![](media/image1.wmf){width="0.6777777777777778in"
height="0.7194444444444444in"} **UNITED STATES OF AMERICA**

**DEPARTMENT OF TRANSPORTATION**

**OFFICE OF THE SECRETARY**

WASHINGTON, D.C.

Issued by the Department of Transportation on **March 14, 2008**

**NOTICE OF ACTION TAKEN -- DOCKETS DOT-OST-2008-0001,**

**DOT-OST-2004-19148, and DOT-OST-2005-22809**

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_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).

**DOT-OST-2005-22809:** Application of **[Air One, S.p.A. (Air
One)]{.underline},** filed **[11/29/07]{.underline}** for:

**[XX]{.underline}** Renewal of Air One's existing exemption authority
under 49 U.S.C. 41301 to permit Air One to provide the following
services:

**To engage in code-share operations under which Air One would carry the
designator code of US Airways, Inc. (US Airways), on flights it operates
within Italy**.[^1] [^2]

**DOT-OST-2005-22809:** Application of **[Air One]{.underline}**, as
amended **[12/31/07]{.underline}** for:

**[XX]{.underline}** Amendment of Air One's existing exemption authority
under 49 U.S.C. 41301 to permit Air One to provide the following
services:

To engage in code-share operations under which Air One would carry the
designator code of United Air Lines, Inc. (United) on flights it
operates within and beyond Italy, and to place its Air One designator
code on Italy-U.S. services on flights operated by United between Italy
and the U.S. (and United's connecting domestic and international
flights).

**Dockets DOT-OST-2004-19148 and DOT-OST-2008-0001:** Joint application
of **[United and Air One]{.underline}**, filed [**12/31/07**, and
clarified by letters dated 1/3/08, and 2/6/08]{.underline}**,** for:

**[XX]{.underline}** Amendment of United's existing exemption authority,
in Docket OST-2004-19148, under 49 U.S.C. 40109 to permit United to
provide the following service:[^3]

Scheduled foreign air transportation of persons, property, and mail
between the United States and points worldwide on a third-country
code-share basis pursuant to a code-share arrangement with Air One.

2

**[XX]{.underline}** Statement of Authorization for an indefinite
duration under 14 CFR Part 212 for blanket code-share authority to
permit United to:

**Display Air One's "AP\*" designator code on flights operated by
United: (1) between any point in the United States and any point in
Italy; (2) between points in the United States in conjunction with
service held out by Air One between Italy and the United States (either
nonstop or via intermediate points); and (3) between any point in the
United States or Italy and any point in a third country.**[^4]

**[XX]{.underline}** Statement of Authorization for an indefinite
duration under 14 CFR Part 212 for blanket code-share authority to
permit Air One to:

Display United's "UA\*" designator code on flights operated by Air One:
(1) between any points within Italy in conjunction with services held
out by United between the United States and Italy (either nonstop or via
third country intermediate points); and (2) between any point in Italy
and any point in a third

country.[^5] [^6]

Applicant reps: **[Mark W. Atwood (Air One and US Airways) (202)
463-2513]{.underline}**

**[Julie Oettinger (United) (202) 296-2370]{.underline}** DOT Analyst:
**[Linda Lundell (202) 366-2336]{.underline}**

**D I S P O S I T I O N**

**[XX]{.underline} Granted (subject to conditions and remarks, see
below)**

The above action, granting renewal and amendment of Air One's exemption
authority (Docket DOT-OST-2005-22809), was effective when taken:
**[March 14, 2008]{.underline},** through **[March 14,
2010]{.underline}**.

The above action, granting amendment of United's exemption authority
(Docket DOT-OST-2004-19148), was effective when taken: **[March 14,
2008]{.underline},** through **[July 19, 2009]{.underline}**
(coextensive with the authority already granted in this docket).[^7]

The above action, granting statements of authorization to United and Air
One (Dockets DOT-OST-2004-19148 and DOT-OST-2008-0001), was effective
when taken: **[March 14, 2008]{.underline},** and will remain in effect
indefinitely, subject to the conditions below.

**Action taken by: Paul L. Gretch, Director**

**Office of International Aviation**

[XX]{.underline} The authority granted is consistent with the aviation
agreement between the United States and Italy and, effective March 30,
2008, the U.S.-EU Air Transport Agreement.

3

> Except to the extent exempted or waived, this authority is subject to
> the terms, conditions, and limitations indicated:
>
> **[XX]{.underline} United's certificates of public convenience and
> necessity**
>
> **[XX]{.underline} US Airways' certificates of public convenience and
> necessity**
>
> **[XX]{.underline} Code-share conditions previously imposed on Air One
> and US Airways**
>
> **on November 30, 2005, in Docket DOT-OST-2005-22809**
>
> **[XX]{.underline} Standard U.S. and Foreign Carrier Exemption
> Conditions (attached)**
>
> **\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**
>
> **Remarks:** With regard to the display of United's designator code on
> flights operated by Air One, we note that United has conducted a
> safety audit of Air One under the Department's Code-Share Safety Audit
> Program, and the FAA has advised us that it has reviewed the relevant
> audit program and found the program to be acceptable.
>
> **Conditions:** The Statements of Authorization granted to United and
> Air One are subject to the following conditions:

(a) The statements of authorization will remain in effect only as long
    as (i) United and Air One continue to hold the 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) United and/or Air One must promptly notify the Department (Office of
    International Aviation) 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, which
    carrier will be operating the aircraft in the code-share market
    added, and the date on which the service will begin. Such notices
    should be filed in Docket DOT-OST-2008-0001;

(c) United and/or Air One, as appropriate, must notify the Department
    immediately if the code-share agreement is no longer in effect or if
    the carriers decide to cease operating all of a portion of the
    approved code-share services.[^8] (Such notice should be filed in
    Docket DOT-OST-2008-0001.)

