 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on April 1, 2005

   NOTICE OF ACTION TAKEN -- DOCKET OST-2005-20255

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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    Chautauqua Airlines, Inc.          filed   1/27/05 
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 any point or points in the United States and any point or points
in Canada.   Chautauqua Airlines also requests authority to integrate
this authority with its existing certificate and exemption authority.  

Applicant rep:   Robert E. Cohn  202-663-8060    DOT Analyst:  Gerald
Caolo,   202-366-2406

D I S P O S I T I O N

XX  Granted 

The above action was effective when taken: April 1, 2005, through  April
1, 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 Canada. 

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)

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Remarks:  Chautauqua Airlines has previously been found to be a citizen
of the United States and fit, willing, and able to provide scheduled
interstate air transportation of persons, property, and mail as a
certificated air carrier.  The foreign air transportation services
authorized here are not markedly different in terms of aircraft size or
stage length from the carrier's current operations under its existing
authority.  We, therefore, found that Chautauqua Airlines is qualified
to provide the proposed air transportation for the period covered by the
exemption. 

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

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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, 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

 Chuatauqua is a well-established carrier providing extensive service
with aircraft with less than 60 seats (small aircraft). It was recently
awarded Department authority to engage in interstate scheduled
transportation with aircraft with 70 seats.  Chautauqua operates its
regional service on a code-share basis with major U.S. carriers and it
now proposes to use aircraft with 70 passenger seats, in addition to its
commuter service with small aircraft. 

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