			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on June 5, 2003

NOTICE OF ACTION TAKEN -- DOCKET OST-97-2658

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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).

Application of   AIR MICRONESIA, INC.,    filed   4/18/03,  to: 

XX Renew for two years exemption under 49 U.S.C. 40109 to provide the
following service:

Scheduled foreign air transportation of property and mail between Guam,
on the one hand, and Manila and Hong Kong, on the other hand; and the
authority to integrate this exemption with Air Micronesia’s other
exemption and certificate authority.

Applicant rep: R. Bruce Keiner (202) 624-2615    DOT Analyst: Linda
Lundell (202) 366-2336

D I S P O S I T I O N

XX  Granted (subject to conditions, see below)

The authority granted was effective when taken: June 5, 2003,  through 
June 5, 2005   . 

Action taken by: 	 Paul L. Gretch

			Office of International Aviation

XX   The authority granted is consistent with the aviation agreement
between the United States and the Philippines, and the October 19, 2002,
Memorandum of Understanding between the United States and Hong Kong.

 

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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__________

Conditions:  The route integration authority granted is subject to the
condition that any service provided under this exemption shall be
consistent with all applicable agreements between the United States and
the foreign countries involved.  Furthermore, (a) nothing in the award
of the route integration authority granted should be construed as
conferring upon Air Micronesia rights (including fifth-freedom
intermediate and/or beyond rights), to serve markets where U.S. carrier
entry is limited unless Air Micronesia notifies the Department of its
intent to serve such a market and unless and until the Department has
completed any necessary carrier selection														2 

procedures to determine which carrier(s) should be authorized to
exercise such rights; and (b)

should there be a request by any carrier to use the limited-entry route
rights that are included in Air Micronesia’s authority by virtue of
the route integration exemption granted here, but that are not then
being used by Air Micronesia, the holding of such authority by route
integration will not be considered as providing any preference for Air
Micronesia in a comparative carrier selection proceeding to determine
which carrier(s) should be entitled to use the authority at issue. 

The exemption authority granted is without local traffic rights between
Manila and Hong Kong. 

________________________________________________________________________
________________________________________

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 application 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 or 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 ten (10) 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:

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



APPENDIX 

U.S. CARRIER

Standard 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 the applicable requirements of the Federal Aviation
Administration Regulations and with all applicable U.S. Government
requirements concerning security;1 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.

													6/2003

____________________________

1 To assure compliance with all applicable U.S. Government requirements
concerning security, the holder should, 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.

