UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC



### Issued by the Department of Transportation on March 18, 2010

NOTICE OF ACTION TAKEN -- DOCK ETS DOT-OST-2010-0042 and DOT-OST-2010-0043

This serves as notice to the public of the action described below, taken by the Depa rtment official indicated (no additional confirming order will be issued in this matter).

1. Docket DOT-OST-2010-0042:

Joint Application and Notice of US AIRWAYS, INC. (US Airways) 1 and BRUSSELS AIRLINES NV/SA (Brussels Airlines) (collectively, “Joint Applicants”), filed 2/23/10 , for blanket statements of authorization to permit:

US Airways to display Brussels Airlines’ (SN*) designator code on flights operated by US Airways between: (1) any point in the United States and any point in the European Union (EU) or an open skies European Common Aviation Area (ECAA) country (either nonstop or via third country intermediate points); (2) any points within the United States in conjunction with services held out by Brussels Air lines to or from the United States (either nonstop or via third country intermediate points); and (3) any point in the United States or the EU and any point in any third
country.

Brussels Airlines to display US Airways’ (US*) designator code on flights operated by Brussels Airlines between: (1) any point in the EU or an open skies ECAA country and any point in the United States (either nonstop or via third country intermediate points); (2) any points within the EU or open skies ECAA countries in conjunction with services held out by US Airways between the United States and the EU or open skies ECAA countries (either nonstop or via third country intermediate points); and (3) an y point in the EU or the United States and any point in any third country. 2

The Joint Applicants state that they plan to commence these reciprocal code-share services on or about March 28,

2010. 3 4

2. Docket DOT-OST-2010-0043:

Application of US AIRWAYS filed 2/17/10 , for:

XX Exemption for two years under 49 U.S.C. 40109 to provide the following service:

Scheduled foreign air transportation of property and mail between a point or points in the United States, via intermediate points, to: Abijan, Cote d’ Ivoire; Bu jumbura, Burundi; Conakry, Guinea; Kinshasa, Democratic Republic of Congo (Zaire); Freetown, Sierra Leon; Luanda, Angola; and Lomé, Togo. US Airways states that it intends to provide these services pursuant to a code-share arrangement with Brussels Airlines.

1 US Airways also applies on behalf of its affiliated carrier s Piedmont Airlines, Inc. (Piedm ont) and PSA Airlines, Inc. (PSA)

. 2 Brussels Airlines holds the requisite underlying authority to provide the services proposed ( see Orders DOT-OST-2009-12-7 andDOT-OST-2010-3-11, in Docket DOT-OST-2009-0287). US Airways holds the requisite underlying authority to provide the openskies services proposed ( see US Airways’ certificate for Route 839, issued by Order 2007-4-20 in Dockets DOT-OST-2005-22228 and DOT-OST-2005-22578), and concurrently with this joint application requests exemption authority to provide service to the non-o penskies points contemplated in this code-share arrangement ( see below).

3 The Joint Applicants provide notice of their initially-planned code-share services, including a notice for blanket open-skie s service and a notice for service to various non-open skies points listed in Attachment A. The Joint Applicants request a waiver of the 45-day advance filing requirement in 14 CFR 212.10(d)(2) for such notices.

4 The Joint Applicants request that the Department deem any 30- day notices given by Brussels Airlines, US Airways, Piedmont, a nd/or PSA, as notice given by all of these code-share partners.Applicant reps: Howard Kass for US Airways (202) 326-5153 and Evel yn D. Sahr for Brussels Airlines (202) 659-6622 DOT Analyst: Linda L. Lundell (202) 366-2336

D I S P O S I T I O N

XX Granted (subject to conditions, see below) (see Remarks, below) 5 6

The above action granting exemption authority to US Airways was effective when taken: March 18, 2010

, through March 18, 2012

.
The above action granting blanket statements of aut horization to the Joint Applicants is effective: March 18, 2010

.

Action taken by: Paul L. Gretch, Director

Office of International Aviation

XX The authority granted is consistent with the aviatio n agreement between the United States and the European Union, and the overall aviation relationship between the United States and the other foreign countries involved.

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

XX US Airways’ certificates of public convenience and necessity

XX Standard U.S. carrier exemption conditi ons (see Attachment B to this Notice)

XX Conditions for statements of authorization granted here (see Attachment C to this Notice)



### Remarks: We note that US Airways has conducted a safety audit of Brussels Airlines under the Department’s CodeShare Safety Audit Program, and the FAA has advised us that it has reviewed the relevant audit program and found the program to be acceptable.

We also note that World Airways, Inc. (World) filed a cons olidated answer in support of the captioned applications and urged the Department to grant, contemporaneously, World’ s Houston-Luanda exemption request in Docket DOT-OST2009-0146. This authority has already been granted ( see Notice of Action Taken dated March 10, 2010, in Docket DOTOST-2009-0146).

