are granting TMA the underlying charter authority on
the basis of comity and reciprocity.
- 4 -
its financial and operational fitness, 8/ or the adequacy of the carrier's
compliance disposition. Moreover, TMA's scheduled authority is provided
by a recent Exchange of Notes between the United States and Lebanon, and
the airline is licensed by its government to conduct the scheduled and
charter operations it requests.
We further find and conclude that adequate comity and reciprocity with
Lebanon underlies TMA's request to conduct cargo charter flights to and
from the United States, and is sufficient to warrant issuing a permit for a
three-year term.
We are not persuaded, however, that either the ten-day or the ARAMCO
condition should be removed from TMA's permit. See conditions 4 and 5,
respectively, in the attached permit.
Concerning retention of the ten-day condition, we believe that the
volume of TMA's New York City cargo (cargo loaded or unloaded at New York),
which is destined for or coming from third countries (Fifth including Sixth
Freedom traffic), should continue to bear a reasonable relationship to the
volume of TMA's Third and Fourth Freedom Lebanon-New York cargo. TMA's
New York cargo, which, within ten days, TMA will transport to or has
carried from, points beyond Lebanon, still should be considered as
third-country carriage for the purposes of the condition. The basis for
the ten-day condition was thoroughly considered in 1977 and 1978, 9/ and we
do not view TMA's route rights being delineated under the April 1983
Exchange of Notes as obviating the need for the ten-day condition.
Further, we continue to believe that TMA should not grant contractual,
boarding, or delivery-priority preferences to ARAMCO or its affiliates.
This too is a longstanding condition, imposed after formal hearing and
thorough Board deliberation. TMA has offered no basis other than an
unsubstantiated claim to justify its removal. Thus, we find that the
reasons for applying the condition remain sound. Therefore, we find and
conclude that retaining both conditions is consistent with the public
interest.
In view of the foregoing and all the facts of record, we find and
conclude that:
1. The applicant is qualified and has been designated by its
government to perform the air services described in the attached foreign
air carrier permit;
2. The applicant 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 our rules, regulations and requirements;
8/ By letter dated June 20, 1983, the Acting Manager, Air Transportation
Division, Office of Flight Operations, advised us that TMA conducts its
operations in accordance with Part 129 of the FAA's Federal Aviation
Regulations, and that he sees no reason why we should act unfavorably on
the application.
9/ See p.25 of the Recommended Decision of Administrative Law Judge Kane,
served April 11, 1977, in Docket 30255; Order 78-5-67 (76 C.A.B. 698); and
Order 78-9-62, denying TMA's petition for reconsideration, requesting that
the ten-day condition be deleted from its permit.
- 5 -
3. The public interest requires that the exercise of the privileges
granted by the permit shall be subject to the terms, conditions, and
limitations contained in the attached permit, and to such other reasonable
terms, conditions, and limitations required by the public interest as we
may prescribe;
4. The applicant is substantially owned and effectively controlled by
nationals of its homeland country;
5. Issuance of this 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; 10/ and
6. 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 80-5-147, to authorize,
among other things, scheduled and charter air service of property and mail
between the United States and Lebanon;
2. We deny, except to the extent granted, the application and other
requests for relief in this Docket;
3. The Secretary of the Board shall sign the permit on our behalf and
shall affix the seal of the Board;
4. Unless disapproved by the President of the United States under
section 801 (a) of the Act, this order with the attached permit shall become
effective on the 61st day after its submission to the President, 11/ or
upon the date of receipt of advice from the President that he does not
intend to disapprove the Board's order under that section, whichever is
earlier; and
5. We shall serve this order on the applicant, the Ambassador of
Lebanon in Washington, D.C., the Federal Aviation Administration (AFO-220),
and the Departments of State and Transportation.
By the Civil Aeronautics Board:
PHYLLIS T. KAYLOR
Secretary
(SEAL)
A11 Members concurred.
10/ Our finding is based upon the fact that amendment and renewal of the
applicant's permit will not result in a near-term annual increase in fuel
consumption in excess of 10 million gallons.
11/ This order was submitted to the President on NOV 10 1983
The 61st day is JAN 10 1984
Attachment A
Page 1 of 2
SUMMARY OF APPLICATION
Homeland Country: Lebanon
Current Permit Issued By: Order 80-5-147, permit effective May 21, 1980
Evidence Incorporated By Reference From: Dockets 22901, 30255, and 35516
COPY Reagan Presidential Record
Bases For Authority Sought: TMA is designated by its government under the
United States-Lebanon Air Transport Services Agreement, to conduct
scheduled all-cargo services between the two countries via various inter-
mediate points. The scheduled cargo authority that TMA requests is
provided for the applicant by the Exchange of Notes between the two
governments, dated April 29, 1983. The charter authority TMA requests is
not provided for by agreement; however, adequate comity and reciprocity
underlie that portion of the request.
Holds Government License For Authority Sought: Yes, see Docket 22901
Operating History: TMA received its initial foreign air carrier permit in
1971 and has conducted all-cargo operations to and from the United States
since that time. (Also, see Docket 35516.)
Aircraft Owned: Eight Boeing 707-320c's
Aircraft Maintenance Performed By: TMA in Lebanon
Financial Indicators (As Of):
Dec. 31, 1981
Dec. 31. 1982
(Millions)
(Millions)
Total Assets
$ 89.1
$ 73.5
Total Liabilities
60.1
53.2
Owners' Equity
29.0
20.4
Operating (Loss)--12 months ended
(2.1)
(15.1)
Majority Ownership By Nationals Of: Lebanon
Effective Control By Nationals Of: Lebanon
Insurance Coverage: Yes
Insurance Refused Or Involuntarily Canceled During Last 3 Years: No
Refused Debt Financing Last 3 Years: No
Defaulted On Transportation Commitments Last 3 Years: No
Failed To Meet Current Financial Obligations Last 3 Years: No
Safety Violations During Last 5 Years: No
Tariff Violations During Last 5 Years: No
Attachment A
Page 2 of 2
Subscribes To Standar Permit Conditions Regarding Insurance And Annex 6 Of
Chicago Convention And C.A.B. Agreement 18900: Yes
COPY Reagan Presidential Record
Near-term Annual Fuel Consumption Exceeds 10 Million Gallons: No
Other: TMA states that it holds 5,922 shares of common stock in Braniff
International Corp., 1,002 shares of common stock in Tiger International
Inc., and debentures of $40,000 in Tiger International 1995. Further,
TMA states that none of its stock has been given or pledged to borrow
funds or purchase aircraft.
UNITED STATES OF AMERICA
CIVIL AERONAUTICS BOARD
WASHINGTON, D. C.
PERMIT TO FOREIGN AIR CARRIER
(as amended and renewed)
TRANS-MEDITERRANEAN AIRWAYS, S.A.L.
is authorized, subject to the following provisions, the provisions of the
Federal Aviation Act of 1958, as amended, and the orders, rules, and
regulations issued thereunder, to engage in foreign air transportation of
property and mail, as follows:
Between a point or points in Lebanon; the intermediate
points Basel, Switzerland; Amsterdam, Netherlands;
Copenhagen, Denmark; Stockholm, Sweden; Frankfurt,
Germany; Paris, France; London, England; and the
terminal point New York, New York.
The holder shall be authorized to engage in charter trips in foreign
air transportation, subject to the terms, conditions, and limitations
prescribed by the Board's Regulations governing charters.
This permit shall be subject to the following terms, conditions, and
limitations:
1. All scheduled flights serving New York shall originate or
terminate in Lebanon.
2. The holder shall not pick up or discharge at New York property or
mail destined for or originating at Frankfurt, Paris, or London.
3. Except as the Board may otherwise provide, with or without
hearing, by prior authorization, the holder shall not operate more
than four scheduled flights per week in each direction, with
narrow body aircraft or equivalent capacity.
4. The holder shall strive to comply with the condition that the
volume of New York cargo (i.e., loaded or unloaded at New York)
transported by the holder which is destined for and coming from
third countries shall bear a reasonable relationship to the volume
of New York cargo which is destined for and coming from Lebanon.
Any cargo which, within a period of 10 days, will be transported
to, or has been transported from, a point beyond Lebanon in an
aircraft of the holder, shall be considered to be destined for or
to be coming from a third country.
- 2 -
5. The holder shall not grant a boarding or delivery priority or
preference to the Arabian-American Oil Company (ARAMCO) or its
affiliates unless such service is available to all shippers at the
same rate or charge and, shall cancel any existing contract
provision with ARAMCO or its affiliates which is not available on
equal terms to all shippers.
6. In the event any practice develops which the Board regards as
inimical to fair competition, the holder and the Board will
consult, and will use their best efforts to agree upon
modifications which are satisfactory to the Board and the holder.
7. 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 during
the period this permit remains in effect, to which the United
States and Lebanon are or shall become parties.
This permit shall be effective on
, and shall terminate
three years later 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 effective date of any
treaty, convention, or agreement 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 or authorized by the
Government of Lebanon (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 (2) upon the effective date of any permit granted
by the Board to any other carrier designated or authorized by the
Government of Lebanon in lieu of the holder; or (3) upon the termination or
expiration of the Exchange of Notes, dated April 29, 1983, between the
Government of the United States and the Government of Lebanon (or in the
event of the termination, expiration, or amendment of any part of the
Exchange of Notes, the authority granted by this permit shall cease to the
extent of such termination, expiration, or amendment). However, clause (3)
of this paragraph shall not apply if 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 Lebanon are or shall
become parties.
The Civil Aeronautics Board, through its Secretary, has executed this
permit and affixed its seal on November 8, 1983.
PHYLLIS T. KAYLOR
Secretary
(SEAL)
ATTACHMENT
PERMIT TO FOREIGN AIR CARRIER
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 Board, 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 Board.
(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 Board.
