 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on June 28, 2005

   NOTICE OF ACTION TAKEN -- DOCKET OST-2003-15310

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_________________________________

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 5/13/05 for:

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 co-terminal points  of Washington, D.C., and Chicago,
Illinois, on the one hand, and the terminal point Mexico City, Mexico,
on the other hand; along with route integration authority to combine
this exemption with US Airways’ existing exemption and certificate
authority.  US Airways proposes to continue to conduct these services
pursuant to its code-share arrangement with United Air Lines, Inc.
(United), whereby US Airways will place its designator code on flights
operated by United in these markets. 

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 (subject to conditions, see below)

The above action was effective when taken: June 28, 2005, through June
28, 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 certificates of public convenience and necessity

	XX  Standard exemption conditions (attached)

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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.  The exemption authority granted is limited to service
provided on a code-share basis only.

The route integration authority granted is subject to the condition that
any service provided under this authority shall be consistent with the
applicable bilateral aviation agreements between the United States and
the foreign countries involved.  Furthermore, (a) nothing in the award
of this authority requested should be construed as conferring upon US
Airways additional rights (including code-share, fifth-freedom
intermediate and/or beyond rights) to serve markets where U.S carrier
entry is limited unless US Airways first 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 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.

The code-share operations conducted under this authorization are subject
to the following conditions:  (a) the code-sharing operations conducted
under this authority must comply with 14 CFR 257 and with any amendment
to the Department’s regulations concerning code-share arrangements
that may be adopted.  Notwithstanding any provisions in the contract
between the carriers, our approval here is expressly conditioned upon
the requirements that the subject foreign air transportation be sold in
the name of the carrier holding out such service in computer reservation
systems and elsewhere; that the carrier selling such transportation
(i.e., the carrier shown on the ticket) accept responsibility for the
entirety of the code-share journey for all obligations established in
its contract of carriage with the passenger; and that the passenger
liability of the operating carrier be unaffected; and (b)	 the authority
granted here is specifically conditioned so that neither US Airways nor
United shall give any force or effect to any contractual provisions
between themselves that are contrary to these conditions.

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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 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 

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

  Previously, in this docket, US Airways was also granted exemption
authority to serve the Los Angeles/San Francisco-Mexico City markets
(see Notice of Action Taken dated July 23, 2003).  However, by letter
dated February 3, 2005, US Airways informed the Department that it was
no longer code-sharing on flights operated by United between San
Francisco and Los Angeles, on the one hand, and Mexico City, on the
other hand.  Thus, US Airways does not seek to renew the Los Angeles/San
Francisco-Mexico City authorities here.  

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