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

### Issuedby the Department ofTransportation on November 16, 2012 NOTICE OF ACTION TAK];N --DOCKETDOT-OST-2012-0155 

### This 

### serves ru;

### noticetothepublicof 

### the actiondescribedbelow,takenbytheDepartmentofficial indicated

### (no additional 

### confuming order

### will beissued in

### this matter). 

### Amended Joint Application ofUS AIRWAYS, INC. ("US Airways") 1 and AEROVIAS DEL CONTINENTE AMERICANO S.A. ("Avianca"), 

### filed October 18,2012,2 

### for: XX Exemption under 49 USC §40I09 for US Airways to provide the following service: Scheduled foreign airtransportation ofpersons, property, and 

### mail on a code-share basis only between any points in theUnited States, and any points in Colombia, via intermediate and beyondpoints pursuantto its codeshare arrangement with Avianca or any otherauthorized carrier. 

### XX Statements ofauthorization in order to engage in the following code-share services: 3 4 (A) US Airways requests a statement ofauthorization to display the Avianca "A 

### V'' designator code, in conjunction with Avianca's services in foreign air transportation, on flights operated byUS Airways (1) between anypoints within theUnited States; (2) between anypoints in the United States and any points in Colombia (either non-stop or via third country intermediate points); and (3) between any points in theUnited Statesand any points in third countries; 5 (B) Avianca requests a statement ofauthorization to display the US Airways "US" designator code, in conjunctionwith US Airways' services inforeign air transportation, onflights operated by Avianca (1) between aJiy points within Colombia; (2) between any points in the United States and any points in Colombia (eithernon-stop orvia third countryintermediate points); and (3) between any points in Colombia and any points in third counties. 6 

### Applicant representatives: Howard K.ass CUS Airways), 202-326-5153; and Richard Mathias (Avianca), 202-298- 

### 8660

. DOT 

### analyst: Darren Jaffe, 202-366-2512 DISPOSITION XX Approved, exemption authority to US Airways (subject to conditions, see below).

1 US Airways also applies onbehalfofits affiliated carriers Piedmont Airlines, Inc. (Piedmont) and PSA Airlines, Inc. (PSA). 2 The carriers initially filed ajoint application on September 13, 2012, but have withdrawn the initial application and replaced it in its entirety with this application. 3 See Appendix C for a list ofinitial code-share points. 4 Thejoint applicants filed a motion under 14 CFR §302.12 requesting confidential treatment oftheir unredacted Codeshare Agreement. We will grant the motion. 5 Avianca holds exemption authority authorizing itto engage in tbreign scheduled air transpottation ofpersons, property, and mail for the purposes ofserving as the non-operating carrier on code-share seniices from points behind Colombia via Colombia and intermediate points and points in the United States and beyond. See Notice ofAction Taken dated August 30, 2012,in Docket DOT- .OST-2012-0137.

' 6Avianca holds exemption authority authorizing it to operate scheduled air service from points behind Colombia, via Colombia, to a number ofnamed points in the United States and beyond pursuant to Notice ofAction Taken. March 19, 2012. Docket DOT-OST2011-0211.

.

### XX Approved, statement ofauthorization to US Airways (subject to conditions, see remarks below). XX Approved, statement ofauthorization to Avianca (subject to conditions). The above action granting exemption authority to US Airways was effective when taken: November 16, 2012, through November 16. 2014. The above actions granting statements ofauthorization to the referenced carriers are effective November 16, 2012, except thatelement (2) ofthe statement ofauthorization for U.S. Airways shall become effective only when the U.S.- Colombia Open Skies Agreement is being applied (see conditions below). Once effective, these actions will remain in effect indefinitely, subjectto conditions. Action taken by: PaulL Gretch, Director, Office oflnternational Aviation XX The authority granted is consistent with the United States-Colombia Air TransportAgreement Except to the extent exempted or waived, this authority is subject to the terms, conditions, and limitations indicated: xx·Holders' certificates ofpublic convenience and necessity XX Standard U.S. carrierexemption conditions (attached as Appendix A) 

### .XX Conditions for statements ofauthorization (attached as Appendix B) Conditions: We note that at this time, US Airwaysdoes not hold the necessary authority to operate U.S.-Colombia services with 

### its own aircraft. When the U.S.-Colombia Open Skies agreement takes effect, scheduled for January 1, 2013, US Airways will hold the necessary authority to serve the U.S.-Colombia market with its own aircraft, pursuant to its Blanket Open Skies Certificate (Order 2007-4-20). Therefore, we are approving, effective immediately, the request ofUS Airways for a statement ofauthorization to display the "AV" designator code between points withinthe United States, and between any points in the United States and any points in third countries, but we are deferring the effective date ofour approval ofUS Airways' request to display the '·AV" designator code between any points in the United State.S and any points in""Colombia until such time as the U.S.-Colombia Open Skies Agreement is being applied. Once the agreement is being applied, no further action by the Department will be required. The exemption authority granted to US Airways is limited to operations conducted onlythrough 

### its code-share arrangements with Avianca or other authorized canjers holding statements ofauthorization, on flights operated by those authorized carriers. Remarks: ·We note that US Airways has 

### conducted a safety audit ofA viancaunder the Department's Code-Share Safety Audit Program, and the FAA has advised us that it has reviewed the relevant audit report and found itto be acceptable. On

### the basis ofdata officially noticeable underRule 24(g) ofthe Department's regulations, we found US Airways qualified to provide the exemption services authorized. Under authority ·assigned by the Department in its regulations, 14 CFR Part 385, we found that (I) 

### our action in this notice was consistent with Department policy; (2) grant ofthe exemption authority to US Airways was consistent with the public interest; and (3) grant ofthat authority would not constitute a major federal action under the Energy Policy and Conservation Act of I975. To the extent not granted or deferred, 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 ofthe 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 ofissuance ofthis Notice. This action was effective when taken, and the filing ofa petition for review will not alter such effectiveness. An electronic version ofthis document is available on the World Wide Web at: http:liWW\i-'.regulations.gov. . 