*
*
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"ocrText": "Ronald Reagan Presidential Library\nDigital Library Collections\nThis is a PDF of a folder from our textual collections.\nCollection: Roberts, John G.: Files\nFolder Title: JGR/Civil Aviation Board Decisions\n(9 of 16)\nBox: 10\nTo see more digitized collections visit:\nhttps://reaganlibrary.gov/archives/digital-library\nTo see all Ronald Reagan Presidential Library inventories visit:\nhttps://reaganlibrary.gov/document-collection\nContact a reference archivist at: [email protected]\nCitation Guidelines: https://reaganlibrary.gov/citing\nNational Archives Catalogue: https://catalog.archives.gov/\nWITHDRAWAL SHEET\nRonald Reagan Library\nCollection Name\nWithdrawer\nRBW 8/30/2005\nFile Folder\nJGR/CIVIL AVIATION BOARD DECISIONS (9 OF 16)\nFOIA\nF05-139/01\nBox Number\nCOOK\n16RW\nDOC Doc Type\nDocument Description\nNo of Doc Date Restrictions\nCOPY Reagan Presidential Record\nNO\nPages\n1\nSUMMARY SUMMARY OF APPLICATION FOR\n1 8/1N/D983 B4\n492\nMINERVE (OPEN IN WHOLE)\n2\nSUMMARY SUMMARY OF APPLICATION FOR\n2 11/8/1983\nB4\n493\nTRANS-MEDITERRANEAN AIRWAYS\n(OPEN IN WHOLE)\nFreedom of Information Act - [5 U.S.C. 552(b)]\nB-1 National security classified information [(b)(1) of the FOIA]\nB-2 Release would disclose internal personnel rules and practices of an agency [(b)(2) of the FOIA]\nB-3 Release would violate a Federal statute [(b)(3) of the FOIA]\nB-4 Release would disclose trade secrets or confidential or financial information [(b)(4) of the FOIA]\nB-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA]\nB-7 Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA]\nB-8 Release would disclose information concerning the regulation of financial institutions [(b)(8) of the FOIA]\nB-9 Release would disclose geological or geophysical information concerning wells [(b)(9) of the FOIA]\nE.O. 13233\nC. Closed in accordance with restrictions contained in donor's deed of gift.\nTHE WHITE HOUSE\nWASHINGTON\nNovember 1, 1983\nMEMORANDUM FOR FRED F. FIELDING\nFROM:\nJOHN G. ROBERTSQYR\nSUBJECT:\nCivil Aeronautics Board Decision in\nMinerve, Compagnie Francaise de Transports\nAeriens, S.A.\nRichard Darman's office has asked for comments by close of\nbusiness Friday, November 4 on the above-referenced CAB\ndecision, which was submitted for Presidential review as\nrequired by § 801 (a) of the Federal Aviation Act of 1958, as\namended, 49 U.S.C. § 1461 (a). Under this section, the\nPresident may disapprove, solely on the basis of foreign\nrelations or national defense considerations, CAB actions\ninvolving either foreign air carriers or domestic carriers\ninvolved in foreign air transportation. If the President\nwishes to disapprove such CAB actions, he must do so within\nsixty days of submission (in this case, by November 7).\nThe order here has been reviewed by the appropriate depart-\nments and agencies, following the procedures established by\nExecutive Order No. 11920 (1976). OMB recommends that the\nPresident not disapprove, and reports that the NSC and the\nDepartments of State, Defense, Justice and Transportation\nhave not identified any foreign relations or national\ndefense reasons for disapproval. Since this order involves\na foreign carrier, the proposed letter from the President to\nthe CAB Chairman prepared by OMB omits the standard sentence\ndesigned to preserve availability of judicial review.\nThis order authorizes Minerve to engage in charger service\nbetween the United States and France, including Corsica.\nA memorandum for Darman is attached for your review and\nsignature.\nAttachment\nTHE WHITE HOUSE\nWASHINGTON\nNovember 1, 1983\nMEMORANDUM FOR RICHARD G. DARMAN\nASSISTANT TO THE PRESIDENT\nFROM:\nFRED F. FIELDING Orig. signed by FFF,\nCOUNSEL TO THE PRESIDENT\nSUBJECT:\nCivil Aeronautics Board Decision in\nMinerve, Compagnie Francaise de Transports\nAeriens, S.A.\nOur office has reviewed the above-referenced CAB decision\nand related materials and has no legal objection to the\nprocedure that was followed with respect to Presidential\nreview of such decisions under 49 U.S.C. § 1461 (a).\nWe also have no legal objection to OMB's recommendation that\nthe President not disapprove this order or to the substance\nof the letter from the President to the CAB Chairman\nprepared by OMB.\nFFF:JGR:aea 11/1/83\nCC: FFFielding/JGRoberts/Subj/Chron\nTHE WHITE HOUSE\nWASHINGTON\nNovember 1, 1983\nMEMORANDUM FOR RICHARD G. DARMAN\nASSISTANT TO THE PRESIDENT\nFROM:\nFRED F. FIELDING\nCOUNSEL TO THE PRESIDENT\nSUBJECT:\nCivil Aeronautics Board Decision in\nMinerve, Compagnie Francaise de Transports\nAeriens, S.A.\nOur office has reviewed the above-referenced CAB decision\nand related materials and has no legal objection to the\nprocedure that was followed with respect to Presidential\nreview of such decisions under 49 U.S.C. § 1461 (a).\nWe also have no legal objection to OMB's recommendation that\nthe President not disapprove this order or to the substance\nof the letter from the President to the CAB Chairman\nprepared by OMB.\nFFF:JGR:aea 11/1/83\nCC: FFFielding/JGRoberts/Subj/Chron\nID # 168055 CU\nWHITE HOUSE\nCORRESPONDENCE TRACKING WORKSHEET\no . OUTGOING\nH - INTERNAL\nI - INCOMING\nDate Correspondence\nReceived (YY/MM/DD)\n/ /\nName of Correspondent: Richard G. DARMAN\nMI Mail Report\nUser Codes: (A)\n(B)\n(C)\nSubject: CAB Decision : Minerve Compagnie\nFrancaise de Transports aeriens, SA.\nROUTE TO:\nACTION\nDISPOSITION\nTracking\nType\nCompletion\nAction\nDate\nof\nDate\nOffice/Agency\n(Staff Name)\nCode\nYY/MM/DD\nResponse\nCode YY/MM/DD\nWHOLL\nORIGINATOR 83/11/01\n11\n-\nReferral Note:\nWATI8\nD 83,11 ,01'\n5 831 11 / 010\nReferral Note:\n/ /\n/ /\nReferral Note:\n/ /\n11\n-\nI\nReferral Note:\n11\n11\nReferral Note:\nACTION CODES:\nDISPOSITION CODES:\nA - Appropriate Action\nI Info Copy Only/No Action Necessary\nA Answered\nC Completed\nC Comment/Recommendation\nR Direct Reply w/Copy\nB - Non-Special Referral\nS Suspended\nD Draft Response\nS For Signature\nF Furnish Fact Sheet\nX Interim Reply\nto be used as Enclosure\nFOR OUTGOING CORRESPONDENCE:\nType of Response = Initials of Signer\nCode = \"A\"\nCompletion Date = Date of Outgoing\nComments:\nKeep this worksheet attached to the original incoming letter.\nSend all routing updates to Central Reference (Room 75, OEOB).\nAlways return completed correspondence record to Central Files.\nRefer questions about the correspondence tracking system to Central Reference, ext. 2590.\n5/81\nDocument No. 16805555\nWHITE HOUSE STAFFING MEMORANDUM\nDATE: 10/31/83\nACTION/CONCURRENCE/COMMENT DUE BY: c.o.b. Friday, 11/4/83\nSUBJECT:\nCAB Decision: Minerve, Compagnie Francaise de Transports\nAeriens, S.A.\nACTION FYI\nACTION FYI\nVICE PRESIDENT\nHICKEY\nMEESE\nJENKINS\nBAKER\nMcFARLANE\nDEAVER\nMcMANUS\nSTOCKMAN\nMURPHY\nDARMAN\nP\nSS ROGERS\nDUBERSTEIN\nSPEAKES\nFELDSTEIN\nSVAHN\nFIELDING\nVERSTANDIG\nFULLER\nWHITTLESEY\nGERGEN\nHERRINGTON\nREMARKS:\nPlease provide comments/recommendations by c.o.b. Friday, November 4.\nThank you.\nRESPONSE:\nRichard G. Darman\nAssistant to the President\nExt. 2702\nOFFICE WTR OF THE PRESIDENT STATES UNITED a\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF MANAGEMENT AND BUDGET\nWASHINGTON, D.C. 20503\nOctober 31, 1983\nACTION\nMEMORANDUM FOR THE PRESIDENT\nSUBJECT: Civil Aeronautics Board Decision:\nMinerve, Compagnie Francaise\nde Transports Aeriens, S.A.\nDocket 41025\nDate due: November 7, 1983\nThe Civil Aeronautics Board proposes to take the following action\nwith regard to the above international air case:\n-- Issue an initial foreign air carrier permit to Minerve,\nCompagnie Francaise de transports Aeriens, S.A., for a\nperiod of five years, authorizing it to engage in charter\nforeign air transportation of persons and property\nbetween any point or points in France and Corsica and any\npoint or points in the United States.\nThe Departments of State, Defense, Justice, and Transportation\nand the National Security Council have not identified any foreign\npolicy or national defense reasons for disapproving the Board's\norder in whole or in part.\nThe Office of Management and Budget recommends that you approve\nthe Board's decision by signing the attached letter to the\nChairman which indicates that you do not intend to disapprove the\nBoard's order within the 60 days allowed by statute for your\nreview.\nConstana Hown\nConstance Horner\nAssociate Director\nEconomics and Government\nAttachments:\nCAB letter of transmittal\nCAB order\nLetter to the Chairman,\n2\nOptions and Implementation Actions:\n( )\n1) Approve the Board's order (DOS, DOD, DOJ, DOT, NSC,\nOMB) .\n-- Sign the attached letter to the Chairman.\n( )\n2)\nDisapprove the Board's order.\n-- Implementation materials to be prepared.\n( ) 3) See me.\nFOR OFFICIAL USE ONLY\nTHE CHAIRMAN\nSTATE\nOF THE\nCIVIL AERONAUTICS BOARD\nGREAT STATES of MARCH\nWASHINGTON, D. C. 20428\nB-11\nSEP 8 1983\nThe President\nThe White House\nWashington, D.C. 20500\nDear Mr. President:\nI transmit the Board's proposed order on the application of Minerve,\nCompagnie Francaise de Transports Aeriens, S.A., Docket 41025, for your\nconsideration under section 801(a) of the Federal Aviation Act of 1958, as\namended by the Airline Deregulation Act of 1978. The order will issue a\npermit to the applicant and adopt the Board's tentative decision in its Order\nto Show Cause 83-8-43 (enclosed) unless you disapprove it within 60 days of\nthis transmittal.\nIf you should decide earlier that you will not disapprove, please advise\nme to that effect; this will allow the earlier issuance of the authority.\nWe are submitting the proposed decision to you before publication under\nthe provisions of section 801(a) of the Federal Aviation Act of 1958. In\naccordance with Executive Order 11920, however, we plan to release all unclass-\nified portions of the decision on or after the sixth day following this\ntransmittal unless notified by your Assistant for National Security Affairs.\nRespectfully yours,\nDan Mckminan\nDan McKinnon\nEnclosures\nFOR OFFICIAL USE ONLY\nTHE WHITE HOUSE\nWASHINGTON\nDear Mr. Chairman:\nI have reviewed the order proposed by the Civil Aeronautics Board\nin the following case:\nMinerve, Compagnie Francaise\nde Transports Aeriens, S.A.\nDocket 41025\nI have decided not to disapprove the Board's order.\nSincerely,\nThe Honorable Dan McKinnon\nChairman\nCivil Aeronautics Board\nWashington, D.C. 20428\nFOR OFFICIAL USE ONLY\nUNITED STATES OF AMERICA\nCIVIL AERONAUTICS BOARD\nWASHINGTON, D.C.\nAdopted by the Civil Aeronautics Board\nat its office in Washington, D.C.\non the 7th day of September, 1983\nApplication of\n:\n:\nMINERVE, COMPAGNIE FRANCAISE\n:\nDocket 41025\nDE TRANSPORTS AERIENS, S.A.\n:\n:\nfor a foreign air carrier permit\n:\npursuant to section 402 of the Federal\n:\nAviation Act of 1958, as amended\n:\nORDER\nBy Order 83-8-43, adopted August 10, 1983, the Board directed\ninterested persons to show cause why the Board should not, subject to the\ndisapproval of the President, issue an initial foreign air carrier permit\nto Minerve, Compagnie Francaise de Transports Aeriens, S.A., for a period\nof five years, authorizing it to engage in charter foreign air\ntransportation of persons and property, as follows:\nBetween any point or points in France and Corsica\nand any point or points in the United States.