UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on April 11, 201 2



### NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 20 0 7

- 28896

_____________________________________________________________________________________________________________________________ ___ 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).

Applicant 

### : Croatia Airlines Date Filed: March, 16, 2012

Relief requested: (1) R enew e xemption from 49 U.S.C. § 41301 to e ngage in scheduled foreign air transportation of persons, property and mail from points behind Croatia, via Croatia and any intermediate points, to any point or points in the United States and beyond pursuant to code

- share agreement s with United Air Lines Inc. and Scandinavian Airlines System ; and (2) amend th at exemption to the extent necessary to allow the applicant to conduct such code

- share services with any duly authorized U.S. or foreign air carrier. 1

The applicant requests that its exemption authority be granted for a period of at least two years.

If renewal, date and citation of last action: April 4, 2011, in this docket

Applicant representative: David Heffernan (202) 663

- 6360 DOT Analyst: Shelita A. Johnson (202) 366

- 1226

Responsive pleadings: None filed

DISPOSITION

Action: Approved in part (one

- year grant), remainder (request for longer

- term authority) dismissed. 2

Ac tion date : April 11, 2012

Effective dates of exemption authority granted : April 11, 2012

– April 11, 201 3

Basis for approval (bilateral agreement/reciprocity) : U.S.

- Croatia Air Transport Agreement

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations indicated:

X Standard exemption conditions (attached) Foreign air carrier permit ( Order )

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) the applicant is qualified to perform the proposed operations; (2) our action was consistent with Department policy; (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 Policy and Conservation Act of 1975. To the extent not granted/deferred/d ismissed, 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 suc h effectiveness.

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

1 The applicant states that it will not begin code

- share services with another carrier until a statement of authorization and any other required authority has been granted by the Department.

2 The one

- year duration of the authority we granted is consistent with our usual policy of granting exemption authority in the circumstances presented. We, therefore, dismissed the application to the extent that it sought authority for a longer period

.12/2007 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 not limited to, 14 CFR P arts 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 airp ort 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 whethe r 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, insu rance 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 com petency 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 tribun al 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 fo r 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

transp ortation" 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, ori ginate 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 o therwise 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 intere st 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 co mpliance 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

.