 

			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on May 23, 2003

NOTICE OF ACTION TAKEN -- DOCKETS OST-2000-6954 & OST-2000-6842

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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(s):  

	British Midland Airways Limited d/b/a bmi				Date Filed:  April 17,
2003

	United Air Lines, Inc.

Relief requested:

Docket OST-2000-6954--Amend existing exemption from 49 U.S.C. § 41301,
most recently renewed on June 5, 2002 in this docket, to the extent
necessary to permit bmi to engage in scheduled foreign air
transportation of persons, property and mail between Manchester,
England, and (a) Oakland, California, via Washington, D.C. (Dulles); and
(b) Anchorage, Alaska; Dayton, Ohio; Grand Rapids, Michigan; and
Rochester, New York, via Chicago, Illinois, pursuant to a codeshare
arrangement with United Air Lines, Inc.

Docket OST-2000-6842--Amend existing statement of authorization granted
June 5, 2002, in this docket, to the extent necessary to permit United
to display the designator code of British Midland Airways Limited d/b/a
bmi on United’s flights between (a) Washington, D.C. (Dulles) and
Oakland, California; and (b) Chicago, Illinois, and Anchorage, Alaska;
Dayton, Ohio; Grand Rapids, Michigan; and Rochester, New York.

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

Applicant representatives:  Marshall S. Sinick (202) 626-6651 for bmi &
Jeffrey Manley (202) 663-6670 for United

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

Responsive pleadings:  None filed

	DISPOSITION

Action:  Approved								Action date:  May 23, 2003

Effective dates of authority granted:  May 23, 2003-June 5, 2004
(coextensive with the authorities granted bmi and United on June 5,
2002, in Dockets OST-2000-6954 and OST-2000-6842)

Basis for approval (bilateral agreement/reciprocity):  Air Services
Agreement between the United States and the United Kingdom of Great
Britain and Northern Ireland and the 1995 U.S.-U.K. Memorandum of
Consultations

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

X  Standard exemption conditions (attached) & X  Codeshare conditions in
Docket OST-2000-6842

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 

												        Appendix 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;1

(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 (formerly the
Federal Aviation Act of 1958, as amended).

__________________

1  To assure compliance with all applicable U.S. Government requirements
concerning security, the holder should, 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, inform its
Principal Security Inspector of its plans.

 											

U.S. Department of Transportation	

Office of the Secretary of Transportation									        (41301/40109)
10/2002



