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OST-2001-8605

Aviones de Oriente, Avior, C.A.

OST-2001-8605 - Exemption - US-Venezuela Charters	January 2, 2001	Application for an Exemption	Barcelona, Venezuela-Miami Scheduled Passenger
		Exhibit 100:  Incorporation/Charter
		Exhibit 200:  Operator's Certificate
		Exhibit 300:  Financials for 1999 and 1998
		Exhibit 301:  Projected Cash Flow
		Exhibit 400:  Family Assistance Plan
		Exhibit 500:  Passenger Manifest
		Service List

Avior requests an exemption to engage in (i) scheduled foreign air transportation of persons, property and mail between Barcelona, Venezuela on the one hand and Miami, Florida, on the other hand and (ii) charter foreign air transportation of persons, property and mail between any point or points in Venezuela, on the one hand, and any point or points in the United States, on the other hand, either directly or via intermediate points in other countries, with or without stopovers, and beyond and any other charters pursuant to Part 212 of the Department's regulations, as necessary. For its proposed services to the U.S., Avior intends to use Boeing 727-200 aircraft operated pursuant to a wet lease arrangement with an authorized Part 121 or Part 129 carrier.

Avior currently holds an operating license from the Government of Venezuela to engage in charter air transportation between Venezuela and the United States. A copy of Avior's operating license, along with the related operations specifications, are included as Exhibit AVIOR-200 attached hereto. Avior's operating license includes authority for charter passenger operations to the United States. Avior anticipates that it will receive additional license authority from the Government of Venezuela prior to the end of January 2001 authorizing Avior to conduct scheduled air transportation between Barcelona, Venezuela and Miami.

Applicant is a Venezuelan national airline certificated by the Government of Venezuela in 1998. Avior commenced domestic operations in 1994 and international charter services in 1999. The carrier currently operates domestic passenger flights and international passenger charter flights between Venezuela and Caribbean destinations with Beechraft 1900D and Cessna Grand Caravan 208B aircraft. Avior operates daily and weekly flights to 22 destinations. Avior is expanding its passenger charter operations out of Venezuela and the Caribbean in response to the tremendous demand for services to Florida. Avior's proposed flights to the U.S. would provide significant benefits to the U.S. markets it intends to serve.

Avior will operate to the U.S. with a Boeing 727-200 aircraft with seating capacity for 172 passengers. The aircraft is expected to be registered in the U.S. The aircraft will be maintained pursuant to Avior's agreement with the wet lease operator of its services to the United States.

Counsel:  Kilpatrick Stockton, George Harper, 786-777-8006

The "license" supplied by Avior supporting the application does not authorize the large aircraft international scheduled service applied for by Avior. As a preliminary matter, no actual license has been supplied, only an English translation of a December 6, 2001 domestic commuter license. See: Avior Exhibit 200, "Operator's Public Service Certificate for Domestic Air Transportation." The failure to provide a valid homeland license authorizing the type of service applied for violates one of the basic requirements of the Department's regulations governing applications for foreign air carrier authority. Secondly, from the stated terms of the translation supplied by Avior, it is not at all clear that the large aircraft international charter operations contemplated by Avior have been authorized.

For some undetermined time now, Avior has been advertising its airline services locally in Miami, and has operated passenger flights on the same Miami - Barcelona routing as is sought herein utilizing the direct air carrier services of the U.S. Part 121 carrier Miami Air, Inc. Avior's flights are being sold, inter alia, through Speedy Travel, Inc., although Speedy Travel would appear only to be a retail travel agent based in Miami.

Counsel:  Pierre Murphy, 202.872.1679, pmurphy@lopmurphy.com 

If Aeropostal doubts that its own government has issued such a license to Avior, attached to this reply is an excerpt from the official Venezuelan government gazette containing the Spanish language version of Avior's operating authority (Exhibit A). If Aeropostal believes that license was improvidently granted, it should address that argument to the proper authorities in Venezuela and not attempt an end run here in the U.S.

