			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on July 13, 2005

NOTICE OF ACTION TAKEN -- DOCKETS OST-2004-17517

________________________________________________________________________
__________________________________________

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:  Caribbean Star Airlines, Ltd. & Caribbean Sun Airlines, Inc.
  Date Filed:  March 10, 2005

Relief requested:

Caribbean Star Airlines, Ltd.—Renew exemption from 49 U.S.C. § 41301
to engage in scheduled foreign air transportation of persons, property
and mail between St. John’s, Antigua and Barbuda, on the one hand, and
San Juan, Puerto Rico, and St. Thomas, U.S. Virgin Islands, on the other
hand, pursuant to a code-share arrangement with Caribbean Sun Airlines,
Inc., (Caribbean Sun), a U.S. certificated air carrier.  Caribbean Star
further requests that we amend that authority to the extent necessary to
permit Caribbean Star to engage in scheduled foreign air transportation
of persons, property and mail on flights operated by Caribbean Sun
between St. John’s, Antigua and Barbuda, on the one hand, and San
Juan, Puerto Rico, and St. Thomas and St. Croix, U.S. Virgin Islands, on
the other hand, operated directly or via the intermediate points
Anguilla, Barbados, Tortola (BVI), Dominica, Grenada, Martinique, St.
Eustacius, St. Kitts, St. Lucia, St. Maarten, St. Vincent, Tobago, and
Trinidad, with Fifth Freedom traffic rights, to the extent consistent
with the aviation agreement between the United States and Antigua and
Barbuda.  The flights will be operated pursuant to a code-share
arrangement between Caribbean Star and Caribbean Sun.  Caribbean Star
asks that we grant the requested authority for a two year period.

Caribbean Sun Airlines, Inc.—Renew statement of authorization under 14
CFR Part 212 to permit Caribbean Sun to display the designator code of
Caribbean Star on flights operated by Caribbean Sun between San Juan,
Puerto Rico, and St. Thomas, U.S. Virgin Islands, on the one hand, and
St. John’s, Antigua and Barbuda, on the other hand.  Caribbean Sun
further request that we amend that authority to the extent necessary to
permit Caribbean Sun to display the designator code of Caribbean Star on
flights operated by Caribbean Sun between San Juan, Puerto Rico, St.
Croix and St. Thomas, U.S. Virgin Islands, on the one hand, and the
Caribbean points (named above) on the other hand.

If renewal, date and citation of last action:  Renews and amends
authority last granted May 21, 2004, in this docket

Applicant(s) representative:  Nathaniel P. Breed, Jr. (202) 973-7919

DOT Analyst:  George Wellington (202) 366-2391

Responsive pleadings:  None filed

DISPOSITION

Action:  Approved in part, dismissed in part 				Action date:  July 13,
2005

Effective dates of exemption authority granted Caribbean Star:  July 13,
2005 - July 13, 2006 

Effective dates of the statement of authorization granted Caribbean Sun:
 July 13, 2005 - Indefinite

Basis for approval (bilateral agreement/reciprocity):  Air Services
Agreement between the United States and the United Kingdom to which
Antigua and Barbuda acceded upon independence in 1981 (the Agreement),
and, with respect to services to be operated by Caribbean Star to and
from St. Eustacius, reciprocity on the part of Antigua and Barbuda.

2

Except to the extent exempted/waived, this authority is subject to the
terms, conditions, and limitations indicated:

X  Standard exemption conditions (Caribbean Star Attachment A &
Caribbean Sun Attachment B), the Agreement  and Caribbean Sun’s
Certificate of Public Convenience and Necessity (Order 2002-12-18).

Special conditions/Partial grant/Denial basis/Remarks:  Caribbean Star
was designated by the Government of Antigua and Barbuda on February 20,
2004, on U.K. Route 9 in Annex 1 of the Agreement, to perform its
proposed services.  

Caribbean Star may not conduct U.S. operations with its own aircraft and
crews without further action by the Department. 

The statement of authorization granted to Caribbean Sun is subject to
the following conditions:

(a)  The statement of authorization will remain in effect only as long
as (i) Caribbean Sun and Caribbean Star 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.

(b)  Caribbean Sun and/or Caribbean Star must promptly notify the
Department (Office of International Aviation) if the code-share
agreement providing for the code-share operations is no longer effective
or the carriers decide to cease operating any or all of the approved
code-share services.  Such notices should be filed in Docket
OST-2004-17517.

