 

			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on March 11, 2004

NOTICE OF ACTION TAKEN -- DOCKET OST-2003-14630

________________________________________________________________________
________________________________________________________

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:  PRIVATAIR GmbH                                       Date
Filed:  March 4, 2003, as amended February 11, 2004

Relief requested:  Exemption from 49 USC section 41301, and Statement of
Authorization under 14 CFR Part 212, to permit the applicant to conduct
charter operations, carrying persons, property and mail, as follows: 
between any point or points in Germany on the one hand and any point or
points in the United States on the other hand, either directly or via
intermediate points in third countries, with or without stopovers, and
beyond.  The applicant proposes to conduct these operations only by
wetleasing its aircraft with crews to Lufthansa German Airlines.  Also,
the applicant proposes on certain of these wetlease operations to
Lufthansa, to display the designator code of United Air Lines in markets
where Lufthansa and United hold authority to codeshare. 1/

 

If renewal, date and citation of last action:  New authority.

Applicant representative:  Malcolm L. Benge, 202-298-8660       DOT
analyst: Allen F. Brown, 202-366-2405

Responsive pleadings:  None

	DISPOSITION

Action:  Approved in part, remainder (to carry United code-share
traffic) deferred (see ftn 1, below).         

Action date:  March 11, 2004

Effective dates of authority granted:  March 11, 2004, through March 11,
2005

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

Remarks/Special conditions:  The authority we are granting is
encompassed by the United States-Germany Air Transport Agreement, as
amended.  We found, based on the record in this case, that the applicant
is properly designated and licensed, and operationally and financially
qualified to undertake its proposed operations.  The record indicates
that the applicant is owned by citizens of Switzerland (majority
ownership) and Greece, and that its control substantially rests with
citizens of Germany.  Despite the presence of certain non-homeland
interests, we found, given the highly limited nature of the operations
contemplated, that there was nothing in the ownership and control of the
carrier that would be inimical to U.S. aviation policy or interests. 
Therefore, we concluded that waiver of our standard requirement that
substantial ownership and effective control of a foreign carrier rest in
the hands of citizens of its homeland was warranted.  Finally, the FAA
advised us that it knows of no reason to withhold this authority.  In
the conduct of the above-authorized operations, the applicant may only
operate by wetlease of aircraft and crews to Lufthansa German Airlines
(and may not carry the code of United Air Lines or any other carrier,
except Lufthansa).

___

1/   On March 8, 2004, PrivatAir filed a motion requesting the
Department to defer action on that latter portion of its request,
pending confirmation that the requisite codeshare audit of the applicant
has been completed by United.  We grant the motion.

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) our action was consistent with Department
policy; (2) the applicant was qualified to perform its proposed
operations; (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
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