Order 2015-5-4

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 8th day of May, 2015

 Served: May 8, 2015

Applications of

LUFTHANSA CITYLINE GMBH Dockets DOT-OST-2015-0023

 

for an exemption under 49 U.S.C. §40109 and a foreign 

air carrier permit under 49 U.S.C. §41301 

and

a statement of authorization under 14 CFR Part 212

 

 DOT-OST-2003-15485

ORDER GRANTING EXEMPTION, STATEMENT OF AUTHORIZATION, AND TO 

SHOW CAUSE

Summary

By this order we (1) grant the application of the referenced foreign air carrier for an exemption 

under 49 U.S.C. §40109, subject to conditions;1 (2) grant the application of the referenced 

foreign air carrier for a statement of authorization under 14 CFR Part 212, subject to conditions;

and (3) tentatively find that it is in the public interest to grant the applicant the foreign air carrier 

permit attached as Appendix B to this order.

Background

By Notice dated May 3, 2007, we invited foreign air carriers of the European Union (EU) to 

apply for Department economic authority to conduct operations to and from the United States 

under the U.S.-EU Air Transport Agreement. In that Notice, we stated our intent to process 

requests for this authority under the “streamlining” procedures set out in our August 23, 2005 

Notice in Docket DOT-OST-2005-22228, in which we announced several steps designed to 

simplify our regulatory procedures for licensing foreign (and U.S.) air carriers. Our action in this 

 1 The conditions are attached as Appendix A.
2

Order serves to implement those streamlined regulatory procedures for the application involved 

in this proceeding.

Applications

By application filed February 9, 2015 (as supplemented March 30, 2015), Lufthansa CityLine 

GmbH (CityLine), a foreign air carrier of Germany, requests an exemption under 49 U.S.C 

§40109 and a foreign air carrier permit under 49 U.S.C. §41301, to engage in the following 

services:

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 point(s) 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. Foreign scheduled and charter air transportation of cargo between any point or points in 

the United States and any other point or points;

d. Other charters pursuant to the prior approval requirements set forth in 14 CFR Part 212 

of the Department’s economic regulations governing charters; and

e. Transportation authorized by any additional route rights made available to European 

Union carriers in the future. 

The applicant provided evidentiary materials required by 14 CFR Part 211 of our regulations to 

support its requests for authority.

In its March 30, 2015 supplemental filing, CityLine provided the Department with a copy of its 

homeland Operating License, Air Operator Certificate, and Operations Specifications.

In addition, by application filed February 9, 2015, CityLine requests in Docket DOT-OST-2003-

15485 an amended blanket statement of authorization under 14 CFR Part 212 to the extent 

necessary to permit CityLine to display the (UA*) designator code of United Airlines, Inc. 

(United) on flights operated by CityLine in scheduled foreign air transportation between: 1) any 

points or points in the United States and any point or points in the European Union (on a nonstop basis and intermediate routings via open skies points); 2) any point or points in the United 

States and any point or points in any member of the European Common Aviation Area, where an 

open skies agreement is being applied; 3) any point or points within the European Union; 4) any 

 2 CityLine currently holds exemption authority permitting it to conduct 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 Deutsche Lufthansa AG (Lufthansa) between any point or points in any Member State of the European 

Union and beyond the European Union to any point or points. See Notice of Action Taken dated September 16, 

2013, in Docket DOT-OST-2003-15485.
3

point or points in the European Union and any open skies point or points beyond the European 

Union; and 5) any point or points in the United States and any open skies point or points beyond 

the United States.3 4

No answers were filed to CityLine’s applications.

Decision

We have decided, consistent with our August 23, 2005 Notice referenced above, to grant the 

applicant’s request for exemption authority, as described below and subject to conditions, and 

tentatively to grant, subject to show-cause procedures, its request for a foreign air carrier permit, 

also subject to conditions.

Specifically, we will grant CityLine exemption authority for the services set forth in ordering 

paragraph 1 below. We will tentatively grant CityLine a foreign air carrier permit for these 

services.

