 

			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on April 25, 2005

NOTICE OF ACTION TAKEN -- DOCKET OST-2005-20657

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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:  Air Dolomiti S.p.A. LARE						Date Filed:  March 14, 2005

Relief requested:   Exemption from 49 U.S.C. § 41301 and blanket
statement of authorization pursuant to 14 CFR Part 212 of the
Department’s regulations to display the designator code of US Airways,
Inc. on all flights operated by Air Dolomiti on behalf of Deutsche
Lufthansa AG (Lufthansa German Airlines) within Europe. 

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

Applicant representatives:  David Heffernan (202) 663-6360

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

Responsive pleadings:  None filed

DISPOSITION

Action:  Approved							Action date:  April 25, 2005

Effective dates of exemption granted:  April 25, 2005 – April 25, 2007

Effective dates of statement of authorization granted:  April 25, 2005
– Indefinite subject to code-share conditions attached.

Basis for approval (bilateral agreement/reciprocity):  The U.S.-Italy
Air Transport Agreement 

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

X  Standard exemption conditions (attached)		X  Code share-conditions
(attached)

Special conditions/Partial grant/Denial basis/Remarks: Air Dolomiti also
requested a waiver to the extent necessary from the Department’s
requirement that it be substantially owned and effectively controlled by
homeland nationals.  Air Dolomiti stated that it is wholly owned by
Lufthansa German Airlines, a foreign air carrier of Germany.  In support
of its waiver request, Air Dolomiti stated that it is licensed by the
Government of Italy and operates as a separate company under the
regulatory jurisdiction of the Italian aviation authorities.  Air
Dolomiti further stated  that three of its six directors are Italian
citizens and all of its key management personnel, with the exception of
one its five vice presidents, are Italian citizens.  In spite of the
fact that we are unable to find that Air Dolomiti is substantially owned
and effectively 

controlled by homeland nationals, we find it appropriate to waive our
ownership and control requirements.  The carrier is properly licensed by
the Government of Italy to perform the proposed services, and there is
no evidence on the record which would suggest that the ownership of Air
Dolomiti would be inimical to U.S. aviation policy or interests.  

The code-share operations authorized here are subject to the following
conditions:

(a)  The statement of authorizations will remain in effect only as long
as (i) Air Dolomiti and/or US Airways 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.

(b)  Air Dolomiti and/or US Airways 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-2005-20657.

(c)  Air Dolomiti and/or US Airways must notify the Department no later
than 30 days before they begin any new code-share service under the
code-share services authorized here.  Such notice shall identify the
market(s) to be served and the date on which the service will begin. 
Such notices should be filed in Docket OST-2005-20657.

(d)  The code-sharing operations conducted under this authority must
comply with 14 CFR Part 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.  Further, the
operating carrier shall not permit the code of its U.S. carrier
code-sharing partner to be carried on any flight that enters, departs or
transits the airspace of any area for whose airspace the Federal
Aviation Administration has issued a flight prohibition.

(e)  The authority granted here is specifically conditioned so that
neither carrier shall give any force or effect to any contractual
provisions between themselves that are contrary to these conditions.

(f)  We may amend, modify, or revoke the authority granted at any time
without hearing at our discretion.  

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.

												05/2004

  Air Dolomiti incorporated by reference information provided March 15,
2002, in Docket OST-2002-11856, containing its request to conduct
certain intra-European code-share operations with United Air Lines, Inc.
(United), and reconfirmed February 19, 2004, in the context of its
exemption renewal application in the same docket.

  We expect this notification to be received within 10 days of such
non-effectiveness or of such decision.

