 

			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on June 15, 2005

NOTICE OF ACTION TAKEN -- DOCKET OST-2005-20519

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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:  Japan Airlines Domestic Co., Ltd. 					Date Filed:  March 2,
2005

Relief requested:

Exemption from 49 U.S.C. § 41301 to engage in charter foreign air
transportation of persons, property and mail between any point or points
in Japan, and any point or points in the United States; and other
charters subject to Part 212 of our rules.  

Statement of authorization under 14 CFR Part 212 to the extent necessary
to permit Japan Airlines Domestic (JAD) to wet lease aircraft to Japan
Airlines International Co., Ltd. (JAL) for use by JAL between points in
Japan (and between Japan and other intra-Asian points connecting to
flights to/from the United States) under JAL’s code-share arrangement
with American Airlines, Inc. (American). 

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

Applicant representative:  William Karas & Carol Gosain (202) 429-6223

DOT Analyst:  George Wellington (202) 366-2391

Responsive pleadings:  None filed 

DISPOSITION

Action:  Approved								Action date:  June 15, 2005

Effective dates of the exemption authority and statement of
authorization granted:  June 15, 2005-June 15, 2006 

Basis for approval (bilateral agreement/reciprocity):  1998 Memorandum
of Understanding between the United States and Japan (1998 MOU).

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

X  Standard exemption conditions (attached) and otherwise applicable
conditions initially imposed on American and JAL on February 18, 1999,
and most recently on October 1, 2004, in Docket OST-1999-4994.

2

Special conditions/Partial grant/Denial basis/Remarks:  Based on the
record in this case, we found that JAD is financially and operationally
qualified to perform the services authorized above.  In addition, we
found that JAD is substantially owned and effectively controlled by
Japanese citizens.  JAD is properly licensed by the Government of Japan
to perform the proposed services.

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:

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

Attachment

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.

												05/2004

  On February 18, 1999, we granted JAL and American statements of
authorization under Part 212 to engage in code-share services.  See
Notice of Action Taken dated February 18, 1999, in Docket OST-1999-4994.
 On March 2, 2005, American filed a request in Docket OST-1999-4994,
seeking to amend its existing code-share authority with JAL to include
JAL’s affiliate JAD.  

  On March 3, 2005, JAD and American filed a joint motion seeking to
establish March 9, 2005, as the due date for answers in Dockets
OST-2005-20519 and OST-1999-4994, and March 7 as the due date for
answers to the joint motion.  The due date prescribed by our regulations
for answers on these items has now passed, and we are dismissing the
joint motion for an accelerated due date for answers as moot.

  We note that JAD sought authority for a two year period.  However, as
is our usual practice in conferring exemption authority in the
circumstances presented, we are limiting the term of authority to one
year.  JAD may, of course, seek renewal of this authority in accordance
with the Department’s regulations.

  JAD’s application was accompanied by a motion under Rule 12 (14 CFR
§ 302.12) to withhold certain personal information relating to the
location of private domiciles of JAD’s directors and senior officers
from public disclosure.  JAD believes that disclosure of such
information would constitute an unwarranted invasion of the personal
privacy of its officers and directors and is not required by the public
interest.  We have reviewed the documents under the disclosure
guidelines of Rule 12 and have determined that they warrant confidential
treatment.  