\nThe order directed persons objecting to the Board's tentative\nfindings and conclusions set forth in that order, or to the issuance of\nthe proposed foreign air carrier permit, to file their objections within\n21 days. In addition, the order provided that in the event no objections\nwere filed, all further procedural steps would be deemed waived, and the\nSecretary would enter an order which (1) would make final the Board's\ntentative findings and conclusions, and (2) subject to the disapproval of\nthe President pursuant to section 801 (a) of the Act, would issue a foreign\nair carrier permit to Minerve in the specimen form attached.\nNo objections to Order 83-8-43 have been filed.\nOFFICIAL USE ONLY\n- 2 -\nACCORDINGLY,\n1. We make final our tentative findings and conclusions set forth in\nOrder 83-8-43;\n2. We are issuing a foreign air carrier permit in the form attached\nto Minerve, Compagnie Francaise de Transports Aeriens, S.A.;\n3. The Secretary of the Board shall sign the permit on our behalf\nand shall affix the seal of the Board; and\n4. Unless disapproved by the President of the United States under\nsection 801(a) of the Act, this order and the permit attached shall become\neffective on the 61st day after its submission to the President, 1/ or\nupon the date of receipt of advice from the President that he does not\nintend to disapprove the Board's order under that section, whichever is\nearlier.\nBy the Civil Aeronautics Board:\nPHYLLIS T. KAYLOR\nSecretary\n(SEAL)\nAll Members concurred.\nSEP 8 1983\n1/ This order was submitted to the President on\nThe 61st day is\n8 NOV 1983\nUNITED STATES OF AMERICA\nCIVIL AERONAUTICS BOARD\nWASHINGTON, D. C.\nPERMIT TO FOREIGN AIR CARRIER\nMINERVE, COMPAGNIE FRANCAISE DE TRANSPORTS AERIENS, S.A.\nis authorized, subject to the provisions set forth, the provisions of the\nFederal Aviation Act of 1958, as amended, and the orders, rules, and\nregulations of the Board to engage in charter foreign air transportation\nof persons and property, as follows:\nBetween any point or points in France and Corsica and\nany point or points in the United States.\nThe holder may engage in other charter flights in foreign air\ntransportation subject to the Board's regulations governing charters.\nThis permit and the exercise of the privileges granted in its shall\nbe subject to the terms, conditions, and limitations attached, and to the\nfollowing:\n1. In the event any practice develops which the Board\nregards inimical to fair competition, the holder and the\nBoard will consult and will use their best efforts to\nagree upon modifications satisfactory to the Board and\nthe holder.\n2. This permit shall be subject to all applicable pro-\nvisions of any treaty, convention, or agreement affecting\ninternational air transportation now in effect, or that\nmay become effective during the period the permit remains\nin effect, to which the United States and France shall be\nparties.\n3. The Board, by order or regulation, with or without\nhearing, may require advance approval of individual\ncharter trips conducted under the authority granted by\nthis permit, if it finds that such action is required in\nthe public interest.\n- 2 -\nThis permit shall be effective on\nand shall\n,\nterminate five years thereafter, except that it shall be subject to\ntermination at any time if the authority to conduct flight operations to\nand from France and/or Corsica granted by the Government of France is\ncancelled or restricted.\nThe Civil Aeronautics Board, through its Secretary, has executed this\npermit and affixed its seal on September 7, 1983.\nPHYLLIS T. KAYLOR\nSecretary\n(SEAL)\nATTACHMENT\nPERMIT TO FOREIGN AIR CARRIER\nThe holder's authority to conduct operations under the permit to which\nthis is attached shall also be subject to the following terms, conditions, and\nlimitations:\n(1) The holder shall keep on deposit with the Board a signed counterpart\nof CAB Agreement 18900, an agreement relating to liability limitations of the\nWarsaw Convention and the Hague Protocol approved by Board Order E-23680,\nMay 13, 1966, and a signed counterpart of any amendment or amendments to such\nagreement which may be approved by the Board and to which the holder becomes a\nparty.\n(2) The privileges granted by this permit are subject to the condition\nthat the foreign air carrier complies with the requirements for minimum\ninsurance coverage contained in 14 CFR 205.\n(3) By accepting this permit, the holder waives any right it may possess\nto assert any defense of sovereign immunity from suit in any action or pro-\nceeding instituted against the holder in any court or other tribunal in the\nUnited States (or its territories or possessions) based upon any claim arising\nout of operations by the holder under this permit.\n(4) The holder shall not operate any aircraft under the authority granted\nby this permit, unless the holder complies with operational safety requirements\nat least equivalent to Annex 6 of the Chicago Convention.\n(5) The holder shall conform to the airworthiness and airman competency\nrequirements prescribed by its home Government for international air service.\n(6) Except as specifically authorized by the Board, all flights to/from\nthe United States must originate or terminate in the holder's homeland.\n(7) The holder shall not provide the foreign air transportation authorized\nby this permit unless it holds a currently effective authorization from its\nGovernment for such operations and such document is on file with the Board.\n(8) The exercise of the privileges granted by this permit shall be subject\nto such other reasonable terms, conditions, and limitations required by the\npublic interest as may be prescribed by the Board.\n*\nOrder 83-8-43\nUNITED STATES OF AMERICA\nCIVIL AERONAUTICS BOARD\nWASHINGTON, D. C.\nAdopted by the Civil Aeronautics Board\nat its office in Washington, D.C.\non the 10th day of August, 1983\nApplication of\n:\n:\nMINERVE, COMPAGNIE FRANCAISE\n:\nDocket 41025\nDE TRANSPORTS AERIENS, S.A.\n:\n:\nfor a foreign air carrier permit\n:\npursuant to section 402 of the\n:\nFederal Aviation Act of 1958, as\n:\namended\n:\nSTATEMENT OF TENTATIVE FINDINGS AND CONCLUSIONS\nAND ORDER TO SHOW CAUSE\nBy application filed October 5, 1982, 1/ and noticed in the Federal\nRegister (47 FR 46348, October 18, 1982), Minerve, Compagnie. Francaise de\nTransports Aeriens, S.A., a French charter carrier, requests an initial\nforeign air carrier permit to engage in charter foreign air transportation\nof persons and property between \"Metropolitan France\" 2/ and New York, New\nYork, Miami, Florida, and New Orleans, Louisiana. 3/ On June 22, 1983,\n1/ The application received on that date was incomplete, and by Order\n82-10-68 we deferred further processing of the application until the\nmissing evidence required under Part 211 of our Economic Regulations was\nfurnished. We reserved the right to reject the application if Minerve had\nnot furnished the missing evidence by December 27, 1982. We received most,\nbut not all, of the missing evidence in a supplement to the application on\nDecember 22, 1982. On December 23, 1982, the attorney for Minerve\nrequested an extension until January 20, 1983, to complete the\napplication. Such request was granted on December 27, 1982, and further\nevidence was furnished on January 20, 1983, at which time the application\nwas complete.\n2/ In its supplement to the application, filed on December 22, 1982,\nMinerve clarified \"Metropolitan France\" to mean France plus Corsica.\n3/ By Order 83-2-7 in Docket 41041, we granted Minerve an exemption\nauthorizing charters of persons and property between Metropolitan France\nand New York, Miami and New Orleans. This authority will expire in one\nyear from the date of issue (February 2, 1983) or ninety days after the\nBoard submits an order to the President with respect to its decision in\nthis docket, whichever occurs first.\n- 3 -\nOwnership and Control\nMinerve was incorporated on August 8, 1975, under the laws of France.\nThe company states that it is privately owned and that all of its stock is\nheld by French citizens. The holder of the largest number of shares (31\npercent of the total) is Mr. Rene Ferdinand Meyer, a French citizen and the\npresident and general manager of the carrier. The applicant states that\nall of its officers, directors, and key management personnel are French\ncitizens, and none holds any stock or other interest in any U.S. or foreign\nair carrier or in any person engaged in the business of aeronautics.\nOperating History\nSince 1975, Minerve has operated passenger charters, primarily from\nFrance to the Mediterranean Basin area, the French West Indies, Peru, and\nKenya. Traffic has increased at an average annual râte of 47 percent from\n50,000 passengers in 1976 to 345,000 in 1981. The number of employees has\nincreased from 16 to 150. The carrier started with one Caravalle in 1976\nand acquired one more in each of the next three years. It added a Super\nCaravelle in 1980, a DC-8 in 1981, and another in 1982. (Revised Exhibit\n15)\nFinancial and Operating Fitness\nMinerve's current license was issued by the Government of France on\nDecember 29, 1982, and authorizes it to operate international passenger,\nfreight, and courier charter services utilizing its current equipment\nwithin Europe and the Mediterranean Basin area as well as Dakar, Senegal;\nMombassa, Kenya; Asuncion, Paraguay; and Lima, Peru. Minerve is further\nlicensed to conduct charter operations from the French West Indies and\nEurope (except France) to the United States and other named countries, as\nwell as between France and Corsica and the United States and to certain\nother non-U.S. points. Minerve is licensed to operate charter mail and\ncargo services on a worldwide basis. The license also permits certain\nother operations using small aircraft. (Revised Exhibit 9)\nNo French governmental assistance has been received or expected (page\n2 of application). The carrier had assets of $3.44 million at the end of\n1980 and $5.13 million at the end of 1981. The stockholders' equity was\nvalued at $152,000 at the end of 1980 and $233,000 at the end of 1981.\nMinerve sustained an operating loss of $70,000 for calendar year 1980 but\nachieved an operating profit of $103,000 for 1981. (Exhibit 14)\nDuring the last three years, Minerve has never been refused insurance\nor had it involuntarily cancelled, nor has it been refused debt financing,\ndefaulted on any transportation commitments, or failed to meet any current\nfinancial obligations. During the last five years, Minerve has had no\n- 5 -\nGrant of this authority will make possible new United States-France\ncharter services and add competition in the market.