1 

 UNITED STATES OF AMERICA 

 DEPARTMENT OF TRANSPORTATION 

 OFFICE OF THE SECRETARY 

 WASHINGTON, D.C. 

Issued by the Department of Transportation on June 15, 2010 

NOTICE OF ACTION TAKEN -- DOCKETS DOT-OST-2003-14651 DOT-OST-2007-0012 

 DOT-OST-2010-0127 

CORRECTED COPY** _________________________________________________________________________________________________________________________ 

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 Application of US AIRWAYS, INC. (US Airways) and TAM-LINHAS AEREAS, S.A. (TAM) filed

5/12/10 for:1

Docket DOT-OST-2003-14651

XX Amendment of exemption for US Airways under 49 U.S.C. 40109 to provide the following services: 

Scheduled foreign air transportation of persons, property, and mail on a code-share basis with TAM 

(1) between points in the United States and points in Brazil that may be served directly by U.S. carriers and 

(2) between points in the United States and 30 named Brazil points available for code-share-only services 

under the U.S.-Brazil Air Transport Agreement, as well as other points in Brazil that the United States 

and Brazil may agree in the future.2 3

 

Docket DOT-OST-2007-0012

XX Amendment of exemption for TAM under 49 U.S.C. 40109 to provide the following services: 

Scheduled foreign air transportation of persons, property, and mail on a code-share basis with US Airways 

(1) between points in Brazil and points in the United States that may be served directly by Brazilian 

carriers and (2) between points in the United States and 30 named U.S. points available for 

** This Notice of Action Taken is corrected to reflect the points in Brazil that may be served by designated 

U.S. air carriers on a code-share only basis (see fn 3). Our action here corrects the Notice of Action Taken 

dated June 14, 2010. 

 

1

 US Airways also applied on behalf of its affiliates Piedmont Airlines, Inc. (Piedmont) and PSA Airlines, Inc. (PSA). 2

 US Airways holds exemption authority to serve between points in the United States and Rio de Janeiro and Sao Paulo, 

Brazil pursuant to its code-share arrangement with United Air Lines, Inc. (United) (see Notice of Action Taken dated 

March 25, 2003, in the instant docket, renewal pending). 

3

 At this time, the United States has selected the following 24 code-share points: Aracaju, Bauru, Campo Grande, Cascavel, 

Cuiaba, Florianopolis, Goiania, Iguacu, Ilheus, Joao Pessoa, Joinville, Londrina, Maceio, Marina Parin, Natal, Navagantes, 

Petrolina, Porto Seguro, Porto Velho, Ribeirao Preto, Sao Luiz, Teresina, Vilhena, and Vitoria. 
2 

code-share-only services under the U.S.-Brazil Air Transport Agreement, as well as other points in the 

United States that the United States and Brazil may agree in the future.4 5

Docket DOT-OST-2010-0127

XX Statement of authorization for blanket code-share authority for US Airways under 14 CFR Part 212 to: 

Display TAM’s “JJ” designator code in connection with flights operated by US Airways (1) between any 

points in the United States in conjunction with services between Brazil and the United States (either nonstop or via third country intermediate points) and (2) between any points in Brazil and any points in the 

United States (either non-stop or via third country intermediate points).6

XX Statement of authorization for blanket code-share authority for TAM under 14 CFR Part 212 to:

Display US Airways’ “US” designator code in connection with flights operated by TAM (1) between any 

points in Brazil and any points in the United States (either non-stop or via third country intermediate 

points) and (2) between any points in Brazil in conjunction with services between Brazil and the United 

States (either non-stop or via third country intermediate points).7

Applicant reps: Howard Kass (202) 326-5153 (US Airways) DOT Analyst: Thuy H. Cooper (202) 366-5423

 Robert P. Silverberg (202) 944-3304 (TAM) 

D I S P O S I T I O N 

XX Granted request of US Airways for amended exemption authority in Docket DOT-OST-2003-14651 

(subject to conditions, see below) 

XX Granted request of TAM for amended exemption authority in Docket DOT-OST-2007-0012 (subject to 

conditions, see below) 

XX Granted requests of US Airways and TAM for statements of authorization in Docket 

DOT-OST-2010-0127 (subject to conditions, see below) 8

 

4

 TAM holds exemption authority to serve between points in Brazil, via intermediate points, and Atlanta, Chicago, Detroit, 

Houston, Los Angeles, Miami, New York/Newark, Orlando, Washington/Baltimore, San Francisco, and San Juan (see

Notice of Action Taken dated August 23, 2000, in Docket DOT-OST-1997-2421, renewal pending). TAM also holds 

exemption authority to serve up to 30 named U.S. points on a code-share-only basis pursuant to its code-share arrangement 

with United (see Notice of Action Taken dated December 29, 2009, in Docket DOT-OST-2007-0012) and Rio de Janeiro 

and Sao Paulo, Brazil pursuant to its code-share arrangement with United Air Lines, Inc. (see Notice of Action Taken dated 

March 25, 2003, in the instant docket, timely filed renewal application pending). 5

 At this time, the Government of Brazil has selected the following points: Austin, Cleveland, Cincinnati, Columbus, 

Dallas/Ft. Worth, Denver, Honolulu, Indianapolis, Jacksonville, Las Vegas, Minneapolis, Nashville, New Orleans, 

Philadelphia, Phoenix, Pittsburgh, Portland, Raleigh/Durham, St. Louis, Salt Lake City, San Diego, San Jose, Seattle, Tampa, 

Tucson, Tulsa, and Vail. 

