 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on July 6, 2004

NOTICE OF ACTION TAKEN -- DOCKET OST-2004-18060

________________________________________________________________________
___________________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  US Airways, Inc. filed  6/9/04, 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 (1) Chicago, Illinois, and Cozumel, Mexico; (2) Washington, DC,
and Cancun, Mexico; and (3) Denver, Colorado, and San Jose del Cabo,
Mexcio, and to integrate this authority with its existing exemption and
certificate authority.  US Airways intends to operate this service
pursuant to a code-share arrangement with United Air Lines, Inc.,
whereby US Airways’ code will be placed on United’s flights in the
subject markets. 

Applicant rep:  Howard Kass  (703) 872-5230        DOT Analyst: Sylvia
Moore  (202) 366-6519

D I S P O S I T I O N

XX  Granted (subject to conditions, see below)

The authority granted was effective when taken:    July 6, 2004, through
  July 6, 2006

Action taken by:  Paul L. Gretch, Director

		  Office of International Aviation

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

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)

Conditions:  The U.S.-Mexico exemption authority granted is subject to
the dormancy notice requirements set forth in condition 7 of Appendix A
of Order 88-10-2.  Consistent with our policy, the dormancy notice
period will begin December 1, 2004, US Airways’ proposed startup date
for these services.  The exemption authority granted is limited to
service provided on a code-share basis only.

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 granted should be construed as conferring upon US
Airways rights (including fifth-freedom intermediate and/or beyond
rights) to serve markets where U.S. carrier entry is limited unless US
Airways 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 US
Airways’ authority by virtue of the route integration exemption
granted here, but that are not then being used by US Airways, the
holding of such authority by route integration will not be considered as
providing any preference for US Airways in a competitive carrier
selection proceeding to determine which carrier(s) should be entitled to
use the authority at issue.

2

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 application 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, 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.

											  05/2004

