 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on March 1, 2005

   NOTICE OF ACTION TAKEN -- DOCKET OST-2004-19148

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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 1/26/05 to:

XX  Amend exemption under 49 U.S.C. 40109 U.S. C. 40109 to permit United
to display its designator code on flights operated not only by Lufthansa
and other carriers that operate flights on Lufthansa’s behalf, but
also on flights operated by its other foreign code-share partners  on
the following services:

 

Scheduled foreign air transportation of persons, property, and mail
between points in the United States and points worldwide on a
third-country code-share basis pursuant to blanket code-sharing
statements of authorization approved by the Department, and to integrate
this authority with its existing certificate and exemption authority.

Applicant rep:  Jeffrey A. Manley (202) 663-6670)   DOT Analyst: Sylvia
Moore (202) 366-6519

DISPOSITION

XX  Granted (subject to conditions, see remarks below)

The exemption authority granted was effective when taken:    March 1,
2005, through  January 24, 2007 (coextensive with the authority
previously granted on January 24, 2005, in this Docket).

Action taken by:  Paul L. Gretch, Director

                              Office of International Aviation

XX  The authority granted is consistent with the aviation agreements
between the United States and the homelands of United’s foreign
code-share partners listed in this Notice.

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)

	   XX  Conditions attached to the relevant blanket statements of
authorization

2

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

We note that United has conducted a safety audit on all of its named
foreign air carrier code-share partners and affiliates under the
Department’s Code Share Safety Program, and the FAA has advised that
it has reviewed the relevant audit program and found the program to be
acceptable.

The exemption authority granted here is for operations with the foreign
code-share partners and affiliates named above.  Should United and any
new code-share partner be granted statements of authorization, United
will need to apply for exemption authority to the extent necessary to
permit United to display its code on flights operated by the new
code-share partners.

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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 federal 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

 These carriers include Lufthansa CityLine, Air Dolomiti, Condor
Flugdienst, and PrivatAir.

 Air New Zealand Limited; All Nippon Airways Co. Ltd (ANA); Asiana
Airlines, Inc.; Austrian Airlines, Osterreichische Luftverkehrs AG;
Lauda Air Luftfahrt GmbH; Polskie Linie Lotnicze LOT S.A. (LOT);
Scandinavian Airlines System (SAS); Singapore Airlines Limited; and
Tyrolean Airways, Troler Luftfahrt GmbH d/b/a Austrian arrows.

 See Notices of Action Taken dated August 6, 1999 (Docket OST-99-6013,
United-Air New Zealand); August 7, 1998 (Undocketed, United-ANA);
December 19, 2002 (Docket OST-2002-13320, United-Asiana); March 13, 2000
(Docket OST-2000-6803, United-Austrian); March 22, 2001 (Docket
OST-2000-7751, United-Lauda); April 19, 2004 (Docket OST-2004-17468,
United-LOT); May 24, 1999, (Docket OST-99-5251, United-SAS); October 17,
2000 (Docket OST-2000-7696, United-Singapore); and 

March 22, 2001 (Docket OST-2000-7751, United-Tyrolean).

 Of course, the U.S. carriers will need to have conducted code-share
safety audits of their foreign partners prior to receipt of authority
for such code-share services.

