 

			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on February 23, 2005

NOTICE OF ACTION TAKEN -- DOCKET OST-1996-1182

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__________________________________________

This serves as notice to the public of the action described below, taken
by the Department official indicated (no additional confirming order
will be issued in this matter).

Applicant:  Jat Airways 						Date Filed:  January 14, 2005

Relief requested: Exemption authority from 49 U.S.C. § 41301 to engage
in scheduled foreign air transportation of persons, property and mail
between Belgrade, Serbia, on the one hand, and New York, New York, and
Chicago, Illinois, on the other hand.  Jat Airways would conduct these
services pursuant to a wet lease arrangement with a duly authorized and
properly supervised U.S. or foreign air carrier.

If renewal, date and citation of last action:  New authority 

Applicant representative:  Bruce L. McDonald (202) 719-7000

DOT Analyst:  Gordon H. Bingham (202) 366-2404

Responsive pleadings:  United Air Lines, Inc. (United) filed comments in
response to Jat Airways’ application stating that while it does not
oppose Jat Airways’ request, it suggests that we defer action on the
request until April 2005 to allow the United States and
Serbia/Montenegro to conclude an open skies bilateral aviation
agreement.  United states that it currently holds out third-country
code-share service between the U.S. and Belgrade, via Munich, in
conjunction with Lufthansa, and may pursue additional
U.S.-Serbia/Montenegro services in the future.  In that regard, United
believes that to ensure the United States does not forfeit leverage in
the pursuit of an open skies agreement, the Department should defer
action on Jat Airways’ request until Serbia/Montenegro enters into an
open skies agreement with the United States.  Alternatively, United
urges us to limit the duration of any approval to a period of less than
180 days to allow the Department to reassess the state of the
U.S.-Serbia/Montenegro aviation relationship prior to granting Jat
Airways further authority.  No further comments were filed.

	DISPOSITION

Action:  Approved							Action date:  February 23, 2005

Effective dates of authority granted:  February 23, 2005-February 23,
2006

Basis for approval (bilateral agreement/reciprocity):  Reciprocity with
Serbia and Montenegro  

Except to the extent exempted/waived, this authority is subject to the
terms, conditions, and limitations indicated:

X  Standard exemption conditions (Attached)

-2-

Special conditions/Partial grant/Denial basis/Remarks:  Jat Airways may
not conduct U.S. operations with its own aircraft and crews without
further order of the Department.

The Department has considered the concerns raised by United but does not
believe, in the circumstances presented, that withholding the authority
requested by Jat Airways would further our efforts to reach an open
skies agreement with Serbia and Montenegro.  

Action taken by:  Paul L. Gretch, Director	

		     Office of International Aviation	

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Under authority assigned by the Department in its regulations, 14 CFR
Part 385, we found that (1) the applicant was qualified to perform the
proposed operations; (2) our action was consistent with Department
policy; (3) grant of the authority was consistent with the public
interest; and (4) grant of the authority would not constitute a major
regulatory action under the Energy Policy and Conservation Act of 1975. 
To the extent not granted/deferred/dismissed, we denied all requests in
the referenced Docket.  We may amend, modify, or revoke the authority
granted in this Notice at any time without hearing at our discretion.

Persons entitled to petition the Department for review of the action set
forth in this Notice under the Department’s regulations, 14 CFR §
385.30, may file their petitions within seven (7) days after the date of
issuance of this Notice.  This action was effective when taken, and the
filing of a petition for review will not alter such effectiveness.