Avior made no attempt to hide in its application that although it has already received its charter operating authority, it is still waiting for the Venezuelan government to grant it a license for scheduled service to the U.S. and other international destinations. Approval of that authority is imminent. The lack of scheduled authority should not prevent the Department from immediately granting - as it has done many times in the past -- that portion of the application requesting an exemption for charter services, while deferring action on the matter of scheduled operations until such time as Avior provides the requisite license from Venezuela.

Aeropostal appears to claim that a foreign applicant must submit not only a homeland operating license, but in addition the full raft of operating specifications governing its air transportation services. No such requirement exists in DOT's regulations nor is counsel for Avior aware of any informal guidance providing for the submission of a foreign carrier's ops specs in a DOT application. A homeland operating license is enough. Although under other circumstances a foreign applicant's operating authorizations might be necessary to satisfy the requirements of Part 129, Avior will not be operating to the U.S. with its own aircraft due to Venezuela's Category 2 status for civil aviation oversight purposes. As a consequence, its operating specifications are irrelevant to the instant application.

The only "deceptive practice" which Aeropostal's answer has brought to light is its own effort to block additional competition in the U.S.-Venezuela market by making wild accusations about Avior. The Department should not be misled by Aeropostal's attempted smear campaign. Avior is requesting approval for the only direct service between Miami and Barcelona, a significant expansion of current U.S.-Venezuela services which heretofore have focused on the principal destinations of Caracas and Maracaibo. This enhancement of the U.S.-Venezuela market will offer the traveling public additional service options and convenient connections to the numerous points in Venezuela accessible from Avior's Barcelona hub. As the services proposed by Avior are clearly in the public interest, the Department should grant the requested exemption without further delay.

Counsel:  Zuckert Scoutt, Malcolm Benge, 202.298.8660

Exemption from 49 U.S.C. 41301 to conduct (1) scheduled foreign air transportation of persons, property and mail between Barcelona, Venezuela, and Miami, FL; and (2) charter foreign air transportation of persons, property and mail between any points in Venezuela and any points in the United States, directly or via intermediate points in other countries, with or without stopovers, and beyond; and other charters pursuant to 14 CFR 212 of the Department's regulations, pursuant to a wet-lease arrangement with an authorized Part 121 or Part 129 carrier.

Aeropostal Alas de Venezuela, C.A., a foreign air carrier of Venezuela, filed an answer in opposition, stating that Avior's homeland license does not authorize large aircraft scheduled international service, and that it is unclear that the license authorizes large aircraft international charter operations. Aeropostal also alleges that Avior has been holding out and operating Barcelona-Miami service without Department authority.

Avior filed a reply stating that, as it pointed out in its application, it is waiting for the Venezuelan government to license it for international scheduled service, but that its current license clearly authorizes it to conduct the proposed charter services. It states that the lack of scheduled authority should not prevent the Department from granting that portion of the application requesting charter authority, while deferring action on the matter of scheduled operations until the requisite homeland license is provided. Avior further states that, contrary to Aeropostal's allegations, it is not holding out or operating Barcelona-Miami service; that the charter program Aeropostal cites was the subject of a prospectus accepted by the Department, with Miami Air International as the direct air carrier, and that any reference to Avior in advertisements was in the context of connecting flights from Barcelona to domestic Venezuelan points.

We are granting Avior authority to conduct charter foreign air transportation of persons, property and mail between any points in Venezuela and any points in the United States, directly or via intermediate points in other countries, with or without stopovers, and beyond; and other charters pursuant to 14 CFR 212 of the Department's regulations, pursuant to a wet-lease arrangement with an authorized Part 121 or Part 129 carrier. Avior may not conduct U.S. operations with its own aircraft and crews without further order of the Department. We find that reciprocity with Venezuela is adequate to support grant of this authority. We also find, based on the record, that the carrier appears to be substantially owned and effectively controlled by citizens of Venezuela, financially and operationally qualified, and properly licensed to conduct the proposed charter operations. We are, however, deferring action on that portion of Avior's application requesting authority to conduct scheduled Barcelona-Miami operations until it is properly licensed for such operations by Venezuela. With respect to Aeropostal's concerns on the holding out matter, in the circumstances presented and taking into account the record before us, we do not find a persuasive basis to withhold action on Avior's application. We will, however, refer this matter to the Assistant General Counsel for Aviation Enforcement and Proceedings for such action as is deemed appropriate.

