UN I TE D S TATE S O F A M ER I CA

DE P ART M EN T O F TRAN SP O RTAT I O N

O F F I C E O F T H E S ECRETAR Y

W A S H I NGT O N

, D

. C.

I ssued by t he D epa r t m ent o f T r a nsp o rt a t i on on November 9 , 2012

N O T I C E O F ACT I O N TA K E N

- - D O C K E T D O T

- O S T

- 2 0 12

- 0172

_____________________________________________________________________________________________________________________________ ___ This serves as notice to the public of the action described below, taken by the Department official indicated (no additional

co nfirming order will be issued in this matter).

Applicant : Flybe Limited ( Flybe) Dat e Filed : October 12

, 2012

, as supplemented November 7, 2012

Relie f requested : Exemptio n unde r 4 9 US C §4010 9 to engage in foreign air transportation of persons, property, and mail

to the extent necessary to permit the applicant to display the “US” designator code of US Airways, Inc. ( US Airways) and

the “UA” designator code of United Airlines, Inc. ( United) on flights operated by Flybe within European Union (EU) and

European Union Common Aviation Area (ECAA) countries

, and between points in EU and ECAA countries and points in

third countries

, on flights operated by Flybe on behalf of Brussels Airlines NV/SA ( Bru ssels Airlines )

.

The applicant further requests statements of authorization under 14 CFR Part 212 to permit it to display “US” designator

code of US Airways and the “UA” designator code of United on Flybe flights operated on a wet lease basis for Brussels

Airlines, pursuant to existing code

- share arrangements between: 1) Brussels Airlines and US Airways; and 2)Brussels

Airlines and United

.

Flybe requests that its exemption authority be granted fo r a two

- year period and its statements of authorization be granted

for an indefinite duration.

Applican t representatives : Evelyn D. Sahr and James G. Ehrig, 202

- 659

- 6600

DO T analyst : Darren Jaffe , 202

- 366

- 2512

Responsiv e pleadings : None

. D I S P O S I T

I O N

Action : Approved

. Actio n date : November 9

, 2012

Effectiv e date s o f authorit y granted : Th e exemptio n authorit y grante d t o Flybe i s effectiv e November 9

, 2012

, throug h

November 9

, 2014

.

Th e statemen t s o f authorizatio n grante d t o Flybe are effectiv e November 9

, 2012

, and will remain in effect for an

indefinite period. 1

Basi s fo r approva l (bilatera l agreement/reciprocity) : U.S.

- E U Ai r Transpor t Agreement.

Excep t t o th e exten t exempted/waived

, thi s authorit y i s subjec t t o th e terms

, conditions

, an d limitation s o f ou r standar d

exemption condition s attache d a s Appendi x A an d t o th e code

- shar e condition s attache d a s Appendi x B

.

Specia l conditions/Remarks : Base d o n th e recor d i n thi s case

, w e foun d tha t Flybe i s operationall y an d financiall y

qualifie d t o conduc t th e propose d services

, an d tha t i t i s substantiall y owne d an d effectivel y controlle d i n a manne r

consisten t wit h th e provisions o f th e U.S.

- E U Agreement. 2 W e not e tha t th e applican t i s properl y license d b y it s

homelan d t o perfor m th e propose d services

.

1 We will grant, sua sponte , Flybe a waiver of the advance filing requirement under 14 CFR 212.10(d)(2), as no party opposed the

request.

2 W e m a k e t h is f i n d i n g b a s ed o n A r ticle 2 ( R eci pro cal R ec og n iti o n o f R e g u lat o r y Dete r m i n ati o n s w i t h R e g a r d to A i r l i n e Fit n e s s a n d

C itiz e n s h i p ) o f t h e P ro t o c o l to a m e n d t h e U

. S

. - E U A ir T r a ns por t A g r e e m e n t, s i g n ed J un e 24

, 20 1 0.W e als o not e tha t US Airways and United have conducte d s afet y audi t s o f Flybe unde r th e Department’ s Code

- Shar e

Safet y Audi t Program

, an d th e FAA has advised us that it has reviewed the relevant audit report s and found them to be

acceptable. 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) our action was consistent w ith

Department policy; (2) the applicant was qualified to perform the proposed operations; (3) grant of the authority was consisten t with

the public interest; and (4) grant of the authority would not constitute a major regulatory action under the Energy Policy an d

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 regulati ons, 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 a vailable on the World Wide Web at:

http://www.regulations.gov

3 In its November 7, 2012 supplement, Flybe requested that the Department defer action on the United code

- share portion of its

request until United conducted a safety audit of Flybe and the FAA found the audit report to be acceptable. As noted above

, we were

subsequently advised by the FAA the United

- Flybe safety audit has been conducted and found acceptable by the FAA . Therefore, we

are granting the Flybe request in its entirety.

