 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on November 16, 2007

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

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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 SHUTTLE AMERICA CORPORATION (SHUTTLE AMERICA), filed
3/21/07 for:

XX Renewal of 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 the
authority granted in this instant docket with its existing certificate
and exemption authority. Shuttle America states that it uses this
authority to provide “Delta Connection” service on behalf of Delta
Air Lines, Inc. and “United Express” on behalf of United Air Lines,
Inc.  

Applicant rep: Robert E. Cohn  (202) 637-4999   DOT Analyst: Thuy H.
Cooper  (202) 366-5423

D I S P O S I T I O N

XX  Granted (subject to conditions, see below)

The above action was effective when taken: November 16, 2007, through
November 16, 2009, 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)

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Conditions:  The authority awarded here is subject to the terms of the
April 6, 2005 correspondence, referenced in footnote 1, above.

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

The code-share operations conducted under this authorization are subject
to the following conditions:

The code-share operations conducted under this authority must comply
with 14 CFR 257 and with any amendment 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.

The authority granted here is specifically conditioned so that neither
Shuttle America nor its code-share partner(s) shall give any force and
effect to any contractual provisions between themselves that are
contrary to these conditions.

Remarks: The authority for which Shuttle America requested renewal
expired May 27, 2007, but has been kept in force pursuant to the
provisions of the Administrative Procedure Act, 5 U.S.C. 558(c), as
implemented by 14 CFR Part 377, pending action on its timely-filed
renewal application.

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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, 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:

  HYPERLINK "http://www.regulations.gov"  http://www.regulations.gov 

APPENDIX 

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, the Transportation Security 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;

(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.

										  

			11/2006

 Shuttle America is a commuter carrier certificated to provide scheduled
interstate air transportation using aircraft with fewer than 60 seats
(Order 98-11-15).  By letter dated April 6, 2005, to Mr. Robert Cohn
(Counsel for Shuttle America) from Mr. William Bertram (Chief, Air
Carrier Fitness Division, Office of Aviation Analysis), the Department
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.  

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