UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on August 27, 2012



### NOTICE 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).

Joint Applicant s : 

### China Airlines, Ltd. (China Airlines) & PT Garuda Indonesia (Persero) TBK (Garuda Indonesia)

Date Filed: August 16, 2012

Relief requested:

Garuda Indonesia : Exemption fro m 49 U.S.C. § 41301 to engage in scheduled foreign air transportation of persons, property, and mail between a point or points in the Republic of Indonesia and San Francisco, California, under a

code

- sharing arrangement with China Airlines. 1

China Airl ine s : Statement of authorization under 14 CFR Part 212 to the extent necessary to permit China Airlines to display the (GA*) designator code of Garuda Indonesia on scheduled flights operated by China Airlines between Taipei, Taiwan, on the one hand, and Lo s Angeles and San Francisco, California, on the other hand. 2

If renewal, date and citation of last action: New authority

Applicant representative s : George U. Carneal for China Airlines , 202

- 637

- 6546

N ana Har yana for Garuda Indonesia

, 62

- 21

- 2560

- 1123)

DOT Analyst: Shelita A. Johnson (202) 366

- 1226

Responsive pleadings: None filed

DISPOSITION

Action: Approved Action date : August 27, 2012 3

The exemption authority granted to Garuda Indonesia is effective : August 27, 2012

– August 27, 201 4 . T he statement of authorization granted to China Airlines is effective August 27, 2012 and will remain in effect for an indefinite duration,

sub ject to cond i tions.

Basis for approval (bilateral agreement/reciprocity) : The authority is encompassed in the Air Transport Agreement between the American Institute in Taiwan and the Taipei Economic & Cultural Representative Office, initialed February 28 , 1997, and entered into force March 18, 1998

, and the US.

- Indonesia Air Transport Agreement

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

X Standard exemption conditions (attach ed as Appendix A ) X Code

- share conditions ( attached as Appendix B )

1 Garuda Indonesia holds a foreign air carrier permit that authorizes it to conduct, among other things, scheduled foreign air transportation of persons, property, and mail between a point or points in t he Republic of Indonesia and Los Angeles.

See Order 88

- 8

- 53.

2 The applicants state that no local traffic will be carried between Taiwan and the United States under the GA* designator code

. 3 The Department is acting on the requests of the joint applican ts prior to the expiration of the respective answer periods associated with their applications with the consent of all parties served.Special conditions/Remarks: The exemption authority granted to Garuda Indonesia is limited to services provided on a

code

- share basis only, only on flights operated by China Ai rlines.

Action taken by: Paul L. Gretch, Director

Office of International Aviation

_________________________________________________________________________________________________ Under authority assigned by the Department in its regulations, 14 CFR Pa rt 385, we found that (1) the applicant is 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 cons titute 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 o f 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.govAppend ix 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 its homeland for such operations, an d 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 serv ice (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 b e served;

(3) Comply with the requirements for minimum insurance coverage contained in 1 4 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 Standard s 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, poi nt 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, conditi ons, 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 effect ive 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.

12/2007Th e 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) China Airlines and Garuda Indonesia continue to hold the necessary underlying authority to opera te the code

- share services at issue, and (ii) the code

share agreement providing for the code

- share operations remains in effect.

(b) China Airlines and/or Garuda Indonesia must promptly notify the Department if the code

- share agreement providing for the code

- share operations is no longer effective or the carriers decide to cease operating any or all of the approved code

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

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.

(c ) The code

- sharing operations conducted under this author ity must comply with 14 CFR 257 and with any amendments 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 t icket) accept responsibility for the entirety of the code

- share journey for all obligations established in its contract of carriage with the passenger; and that the passenger liability of the operating carrier be

unaffected.

( d ) The authority granted her e is specifically conditioned so that neither China Airlines nor Garuda Indonesia shall give any force or effect to any contractual provisions between themselves that are contrary to these conditions.

(e ) We may amend, modify, or revoke the authority gra nted at any time without hearing at our discretion.