Societe Air France

OST-2007-29028 - Amended Foreign Air Carrier Permit and Exemption - US-EU Open-Skies

August 14, 2007

Application for an Exemption and Amended Foreign Air Carrier Permit - Bookmarked

Air France respectfully requests that the Department approve this plication on an expedited basis and issue "Societe Air France" an exemption and an amended air carrier permit pursuant to the May 3, 2007 and August 23, 2005 Notices authorizing Air France to engage in scheduled and charter air transportation of passengers, cargo and mail, as described herein, to the full extent provided by the existing U.S.-E.U. Agreement and any future amendments providing additional rights to European Community carriers, and authorizing Air France to accept payment and issue tickets where such services may commence under the U.S.-EU Agreement effective March 30, 2008, and for such further and additional relief as the Department may deem appropriate.

Counsel: Silverberg Goldman, Michael Goldman, 202-944-3305

October 9, 2007

Re: Additional Information

In connection with the Application of societe Air France for an Exemption and Amended Foreign Air Carrier Permit, filed in Docket OST-2007-29028 on August 14, 2007, we provide herewith additional information on the ownership of the Air France-KLM holding company. The Air France-KLM holding company owns 100% of the share capital of societk Air France.

As reflected on the attached page 20 of the Air France-KLM Management Report for the 2006-2007 Fiscal Year, as of March 31, 2007, French interests own 51.4% of the share capital of Air France-KLM. (The complete Air France-KLM Management Report can be found at www.airfranceklm-finance.com/financial-publications.html) In addition, interests from other E.U. Member States, including the United Kingdom (14%), Germany (4%), Belgium (3%), and the Netherlands and Luxembourg (2%), own an additional 23% of the share capital of the Air France-KLM holding company. Thus, nationals from France and other E.U. Member States own a total of almost 75% of the share capital of the Air France-KLM holding company.

Counsel: Silverberg Goldman, Michael Goldman, 202-944-3306

Order 2007-10-23
OST-2007-29028 - Amended Foreign Air Carrier Permit and Exemption - US-EU Open-Skies

Issued and Served October 19, 2007

Order Granting Exemption and to Show Cause

We grant the request of Société Air France for an exemption under 49 U.S.C. §40109 to permit it (1) effective on the issue date of this order, to accept payments, issue tickets, and enter into charter contracts, and (2) effective March 30, 2008, to commence flight operations, for the services set forth below: a) 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; b) 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; c) foreign scheduled and charter cargo air transportation between any point or points in the United States and any other point or points; d) other charters pursuant to the prior approval requirements set forth in 14 CFR Part 212 of the Department’s regulations; and e) transportation authorized by any additional route rights made available to European Community carriers in the future.

With respect to the applicant’s request for a foreign air carrier permit in this proceeding, we direct all interested persons to show cause why our tentative decision on that application, set forth above, should not be made final. Any interested person objecting to the issuance of an order making final our tentative findings and conclusions with respect to the applicant’s request for a foreign air carrier permit shall, no later than twenty-one calendar days after the date of service of this order, file with the Department.

By: Paul Gretch

Order 2008-3-16
OST-2007-29028 - Amended Foreign Air Carrier Permit and Exemption - US-EU Open-Skies

Issued January 16, 2008 | Served March 17, 2008

Final Order

By Order 2007-10-23, issued October 19, 2007, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions stated therein and award an amended foreign air carrier permit in the form attached to the Order and subject to the conditions attached thereto. We gave interested persons 21 days to file objections to the Order. We said that if no objections were filed, all further procedural steps would be deemed waived, and the Department would enter an order (subject to Presidential review under 49 U.S.C. §41307) which would make final the findings and conclusions of the Order.

On November 8, 2007, Société Air France filed a response to Order 2007-10-23. Air France states that it seeks to retain authority to conduct operations to certain points, authority which it holds in its current foreign air carrier permit issued by Order 2002-5-8, to the extent that such authority is not encompassed by the new U.S.-EU permit authority tentatively granted to it by the Department in Order 2007-10-23. Specifically, Air France notes that, among other things, its current permit authorizes it to engage in scheduled foreign air transportation of persons, property, and mail: (a) From points behind New Caledonia and/or Wallis and Futuna via New Caledonia and/or Wallis and Futuna to the United States; (b) From points behind French Polynesia via French Polynesia and intermediate points to the United States and beyond; and (c) From points behind Saint-Pierre and Miquelon via Saint-Pierre and Miquelon and intermediate points to the United States and beyond.

With respect to Air France’s request that it be able to continue to serve the markets described above, we note that, consistent with the terms of the U.S.-EU Agreement cited by Air France, and with the terms of the U.S.-France Air Transport Agreement, Air France’s currently-effective foreign air carrier permit, issued by Order 2002-5-8, will remain in full force and effect to the extent that it authorizes the referenced services. Therefore, our action in finalizing Air France’s new foreign air carrier permit in this proceeding will not alter the carrier’s existing permit authority to conduct these services. In view of the above, we make final our tentative findings and conclusions as set forth in Order 2007-10-23, and award Air France the attached foreign air carrier permit for U.S.-EU authority.

By: Paul Gretch