 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on February 18, 2005

   NOTICE OF ACTION TAKEN -- DOCKET OST-2004-19614

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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 US Airways, Inc. filed 11/5/2004 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 a point or points in the United States, on the one hand, via
intermediate points or directly, and Bulgaria, Croatia, Cyprus, Hungary,
Kazakhstan, and Azerbaijan, on the other hand, and beyond.  US Airways
also requests that the exemption include the right to integrate this
authority with its other existing authorities.  US Airways states that
it needs the flexibility to implement services to these countries with
its own aircraft or through code-sharing as conditions warrant and that
it initially plans to offer these services through its code-share
arrangement with Lufthansa Airlines.

Applicant rep:  Howard Kass (703) 872-5230    DOT Analyst:  Linda Senese
(202) 366-2367

D I S P O S I T I O N

XX  Granted, in part (i.e., authority for US Airways’ service in its
own right to Hungary and for route integration, subject to conditions,
see below)

XX  Deferred, in part (i.e, authority for US Airways’ service in its
own right to Bulgaria, Croatia, Cyprus, Kazakhstan and Azerbaijan, see
Remarks below)

XX  Dismissed, in part (i.e., exemption request relating to services
held out by US Airways on a code-share basis on flights operated by
Lufthansa, see Remarks below)

The above action was effective when taken: February 18, 2005, through
February 18, 2007.

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 Hungary.

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 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 

(See Reverse Side)



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requested 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.

The authority granted to serve intermediate points and beyond points is
limited to countries with which the United States has signed open-skies
agreements and/or countries for which the carrier holds authority to
serve under certificates and exemptions issued by the Department, and
for which it holds route integration authority by virtue of either this
present action or other action of the Department.

Remarks:  We grant the exemption authority for US Airways to operate
service in its own right between the United States and Hungary.  We
defer the request for US Airways to operate service in its own right
between the U.S. and the other countries listed, pending necessary
security clearances.  We dismiss the exemption request relating to
code-share services with Lufthansa, since by our action on a separate
application filed subsequent to that at issue here, US Airways now holds
broad exemption authority for code-sharing purposes with Lufthansa. (See
Notice of Action Taken, Docket OST-2003-15946, dated January 11, 2005). 

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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 regulatory action under the Energy Policy and Conservation Act of
1975.  To the extent not granted, deferred or 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

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

 We note, however, in this regard, that a 30-day notice for new points
to be served by the foreign partner has not yet been filed.