### F o r e ign Air Ca r r i e r E x e m p t ion Co nd i t io n s A ppend i x A

I n t he condu c t of t he op e r a t i ons au t h o r i z ed, t h e f o r e i g n ca r ri e r a pp l i c a nt s ha ll:

( 1 ) N o t c on d u c t an y o p e ra t i o n s u n l e s s i t h o l d s a c u r r e n tl y e f f ec ti v e a u t

h o r i za t i o n f ro m i t s h o m e l an d f o r s u c h o p e ra t i on s

,

an d i t h a s fi l e d a cop y o f s u c h a u t

h o r i za t i o n wit h t h e D e p a r t m e n t ;

( 2) C o m p l y w it h a l l app l i c ab l e r eq u ir e m en t s of t he F ed e r al A v i a ti o n A d m i n i s t r a t i on, t he T r a nsp o rt a t i on S e cu r it y

A d m i n i s t r a t i on, a nd wi t h a l l ap p l i ca b l e U .S. G o v e r n m ent r equ i r e m en t s con c e r n i ng sec u r i t y

, i n c l ud i n g , but n o t

li m it ed t o, 1 4 C FR Pa r t s 1 2 9, 91, and 36 a n d 49 C FR P a r t 1546 o r 155 0 , as ap p li ca b l e. T o as s u r e co m p li a n ce w ith

a l l ap p li c ab l e U .S. G o v e r n m ent r equ i r e m en t s con c e r n i ng secu r it y

, t he ho l d er sh a l l , be f o r e c o m m enc i ng any new

se r v i ce ( i n c l ud i ng cha r t er f l i g h t s) fr om a f o r e i g n a ir p o r t t h at w o u l d b e t h e h o l d e r’ s l a s t p o i nt of d ep a rt u r e f or t he

U n it ed S t a t e s, co n t a ct i t s I n t e r n a t i on a l I ndus tr y R ep r e s en t a ti v e ( I I R ) (f o r m e rl y r ef e r r ed t o as I n t e r n a t i on a l

P ri n c i p a l S e cu r it y I nspec t or ) t o ad v i se t he I I R of it s p l a ns and t o fi nd out w h e t h er t he T r a nsp o rt a t i on S e cu r it y

A d m i n i s t r a t i on h a s d e t e r m i ned t h at sec u r i t y i s a d e q u a t e t o a l l ow su c h a i r p o r t ( s ) t o be s e r v ed;

( 3 ) C o m p l y wi t h t h e r e q u i r e m en t s f o r m i n i m u m i n s u r a n c e c o v e r a g e co n t a i n e d i n 1 4 C F R P ar t 20 5

, an d

, p r i o r t o t h e

co mm ence m e n t o f an y o p e r a ti o n s u n d e r t h

i s a u t

h o r it y

, fi l e e v i d e n c e o f s u c h co v e ra g e

, i n t h e f o r m o f a co m p le t e d O S T

F or m 6 4 1 1

, w i t h t h e F e d e r a l A v i at i o n A d m i n is t ra t i o n ’ s P ro g ra m M a n a g e m en t B r a n c h ( A F S

- 260 )

, F l i g h t S t a n d a r d s

S e r v i c e ( a n y c h a n g e s t o

, o r t er m i n at i o n o f

, i n s u r a n c e als o s h al l b e fi l e d w i t h t h a t o ffi c e) ;

( 4 ) N o t o p e r at e air c ra f t u n d e r t h i s a u t

h o ri t y u n l es s i t c o m p l i e s w i t h o p e ra t i o n a l s a f e t y r e q u i re m e n t s a t l e a s t e q u i v al e n t t o

A nn e x 6 o f t h e C h i c a g o C o nv en t i on ;

( 5) C on f o r m t o t he a ir w o rt h i n e ss and a i r m an co m pe t ency r equ i r e m en t s o f i t s G o v e r n m ent f or i n t e r n a t i on a l a i r

se r v i c e s;

( 6 ) E x c e p t a s s p ec i fi c al l y e xe m p t e d o r o t h e r w i s e p r o v i d e d f o r i n a De p ar t m e n t O r d e r

