UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation on April 28, 2014

NOTICE OF ACTION TAKEN – DOCKETS DOT-OST-2014-0044, DOT-OST-2012-0117, and 

DOT-OST-2010-0087 ________________________________________________________________________________________________________________________________

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).

Joint Applicants: US AIRWAYS, INC., (US Airways),1 PIEDMONT AIRLINES, Inc. (Piedmont), PSA AIRLINES, 

Inc. (PSA), IBERIA LÍNEAS AÉREAS DE ESPAÑA SOCIEDAD ANÓNIMA OPERADORA (Iberia), 

COMPANÍA OPERADORA DE CORTO Y MEDIO RADIO IBERIA EXPRESS, S.A.U. (Iberia Express), and 

AIR NOSTRUM LÍNEAS AÉREAS DEL MEDITERRÁNEO, S.A. (Air Nostrum)

Date Filed: March 28, 2014 

Relief requested: Amendment of exemption under 49 USC §40109 to permit Iberia Express to engage in foreign air 

transportation of persons and property to the extent necessary to display both the “AA” designator code of American 

Airlines, Inc. (American) and the “US” designator code of US Airways on Iberia Express flights within the EU and 

between the EU and third countries.

2

Exemption under 49 USC § 40109 to permit Air Nostrum to engage in foreign air transportation of persons and property 

to the extent necessary to permit Air Nostrum to display both the “AA” designator code of American and the “US” 

designator code of US Airways on flights within the EU and between the EU and third countries pursuant to Iberia’s codeshare agreement with American.

3

The joint applicants also request statements of authorization under 14 CFR Part 212, as follows:

A. Blanket statements of authorization under 14 CFR Part 212 to permit US Airways and PSA to display the Iberia 

“IB” designator code on flights operated by US Airways and PSA (i) between any point or points in the United 

States and any point or points in the EU (either non-stop or via third country intermediate points); (ii) between 

any point or points in the EU and any point or points in third countries; (iii) between U.S. points; and (iv) between 

any point or points in the U.S. and any point or points in third countries.

B. Blanket statement of authorization under 14 CFR Part 212 to permit Piedmont to display the Iberia “IB”

designator code on flights Piedmont operates between points in the United States.

C. Blanket statement of authorization under 14 CFR Part 212 to permit Iberia to display the US Airways “US”

designator code on flights operated by Iberia (i) between any point or points in the United States and any point or 

points in the EU (either non-stop or via third country intermediate points); (ii) between any point or points in the 

 1 The joint applicants state that, following the merger of US Airways and American on December 9, 2013, US Airways qualifies as an 

affiliate of American for the purposes of the existing codeshare agreement between American and Iberia, since under the American–

Iberia Code Share Agreement, “Affiliate” means, with respect to any person or entity, any other person or entity, directly or indirectly, 

Controlling, Controlled by, or under Common Control with such person or entity...” Joint application at 2, note 2. Regarding our 

approval of the American–Liberia code-share, see Department action dated March 13, 2008, in Docket DOT-OST-2008-0044. 2 Iberia Express currently holds exemption authority to engage in foreign air transportation of persons and property to the extent 

necessary to display the AA* code of American on Iberia Express flights within the EU and between the EU and third countries. See 

Notice of Action Taken dated July 19, 2012, in Docket DOT-OST-2012-0117. 3 Air Nostrum states that its exemption authority to permit it to display the (AA*) designator code of American Airlines, Inc. 

(American) on flights within Spain, and between Spain and third countries pursuant to the code-share agreement between American 

and Iberia Lineas Aereas de Espana, S.A. (Iberia) expired due to an administrative oversight. In its instant request, Air Nostrum 

incorporates by reference the information provided in its original exemption application and states that the information remains 

accurate. See Notice of Action Taken dated May 24, 2010, in Docket DOT-OST-2010-0087.
United States and any point or points in third countries; (iii) between EU points; and (iv) between any point or 

points in the EU and any point or points in third countries.

D. Blanket statements of authorization under 14 CFR Part 212 to permit Iberia Express and Air Nostrum to display 

the US Airways “US” designator code on flights operated by Iberia Express and Air Nostrum between EU points, 

and beyond the EU to any point or points in third countries.

The Joint Applicants further request a waiver of the 45-day advance filing requirement under 14 CFR Part 212.

Applicant representatives: Howard Kass, Abigail Donovan, 202-326-5153, and Robert A. Wirick, 817-963-0394 (US 

Airways) & Don H. Hainbach and Jason E. Maddux, 202-776-3970 (Iberia, Iberia Express, and Air Nostrum)

DOT analyst: David R. Christofano, 202-366-0584

Responsive pleadings: None

DISPOSITION

Action: Approved, subject to conditions Action date: April 28, 2014

Effective dates of authority granted: Iberia Express’ exemption authority is effective from April 28, 2014, through

April 28, 2016. 

