BEFORE THE
DEPARTMENT OF TRANSPORTATION
WASHINGTON, D.C.
Application of
KUWAIT AIRWAYS CORPORATION
to Amend Foreign Air Carrier Permit
)
)
)
)
)
)
)
Docket No. OST-2003-
APPLICATION OF KUWAIT AIRWAYS CORPORATION
TO AMEND FOREIGN AIR CARRIER PERMIT
Communications concerning this document should be sent to:
Henry C. Cashen II
DICKSTEIN SHAPIRO MORIN &
OSHINSKY LLP
2101 L Street, N.W.
Washington, D.C. 20037-1526
(202) 785-9700
Douglas N. Jacobson
LAW OFFICES OF DOUGLAS N.
JACOBSON LLC
513 Saddle Ridge LN, Suite 101
Rockville, MD 20850-5707
(301) 926-0694
Attorneys for Kuwait Airways Corporation
November 26, 2003
NOTICE: Any person may support or oppose this application by filing an answer and serving a
copy of the answer upon counsel for Kuwait Airways and all persons named on the attached
Service List on or before December 17, 2003.
BEFORE THE
DEPARTMENT OF TRANSPORTATION
WASHINGTON, D.C.
Application of
KUWAIT AIRWAYS CORPORATION
to Amend Foreign Air Carrier Permit
)
)
)
)
)
)
)
Docket No. OST-2003-
Dated: November 26, 2003
APPLICATION OF KUWAIT AIRWAYS CORPORATION
TO AMEND FOREIGN AIR CARRIER PERMIT
Pursuant to 49 U.S.C. § 41302, Part 211 of the Department of Transportation’s (the
"Department") regulations (14 C.F.R. Part 211) and Subpart B of the Department’s Rules of
Practice (14 CFR § 302.201, et seq.), Kuwait Airways Corporation (“Kuwait Airways”) hereby
applies for an amendment to its Foreign Air Carrier Permit (“Permit”), which was most recently
issued by Order 2002-9-27. Kuwait Airways is requesting that its Permit be amended to include
authority to provide additional nonstop operations between Kuwait and New York, NY and to
add the intermediate point of Athens, Greece in addition to the current intermediate point of
Amsterdam, The Netherlands in the conduct of service between Chicago, Illinois and Kuwait.
This application replaces and supersedes Kuwait Airways' Application to Amend Foreign Air
Carrier Permit filed in Docket OST-2002-14073-1 on December 13, 2002.
In support of this application, Kuwait Airways submits the following information in
accordance with Part 211’s requirements for applications to amend foreign air carrier permits (14
C.F.R. § 211.21):
I. INFORMATION REQUIRED BY PART 211
A.
Background Information (§ 211.21(a))
Application of Kuwait Airways
Page 2
§ 211.20(a): Identification of Applicant
The applicant is:
Kuwait Airways Corporation
Kuwait International Airport
P.O. Box 394
Safat, Kuwait 13004
Kuwait Airways Corporation is a public institution formed under the laws of the State of
Kuwait by virtue of Law No. 21/1965. The company is wholly owned by the Government of
Kuwait and controlled by citizens of Kuwait.
§ 211.20(b): Kuwait Air Transport Authority
The name and official address of the government air transport authority of the State of
Kuwait having regulatory jurisdiction over Kuwait Airways is:
Directorate General of Civil Aviation
State of Kuwait
P.O. Box 17
Safat, Kuwait 13001
§ 211.20(i): Operating Authority
Certified evidence, in English, of Kuwait Airways’ operating authority is attached as
Exhibit 1.
§ 211.20(o): Governmental Assistance
As noted in paragraph (a) above, Kuwait Airways is wholly owned by the Government of
Kuwait.
§ 211.20(q): Reciprocity and Comity
Civil aviation relations between the United States and Kuwait are harmonious and
continue to be conducted on the basis of comity and reciprocity. Although there is no air
transport agreement between the United States and Kuwait, the Department has determined on
Application of Kuwait Airways
Page 3
numerous occasions that sufficient reciprocity and comity exist between the U.S. and Kuwait to
support Kuwait Airways’ authority to operate to the United States.1
Moreover, the Government of Kuwait continues to grant fifth freedom traffic rights to the
designated carriers serving Kuwait, subject to reciprocity. While no U.S. carrier is currently
providing direct U.S.-Kuwait service, Kuwait has a long history of granting authority to U.S.
carriers that request the authority to conduct operations similar to those provided by Kuwait
Airways.