On the basis of data officially noticeable under Rule 24(g) of the 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 (1) our action was consistent with Department policy; (2) grant of the authority was consiste nt 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 extent not granted, we denied all request s 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 da te 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: www.regulations.gov

5 We grant the Joint Applicants’ request to deem future 30-day notices given by one of the subject code-share partners as noti ce by all of the subject code-share partners, with the exception of notice(s) involving U.S.-Mexico code-share services. For any U.S.-M exico code-share services, the Joint Applicants must file a 30-day notice(s) specifying the proposed city-pair route(s), the carrier flying the aircraft, and the carrier(s) that will be placing its designator code on the operating aircraft on the subject route(s). Addit ional regulatory requirements may need to be satisfied, which we will address by separate action as needed.

6 We grant the Joint Applicants’ unopposed request for a waiver of the 45-day advance filing requirement.ATTACHMENT A

NOTICE FOR NON-OPEN-SKIES POINTS, WHEREBY US AIRWAYS’ CODE WILL BE PLACED

ON BRUSSELS AIRLINES’ FLIGHTS :

Between Brussels, Belgium and the following:

- Adijan, Cote d’ Ivoire

- Bujumbura, Burundi

- Conakry, Guinea

- Kinshasa, Democratic Republic of Congo

- Freetown, Sierra Leon

- Luanda, Angola

- Lomé, TogoATTACHMENT B

U.S. Carrier Exemption Conditions

In the conduct of the operations authoriz ed, the U.S. carrier applicant(s) shall:

(1) Hold at all times effective operating authority from the government of each country served;

(2) Comply with applicable requirements concerning over sales contained in 14 CFR 250 (for scheduled operations, if authorized);

(3) Comply with the requirements for reporting data contained in 14 CFR 241;

(4) Comply with requirements for minimum insurance cove rage, 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 of 14 CFR 203, concerning waiver of Warsaw C onvention liability limits and defenses;

(6) Comply with all applicable requirements of the Fe deral Aviation Administration, the Transportation Security Administration, and with all applicable U.S. Government re quirements concerning security, including, but not limited to, 49 CFR Part 1544. To assure compliance with all applicable U.S. Government requirements concerning security, the holder shall, before commencing any new service (including charter fli ghts) to or from a foreign airport, contact its Principal Security Inspector (PSI) to advise the PSI 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; *

(7) Comply with such other reasonable terms, conditions, and limitations required by the public interest as may be prescribed by the Department of Transporta tion, with all applicable orders and regulations of other U.S. agencies and courts, and with all applicable laws of the United States.

The authority granted shall be effective only during the pe riod when the holder is in compliance with the conditions imposed above.



### 1/2008

* We note that the Transportation Security Administration has not yet approved scheduled passenger service to Luanda.ATTACHMENT C

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

(a) The statements of authorization will remain in effect only as long as (i) US Airways and Brussels Airlines 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 ope rations remains in effect.

(b) US Airways and/or Brussels Airlines must notify the Depart ment no later than 30 days befo re they begin any new codeshare service under the code-share services authorized here. 1 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 Docket DOT-OST-2010-0042.

(c) US Airways and Brussels Airlines must promptly notify the Department (Office ofInternational Aviation) if the codeshare agreement providing for the code-sha re 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 Docket DOT-OST-2010-0042. 2

(d) The code-sharing operations conducted under this authority must comply w ith 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 establis hed in its contract of carriage with the passenger; that the passenger liability of the operating carrier be unaffected; and that the operating ca rrier shall not permit the code of its U.S. code-sharing partner to be carried on any flight that ente rs, departs, or transits the airspace of any area for whose airspace the Federal Aviation Administra tion has issued a flight prohibition.

(e) Any service provided shall be consiste nt with all applicable agreements be tween the United States and the European Union, and all applicable agreements with other foreign countries involved. Furthe rmore, (i) nothing in the award of this

blanket statement of authorization s hould be construed as conferring upon US Airways rights (including code-share, fifth-freedom intermediate and/or beyond rights) to ser ve markets where U.S. carrier rights are limited unless US Airways notifies us of its intent to serve such market and unless and until the Department has completed any necessary carrier selection procedures to determine which carri er(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 US Airways’ authority by virtue of the blanket statement of authorization granted here, but th at are not being used by US Airways, the holding of such authority will not be considered as providing any preference for US Airways in a carrier selection proceeding to determine which carrier(s) should be en titled to use the authority at issue.

(f) The authority granted here is specifically conditioned so th at neither US Airways nor Brussels Airlines shall give any force or effect to any contractua l provisions between themselves that are contrary to these conditions.

(g) We may amend, modify, or revoke the authority gr anted at any time without hearing at our discretion.

1 With the exception of U.S.-Mexico servic es, any 30-day notice(s) given by Brussels Airlines, US Airways, Piedmont, and/or PS A, may be deemed notice given by all of these code-share partners, subject to compliance by the filing carrier with the terms of t his condition (c).

2 We expect this notification to be received within 10 days of such no n-effectiveness or of such decision.

3 The notice referenced in condition (b) above may be used for this notification.