	

                    UNITED STATES OF AMERICA

            DEPARTMENT OF TRANSPORTATION

                    OFFICE OF THE SECRETARY

                             WASHINGTON, DC

Issued by the Department of Transportation on July 26, 2004

NOTICE OF ACTION TAKEN -- DOCKET OST-2001-9766

________________________________________________________________________
_____________

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   US Airways, Inc.   filed   6/3//04  to:

XX  Amend exemption under 49 U.S.C. §40109 granted in this docket on
May 16, 2003, to:

Authorize scheduled foreign air transportation of persons, property, and
mail between points in the United States and points in the Bahamas,  and
to integrate this authority with its existing authorities.  US Airways
initially intends to operate this service pursuant to a code-share
arrangement with Bahamasair Holdings Limited.

Applicant rep:  Howard Kass (703) 872-5230  DOT Analyst:  Sylvia Moore
(202)-366-6519

Gulfstream International Airlines filed an answer objecting to the
application.  Gulfstream states that Bahamasair is delinquent in filing
its required T-100 traffic reports from October 2002 through at least
December 2003, creating a significant competitive disadvantage for other
airlines offering U.S. Bahamas service which have reported their
traffic.

Bahamasair filed a reply stating it did submit T-100 reports for the
period October 2002 through December 2003.  Bahamasair states, however,
that it learned of some data quality problems with a number of its
reports from that period and worked with Bureau of Transportation
Statistics (BTS) officials to resolve those problems.

D I S P O S I T I O N

XX  Granted

The above action was effective when taken:  July 26, 2004,  through  
May 16, 2005, coextensive with the authority granted on May 16, 2003.

Action taken by:   Paul L. Gretch, Director	

		    Office of International Aviation	

XX   The authority granted is consistent with the overall state of
aviation relations between the United States and the Bahamas.           
                          

Except to the extent exempted or waived, this authority is subject to
the terms, conditions, and limitations indicated:  XX  Holder’s
certificates of public convenience and necessity

   XX  Standard exemption conditions (attached)

2

	   XX  Statement of authorization approving US Airways/Bahamasair
code-share operations

	           dated July 26, 2004, and conditions therein

Conditions:  The route integration authority granted is subject to the
condition that any service provided under this exemption shall be
consistent with all applicable agreements between the United states and
the foreign countries involved.  Furthermore, (a) nothing in the award
of the route integration authority requested should be construed as
conferring upon US Airways rights (including fifth-freedom intermediate
and/or beyond rights) to serve markets where U.S. carrier entry is
limited unless US Airways notifies the Department of its intent to serve
such a market and unless and until the Department has completed any

necessary carrier selection procedures to determine which carrier(s)
should be authorized to exercise such rights; and (b) should there be a
request by any carrier to use the limited-entry route rights that are
included

in US Airways’ authority by virtue of the route integration exemption
granted here, but that are not then being used by US Airways, the
holding of such authority by route integration will not be considered as
providing any preference for US Airways in a competitive carrier
selection proceeding to determine which carrier(s) should be entitled to
use the authority at issue.

Remarks:  With respect to Gulfstream’s comments, we have confirmed
with BTS staff that Bahamasair’s T-100 traffic reports are current and
the data quality problems have been resolved.   

________________________________________________________________________
______

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 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
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 order is available on the World Wide Web
at 

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

 

 US Airways currently holds exemption authority between Charlotte, North
Carolina, and New York, New York, on the one hand, and Freeport,
Bahamas, on the other, in the above captioned docket.