### U.S. 

### Carrier Exemption Conditions· In the conduct ofthe operations authorized, the U.S. carrierapplicant(s) shall: (1) Hold at all times effective operating authority from the government ofeach country served; (2} Comply with applicable requirements concerning oversales contained in 14 CFR 250 (for scheduled operations, ifauthorized); (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 ofI 4 CFR 203, concerning waiver ofWarsaw Convention liability limits and defenses; (6) Comply with all applicable requirements ofthe Federal Aviation Administration, the Transportation Security Administration, and with all applicable U.S. Goveniment requirements concerning security, including, but not limited to, 49 CFR Part 1544. To assure compliance with airapplicable 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 ofits plans and to find out whether the Transportation Security Administration has detennined that security is adequate to allow such airport(s) to be served; (7) Comply with such other reasonable terms, conditions, and limitations required by the public interest as may be prescribed by the Department ofTransportation, with all applicable orders and regulations ofotherU.S. agencies and courts, and with all applicable laws ofthe United States. The authority granted shall be effective only during the period when the holder is in compliance with the conditions imposed above.

112008

### AppendixB The code-share operations authorized here are subject to the following conditions: (a) The statements

# ofauthorization will remain in effect only as long as (i) US Airways and Avianca continueto 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) US Airways and Aviailca, as appropriate,·must notify the Department no laterthan30 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 carrierwill be operatingthe aircraft in the code-share market added, and the date on which the service will begin. Such notice should be filed 

### in Docket DOT-OST-2012-0155. 7 (c) US Airways and Avianca, as appropriate, must promptly notify the Departmentifthe code-share agreement providing for the code-share operations is no longer effective or ifthe carriers decide to cease operating all or a portion ofthe approved code-share services. Such notice should be filed in Docket DOT-OST-2012-0155. 8 (d) Thecode-sharingoperations conducted under this authority must comply with I 4 CFR257 and with any amendments tothe Department's regulations concerning code-share arrangements that may be adopted. Notwithstanding any provisions inthe contract between the carriers, our approval here is expressly conditioned upon the requirements thatthe subject foreign air transportation be soldinthe name ofthe carrier holding out such service iri the computer reservation systems and elsewhere; that the carrier selling such transportation (i.e., the carrier shown onthe ticket) accept responsibility for the entirety ofthe code-sharejourney for all obligations established in its contract · ofcarriage with the passenger; thatthe passenger liability ofthe operating carrierbe unaffected; and thatthe operating carrier shall not permit the code ofits l).S. code-sharing partner to be carried on any flight that enters, departs, or transits the airspace ofany area for whose airspace the Federal Aviation Administration has issued a flight prohibition. (e) The authority to operate to third countries is subject to the condition that any service provided underthe statement ofauthorization shall be consistent with all applicable agreements between the United States and the foreign countries involved. Furthermore, (i) nothing in the award ofthis blanket statement ofauthorization should be construed as conferring upon US Airways rights (includingcode-share, fifth freedom intermediate and/or beyond rights) to serve markets where U.S. carrier entry is limited unless US Airways notifies the Department ofits intentto serve such a market and unless and until the Department has completed any necessary carrier selection procedures to determine which carrier(s) should be authorized to exercise such rights; and (ii) should there be a request by any cairierto use the limited-entry route rights that are included in the authority ofUS Airways by virtue ofthe blanket statement ofauthorization granted here, butthat are not then beingused by US Airways, thehold)ng ofsuch authority will not be considered as providing any preference for US Airways in a competitive carrier selection proceedingto determine which carrier(s) should be entitled to use the authority at issue.9 (f) The authority grantedhere is specifically**c~mditioned** so that neither US Airways, nor Aviarica shall give any force or effect to any contractual provisions betweenthemselves that are contrary to these conditions. We may amend, modify, orrevoke the authority granted at any time without hearing at otir discretion.

7We wil! grant the carriers request that notice for US Airways be deemed notice for its affiliates; however, notice ofnew service by

1Avianca shall not be deemed notice by US Airways until the Open-Skies Agreement is being applied. 8 We expect this .notification to be received within ten (I0) days after such non-effectivenessor ofsuch-decision. 9 The notice in paragraph (b) above can be used for this notification.

### INITIALLJSTOFCDDESHAREPOINIS 1. · 

### Routes

### withinNCH1hAmerica,USAinwys'-"111**rethe~Party**

### arrlAviarmwillbe

### the**~Party: ForiLaOOerdal.~;FL-ReaganNatiooaiW~IXYCharlotte,~PA/Fh:JerJix,AZ**  

### D.illesWashington,OC-OJarlotte,NC JohnF.Kemrly(NYC)-Chadotte,NC/lli<:mix,AZ 

### Miami.FLGJarlotte,

## NOPhiJa:le4XliaPA 

### Oiarxlo,FUl!arlotte,

### NOReaganNalicml**W~OOPhiladelphia,PNPtrelix,AZ** 

### Hru;too, 1X-Hxx:nix,

### AZ!Omotte,NC 

### APPENDIXC

2**Routes~ColombiaandNa1hAmerica,AviarmwillretheQJerntingPartyarrlUSAirwa)swillretheMarl<etingPat1y:** 

### FortLaOOerdal.t; FlrBog:lla,

### Colombia JohnF.Kamedy(NYC)-13ogota'Merellin**Miami,FL-~erellin** omh,FLBogota :