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-OST-2012-0142 ________________________________________________________________________________________________________________________________

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

Indonesia)

Date Filed: August 16, 2012

Relief requested: 

Garuda Indonesia: Exemption from 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 Airlines: 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 Los Angeles and San Francisco, California, on the other hand.2

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

Applicant representatives: George U. Carneal for China Airlines, 202-637-6546

 Nana Haryana 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, 20123

The exemption authority granted to Garuda Indonesia is effective: August 27, 2012 – August 27, 2014. The statement of 

authorization granted to China Airlines is effective August 27, 2012 and will remain in effect for an indefinite duration,

subject to conditions.

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 (attached 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 the 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 applicants 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 Airlines.

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 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 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
Appendix 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, 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.

12/2007
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) China Airlines and Garuda Indonesia 

continue to hold the necessary underlying authority to operate the code-share services at issue, and (ii) the codeshare 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-OST-2012-0142. 

(c) 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 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 ticket) 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 here 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 granted at any time without hearing at our discretion.