\nIn view of the foregoing and all the facts of record, we tentatively\nfind and conclude that:\n1. It is in the public interest to issue a foreign air carrier permit\nto Minerve, Compagnie Francaise de Transports Aeriens, S.A. in the specimen\nform attached, authorizing charter transportation of persons and property\nbetween any point or points in France and Corsica and any point or points\nin the United States;\n2. The public interest requires that the exercise of the privileges\ngranted by the permit shall be subject to the terms, conditions, and\nlimitations contained in the specimen permit attached to this order, and to\nsuch other reasonable terms, conditions, and limitations as we may\nprescribe;\n3. Minerve is fit, willing, and able properly to perform the\ntransportation described in the specimen permit and to conform to the\nprovisions of the Federal Aviation Act of 1958, as amended, and to our\nrules, regulations, and requirements;\n4. Minerve is substantially owned and effectively controlled by\ncitizens of France;\n5. The public interest does not require an oral evidentiary hearing\non the application;\n6. The proposed issuance of Minerve's foreign air carrier permit will\nnot constitute a \"major regulatory action\" under the Energy Policy and\nConservation Act of 1975, as defined in section 313.4(a) (1) of the Board's\nRegulations; 8/ and\n7. Except to the extent granted, the application of Minerve in\nDocket 41025 should be denied.\n8/ Our tentative finding is based on the fact that issuance of the\nproposed permit will not result in a near-term annual increase in fuel\nconsumption in excess of 10 million gallons.\n- 7 -\n7. We shall serve a copy of this order upon Minerve, Compagnie\nFrancaise de Transports Aeriens, S.A.; Dade County, Florida and the\nGreater Miami Traffic Association; Transamerica Airlines, Inc.; the\nAmbassador of France in Washington, D.C.; and the U.S. Departments of\nState and Transportation.\nWe shallpublish a summary of this order in the Federal Register.\nBy the Civil Aeronautics Board:\nPHYLLIS T. KAYLOR\nSecretary\n(SEAL)\nAll Members concurred.\nAttachment A\nSUMMARY OF APPLICATION\nHomeland Country: France\nReciprocity And Comity As Basis For Authority Sought: Yes -- Adequate\ncomity and reciprocity exist.\nHolds Government License For Authority Sought: Exhibit 9\nCOPY Reagan Presidential Record\nOperating History: Charter passenger operations since 1976 from France to\nthe Mediterranean Basin area, the French West Indies, Peru, and Kenya\nAircraft (All Owned): 2. DC-8-53, 4 Caravelle SE 210 VI, 1 Caravelle SE\n210 X 133 (\"Super Caravelle\")\nAircraft Maintenance Performed By: Aeronavali in Venice and Cargolux in\nLuxembourg for checks over 500 hours; Minerve in Toulouse, France for\nchecks 500 hours or less\nFinancial Indicators-- As Of:\nDec. 31, 1980\nDec. 31, 1981\n(000)\n(000)\nTotal Assets\n$ 3,438\n$ 5,128\nTotal Liabilities\n3,286\n4,895\nOwners' Equity-\n152\n233\nOperating Profit (Loss) 12-mos. ended\n(70)\n103\nMajority Ownership And Effective Control By Nationals Of: France\nInsurance Coverage: Meets requirements\nInsurance Refused Or Involuntarily Canceled During Last 3 Years: No\nRefused Debt Financing Last 3 Years: No\nDefaulted On Transportation Commitments Last 3 Years: No\nFailed To Meet Current Financial Obligations Last 3 Years: No\nSafety Or Traffic Violations During Last 5 Years: No\nSubscribes To Standard Permit Conditions Regarding Insurance And Annex 6\nOf Chicago Convention And C.A.B. Agreement 18900: Yes\nNear-term Annual Fuel Consumption Exceeds 10 Million Gallons: No\nSPECIMEN PERMIT\nUNITED STATES OF AMERICA\nCIVIL AERONAUTICS BOARD\nWASHINGTON, D. C.\nPERMIT TO FOREIGN AIR CARRIER\nMINERVE, COMPAGNIE FRANCAISE DE TRANSPORTS AERIENS, S.A.\nis authorized, subject to the provisions set forth, the provisions of the\nFederal Aviation Act of 1958, as amended, and the orders, rules, and\nregulations of the Board to engage in charter foreign air transportation\nof persons and property, as follows:\nBetween any point or points in France and Corsica and\nany point or points in the United States.\nThe holder may engage in other charter flights in foreign air\ntransportation subject to the Board's regulations governing charters.\nThis permit and the exercise of the privileges granted in its shall\nbe subject to the terms, conditions, and limitations attached, and to the\nfollowing:\n1. In the event any practice develops which the Board\nregards inimical to fair competition, the holder and the\nBoard will consult and will use their best efforts to\nagree upon modifications satisfactory to the Board and\nthe holder.\n2. This permit shall be subject to all applicable pro-\nvisions of any treaty, convention, or agreement affecting\ninternational air transportation now in effect, or that\nmay become effective during the period the permit remains\nin effect, to which the United States and France shall be\nparties.\n3. The Board, by order or regulation, with or without\nhearing, may require advance approval of individual\ncharter trips conducted under the authority granted by\nthis permit, if it finds that such action is required in\nthe public interest.\nATTACHMENT\nPERMIT TO FOREIGN AIR CARRIER\nThe holder's authority to conduct operations under the permit to which\nthis is attached shall also be subject to the following terms, conditions, and\nlimitations:\n(1) The holder shall keep on deposit with the Board a signed counterpart\nof CAB Agreement 18900, an agreement relating to liability limitations of the\nWarsaw Convention and the Hague Protocol approved by Board Order E-23680,\nMay 13, 1966, and a signed counterpart of any amendment or amendments to such\nagreement which may be approved by the Board and to which the holder becomes a\nparty.\n(2) The privileges granted by this permit are subject to the condition\nthat the foreign air carrier complies with the requirements for minimum\ninsurance coverage contained in 14 CFR 205.\n(3) By accepting this permit, the holder waives any right it may possess\nto assert any defense of sovereign immunity from suit in any action or pro-\nceeding instituted against the holder in any court or other tribunal in the\nUnited States (or its territories or possessions) based upon any claim arising\nout of operations by the holder under this permit.\n(4) The holder shall not operate any aircraft under the authority granted\nby this permit, unless the holder complies with operational safety requirements\nat least equivalent to Annex 6 of the Chicago Convention.\n(5) The holder shall conform to the airworthiness and airman competency\nrequirements prescribed by its home Government for international air service.\n(6) Except as specifically authorized by the Board, all flights to/from\nthe United States must originate or terminate in the holder's homeland.\n(7) The holder shall not provide the foreign air transportation authorized\nby this permit unless it holds a currently effective authorization from its\nGovernment for such operations and such document is on file with the Board.\n(8) The exercise of the privileges granted by this permit shall be subject\nto such other reasonable terms, conditions, and limitations required by the\npublic interest as may be prescribed by the Board.\n*\n*\n*\nTHE WHITE HOUSE\nWASHINGTON\nDecember 23, 1983\nMEMORANDUM FOR FRED F. FIELDING\nFROM:\nJOHN G. ROBERTS\n&\nSUBJECT:\nCivil Aeronautics Board Decisions in\nAeroperu; Aeronaves del Peru; Compania\nde Aviacion \"Faucett\"\nRichard Darman's office has asked for comments by\nJanuary 5 on the above-referenced CAB decisions, which\nwere submitted for Presidential review as required by\nS 801 (a) of the Federal Aviation Act of 1958, as amended,\n49 U.S.C. § 1461 (a). Under this section, the President\nmay disapprove, solely on the basis of foreign relations or\nnational defense considerations, CAB actions involving\neither foreign air carriers or domestic carriers involved in\nforeign air transportation. If the President wishes to\ndisapprove such CAB actions, he must do so within sixty days\nof submission (in these cases, by January 22, 1984).\nThe orders here have been reviewed by the appropriate\ndepartments and agencies, following the procedures\nestablished by Executive Order No. 11920 (1976). OMB\nrecommends that the President not disapprove, and reports\nthat the NSC and the Departments of State, Defense, Justice\nand Transportation have not identified any foreign relations\nor national defense reasons for disapproval. Since these\norders involve foreign carriers, the proposed letter from\nthe President to the CAB Chairman prepared by OMB omits the\nstandard sentence designed to preserve availability of\njudicial review.\nThese orders deny all pending applications by Peruvian\ncarriers, in response to Peru's recent renunciation of the\nU.S.-Peru Air Transport Services Agreement. The Board hopes\nto use these orders as a bargaining chip in negotiations\nwith Peru scheduled for January 1984.\nA memorandum for Darman is attached for your review and\nsignature.\nAttachment\nTHE WHITE HOUSE\nWASHINGTON\nDecember 23, 1983\nMEMORANDUM FOR RICHARD G. DARMAN\nASSISTANT TO THE PRESIDENT\nFROM:\nFRED F. FIELDING Orig. signed by FFF\nCOUNSEL TO THE PRESIDENT\nSUBJECT:\nCivil Aeronautics Board Decisions in\nAeroperu; Aeronaves del Peru; Compania\nde Aviacion \"Faucett\"\nOur office has reviewed the above-referenced CAB decisions\nand related materials, and has no legal objection to the\nprocedure that was followed with respect to Presidential\nreview of such decisions under 49 U.S.C. § 1461 (a).\nWe also have no legal objection to OMB's recommendation that\nthe President not disapprove these orders or to the\nsubstance of the letter from the President to the CAB\nChairman prepared by OMB.\nFFF: JGR:aea 12/23/83\nCC: FFFielding/JGRoberts/Subj/Chron\nTHE WHITE HOUSE\nWASHINGTON\nDecember 23, 1983\nMEMORANDUM FOR RICHARD G. DARMAN\nASSISTANT TO THE PRESIDENT\nFROM:\nFRED F. FIELDING\nCOUNSEL TO THE PRESIDENT\nSUBJECT:\nCivil Aeronautics Board Decisions in\nAeroperu; Aeronaves del Peru; Compania\nde Aviacion \"Faucett\"\nOur office has reviewed the above-referenced CAB decisions\nand related materials, and has no legal objection to the\nprocedure that was followed with respect to Presidential\nreview of such decisions under 49 U.S.C. § 1461 (a).\nWe also have no legal objection to OMB's recommendation that\nthe President not disapprove these orders or to the\nsubstance of the letter from the President to the CAB\nChairman prepared by OMB.