BEFORE THE DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Application of ICELANDAIR EHF. for an amended Foreign Air Carrier Permit pursuant to 49 U.S.C. 41301 and for exemption authority pursuant to 49 U.S.C. 40109 Docket OST-2011- APPLICATION OF ICELANDAIR EHF. FOR AN AMENDED FOREIGN AIR CARRIER PERMIT AND FOR EXEMPTION AUTHORITY Pursuant to 49 U.S.C. Sections 40109 and 41301, Part 211 of the Department's Economic Regulations (14 C. F.R. Part 211, Subparts Band C of the Department's Rules of Practice in Proceedings (14 C.F.R. Sections 302.201 and 302.301, et. seq., and the provisions of the U.S.-EU Reciprocal Recognition Procedures,1 Icelandair ehf. (Ulcelandair" requests that the Department amend its Foreign Air Carrier Permit so that it can exercise new rights recently made available to Icelandic air carriers pursuant to the Air Transport Agreement between the United States of America and the European Union and its Member States and Iceland and Norway. Icelandair also requests pursuant to 49 U.S.C. Section 40109 that the Department grant it an exemption from 49 1 Although Iceland is not a member state of the European Union, it has now become a party to the Air Transport Agreement signed by the United States of America and the European Community and its Member States on April 25 and 30, 2007, as amended by the Protocol on June 24,2010 (collectively "the U.S.-EU Agreement, as amended". Air carriers of Iceland are consequently covered by the agreed procedures regarding determinations of airline fitness and citizenship adopted by the Joint Committee on January 12, 2009, and incorporated into the U.S.-EU Agreement, as amended, on June 24,2010, through Article 6 bis.
U.S.C. Section 41301 to the extent necessary to enable it to provide the services covered by this application while Icelandair's request for an amended Foreign Air Carrier Permit is pending. Icelandair requests, pursuant to the Notice and procedures set forth in Docket OST-2005-22228, that the Department process this application under its streamlined regulatory procedures and issue a single order: (1 granting the requested exemption authority for a two-year period or until the requested amended permit authority becomes effective, whichever occurs first, and (2 approving the corresponding Foreign Air Carrier Permit amendment request under the "show cause" procedures described in the Notice dated August 23, 2005. In support of this application, Icelandair states as follows: 1. The U.S.-EU Agreement, as amended, explicitly provides for the accession of third countries to that agreement. Iceland and Norway, which are members of the European Common Aviation Area and have adopted the entire European Community legislation on aviation policy, applied for accession in 2007. 2. On June 21, 2011, the Air Transport Agreement between the United States of America and the European Union and its Member States and Iceland and Norway ("the Iceland-Norway Accession Agreement" was signed, which extended the scope of the U.S.-EU Agreement, as amended, to include Norway and Iceland as if they were Member States of the European Union. It granted Iceland and Norway "all of the rights and obligations of Member States" under the U.S.-EU Agreement, as amended by the Protocol, subject to the provisions of the Annex to the Iceland-Norway Accession Agreement. 2
3. The Iceland-Norway Accession Agreement took provisional effect on its signing date of June 21, 2011. Under a combined reading of the agreements, Icelandic carriers, like airlines of the EU Member States (which for purposes of the agreements include Iceland and Norway, now have the right to engage in: Foreign scheduled and charter air transportation of persons, property and mail from any point or points behind any Member State of the European Union, via any point or points in any Member State and via intermediate points, to any point or points in the United States and beyond; Foreign scheduled and charter air transportation of persons, property and mail between any point or points in the United States and any point or points in any member of the European Common Aviation Area; Foreign scheduled and charter air transportation of cargo between any point or points in the United States and any other point or points; Other charters pursuant to the prior approval requirements set forth in 14 C.F.R. Part 212 of the Department's Economic Regulations; and Transportation authorized by any additional route rights made available to European Union carriers in the future. 4. As a carrier of Iceland, Icelandair accordingly requests that the Department amend its Foreign Air Carrier Permit to authorize foreign air transportation consistent with the scope described above, and that in the interim it be granted an exemption from 49 U.S.C. Section 41301 to the extent necessary to enable it to provide such services. 5. In compliance with the Department's requirements under 14 C.F.R. Section 211.21 concerning applications for amendments of Foreign Air Carrier Permits, and the U.S.-EU Reciprocal Recognition Procedures, Icelandair provides the following information. 6. Icelandair is a private company organized and operating under the laws of Iceland with its principal office at ReykjaVik Airport, 101 ReykjaVik, Iceland. 3