UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on July 31 , 20 1 2

NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 201 0

- 0265

_______________________________________________________________________________________________ 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 : JETSTAR AIRWAYS PTY. LIMITED (Jetstar) Date Filed: Ju ly 24, 2012

Relief requested: Renewal of e xemption from 49 USC §4 1301 to the extent necessary to permit Jetstar to display the AA* code of American Airlines, Inc. (American) on intra

- New Zealand flights operated by Jetstar, for the purpose of transporting American code

share traffic from Qantas Airways

- operated U.S.

- New Zealand flights.

Jetstar requests an amended statement of author ization under 14 CFR Part 212 to permit it to display the AA* code in conjunction with foreign air transportation of persons, property, and mail on Jetstar operated flights between points behind Australia, p oints in Australia, and intermediate points, to p oints in the United States and beyond, in addition to Jetstar

- operated flights within New
Zealand. 1 2 Jetstar further requests a waiver of the 45

- day advance filing requirement under 14 CFR Part 212.

If renewal, date and citation of last action: October 29 , 201 0 , in Docket DOT

- OST

- 20 10

- 0265

. Applicant representative s : Moffett B. Roller, 202

- 331

- 3300 DOT analyst: Brett D. Kruger, 202

- 366

- 8025

Responsive pleadings: None.

DISPOSITION

Action: Approved , subject to conditions

.

Action date: July 31 , 20 1 2 3

Effective dates of authority granted: The exemption authority granted is effective July 31 , 2012, through July 31 , 2014

.

The statement of authorization granted is effective July 31 , 2012

, and shall remain in effect for an indefinite period, subject to
conditions

.

The waiver of the 45

- day advance filing requirement is effective July 31 , 2012.

Basis for approval (bil ateral agreement/reciprocity): The Multilateral Agreement on the Liberalization of International Air Transportation (MALIAT) and the U nited States

- Australia Air Transport Agreement.

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

- share conditions attached as Appendix B

. 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 act ion 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 exten t not

1 Jetstar currently holds a statement of authorization to display the AA* designator code on intra

- New Zealand flights operated by Jetstar, for the purpose of transporting American code

- share traffic from Qantas Airways

- operated U.S.

- New Zealand flights ( see Notice of Action Taken dated October 29, 2010, in this Docket).

2 We note that Jetstar holds a foreign air carrier permit authorizing it to engage in (1) foreign scheduled and charter air transportation of persons, property, and mail from points behind Australia via Australia and intermediate points, to a point or points in the United State s and beyond; (2) foreign scheduled and charter air transportation of property between any point or points in the United States and any other point or points; and (3) other charters pursuant to the Department’s regulations governing
charters. See Order 201 0

- 8

- 2.

3 We acted on this application without awaiting expiration of the 15

- day answer period with the consent of all parties served.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 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 effec tive when taken, and the filing of a petition for rev iew will not alter such effectiveness.

An electronic version of this document is available on the World Wide Web at: http://www.regulations.govAppendix 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 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 wo uld 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 Trans portation 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 operation s 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 sh all 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 require ments 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 defen ses;

(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 contra ct 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 "in ternational 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 prescrib ed 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 con ditions imposed above. Moreover, this authority cannot be sold or otherwise transferred without explicit Department approval
under Title 49 of the U.S. Code.

12/2007Appendix 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) American and Jetstar continue to hold the necessary 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 ) American and/or Jetstar , as appropriate, must notify the Dep artment 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 and the date on which the service will begin. Such notice should be filed in D ocket DOT

- OST

- 2 01 0

- 0265

. 4

(c ) American and/or Jetstar

, as appropriate, must promptly notify the Department if the code

- share agreement providing for the code

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

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

- OST

- 201 0

- 0 265

. 5

( d ) The code

- sharing operations conducted under 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 expressly conditioned upon the requirements that the subject foreign air transportation be sold in the name o f 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 of the code

- share journey for all obligati ons 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.

( e ) The authority granted here is specifically conditioned so that neither American nor Jetstar shall give any fo rce 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.

4 Jetstar provided notice of its intent to engage in code

- share services by displaying the AA* code between U.S. points an d points in any open skies country

. 5 We expect this notification to be received within ten (10) days after such non

- effectiveness or of such decision.