As an additional matter, CityLine requested that we grant it, in addition to authority currently 

contained in the U.S.-EU Agreement, authority to conduct transportation authorized by any 

additional route rights made available to EU carriers in the future. We are granting the request of 

CityLine for this authority by exemption (and tentatively granting it by foreign air carrier 

permit). We are, however, requiring CityLine, before it commences any 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.5

With respect to the applicant’s request for exemption authority, we find that grant of this 

authority, as conditioned, is consistent with the public interest. We also find that the applicant is 

financially and operationally qualified to perform the services authorized, and that it is 

substantially owned and effectively controlled in a manner consistent with the provisions of the 

U.S.-EU Agreement.6 We also find that the authority sought by the applicant is encompassed by 

the U.S.-EU Agreement. 

Further, we note that the applicant is properly licensed by its homeland to perform the proposed 

services. In addition, on April 28, 2015, the Federal Aviation Administration advised us that it 

knew of no reason why we should act unfavorably on the applicant’s requests. We have verified 

the applicant’s compliance with 14 CFR Parts 203 (Warsaw liability waiver), and 205 (insurance 

requirements).

 3 CityLine’s existing blanket statement of authorization permits it to carry United’s designator code, for an indefinite 

duration, on flights operated by Lufthansa CityLine wholly within Germany, and, in addition, between points in 

Germany and points in third countries. See Notice of Action Taken dated July 15, 2003, in Docket DOT-OST-2003-

15485. 4 CityLine also filed an undocketed application for a statement of authorization under 14 CFR Part 212 to allow 

Lufthansa CityLine to wet lease aircraft to Lufthansa for a two-year period. We will act separately on that request. 5 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.

6 We make this finding based on Article 2 (Reciprocal Recognition of Regulatory Determinations with Regard to 

Airline Fitness and Citizenship) of the Protocol to amend the U.S.-EU Air Transport Agreement, signed 

June 24, 2010. 
4

In view of the above, we find that grant of the requested exemption authority, as conditioned, for 

a two-year term, or until the requested permit authority becomes effective, whichever occurs 

earlier, is warranted. 

We also find that grant, subject to the conditions set forth below and those specified in Notice of 

Action Taken dated July 15, 2003 in Docket DOT-OST-2003-15485, of the amended blanket 

statement of authorization requested by CityLine to permit it to display the (UA*) designator 

code of United on flights operated by CityLine in scheduled foreign air transportation between: 

1) any points or points in the United States and any point or points in the European Union (on a 

non-stop basis and intermediate routings via open skies points); 2) any point or points in the 

United States and any point or points in any member of the European Common Aviation Area, 

where an open skies agreement is being applied; 3) any point or points within the European 

Union; 4) any point or points in the European Union and any open skies point or points beyond 

the European Union; and 5) any point or points in the United States and any open skies point or 

points beyond the United States, is consistent with the provisions of 14 CFR Part 212 and is in 

the public interest. 

Tentative Findings and Conclusions--Foreign Air Carrier Permit Application

We tentatively find and conclude that the public interest warrants granting the applicant a foreign 

air carrier permit, in the form attached as Appendix B and subject to the conditions attached.7

 In 

particular, we tentatively find and conclude that the factors which support our grant of exemption 

authority to the applicant, as discussed above, also warrant granting the applicant the foreign air 

carrier permit it seeks.

In view of the foregoing and all facts of record and acting under authority assigned by the 

Department in its regulations, 14 CFR Part 385, we tentatively find and conclude that:

1. It is in the public interest to issue the applicant a foreign air carrier permit in the form 

attached; 

2. The applicant is fit, willing and able properly to perform the foreign air transportation 

described in the attached permit and to conform to the provisions of Title 49 of the U.S. Code, 

and to our rules, regulations, and requirements;

3. The applicant is substantially owned and effectively controlled in a manner consistent with 

the provisions of the U.S.-EU Agreement;

4. The public interest requires that the exercise of the privileges granted by the permit should be 

subject to the terms, conditions, and limitations contained in the attached permit, and to such 

other reasonable terms, conditions, and limitations required by the public interest as we may 

prescribe;

