UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on May 1 9

, 2010



### NOTICE OF ACTION TAKEN

-- DOCKET OST

- 2005

- 20571

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

additi onal confirming order will be issued in this matter).

Applicant: 

### Eurofly, S.p.A./Meridiana fly, S.p.A.

Date Filed : March 15, 2007, as amended February 26, 2010 1

Relief requested: Renew and amend e xemption from 49 U.S.C. § 41301 to permit the ap plicant to engage in: 2

a. Foreign scheduled and charter air transportation of persons, property and mail from any point or points behind any Member State of the European Union via any point or points in any Member State and via intermediate points to any poi nt or points in the United States and beyond;

b. Foreign scheduled and charter air transportation of persons, property and mail between any point or points in the United States and any point or points in any member of the European Common Aviation Area;

c. F oreign scheduled and charter all

- cargo air transportation between any point or points in the United States and any other point or points; and

d. Transportation authorized by any additional route rights made available to European Community carriers in

the fut ure.

The applicant requests that the exemption authority it seeks be granted for a term of two years.

Applicant representatives: Moffett Roller, 202

- 331

- 3300 DOT Analyst: Shelita Johnson (202) 366

- 1226

Responsive pleadings: On March 30, 2007, America n Airlines, Inc. and United Air Lines, Inc. file a joint reply to Eurofly’s March 15, 2007 renewal request, stating that they did not oppose the request so long as the condition in that authority concerning operations at Milan’s Linate Airport was retained . On April 10, 2007, Eurofly filed a reply, acknowledging the condition’s applicability but asking that it be eliminated based on the effecti veness of the U.S.

- EU Agreement. We received no responses to Eurofly’s February 26, 2010, amendment.

DISPOSITION

Action: Approved (see remarks below) Action date: May 1 9

, 2010

Effective dates of authority granted: May 1 9

, 20 10

– May 1 9

, 20 12

Basis for approval (bilateral agreement/reciprocity): U.S.

- EU Agreement

1 The exemption was originally granted to the carrier in the name of Eurofly, S.p.A. In its February 26, 2010 amendment, the applicant stated that it was incorporating the aviation business of Meridiana, S.p.A. into Eurofly and would conduct business under

the name Eurofly, S.p.A./Meridiana fly, S.p.A.

2 The applicant’s current exemption i ssued by Notice of Action Taken dated March 16, 2005 in this Docket, authorizes Eurofly to engage in (1) scheduled foreign air transportation of persons, property and mail from points behind Italy, via a point or poi nts in Italy, and intermediate points to a point or points in the United States and beyond; and (2) charter foreign air transportation of passengers and cargo between any point or points in the United States and any point or points not in the United States, provi ded that, except with respect to cargo charters, such service constitutes part of a continuous operation that carriers local traffic between Italy and the United States; and other charters in accordance with 14 CFR Part 212. By Order 2006

- 5

- 4, dated May 4, 2006 in this Docket, the Depart ment amended this exemption authority to prohibit operations by Eurofly between the United States and Milan’s Linate Airport.Except to the extent exempted/waived, t his authority is subject to the terms, conditions, and limitations of our standard exemption conditions (attached)

.

Special conditions/Remarks: Eurofly requested that we grant it, in addition to authority currently contained in the

U.S.

- EU Agreement, au thority to conduct transportation authorized by any additional route rights made available to European Community carriers in the future. We are granting the request of Eurofly for this authority. We are, however, requiring Eurofly, before it commences an y new service under this authority, to provide us with evidence that it holds a homeland license for that new service, unless it has already provided such evidence. 3

Finally, w e are eliminating the condition we originally imposed by Order 2006

- 5

- 4 prohibi ting operations by the applicant at Milan’s Linate Airport , as the issue that led to us imposing this condition has now been resolved.

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 th e extent not grante d/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 See Orders 2007

- 6

- 19 and 2007

- 10

- 1, and Orders 2007

- 7

- 13 and 2007

- 10

- 16, where we granted this authority to British Airways

Plc. and Virgin Atlantic Airways Ltd., respectively.Foreign Air Carrier Exemption Conditions

In the conduc t of the operations authorized, the foreign carrier applicant 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 3 6 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 Transportati on 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 thi s 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 file d 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 Govern ment 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 operat ions 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 purchas ed 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 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 provided in the applic able 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

im posed above. Moreover, this authority cannot be sold or otherwise transferred without explicit Department approval under Title 49 of the U.S. Code.

EU carrier 01/2008