\nFFF:JGR:aea 12/23/83\nCC: FFFielding/JGRoberts/Subj/Chron\nID # 168507\nCU\nWHITE HOUSE\nCORRESPONDENCE TRACKING WORKSHEET\no OUTGOING\nH INTERNAL\nI . INCOMING\nDate Correspondence\nReceived (YY/MM/DD)\n/\n/\nName of Correspondent:\nRichard G. DARMAN\nMI Mail Report\nUser Codes: (A)\n(B)\n(C)\nSubject: CAB Decision rc: aeroperu; ; aeronaves del\nPeru, ; Compania de aviacion \"Faucett\"\nROUTE TO:\nACTION\nDISPOSITION\nTracking\nType\nCompletion\nAction\nDate\nof\nDate\nOffice/Agency\n(Staff Name)\nCode\nYY/MM/DD\nResponse\nCode\nYY/MM/DD\nCUHOLL\nORIGINATOR 83,12,22\n/ /\nReferral Note:\nCUAT18\nD\n83/12/22\n584,01,05\nReferral Note:\n/ /\n/ /\n-\nReferral Note:\n/ /\n/ /\n-\n-\nReferral Note:\n/ /\n/ /\n-\nReferral Note:\nACTION CODES:\nDISPOSITION CODES:\nA Appropriate Action\nI . Info Copy Only/No Action Necessary\nA Answered\nC Completed\nC Comment/Recommendation\nR. Direct Reply w/Copy\nB * Non-Special Referral\nS Suspended\nD. Draft Response\nS. For Signature\nF - Furnish Fact Sheet\nX. Interim Reply\nto be used as Enclosure\nFOR OUTGOING CORRESPONDENCE:\nType of Response = Initials of Signer\nCode = \"A\"\nCompletion Date = Date of Outgoing\nComments:\nKeep this worksheet attached to the original incoming letter.\nSend all routing updates to Central Reference (Room 75, OEOB).\nAlways return completed correspondence record to Central Files.\nRefer questions about the correspondence tracking system to Central Reference, ext. 2590.\n5/81\nDocument No.\n168507SS\nWHITE HOUSE STAFFING MEMORANDUM\nDATE:\n12/22/83\nACTION/CONCURRENCE/COMMENT DUE BY:\n1/5/84\nSUBJECT: CAB DECISION RE: AEROPERU; AERONAVES DEL PERU; COMPANIA DE AVIACION\n\"FAUCETT\"\nACTION FYI\nACTION FYI\nVICE PRESIDENT\nJENKINS\nMEESE\nMcFARLANE\nBAKER\nMcMANUS\nDEAVER\nMURPHY\nSTOCKMAN\nOGLESBY\nDARMAN\nP\nSS ROGERS\nFELDSTEIN\nSPEAKES\nFIELDING\nSVAHN\nFULLER\nVERSTANDIG\nGERGEN\nWHITTLESEY\nHERRINGTON\nHICKEY\nREMARKS:\nMay we have your comments on the attached by Thursday, January 5.\nThank you.\nRESPONSE:\n1983 DEC 22 AM II: 28\nRichard G. Darman\nAssistant to the President\nExt. 2702\nSTATE / EXECUTIVE UNITED OFFICE FRESDENN\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF MANAGEMENT AND BUDGET\nWASHINGTON, D.C. 20503\nDEC 21 1983\nACTION\nMEMORANDUM FOR:\nASSISTANT TO THE PRESIDENT\nAND DEPUTY TO THE CHIEF OF STAFF\nSUBJECT:\nCivil Aeronautics Board Decisions\nAeroPeru (Empresa de\nAeronaves del Peru, S.A.\nTransportes Aereo del Peru)\nDocket 26637\nDockets 32945, 33546, 34168\nDate due: January 22, 1984\nDate due: January 22, 1984\nAeronaves del Peru, S.A.\nCompania de Aviacion \"Faucett,\"\nDocket 40850\nS.A.\nDate due: January 22, 1984\nDockets 35755, 32089\nDate due: January 22, 1984\nYou will find attached a memorandum for the President about the\nabove international aviation cases. The interested executive\nagencies have reviewed the Board's decisions and have no\nobjection to the proposed orders.\nThese are routine, noncontroversial matters. No foreign policy\nor national defense reasons for disapproving the Board's orders\nhave been identified. I recommend that the President sign the\nattached letter to the Chairman which indicates that he does not\nintend to disapprove the Board's orders within the 60 days\nallowed by statute. Otherwise, the Board's orders become final\non the 61st day.\nYou should also be aware that the Board has requested that the\nPresident review these cases on an expedited basis. The Board\nhopes to use the decisions as a bargaining tool in air transport\nnegotiations with Peru, scheduled for January 1984.\nOriginal signed by\nConstance Horner\nConstance Horner\nAssociate Director\nEconomics and Government\nAttachments:\nMemorandum to the President\nCAB letters of transmittal\nCAB orders\nLetter to the Chairman\n/ STREUTIVE UNITED OFFICE FRESDEND\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF MANAGEMENT AND BUDGET\nWASHINGTON, D.C. 20503\nDEC 21 1983\nACTION\nMEMORANDUM FOR THE PRESIDENT\nSUBJECT:\nCivil Aeronautics Board Decisions:\nAeroPeru (Empresa de\nAeronaves del Peru, S.A.\nTransportes Aereo del Peru)\nDocket 26637\nDockets 32945, 33546, 34168\nDate due: January 22, 1984\nDate due: January 22, 1984\nAeronaves del Peru, S.A.\nCompania de Aviacion \"Faucett,\"\nDocket 40850\nS.A.\nDate due: January 22, 1984\nDockets 35755, 32089\nDate due: January 22, 1984\nThe Civil Aeronautics Board proposes to take the following\nactions with regard to the above international air cases:\n-- Deny all pending permit renewal or amendment applications\nof AeroPeru, Aeronaves del Peru, S.A., and Compania de\nAviacion \"Faucett,\" S.A. The Board's action is a measured\nresponse to Peru's renunciation of the U.S.-Peru Air\nTransport Services Agreement. The Board believes that\nthis action will aid the United States in negotiations\nwith Peru, scheduled for January 1984, over a new\nagreement.\nThe Departments of State, Defense, Justice, and Transportation\nand the National Security Council have not identified any foreign\npolicy or national defense reasons for disapproving the orders in\nwhole or in part.\nThe Office of Management and Budget recommends that you approve\nthe Board's decisions by signing the attached letter to the\nChairman which indicates that you do not intend to disapprove the\nBoard's orders within the 60 days allowed by statute for your\nreview.\nsignal signed by\nConstance Horner\nConstance Horner\nAssociate Director\nEconomics and Government\n2\nAttachments:\nCAB letters of transmittal\nCAB orders\nLetter to the Chairman\nOptions and Implementation Actions:\n( ) 1) Approve the Board's orders (DOS, DOD,\nDOJ, DOT, NSC, OMB) .\n-- Sign the attached letter to the Chairman.\n( ) 2) Disapprove the Board's orders.\n-- Implementation materials to be prepared.\n( ) 3) See me.\nTHE WHITE HOUSE\nWASHINGTON\nDear Mr. Chairman:\nI have reviewed the orders proposed by the Civil Aeronautics\nBoard in the following cases:\nAeroPeru (Empresa de\nAeronaves del Peru, S.A.\nTransportes Aereo del Peru)\nDocket 26637\nDockets 32945, 33546, 34168\nAeronaves del Peru, S.A.\nCompania de Aviacion \"Faucett,\"\nDocket 40850\nS.A.\nDockets 35755, 32089\nI have decided not to disapprove the Board's orders.\nSincerely,\nThe Honorable Dan McKinnon\nChairman\nCivil Aeronautics Board\nWashington, D.C. 20428\nFOR OFFICIAL USE ONLY\nUNITED STATES OF AMERICA\nCIVIL AERONAUTICS BOARD\nWASHINGTON, D. C.\nAdopted by the Civil Aeronautics Board\nat its office in Washington, D. C.\non the 23rd day of November, 1983\nApplications of\n:\n:\nAEROPERU (EMPRESA DE\n:\nDockets 32945\nTRANSPORTES AEREO DEL PERU)\n:\n33546\n:\n34168\nfor renewal and amendment of its foreign\n:\nair carrier permit pursuant to\n:\nsection 402 of the Federal Aviation\n:\nAct of 1958, as amended\n:\n:\n:\nApplication of\n:\n:\nAERONAVES DEL PERU, S.A.\n:\nDocket 26637\n:\nfor amendment and renewal of its\n:\nforeign air carrier permit pursuant to\n:\nsection 402 of the Federal Aviation Act\n:\nof 1958, as amended\n:\n:\nApplication of\n:\n:\nAERONAVES DEL PERU, S.A.\n:\nDocket 40850\n:\nfor a foreign air carrier\n:\npermit pursuant to section\n:\n402 of the Federal Aviation\n:\nAct of 1958, as amended\n:\n:\n:\nApplications of\n:\n:\nCOMPANIA DE AVIACION \"FAUCETT,\" S.A.\n:\nDockets 35755\n:\n32089\nfor amendment and renewal of its foreign\n:\nair carrier permit pursuant to section\n:\n402 of the Federal Aviation Act of 1958,\n:\nas amended\n:\nFOR OFFICIAL USE ONLY\n- 2 -\nFINAL ORDER\nIntroduction\nBy Order 83-11-56, we tentatively decided to deny all pending\npermit renewal or amendment applications of AeroPeru (Empresa de\nTransportes Aereo del Peru), Aeronaves del Peru, S.A., and Compania de\nAviacion \"Faucett,\" S.A. We directed all interested persons to show cause\nwhy we should not issue an order making final our tentative findings and\nconclusions, and allowed such persons until 12:00 noon November 18, 1983,\nto file comments in response to our show-cause order.\nAeronaves and Faucett filed responses to our order. Aeronaves urges\nthe Board to defer consideration of the applications until the conclusion\nof negotiations between the United States and Peru. The carrier suggests\nthat our proposed action is inconsistent with the public interest because\nit may impede the resumption of normal aviation relations between the\nUnited States and Peru.\nFaucett requests that instead of denying its applications, the Board\nsuspend action on them, or alternatively, dismiss them without prejudice\nto their reinstatement at such time as a new air transport agreement\nbetween the United States and Peru becomes effective. In support of its\nrequest, Faucett states that denial of its applications presumes a finding\nby the Board that grant of each application would be inconsistent with the\npublic interest. Faucett asserts that there is no record upon which such\na finding could be made and that the Board's decision in Order 83-11-49 to\nallow Faucett and the other Peruvian carriers to continue their existing\nservice under temporary exemption authority supports the conclusion that\nat least that service remains in the public interest. Although Faucett\nconcedes that the lack of an underlying bilateral treaty removes all\nbasis for granting the pending applications, it asserts, on the other\nhand, that the lack of a treaty does not require the denial of those\napplications.\nDecision\nWe have decided to make final our tentative findings and conclusions\nand to issue an order denying the pending permit applications of AeroPeru,\nAeronaves and Faucett.\n- 3 -\nAeronaves' and Faucett's permit authority were based on the terms of\nthe U.S.-Peru Air Transport Services Agreement. That authority terminated\nautomatically upon termination of the Agreement on November 11, 1983.\nThus, the Peruvian carriers' pending permit applications request renewal\nand amendment of permit authority which no longer exists. As Faucett\nitself recognizes, no basis exists for granting these pending\napplications. Under these circumstances, preservation of the applications\nwould serve no purpose, and denial is in order.\nMoreover, we indicated clearly in Order 83-11-49 that because of\nPeru's renunciation of the Agreement, it was consistant with the public\ninterest to consider all Peruvian carrier requests for operating authority\nde novo, based on principles of comity and reciprocity. We also indicated\nthat it was consistent with the public interest to transform the regime of\nU.S.-Peru aviation relations into one where all Peruvian carriers would\nhold new temporary authorizations. Nothing in the pleadings causes us to\nalter our tentative findings and conclusions. Against this background,\ndenial of pending permit applications is fully consistent with the public\ninterest.\nACCORDINGLY,\n1. We make final our tentative findings and conclusions in Order\n83-11-56;\n2. We deny AeroPeru's applications in Dockets 32945, 33546 and\n34168; Aeronaves' applications in Dockets 26637 and 40850; and Faucett's\napplications in Dockets 26637, 32089 and 35755;\n3. Unless disapproved by the President. of the United States under\nsection 801 (a) of the Act, this order shall become effective on the 61st\nday after its submission to the President or upon the date of receipt of\nadvice from the President that he does not intend to disapprove the\nBoard's order under that section, whichever is earlier; 1;' and\n4. We will serve this order upon AeroPeru (Empresa de Transportes\nAereo del Peru), Aeronaves del Peru, S.A., Compania de Aviacion \"Faucett,\"\nS.A., Challenge Air Transport, Inc., Eastern Air Lines, Inc., the\nAmbassador of Peru in Washington, D.C., and the United States Departments\nof State and Transportation.