6

 The code-share partners provided a list of specific code-share points that they intend initially to serve under this 

arrangement. We note that the Brazilian Government has not selected the following points for code-share service that the 

code-share partners included on their list: Boise, Charlotte, Kona, Kahului, Pensacola, Reno, Santa Ana, Hartford, Ontario, 

and Manchester. Appendix A includes only that portion of the code-share partners’ list that conforms to the points selected 

by the Government of Brazil pursuant to the Air Services Agreement between the United States and Brazil. Code-share 

service to any additional points is subject to a 30-day notice requirement in Docket DOT-OST-2010-0127 and to 

confirmation that the carriers’ respective governments have communicated selection of those points, prior to commencement 

of new services. 

7 Id. 8

 We will grant, sua sponte, US Airways and TAM a waiver of the 45-day advance filing requirement required under 

14 CFR 212.10(d)(2), as no party opposed the request. 
3 

The above action granting exemption authority to US Airways in Docket DOT-OST-2003-14651 was effective 

when taken: June 14, 2010, through June 14, 2012. 

The above action granting exemption authority to TAM in Docket DOT-OST-2007-0012 was effective when 

taken: June 14, 2010, through June 14, 2011. 

The above action granting statements of authorization to US Airways and TAM in Docket 

DOT-OST-2010-0127 was effective when taken: June 14, 2010, and will remain in effect indefinitely, subject to 

the conditions below. 

Action taken by: Paul L. Gretch, Director 

 Office of International Aviation 

XX The authority granted is consistent with the aviation agreement between the United States and Brazil. 

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 Conditions (attached as Appendix B) 

 XX Foreign Air Carrier Exemption Conditions (attached as Appendix C) 

 XX Conditions for Statements of Authorization (see below) ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 

Conditions: The exemption authority granted to US Airways and its affiliates and to TAM is limited to services 

provided on a code-share basis only. 

The statements of authorization granted are subject to the following conditions: 

(a) The statements of authorization will remain in effect only as long as (i) US Airways and TAM 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) US Airways and/or TAM 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 Docket DOT-OST-2010-0127.9

(c) US Airways and/or TAM must notify the Department no later than 30 days before they begin any new codeshare service under the code-share services authorized here.10 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-2010-0127. 

(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-

 

9

 We expect this notification to be received within 10 days of such non-effectiveness or of such decision. 10 The Joint Applicants requested in their application that notice given by either TAM, US Airways, or US Airways’ 

affiliated carriers Piedmont and PSA be deemed notice given by all the carriers. We grant the Joint Applicants’ request, 

subject to compliance by the filing carrier with the terms of this condition (c). 
4 

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 all applicable agreements between the United States and 

Brazil, and all applicable agreements with other foreign countries involved. Furthermore, (i) nothing in 

the award of the blanket statement of authorization to US Airways should be construed as conferring 

upon US Airways rights (including code-share, fifth-freedom intermediate and/or beyond rights) to serve 

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 carrier(s) should be authorized to exercise such rights;11 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 that 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 entitled to use the authority at issue. 

(f) The authority granted here is specifically conditioned so that neither US Airways nor TAM shall give any 

force or effect to any contractual provisions between themselves that are contrary to these conditions. 

Remarks: We note that US Airways has conducted a safety audit of TAM under the Department’s Code-Share 

Safety Audit Program, and the FAA has advised that it has reviewed the relevant audit and found it to be 

acceptable. 

---------------------------------------------------------------------------------------------------------------------------------------

On the basis of data officially noticeable under Rule 24(g) of the Department’s regulations, we found the 

applicants qualified to provide the 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 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 extent not granted or dismissed, 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

 

11 The notice referenced in condition (c) above may be used for this notification. 
1 

Appendix A 

CODE-SHARE ROUTES 

TAM Code Share on US Airways Operated Flights 

ROUTING

Between New York (JFK) and 

 Atlanta 

 Dallas/Ft. Worth 

Honolulu 

Los Angeles 

Portland 

Philadelphia 

Phoenix 

Seattle 

San Francisco 

Salt Lake City 

St. Louis 

Between Orlando and 

 Boston 

 Baltimore 

 Washington 

 Denver 

 Las Vegas 

 Los Angeles 

 Minneapolis 

 Chicago 

 Philadelphia 

 Phoenix 

 Pittsburgh 

 San Diego 

San Francisco 

Seattle 

Between Miami and 

 San Francisco 

 Boston 

 Baltimore 

 Newark 

 Washington 

 Houston 

 Chicago 

 Philadelphia 

 New York 
2 

US Airways Code Share on TAM Operated Flights 

ROUTING

Between Rio de Janeiro (GIG) and 

 Belem 

 Brasilia 

 Sao Paulo (GRU, VCP) 

 Belo Horizonte 

Curitiba 

Florianopolis 

Fortaleza 

Foz Do Iguacu 

Joao Pessoa 

Manaus 

Maceio 

Natal 

Porto Alegre 

Recife 

Sao Luis 

Salvador 

Vitoria 

For online connections only between: 

 Sao Paulo (GRU) and Miami 

 Manaus and Miami 
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Appendix B 

U.S. Carrier Exemption Conditions

In the conduct of the operations authorized, 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 oversales 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 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 of 14 CFR 203, concerning waiver of Warsaw Convention liability limits and defenses; 

(6) 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, 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 flights) 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 Transportation, 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 period when the holder is in compliance with the 

conditions imposed above. 

 

 

 1/2008 
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APPENDIX C 

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 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 (AFS-260), 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 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 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. 

1/2008