 

			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on November 12, 2004

NOTICE OF ACTION TAKEN -- DOCKET OST-2004-19206

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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).

Applicant:  Bahamasair Holdings Limited 				Date Filed:  September 23,
2004

Relief requested:  Exemption from 49 U.S.C. § 41301 to conduct
scheduled foreign air transportation of persons, property, and mail
between Providenciales, Turks and Caicos Islands and Fort Lauderdale,
Florida.

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

Applicant representatives:  George U. Carneal & Kathy M. Miljanic  (202)
637-6546

DOT Analyst:  Shelita A. Smith:  (202) 366-1226

Responsive pleadings:  Air Turks & Caicos (2003) Ltd. (Air Turks &
Caicos) filed an answer in response to Bahamasair’s request stating
that a foreign air carrier of the Bahamas is not entitled to exercise
Turks and Caicos-U.S. seventh-freedom traffic rights and Bahamasair’s
request should be dismissed.  Air Turks & Caicos further states that it
recently filed an application with the Department in Docket
OST-2004-19171, seeking exemption authority to conduct scheduled
combination services between the Turks & Caicos Islands and the United
States, and that it has been licensed and designated by the Government
of the United Kingdom under U.K. Route 9 to perform the proposed
services.  Bahamasair filed a reply recognizing that its proposed
services are extrabilateral but stating that its proposed services are
endorsed by the Bahamas and the Turks & Caicos Islands; the Department
has previously granted Bahamasair authority to serve the Turks &
Caicos-U.S. market; and grant of the requested authority is consistent
with the public interest and will provide the traveling public with new
travel options.  Bahamasair also states that the fifth-freedom beyond
service would be a continuation of the scheduled service the carrier
currently offers between Nassau and Fort Lauderdale.

DISPOSITION

Action:  Approved								Action date:  November 12, 2004

Effective dates of authority granted:  November 12, 2004 – November
12, 2005

Basis for approval (bilateral agreement/reciprocity):  Reciprocity with
the Bahamas and support of the Government of the Turks and Caicos
Islands. 

As to the concerns raised by Air Turks & Caicos, we note that as part of
its application, Bahamasair provided a letter dated August 17, 2004,
from the Government of the Turks and Caicos Islands notifying Bahamasair
of its support of Bahamasair’s efforts to secure Department authority
to provide the proposed services.  The letter noted that tourism in the
area was expanding and that approval of Bahamasair's services would
facilitate travel to the Turks and Caicos Islands from Fort Lauderdale. 
Therefore, based on the record before us, we see no reason to withhold
the authority sought by Bahamasair



2

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

X  Standard exemption conditions (attached)   X  Foreign air carrier
permit conditions (Order 87-8-55)

Special conditions/Partial grant/Denial basis/Remarks:  

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 is 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:

  HYPERLINK "http://dms.dot.gov//reports/reports_aviation.asp" 
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.

 In 1998, we granted Bahamasair exemption authority to conduct scheduled
combination services between Miami and Grand Turk, Turks and Caicos
Islands.  See Notice of Action Taken dated December 18, 1998, in Docket
OST-98-4714.

05/2004

