 

			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on September 12, 2002

NOTICE OF ACTION TAKEN -- DOCKET OST-2002-13144

________________________________________________________________________
________________________________________________________

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:  Air Nippon Co., Ltd. 						Date Filed:  August 13, 2002

Relief requested:

Exemption from 49 U.S.C. § 41301 to engage in scheduled foreign air
transportation of persons, property and mail between any point or points
in Japan, and any point or points in the United States; and to perform
charters subject to 14 CFR Part 212 of our rules.  

Statement of Authorization to the extent necessary to permit Air Nippon
to wet lease aircraft to All Nippon Airways 

Co., Ltd (ANA) for use by ANA on all routes ANA is authorized to serve
under its blanket code-share with United Air Lines, Inc.

Date and citation of last action:  Air Nippon previously held exemption
authority during the period October 23, 1998- October 3, 2001.  See
Notices of Action Taken, dated October 23, 1998 & October 3, 2000, in
Docket OST-98-4541.  Air Nippon’s request for a statement of
authorization to wet lease aircraft to ANA, for use by ANA in its
code-share with United, is new.

Applicant representative:  Charles J. Simpson, Jr. (202) 298-8660

Responsive pleadings:  None filed

DISPOSITION

Action:  Approved								Action date:  September 12, 2002

Effective dates of the authority granted:  September 12, 2002-September
12, 2003

Basis for approval (bilateral agreement/reciprocity):  1998 Memorandum
of Understanding between the United States and Japan (1998 MOU).

Special conditions/Partial grant/Denial basis/Remarks:  The authority
granted above is subject to the provisions of the 1998 MOU, and the
further condition that Air Nippon shall not perform any third and fourth
freedom charters unless specific authority in the form of a statement of
authorization for such charter(s) has been granted by the Department. 
Air Nippon shall file applications for such statements of authorization
at least 30 calendar days before the charters involved pursuant to the
procedures set forth in § 212.10; provided, that applications involving
all-cargo charters may be filed up to ten calendar days before the
flights.  (Under § 212.11(c), we need not submit denials of late-filed
applications for Presidential review).

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

X Standard exemption conditions (attached) 

X Conditions set forth in the Statements of Authorization granted All
Nippon Airways and United Air Lines, Inc. dated August 7, 1998

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 required and 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, 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).

											

U.S. Department of Transportation	

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

  On August 7, 1998, we granted All Nippon Airways and United Air Lines
blanket statements of authorization to engage in code-share services. 
See undocketed joint application of United Air Lines, Inc. and All
Nippon Airways Co., Ltd., dated May 1, 1998.

