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49344 Federal Register / Vol. 71, No.

163 / Wednesday, August 23, 2006 / Rules and Regulations

EFFECTIVE DATE: 0901 UTC, November one amended SIAP, and will be Authority: 49 U.S.C. 106(g), 40103, 40113,
23, 2006. The Director of the Federal depicted on aeronautical charts for pilot 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959–
Register approves this incorporation by reference. The intended effect of this 1963 Comp., p. 389.
reference action under 14 CFR 71.1, rule is to provide adequate controlled § 71.1 [Amended]
subject to the annual revision of FAA airspace for Instrument Flight Rule (IFR)
Order 7400.9 and publication of operations at Barter Island Airport, ■ 2. The incorporation by reference in
conforming amendments. Alaska. 14 CFR 71.1 of Federal Aviation
The FAA has determined that this Administration Order 7400.9N,
FOR FURTHER INFORMATION CONTACT: Gary
regulation only involves an established Airspace Designations and Reporting
Rolf, AAL–538G, Federal Aviation
body of technical regulations for which Points, dated September 1, 2005, and
Administration, 222 West 7th Avenue,
frequent and routine amendments are effective September 15, 2005, is
Box 14, Anchorage, AK 99513–7587;
necessary to keep them operationally amended as follows:
telephone number (907) 271–5898; fax:
(907) 271–2850; e-mail: current. It, therefore—(1) Is not a * * * * *
‘‘significant regulatory action’’ under Paragraph 6005 Class E airspace extending
gary.ctr.rolf@faa.gov. Internet address:
Executive Order 12866; (2) is not a upward from 700 feet or more above the
http://www.alaska.faa.gov/at. surface of the earth.
SUPPLEMENTARY INFORMATION:
‘‘significant rule’’ under DOT
Regulatory Policies and Procedures (44 * * * * *
History FR 11034; February 26, 1979); and (3) AAL AK E5 Barter Island, AK [Revised]
On Monday, June 19, 2006, the FAA does not warrant preparation of a Barter Island Airport, AK
proposed to amend part 71 of the regulatory evaluation as the anticipated (Lat. 70°08′02″ N., long. 143°34′55″ W.)
Federal Aviation Regulations (14 CFR impact is so minimal. Since this a That airspace extending upward from 700
part 71) to revise Class E airspace routine matter that will only affect air feet above the surface within a 4.7-mile
upward from 700 ft. and 1,200 ft. above traffic procedures and air navigation, it radius of the Barter Island Edward Burnell
the surface at Barter Island, AK (71 FR is certified that this rule will not have Sr. Memorial Airport; and that airspace
35225). The action was proposed in a significant economic impact on a extending upward from 1,200 feet above the
order to create Class E airspace substantial number of small entities surface within a 83-mile radius of the Barter
under the criteria of the Regulatory Island Airport, excluding that airspace east of
sufficient in size to contain aircraft 141° West Longitude.
while executing two new and one Flexibility Act.
amended SIAP for the Barter Island The FAA’s authority to issue rules * * * * *
Airport. The new approaches are (1) regarding aviation safety is found in Issued in Anchorage, AK, on August 14,
Area Navigation (Global Positioning Title 49 of the United States Code. 2006.
System) (RNAV (GPS)) RWY 07, Subtitle 1, Section 106 describes the Derril D. Bergt,
