1 UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on August 2, 2010

NOTICE OF ACTION TAKEN -- DOCKETS DOT-OST-2010-0183 DOT-OST-2009-0003

_________________________________________________________________________________________________________________________ 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).

Docket DOT-OST-2010-0183

Joint Application of UNITED AIR LINES, INC. (United) and US AIRWAYS, INC. (US Airways) filed

7/15/10 for:

XX Temporary reallocation to US Airways of seven U.S.-Brazil frequencies held by United to permit US Airways to offer daily nonstop Charlotte-Sao Paulo service. 1

Docket DOT-OST-2009-0003

Application of US AIRWAYS, INC. (US Airways) filed 7/15/10 for:

XX Amendment of exemption under 49 U.S.C. 40109 to provide the following services:

Scheduled foreign air transportation of persons, pr operty, and mail between Charlotte, North Carolina and Sao Paulo, Brazil. 2

Applicant reps: Jeffrey A. Manley (301) 229-8571 (United) DOT Analyst: Thuy H. Cooper (202) 366-5423 Howard Kass (202) 326-5153 (US Airways)

D I S P O S I T I O N

XX Granted request of United and US Airways for rea llocation of U.S.-Brazil frequencies in Docket

DOT-OST-2010-0183 (subject to conditions, see below)

XX Granted request of US Airways for amended exemption authority in Docket DOT-OST-2009-0003 (subject to conditions, see below)

The above action granting a temporary reallocation of frequencies in Docket DOT-OST-2010-0183 was effective

when taken: August 2, 2010 . The reallocation of frequencies will remain in effect indefinitely, subject to conditions and the arrangements ag reed between the applicants, as set forth in their application. 3

The above action granting amended exemption authority to US Airways in Docket DOT-OST-2009-0003 was

effective when taken: August 2, 2010

, through August 2, 2012

.

1 The Joint Applicants state that the reallocation will be for a period from January 11, 2011 through the conclusion of the

IATA winter 2014-15 traffic s eason, subject to extension. The Joint Appli cants request an indefinite reallocation until notification is filed with the Department that the frequencies are to be returned to United.

2 US Airways currently holds economic authority to serve the Charlotte- Rio de Janeiro market ( see Order 2009-4-6).

3 See footnote 1.2 Action taken by: Paul L. Gretch, Director

Office of International Aviation

XX The authority granted is consistent with the aviation agreement between the United States and Brazil.

Except to the extent exempted or waived, this authorit y is subject to the terms, conditions, and limitations

indicated: XX US Airways’ certificates of public convenience and necessity

XX Standard U.S. Carrier Ex emption Conditions (attached)

------------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------- Conditions: The frequencies temporarily reallocated here to US Airways are subject to start-up and dormancy conditions. If US Airways does not begin service with the reallocated frequencies within 90 days of January 11, 2011, then, in light of the fact that the reallocation of these frequencies derives from an unopposed arrangement between United and US Airways, the unu sed frequencies will automatically revert to United. Similarly, any frequency not operated for a period of 90 days (once inaugurated and for any reason other than seasonal use), will be deemed dormant and the reallocati on as to that frequency will revert to United.

Should any frequencies revert to United, whether under the start-up condition or the dormancy condition discussed immediately above, such frequencies will again be subject to start-up and dormancy conditions while held by United. Specifically, if United does not begin servi ce with the reverted frequencies within 90 days of the reversion, any unused frequenc y will revert to the Department. Similarl y, any frequency that has reverted to United and which is not operated for a period of 90 da ys (once inaugurated by United and for any reason other than for seasonal use), will be deemed dormant and th e allocation as to that frequency will revert to the Department.

------------------------------------------------------------------------------------------------------------------------------- -------- On the basis of data officially noticeable under Rule 24(g) of the Department’s regulations, we found the applicants qualified to provide the services authorized.

Under authority assigned by the Department in its regula tions, 14 CFR Part 385, we found that (1) our action was consistent with Department policy; (2) grant of the author ity was consistent with the public interest; and (3) 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, we deni ed all requests in the referenced Dockets. 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 th is document is available on the World Wide Web at: http://www.regulations.gov1 

### Appendix A

U.S. Carrier Exemption Conditions

In the conduct of the operations authori zed, the U.S. carrier applicant(s) shall:

(1) Hold at all times effectiv e operating authority from the govern ment of each country served;

(2) Comply with applicable requirements concerni ng oversales contained in 14 CFR 250 (for scheduled operations, if authorized);

(3) Comply with the requirements fo r reporting data contained in 14 CFR 241;

(4) Comply with requirements for minimum insuran ce coverage, and for certifying that coverage to the Department, contained in 14 CFR 205;

(5) Except as specifically exempted or otherwise pr ovided for in a Department Order, comply with the requirements of 14 CFR 203, concerni ng waiver of Warsaw Convention liability limits and defenses;

(6) Comply with all applicable requirements of th e Federal Aviation Administration, the Transportation Security Administration, and with all applicable U.S. Government requirements con cerning security, including, but not limited to, 49 CFR Part 1544. To assure complian ce with all applicable U.S. Government requirements concerning security, the holder shall, before commencing any new service (including charter flig hts) to or from a foreign airport, contact its Principal Security Inspector (PSI) to advise the PSI of its plans and to find out whether the Transportation Security Ad ministration has determined that secu rity is adequate to allow such airport(s) to be served;

(7) Comply with such other reasonable terms, conditi ons, and limitations required by the public interest as may be prescribed by the Department of Transportation, with all applicable orders and regulations of other U.S. agencies and courts, and with all applicable laws of the United States.

The authority granted shall be eff ective only during the period when th e holder is in compliance with the conditions imposed above.

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