 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on March 4, 2004

      NOTICE OF ACTION TAKEN -- DOCKET OST-2004-17112

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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  Atlantic Southeast Airlines, Inc.              filed  
2/11/04  for:

XX   Exemption 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 and a point or points in
the Bahamas; and authority to integrate this authority with its existing
certificate and exemption authority. Atlantic Southeast Airlines intends
to operate this service pursuant to a code-share arrangement with Delta
Air Lines.

 

Applicant rep:   Robert E. Cohn  (202) 663-8060   DOT Analyst:  Gerald
Caolo   (202) 366-2406

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:  March 4, 2004, through 
March 4, 2006

Action taken by:   Paul L. Gretch, Director	

		    Office of International Aviation	

XX  The authority granted is consistent with the 1946 Air Transport
Agreement between the United States and the United Kingdom, as amended,
to which the Government of the Bahamas acceded upon its independence and
the overall state of aviation relations between the two countries. 

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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Remarks:  Atlantic Southeast Airlines has previously been found to be a
citizen of the

United States and fit, willing, and able to provide scheduled foreign
air transportation of persons, property, and mail as a certificated air
carrier.  The foreign air transportation services authorized here are
not markedly different in terms of aircraft size or stage length from
the carrier's current operations under its existing authority.  We,
therefore, found that Atlantic Southeast Airlines is qualified to
provide the proposed air transportation for the period covered by the
exemption. 

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 Atlantic Southeast
Airlines rights (including fifth-freedom intermediate and/or beyond
rights) to serve markets where U.S. carrier entry is limited unless
Atlantic Southeast Airlines 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 Atlantic Southeast Airlines’ authority by virtue of the
route integration exemption granted here, but that are not then being
used by Atlantic Southeast Airlines, the holding of such authority by
route integration will not be considered as providing any preference for
Atlantic Southeast 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 Atlantic
Southeast Airlines nor Delta Air Lines 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; and (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.  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

 Atlantic Southeast Airlines, a subsidiary of Delta, is currently
serving the Atlanta- Freeport market with commuter aircraft but it now
plans to serve this market with both small and regional aircraft.  

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