UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on September 27, 2012



### NOTICE OF ACTION TAKEN

-- DOCKET D OT

- OST

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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).

Applicant : PORTUGALIA

– COMPANHIA PORTUGUESA DE TRANSPORTES AEREOS S.A. (PGA)

Date Filed: August 1, 2012

Relief requested: Renew e xemption from 49 U.S.C. § 41301 to the extent necessary to permit the applicant to perform charters under 14 CFR Part 212 in order to wet lease aircraft to TAP Portugal (TAP) for use by TAP for flights within Portugal

, between European points , and between European points and points in Africa

. 1 The applicant requ ests that its exemption authority be granted for a term of at least two years.

If renewal, date and citation of last action: September 9, 2010 , in this docket

Applicant representative: William Karas and Carol Gosain (202) 429

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DOT Analyst: Shelita A. Johnson (202) 366

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Responsive pleadings: None filed

DISPOSITION

Action: Approved Action date : September 27, 2012

Effective dates of exemption authority granted: Sept ember 27, 2012

– Se p tember 27, 2014

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 Standa rd exemption conditions (attached)

Special conditions/ Remarks: PGA may not conduct U.S. operations with its own aircraft and crews without further action by the Department.

Action taken by: Paul L. Gretch, Director

Office of Internationa l Aviation

_________________________________________________________________________________________________ Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) the applicant is qualified to perform the propos ed 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

1 PGA states that it does not conduct any U.S. operations and that the flights it will op erate for TAP will connect to flights to/from the United States, consistent with TAP’s existing authority from the Department and its code

- share agreements with United Air Lines, Inc. (United) and US Airways, Inc. (US Airways). PGA further states that tho se flights may display the (UA*) and (US*) designator codes of United and US Airways, respectively, and notes that the Department has granted it a statement of authorization for an ind e finite period to permit such operations

.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.govEU carrier 1 2/2007 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 ap plicable 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 Admini stration 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 o ffice);

(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 Governmen t 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 transp ortation" 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/fr om 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 prov ided 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.