UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on June 26 , 20 1 2



### NOTICE OF ACTION TAKEN

-- DOCKET S DOT

- OST

- 2000

- 7838 and DOT

- OST

- 2012

- 0067

_______________________ _________________________________________________________________________ ________ 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 : Tyrolean Airways Tiroler Luftfahrt G es mbH (Tyrolean)

Docket DOT

- OST

- 2000

- 7838 Date Filed: May 7, 2012

Relief requested: A mendment of e xemption from 49 USC § 41301 to engage in:

i. scheduled and charter foreign air transportation of persons, property, and mail from any point or points behind any Member State (s) of the European Union, via any point or points in any Member State (s) and via intermediate points

, to any point or points in the United States and beyond;

ii. scheduled and charter foreign air transportation of persons, property, and mail between any point or points in the United States and any point or points in any member of the European Common Aviation Area;

iii. other charter foreign air transportation of persons, property, and mail pursuant to the prior approval requirements set forth in 14 CFR Part 212 of the Department’s Economic regulations; and

iv. transportation authorized by any additional route rights that may be made available to European Union

carriers in the future

. 1

If renew al, date and citation of last action: February 2, 2012 , in Docket DOT

- OST

- 2000

- 7838

.

Docket DOT

- OST

- 2012

- 0067 Date Filed: May 7, 2012, as supplemented June 14, 2012

Relief requested: Tyrolean requests (1) a statement of authoriz ation under 14 CFR Part 212 to enable it to display the designator codes of United Air Lines, Inc. (United), US Airways, Inc. (US Airways), and Austrian Airlines AG (Austrian) on Tyrolean’s flights: (a) between any point or points in the United States and any point or points in the European Union (on a nonstop basis and on routings via intermediate points); (b) between any point or points in the United States and any point or points in the European Common Aviation Area; (c) between European Union points; (d ) beyond the European Union to any point or points; and (e) beyond the United States to any point or points; and (2) a statement of authorization under 14 CFR Part 212 to enable Tyrolean to operate aircraft pursuant to its wet

- lease agreement with Austrian

. Tyrolean further request s a waiver of the Department’s 45

- day advance filing requirement under 14 CFR Part 212.10(d)(2). 2

Applicant representative: Arthur J. Molins

, ( 516 ) 296

- 9234 DOT ana lyst: Brett D. Kruger

, ( 202 ) 366

- 8025

Responsive p leadings: None.

DISPOSITION

1 Tyrolean’s current exemption authorizes it to display the airline designator code of any duly authorized U.S. air carrier, on scheduled flights operated by Tyrolean between any point or points in any Member State of the European Union or Europe an Common Aviation Area and beyond to any point or points ( see Notice of Action Taken dated February 2, 2012 in Docket DOT

OST

- 2000

- 7838 ).

2 The applicant advised us informally that, notwithstanding any other representations in its May 7 application , the o nly carriers whose codes it is seeking authority to display are those actually named in the application, i.e.

, United, US Airways, and Austrian

. This is consistent with the carrier’s June 14 supplement.Action : Approved , subject to conditions (see below)

Action date: June 26 , 2012

Effective dates of authority granted : The exemption authority granted to Tyrolean is effective June 26 , 2012, through June 26

, 2014.

The st atement of authorization granted to Tyrolean to display the United, US Airways, and Austrian codes is effective June 26

, 2012, for an indefinite period.

The statement of authorization granted to Tyrolean to wet lease to Austrian is effective June 26 , 2012 , through June 26 , 2014.

The waiver granted to Tyrolean is effective June 26 , 2012.

Basis for approval (bil ateral agreement/reciprocity): U.S.

- EU Air Transport Agreement.

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

- share conditions attached as Appendix B.

Special conditions/Remarks: We note that

, by memorandum dated June 25 , 2012, the Federal Aviation Administration advised us that it knew of no reason why we should act unfavorably on the applicant’s request for exemption authority. We further note that US Airways and United have conducted safety audits of Tyrolean under the Department’s Code

Share Safety Audit Prog ram, and the FAA has advised us that it has reviewed the relevant audit reports and found them to be acceptable.

With regard to the authority granted here to conduct transportation authorized by any additional route rights made available to European Union carriers in the future, we are requiring Tyrolean, before it commences any new service under this authority, to provide us, in Docket DOT

- OST

- 2000

- 7838, with evidence that it holds a homeland license for that new service, unless it has already provided su ch evidence.

Action taken by: Paul L. Gretch, Director, Office of International Aviation

________________________________________________________________________________________________________ Under authority assigned by the Department in its regul ations, 14 CFR Part 385, we found that (1) our action was consistent with Department policy; (2) the applicant was qualified to perform its proposed operations; (3) grant of the authority was consist ent with the public interest; and (4) grant of the author ity would not constitute a major regulatory action under the Energy Policy and Conservation Act of 1975. To the extent not granted/deferred/dismissed, we denied all requests in the referenced Docket s

. 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 regulati ons, 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.govAppendix A 

### Foreign Air Carrier Exemption Conditions

In the conduct of the operations authorized, the 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 a ll 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 secur ity, 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 requiremen ts 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 Prog ram 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 equiv alent 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 t hose 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 Stat es 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

th is 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 schedul ed, 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 St ates.

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 01/2008Appendix 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) Tyrolean, United, US Airways, and

Austrian c ontinue to hold the necessary underlying authority to operate the code

- share services at issue, and (ii) the

code

- share agreement s providing for the code

- share operations remain in effect.

(b ) Tyrolean, United, US Airways, and/or Austrian

, as appropriate, 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 and the date on which the service will begin. Such notice should be filed in Docket

DOT

- OST

- 2 012

- 00 67

. 3

(c ) Tyrolean, United, US Airways, and/or Austrian , 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 carri ers decide to cease operating all or a portion of the approved code

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

- OST

- 2 012

- 00 67

. 4

(d ) The code

- sharing operations conducted under this authority must comply with 14 CFR 257 and with any

amendme nts 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 partn er 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 Ty rolean, United, US Airways, nor Austrian 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 discre tion.

3 Tyrolean states that it initially plans to display United’s, US Airways’, and Austrian’s designator codes on Tyrolean’s flights between Vienna, Austria, on the one hand, and New York (JFK) and Washington, D.C., on the other hand.

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

- effectiveness or of such decision.