Original; and (2) RNAV (GPS) RWY 25, authority of the FAA Administrator. Acting Director, Alaska Flight Service
Original. The amended approach is the Subtitle VII, Aviation Programs, Information Office.
Non Directional Beacon (NDB) RWY 07, describes in more detail the scope of the [FR Doc. E6–13803 Filed 8–22–06; 8:45 am]
Amendment 1. Class E controlled agency’s authority.
BILLING CODE 4910–13–P
airspace extending upward from 700 ft. This rulemaking is promulgated
and 1,200 ft. above the surface in the under the authority described in
Barter Island area is revised by this Subtitle VII, Part A, Subpart 1, Section DEPARTMENT OF TRANSPORTATION
action. Interested parties were invited to 40103, Sovereignty and use of airspace.
participate in this rulemaking Under that section, the FAA is charged Office of the Secretary
proceeding by submitting written with prescribing regulations to ensure
comments on the proposal to the FAA. the safe and efficient use of the 14 CFR Part 294
No public comments have been navigable airspace. This regulation is
[OST Docket No. 2006–25691]
received; thus the rule is adopted as within the scope of that authority
proposed. because it creates Class E airspace RIN 2105–AD58
The area will be depicted on sufficient in size to contain aircraft
executing instrument procedures for the Canadian Charter Air Taxi Operators
aeronautical charts for pilot reference.
The coordinates for this airspace docket Barter Island Airport and represents the AGENCY: Department of Transportation
are based on North American Datum 83. FAA’s continuing effort to safely and (DOT); Office of the Secretary (OST).
The Class E airspace areas designated as efficiently use the navigable airspace.
ACTION: Final rule.
700/1,200 ft. transition areas are List of Subjects in 14 CFR Part 71
published in paragraph 6005 of FAA SUMMARY: DOT is updating its rule
Airspace, Incorporation by reference, concerning Canadian charter air taxis to
Order 7400.9N, Airspace Designations
Navigation (air). make the rule consistent with the 1995
and Reporting Points, dated September
1, 2005, and effective September 15, Adoption of the Amendment U.S.-Canada bilateral aviation
2005, which is incorporated by agreement. When promulgated in 1981,
■ In consideration of the foregoing, the the rule comported with the 1974 U.S.-
reference in 14 CFR 71.1. The Class E
Federal Aviation Administration Canada bilateral aviation agreement
airspace designation listed in this
amends 14 CFR part 71 as follows: governing non-scheduled air services.
document will be published
subsequently in the Order. PART 71—DESIGNATION OF CLASS A, However, the rule has not been updated
CLASS B, CLASS C, CLASS D, AND to reflect the more liberal 1995 bilateral.
The Rule Consequently, the rule, in its current
CLASS E AIRSPACE AREAS;
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This amendment to 14 CFR part 71 AIRWAYS; ROUTES; AND REPORTING form, contains certain restrictions on
revises Class E airspace at the Barter POINTS Canadian charter air taxis that are
Island Airport, Alaska. This Class E contrary to the 1995 bilateral. This final
airspace is revised to accommodate ■ 1. The authority citation for 14 CFR rule eliminates or amends those
aircraft executing two new SIAPs and part 71 continues to read as follows: provisions. It also makes several other

