BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. ) ) ) ) ) ) )

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1 BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of K5-AVIATION GMBH for an exemption pursuant to 49 U.S.C and a foreign air carrier permit pursuant to 49 U.S.C (EU-U.S. open-skies Docket DOT-OST APPLICATION OF K5-AVIATION GMBH FOR AN EXEMPTION AND A FOREIGN AIR CARRIER PERMIT Communications with respect to this document should be addressed to: Dr. Ineke Goertz CEO K5-AVIATION GMBH Katharinazell 5 D Gammelsdorf Germany Telephone: Facsimile: I.Goertz@k5-group.com Sheryl R. Israel HOGAN LOVELLS US LLP Columbia Square 555 Thirteenth Street, NW Washington, DC Telephone: Facsimile: sheryl.israel@hoganlovells.com Counsel for K5-AVIATION GMBH October 1, 2012 NOTICE: Any person may support or oppose this application by filing an answer and serving a copy of that answer on counsel for K5-Aviation GmbH and all persons served with this application. Answers to the exemption request are due October 16, 2012, and answers to the permit request are due October 22, 2012.

2 BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of K5-AVIATION GMBH for an exemption pursuant to 49 U.S.C and a foreign air carrier permit pursuant to 49 U.S.C (EU-U.S. open-skies Docket DOT-OST October 1, 2012 APPLICATION OF K5-AVIATION GMBH FOR AN EXEMPTION AND A FOREIGN AIR CARRIER PERMIT K5-Aviation GmbH ( K5-Aviation or the Applicant hereby applies under 49 U.S.C , and 40109, Subparts B and C of the Department s Rules of Practice (14 C.F.R and , et seq., the U.S.-EU Reciprocal Recognition Procedures, 1 and the Streamlined Licensing Procedures 2 for an exemption and a foreign air carrier permit authorizing K5-Aviation to engage in charter foreign air transportation of persons, property, and mail to and from points in the United States to the full extent permitted by its homeland operating authority and the EU-U.S. open-skies agreement, as well as other charters pursuant to the prior approval requirements set forth in the Department s regulations (14 C.F.R. Part 212, as more fully described herein. 1 2 See DOT Notice, Application Procedures for Foreign Air Carriers of the European Union, dated February 19, See DOT Notice in Docket DOT-OST , dated August 23, K5-Aviation requests that the Department grant this application under the show-cause procedures described in that Notice by issuing a single Order (a granting the exemption authority described in this application for a period of two years, or until the effective date of the Applicant s foreign air carrier permit, whichever occurs first, and (b tentatively awarding the amended foreign air carrier permit. As soon as possible thereafter, K5-Aviation requests that the Department issue a Final Order issuing K5-Aviation its EU-U.S. open-skies foreign air carrier permit for a period of indefinite duration.

3 Application of K5-Aviation GmbH Page 2 K5-Aviation is a recently established EU air operator that was awarded its initial Operating License and Air Operator Certificate last year, commencing operations with a single Airbus A319 Corporate Jet (ACJ319 configured with 19 passenger seats and subsequently adding service with a Global Express configured with 12 passenger seats. K5-Aviation offers worldwide charter service using these two aircraft and may expand its charter offerings in the future to include additional aircraft. In order to meet the global travel requirements of its charter customers, K5-Aviation is eager to offer charter flights to and from the United States to the full extent permitted to air carriers from EU Member States under the EU-U.S. open-skies agreement. 3 In support of this application, K5-Aviation submits the following information required under the U.S.-EU Reciprocal Recognition Procedures: 1. The name and address of the applicant. K5-Aviation GmbH Katharinazell 5 D Gammelsdorf Germany 2. Statement of the authority sought. K5-Aviation requests issuance of an exemption and a foreign air carrier permit authorizing the Applicant to engage in the following: foreign 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 EU Member State 3 K5-Aviation is presently authorized to conduct only a limited number of planeload charter flights to and from the United States pursuant to a DOT Special Authorization approved on August 15, 2012.

