South African Airways (PTY) Limited

OST-2007-0014 - Statement of Authorization and Exemption - Codeshare for Ghana International

October 10, 2007

Application for a Statement of Authorization and an Exemption

South African Airways  and Ghana International Airlines have entered into an agreement pursuant to which GIA will hold out scheduled service between Ghana and the United States by displaying its code on certain flights operated by SAA. Pursuant to 14 C.F.R. Part 212, SAA hereby requests a Statement of Authorization for authority to display GIA's "GO" code on flights operated by SAA between Johannesburg, South Africa, and New York, New York, via Accra, Ghana. Pursuant to 49 U.S.C. § 40109 and Subpart C of the Department's Rules of Practice, SAA further requests an exemption from 49 U.S.C. § 41301 to permit SAA to provide foreign air transportation of passengers, property, and mail between New York and Johannesburg, via Accra. The carriers intend to commence sales for this service as soon as they receive all the necessary approvals.

In addition, SAA requests exemption authority to permit it to operate the described service between Johannesburg and New York, via Accra with local traffic rights. Initially, SAA proposes to operate four weekly round trips on this route beginning in January 2008. Flights from Johannesburg will operate on Mondays, Wednesdays, Fridays, and Sundays. Flights from New York will operate on Mondays, Tuesdays, Thursdays, and Saturdays. SAA has been licensed by both the South African and Ghanaian authorities to provide this service.

Counsel: Holland & Knight, Anita Mosner, 202-955-3000, anita.mosner@hklaw.com

October 19, 2007

Answer of Atlas Air to Application for a Statement of Authorization and an Exemption

Atlas Air, Inc. is filing this answer to suggest, without opposing the application, that the Department consider deferring approval until the Government of South Africa has satisfactorily explained the rules and procedures it now applies to U.S. airline applications for permits to operate 3rd/4th freedom charters.

To summarize the situation, which already has been described to the Department, Atlas recently applied to the South African Department of Transport for authorization to operate an upcoming JFK-JNB flight. Atlas submitted its application electronically, as it had done many times in the past. The South African DOT responded that "we do not accept any application sent by email" and continued that "all documents have to [be] hand delivered or posted to the Department of Transport first and then once received, we check the documents and start . . . the process."

Given the departure from past practice and the lengthy amount of time it takes for a package to reach South Africa, even when sent by expedited delivery service, this development was problematic. The difficulties were compounded when Atlas was advised that it needed to provide "certified" copies of all aircraft-related documents, as well as a certified copy of the application form itself. Because of the lack of clarity about the type of certification that was being requested and the impossibility of providing all documentation in time to complete the licensing process before the planned flight date, Atlas had to postpone the flight, to the distress of its customer.

Repeatedly throughout the licensing process, Atlas sought to learn what procedures South Africa applies to charter applications. Although being told that written rules exist Atlas was unable to locate and obtain them. Nor was Atlas successful in securing something in writing announcing the apparent South African DOT decision to stop processing applications on the basis of electronic submissions, despite several requests. The only explanation offered was an e-mail statement that the new requirements had been imposed by the new Chairperson of the International Air Service Council.

By creating confusion about the permit application process, the South African DOT has impeded the abilities of Atlas and other U.S. carriers to exercise their charter rights. Before the Department grants the SAA application, the U.S. government should obtain South African government clarification of the substantive, procedural and time requirements applicable to applications to conduct charters - and ensure that they will be applied consistently and transparently.

Counsel: Atlas, Russell Pommer, 202-822-9121, rpommer@atlasair.com

October 30, 2007

Clarification of Atlas Air

In our answer of October 19, 2007, we stated that Atlas had to postpone a flight from New York to Johannesburg because of difficulties encountered during the South African DOT licensing process. It has just come to our attention that some have interpreted that to mean that South African approval is still being sought and the flight has not yet occurred. It certainly was not our intent to create that impression; the flight in fact has operated. We apologize for any misunderstanding our pleading may have caused.

The basic facts are that Atlas was unable to operate the flight when the customer wanted, because of lack of clarity about the South African licensing process. Even though the flight ultimately operated, the customer was not pleased . Atlas would like to avoid future similar situations and thus suggested, in its pleading, that the Department secure information through intergovernmental channels about the precise nature of South Africa's licensing requirements.

It is not our intent to object substantively to the authority South African Airways seeks. It would seem to us that South Africa could put the matter to rest quickly and definitively by publishing or at least providing its charter licensing requirements. We suggested that the Department wait for that information before acting on the South African Airways application. Of course, if the Department believes that course is too draconian, it is perfectly able to grant the application at any time.

Counsel: Atlas, Russell Pommer, 202-822-9121, rpommer@atlasair.com

October 31, 2007

Reply of South African Airways

On October 19, 2007, Atlas Air, Inc. filed an Answer which did not oppose SAA's Application, but urged the Department to defer approval of the Application until the Government of South Africa satisfactorily explains its rules and procedures for U.S. airline permit applications to operate third- and fourth-freedom charter flights.

SAA urges the Department not to defer action on its Application. Any issues involved with approving SAA's application are different and distinct from the concerns Atlas has raised. Moreover, approval of SANS Application is not in any way connected to the South African DOT'S dealings with Atlas.

Although SAA believes that its Application and Atlas's concerns are not linked, SAA nevertheless has contacted the Civil Aviation Authority in South Africa to make them aware of the issue that Atlas has raised. In response to SAA's inquiry, the South African DOT confirmed that it has implemented new licensing procedures for all air carriers, and that Atlas had been apprised of those procedures. The authorities also indicated that other US carriers had been complying with those procedures.

Counsel: Holland & Knight, Anita Mosner, 202-955-3000, anita.mosner@hklaw.com