 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on March 3, 2004

   NOTICE OF ACTION TAKEN -- DOCKET OST-2003-16537

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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).

Application of    United Air Lines, Inc.       filed    11/17/2003, as
supplemented 2/20/04  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 a point or points in the United States, on the one hand, and a
point or point in Turks and Caicos, Anguilla, the British Virgin
Islands, and Montserrat, on the other hand.  United also requests
authority to integrate this authority with its existing certificate and
exemption authority.  United initially plans to operate service between
the United States and Providenciales, Turks and Caicos, under a
code-share arrangement with U.S. Airways on flights operated by U.S.
Airways.

Applicant rep:   Jeffrey A. Manley,   202-663-6670   DOT Analyst: 
Gerald Caolo,   202-366-2406

D I S P O S I T I O N

XX  Granted in part, (U.S. points-Providenciales)

XX  Balance deferred

The above action was effective when taken:   March 3, 2004,  through 
March 3, 2006, or until 90 days after final Department action on
United’s corresponding certificate application in Docket 99-6385,
whichever occurs earlier.

Action taken by:   Paul L. Gretch, Director	

		    Office of International Aviation

XX  The authority granted is consistent with aviation agreement between
the United States and the United Kingdom.

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)

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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 United Air Lines rights
(including fifth-freedom intermediate and/or beyond rights) to serve
markets where U.S. carrier entry is limited unless United Air Lines
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 United Air
Lines’ authority by virtue of the route integration exemption granted
here, but that are not then being used by United Airlines, the holding
of such authority by route integration will not be considered as
providing any preference for United Airlines 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 United nor U.S.
Airways shall give any force or effect to any contractual provisions
between themselves that are contrary to these conditions.

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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.  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 Principal Security Inspector (PSI) to
advise the PSI 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.

08/2003

 United requests expeditious grant of its request to serve the
U.S.-Providenciales market while the balance of its application is
deferred pending the necessary security clearances for the other
markets. 

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08/2003

