UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on January 17 , 20 1 3



### NOTICE OF ACTION TAKEN

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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 i ssued in this matter).

Joint Applicant s : ETIHAD AIRWAYS P.J.S.C. (ETIHAD) ; and PT GARUDA INDONESIA (PERSERO) TBK (GARUDA INDONESIA)

Date Filed: January 8, 2013

Relief requested:

Garuda Indonesia : E xemption from 49 USC §41301 to permit Garuda Indonesia to engage in scheduled foreign air transportation of persons, property, and mail between a point or points in the Republic of Indonesia via Abu Dhabi to New York and Chicago

, under a code

- sharing arrangement with Etihad.

Etihad : Statement of au thorization under 14 CFR Part 212 to permit Etihad to display the Garuda Indonesia “GA*” designator code on scheduled flights operated by Etihad between Abu Dhabi on the one hand, and New York and Chicago, on the other hand.

The joint applicants also requ est a waiver of the 45

- day advance filing requirement under 14 CFR Part 212.

Applicant representative s : Anita M. Mosner for Etihad

, (202) 955

- 3 000 and Nana Haryana for Garuda Indonesia

, 62

- 21

- 2560

- 1123

DOT ana lyst: Brett Kruger 202

- 366

- 8025

Responsive pleadings: None.

DISPOSITION

Acti on: Approved (subject to conditions, see below)

. Action date: January 17 , 2013 1

Effective dates of authority granted: The exemption authority granted to Garuda Indonesia is effective January 17

, 2013 , through January 17 , 2015.

The statement of authorization granted to Etihad is effective January 17 , 2013 , for an indefinite period.

Our action granting a waiver of the 45

- day advance filing requirement under 14 CFR Part 212 is effective January 17

, 2013

.

Basis for approval (bil ateral agreement/reciprocity): Air Transport Agreement between the United States and the United Arab Emirates, and the Air Transport Agreement between the United States and Indonesia.

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our standard foreign carrier exemption conditions attached as Appendix A

, and to the code

- share conditions attached as Appendix B

.

1 We acted on the application without awaiting expiration of the 15

- day answer period with the consent of all parties served.Special conditions/Remarks: The exemption authority granted to Garuda Indonesia is limited to services provided on a

code

- share basis only, only on flights operated by Etihad.

Action taken by: Paul L. Gretch, Director, Office of International Aviation

________________________________________________________________________________________________________ Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our action was consistent w ith Department policy; (2) the applicant s were qualified to perform its proposed operations; (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 Poli cy and

Conservation Ac t 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 th e 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 effec tive when taken, and the fili ng of a petition for review will not alter such effectiveness.

An electronic version of this document is available on the World Wide Web at: http://www.regulations.gov

### Appendix A

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, the Transportation Security Administration, and with all applicable U.S. Government requirements concerning security, including, but no t 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 fligh ts) 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 I IR 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 t o 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, o r 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 airwor thiness 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

"in ternational 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 a uthorized, 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 require d 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 t he 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.

1 2/2007Appendix B

The code

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

(a) The statement of authorization will remain in effect only as long as (i) Etihad and Garuda Indonesia continue to hold the necessary underlying authority to operate the code

- share serv ices at issue, and (ii) the code

- share agreement providing for the code

- share operations remains in effect.

(b) Etihad and/or Garuda Indonesia must promptly notify the Department (Office of International Aviation) if the

c ode

- share agreement providing for the code

- share operations is no longer effective or if the carriers decide to cease operating all or a portion of the approved code

- share services. Such notices should be filed in Docket DOT

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( c ) The code

- sharing operations conducted unde r this authority must comply with 14 CFR 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 expressl y conditioned upon the requirements that the subject foreign air transportation be sold in the name of the carrier holding out such service in the computer reservation systems and elsewhere; that the carrier selling such transportation ( i.e., the

carrier s hown 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.

( d ) The authority granted here is specifically conditioned so that neither Etihad nor Garuda Indonesia shall give any force or effect to any contractual provisions between themselves that are contrary to these conditions.

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

.

2 We expect this notification to be received within 10 days of such non

- effectiveness or of such decision.