Air Nostrum’s exemption authority is effective from April 28 2014, through April 28, 2016. 

The statements of authorization granted to the joint applicants are effective April 28, 2014, and will remain in effect for an 

indefinite duration, subject to conditions. 

Our action granting the joint applicants’ request for waiver of the 45-day advance filing requirement under 14 CFR Part 

212 is effective April 28, 2014.

Basis for approval (bilateral agreement/reciprocity): U.S.-EU Air Transport Agreement.

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our standard 

foreign air carrier exemption conditions attached as Appendix A and codeshare conditions attached as Appendix B.

Special conditions/Remarks: We note that Air Nostrum is operationally and financially qualified to conduct the proposed 

services, and that it is substantially owned and effectively controlled in a manner consistent with the provisions of the 

U.S.-EU Agreement.

4

 We also note that US Airways has conducted safety audits of Iberia, Iberia Express, and Air 

Nostrum under the Department’s Code-Share Safety Audit Program, and the FAA has advised us that it has reviewed the 

relevant audit reports and found them 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 applicants were qualified to perform their 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 Policy and 

Conservation Act of 1975. To the extent not granted, we denied all requests in the referenced Dockets. 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 such effectiveness.

An electronic version of this document is available on the World Wide Web at:

http://www.regulations.gov

 4 We make this finding based on Article 2 (Reciprocal Recognition of Regulatory Determinations with Regard to Airline Fitness and 

Citizenship) of the Protocol to amend the U.S.-EU Air Transport Agreement, signed June 24, 2010.
Appendix A

Foreign Air Carrier Exemption Conditions

In the conduct of the operations authorized, each foreign carrier applicant 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 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 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 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 (AFS260), Flight Standards Service (any changes to, or 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 airworthiness 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 

"international 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 a 

Member State of the European Union;

(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 

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 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.

EU carrier 01/2008
Appendix B

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

(a) The statements of authorization will remain in effect only as long as (i) American, US Airways, Piedmont, PSA, 

Iberia, Iberia Express, and Air Nostrum 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, US Airways, Piedmont, PSA, Iberia, Iberia Express, and/or Air Nostrum must promptly notify the 

Department (Office of International Aviation) 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 portion of the approved code-share services. 

Such notices should be filed in Dockets DOT-OST-2014-0044, DOT-OST-2012-0117, and DOT-OST-2010-0087.

1

(c) American, US Airways, Piedmont, PSA, Iberia, Iberia Express, and/or Air Nostrum must notify the Department 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, which carrier will be operating the aircraft in the code-share market 

added, and the date on which the service will begin. Such notices should be filed in Dockets DOT-OST-2014-0044, 

DOT-OST-2012-0117, and DOT-OST-2010-0087.2

(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 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 of 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.

(e) Any service provided shall be consistent with the provisions of the U.S.-EU agreement, and all applicable agreements 

with other foreign countries involved. Furthermore, (i) nothing in the award of the blanket statements of authorization 

should be construed as conferring upon American, US Airways, Piedmont, or PSA rights (including code-share, fifthfreedom intermediate and/or beyond rights) to serve markets where U.S. carrier rights are limited unless American, US 

Airways, Piedmont, and PSA notifies us of their intent to serve such 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;3 and (ii) should there be a request by any carrier to use the limited-entry route rights that are included in 

American, US Airways, Piedmont, or PSA’s authority by virtue of the blanket statements of authorization granted here, 

but that are not being used by American, US Airways, Piedmont, or PSA, the holding of such authority will not be 

considered as providing any preference for American, US Airways, Piedmont, or PSA in a carrier selection proceeding 

to determine which carrier(s) should be entitled to use the authority at issue;

(f) The authority granted here is specifically conditioned so that neither American, US Airways, Piedmont, PSA nor 

Iberia, Iberia Express, and Air Nostrum 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.

 1 We expect this notification to be received within 10 days of such non-effectiveness or of such decision. 2 The applicants provided notice of their intent to engage in in reciprocal codeshare services i) between points in the United States and

points in the EU (both nonstop and intermediate routings via open skies points); ii) between points in the United States and points in 

the European Common Aviation Area where open skies applies; iii) between points in the United States; iv) between points in the EU; 

v) beyond the EU to open skies points; and vi) beyond the United States to open skies points. 3 The notice referenced in condition (c) above may be used for this notification.