UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on Novembe r 7, 2 0 11



### NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 200 3

- 15485

_____________________________________________________________________________________________________________________________ ___ This serves as notice to the public of the action described below, taken by the Department official indicated (n o additional confirming order will be issued in this matter).

Applicant : 

### Lufthansa CityLine GmbH Date Filed: October 17, 2011

Relief requested: Renew exem ption f rom 49 U.S.C. § 40109 to permit Lufthansa CityLine to conduct scheduled foreign

air tr ansportation of persons, property and mail by displaying the code of any duly authorized U.S. air carrier on flights it

operates on behalf of Deutsche Lufthansa AG (Lufthansa) between any point or points in any Member State of the European Union and beyond the European Union to any point or points. 1

If renewal, date and citation of last action: October 17, 2011, i n this docket Applicant representative: Arthur Molins (516) 296

- 9234 DOT Analyst: Shelita A. Johnson (202) 366

- 1226 Responsive pleadings: None filed

DISPOSITION

Action: Approved Action date: November 7, 20 11

Effective dates of exemption authority granted: November 7, 20 11

– November 7, 2 0 1 3

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 indicated:

X Standard exemption conditions (attached) Foreign air carrier permit (Order )

Special conditions/Parti al grant/Denial basis/Remarks:

Action taken by: Paul L. Gretch, Director

Office of International Aviation

_____________________________________________________________________________________________________________________________ ___ Under auth ority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) the applicant is qualified to perform the proposed operations and is substantially owned and effectively controlled in a manner consistent with the provisions of the U. S.

- EU Agreement; 2 (2) our action was consistent with Department policy; (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 Conservati on Act of 1975. To the extent not granted/deferred/dismissed, 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 petiti on 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 th e 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.regu l ations.gov

1 This exemption provides the holder with underlying authority to conduct the described co de

- share operations. The holder must also hold an appropriate Statement of Authorization under 14 CFR Part 212 to conduct any code

- share operations authorized by this notice.

2 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, 2010.12/2007 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 app licable 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 1 546 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 po int 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 Administ ration 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, fi le 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 off ice);

(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 o perations 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 pu rchased 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 transpor tation" 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 provid ed 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 pr escribed 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 t he conditions imposed above. Moreover, this authority cannot be sold or otherwise transferred without explicit Department approval under Title 49 of the U.S. Code.