[Federal Register Volume 59, Number 31 (Tuesday, February 15, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-3513]


[[Page Unknown]]

[Federal Register: February 15, 1994]


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DEPARTMENT OF TRANSPORTATION
Office of the Secretary

 

Wet Lease Approvals Under Part 207

    The Department has recently become aware of instances in which U.S. 
air carriers may have violated the requirements of part 207 of the 
Department's rules (14 CFR part 207) regarding the prior approval of 
long-term wet leases to foreign carriers.
    Section 207.10 of the Department's rules (14 CFR 207.10) requires 
that U.S. carriers obtain a statement of authorization prior to 
performing service for a foreign air carrier pursuant to a long-term 
wet lease. A long-term wet lease is defined as a lease under which the 
lessor provides aircraft and crews for a term that ``either (a) lasts 
more than 60 days, or (b) is part of a series of such leases that 
amounts to a continuing arrangement lasting more than 60 days.''
    Confusion has arisen over when extensions or renewals of non-
exclusive, short-term leases, resulting in terms of longer than 60 
days, trigger the approval requirements of section 207.10. While the 
original intention of the lessor or lessee may not be to engage in a 
lease of extended duration, a variety of unfore-seen circumstances, 
such as delays in new aircraft delivery to the lessee, may result in 
continuation of leases beyond the 60- day short-term limit. In other 
instances, the desire on the part of the lessee to maintain flexibility 
may preclude a long-term agreement.
    For purposes of clarifying the Department's enforcement policy 
under part 207, we wish to take this opportunity to state that U.S. 
carriers must submit wet leases with foreign carrier lessees, whether 
or not they are exclusive, to the Department for prior approval under 
Sec. 207.10 whenever it becomes apparent that the combined term of the 
original wet lease and any extensions or renewals will exceed 60 days. 
The Department's Office of Aviation Enforcement and Proceedings has 
advised us that, while instances in the recent past involving a series 
of leases violating Sec. 207.10 have resulted in warning letters to the 
carriers, future violations may be grounds for formal enforcement 
action including the assessment of civil penalties. If you have 
questions regarding this matter, please contact the U.S. Air Carrier 
Licensing Division, Office of International Aviation at (202) 366-2390, 
or the Office of Aviation Enforcement and Proceedings, Office of the 
General Counsel at (202) 366-9349.
    We will serve a copy of this notice on all U.S. and foreign air 
carriers and will publish a copy in the Federal Register.

    Issued in Washington, D.C., on February 9, 1994.
Paul L. Gretch,
Director, Office of International Aviation.
[FR Doc. 94-3513 Filed 2-14-94; 8:45 am]
BILLING CODE 4910-62-P