 

			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on December 6, 2005

NOTICE OF ACTION TAKEN -- DOCKET OST-2000-8562

________________________________________________________________________
________________________________________________________

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:  Vietnam Airlines Corporation (Vietnam Airlines)		 	Date
Filed:  June 10, 2003

											  as supplemented November 18, 2005										

Relief requested:  Amend current exemption from 49 USC § 41301 (which
permits the applicant to conduct limited codeshare operations between
Hanoi/Ho Chi Minh City, and Los Angeles/San Francisco, California, via
Taipei, Taiwan), to permit the applicant to conduct scheduled foreign
air transportation of persons, property, and mail between points behind
Vietnam, via Vietnam and intermediate points, to various authorized U.S.
points, and beyond.  The applicant also requests, to the extent
necessary, authority to co-terminalize the U.S. points listed in
Attachment 2 to allow blind-sector beyond-gateway codeshare services
between those points with authorized U.S. carriers.  Furthermore, the
applicant requests that the amended exemption authority be granted for a
two-year term. 

Date and citation of last action:  April 23, 2004, in this Docket 

Applicant representative:  George U. Carneal, 202-637-6546 	DOT Analyst:
 Robert J. Finamore, 202-366-2405

Responsive pleadings:  On December 5, 2005, we received an answer in
support of the supplemental application from the city of San Jose and
the Norman Y. Mineta San Jose International Airport.

DISPOSITION

Action:  Approved								Action date:  December 6, 2005

Effective dates of authority granted:  December 6, 2005 – December 6,
2007.

Basis for approval (bilateral agreement/reciprocity):  United States -
Vietnam Air Transport Agreement.

Except to the extent exempted/waived, this authority is subject to the
terms, conditions, and limitations of our standard exemption conditions
(attached).  

Special conditions/Remarks:  Vietnam Airlines may not itself operate
flights to or from the United States using its own aircraft and crews
without further authority from the Department.  In the conduct of the
services authorized, Vietnam Airlines may conduct the operations
authorized herein only by codeshare operations with authorized U.S. or
third-country carriers.  

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 

						Attachment 1

FOREIGN CARRIER EXEMPTION CONDITIONS                                    
                              

In the conduct of the operations authorized, the foreign carrier
applicant(s) 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, including, but not limited to, 49 CFR Part 1546 or 1550, as
applicable.  To assure compliance with all applicable U.S. Government
requirements concerning security, the holder shall, 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,
contact its International Principal Security Inspector (IPSI) to advise
the IPSI 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;

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.                    
                                          

 05/2004

Attachment 2

Atlanta, Georgia

Austin, Texas

Boston, Massachusetts

Chicago, Illinois

Dallas/Fort Worth, Texas

Denver, Colorado

Detroit, Michigan

Honolulu, Hawaii

Houston, Texas

Las Vegas, Nevada

Los Angeles, California

Miami, Florida

Minneapolis, Minnesota

New York, New York

Newark, New Jersey

Oklahoma City, Oklahoma

Philadelphia, Pennsylvania

Phoenix, Arizona

Portland, Oregon

St. Louis, Missouri

San Francisco, California

San Jose, California

Seattle, Washington

Washington, D.C.

Wichita, Kansas

 Vietnam Airlines intends to use this authority for its existing
codeshare operations with China Airlines, its proposed codeshare
operations with American Airlines, and potential future operations with
these and other authorized carriers.  The U.S. points to which the
applicant is proposing service and which have now been formally selected
through a diplomatic note from the Government of Vietnam are listed in
Attachment 2.  The applicant proposes to serve these U.S. points on a
codeshare-only basis on flights operated by authorized U.S. or
third-country carriers holding the necessary economic authority and/or
statements of authorization.  The applicant proposes to introduce
codeshare services with American Airlines on or about February 1, 2006
(see application of American Airlines in Docket OST-2005-23102).