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Federal Register / Vol. 71, No. 163 / Wednesday, August 23, 2006 / Rules and Regulations 49345

technical changes to the rule and adds ‘‘1974 Bilateral’’).3 On November 10, and, instead, merely require that the
a provision making it clear that 2005, Delegations from the United flight in question make a traffic stop in
Canadian charter air taxis are exempt States and Canada initialed an ad the airline’s homeland.7 Accordingly,
from the statutory requirement of referendum protocol to the Agreement we are removing section 294.82, as
foreign air carriers to file family that would further expand the traffic described below, in order to make clear
assistance plans. rights of the air carriers of both nations that the third-country traffic rights
DATES: Effective Date: This rule is (hereinafter the ‘‘Protocol’’).4 applicable to Canadian charter air taxis
effective on September 22, 2006. In 1981, at the time part 294 was are coextensive with the rights of all
promulgated, it comported with the Canadian airlines under the Agreement,
FOR FURTHER INFORMATION CONTACT:
1974 Bilateral. However, part 294 has or, when the Protocol becomes effective,
Jonathan Dols, Supervisory Trial not been updated since then to reflect the new rights under that Protocol.
Attorney, Office of the Assistant General the more liberal aviation relationship (3) Section 294.88 prohibits certain
Counsel for Aviation Enforcement and between the U.S. and Canada that is set trans-border operations to or from
Proceedings, Office of the General forth in the 1995 Bilateral. points west of Blind River, Ontario, and
Counsel, U.S. Department of Consequently, although intended to east of the Ontario-Manitoba provincial
Transportation, 400 7th Street, SW., facilitate the trans-border operations of line (the ‘‘Northwest Ontario
Room 4116, Washington, DC 20590; Canadian charter air taxis, part 294 has restriction’’). The Agreement grants
(202) 366–9342 (Voice) or (202) 366– ironically become, in some respects, an traffic rights to the carriers of both
7152 (Fax). impediment to them. For example, the nations between any points or points in
SUPPLEMENTARY INFORMATION: plain language of the following the United States and any point or
Background provisions of part 294 contradicts either points in Canada.8 The CAB included
the spirit or the language of the the Northwest Ontario restriction in part
Part 294 of the Department’s aviation Agreement or the language as proposed 294 because the Canadian Air Transport
economic regulations (14 CFR part 294) by the Protocol: Committee had imposed a similar
exempts foreign air carriers that have (1) Sections 294.81(b) and (b)(1) restriction on the operations of U.S. air
registered with the Department as permit stopovers at points within the taxis.9 We are aware of no such
‘‘Canadian charter air taxis’’ from United States only on round-trip flights restriction today on U.S. air taxis and,
various provisions in Title 49 of the originating in Canada. The Agreement therefore, see no basis for the Northwest
United States Code, including the permits stopovers on one-way and Ontario restriction to remain in part
requirement in sections 41301 and round-trip flights originating in either 294.
41302 to obtain a foreign air carrier country.5 Section 294.81(b)(2) requires (4) Section 294.89 imposes an uplift
permit before engaging in foreign air that the same aircraft stay with its ratio. The Agreement explicitly
transportation. In 1981, when the Civil passengers throughout their journey. prohibits uplift ratios.10
Aeronautics Board 1 (CAB) promulgated The Agreement contains no such These differences between part 294
part 294, it intended to provide restriction. and the Agreement have created
Canadian charter air taxis with a (2) Section 294.82 prohibits confusion in the aviation industry and
simplified and expedited economic registrants from transporting persons or imposed unnecessary costs on Canadian
licensing process. Central to the CAB’s property whose journey includes a charter air taxis.11 Moreover, they
reasoning in establishing this special prior, intervening, or subsequent undermine the original intent of part
licensing status for Canadian charter air movement by air to or from a point not 294, which was to expedite the
taxis was its opinion that ‘‘we [the in the United States or Canada. licensing process for Canadian charter
United States] have good aviation However, the Agreement allows the air taxis. Under present circumstances,
relations with our Canadian transportation of persons and property there is a strong incentive for Canadian
neighbors’’—a description that is even by airlines designated by each party to charter air taxis to eschew the
more apt today.2 carry international charter traffic of ‘‘expedited’’ registration process of part
On February 24, 1995, the United passengers and cargo between any point 294 in favor of undertaking to meet the
States and Canada greatly liberalized or points in the territory of the other very requirements from which the CAB
their commercial aviation relationship party and any point or points in a third sought to relieve them, i.e., from having
by signing the Air Transport Agreement country or countries, provided such to obtain a foreign air carrier permit. In
Between the Government of the United traffic is carried via the territory of the recognition of these issues, and because,
States of America and the Government party that has designated the airline and as a general matter, the Department
of Canada (hereinafter the ‘‘Agreement’’ makes a stopover in that territory for at seeks to remove unnecessary regulatory
or the ‘‘1995 Bilateral’’). Among other least two consecutive nights.6 Moreover, burdens and to advance the United
things, the Agreement granted American the Protocol would further expand States-Canada air transport relationship,
and Canadian air carriers, including third-country traffic rights by removing
7 Annex III of the Agreement, as proposed to be
Canadian charter air taxis, rights to the two-night stopover requirement, amended by Article 7 of the Protocol initialed at
conduct a wide array of operations not Washington, November 10, 2005.
permitted under the countries’ previous 3 Non-Scheduled Air Service Agreement Between 8 Annex III.