\nBy the Civil Aeronautics Board:\nPHYLLIS T. KAYLOR\nSecretary\n(SEAL)\nAll Members concurred.\n1/ This letter was submitted to the President on NOV 23 1983\nThe 61st day is JAN 23 1984\nTHE WHITE HOUSE\nWASHINGTON\nDecember 27, 1983\nMEMORANDUM FOR FRED F. FIELDING\nFROM:\nJOHN G. ROBERTS\n23R\nSUBJECT:\nCivil Aeronautics Board Decision in\nTrans-Mediterranean Airways\nRichard Darman's office has asked for comments by\nDecember 27 on the above-referenced CAB decision, which\nwas submitted for Presidential review as required by\n§ 801 (a) of the Federal Aviation Act of 1958, as amended,\n49 U.S.C. § 1461 (a). Under this section, the President\nmay disapprove, solely on the basis of foreign relations or\nnational defense considerations, CAB actions involving\neither foreign air carriers or domestic carriers involved in\nforeign air transportation. If the President wishes to\ndisapprove such CAB actions, he must do so within sixty days\nof submission (in this case, by January 9, 1984).\nThe order here has been reviewed by the appropriate depart-\nments and agencies, following the procedures established by\nExecutive Order No. 11920 (1976). OMB recommends that the\nPresident not disapprove, and reports that the NSC and the\nDepartments of State, Defense, Justice and Transportation\nhave not identified any foreign relations or national\ndefense reasons for disapproval. Since this order involves\na foreign carrier, the proposed letter from the President to\nthe CAB Chairman prepared by OMB omits the standard sentence\ndesigned to preserve availability of judicial review.\nThis order authorizes service by the named carrier between\nLebanon and New York, with seven intermediate points in\nEurope. OMB describes the order as a \"routine, noncon-\ntroversial matter.\"\nA memorandum for Darman is attached for your review and\nsignature.\nAttachment\nTHE WHITE HOUSE\nWASHINGTON\nDecember 27, 1983\nMEMORANDUM FOR RICHARD G. DARMAN\nASSISTANT TO THE PRESIDENT\nFROM:\nFRED F. FIELDING 15/\nCOUNSEL TO THE PRESIDENT\nSUBJECT:\nCivil Aeronautics Board Decision in\nTrans-Mediterranean Airways\nOur office has reviewed the above-referenced CAB decision\nand related materials, and has no legal objection to the\nprocedure that was followed with respect to Presidential\nreview of such decisions under 49 U.S.C. § 1461 (a).\nWe also have no legal objection to OMB's recommendation that\nthe President not disapprove this order or to the substance\nof the letter from the President to the CAB Chairman\nprepared by OMB.\nFFF:JGR:aea 12/27/83\nCC: FFFielding/JGRoberts/Subj/Chron\nID #\nCU\nWHITE HOUSE\nCORRESPONDENCE TRACKING WORKSHEET\no OUTGOING\nH INTERNAL\nI * INCOMING\nDate Correspondence\nReceived (YY/MM/DD)\n/\n/\nName of Correspondent:\nRichard G. DARMAN\nMI Mail Report\nUser Codes: (A)\n(B)\n(C)\nSubject:\nCAB Decisure rc: Trans- Mediterranean\nairways\nROUTE TO:\nACTION\nDISPOSITION\nTracking\nType\nCompletion\nAction\nDate\nof\nDate\nOffice/Agency\n(Staff Name)\nCode\nYY/MM/DD\nResponse\nCode\nYY/MM/DD\nCUISOLL\nORIGINATOR 83,12,23\n/\n/\nReferral Note:\nCNATIB\n7\n83/12/23\n5 83,12,23\nReferral Note:\n/ /\n/ /\n-\nReferral Note:\n/ /\n/ /\n-\nReferral Note:\n1.1\n/ /\nReferral Note:\nACTION CODES:\nDISPOSITION CODES:\nA - Appropriate Action\nI - Info Copy Only/No Action Necessary\nA Answered\nC Completed\nC Comment/Recommendation\nR - Direct Reply w/Copy\nB Non-Special Referral\nS Suspended\nD Draft Response\nS For Signature\nF Furnish Fact Sheet\nX Interim Reply\nto be used as Enclosure\nFOR OUTGOING CORRESPONDENCE:\nType of Response = Initials of Signer\nCode = \"A\"\nCompletion Date = Date of Outgoing\nComments:\nKeep this worksheet attached to the original incoming letter.\nSend all routing updates to Central Reference (Room 75, OEOB).\nAlways return completed correspondence record to Central Files.\nRefer questions about the correspondence tracking system to Central Reference, ext. 2590.\n5/81\nDocument No.\n168514SS\nTOR\nWHITE HOUSE STAFFING MEMORANDUM\nDATE:\n12/22/83\nACTION/CONCURRENCE/COMMENT DUE BY:\n12/27/83\nSUBJECT:\nCAB DECISION RE TRANS-MEDITERRANEAN AIRWAYS\nACTION FYI\nACTION FYI\nVICE PRESIDENT\nJENKINS\nMEESE\nMcFARLANE\nBAKER\nMcMANUS\nDEAVER\nMURPHY\nSTOCKMAN\nOGLESBY\nDARMAN\nP\nSS ROGERS\nFELDSTEIN\nSPEAKES\nFIELDING\nSVAHN\nFULLER\nVERSTANDIG\nGERGEN\nWHITTLESEY\nHERRINGTON\nHICKEY\nREMARKS:\nMay we have your comments on the attached by December 27. Thank you.\nRESPONSE:\nRichard G. Darman\nAssistant to the President\nExt. 2702\nOFFICE PRESIDENT SERVICE UNITED\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF MANAGEMENT AND BUDGET\nWASHINGTON, D.C. 20503\nDEC 22 1983\nACTION\nMEMORANDUM FOR: ASSISTANT TO THE PRESIDENT\nAND DEPUTY TO THE CHIEF OF STAFF\nSUBJECT:\nCivil Aeronautics Board Decision:\nTrans-Mediterranean Airways, S.A.L.\nDocket 41488\nDate due: January 9, 1984\nYou will find attached a memorandum for the President about the\nabove international aviation case. The interested executive\nagencies have reviewed the Board's decision and have no objection\nto the proposed order.\nThis is a routine, noncontroversial matter. No foreign policy or\nnational defense reasons for disapproving the Board's order have\nbeen identified. I recommend that the President sign the\nattached letter to the Chairman which indicates that he does not\nintend to disapprove the Board's order within the 60 days allowed\nby statute. Otherwise, the Board's order becomes final on the\n61st day.\nOriginal signed by\nConstance Horner\nConstance Horner\nAssociate Director\nEconomics and Government\nAttachments:\nMemorandum to the President\nCAB letter of transmittal\nCAB order\nLetter to the Chairman\nWTR\nPRESIDENT\nOFFICE\nEXECUTIVE OFFICE OF THE PRESIDENT\nSTENUTIVE\nUNITED\nOFFICE OF MANAGEMENT AND BUDGET\nSTATE\nWASHINGTON, D.C. 20503\nDEC 22 1983\nACTION\nMEMORANDUM FOR THE PRESIDENT\nSUBJECT: Civil Aeronautics Board Decision:\nTrans-Mediterranean Airways, S.A.L.\nDocket 41488\nDate due: January 9, 1983\nThe Civil Aeronautics Board proposes to take the following action\nwith regard to the above international air case:\n-- Amend and renew the foreign air carrier permit of\nTrans-Mediterranean Airways, S.A.L., to authorize\nscheduled and charter air service of property and mail\nbetween a point or points in Lebanon, seven intermediate\npoints in Western Europe, and the terminal point of\nNew York, New York.\nThe Departments of State, Defense, Justice, and Transportation\nand the National Security Council have not identified any foreign\npolicy or national defense reasons for disapproving the Board's\norder in whole or in part.\nThe Office of Management and Budget recommends that you approve\nthe Board's decision by signing the attached letter to the\nChairman which indicates that you do not intend to disapprove the\nBoard's order within the 60 days allowed by statute for your\nreview.\nOriginal signed by\nConstance Horner\nConstance Horner\nAssociate Director\nEconomics and Government\nAttachments:\nCAB letter of transmittal\nCAB order\nLetter to the Chairman\n2\nOptions and Implementation Actions:\n(\n)\n1) Approve the Board's order (DOS, DOD, DOJ, DOT, NSC,\nOMB) .\n-- Sign the attached letter to the Chairman.\n(\n)\n2)\nDisapprove the Board's order.\n-- Implementation materials to be prepared.\n( ) 3) See me.\nTHE WHITE HOUSE\nWASHINGTON\nDear Mr. Chairman:\nI have reviewed the order proposed by the Civil Aeronautics Board\nin the following case:\nTrans-Mediterranean Airways, S.A.L.\nDocket 41488\nI have decided not to disapprove the Board's order.\nSincerely,\nThe Honorable Dan McKinnon\nChairman\nCivil Aeronautics Board\nWashington, D.C. 20428\nOFFICE PRESIDENT SERVICE UNITED\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF management AND BUDGET\nWASHINGTON, D.C. 20503\nDEC 22 1983\nACTION\nMEMORANDUM FOR: ASSISTANT TO THE PRESIDENT\nAND DEPUTY TO THE CHIEF OF STAFF\nSUBJECT:\nCivil Aeronautics Board Decision:\nTrans-Mediterranean Airways, S.A.L.\nDocket 41488\nDate due: January 9, 1984\nYou will find attached a memorandum for the President about the\nabove international aviation case. The interested executive\nagencies have reviewed the Board's decision and have no objection\nto the proposed order.\nThis is a routine, noncontroversial matter. No foreign policy or\nnational defense reasons for disapproving the Board's order have\nbeen identified. I recommend that the President sign the\nattached letter to the Chairman which indicates that he does not\nintend to disapprove the Board's order within the 60 days allowed\nby statute. Otherwise, the Board's order becomes final on the\n61st day.\nOriginal signed by\nConstance Horner\nConstance Horner\nAssociate Director\nEconomics and Government\nAttachments:\nMemorandum to the President\nCAB letter of transmittal\nCAB order\nLetter to the Chairman\nOFFICE PRESIDENT STATE UNITED\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF management AND BUDGET\nWASHINGTON, D.C. 20503\nDEC 22 1983\nACTION\nMEMORANDUM FOR THE PRESIDENT\nSUBJECT: Civil Aeronautics Board Decision:\nTrans-Mediterranean Airways, S.A.L.\nDocket 41488\nDate due: January 9, 1983\nThe Civil Aeronautics Board proposes to take the following action\nwith regard to the above international air case:\n-- Amend and renew the foreign air carrier permit of\nTrans-Mediterranean Airways, S.A.L., to authorize\nscheduled and charter air service of property and mail\nbetween a point or points in Lebanon, seven intermediate\npoints in Western Europe, and the terminal point of\nNew York, New York.\nThe Departments of State, Defense, Justice, and Transportation\nand the National Security Council have not identified any foreign\npolicy or national defense reasons for disapproving the Board's\norder in whole or in part.\nThe Office of Management and Budget recommends that you approve\nthe Board's decision by signing the attached letter to the\nChairman which indicates that you do not intend to disapprove the\nBoard's order within the 60 days allowed by statute for your\nreview.\nOriginal signed by\nConstance Homer\nConstance Horner\nAssociate Director\nEconomics and Government\nAttachments:\nCAB letter of transmittal\nCAB order\nLetter to the Chairman\n2\nOptions and Implementation Actions:\n(\n) 1) Approve the Board's order (DOS, DOD, DOJ, DOT, NSC,\nOMB) .\n---- Sign the attached letter to the Chairman.\n( )\n2)\nDisapprove the Board's order.\n- Implementation materials to be prepared.\n( ) 3) See me.\nTHE WHITE HOUSE\nWASHINGTON\nDear Mr. Chairman:\nI have reviewed the order proposed by the Civil Aeronautics Board\nin the following case:\nTrans-Mediterranean Airways, S.A.L.\nDocket 41488\nI have decided not to disapprove the Board's order.\nSincerely,\nThe Honorable Dan McKinnon\nChairman\nCivil Aeronautics Board\nWashington, D.C. 20428\nFOR OFFICIAL USE ONLY\nUNITED STATES OF AMERICA\nCIVIL AERONAUTICS BOARD\nWASHINGTON, D. C.\nAdopted by the Civil Aeronautics Board\nat its office in Washington, D.C.\non the 8th day of November, 1983\nApplication of\n:\n:\nTRANS-MEDITERRANEAN AIRWAYS, S.A.L.