 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on May 19, 2004

   NOTICE OF ACTION TAKEN -- DOCKET OST-2003-16061

________________________________________________________________________
_________________________________

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    8/28/2003  for:

XX  Exemption for two years under 49 U.S.C. 40109 to provide the
following service:

Scheduled foreign air transportation of persons, property, and mail
between points in the United States and points in St. Vincent and the
Grenadines.  US Airways also requests authority to integrate this
authority with its existing certificate and exemption authority.  US
Airways intends to operate this service under a code-share arrangement
with Caribbean Sun Airlines whereby US Airways will place its code on
flights operated by Caribbean Sun Airlines. 

Applicant reps:   Joel Stephen Burton,   202-383-5300   DOT Analyst: 
Gerald Caolo,   202-366-2406

                           Howard Kass               703-872-5230   

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:  May 19, 2004, through May
19, 2006 

Action taken by:   Paul L. Gretch, Director	

		    Office of International Aviation

XX   The authority granted is consistent with the U.S.-U.K. Air Services
Agreement of 1977, to which St. Vincent and the Grenadines acceded upon
its independence.

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)

________________________________________________________________________
______________

Conditions:  The route integration authority granted is subject to the
condition that any service provided

under this exemption shall be consistent with all applicable agreements
between the United States and the foreign countries involved. 
Furthermore, (a) nothing in the award of the route integration authority


requested should be construed as conferring upon US Airways rights
(including fifth-freedom intermediate and/or beyond rights) to serve
markets where U.S. carrier entry is limited unless US Airways 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 by
route integration 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
Caribbean Sun Airlines shall give any force or effect to any contractual
provisions between themselves that are contrary to these conditions.

________________________________________________________________________
______________

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:

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

 US Airways plans to offer initial service between San Juan, Puerto Rico
and St. Vincent.

 PAGE   

 PAGE   2 

08/2003