bilateral agreement governing non- the Government of the United States of America 9 Order 78–11–87, In the Matter of Charter
and the Government of Canada, signed at Ottawa Authority of Canadian Foreign Air Carriers, (CAB
scheduled air services, which had been on May 8, 1974; entered into force May 8, 1974, Docket 34051) (November 16, 1978).
in force since 1974 (hereinafter the with exchange of notes. 10 Article 4 of the Agreement.
4 Protocol to the Air Transport Agreement
11 The Department has anecdotal evidence of
1 The Department assumed the CAB’s jurisdiction Between the Governments of the United States of Canadian charter air taxi operators turning down
over aviation economic matters when the CAB America and the Government of Canada, initialed business otherwise permitted under the Agreement
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‘‘sunsetted’’ on December 31, 1984. Civil ad referendum at Washington on November 10, for fear of violating part 294. Some carriers have
Aeronautics Board Sunset Act of 1984, Public Law 2005. The Protocol has not yet been signed by the incurred the added legal costs of applying to the
98–443, October 4, 1984, and Airline Deregulation two Governments. By its terms, it will not come Department for exemptions from certain of the
Act of 1978, Public Law 95–504, October 24, 1978. into effect before September 1, 2006. contradictory provisions in part 294 as a means of
2 Proposed Rule to Classify and Exempt Canadian 5 Annex III of the Agreement.
avoiding possible enforcement action for violating
Air Taxi Operators, 45 FR 80117, December 3, 1980. 6 Id. those provisions.

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49346 Federal Register / Vol. 71, No. 163 / Wednesday, August 23, 2006 / Rules and Regulations

the Department amends 14 CFR 294.81 the Federal Aviation Administration compliance costs by eliminating any
and removes 14 CFR 294.82; 294.88; and with a copy of the carrier’s approved need for Canadian charter air taxis to
294.89. OST Form 4505. apply for an exemption to the outdated
In addition, the Foreign Air Carrier (5) Amend sections 294.22 to make provisions of 14 CFR part 294 that are
Family Support Act of 1997 (Pub. L. clear that a refiling may be made using not in consonance with the Agreement.
105–148) (hereinafter ‘‘FACFSA’’), electronic mail, as well as by other Because these amendments will have
added to Title 49 of the United States means, so long as it is received by the minimal economic impact on the
Code section 41313, ‘‘Plans to address Department within 30 days of a change covered carriers, no further regulatory
needs of families of passengers involved in a carrier’s name or operations. evaluation is necessary.
in foreign air carrier accidents.’’ Section (6) Amend sections 294.32 to identify
the correct section in 14 CFR part 212 Regulatory Flexibility Act
41313 requires all foreign air carriers
with authority to operate to or from the that covers the bonding and escrow The Regulatory Flexibility Act (5
United States to develop and submit requirements applicable to foreign air U.S.C. 601 et seq.) requires an agency to
plans to the Department and the carriers. assess the impact of regulation on small
National Transportation Safety Board entities unless the agency determines
Regulatory Analysis and Notices that a rule is not expected to have a
(NTSB) that address the needs of
families of passengers involved in The Administrative Procedure Act significant economic impact on a
certain aircraft accidents. (APA) (5 U.S.C. 553) generally requires substantial number of small entities.
In 1998, the Department interpreted public notice and an opportunity for The Department certifies that this final
section 41313 as not applying to small public comment before issuance of a rule will not have a significant
aircraft operations and issued an order final rule. It, however, provides an economic impact on a substantial
that exempted all foreign air carriers exception when an agency finds that number of small entities. The
holding Departmental authority to there is good cause for dispensing with amendments to 14 CFR part 294 will not
conduct foreign air transportation using such procedures because they are change U.S. law regarding the trans-
