	

                    UNITED STATES OF AMERICA

            DEPARTMENT OF TRANSPORTATION

                    OFFICE OF THE SECRETARY

                             WASHINGTON, DC



                               Issued by the Department of
Transportation on January 11, 2005

                         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 
5/25/04 to:

XX  Amend exemption under 49 U.S.C. 40109

XX  Amend statements of authorization under 14 CFR Part 212 for US
Airways and Lufthansa

The Joint Applicants request that the Department amend certain
conditions applicable to US Airways’ already authorized exemption
authority granted by the amended Notice of Action Taken dated October
16, 2003, (in this docket) so as to align the code-share authority and
notice procedures applicable to US Airways and Lufthansa with the
code-share authority and notice procedures adopted by the Department in
approving the code-share by American and British Airways, as set forth
in Order 2003-5-33 (Docket OST-2002-13861).  Specifically, the Joint
Applicants request that the condition granted to serve intermediate and
beyond points be deleted so as not to limit the authority to only
countries with which the United States has signed open-skies agreements
and/or countries with which the carrier holds authority to serve under
certificates or exemptions issued by the Department, and for which it
holds route integration authority.  

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

                         David Heffernan (202) 663-6360 – Lufthansa

D I S P O S I T I O N

XX  Granted amended exemption and statements of authorization (see
remarks below)

The amended exemption authority granted was effective when taken:  
January 11, 2005   , through  October 10, 2005 (coextensive with the
authority granted on October 16, 2003.)

The amended statements of authorization granted were effective when
taken:  January 11, 2005, 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 consistent with the aviation agreement
between the United States and Germany.

2

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

	XX Holder’s Foreign Air Carrier Permit (Lufthansa)

	XX Holder’s Certificate of Public Convenience and Necessity (US
Airways)

	XX Standard Exemption Conditions (attached)

Remarks:  We have amended US Airways’ exemption granted by the Notice
of Action Taken of 

October 16, 2003, in this docket as requested by the Joint Applicants in
their present submission, by deleting the condition on page 3 of the
Notice limiting U.S. Airways’ exemption authority as regards service
to intermediate and beyond points.  With our action here, the
requirements applicable to US Airways and Lufthansa with respect to
services to new countries under their code-share arrangement are aligned
with those applicable to American and British Airways under Order
2003-5-33. 

________________________________________________________________________
_____________

On the basis of data officially noticeable under Rule 24(n) of the
Department’s regulations, we found the applicants 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 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:

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

			