By:  Paul Gretch

Exemption to conduct (1) scheduled foreign air transportation of persons, property and mail between Barcelona, Venezuela, and Miami, FL; and (2) charter foreign air transportation of persons, property and mail between any points in Venezuela and any points in the United States, directly or via intermediate points in other countries, with or without stopovers, and beyond; and other charters pursuant to 14 CFR 212 of the Department's regulations, pursuant to a wet-lease arrangement with an authorized Part 121 or Part 129 carrier.

In keeping with our policy in granting Venezuelan carriers charter authority, we will require Avior to obtain our approval in the form of a statement of authorization before operating any charter trips to the United States (see Special Condition).

By:  Paul Gretch

Avior requests renewal of its U.S. exemption authority in order to engage in foreign charter air transportation of persons, property and mail between any point or points in Venezuela and any point or points in the United States, directly or via intermediate points in other countries, with or without stopovers, and beyond, and any other charters pursuant to Part 212 of the Department's regulations. Avior will not conduct operations to the U.S. with its own aircraft and crews without further order of the Department.

Counsel:  Zuckert Scoutt, Malcolm Benge, 202.298.8660

Renew exemption from 49 U.S.C. 41301 to conduct charter foreign air transportation of persons, property and mail between any points in Venezuela and any points in the United States, directly or via intermediate points in other countries, with or without stopovers, and beyond; and other charters pursuant to 14 CFR 212 of the Department's regulations, pursuant to a wet-lease arrangement with an authorized Part 121 or Part 129 carrier.

By:  Paul Gretch

June 24, 2003

Application for Renewal of Exemption

Avior requests renewal of its U.S. exemption authority in order to engage in foreign charter air transportation of persons, property and mail between any point or points in Venezuela and any point or points in the United States, directly or via intermediate points in other countries, with or without stopovers, and beyond, and any other charters pursuant to Part 212 of the Department's regulations. Avior will not conduct operations to the U.S. with its own aircraft and crews without further order of the Department.

Counsel: Zuckert Scoutt, Malcolm Benge, 202-298-8660

Filed June 24, 2003 | Issued July 21, 2003

Notice of Action Taken

Exemption from 49 USC section 41301 to permit the applicant to continue to conduct charter foreign air transportation of persons, property and mail, between any points in Venezuela and any points in the United States, directly or via intermediate points in other countries, with or without stopovers, and beyond; and other charters pursuant to 14 CFR Part 212 of the Department's regulations, pursuant to a wet-lease arrangement with an authorized Part 121 or Part 129 carrier.

By: Paul Gretch

July 21, 2004

Application for Renewal of Exemption

Avior requests renewal of its U.S. exemption authority in order to engage in foreign charter air transportation of persons, property and mail between any point or points in Venezuela and any point or points in the United States, directly or via intermediate points in other countries, with or without stopovers, and beyond, and any other charters pursuant to Part 212 of the Department's regulations. Avior will not conduct operations to the U.S. with its own aircraft and crews without further order of the Department.

Counsel: Zuckert Scoutt, Malcolm Benge, 202-298-8660, mlbenge@zsrlaw.com

Filed July 21, 2004 | Issued October 18, 2004

Notice of Action Taken | Word

Exemption from 49 USC section 41301 to permit the applicant to continue to conduct charter foreign air transportation of persons, property and mail, between any point or points in Venezuela and any points in the United States, directly or via intermediate points in other countries, with or without stopovers, and beyond; and other charters pursuant to 14 CFR Part 212 of the Department’s regulations, pursuant to a wet-lease arrangement with an authorized Part 121 or Part 129 carrier.