only small aircraft from the impracticable, unnecessary, or contrary border operations of Canadian charter
requirements of section 41313.12 to the public interest. We have air taxis or the rights available to
Although this order was served on those determined that, under 5 U.S.C. Canadian charter air taxis under the
Canadian charter air taxis that, at the 553(b)(3)(B), it is unnecessary and 1995 U.S.-Canada bilateral aviation
time, were registered with the contrary to the public interest to utilize agreement, nor will they add any
Department, the exemption was, the notice of proposed rulemaking and regulatory requirements.
through an administrative oversight, not public comment procedures for this rule
Executive Order 13132 (Federalism)
subsequently codified in 14 CFR part because it is a corrective action required
294. Therefore, the Department takes to make the regulation consistent with This final rule has been analyzed in
this opportunity to amend 14 CFR an international agreement. The accordance with the principles and
294.10 (Exemption authority) to codify Department notes that, as a temporary criteria contained in Executive Order
this order and, thereby, make it clear measure, it has in the past granted 13132. The Department has determined
that Canadian charter air taxis are not carrier-specific exemptions obviating that this proposal will not have a
required to submit family assistance any problems for the recipient that substantial direct effect on the States, on
plans to the Department or the NTSB. would have been caused by the the relationship between the national
As a final matter, the Department discrepancies between part 294 and the government and the States, or on the
hereby makes the following additional, Agreement.13 In addition, the rule distribution of power and
non-substantive administrative changes codifies an existing Departmental order responsibilities among the various
to part 294: exempting Canadian charter air taxis levels of government, and therefore has
(1) Amend section 294.2(a) to reflect from the statutory requirement of no federalism implications.
the current U.S.-Canada bilateral foreign air carriers to file family Executive Order 13084
aviation agreement signed in 1995. assistance plans. Thus, in effect, the
revised regulations merely codify This final rule has been analyzed in
(2) Amend sections 294.20, 294.20(b),
current Departmental practice. All other accordance with the principles and
294.21(b), 294.22, and 294.40 to reflect
changes are purely administrative in criteria contained in Executive Order
the change in organizational structure
nature. 13084 (‘‘Consultation and Coordination
that occurred when the Special
with Indian Tribal Governments’’).
Authorities Division, which is the Executive Order 12866 (Regulatory Because this final rule will not
Departmental program office that Planning and Review) and DOT significantly or uniquely affect the
administers part 294, was transferred Regulatory Policies and Procedures Indian tribal communities, and will not
from the Office of Aviation Analysis to
The Department has determined that impose substantial direct compliance
the Office of International Aviation.
the amendments to 14 CFR part 294 in costs, the funding and consultation
(3) Amend sections 294.3(e),
the final rule are not a significant requirements of the Executive Order do
294.21(g), 294.50(d) to clarify that air
regulatory action under Executive Order not apply.
carrier authority granted by the
Government of Canada is a condition of 12866 or under the Department’s Unfunded Mandates Reform Act
receiving and maintaining an effective Regulatory Policies and Procedures. It
Title II of the Unfunded Mandates
registration under part 294. has not been reviewed by the Office of
Reform Act of 1995 (the Act), enacted as
(4) Amend sections 294.21(e)(1) to Management and Budget. The
Public Law 104–4 on March 22, 1995,
make clear that the onus rests on the amendments will impose no additional
requires each Federal agency, to the
carrier, not the Department, to provide costs on the affected carriers. Rather,
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extent permitted by law, to prepare a


