 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on March 18, 2005

   NOTICE OF ACTION TAKEN -- DOCKETS OST-2001-9074

				                                OST-2003-14527 

________________________________________________________________________
___________________________________

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 ATA Airlines, Inc. (ATA) filed 1/31/05 for:

Docket OST-2001-9074:

XX Waiver of advance filing requirement under Part 377

XX Renewal of exemption under 49 U.S.C. 40109 to provide the following
service:

Scheduled foreign air transportation of persons, property, and mail
between (1) the terminal

point Chicago (Midway), Illinois, and the terminal point Cancun, Mexico;
and (2) the terminal

point Chicago (Midway), Illinois, and the terminal point Puerto
Vallarta, Mexico.   

Docket OST-2003-14527:

XX Waiver of advance filing requirement under Part 377

XX Renewal of exemption under 49 U.S.C. 40109 to provide the following
service:

Scheduled foreign air transportation of persons, property, and mail
between the terminal

point Chicago (Midway), Illinois, and the terminal point Zihuatanejo,
Mexico.  

Applicant rep: Marshall S. Sinick (202) 636-6651 DOT Analyst:  Thuy H.
Cooper (202) 366-5423

D I S P O S I T I O N

XX  Granted Waiver Requests (Part 377)

XX  Granted Exemption Renewals, subject to conditions (see below)

The above action was effective when taken: March 18, 2005, through March
18, 2007.

Action taken by:   Paul L. Gretch, Director	

		      Office of International Aviation

XX  The authority granted is consistent with the aviation agreement
between the United States and

Mexico.

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

XX  Holder’s certificate of public convenience and necessity

		XX  Standard Exemption Conditions (attached)

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---------------------------------------------------

Responsive Pleadings:  United Air Lines, Inc. (United) filed a
consolidated answer to ATA’s application with respect to the
Chicago-Cancun/Puerto Vallarta markets.  In its answer, United
recognizes that the two U.S. carrier designation opportunities under the
U.S.-Mexico aviation agreement (for Chicago-Cancun/Puerto Vallarta
services) are currently being used by American Airlines, Inc.
(American), and ATA.  United, states however, that when additional
designation opportunities are available, United will file its own
application to serve those markets. 

________________________________________________________________________
________________________________________

Conditions: The U.S.-Mexico exemption authority granted is subject to
the dormancy notice requirements set forth in condition 7 of Appendix A
of Order 88-10-2.

________________________________________________________________________
________

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
exemption 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, we denied all requests in the referenced Dockets.  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 

U.S. Carrier 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 all applicable requirements of the Federal Aviation
Administration and with all applicable U.S. Government requirements
concerning security, including, but not limited to, 49 CFR Part 1544. 
To assure compliance with all applicable U.S. Government requirements
concerning security, the holder shall, before commencing any new service
(including charter flights) to or from a foreign airport, 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; 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.

05/2004

   ATA provides year-round service in the Chicago-Cancun market, and
provides seasonal service in the Chicago-Puerto Vallarta market.  

   ATA provides seasonal service in the Chicago-Zihuatanejo market. 

   Specifically, on February 14, 2005, United filed a consolidated
answer (1) to the application of ATA for renewal of its
Chicago-Cancun/Puerto Vallarta exemption authority (Docket
OST-2001-9074), and (2) to the application of Brendan Airways, LLC,
d/b/a USA 3000 Airlines (USA 3000), for new exemption authority to serve
the Chicago-Cancun/Puerto Vallarta markets (Docket OST-2005-20262). 
United does not expressly oppose ATA’s application for renewal of its
Chicago-Cancun/Puerto Vallarta exemption authority but, instead, notes
that as long as both incumbent U.S. carriers (American and ATA) continue
to serve the Chicago-Cancun/Puerto Vallarta markets, there is no
available opportunity for United or for USA 3000 to start new services
under the aviation agreement.  United states that, under these
circumstances, USA 3000’s application for Chicago-Cancun/Puerto
Vallarta authority should be dismissed without prejudice to it being
refiled at such time as additional U.S. carrier designation
opportunities become available.  We will handle USA 3000’s
application, in Docket OST-2005-20262, separately.

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