By: Paul Gretch

October 17, 2005

Application for Renewal of Exemption

Avior requests renewal of its U.S. exemption authority in order to engage in foreign charter air transportation of persons, property and mail between any point or points in Venezuela and any point or points in the United States, directly or via intermediate points in other countries, with or without stopovers, and beyond, and any other charters pursuant to Part 212 of the Department's regulations. Avior will not conduct operations to the U.S. with its own aircraft and crews without further order of the Department. Avior seeks renewal of its exemption authority for a one-year period.

Counsel: Zuckert Scoutt, Malcolm Benge, 202-298-8660, mlbenge@zsrlaw.com

Filed October 17, 2005 | Issued November 4, 2005

Notice of Action Taken | Word

Renew exemption from 49 U.S.C. § 41301 to engage in charter foreign air transportation of persons, property and mail, between any point or points in Venezuela and any points in the United States, directly or via intermediate points in other countries, with or without stopovers, and beyond; and other charters pursuant to 14 CFR Part 212 of the Department’s regulations, pursuant to a wet-lease arrangement with an authorized Part 121 or Part 129 carrier.

By: Paul Gretch

October 13, 2006

Application for Renewal of Exemption

Avior Airlines, C.A. f/k/a Aviones de Oriente, Avior, C.A. hereby requests renewal of its authority to engage in foreign air transportation of persons, property and mail between Venezuela, on the one hand, and the United States, on the other hand.

Avior has changed its name from "Aviones de Oriente, Avior, C.A." to "Avior Airlines, C.A." pursuant to the laws of Venezuela.

Avior has filed an application for a foreign air carrier permit with the Department (Docket OST-2006-25982) as well as an exemption for scheduled service between Barcelona, Venezuela and Miami, Florida (Docket OST-2006-25984). Although the exemption which Avior is seeking to renew is for U.S.-Venezuela charter services, Avior will commence scheduled services between Barcelona and Miami if the Department grants its pending exemption and/or permit application.

Avior seeks renewal of its exemption authority for a one-year period, or until the Department grants its application for scheduled foreign air transportation authority to the U.S., if earlier.

Counsel: Zuckert Scoutt, Malcolm Benge, 202-298-8660, mlbenge@zsrlaw.com

Filed October 13, 2006 | Issued January 30, 2007

Notice of Action Taken

Renew exemption from 49 U.S.C. § 41301 to engage in charter foreign air transportation of persons, property and mail, between any point or points in Venezuela and any points in the United States, directly or via intermediate points in other countries, with or without stopovers, and beyond; and other charters pursuant to 14 CFR Part 212 of the Department's regulations. The applicant also requests amendment of that authority to allow the carrier to conduct these operations using its own aircraft and crews.

The applicant, formerly known as Aviones de Oriente, Avior, C.A., stated in its application that it had changed its name to Avior Airlines, C.A. Pursuant to Part 215 of our rules, we compared the proposed name with our list of names used by existing certificated, commuter, and foreign air carriers and with those applicants seeking new authority. We have completed our review and determined that no similarly named carrier(s) need be served.

Our November 4, 2005 action limited Avior's exemption authority to operations conducted only by wet lease from a duly authorized and properly supervised U.S. or foreign air carrier. At the time, its homeland of Venezuela was assessed in Category 2 under the Federal Aviation Administration International Aviation Safety Assessment program. In April of 2006, the FAA upgraded the IASA status of Venezuela to Category 1. The FAA has since advised us that it knows of no reason why we should act unfavorably on the applicant's amended request.

By: Paul Gretch

December 4, 2007

Application for Renewal of Exemption

Avior hereby requests renewal of its authority to engage in foreign air transportation of persons, property and mail between Venezuela, on the one hand, and the United States, on the other hand.

Avior's existing exemption to provide Barcelona-Miami service expires on December 6, 2007. Avior requests renewal of its exemption authority for a two-year period or such longer period as the Department is willing to grant.

Counsel: Zuckert Scoutt, Malcolm Benge, 202-298-8660, mlbenge@zsrlaw.com

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