(d) The code-sharing 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; and the
    operating carrier shall not permit the code of its U.S. 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) Any service provided shall be consistent with all applicable
    agreements between the United States and Italy, and all applicable
    agreements with other foreign countries involved. Furthermore, (i)
    nothing in the award of this blanket statement of authorization
    should be construed as conferring upon United rights (including
    code-share, fifth-freedom intermediate and/or beyond rights) to
    serve markets where U.S. carrier rights are limited unless United
    notifies us of its intent to serve such market and unless and until
    the Department has completed any necessary carrier selection
    procedures

> 4
>
> to determine which carrier(s) should be authorized to exercise such
> rights;[^9] and (ii) should there be a request by any carrier to use
> the limited-entry route rights that are included in United's authority
> by virtue of the blanket statement of authorization granted here, but
> that are not being used by United, the holding of such authority will
> not be considered as providing any preference for United in a carrier
> selection proceeding to determine which carrier(s) should be entitled
> to use the authority at issue; and

(f) The authority granted here is specifically conditioned so that
    neither United nor Air One shall give any force or 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 United 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 applications 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 Dockets. 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:
>
> [www.regulations.gov](http://www.regulations.gov/)

![](media/image2.png){width="7.097916666666666in"
height="9.213194444444444in"}

#### [STANDARD FOREIGN CARRIER EXEMPTION CONDITIONS]{.underline}

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, the Transportation Security Administration, and with all
applicable U.S. Government requirements concerning security, including,
but not limited to, 14 CFR Parts 129, 91, and 36 and 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 Industry Representative (IIR)
(formerly referred to as International Principal Security Inspector) to
advise the IIR 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.

12/2007

## 

## [STANDARD U.S. CARRIER EXEMPTION CONDITIONS]{.underline}

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 Principal Security Inspector
(PSI) to advise the PSI 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.

##  1/2008

[^1]: Air One holds a statement of authorization for an indefinite
    duration to provide these code-share services ([see]{.underline}
    Notice of Action Taken dated November 30, 2005, in Docket
    DOT-OST-2005-22809).

[^2]: Air One states that it currently carries the US Airways' code in
    the following city-pair markets:
    Rome-Catania/Genoa/Palermo/Lamezia/Terme/Turin/Trieste/Venice. Air
    One notes that it is not currently displaying US Airways' code on
    flights between Rome-Alghero/Lampedusa/Pantelleria/Trapani or
    Venice-Bari, but anticipates the near-term resumption of
    code-sharing services between these points.

[^3]: United currently holds exemption authority to serve between the
    United States and points worldwide on a third-country code-share
    basis whereby United displays its UA designator code on flights
    operated to third-country points by its blanket code-share partners,
    and on flights operated by other foreign carriers on behalf of
    United's foreign code-share partners. The authorized foreign
    code-share partners are: Deutsche Lufthansa AG (Lufthansa), and
    other carriers that operate flights on Lufthansa's behalf (Lufthansa
    CityLine, Air Dolomiti, Condor Flugdienst, and PrivatAir); Air New
    Zealand Limited (ANZ); All Nippon Airways Co. Ltd. (ANA); Asiana
    Airlines, Inc. (Asiana); Austrian Airlines, Osterreichische
    Luftverkehrs AG (Austrian); Lauda Air Luftfahrt GmbH (Lauda);
    Polskie Linie Lotnicze LOT S.A. (LOT); Scandinavian Airlines System
    (SAS); Singapore Airlines Limited (Singapore); Tyrolean Airways,
    Tiroler Luftfahrt GmbH d/b/a Austrian arrows (Tyrolean); TAP Air
    Portugal (TAP); Swiss Air International Air Lines Ltd. d/b/a Swiss
    (Swiss); and Qatar Airways ([see]{.underline} Notice of Action Taken
    dated July 19, 2007, in Dockets DOT-OST-2004-19148 and
    DOT-OST-2007-28628.)

[^4]: The code-share partners provided a listing of specific code-share
    markets that they intend initially to serve under this arrangement.
    We have attached a pdf copy of their listing herein
    ([see]{.underline} Attachment A).

[^5]: By letters dated January 3 and February 6, 2008, the applicants
    stated, among other things, that they were not, at this time,
    requesting authority to carry the United designator code on
    transatlantic flights that may be operated by Air One. Air One has
    pending requests before the Department in Dockets DOT-OST-2008-0072
    and DOT-OST-2008-0073 for exemption and foreign air carrier permit
    authority to conduct operations in its own right to and from the
    United States. We will handle these requests separately.

[^6]: The code-share partners provided a listing of specific code-share
    markets that they intend initially to serve under this arrangement.
    We have attached a pdf copy of their listing herein
    ([see]{.underline} Attachment A).

[^7]: ^?^ On March 12, 2008, United's representative orally requested
    that this authority be granted coextensive with the current
    authority already granted in Docket DOT-OST-2004-19148.

[^8]: We expect this notification to be received within 10 days of such
    non-effectiveness or of such decision.

[^9]: The notice referenced in condition (c) above may be used for this
    notification.