 

			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on September 24, 2003

NOTICE OF ACTION TAKEN -- DOCKET OST 2003-16106

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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).

Applicant:  AIR CANADA

Date Filed:  September 5, 2003, as clarified by letter dated September
16, 2003.

Relief requested:  Statement of Authorization under 14 CFR Part 212 to
permit Air Canada and its subsidiary Jazz Air to carry the code of
Asiana Airlines, for an indefinite duration, on scheduled flights
operated by Air Canada and/or Jazz Air, between any point or points in
Canada and any point or points in the United States (in conjunction with
Asiana’s services between Korea and the United States).

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

Applicant representative:  Anita M. Mosner, 703-294-5890             DOT
analyst:  Allen F. Brown, 202-366-2405

Responsive pleadings:  None.

	DISPOSITION

Action:  Approved.                                                      
                                         Action date:  September 24,
2003

Effective dates of authority granted:  indefinite duration (see below).

Basis for approval:  Bilateral arrangements with Canada and Korea.

Remarks/Conditions:  The code-share authority that we granted is subject
to the following conditions:  1) The Statement of Authorization will
remain in effect only as long as (i) Air Canada, Jazz Air and Asiana,
continue to hold the necessary underlying authority to operate the
code-share services at issue, and (ii) the code-share agreement
providing for the code-share operations remains in effect.  2) Air
Canada, Jazz Air and Asiana must promptly notify the Department (Office
of International Aviation) if the subject agreement providing for these
code-share operations is no longer effective or the carriers decide to
cease operating any or all of the approved services.  (We expect this
notice to be received within ten days of such noneffectiveness or of
such decision and filed in Docket OST 2003-16106).  3) Air Canada, Jazz
Air and Asiana must notify the Department no later than 30 days before
they begin any new code-share service under the code-share services
authorized here.  Such notice shall identify the market(s) to be served,
and the date on which the service will begin.  Such notice should be
filed in Docket OST 2003-16106.  4) The code-share operations conducted
under this authority must comply with 14 CFR Part 257 and with any
amendments to the Department’s regulations concerning code-share
arrangements that may be adopted.  5) Notwithstanding any provisions in
the contract between the subject 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 the
service in computer reservation systems and elsewhere; that the carrier
selling such transportation (that is, 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.
 6) The code-share authority granted here is specifically conditioned so
that neither carrier shall give any force or effect to any contractual
provisions between themselves that are contrary to these conditions.

Action taken by:   Paul L. Gretch, Director	

		      Office of International Aviation	

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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/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 at:

http://dms.dot.gov//reports/reports_aviation.asp