§ 211.20(r): Kuwait’s Policy Toward U.S. Applications
See response to paragraph (q) above.
§ 211.20(s): Safety and Tariff Violations
Kuwait Airways has not been involved in any safety or tariff violations during the
preceding five years. In addition, Kuwait Airways’ aircraft have not been involved in any fatal
accidents during the preceding five years.
B.
Description of Proposed Service (§ 211.21(b))
Kuwait Airways’ Permit issued by Order 2002-9-27 authorizes it to operate four
roundtrip flights per week between Kuwait and New York, NY and to operate twice weekly
roundtrip service between Kuwait and Chicago, Illinois, via the intermediate point of
Amsterdam, The Netherlands.
On December 13, 2002, Kuwait Airways applied for exemption authority to operate a
fifth flight between Kuwait and New York, NY on a nonstop basis. See Docket OST-20021
See e.g., Order 2002-9-27 (authorizing renewal of Kuwait Airways’ foreign air carrier permit);
Docket 50257, 60 Fed. Reg. 19,317 (April 17, 1995) (authorizing amendment of Kuwait
Airways’ permit); Order 95-11-17 (authorizing renewal of Kuwait Airways’ foreign air carrier
permit); Order 95-5-5 (granting exemption to conduct foreign air transportation between Kuwait
and Chicago, IL); Order 95-2-33 (authorizing renewal of Kuwait Airways’ foreign air carrier
permit); Order 89-1-9 (authorizing Kuwait Airways’ foreign air carrier permit).
Application of Kuwait Airways
Page 4
14072. On that same date Kuwait Airways submitted an application to amend its foreign air
carrier permit. See Docket OST-2002-14073. By Notice of Action Taken dated January 13,
2003, the Department granted an exemption permitting Kuwait Airways to operate a fifth
roundtrip flight, on a nonstop basis, between Kuwait and New York. See Docket OST-200214072. By Notice of Action Taken dated November 19, 2003, the Department renewed Kuwait
Airway's exemption to operate a fifth roundtrip flight, on a nonstop basis, between Kuwait and
New York for an additional one-year period. The Department has not yet taken any action on
Kuwait Airways' application to amend its Permit filed on December 13, 2002.
On November 26, 2003, Kuwait Airways applied for exemption authority authorizing it
to engage in foreign air transportation of passengers, property and mail between Kuwait and
Chicago, Illinois via the intermediate points of Athens, Greece and Amsterdam, The
Netherlands, at a frequency of two roundtrip flight per week. Kuwait Airways' Permit currently
authorizes Kuwait Airways to provide twice weekly service between Kuwait and Chicago,
Illinois, via the intermediate point of Amsterdam, The Netherlands.
Therefore, Kuwait Airways’ hereby requests the Department to amend its Permit to read
as follows:
PERMIT TO FOREIGN AIR CARRIER
(as amended and reissued)
KUWAIT AIRWAYS CORPORATION
A Flag Carrier of Kuwait
is authorized, subject to the following provisions, the provisions of the Federal Aviation Act of
1958,as-amended and the orders, rules, and regulations of the Department of Transportation, to
engage in scheduled foreign air transportation, carrying persons, property and mail, as follows:
A.
Between a point or points in Kuwait and the terminal point New York, NY, via the
intermediate points London, England and Frankfurt, Germany or on a nonstop
basis;.
Application of Kuwait Airways
Page 5
B.
Between a point or points in Kuwait; the intermediate points Amsterdam,
The Netherlands, and Athens, Greece; and the terminal point Chicago, IL.
The holder shall also be authorized to engage in charter trips in foreign air transportation, subject
to the terms, conditions, and limitations of the Department’s regulations governing charters.
