 

			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on August 14, 2002

NOTICE OF ACTION TAKEN -- DOCKET OST-99-5848

________________________________________________________________________
__________________________________________

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:  Lineas Aereas Privadas Argentinas, S.A. (LAPA)		Date Filed: 
July 17, 2002

Relief requested: Renew exemption from 49 U.S.C. § 41301 to engage in
scheduled foreign air transportation of persons, property and mail
between Buenos Aires, Argentina, and Atlanta, Georgia; and to conduct
charters subject to 14 CFR Part 212 of our rules.

If renewal, date and citation of last action:  August 2, 2001, in this
docket

Applicant representative:  Gregory S. Levine (212) 980-0002

Responsive pleadings:  None filed

	DISPOSITION

Action:  Approved								Action date:  August 14, 2002

Effective dates of authority granted:  August 14, 2002-August 14, 2003

Basis for approval (bilateral agreement/reciprocity):  Bilateral
aviation agreement between the United States and Argentina (the
Agreement)

Except to the extent exempted/waived, this authority is subject to the
terms, conditions, and limitations indicated:  X Standard exemption
conditions (attached)

Special conditions/Partial grant/Denial basis/Remarks:  LAPA may not
conduct U.S. operations with its own aircraft and crews without further
order of the Department.  The authority granted above is subject to the
prior approval requirement for passenger charter operations contained in
Order 95-2-29.

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) 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 A

FOREIGN AIR CARRIER CONDITIONS OF AUTHORITY

In the conduct of the operations authorized, the holder 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;

(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, comply  (except as otherwise
provided in the applicable bilateral agreement) 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.

 											

U.S. Department of Transportation	

Office of the Secretary of Transportation								        (41301/40109)
9/98

  We note that LAPA sought authority for a two year period.  However, as
is our usual practice in conferring exemption authority in the
circumstances presented, we are limiting the term of authority to one
year.  LAPA may, of course, seek renewal of this authority in accordance
with the Department’s regulations.  

  Argentina is currently a Category 2 country under the FAA’s
International Aviation Safety Assessment Program (IASA).

  While the Agreement provides for the operation of Third and Fourth
Freedom all-cargo charters without limitation, the Agreement places a
numerical limit on the number of Third and Fourth Freedom passenger
operations that can be operated by the carriers of Argentina.  The
Agreement does not provide for the operation of Fifth Freedom passenger
or cargo charter operations, and all such charters continue to be
subject to prior approval under Part 212 of our rules. 