(c)  The code-sharing operations conducted under this authority must
comply with 14 CFR 257 and with any amendments 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.  Further, the operator shall not permit the code of its
U.S. code-sharing partner to be carried on any flight that enters,
departs, or transits the airspace of any area for whose airspace the
Federal Aviation Administration has issued a flight prohibition.

(d)  The authority granted here is specifically conditioned so that
neither Caribbean Sun nor Caribbean Star 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	

________________________________________________________________________
_________

Under authority assigned by the Department in its regulations, 14 CFR
Part 385, we found that (1) the applicant was qualified to perform the
proposed operations; (2) our action was consistent with Department
policy; (3) grant of the authority was consistent with the public
interest; and (4) 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

Foreign Carrier Exemption Conditions

In the conduct of the operations authorized, the foreign carrier
applicant(s) shall:

(1)  Not conduct any operations unless it holds a currently effective
authorization from its homeland for such operations, and it has filed a
copy of such authorization with the Department;

(2)  Comply with all applicable requirements of the Federal Aviation
Administration, including, but not limited to, 14 CFR Parts 129, 91, and
36, and with all applicable U.S. Government requirements concerning
security, including, but not limited to, 49 CFR Part 1546 or 1550, as
applicable.  To assure compliance with all applicable U.S. Government
requirements concerning security, the holder shall, before commencing
any new service (including charter flights) from a foreign airport that
would be the holder’s last point of departure for the United States,
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;

(3)  Comply with the requirements for minimum insurance coverage
contained in 14 CFR Part 205, and, prior to the commencement of any
operations under this authority, file evidence of such coverage, in the
form of a completed OST Form 6411, with the Federal Aviation
Administration’s Program Management Branch (AFS-260), Flight Standards
Service (any changes to, or termination of, insurance also shall be
filed with that office);

(4)  Not operate aircraft under this authority unless it complies with
operational safety requirements at least equivalent to Annex 6 of the
Chicago Convention;

(5)  Conform to the airworthiness and airman competency requirements of
its Government for international air services;

(6)  Except as specifically exempted or otherwise provided for in a
Department Order, comply with the requirements of 14 CFR Part 203,
concerning waiver of Warsaw Convention liability limits and defenses;

(7)  Agree that operations under this authority constitute a waiver of
sovereign immunity, for the purposes of 28 U.S.C. 1605(a), but only with
respect to those actions or proceedings instituted against it in any
court or other tribunal in the United States that are: (a)  based on its
operations in international air transportation that, according to the
contract of carriage, include a point in the United States as a point of
origin, point of destination, or agreed stopping place, or for which the
contract of carriage was purchased in the United States; or (b)  based
on a claim under any international agreement or treaty cognizable in any
court or other tribunal of the United States.  In this condition, the
term "international air transportation" means "international
transportation" as defined by the Warsaw Convention, except that all
States shall be considered to be High Contracting Parties for the
purpose of this definition;

(8)  Except as specifically authorized by the Department, originate or
terminate all flights to/from the United States in its homeland;

(9)  Comply with the requirements of 14 CFR Part 217, concerning the
reporting of scheduled, nonscheduled, and charter data;

(10) If charter operations are authorized, except as otherwise provided
in the applicable aviation agreement, comply with the Department's rules
governing charters (including 14 CFR Parts 212 and 380); and

(11) Comply with such other reasonable terms, conditions, and
limitations required by the public interest as may be prescribed by the
Department, with all applicable orders or regulations of other U.S.
agencies and courts, and with all applicable laws of the United States.

This authority shall not be effective during any period when the holder
is not in compliance with the conditions imposed above.  Moreover, this
authority cannot be sold or otherwise transferred without explicit
Department approval under Title 49 of the U.S. Code.

										Attachment B

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.

   See basis for approval and special conditions, below.

  Caribbean Star sought authority for a two year period.  However, as is
our usual practice in conferring exemption authority in the
circumstances presented, we are limiting the term of authority to one
year.  We dismiss Caribbean Star’s request to the extent it seeks
longer-term exemption authority.  Caribbean Star may, of course, seek
renewal of this authority in accordance with the Department’s
regulations.  

  Antigua and Barbuda is currently a Category 2 country under the
FAA’s International Aviation Safety Assessment Program (IASA).

  We expect this notification to be received within 10 days of such
noneffectiveness or of such decision.

05/2004

