 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on May 27, 2005

   NOTICE OF ACTION TAKEN -- DOCKET OST-2005-21119

________________________________________________________________________
_________________________________

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    Shuttle America Corporation          filed   4/29/2005
 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.   Shuttle America also requests authority to integrate this
authority with its existing certificate and exemption authority.  

Applicant rep:   Robert E. Cohn  202-637-4999    DOT Analyst:  Gerald
Caolo,   202-366-2406

D I S P O S I T I O N

XX  Granted in part (U.S.-Canada exemption authority)

XX  Balance dismissed (i.e. for integration authority. See remarks
below)

The above action was effective when taken: May 27, 2005, through  May
27, 2007 ,  or until 90 days after final action is taken on an
application of Shuttle America for U.S.-Canada certificate authority,
whichever occurs first. 

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)

________________________________________________________________________
____________

Remarks:  Shuttle America 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 currently authorized operations under
its existing authority.  We, therefore, found that Shuttle America is
qualified to provide the proposed air transportation for the period
covered by the exemption. 

In the circumstances presented, including its existing authority to
serve only United States markets, we are dismissing Shuttle America’s
request for integration authority. 

________________________________________________________________________
______________

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 its 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

 Shuttle America is a commuter carrier certificated to provide scheduled
interstate air transportation using aircraft with fewer than 60 seats. 
(Order 98-11-15) The Department recently authorized Shuttle America to
engage in interstate scheduled transportation using large aircraft,
subject to the restriction that Shuttle America’s operations are
performed under a fee-for-service agreement with a major U.S. carrier. 
See April 6, 2005, Correspondence issued by the Department’s Chief,
Air Carrier Fitness Division, Office of Aviation Analysis.  In the
present application, Shuttle America seeks exemption authority so that
it can operate U.S.-Canada service using ERJ-170 aircraft, configured
with 70 or more passenger seats, under such code-share fee-for-service
arrangement.  

 PAGE   

 PAGE   2 