This permit and the exercise of the privileges granted in it shall be subject to the terms,
conditions and limitations in both the order issuing this permit and the attachment to this order,
as well as the following:
1. In the conduct of the operations authorized in A. above, the holder shall not operate more
than five roundtrip flights per week, provided that it shall not operate more than one
roundtrip flight per week via Frankfurt.
2. In the conduct of the operations authorized in B. above, the holder shall not operate more
than two roundtrip flights per week.
Kuwait Airways requests Fifth Freedom authority to operate between Chicago and
Athens, Greece, which is the same authority that it currently has for service between Chicago
and Amsterdam, New York and Frankfurt and New York and London. As requested by section
211.20(p) of the Department's regulations, a summary of the traffic and financial results for the
first full year of normal operations of the additional flight to and from New York and the service
between Chicago, Athens and Kuwait is attached at Exhibit 2.
C.
Financial Material (§ 211.21(c))
Pursuant to § 211.21(c), attached as Exhibit 3 are financial summaries setting forth, in
U.S. dollars, Kuwait Airways’ profit and loss statements and balance sheets for the two most
recent available fiscal years.
D.
Ownership and Control (§ 211.21(d))
The ownership and control of Kuwait Airways has not changed since the preceding
application, filed in Docket No. OST-2001-9455, which served as the basis of granting Kuwait
Airways’ existing Permit.
Application of Kuwait Airways
Page 6
F.
Maintenance Program (§ 211.21(e))
Kuwait Airways’ aircraft maintenance program continues to comply with the provisions
of ICAO Pilots and Airmen Annexes 1, 6 (Part 1) and 7.
F.
Verification (§ 211.11)
Attached as Exhibit 4 is a verification statement signed by Mr. Faisal Al-Zaid, Senior
Regional Director of Kuwait Airways, as required by 14 C.F.R. § 211.11.
II.
AMENDMENT OF KUWAIT AIRWAYS’ FOREIGN AIR CARRIER PERMIT IS
IN THE PUBLIC INTEREST
The amendment of Kuwait Airways’ Permit is in the public interest. Kuwait Airways
is the designated, transatlantic, flag carrier of Kuwait, providing scheduled passenger and cargo
service between Kuwait and the United States. Kuwait Airways’ officers, directors and key
management personnel have extensive aviation-related experience. Kuwait Airways has been
engaged successfully in international aviation operations for more than 50 years and has
conducted U.S.-Kuwait flight operations since 1980. Kuwait Airways is currently the only air
carrier serving Kuwait from the United States. Kuwait Airways has experienced an increase in
the number of passengers traveling between Kuwait and the United States. Moreover, as noted
above, the Department has a long history of recognizing reciprocity and comity between the
United States and Kuwait regarding air transport operations and Kuwait has granted operating
authority to any U.S. carrier that has requested such authority.
III.
ENERGY POLICY AND CONSERVATION ACT STATEMENT
The amendment of Kuwait Airway’s Permit will not constitute a “major regulatory
action” under the Energy Policy and Conservation Act of 1975, as defined by 14 C.F.R. §
313.4(a)(1), since the amendment of Kuwait Airways’ Permit will not result in a near-term
increase in fuel consumption in excess of 10 million gallons.
Application of Kuwait Airways
Page 7
IV.
CONCLUSION
Kuwait Airways is fit, willing and able to perform the air transportation requested in
this application and will continue to conform to the provisions of the laws of the United States
and the rules, regulations and requirements of the Department with respect thereto, and believes
that such transportation is in the public interest.
WHEREFORE, we respectfully request that the Department amend Kuwait
Airways’ Foreign Air Carrier Permit to include the authority set forth above as soon as possible.
A copy of this document has been served in accordance with the attached certificate
of service.
Respectfully submitted,
/s/ Henry C. Cashen II
Henry C. Cashen II
DICKSTEIN SHAPIRO MORIN &
OSHINSKY LLP
2101 L Street, N.W.
Washington, D.C. 20037-1526
(202) 785-9700
Douglas N. Jacobson
LAW OFFICES OF DOUGLAS N. JACOBSON, LLC
Suite 101
513 Saddle Ridge LN
Rockville, MD 20850-5707
(301) 926-0694
Attorneys for Kuwait Airways Corporation
Dated: November 26, 2003