UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on Ju ly 9, 2012



### NOTICE OF ACTION TAKEN

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

a dditional confirming order will be issued in this matter).

Applicant 

### : Augsburg Airways GMBH Date Filed: June 13, 2012

Relief requested: Amend existing e xemption from 49 U.S.C. § 41301 to the extent necessary to enable the applicant to

conduct sch eduled foreign air transportation of persons, property and mail by displaying the code of any duly authorized U.S. air carrier on flights it operates not only for Deutsche Lufthansa AG (Lufthansa) but also for Austrian Airlines AG (Austrian) between any po int or points in any Member State of the European Union and beyond the European Union to any point or points

. 1 2

D ate and c itation of last action: November 7, 2011, in this docket

Applicant representative: Arthur Molins (516) 296

- 9234 DOT Analyst: She lita A. Johnson (202) 366

- 1226 Responsive pleadings: None filed

DISPOSITION

Action: Approved Action date : July 9, 2012

Effective dates of exemption authority granted: July 9, 2 012

– November 7, 2013 3

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

- EU 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) Foreign air carrier pe rmit ( Order ) Action taken by: Paul L. Gretch, Director

Office of International Aviation

_____________________________________________________________________________________________________________________________ ___ Under authority a ssigned 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, mo dify, 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

1 This exemption provides the holder with underlying authority to conduct the described code

- share operations. The holder must also hold an appropriate Statement of Authorization under 14 CFR Part 212 to conduct any code

- share operati ons authorized by this notice.

2 Augsburg Airways’ existing exemption authority ( see Notice of Action Taken date d November 7, 2011, in this docket) authorizes it to engage in scheduled foreign air transportation of persons, property and mail by displaying the code of any duly authorized U.S. air carrier on flights it operates on behalf of Lufthansa between any point or points in any Member State of the European Union a nd beyond the European Union to any point or points.

3 W e have granted the applicant’s re quest for amended exemption authority through November 7, 2013, coextensive with its existing exemption authority in this Docket.Foreign Carrier Exemption Conditions

In the conduct 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. Gover nment 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, be fore 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 Prin cipal 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 (AF S

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 C hicago 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 P art 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 proceedin gs 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. I n 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

cha rter 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 reasonabl e 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 sha ll 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.

EU carrier 01/2008