\n:\nDocket 41488\n:\nfor amendment and renewal of its foreign\n:\nair carrier permit under section 402 of the\n:\nFederal Aviation Act of 1958, as amended\n:\nORDER ISSUING FOREIGN AIR CARRIER PERMIT\nBackground\nTrans-Mediterranean Airways, S.A.L., (TMA), a Lebanese carrier,\ncurrently holds a three-year foreign air carrier permit, by Order\n80-5-147 effective May 21, 1980. The permit authorizes TMA to conduct\nscheduled Lebanon-New York City service, carrying property and mail, via\nseven European intermediate points, 1/ and to operate cargo charters under\nour charter regulations. 2/\nTMA's permit contains, among others, the following three terms,\nconditions, and limitations: (1) TMA shall not operate more than seven\nscheduled flights per week in each direction; (2) the volume of TMA's cargo\nloaded or unloaded at New York, which is destined for and coming from third\ncountries, shall bear a \"reasonable relationship\" to the volume of its New\nYork-Lebanon cargo--any cargo which, within ten days, will be transported\nto, or has been transported from, a point beyond Lebanon in TMA aircraft,\nis considered to be destined for or coming from a third country (the\n\"ten-day\" restriction); and (3) TMA shall not grant a boarding or delivery\npriority or preference to the Arabian-American Oil Company (ARAMCO) or its\naffiliates, unless such service is available to all shippers at the same\nrate or charge, and shall cancel any existing contract provision with\nARAMCO or its affiliates, which is not available on equal terms to all\nshippers (the \"ARAMCO\" restriction).\n1/ The seven intermediates are Basel, Switzerland; Amsterdam, Netherlands;\nCopenhagen, Denmark; Stockholm, Sweden; Frankfurt, Germany; Paris, France;\nLondon, England. However, the permit precludes TMA from picking up or\ndischarging at New York property or mail destined for or originating at\nFrankfurt, Paris, or London.\n2/ In its instant permit application, TMA relies on the automatic-\nextension provisions of the Administrative Procedure Act, 5 U.S.C. 558(c),\nas implemented by Part 377 of our regulations, to keep the authority in\neffect pending final disposition of the application.\nFOR OFFICIAL USE ONLY\n- 2 -\nTMA is designated by its government under the United States-Lebanon\nAir Transport Services Agreement, which entered into force September 1,\n1972, to conduct scheduled all-cargo services between the two countries via\nthe seven named European intermediate points. 3/ The route schedule of the\n1972 Agreement expired by its terms on May 27, 1976. It was extended\nthrough December 31, 1976 by agreement between the two governments. An\nExchange of Notes signed in October 1977 provided continued authority for\nTMA's operations and for the resumption of Pan American's Beirut service\non the basis of comity and reciprocity. Two recent Exchange of Notes again\nprovide definitive route rights for the carriers of both countries. The\nExchange of Notes dated December 22, 1982, provides routes for airlines of\nthe United States and for another Lebanese carrier, Middle East Airlines.\nThe Exchange dated April 29, 1983, provides TMA's all-cargo route rights.\nUnder the April 29 Exchange of Notes, TMA is entitled to conduct\nscheduled all-cargo Lebanon-New York service, via the intermediate points\nBasel, Amsterdam, Copenhagen, Stockholm, Frankfurt, Paris, and London,\nwithout traffic rights between New York and the intermediate points Paris,\nLondon, and Frankfurt, at a frequency of four round-trip flights per week\nwith narrow-body aircraft or equivalent capacity.\nApplication\nBy application filed May 16, 1983, and notice of which was placed in\nthe Federal Register (48 FR 23876, May 27, 1983), TMA requests that we\nrenew its foreign air carrier permit for a three-year period, and amend it\nin accordance with the Exchange of Notes dated April 29, 1983. TMA also\nrequests that we remove from its permit the ten-day and ARAMCO conditions.\nIn support of its overall application, TMA asserts (Attachment A is a\nsummary of the application) that it is a carrier of Lebanon, privately\nowned and controlled by nationals of Lebanon; that it is financially and\noperationally qualified to conduct the scheduled and charter cargo\noperations it proposes; 4/ that it is licensed by its government to do so;\n3/ The 1972 Agreement superseded the 1946 United States-Lebanon Air\nTransport Services Agreement.\n4/ TMA states that the Port Authority of New York and New Jersey enacted\nnoise-abatement regulations, which will not permit the use of Boeing 707\nequipment at its airports. TMA's fleet consists solely of B-707's. By\nletter dated August 16, 1983, TMA states that in June 1983 the United\nStates District Court for the Southern District of New York found the\nrestriction to be invalid and issued a preliminary injunction against the\nPort Authority, that the Port Authority has appealed the District Court's\ndecision to the United States Court of Appeals, and that the appeal is\npending. TMA asserts that, regardless of the outcome of the appeal, it has\nthe means to conduct New York service via its block-space arrangement with\nMiddle East Airlines S.A.L., approved for a one-year period by Order\n83-7-72.\n- 3 -\nthat it is designated by its government to conduct the scheduled cargo\nservices provided for in the April 29 Exchange of Notes; 5/ and that\nadequate comity and reciprocity with Lebanon underlie its request to\noperate cargo charter flights to the United States.\nIn support of its request to have the ten-day condition removed from\nits permit, TMA argues that it was instituted in the absence of an\neffective route schedule specified in the Agreement and is no longer\nrelevant because the April 29 Exchange of Notes prescribes the limitations\non the level of TMA's operations. Further, TMA asserts, without\nelaboration, that the ARAMCO condition has not been relevant for a number\nof years.\nNo answers to the application have been filed.\nDecision\nWe have thoroughly reviewed the record, including the application, and\nhave decided to grant the application using the simplified Subpart Q\nprocedures. 6/ The public was informed of TMA's application by notices in\nthe Federal Register and our weekly list of applications filed, describing\nthe authority sought and giving interested persons an opportunity to submit\nevidence and objections to the award of the authority. These notices\nprovided the required notice and filing opportunities. Simplified\nprocedures are appropriate in this case because there are no material\ndeterminative issues of fact requiring other procedures.\nWe have decided to amend and renew TMA's foreign air carrier permit\nfor a three-year period to authorize the carrier to conduct scheduled\nservice, carrying property and mail, between Lebanon and New York City, via\nthe seven named European intermediate points, and to operate cargo charter\nflights in foreign air transportation, under our regulations governing\ncharters. 7/ Based on TMA's submissions and other facts of record, we find\nand conclude that the applicant is substantially owned and effectively\ncontrolled by nationals of Lebanon, and that it is fit, willing, and able\nto perform properly the scheduled and charter foreign air transportation\ndescribed in the attached permit and to conform to the provisions of the\nAct, and to our rules, regulations, and requirements. In this regard,\nno party has challenged TMA's ownership and control by homeland nationals,\n5/ See section 402(b) of the Federal Aviation Act of 1958, as amended;\n49 U.S.C. 1372(b).\n6/ 14 CFR 302.1701 et seq. Under Rule 29(b) we may, in our discretion,\nomit a tentative decision in proceedings under Subpart Q and proceed\ndirectly to a final decision, after provision of an opportunity for\ninterested parties to submit evidence and to object to grant of authority\nunder section 402 of the Act.\n7/ Although the Agreement and the exchanges of notes do not provide for\ncharter operations, we are granting TMA the underlying charter authority on\nthe basis of comity and reciprocity.\n- 4 -\nits financial and operational fitness, 8/ or the adequacy of the carrier's\ncompliance disposition. Moreover, TMA's scheduled authority is provided\nby a recent Exchange of Notes between the United States and Lebanon, and\nthe airline is licensed by its government to conduct the scheduled and\ncharter operations it requests.\nWe further find and conclude that adequate comity and reciprocity with\nLebanon underlies TMA's request to conduct cargo charter flights to and\nfrom the United States, and is sufficient to warrant issuing a permit for a\nthree-year term.\nWe are not persuaded, however, that either the ten-day or the ARAMCO\ncondition should be removed from TMA's permit. See conditions 4 and 5,\nrespectively, in the attached permit.\nConcerning retention of the ten-day condition, we believe that the\nvolume of TMA's New York City cargo (cargo loaded or unloaded at New York),\nwhich is destined for or coming from third countries (Fifth including Sixth\nFreedom traffic), should continue to bear a reasonable relationship to the\nvolume of TMA's Third and Fourth Freedom Lebanon-New York cargo. TMA's\nNew York cargo, which, within ten days, TMA will transport to or has\ncarried from, points beyond Lebanon, still should be considered as\nthird-country carriage for the purposes of the condition. The basis for\nthe ten-day condition was thoroughly considered in 1977 and 1978, 9/ and we\ndo not view TMA's route rights being delineated under the April 1983\nExchange of Notes as obviating the need for the ten-day condition.\nFurther, we continue to believe that TMA should not grant contractual,\nboarding, or delivery-priority preferences to ARAMCO or its affiliates.\nThis too is a longstanding condition, imposed after formal hearing and\nthorough Board deliberation. TMA has offered no basis other than an\nunsubstantiated claim to justify its removal. Thus, we find that the\nreasons for applying the condition remain sound. Therefore, we find and\nconclude that retaining both conditions is consistent with the public\ninterest.\nIn view of the foregoing and all the facts of record, we find and\nconclude that:\n1. The applicant is qualified and has been designated by its\ngovernment to perform the air services described in the attached foreign\nair carrier permit;\n2. The applicant is fit, willing and able properly to perform the\nforeign air transportation described in the attached permit and to conform\nto the provisions of the Act, and our rules, regulations and requirements;\n8/ By letter dated June 20, 1983, the Acting Manager, Air Transportation\nDivision, Office of Flight Operations, advised us that TMA conducts its\noperations in accordance with Part 129 of the FAA's Federal Aviation\nRegulations, and that he sees no reason why we should act unfavorably on\nthe application.\n9/ See p.25 of the Recommended Decision of Administrative Law Judge Kane,\nserved April 11, 1977, in Docket 30255; Order 78-5-67 (76 C.A.B. 698); and\nOrder 78-9-62, denying TMA's petition for reconsideration, requesting that\nthe ten-day condition be deleted from its permit.