UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC



### Issued by the Department of Transportation on May 3 , 2010

NOTICE OF ACTION TAKEN

-- DOCKET OST

- 2006

- 24218

___________

______________________________________________________________________________________________ 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 t his matter).

Application of SHUTTLE AMERICA CORPORATION (Shuttle America ), filed 4 / 20 / 10

, for:

XX Renewal of exemption for two years under 49 U.S.C. 40109 to provide the following service:

Scheduled foreign air transportation of persons, property, and mail between points in the United States and points in the Bahamas. 1

Applicant rep: Robert E. Cohn (202) 637

- 4999 DOT Analyst: Linda L. Lundell (202) 366

- 2336

D I S P O S I T I O N

XX Granted (subject to conditions, see below)

T he above action was effective when taken: May 3 , 2010

, through May 3 , 2012 , or until 90 days after the Department’s final action on the carrier’s corresponding certificate application, in Docket DOT

- OST

2007

- 0084, whichever occurs earlier.

Action ta ken by: Paul L. Gretch, Director

Office of International Aviation

XX The authority granted is consistent with the 1946 Air Transport Agreement between the United States and the United Kingdom, as amended, to which the Government of the Bahama s acceded upon its independence, and with the overall state of aviation relations between the United

States and the Bahamas.

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

indicated:

XX The holder’s certificates of public convenience and necessity 2

XX Standard exemption conditions (attached)

Conditions:

The code

- share operations conducted under this authorization are subject to the following conditions:

(a) The code

- sharing operations con ducted under this authority must comply with 14 C.F.R. 257 and with any amendments to the Department’s regulations concerning code

- share arrangements that may be adopted. Notwithstanding any provisions in the contract between the carriers, our approval he re is expressly conditioned upon the requirements that the subject foreign air

1 Shuttle America states that it uses this authority to provide “Delta Connection” service on behalf of Delta Air Lines, Inc. (Delta), and “United Express” service on behalf of United Air Lines, Inc. (United).

2 In our p revious grant, we noted that Shuttle America’s large aircraft operations were restricted to fee

- for

- service agreements with major U.S. carrier s ( see Notice of Action Taken dated June 2, 2008, in the captioned docket).

While that restriction has now been r emoved , the carrier is still required to notify the Department 45 days in advance should it wish to commence independent operations ( see Order 2009

- 3

- 16, issued March 23, 2009, in Docket DOT

OST

- 1998

- 3876).transportation be sold in the name of the carrier holding out such service in computer reservation

systems and elsewhere; that the carrier selling such transportation (i.e., the carrier shown on the ticket) accept responsibility for the entirety of the code

- share journey for all obligations established in its contract of carriage with the passenger; and that the passenger liability of the operating carrier be unaffected; and

(b) The authority granted here is specifically conditioned so that neither Shuttle America nor its

code

- share partner(s) shall give any force or effect to any contractual provisions between themselves that are contrary to these conditions.

Remarks: We acted on this application without awaiting expiration of the 15

- day answer period with the consent of all parties.

On the basis of data o fficially noticeable under Rule 24(g) of the Department's regulations, we found the applicant qualified to provide the exemption services authorized.

Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our

act ion was consistent with Department policy; (2) grant of the authority 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 exten t not granted, 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 f orth 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: www.regulations.govATTACHMENT

U.S. Carrier Exemption Conditions

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

(1) Hold at all times effective operating authority from the government of each country served;

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

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

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

(5) Except as specific ally exempted or otherwise provided for in a Department Order, comply with the requirements of 14 CFR 203, concerning waiver of Warsaw Convention liability limits and defenses;

(6) Comply with all applicable requirements of the Federal Aviation Administr ation, the Transportation Security Administration, and with all applicable U.S. Government requirements concerning security, including, but not limited to, 49 CFR Part 1544. To assure compliance with all applicable U.S. Government requirements concerning security, the holder shall, before commencing any new service (including charter flights) 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 Admini stration has determined that security is adequate to allow such airport(s) to be served; and

(7) Comply with such other reasonable terms, conditions, 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 effective only during the period when the holder is in compliance with the conditions imposed above.

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