 

			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on October 24, 2003

NOTICE OF ACTION TAKEN -- DOCKET OST 2003-16223

________________________________________________________________________
________________________________________________________

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 Applicants:  BRITISH MIDLAND AIRWAYS LIMITED d/b/a bmi and AIR
CANADA        

Date Filed:  September 24, 2003.

Relief requested:  (a) Statement of Authorization under 14 CFR Part 212
to permit bmi to carry the code of Air Canada (and its subsidiary Jazz
Air), on flights operated by bmi, between Manchester and the two U.S.
points Washington, D.C. (Dulles) and Chicago, in conjunction with
services held out and/or operated by Air Canada between Canada and the
United Kingdom.  (No local Air Canada/Jazz Air U.S.-Manchester traffic
will be carried on these flights.)  (b) Statement of Authorization under
14 CFR Part 212 to permit Air Canada (and its subsidiary Jazz Air) to
carry the code of bmi, on flights operated by Air Canada/Jazz Air,
between the two U.S. points Washington, D.C. (Dulles) and Chicago and
the three Canadian points Ottawa, Montreal and Toronto, in conjunction
with services held out and/or operated by bmi between the United Kingdom
and Canada.  (No local bmi U.S.-Canada traffic will be carried on these
flights.)

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

Applicants’ representatives:  Marshall S. Sinick (bmi), 202-626-6651 &
Anita Mosner (Air Canada), 703-294-5890          

DOT analyst:  Allen F. Brown, 202-366-2405

Responsive pleadings:  None.

	DISPOSITION

Action:  Approved, subject to conditions (see below).                   
                            Action date:  October 24, 2003

Effective dates of authority granted:  October 24, 2003, through October
24, 2005.

Basis for approval:  Air Transport Agreement between the United States
and Canada, and the Memorandum of Consultations between the United
States and the United Kingdom of June 5, 1995.

Remarks/Conditions:  Bmi holds scheduled authority to serve the United
States only from Manchester.  Therefore, bmi’s code-share authority
between the United States and Canada (b above) may only be exercised in
conjunction with U.K.-Canada flights, operated or held out by bmi, whose
first point of arrival or last point of departure in the United Kingdom
is Manchester.  In addition, the code-share authority that we granted is
subject to the following conditions:  1) bmi and Air Canada/Jazz Air
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 2003-16223).  2) 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.  3) 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.
 4) 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
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