			  UNITED STATES OF AMERICA                

		        DEPARTMENT OF TRANSPORTATION        

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on February 2, 2007

NOTICE OF ACTION TAKEN -- DOCKET OST-2005-22506   

________________________________________________________________________
__________________________________________

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 REPUBLIC AIRLINES, INC. d/b/a REPUBLIC AIRLINES
(REPUBLIC) filed 9/16/05 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 points in the United States and points in Canada.     

XX  Certificate under 49 U.S.C. 41101 to provide the following service:

Scheduled foreign air transportation of persons, property, and mail
between points in the United States and points in Canada.  

Republic states that it requires the above authority to operate
U.S.-Canada service using large jet aircraft under code-share fee for
service arrangements with one or more major U.S. carriers. 

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 request for exemption authority (subject to conditions)

XX  Deferred action on request for certificate authority

The above action granting exemption authority was effective when taken:
February 2, 2007, through February 2, 2009.

The above action deferring action on the request for certificate
authority was effective when taken:

February 2, 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)

________________________________________________________________________
__________________________________________

Conditions: The authority granted here is limited to operations
performed under a fee-for-service agreement with a major U.S carrier
(see footnote 1).  

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
Republic nor its code-share partner(s) shall give any force and effect
to any contractual provisions between themselves that are contrary to
these conditions.

________________________________________________________________________
____________

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 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 or deferred, 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 

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

  Republic is authorized to engage in interstate scheduled
transportation using large aircraft, subject to the restriction that
Republic’s operations are performed under a fee-for-service agreement
with a major U.S carrier (see Order 2005-9-24).

 We will address Republic’s request for certificate authority
separately.  

 By Orders 2004-7-26 and 2005-9-24, the Department found Republic fit,
willing, and able to engage in interstate scheduled air transportation
of persons, property, and mail using large aircraft.  Republic is an
operating certificated air carrier, for which the authority at issue
here would not constitute a substantial change in operations requiring
further review by the Department.  Thus, we found no reason to question
the carrier’s qualifications to provide the services proposed in the
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