Air One S.p.A.

OST-2008-0072 - Foreign Air Carrier Permit - EU-US

February 26, 2008

Application for a Foreign Air Carrier Permit - Bookmarked

Air One seeks permit authority to provide service between any point or points in the European Union and any point or points in the United States with open intermediate and beyond points, commensurate with the U.S. -E.U. Open Skies Agreement. Air One initially plans to provide service between Milan and Boston (five flights a week, commencing on June 14, 2008), and Milan and Chicago (six flights a week, commencing on June 21, 2008). Continuing service to points within the United States will be offered beyond Boston through US Airways and beyond Chicago through United Airlines, both Air One codeshare partners.' Through this arrangement, Boston flights will continue to Washington DC, Philadelphia, and Phoenix, and Chicago flights will continue to Denver, Los Angeles and Seattle.

As of February 2, 2008, Air One operated a fleet of 60 aircraft, consisting of a mix of Boeing 737, Airbus 320 and Bombardier CRJ900 aircraft. Information concerning these aircraft is attached as Exhibit C. Air One is in the process of dramatically increasing and upgrading its fleet. For the Europe‑U.S. service that is the subject of this application, the carrier intends to use A330 aircraft. The company has dry leased (from ILFC) two A330s, and intends to take delivery of one in early March, 2008, and the other in May 2008. The company plans to add four more dry‑leased A330s to its fleet in 2009, and has signed a letter of intent with Airbus for the purchase of twelve A330s for delivery between 2010 and 2012. In addition to these long‑haul aircraft, Air One is in the process of replacing its B737 aircraft with 90 new A320s, which will be used to provide Air One's intra‑Europe services. All aircraft owned or leased by Air One are used exclusively by the carrier.

Air One is a citizen of Italy. The carrier is owned 99.77% by AP Holding S.p.A., which in turn is owned 99.99% by Toto S.p.A.; Toto S.p.A. is owned by 98% by Mr. Carlo Toto, an Italian citizen. Neither Mr. Toto nor Toto S.p.A. have any interest in any U.S. carrier. Within the Toto group of companies are other carriers and aviation‑related companies, including Air One Cityliner (which provides short range scheduled service within Italy); Air One Executive (which provides air taxi service); Air One Technic (which provides base maintenance services to Air One); and holding companies organized for the acquisition of Air One's new aircraft.

Counsel: Sher & Blackwell, Mark Atwood

March 10, 2008

Amendment One to Application for Exemption

Air One S.p.A., the applicant in this proceeding, hereby amends its application in this docket to incorporate by reference two revised exhibits, filed contemporaneously in Docket OST-2008-0073, i.e. Revised Exhibit H and Revised Exhibit I.

Counsel: Sher & Blackwell, Mark Atwood