, c o m p l y wi t h t h e r e qu i r e m e n t s o f 1 4

CF R P a r t 2 0 3

, c o n ce r n i n g w a i v e r o f W a r s a w C on v e n ti o n l i a b il it y l i m i t s an d d e fe n se s ;

( 7) A g r ee t h a t op e r a ti o ns un d er t h i s a u t h o r i t y cons t i t u t e a w a i v er of so v e r e i g n i m m u n it y

, f or t h e pu r pos e s of 28 U .S. C

. 1605 ( a ) , b u t o n l y w it h r es p ect t o t hose a c ti o ns o r p r o c eed i n g s i n s t i t u t ed a g a i n st i t i n any co u r t o r o t h e r t ri b u n al i n

t he U n it e d S t a t e s t h at a r e : ( a ) based o n i t s o p e r a t i ons i n i n t e r n a t i on a l a i r t r ans p o r t a t i on t h a t

, ac c o r d i ng t o t he

con t r a c t o f c a r r i a g e, i n c l u d e a p o i nt i n t he U n i t ed S t a t e s as a po i nt o f o r i g i n, p o i n t of d e s t i n a ti o n , or a g r eed

s t op p i ng p l a ce, o r f o r w h i c h t he con t r a ct o f c a r r i a g e w as p u r ch a sed i n t he U n it e d S t a t e s ; or ( b) ba s ed on a c l a i m

under any i n t e r n a t i on a l a gr ee m ent or tr e a t y co g n i z ab l e i n any co u r t o r o t h e r t ri b u n al o f t h e U n i t ed S t a t es. I n t h is

cond i t i on, t he t e r m "i n t e r n a ti o n al a i r t r a n spo r t a ti o n" means "i n t e r n a ti o nal t r an s po r t a t i o n " a s d e fi n ed by t he W a r saw

C on v en ti on, exc e pt t h a t a l l S t a t es s ha l l b e co n s i d e r e d t o be H i g h C on t r a c t i ng Pa r ti es f o r t he p u r po s e of t h i s

de f i n i ti o n;

( 8) Except as spe c i f i c a l l y au t h o ri z ed by t he D ep a rt m en t

, o ri g i n a t e o r t e r m i n a t e a l l f li g h t s t o / f r om t he U n i t ed S t a t es in

a Me m ber S t a t e of t he E u r o pean U n i on;

( 9) C o m p l y w it h t h e r equ i r e m en t s o f 14 C FR P a r t 217, co nce r n i ng t he r e p o r ti ng of s c hedu l ed, no n sc h edu l ed, a nd

cha r t e r d a t a;

( 10) I f ch a rt e r o p e r a t i ons a r e au t ho r i z ed, ex c ept as o t h e r w i se p r o v i d e d i n t h e ap p l i c ab l e a v i a t i on a g r e e m en t , c o m p l y

w it h t he D e p a r t m en t ' s r u l es g o v e r n i ng cha r t e r s ( i nc l ud i ng 14 C FR Pa rt s 212 a n d 3 80 ) ; and

( 11) C o m p l y w it h s uch o t h er r eas o na b l e t e r m s, con d i ti ons, and l i m it a t i ons r e q u i r e d by t he pu b l i c i n t e r e s t a s m a y be

p r e s c r i bed by t h e D ep a rt m en t

, wi t h a l l ap p li c ab l e o r de r s or r e g u l a ti o n s of ot h er U

. S. a g enc i e s and co u rt s, and w it h

a l l ap p li c ab l e l a w s o f t h e U n i t ed S t a t e s.

T h i s a u t h o r i t y sh a l l n o t b e e f f ec t i v e du r i ng any pe r i od w hen t h e ho l der i s not i n co m p li ance wi t h t he con d i t i o ns

i m posed abo v e. M o r eo v e r

, t h i s a u t h o r i t y cannot be s o l d or o th e r w i s e t r an s f e rr e d w it ho u t e x p l i c i t D e p a r t m ent ap p r o v al

under T i t l e 49 of t he U .S. C ode.

E U ca rr ier 0 1 / 20 0 8A ppend i x B

T he cod e

- sha r e op e ra t i o n s au t h o r i z ed he r e a r e su b j ect t o t h e f o l l o wi ng cond i t i on s :

( a) The s t a t e m ent of au t ho r i z a ti on wi l l r e m a i n i n e ff e ct on l y as l ong as ( i ) US Airways, United, Brussels Airlines and

Flybe con t i n ue t o ho l d t he n ec e ss a r y unde r l y i ng au t ho r it y t o o pe r a t e t h e cod e

- sha r e s e r v i c es a t i ssu e , and ( i i ) t he

c ode

- sha r e a gr ee m ent p r o v i d i ng f o r t h e c o de

- sha r e op e r a t i o n s r e m a i ns i n e f f e c t

.

