UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on August 29

, 20 1 4



### N OTICE OF ACTION TAKEN

– DOCKET DOT

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_____________________________________________ ___________________________________________________________________________________ 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)

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Applicant: JETCONNECT LIMITED ( Jetconnect )

Date Filed: August 5 , 201 4

Relief requested:

E xemption for two years under 49 USC §40109 and a blanket statement of authorization under 14 CFR Part 212 to permit

Jetconnect to display the AA* des ignator code of American Airlines , Inc. (American) on flights operated by Jetconnect between points in New Zealand; between points in Australia; and between any point or points in New Zealand, via intermediate points, and any point or points in Australia ; for the purpose of transporting code

- share traffic of American

on U.S.

- Australia and/or U.S.

- New Zealand flights operated by Qantas Airways Limited (Qantas) or other carrier s authorized to display the AA* designator code on those routes. 1

Jetconnect furt her request s a waiver of the 45

- day advance filing requirement under 14 CFR Part 212.

Applicant representative: Moffet B. Roller

, 202

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DOT analyst: David R. Christofano , 202

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Responsive pleadings: None

DISPOSITION

Action: Approved

, subject to conditions Action date: August 29

, 20 1 4

Effective dates of authority granted: The e xemption authority granted to Jetconnect is effective from August 29 , 20 1 4

, through August 29 , 2016

.

The statement of authorization granted to Jetc onnect is effective August 29 , 20 1 4 , and will remain in effect for an

indefinite duration , subject to conditions

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Our action granting Jetconnect’s request for waiver of the 45

- day advance filing requirement under 14 CFR Part 212 is

e ffective August 29

, 2014.

Basis for approval (bilateral agreement/reciprocity): The Multilateral Agreement on the Liberalization of International Air Transport (MALIAT) and t he Air Transport Agreement between the United States and Australia

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Except to the extent exempted/w aive d , this authority is subject to the terms, conditions, and limitations of our standard exemption conditions ( attached as Appendix A ) and the code

- share conditions ( attached as Appendix B )

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Special conditions/Remarks: We note that Jetconnect is operat ionally and financially qualified to conduct the proposed

services

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### The record indicates that Jetconnect , which is incorporated in New Zealand, is 

### a wholly

- owned subsidiary

1 Jetconnect states th at t he code

- share arrangement between it and American is governed by the code

- share a greement between Qantas

and American. Jetconnect further states that it will initially display the AA* designator code on Jetconnect flights between Sydney

- Auckland, Syd ney

- Christchurch, and Brisbane

- Auckland.

### of Qantas, a licensed foreign air carrier of Australia. (See Order 2008

- 8

- 17). Th e record further indicates that

Jetconnect’s three Directors a lso serve as Qantas executives and are Australian citizens. With respect to the

non

- homeland involvement in the ownership and control of Jetconnect, we find that a waiver of our ownership and c ontrol policy is warranted in the circumstances presented, as there is nothing in the ownership and control of the carrier that would be inimical to U.S. aviation policy or interests. We also note that the applicant is properly licensed by its homeland

to perform the proposed services. We further note that American ha s conducted a safety audit of Jetconnect under the Department’s Code

- Share Safety Audit Program, and the FAA has advised us that it has reviewed the relevant audit report

and found it to be a cceptable.

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

_________________________________________________________ ___________________________________________________ Under authority assigned by the Department in its regulat ions, 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 consistent with the public interest; and (4) grant of the authorit y 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 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 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 iss uance 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 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 it s 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 sh all, 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 Internation al Principal Security Inspector) to advise

the I IR 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

A nnex 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 r equirements 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 Sta tes 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 tribuna l 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 t his 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, nonschedule d, 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 aut hority 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.

12/2007Appendix 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) Jetconnect and American continue to hold the necessary underl ying 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) Jetconnect and American must promptly notify the Department (Office of International Aviation) if the c ode

- 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

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(c) Je tconnect and American 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 wil l begin. Such notices should be filed in Docket DOT

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(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 tha t 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 car riage 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 airsp ace 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 the foreign

countries involv e d . Furthermore , (i) nothing in the award of the blanket statement of authorization should be construed as conferring upon American rights (including code

- share, fifth

- freedom intermediate and/or beyond rights) to serve markets where U.S. carrier rights are limited unles s American notifies us of its intent to 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; 3 and (ii) should there be a request by any carrier to use the limited

- entry route rights that are included in the authority of American by virtue of the blanket statement of authorization granted here, but that are not being used by American , the holding of such authority will not b e considered as providing any preference for American in a carrier selection proceeding to determine which carrier(s) should be entitled to use the authority at issue

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(f) The authority granted here is specifically conditioned so that neither Jetconnect nor American 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

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1 We expect this notification to be received within 10 days of such non

- effectiveness or of such decision.

2 Jetconnect provides notice of its intent to display the AA* code on o pen skies routes as described in it s application. J etconnect state s that it will notify the Department no later than 30 days before commencing any code

- share services to n on

- open skies points.

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