UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation on September 30, 2010

NOTICE OF ACTION TAKEN -- DOCKETS DOT-OST-2005-20442, DOT-OST-2007-27316 & 

DOT-OST-2002-13144 ________________________________________________________________________________________________________________________________

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: Air Central Co., Ltd., Air Next Co., Ltd. & Air Nippon Co., Ltd.

Date Filed: August 24, 2010, November 1, 2007 and November 1, 2005

Relief requested: 

Air Central Co., Ltd. (Docket DOT-OST-2005-20442)—(1) Renew exemption from 49 U.S.C. § 41301 to engage in 

scheduled foreign air transportation of persons, property and mail between point or points in Japan, and any point or 

points in the United States, and conduct charters in accordance with 14 CFR Part 212 of the Department’s rules; (2) 

renew statement of authorization under Part 212 to the extent necessary to permit Air Central to display the designator 

code of United Air Lines, Inc. (United) on flights operated on a wet lease basis on behalf of All Nippon Airways, Co. 

Ltd. (ANA) pursuant to a wet lease agreement with ANA and ANA’s codesharing agreement with United; and (3)

amend statement of authorization under Part 212 to the extent necessary to permit Air Central to display the designator 

code of Continental Airlines, Inc. (Continental) on flights operated on a wet lease basis on behalf of ANA pursuant to a 

wet lease agreement with ANA and ANA’s codesharing agreement with Continental. 

Air Next Co., Ltd. (Docket DOT-OST-2007-27316)—Amend statement of authorization under Part 212 to the extent 

necessary to permit Air Next to display the designator code of Continental on flights operated on a wet lease basis on 

behalf of ANA pursuant to a wet lease agreement with ANA and ANA’s codesharing agreement with Continental.1

Air Nippon Co., Ltd. (Docket DOT-OST-2002-13144)—(1) Renew exemption from 49 U.S.C. § 41301 to engage in 

scheduled foreign air transportation of persons, property and mail between any point or points in Japan, and any point or 

points in the United States, and conduct charters in accordance with Part 212 of the Department’s rules; (2) renew 

statement of authorization under Part 212 to the extent necessary to permit Air Nippon to display the designator code of 

United on flights operated on a wet lease basis on behalf of ANA pursuant to a wet lease agreement with ANA and 

ANA’s codesharing agreement with United; and (3) amend statement of authorization under Part 212 to the extent 

necessary to permit Air Nippon to display the designator code of Continental on flights operated on a wet lease basis on 

behalf of ANA pursuant to a wet lease agreement with ANA and ANA’s codesharing agreement with Continental.

If renewal, date and citation of last action: November 9, 2006, in Docket DOT-OST-2005-20442, May 5, 2010, in 

Docket DOT-OST-2007-27316 and November 5, 2004, in Docket DOT-OST-2002-13144.

Applicant representative: Charles J. Simpson, Jr. & David M. Endersbee (202) 973-7926 

DOT Analyst: Shelita A. Johnson (202) 366-1226

Responsive pleadings: None filed

DISPOSITION

Action: Approved, subject to conditions (attached)2 Action date: September 30, 2010

 1 Air Next’s existing statement of authorization allows the carrier to display the code of United on the flights at issue. 2 In Docket DOT-OST-2010-0217, in which ANA Wings Co., Ltd. (ANA Wings) requests an exemption and statement of 

authorization to conduct certain code-share operations with United and Continental, ANA Wings states that, effective October 1, 2010, 

Air Central, Air Next, and Air Nippon will merge into Air Nippon Network, which will then change its name to ANA Wings (we are 

acting on ANA Wings’ request concurrently with our action here). Our action in this Notice of Action Taken will enable the three 

applicants to conduct code-share operations on behalf of United and Continental in the interim period until the ANA Wings merger is 

completed.
Effective dates of exemption and statement of authorization granted: September 30, 2010 – September 30, 2011, or until 

30 days after the completion of the merger of the applicants into ANA Wings, whichever occurs earlier (see footnote 2.)

Basis for approval (bilateral agreement/reciprocity). 1998 Memorandum of Understanding between the United States and 

Japan.

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

X Standard exemption conditions (attached) 

We note that Continental has conducted a safety audit of Air Central, Air Next and Air Nippon under the Department’s 

Code-Share Safety Audit Program, and the FAA advised us it has reviewed the relevant audit report and found it to be 

acceptable.

 

 X Code-share conditions previously imposed on Air Central in Docket DOT-OST-2005-20442, Air Next in Docket 

DOT-OST-2007-27316 and Air Nippon in Docket DOT-OST-2002-13144.3

Action taken by: Paul L. Gretch, Director

 Office of International Aviation ________________________________________________________________________________________________________________________________

Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) the applicants are

qualified to perform the proposed operations; (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 Conservation 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 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

 3 In light of our present action these conditions shall now also apply to Continental.
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 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.