4 Application of K5-Aviation GmbH Page 3 and via intermediate points, to any point or points in the United States and beyond; foreign 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 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 the Department s regulations governing charters; and charter transportation authorized by any additional route rights made available to European Union carriers in the future, to the extent permitted by the Applicant s homeland license on file with the Department. 3. Evidence of the Applicant s operating authority. Attached as Exhibit KAY-1 are the Applicant s Operating License (No. D 181 EG issued by the Federal Republic of Germany s Luftfahrt-Bundesamt ( LBA on June 30, 2011 and an Air Operator Certificate (AOC (No. D AOC issued to the Applicant by the LBA on October 18, 2011 (with Operations Specifications, as amended through May 30, 2012, authorizing K5-Aviation to carry passengers, mail and/or freight on a worldwide basis. K5-Aviation will obtain appropriate amendments to the Operations Specifications associated with its AOC and will otherwise continue to update and renew its Operating License and AOC as necessary.

5 Application of K5-Aviation GmbH Page 4 4. Name of the foreign air transport authority involved. Luftfahrt-Bundesamt Hermann-Blenk-Straße 26 D Braunschweig Germany 5. Statement that the Applicant s insurance coverage meets or exceeds the liability limits of 14 C.F.R. Part 205. K5-Aviation s insurance coverage meets or exceeds the liability limits of 14 C.F.R. Part 205, as reflected in the Certificate of Insurance attached as Exhibit KAY-2. The Certificate of Insurance will also be filed with the FAA. 6. Copies of signed OST Form 4523 (waiver of liability limits under the Warsaw Convention. Attached as Exhibit KAY-3 is a copy of signed OST Form 4523, which has also been filed in Docket DOT-OST ADDITIONAL INFORMATION. Energy Information. In light of the on-demand nature of its proposed operations, the services proposed by K5-Aviation will not involve a near-term net annual change in aircraft fuel consumption exceeding 10 million gallons, meaning approval of this application would not constitute a major regulatory action under the Energy Policy and Conservation Act, as implemented by 14 C.F.R. Part 313. The Applicant does not anticipate encountering any difficulty in obtaining adequate supplies of fuel for its proposed ad hoc services from existing sources. Family Support Plan and Passenger Manifest Information. Because the 19-seat ACJ319 operated by K5-Aviation meets the Department s definition of large aircraft, the Applicant s proposed charter services are subject to the requirements of 49 U.S.C In accordance with 41313(b, K5-Aviation will submit a plan to

6 Application of K5-Aviation GmbH Page 5 address the needs of families of passengers involved in aircraft accidents to Docket DOT-OST and to the National Transportation Safety Board. Similarly, because its large aircraft authority will subject K5-Aviation to the requirements of 14 C.F.R. Part 243, the Applicant will file a brief statement in Docket DOT-OST , as required by , summarizing how it will collect the required passenger manifest information and transmit the information to the Department of State in the event of an aviation disaster. WHEREFORE, K5-Aviation GmbH respectfully requests that the Department promptly approve this application and issue exemption authority and a foreign air carrier permit pursuant to the U.S.-EU Reciprocal Recognition Procedures and the Streamlined Licensing Procedures, as described herein, and grant such further and additional relief as the public interest may require. Respectfully submitted, Sheryl R. Israel HOGAN LOVELLS US LLP Columbia Square 555 Thirteenth Street, NW Washington, DC Telephone: Facsimile: sheryl.israel@hoganlovells.com Counsel for K5-AVIATION GMBH

7 Application of K5-Aviation GmbH Exhibit KAY-1 Operating License and Air Operator Certificate

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14 Application of K5-Aviation GmbH Exhibit KAY-2 Certificate of Insurance

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17 Application of K5-Aviation GmbH Exhibit KAY-3 OST Form 4523

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19 Application of K5-Aviation GmbH Exhibit KAY-4 Verification

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21 CERTIFICATE OF SERVICE I hereby certify that a copy of the foregoing Application of K5-Aviation GmbH for an Exemption and a Foreign Air Carrier Permit has been served this 1st day of October, 2012, on the following addressees: Kris Urs Deputy Assistant Secretary for Transportation Affairs Bureau of Economic and Business Affairs Department of State 2201 C Street, NW Washington, DC Nicholas Tsokris Operations Supervisor New York Flight Standards District Office, EA15 New York International Field Unit Federal Aviation Administration One Aviation Plaza, Room 504 Jamaica, NY Jonathan Echmalian