			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on November 5, 2004

NOTICE OF ACTION TAKEN -- DOCKETS OST-2004-19592

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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).

Joint Applicants:  Compania de Transporturi Aeriene Romane Tarom S.A.
(Tarom) & Austrian Airlines 

Date filed:  November 3, 2004

Relief requested:

Tarom--Exemption from 49 U.S.C. § 41301 to engage in scheduled foreign
air transportation of persons, property and mail between a point or
points in Romania, on the one hand, and New York, New York, and
Washington, D.C. (Dulles), on the other hand, via Vienna, Austria,
pursuant to a code-share arrangement with Austrian Airlines, a foreign
air carrier of Austria.

Austrian Airlines--Statement of authorization under 14 CFR Part 212 to
the extent necessary to permit Austrian Airlines to display the
designator code of Tarom (“RO”) on flights operated by Austrian
Airlines  between Vienna, Austria, on the one hand, and New York, New
York, and Washington, D.C. (Dulles), on the other hand.

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

Applicant(s) representative:  Justin Herscovici for Tarom (516) 822-1449

			        Alexander Van der Bellen for Austrian Airlines (202) 663-8382

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

Responsive pleadings:  None filed

DISPOSITION

Action:  Approved							Action date:  November 5, 2004

(We acted on the joint application in less than the full 15-day period
for filing answers with the consent of all parties served)

Effective dates of exemption authority granted Tarom:  November 5,
2004-November 5, 2006

The statement of authorization granted to Austrian Airlines was
effective when taken November 5, 2004, and will remain in effect
indefinitely, subject to the conditions listed below:

Basis for approval (bilateral agreement/reciprocity):  Air Transport
Agreement between the United States and Romania (for Tarom) and between
the United States and Austria (for Austrian Airlines)

Except to the extent exempted/waived, this authority is subject to the
terms, conditions, and limitations indicated:  X  Standard exemption
conditions attached for both Tarom & Austrian Airlines.

Special conditions/Partial grant/Denial basis/Remarks 

The statement of authorization granted to Austrian Airlines is subject
to the following conditions:

(a)  The statement of authorization will remain in effect only as long
as (i) Austrian Airlines and Tarom 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.

2

(b)  Austrian Airlines and/or Tarom 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-2004-19592.

(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.

(d)  The authority granted here is specifically conditioned so that
neither Austrian Airlines nor Tarom 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	

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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

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.

  Tarom’s code-share services on the Austrian Airlines flights will be
operated on a blind-sector basis, connecting to Tarom flights between
Vienna and points in Romania.

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

05/2004