An electronic version of this document is available on the World Wide
Web at:

  HYPERLINK "http://dms.dot.gov//reports/reports_aviation.asp" 
http://dms.dot.gov//reports/reports_aviation.asp 

Attachment

In the conduct of the operations authorized, the foreign carrier
applicant(s) shall:

(1)  Not conduct any operations unless it holds a currently effective
authorization from its homeland for such operations, and it has filed a
copy of such authorization with the Department;

(2)  Comply with all applicable requirements of the Federal Aviation
Administration, including, but not limited to, 14 CFR Parts 129, 91, and
36, and with all applicable U.S. Government requirements concerning
security, including, but not limited to, 49 CFR Part 1546 or 1550, as
applicable.  To assure compliance with all applicable U.S. Government
requirements concerning security, the holder shall, before commencing
any new service (including charter flights) from a foreign airport that
would be the holder’s last point of departure for the United States,
contact its International Principal Security Inspector (IPSI) to advise
the IPSI of its plans and to find out whether the Transportation
Security Administration has determined that security is adequate to
allow such airport(s) to be served;

(3)  Comply with the requirements for minimum insurance coverage
contained in 14 CFR Part 205, and, prior to the commencement of any
operations under this authority, file evidence of such coverage, in the
form of a completed OST Form 6411, with the Federal Aviation
Administration’s Program Management Branch (AFS-260), Flight Standards
Service (any changes to, or termination of, insurance also shall be
filed with that office);

(4)  Not operate aircraft under this authority unless it complies with
operational safety requirements at least equivalent to Annex 6 of the
Chicago Convention;

(5)  Conform to the airworthiness and airman competency requirements of
its Government for international air services;

(6)  Except as specifically exempted or otherwise provided for in a
Department Order, comply with the requirements of 14 CFR Part 203,
concerning waiver of Warsaw Convention liability limits and defenses;

(7)  Agree that operations under this authority constitute a waiver of
sovereign immunity, for the purposes of 28 U.S.C. 1605(a), but only with
respect to those actions or proceedings instituted against it in any
court or other tribunal in the United States that are: (a)  based on its
operations in international air transportation that, according to the
contract of carriage, include a point in the United States as a point of
origin, point of destination, or agreed stopping place, or for which the
contract of carriage was purchased in the United States; or (b)  based
on a claim under any international agreement or treaty cognizable in any
court or other tribunal of the United States.  In this condition, the
term "international air transportation" means "international
transportation" as defined by the Warsaw Convention, except that all
States shall be considered to be High Contracting Parties for the
purpose of this definition;

(8)  Except as specifically authorized by the Department, originate or
terminate all flights to/from the United States in its homeland;

(9)  Comply with the requirements of 14 CFR Part 217, concerning the
reporting of scheduled, nonscheduled, and charter data;

(10) If charter operations are authorized, except as otherwise provided
in the applicable aviation agreement, comply with the Department's rules
governing charters (including 14 CFR Parts 212 and 380); and

(11) Comply with such other reasonable terms, conditions, and
limitations required by the public interest as may be prescribed by the
Department, with all applicable orders or regulations of other U.S.
agencies and courts, and with all applicable laws of the United States.

This authority shall not be effective during any period when the holder
is not in compliance with the conditions imposed above.  Moreover, this
authority cannot be sold or otherwise transferred without explicit
Department approval under Title 49 of the U.S. Code.

												05/2004

  By letter dated February 4, 2005, Jugoslovenski Aerotransport (JAT)
filed a request under 14 CFR Part 215 of our rules to change its name
from Jugoslovenski Aerotransport (JAT) to Jat Airways.  By letter dated
February 7, 2005, we acknowledged Jugoslovenski Aerotransport’s name
change to Jat Airways under Part 215.

  Jat Airways previously held authority in this docket to engage in
scheduled foreign air transportation of persons, property and mail
between Belgrade, Serbia, on the one hand, and New York, New York, on
the other hand, but exclusively pursuant to a codeshare arrangement with
Uzbekistan Airways.  See Notice of Action Taken issued October 2, 2003,
in the present docket.  That code-share relationship has since
terminated (see Docket OST-2003-15879).

  The Republic of Serbia, together with the Republic of Montenegro, is a
constituent part of The State Union of Serbia and Montenegro.

