			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on July 14, 2004

NOTICE OF ACTION TAKEN -- DOCKETS OST-2004-17916

________________________________________________________________________
__________________________________________

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:  Titan Airways Limited				Date Filed:  May 20, 2004

Relief requested:  Exemption from 49 U.S.C. § 41301 to engage in
charter foreign air transportation of persons, property and mail between
the United Kingdom and the United States; and to conduct other charters
in accordance with Part 212 of the Department’s rules.

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

Applicant representative:  Don H. Hainbach (202) 776-3970

DOT Analyst:  Gordon H. Bingham (202) 366-2404

Responsive pleadings:  Continental Airlines, Inc. (Continental) filed an
answer stating that we should either deny Titan’s request insofar as
it seeks London Heathrow (Heathrow) authority or defer action on its
request until such time as U.S. carriers are given competitive access at
Heathrow.  Continental states that while Titan’s application provides
virtually no information on its proposed charter operations, type of
aircraft, or its ownership and fitness, it seeks broad authority that
would allow it to provide unlimited charter service between Heathrow and
the United States.  Continental states that the Department should not
grant blanket Heathrow-U.S. authority to a U.K-designated carrier when
the carrier has not provided the relevant operating, ownership or
fitness information provided by other U.K. carrier applicants.  Titan
filed a reply stating that it is based at Stansted and because it
anticipates that its London-U.S. services will be operated from that
airport, it asks that we not encumber its exemption authority with a
Heathrow restriction.  Titan further states that that Continental’s
effort to link Titan’s bilaterally-authorized charter rights with the
extrabilateral scheduled service rights Continental seeks at Heathrow is
not valid.  No further comments were filed.  

DISPOSITION

Action:  Approved							Action date:  July 14, 2004

Effective dates of authority granted:  July 14, 2004-July 14, 2005

Basis for approval (bilateral agreement/reciprocity):  July 23, 1977,
Air Services Agreement between the United States and the United Kingdom
of Great Britain and Northern Ireland, as amended (the Agreement).  

Except to the extent exempted/waived, this authority is subject to the
terms, conditions, and limitations indicated:  X  Standard exemption
conditions (attached)

Special conditions/Partial grant/Denial basis/Remarks:  Titan Airways
Limited (Titan) submitted its application pursuant to the May 25, 1989,
Exchange of Notes (1989 Exchange of Notes) between the United States and
the United Kingdom under which the aviation authorities of each country
will normally accept, on a reciprocal basis, the other government’s
fitness and citizenship determinations in regard to carriers seeking
authority to conduct certain bilateral services, including the authority
sought by Titan.  Based on the record in this case, we found that Titan
is operationally and financially qualified to conduct the proposed
services, and that it is substantially owned and effectively controlled
by homeland nationals.  We make this finding based on the 1989 Exchange
of Notes.  By memorandum dated June 1, 2004, the FAA advised us that it
knew of no reason why we should act unfavorably on Titan’s
application.  

2

The Department is sensitive to the concerns raised by Continental
regarding Heathrow access and is continuing to seek expanded
opportunities for U.S. carriers at Heathrow.  However, we do not believe
that the concerns raised by Continental warrant withholding
bilaterally-agreed authority from a designated U.K. carrier while we
seek to secure such opportunities for U.S. carriers.  Our determination
here is based on the fact that the authority sought by Titan involves
rights available to designated carriers of the United Kingdom under the
Agreement, and the applicant is properly designated by its government to
conduct the proposed services.  As to Continental’s concerns that
Titan’s request is devoid of relevant fitness and ownership and
control information, we note as was said above, that Titan submitted its
application pursuant to the 1989 Exchange of Notes between the U.S. and
the U.K. under which the aviation authorities of each country will
normally accept, on a reciprocal basis, the other government’s fitness
and citizenship determinations in regard to carriers seeking authority
to conduct certain bilateral services, including the authority sought by
Titan.  

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) 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

Attachment

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.

					05/2004

  Titan is properly licensed and designated (Note No. 48 dated June 29,
2004) by the Government of the United Kingdom to perform the proposed
services.

