			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on December 15, 2005

NOTICE OF ACTION TAKEN

DOCKETS OST-2002-13527, OST-2005-13855, and OST-2005-22768

	(Baltimore-Cancun and Washington, D.C.-Cancun)

________________________________________________________________________
________________________________________

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).

Docket OST-2002-13527: Application of BRENDAN AIRWAYS, LLC d/b/a USA
3000 AIRLINES (USA 3000) filed 4/21/05, as supplemented on 10/17/05 for:

		

XX  Amendment of USA 3000’s existing exemption authority in the
captioned Docket under 49 U.S.C. 40109 to provide the following service:

Scheduled foreign air transportation of persons, property, and mail
between Washington, D.C. and Cancun, Mexico.  USA 3000 states that it
will initiate scheduled service in the subject market within 30 days of
an award of the requested authority.

Applicant rep: Pierre Murphy (202) 776-3980     DOT Analyst:  Thuy H.
Cooper   (202) 366-5423

Docket OST-2002-13855: Application of US AIRWAYS, INC. (US AIRWAYS)
filed 3/30/04 as supplemented on 10/17/05 for: 

		

XX  Amendment of US Airways’ existing exemption authority under 49
U.S.C. 40109 to provide the following service:

Scheduled foreign air transportation of persons, property, and mail
between Baltimore, Maryland, and Cancun, Mexico.  US Airways proposes to
operate this service on a seasonal basis, commencing operations before
December 1, 2006.   

The State of Maryland filed an answer supporting US Airways application.

Applicant rep: Howard Kass   (703) 872-5230   DOT Analyst:  Thuy H.
Cooper   (202) 366-5423

D I S P O S I T I O N

XX  Granted USA 3000’s request for Washington, D.C.-Cancun exemption
authority (subject to conditions, see below)

XX  Granted US Airways’ request for Baltimore-Cancun exemption
authority (subject to conditions, see below)

XX  Granted AirTran’s request for withdrawal of application in Docekt
OST-2005-22768 (see remarks below and footnote 7)

The above action granting amended exemption authority to USA 3000 was
effective when taken: December 15, 2005, through December 15, 2007.

The above action granting amended exemption authority to US Airways was
effective when taken: December 15, 2005, through December 15, 2007.

The above action granting AirTran’s withdrawal was effective when
taken: December 15, 2005.

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)

________________________________________________________________________
________________________________

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.  Consistent with our standard policy, the dormancy
notice period for the new exemption authority granted to USA 3000 will
begin 30 days from the issuance of this Notice of Action Taken, the
carrier’s proposed start-up date for the subject service.  Regarding
the issue of the start-up deadline for US Airways, we have determined
that, in the circumstances presented, we will require US Airways to
institute the proposed service no later than December 1, 2006. 

Remarks: At the time the applications were filed, the then-operative
aviation agreement provided that for designation purposes a total of
only two U.S. carriers could be designated to provide combination
services on the Washington, D.C./Baltimore-Cancun route, and
Washington/Baltimore was considered one U.S. point.  United was
authorized and designated to serve Cancun from Washington, D.C. and USA
3000 was authorized and designated to serve Cancun from Baltimore.  

 

As we said above (note 1, supra), on September 21, 2005, the U.S. and
Mexico reached an ad referendum agreement on certain amendments to the
U.S.-Mexico aviation agreement.  We are now in a position to award
authority pursuant to these amendments.   

Pursuant to the amendments, Washington, D.C., and Baltimore, Maryland,
are now regarded as separate points for designation purposes.  Also, up
to three U.S. carriers may now be designated to serve the Washington,
D.C.-Cancun market, and up to three U.S. carriers may now be designated
to serve the Baltimore-Cancun market.  In light of the separate
designation opportunities for services to Mexico from Washington, D.C.,
and from Baltimore, route opportunities are currently available in each
market.  US Airways is the only applicant requesting authority to serve
the Baltimore-Cancun market.  Under these circumstances, we will now
grant US Airways’ exemption request to serve the Baltimore-Cancun
market. With regard to the Washington, D.C.-Cancun market, two
applicants (USA 3000 in the instant application and Delta in Docket
OST-2005-22620) have applied for exemption authority to serve this
market.  We are concurrently granting those two requests.

________________________________________________________________________
_________________________________

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 application 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 document 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

 On April 21, 2005, USA 3000 requested an amendment to its existing
exemption authority to serve the Baltimore-Cancun route, to the extent
necessary to authorize service to Cancun from Washington, D.C. (Dulles
International Airport).   On September 21, 2005, the United States and
Mexico reached an ad referendum agreement on certain amendments to the
U.S.-Mexico aviation agreement, including as concerns service between
Baltimore and Washington, D.C., on the one hand, and Cancun, on the
other (see remarks below).  By Notice dated October 5, 2005, the
Department invited U.S. carriers to supplement already-filed
applications and/or to file new exemption/certificate applications in
light of the amendments.  On October 17, 2005, in response to the
Department’s Notice, USA 3000 filed a supplement to its application
confirming its intention to serve the Washington (Dulles)-Cancun market.

 See the applicant’s letter filed December 1, 2005, in the present
docket.

 On March 30, 2004, US Airway requested an amendment to its existing
exemption authority for U.S.-Mexico service so that it might serve the
Baltimore/Washington, D.C.-Cancun market.  By Notice of Action Taken
dated May 20, 2004, we deferred action on the carrier’s request as
there were no designation opportunities available.  United Air Lines,
Inc. (United) and USA 3000 were the incumbents in the market.  The
Department noted that Washington/Baltimore was considered a single U.S.
gateway under the bilateral agreement.  On October 17, 2005, in response
to the Department’s October 5 Notice (see note 1, supra), US Airways
filed a supplement to its application requesting exemption authority to
serve only the Baltimore-Cancun market.  

 Although USA 3000 did not specify, we will consider USA 3000’s
request for exemption authority to be for a two-year term, the duration
we normally award for authorizations of this type.

 Although US Airways did not specify, we will consider US Airways’
request for exemption authority to be for a two-year term, the duration
we normally award for authorizations of this type.

 The United States and Mexico signed the agreement in Mexico City on
December 12, 2005.

 AirTran Airways, Inc. (AirTran) had previously asked that there be a
comparative proceeding in the USA 3000 docket.  We regard this request
as moot in light of the amended U.S.-Mexico agreement.  Also,
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