	

                    UNITED STATES OF AMERICA

            DEPARTMENT OF TRANSPORTATION

                    OFFICE OF THE SECRETARY

                             WASHINGTON, DC

Issued by the Department of Transportation on April 19, 2004

NOTICE OF ACTION TAKEN -- DOCKETS OST-2001-11152 AND OST-96-1839

________________________________________________________________________
_____________

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).

Applications of   US Airways, Inc.   filed  2/5/2004, as amended
4/2/2004  for:	

XX  Exemption for two years pursuant to 49 U.S.C. §40109 to provide the
following services:

DOCKET OST-01-11152

Scheduled foreign air transportation of persons, property and mail (1)
between Washington DC and Bermuda (renewal of existing authority), and
(2) between Chicago, Illinois and Bermuda (new authority). 

DOCKET OST-96-1839 

Scheduled foreign air transportation of persons, property and mail
between Charlotte, North Carolina, and Bermuda (renewal of existing
authority).

US Airways requests that the exemption authorities described above be
issued with a common expiration date to run concurrently with its other
Bermuda exemption authority in Docket OST-03-14671, set to expire on
March 18, 2005.  US Airways also requests that these Bermuda exemption
authorities be consolidated into one of the referenced dockets.  

Applicant rep:  Howard Kass     (703) 872-5230     DOT Analyst:  Gerald
Caolo    (202) 366-2406

D I S P O S I T I O N

XX  Granted (Subject to conditions, see below)

The above action was effective when taken: April 19, 2004, through March
18, 2005

Action taken by:   Paul L. Gretch, Director	

		    Office of International Aviation	

XX   The authority granted is consistent with the aviation agreement
between the United States and the United Kingdom.          

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

	XX  Holder’s certificates of public convenience and necessity

	XX  Standard Exemption Conditions (attached)

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___________________

Remarks:  We have granted the carrier’s request to consolidate the
exemption authority granted here into Docket OST-2001-11152.  Thus, the
carrier may henceforth file in Docket OST-2001-11152 at such time as it
seeks to make requests concerning its exemption authority to serve the
Charlotte/Chicago/Washington-Bermuda markets.  

The authority for the Washington-Bermuda market for which US Airways
requested renewal expired April 18, 2004, but had been kept in force
pursuant to the provisions of the Administrative Procedure Act, 5 U.S.C.
558(c), as implemented by 14 CFR Part 377, pending action on its
timely-filed renewal application.  

Conditions:  The code-share operations conducted under this
authorization are subject to the following conditions:

 The code-sharing operations conducted under this authority must comply
with 14 CFR 257 and with any amendment to the Department’s regulations
concerning code-share arrangements that may be adopted.  Notwithstanding
any provisions in the contract between the carriers, our approval here
is expressly conditioned upon the requirements that the subject foreign
air transportation be sold in the name of the carrier holding out such
service in computer reservation systems and elsewhere; that the carrier
selling such transportation (i.e., the carrier shown on the ticket)
accept responsibility for the entirety of the code-share journey for all
obligations established in its contract of carriage with the passenger;
and that the passenger liability of the operating carrier be unaffected;
and   

 The authority granted here is specifically conditioned so that neither
US Airways nor United Air Lines shall give any force or effect to any
contractual provisions between themselves that are contrary to these
conditions.

___________________________________

On the basis of data officially noticeable under Rule 24(g) of the
Department’s regulations, we found the applicant qualified to provide
the services authorized.

Under authority assigned by the Department in its regulations, 14 CFR
Part 385, we found that (1) our action was consistent with Department
policy; (2) grant of the authority was consistent with the public
interest; and (3) 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, 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 order 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 



U.S. Carrier Exemption Conditions

In the conduct of the operations authorized, the U.S. carrier
applicant(s) shall:

(1) Hold at all times effective operating authority from the government
of each country served;

(2) Comply with applicable requirements concerning oversales contained
in 14 CFR 250 (for scheduled operations, if authorized);

(3) Comply with the requirements for reporting data contained in 14 CFR
241;

(4) Comply with requirements for minimum insurance coverage, and for
certifying that coverage to the Department, contained in 14 CFR 205;

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

(6) Comply with all applicable requirements of the Federal Aviation
Administration and with all applicable U.S. Government requirements
concerning security.  To assure compliance with all applicable U.S.
Government requirements concerning security, the holder shall, before
commencing any new service (including charter flights) to or from a
foreign airport, contact its Principal Security Inspector (PSI) to
advise the PSI 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; and

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

The authority granted shall be effective only during the period when the
holder is in compliance with the conditions imposed above.

08/2003

 US Airways amended its application in Docket OST-01-11152 by requesting
new authority between Chicago and Bermuda.

 US Airways states that it plans to provide service between Chicago and
Bermuda under a code-share arrangement with United Air Lines.  However,
US Airways states that it wants the opportunity to provide service to
this Bermuda market either directly or through a code-share arrangement.


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