 

			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on October 7, 2003

NOTICE OF ACTION TAKEN -- DOCKET OST 1999-5212

________________________________________________________________________
________________________________________________________

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).

Joint Applicants:  SCANDINAVIAN AIRLINES SYSTEM (SAS) and LUFTHANSA
GERMAN AIRLINES

Date Filed:  September 23, 2003.

Relief requested:  Amend Statement of Authorization under 14 CFR Part
212 to permit Lufthansa to carry the code of SAS, for an indefinite
duration, on certain scheduled flights operated by Lufthansa, between
Frankfurt, Germany, and Portland, Oregon.

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

Applicants’ representatives:  David Heffernan (Lufthansa),
202-663-6000 & Michael Goldman (SAS), 202-944-3305             

DOT analyst:  Allen F. Brown, 202-366-2405

Responsive pleadings:  None.

	DISPOSITION

Action:  Approved.                                                      
                                         Action date:  October 7, 2003

Effective dates of authority granted:  indefinite duration (see below).

Basis for approval:  Air Transport Agreements between the U.S. and
Germany, Denmark, Norway, and Sweden.

Remarks/Conditions:  The code-share authority that we granted is subject
to the following conditions:  1) The Statement of Authorization will
remain in effect only as long as (i) SAS and Lufthansa continue to hold
the necessary underlying authority to operate the code-share services at
issue, and (ii) the code-share agreement providing for the code-share
operations remains in effect.  2) SAS and Lufthansa must promptly notify
the Department (Office of International Aviation) if the subject
agreement providing for these code-share operations is no longer
effective or the carriers decide to cease operating any or all of the
approved services.  (We expect this notice to be received within ten
days of such noneffectiveness or of such decision and filed in Docket
OST 1999-5212).  3) The code-share operations conducted under this
authority must comply with the terms, conditions and limitations of
Order 96-11-1 (antitrust immunity order) and any subsequent order(s) of
the Department regarding the alliance.  4) The code-share operations
conducted under this authority must comply with 14 CFR Part 257 and with
any amendments to the Department’s regulations concerning code-share
arrangements that may be adopted.  5) Notwithstanding any provisions in
the contract between the subject 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 the
service in computer reservation systems and elsewhere; that the carrier
selling such transportation (that is, 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.
 6) The code-share authority granted here is specifically conditioned so
that neither carrier shall give any force or effect to any contractual
provisions between themselves that are contrary to these conditions.

Action taken by:   Paul L. Gretch, Director	

		      Office of International Aviation	

________________________________________________________________________
_______________________________________________________

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/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
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