 7 The applicant’s request for a foreign air carrier permit was summarized in the Department’s published weekly list 

of applications filed. This notice described the authority sought and gave interested persons an opportunity to 

submit evidence and objections to the award of this foreign air carrier permit authority. As noted above, no answers 

to the application were filed.
5

5. The issuance of this foreign air carrier permit will not constitute a major regulatory action 

under the Energy Policy and Conservation Act of 1975, as defined in 14 CFR §313.4(a)(1) of our 

regulations;8

6. The public interest does not require an oral evidentiary hearing on the application; and

7. Our action with respect to this foreign air carrier permit should, unless disapproved by the 

President of the United States under §41307 of Title 49 of the U.S. Code, become effective on 

the 61st day after its submission for §41307 review, or upon the date of receipt of advice from 

the President or his designee under Executive Order 12597 and implementing regulations that he 

or she does not intend to disapprove this portion of the Department’s decision under that section, 

whichever occurs earlier.

In view of the above, we find that, with respect to the exemption authority we are conferring on 

the applicant, the applicant is qualified to perform those operations, and that grant of the 

exemption authority is consistent with the public interest and would not constitute a major 

regulatory action under the Energy Policy and Conservation Act of 1975. 

ACCORDINGLY,

1. We grant the request of Lufthansa CityLine GmbH for an exemption under 49 U.S.C. §40109 

for the services set forth below: 

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 point 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. Foreign scheduled and charter cargo air transportation between any point or points in the 

United States and any other point or points; 

d. Other charters pursuant to the prior approval requirements set forth in 14 CFR Part 212 of 

the Department’s economic regulations governing charters; and

e. Scheduled and charter transportation authorized by any additional route rights made 

available to European Union carriers in the future.

2. Lufthansa CityLine GmbH shall, before it commences any new service under subparagraph 

(e) of ordering paragraph 1 above, provide the Department in Docket DOT-OST-2015-0023 with 

 8

 This finding is based on the fact that the grant of this permit will not result in a near-term net annual change in 

aircraft fuel consumption of 10 million gallons or more.
6

evidence that it holds a homeland license for that new service, unless it has already provided 

such evidence to the Department;

3. The exercise of the privileges granted above is subject to compliance by Lufthansa CityLine 

GmbH with the conditions listed in Appendix A;

4. Our action granting the exemption authority described herein, subject to the provisions of the 

ordering paragraphs above, is effective immediately, for a period of two years from the issue 

date of this order, or until the attached permit becomes effective, whichever is earlier;

5. We grant, for an indefinite duration, the request of Lufthansa CityLine GmbH for an amended

blanket statement of authorization under 14 CFR Part 212 to permit it to display the (UA*) 

designator code of United Airlines, Inc. on flights operated by Lufthansa CityLine GmbH in 

scheduled foreign air transportation between: 1) any points or points in the United States and any 

point or points in the European Union (on a non-stop basis and intermediate routings via open 

skies points); 2) any point or points in the United States and any point or points in any member 

of the European Common Aviation Area, where an open skies agreement is being applied; 3) any 

point or points within the European Union; 4) any point or points in the European Union and any 

open skies point or points beyond the European Union; and 5) any point or points in the United 

States and any open skies point or points beyond the United States; 

6. The blanket statement of authorization described above is granted subject to the conditions 

specified in Notice of Action Taken dated July 15, 2003 in Docket DOT-OST-2003-15485 and 

the conditions that (a) such services must be carried out in compliance with 14 CFR Part 257, 

and (b) for any U.S.-EU operations Lufthansa CityLine GmbH conducts on behalf of Deutsche 

Lufthansa AG that involve the transport of U.S.-carrier code-share traffic, United Airlines, Inc. 

must conduct and keep current an FAA-approved safety audit of Lufthansa CityLine GmbH

under the Department’s Code-Share Safety Audit Program;

7. We may amend, modify, or revoke the exemption authority set forth herein at our discretion 

at any time and without hearing;

8. To the extent not acted upon above, we dismiss all requests for authority in Dockets

DOT-OST-2015-0023 and DOT-OST-2003-15485;