( b) US Airways, United, Brussels Airlines and/or Flybe , as ap p r op r i a t e, m ust n o t i f y t he D e p a r t m ent no l a t er t han 30

da y s b e f o r e t h ey be g i n any new code

- sha r e s e r v i c e under t he code

- sha r e s e r v i ces a u t h o ri z ed h e r e . Such no t i ce s ha l l

i de n t i f y t he m a r k e t( s ) t o be s e r v ed and t he da t e on w h i ch t he se r v i ce w i l l be g i n. Such no ti c e sh o u l d be f i l ed i n D oc k et

D O T

- O S T

- 201 2

- 0172

.

( c) US Airways, United, Brussels Airlines and/or Flybe , as ap p r op r i a t e, m ust p r o m p tl y no t i f y t he D e pa rt m ent i f t he

c o d e

- sha r e a gr ee m ent p r o v i d i ng f o r t h e c o de

- sha r e op e r a t i o n s i s no l on g er ef f e c ti v e or i f t h e c a r r i e r s d ec i de t o c e ase

op e r a t i ng a l l or a po r ti o n of t h e ap p r o v ed co d e

- sha r e se r v i c e s. Su c h n o ti c e sh o u l d be f i l ed i n D oc k et D O T

- O S T

- 201 2

-

0172

. 4

( d) T h e co d e

- sha ri ng ope r a t i ons cond u c t e d und e r t h i s a u t ho r i t y m ust co m p l y w it h 14 C FR 257 and w i t h any

a m en d m en t s t o t h e D ep a r t m en t’ s r e g u l a t i ons con c e r n i ng code

- sha r e a r r an g e m en t s t h a t m ay be adop t e d.

N o t w i t hs t an d i ng any p r o v i s i ons i n t he c on t r a c t b e t w e e n t he ca r r i e r s, our ap p r o v al he r e i s exp r es s l y cond it i on e d upon

t he r eq u i r e m en t s t h at t he s ub j e c t f o r e i g n a i r t r an s po r t a t i on be s o l d i n t h e na m e of t he c a r r i er ho l d i ng out such se r v i ce in

t he c o m pu t er r es e r v a t i on s y s t e m s and e l se w h e r e; t h a t t he c a r r i er s e l l i ng such t r an s po r t a t i on ( i

. e., t h e c a r r i e r s h o w n on

t he ti c k e t ) a cce p t r esp o ns i b i l it y f or t h e e n t i r e t y of t he c ode

- sha r e j o u r n ey f or a l l o b li g a t i ons es t ab l i s hed i n i t s c on t r act

of c a r r i a g e wi t h t h e p a sse ng e r ; t h at t he p as s en g er l i a b i l i t y of t h e op e r a ti ng c a r r i er be un a ff e c t ed; and t h a t t h e ope r a t i ng

ca r ri e r s h a l l n o t p e r m i t t h e code o f i t s U .S. code

- sha r i n g pa rt n e r t o be c a r ri e d on a ny fli g ht t hat en t e r s, de p a r t s, or

tr a n s i t s t he a i r sp a ce o f any a r ea f o r w hose a i r s p ace t he Fede r al A v i a ti on A d m i n i s t r a t i on h a s i ssued a f li g ht p r o h i b i t i on.

( e) The a u t h o r i t y g r an t ed h e r e i s s pe c i f i c a ll y con d i ti o n ed so t h a t US Airways, United, Brussels Airlines nor Flybe

s h a l l g i v e any f o r c e or e f f e c t t o any co n t r a c t u a l p r o v i s i o ns b e t w e e n t h e m se l v es t h a t a r e co n t r a r y t o t h e se c o nd i t i ons.

We m ay a m end, m od if y , or r e v o k e t he a u t h o r i t y g r an t e d at a ny ti m e w it ho u t h e a r i ng at our d i s c r e t i on.

4 W e e x p ect t h is n o ti f ic a ti o n to b e r ecei v ed w i t h in t e n (10 ) d a y s a f ter s u ch n on

- e ff ec t i v e n e s s o r o f su c h d eci s i o n

.