UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on August 13 , 2013



### NOTICE OF ACTION TAKEN

– DOCKET DOT

- OST

- 2013

- 0010

_______ ______________________________________________________________________________ ________ ______________ 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: SKY REGIONAL AIRLINES/LIGNES AERIENNES SKY REGIONAL INC (Sky Regional)

Date Filed : January 14, 2013

Relief requested:

Statement of authorization under 14 CFR part 212 for an indefinite period to enable Sky Regi onal to display the ( UA* ) designator code of United Air Lines , Inc. (United) on flights operated by Sky Regional for U.S.

- Canada transborder

service

. 1

Date and citation of last action: February 1, 2013, in this Docket.

Applicant representative: Don H. Hainbach, 202

- 776

- 3970 DOT analyst: Darren Jaffe, 202

- 366

- 2512

Responsive pleadings: None.

DISPOSITION

Action: Approved , subject to conditions Action date: August 13 , 2 013

Effective dates of authority granted: The statement of authorization granted to Sky is effective August 13 , 2013, and shall

remain in effect for an indefinite period , subject to conditions

.
Basis for approval (bilateral agreement/reciprocity): United States

- Canada Air Transport Agreement.

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitation of the attached

code

- share conditions.

Special conditions/Remarks: We note that United has conducte d a code

- share safety audit of Sky Regional under the Department’s code

- share safety audit program and the FAA has advised the Department that it has reviewed the relevant audit report and found it to be acceptable.

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 with Department policy; (2) the applicant s w ere qualified to perform their proposed operations; (3) grant of the authority was consistent

1 Our present action addresses the remaining portion of the applicant’s pending request in this Docket on which the Department had previously deferred action. By Notice of Action Taken dated February 1, 2013, we granted the request of Sky Regional for a

statement of authorization to operate U.S.

- Canada transborder services on behalf of Air Canada. These services would be operated under the Air Canada Express trade name and marketed by Air Canada under its (AC*) designator code. We also granted statements

of authorization permitting Sky Regional to display the designator codes of the following Air Canada code

- share partners : Deutsche Lufthansa AG; TACA International Airlines, S.A.; Lineas Aereas Costarricenses S.A.; All Nippon Airways Co., Ltd.; Air New Zealand Limited; Asiana Airlines, Inc.; South African Airways (Pty) Limited; Scandinavian Airlines Syste m; Singapore Airlines Limited; and TAP Air Portugal. A t that time , United had not yet conducted a code

- share safety audit of Sky Regional and we accordingly deferred on Sky Regional’s request for a statement of authorization to display the ( UA* ) designato r code of United

. United has since conducted the code

- share safety audit and the FAA has advised the Department that it has reviewed the relevant audit report and found it to be acceptable; therefore, we are now granting the remainder of the applicant’s r equest.with the public interest; and (4) grant of the authority would not constitute a major regulatory action und er the Energy Policy and Conservation Act 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 disc retion.

Persons entitled to petition the Department for review of the action set forth in this Notice under the Department’s regulati ons, 14 CFR §385.30, may file their petitions within seven (7) days after the date of issuance of this Notice. This actio n 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: http://www.regulations.gov

### Th e Statement of Authorization granted is subject to the following conditions:

(a) The statement of authorization will remain in effect only as long as Sky Regional , Air Canada, and United continue to hold the underlying authority to operate the code

- share services at issue, and the code

- share agreement providing for the code

- share operations remains in effect.

(b) Sky Regional , Air Canada, and/or United must promptly notify the Department if the code

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

- share

services. 2 

### (Such notice should be filed in Docket DOT

- OST

- 2013

- 0010 .)

(c) The code

- sharing operations conducted under this authority must comply with 14 CFR 257 and with any

am endments 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 the computer reservation systems and elsewhere; that the carrier selling such transportation ( i.e., the carrier shown on the ticket) accept responsibility for the entirety o f the code

- share journey for all obligations established in its contract of carriage with the passenger; that the passenger liability of the operating carrier be unaffected; and that 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.

(d) The authority granted here is specifically conditioned so that neith er Sky Regional . Air Canada, nor United shall give any force or effect to any contractual provisions between themselves that are contrary to these

conditions.

(e) We may amend, modify, or revoke the authority granted at any time without hearing at our di scretion.

Persons entitled to petition the Department for review of this action under the Department’s regulations, 14 CFR §385.30, should file their petitions within seven days of the date of this action. This action is effective immediately, and the filing of a petition for review will not alter its effectiveness.

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

- effectiveness or of such decision.