	

                    UNITED STATES OF AMERICA

            DEPARTMENT OF TRANSPORTATION

                    OFFICE OF THE SECRETARY

                             WASHINGTON, DC



                               Issued by the Department of
Transportation on December 14, 2004

                         NOTICE OF ACTION TAKEN -- DOCKET OST-2003-15946

________________________________________________________________________
______________

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).

Joint Application of    US Airways, Inc. (and its affiliates Allegheny
Airlines, Inc.; Piedmont Airlines, Inc.; and PSA Airlines) and Deutsche
Lufthansa AG. (Lufthansa) and its affiliate Lufthansa CityLine filed 
11/2/04 for:

XX Motion for Immediate Action

Background

On October 10 and October 16, 2004, in this docket, the Department
granted (except as discussed below) the request of the joint applicants
for authority to conduct code-share operations between points in the
United States and Germany, both nonstop and via intermediate points, and
to third-country points beyond the United States and Germany.  At the
time US Airways had not completed a code-share safety audit of Lufthansa
CityLine, consistent with the provisions of the Department’s Code
Share Safety Program.  Since US Airways had not conducted a safety audit
of Lufthansa CityLine, we limited the authority granted to Lufthansa and
its CityLine affiliate so as not to permit the carriage on CityLine of
any US Airways’ traffic.  See Notices of Action Taken of October 10,
2004, and October 16, 2004, in Docket OST-2003-15946.  US Airways has
now completed a code-share safety audit of Lufthansa CityLine and the
Federal Aviation Administration has reviewed US Airways’ audit report
and found it to be acceptable.  

Applicant reps: Howard Kass (US Airways) 703-872-5230  DOT Analyst: 
Sylvia Moore, 202-366-6519

	          David Heffernan (Lufthansa) 202-663-6360

XX  Granted (joint applicants’ request for statement of authorization
to enable Lufthansa CityLine to display US Airways’ code on flights
operated by Lufthansa CityLine within Germany and between points in
Germany and points in third countries) 

The authority granted was effective when taken:  December 14, 2004, and
will remain in effect indefinitely, subject to the conditions listed
below:

Action taken by:	  Paul L. Gretch, Director

		  Office of International Aviation

XX  The authority granted is subject to the conditions attached to the
previously granted statements of authorization in the above referenced
docket.

2

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 or
deferred, 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