they will minimally reduce regulatory
12 Order 98–1–31, In the Matter of the Foreign Air
written assessment of the effects of any
Carrier Family Support Act of 1997 Exemption 13 See, e.g., Notice of Action Taken, London Air Federal mandate in a proposed or final
Under 49 U.S.C. § 40109, (DOT Docket 98–3304) Services Limited, Exemption from 49 U.S.C. § 41301 agency rule that may result in the
(January 29, 1998). (DOT Docket 2003–15123) (August 22, 2003). expenditure by State, local, and tribal

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Federal Register / Vol. 71, No. 163 / Wednesday, August 23, 2006 / Rules and Regulations 49347

governments, in the aggregate, or by the ■ 7. In § 294.21, revise paragraph (b), foreign air carriers as set forth in § 212.8
private sector, of $100 million or more paragraph (e)(1), and paragraph (g) to of this chapter.
(adjusted annually for inflation) in any read as follows: * * * * *
one year. This final rule does not
contain any Federal mandate that would § 294.21 Procedure on receipt of § 294.40 [Amended]
registration form.
result in such expenditures. Therefore, ■ 10. Remove the words ‘‘Office of
the requirements of Title II of the Act do * * * * *
Aviation Analysis’’ in § 294.40 and add
not apply. (b) Any person objecting to the
in their place the words ‘‘Office of
registration of a Canadian charter air
Paperwork Reduction Act International Aviation.’’
taxi operator shall file an objection with
the Office of International Aviation, ■ 11. Revise paragraph (d) of § 294.50 to
This final rule does not contain
Special Authorities Division, and serve read as follows:
information collection requirements that
require approval by the Office of a copy on the applicant within 28 days § 294.50 Cancellation, revocation, or
Management and Budget (OMB) under after the Department receives the suspension of registration.
the Paperwork Reduction Act (44 U.S.C. properly completed registration * * * * *
2507 et seq.). application. Objections shall include (d) The Government of Canada
any facts and arguments upon which terminates or suspends authority it
List of Subjects in 14 CFR Part 294 they are based. granted to the registrant to conduct
Air taxis, Canada, Charter flights, * * * * * charter air service between the United
Reporting and recordkeeping (e) * * * States and Canada.
requirements. (1) Issue the registration by stamping * * * * *
■ For the reasons set forth in the its effective date on OST Form 4505 and ■ 12. Revise paragraph (a) of § 294.60 to
preamble, the DOT amends 14 CFR part sending a copy of it to the carrier. read as follows:
294 as follows: * * * * *
■ 1.–2. The authority for 14 CFR part (g) A registration shall not be issued § 294.60 Applications for authorization to
294 continues to read as follows: until the Department receives evidence conduct individual operations or programs
that the applicant has effective authority not otherwise permitted by this part.
Authority: 49 U.S.C. Chapters 401 and 417.
issued by the Government of Canada. (a) Where the terms, conditions, or
■ 3. Revise paragraph (a) of § 294.2 to The applicant must provide copies of its limitations of this part, particularly
read as follows: Air Carrier Operating certificate and § 294.81, require prior approval of
non-scheduled international license individual flights or charter programs,
§ 294.2 Definitions.
issued by the Government of Canada. the registrant shall apply for such
* * * * * approval by filing three copies of OST
(a) Agreement means the Air * * * * *
Form 4540 with the Office of
Transport Agreement Between the ■ 8. In § 294.22, revise the introductory
International Aviation, Foreign Air
Government of the United States and text and paragraph (a)(1) to read as Carrier Licensing Division. OST Form
the Government of Canada, signed at follows: 4540 may be obtained from the Foreign
Ottawa, February 24, 1995, with § 294.22 Notification to the Department of Air Carrier Licensing Division.
Annexes and any amendments, change in operations or identifying * * * * *
supplements, reservations, or information.
supersessions to it. Registrants shall refile a copy of OST § 294.81 [Amended]
* * * * * Form 4505 with the Department’s Office ■ 13. Amend § 294.81 by revising
■ 4. Revise paragraph (e) of § 294.3 to of International Aviation, Special paragraph (b) to read as follows:
read as follows: Authorities Division, upon any of the
§ 294.81 Local traffic prohibited.
following events. The refiling shall be
§ 294.3 General requirements for Canadian sent by electronic mail, or other means, * * * * *
charter air taxi operators.
so as to be received by the Department (b) A registrant may grant stopover
* * * * * not later than 30 days after the reported privileges at any point or points in the
(e) Has effective authority from the event has occurred. United States to passengers and their
Government of Canada to conduct (a) * * * accompanied baggage as part of a single
charter air service between the United (1) A registration ceases to be in effect continuous operation to or from Canada.
States and Canada. unless the Government of Canada § 294.82 [Remove]
* * * * * amends the registrant’s Air Carrier
Operating Certificate to reflect the ■ 14. Remove section 294.82.
■ 5. Add paragraph (d) to § 294.10 so
that it reads as follows: registrant’s new name within 60 days of § 294.88 [Remove]
the name change and the registrant
§ 294.10 Exemption authority. submits to the Department a copy of its ■ 15. Remove section 294.88.
* * * * * amended Canadian authority. § 294.89 [Remove]
(d) Section 41313 (aviation disaster * * * * *
family assistance plans for foreign air ■ 16. Remove section 294.89.
■ 9. Revise paragraph (a) of § 294.32 to
carriers) read as follows: Issued this 14th day of August, 2006, at
Washington, DC, under authority delegated
§ 294.20 [Amended] § 294.32 Security arrangements for in 49 CFR 1.56a.
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■ 6. Amend § 294.20 introductory text operating Public Charters. Susan McDermott,


and paragraph (b) by removing the * * * * * Deputy Assistant Secretary of Transportation
words ‘‘Office of Aviation Analysis’’ (a) The Canadian charter air taxi for Aviation and International Affairs.
and adding in their place the words operator shall meet the bonding or [FR Doc. E6–13664 Filed 8–22–06; 8:45 am]
‘‘Office of International Aviation.’’ escrow requirements applicable to BILLING CODE 4910–62–P

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