\n- 5 -\n3. The public interest requires that the exercise of the privileges\ngranted by the permit shall be subject to the terms, conditions, and\nlimitations contained in the attached permit, and to such other reasonable\nterms, conditions, and limitations required by the public interest as we\nmay prescribe;\n4. The applicant is substantially owned and effectively controlled by\nnationals of its homeland country;\n5. Issuance of this foreign air carrier permit will not constitute a\n\"major regulatory action\" under the Energy Policy and Conservation Act of\n1975, as defined in subsection 313.4(a)(1) of our Regulations; 10/ and\n6. The public interest does not require an oral evidentiary hearing\non the application.\nACCORDINGLY,\n1. We amend and reissue, in the form attached, the foreign air\ncarrier permit issued to the applicant by Order 80-5-147, to authorize,\namong other things, scheduled and charter air service of property and mail\nbetween the United States and Lebanon;\n2. We deny, except to the extent granted, the application and other\nrequests for relief in this Docket;\n3. The Secretary of the Board shall sign the permit on our behalf and\nshall affix the seal of the Board;\n4. Unless disapproved by the President of the United States under\nsection 801 (a) of the Act, this order with the attached permit shall become\neffective on the 61st day after its submission to the President, 11/ or\nupon the date of receipt of advice from the President that he does not\nintend to disapprove the Board's order under that section, whichever is\nearlier; and\n5. We shall serve this order on the applicant, the Ambassador of\nLebanon in Washington, D.C., the Federal Aviation Administration (AFO-220),\nand the Departments of State and Transportation.\nBy the Civil Aeronautics Board:\nPHYLLIS T. KAYLOR\nSecretary\n(SEAL)\nA11 Members concurred.\n10/ Our finding is based upon the fact that amendment and renewal of the\napplicant's permit will not result in a near-term annual increase in fuel\nconsumption in excess of 10 million gallons.\n11/ This order was submitted to the President on NOV 10 1983\nThe 61st day is JAN 10 1984\nAttachment A\nPage 1 of 2\nSUMMARY OF APPLICATION\nHomeland Country: Lebanon\nCurrent Permit Issued By: Order 80-5-147, permit effective May 21, 1980\nEvidence Incorporated By Reference From: Dockets 22901, 30255, and 35516\nCOPY Reagan Presidential Record\nBases For Authority Sought: TMA is designated by its government under the\nUnited States-Lebanon Air Transport Services Agreement, to conduct\nscheduled all-cargo services between the two countries via various inter-\nmediate points. The scheduled cargo authority that TMA requests is\nprovided for the applicant by the Exchange of Notes between the two\ngovernments, dated April 29, 1983. The charter authority TMA requests is\nnot provided for by agreement; however, adequate comity and reciprocity\nunderlie that portion of the request.\nHolds Government License For Authority Sought: Yes, see Docket 22901\nOperating History: TMA received its initial foreign air carrier permit in\n1971 and has conducted all-cargo operations to and from the United States\nsince that time. (Also, see Docket 35516.)\nAircraft Owned: Eight Boeing 707-320c's\nAircraft Maintenance Performed By: TMA in Lebanon\nFinancial Indicators (As Of):\nDec. 31, 1981\nDec. 31. 1982\n(Millions)\n(Millions)\nTotal Assets\n$ 89.1\n$ 73.5\nTotal Liabilities\n60.1\n53.2\nOwners' Equity\n29.0\n20.4\nOperating (Loss)--12 months ended\n(2.1)\n(15.1)\nMajority Ownership By Nationals Of: Lebanon\nEffective Control By Nationals Of: Lebanon\nInsurance Coverage: Yes\nInsurance Refused Or Involuntarily Canceled During Last 3 Years: No\nRefused Debt Financing Last 3 Years: No\nDefaulted On Transportation Commitments Last 3 Years: No\nFailed To Meet Current Financial Obligations Last 3 Years: No\nSafety Violations During Last 5 Years: No\nTariff Violations During Last 5 Years: No\nAttachment A\nPage 2 of 2\nSubscribes To Standar Permit Conditions Regarding Insurance And Annex 6 Of\nChicago Convention And C.A.B. Agreement 18900: Yes\nCOPY Reagan Presidential Record\nNear-term Annual Fuel Consumption Exceeds 10 Million Gallons: No\nOther: TMA states that it holds 5,922 shares of common stock in Braniff\nInternational Corp., 1,002 shares of common stock in Tiger International\nInc., and debentures of $40,000 in Tiger International 1995. Further,\nTMA states that none of its stock has been given or pledged to borrow\nfunds or purchase aircraft.\nUNITED STATES OF AMERICA\nCIVIL AERONAUTICS BOARD\nWASHINGTON, D. C.\nPERMIT TO FOREIGN AIR CARRIER\n(as amended and renewed)\nTRANS-MEDITERRANEAN AIRWAYS, S.A.L.\nis authorized, subject to the following provisions, the provisions of the\nFederal Aviation Act of 1958, as amended, and the orders, rules, and\nregulations issued thereunder, to engage in foreign air transportation of\nproperty and mail, as follows:\nBetween a point or points in Lebanon; the intermediate\npoints Basel, Switzerland; Amsterdam, Netherlands;\nCopenhagen, Denmark; Stockholm, Sweden; Frankfurt,\nGermany; Paris, France; London, England; and the\nterminal point New York, New York.\nThe holder shall be authorized to engage in charter trips in foreign\nair transportation, subject to the terms, conditions, and limitations\nprescribed by the Board's Regulations governing charters.\nThis permit shall be subject to the following terms, conditions, and\nlimitations:\n1. All scheduled flights serving New York shall originate or\nterminate in Lebanon.\n2. The holder shall not pick up or discharge at New York property or\nmail destined for or originating at Frankfurt, Paris, or London.\n3. Except as the Board may otherwise provide, with or without\nhearing, by prior authorization, the holder shall not operate more\nthan four scheduled flights per week in each direction, with\nnarrow body aircraft or equivalent capacity.\n4. The holder shall strive to comply with the condition that the\nvolume of New York cargo (i.e., loaded or unloaded at New York)\ntransported by the holder which is destined for and coming from\nthird countries shall bear a reasonable relationship to the volume\nof New York cargo which is destined for and coming from Lebanon.\nAny cargo which, within a period of 10 days, will be transported\nto, or has been transported from, a point beyond Lebanon in an\naircraft of the holder, shall be considered to be destined for or\nto be coming from a third country.\n- 2 -\n5. The holder shall not grant a boarding or delivery priority or\npreference to the Arabian-American Oil Company (ARAMCO) or its\naffiliates unless such service is available to all shippers at the\nsame rate or charge and, shall cancel any existing contract\nprovision with ARAMCO or its affiliates which is not available on\nequal terms to all shippers.\n6. In the event any practice develops which the Board regards as\ninimical to fair competition, the holder and the Board will\nconsult, and will use their best efforts to agree upon\nmodifications which are satisfactory to the Board and the holder.\n7. This permit shall be subject to all applicable provisions of any\ntreaty, convention, or agreement affecting international air\ntransportation now in effect, or that may become effective during\nthe period this permit remains in effect, to which the United\nStates and Lebanon are or shall become parties.\nThis permit shall be effective on\n, and shall terminate\nthree years later on\nUnless otherwise terminated at an\nearlier date pursuant to the terms of any applicable treaty, convention, or\nagreement, this permit shall terminate (1) upon the effective date of any\ntreaty, convention, or agreement which shall have the effect of eliminating\nthe bilaterally authorized service authorized by this permit from the\nservice which may be operated by airlines designated or authorized by the\nGovernment of Lebanon (or in the event of the elimination of any part of\nthe authorized service, the authority granted shall terminate to the extent\nof such elimination); or (2) upon the effective date of any permit granted\nby the Board to any other carrier designated or authorized by the\nGovernment of Lebanon in lieu of the holder; or (3) upon the termination or\nexpiration of the Exchange of Notes, dated April 29, 1983, between the\nGovernment of the United States and the Government of Lebanon (or in the\nevent of the termination, expiration, or amendment of any part of the\nExchange of Notes, the authority granted by this permit shall cease to the\nextent of such termination, expiration, or amendment). However, clause (3)\nof this paragraph shall not apply if the operation of the authorized\nforeign air transportation becomes the subject of any treaty, convention,\nor agreement to which the United States of America and Lebanon are or shall\nbecome parties.\nThe Civil Aeronautics Board, through its Secretary, has executed this\npermit and affixed its seal on November 8, 1983.\nPHYLLIS T. KAYLOR\nSecretary\n(SEAL)\nATTACHMENT\nPERMIT TO FOREIGN AIR CARRIER\nThe holder's authority to conduct operations under the permit to\nwhich this is attached shall also be subject to the following terms,\nconditions, and limitations:\n(1) The privileges granted by this permit are subject to the\ncondition that the foreign air carrier complies with the requirements of\n14 CFR 203, concerning waiver of Warsaw Convention liability limits and\ndefenses.\n(2) The privileges granted by this permit are subject to the\ncondition that the foreign air carrier complies with the requirements for\nminimum insurance coverage contained in 14 CFR 205.\n(3) By accepting this permit, the holder waives any right it may\npossess to assert any defense of sovereign immunity from suit in any\naction or proceeding instituted against the holder in any court or other\ntribunal in the United States (or its territories or possessions) based\nupon any claim arising out of operations by the holder under this permit.\n(4) The holder shall not operate any aircraft under the authority\ngranted by this permit, unless the holder complies with operational\nsafety requirements at least equivalent to Annex 6 of the Chicago\nConvention.\n(5) The holder shall conform to the airworthiness and airman\ncompetency requirements prescribed by its home Government for\ninternational air service.\n(6) Except as specifically authorized by the Board, all flights\nto/from the United States must originate or terminate in the holder's\nhomeland.\n(7) The holder shall not provide the foreign air transportation\nauthorized by this permit unless it holds a currently effective\nauthorization from its Government for such operations and such document\nis on file with the Board.\n(8) The exercise of the privileges granted by this permit shall be\nsubject to such other reasonable terms, conditions, and limitations\nrequired by the public interest as may be prescribed by the Board.\n*\n*"
}