9. With respect to the applicant’s request for a foreign air carrier permit in this proceeding, we 

direct all interested persons to show cause why our tentative decision on that application, set 

forth above, should not be made final;

10. Any interested person objecting to the issuance of an order making final our tentative 

findings and conclusions with respect to the applicant’s request for a foreign air carrier permit 

shall, no later than twenty-one (21) calendar days after the date of service of this order, file with 

the Department and serve on the parties to this proceeding, a statement of objections specifying 

the part or parts of the tentative findings and conclusions objected to, together with a summary of 

testimony, statistical data, and concrete evidence to be relied upon in support of the objections; if 

objections are filed, answers to objections are due no later than seven (7) calendar days 

thereafter;
7

11. If timely and properly supported objections are filed, we will give further consideration to 

the matters and issues raised by the objections before we take further action;

12. In the event no objections are filed, all further procedural steps shall be deemed waived, and 

the Department will enter an order which will (subject to Presidential review under §41307 of 

Title 49 of the U.S. Code) make final our tentative findings and conclusions set forth in this 

order; and

13. We will serve a copy of this order on Lufthansa CityLine GmbH; the Embassy of Germany

in Washington, D.C.; the Department of State; and the Federal Aviation Administration.

By:

PAUL L. GRETCH

Director 

Office of International Aviation 

(SEAL)

Appendices

An electronic version of this document is available on the World Wide Web at:

http://www.regulations.gov
Foreign Air Carrier Exemption Conditions Appendix A

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. 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 

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 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.

EU carrier 01/2008
Appendix B

Issued by

Order 2015-X-XX

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

--------------------------------------------------------

PERMIT TO FOREIGN AIR CARRIER

---------------------------------------------------------

LUFTHANSA CITYLINE GMBH

A Foreign Air Carrier of Germany 

is authorized, subject to the following provisions, the provisions of Title 49 of the U.S. Code, 

and the orders, rules, and regulations of the Department of Transportation, to engage in:

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 point or 

points in the United States and beyond; 

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; 

Foreign scheduled and charter cargo air transportation between any point or points 

in the United States and any other point or points;

Other charters pursuant to the prior approval requirements set forth in 14 CFR 

Part 212 of the Department’s economic regulations governing charters; and

Transportation authorized by any additional route rights made available to 

European Union carriers in the future; provided, that the holder shall, before it 

commences any new service under such additional route rights, provide the 

Department with evidence that it holds a homeland license for that new service 

(unless it has already provided such evidence to the Department). Such evidence 

shall be filed in Docket DOT-OST 2015-0023.

This permit and the exercise of the privileges granted in it shall be subject to the terms, 

conditions and limitations in both the order issuing this permit and the attachment to this order, 

and to all applicable provisions of any treaty, convention or agreement affecting international air 

transportation now in effect, or that may become effective during the period this permit remains 

in effect, to which the United States and the holder’s homeland are or shall become parties.
This permit shall be effective on Month XX, 2015. Unless otherwise terminated at an earlier 

date pursuant to the terms of any applicable treaty, convention or agreement, this permit shall 

terminate (1) upon the dissolution or liquidation of the holder to whom it was issued; (2) upon 

the effective date of any treaty, convention, or agreement or amendment, which shall have the 

effect of eliminating the right for the service authorized by this permit from the service which 

may be operated by airlines of the European Union and its Member States (or, if the right is 

partially eliminated, then the authority of this permit shall terminate in like part); or (3) upon the 

termination or expiration of the applicable air services agreement between the United States and 

the European Union and its Member States. However, clause (3) of this paragraph shall not 

apply if prior to such termination or expiration, the foreign air transportation authorized herein 

becomes the subject of another treaty, convention or agreement to which the United States and 

the European Union and its Member States become parties.

The Department of Transportation has executed this permit and affixed its seal on Month XX, 

2015.

By:

PAUL L. GRETCH 

Director 

Office of International Aviation 

(SEAL)
Foreign Air Carrier Permit 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. 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 

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 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.

EU carrier 1/2008