UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on October 29 , 2010



### NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 2010

- 0265

________________________________________________________________________________________________ ________ This serves as notice to the public of the action described below, taken by the Department official indicated (no additional confirming order will be i ssued in this matter).

Applicant : JETSTAR AIRWAYS PTY. LIMITED ( Jetstar ) Date Filed: October 21, 2010

Relief requested: E xemption from 49 USC §41301 to the extent necessary and a s tatement of authorization under 14

CFR Part 212 to permit Jetsta r to display the ( AA *) designator code of American Airlines, Inc

. (American) on intra

- New Zealand flights operated by Jetstar , for the purpose of transporting American code

- share traffic from Qantas Airways

- operated U.S.

- New Zealand flights

. 1 The applicant further requests a waiver of the 45

- day advance filing requirement under 14 CFR Part 212.

Applicant representative: Moffett B. Roller , 202

- 331

- 3300 DOT analyst: Robert J. Finamore , 202

- 366

- 2405

Responsive pleadings: None filed.

DISPOSITION

Action: Approved , subject to c onditions Action date: October 29 , 2010 2

Effective dates of authority granted: Our action granting e xemption authority to Jetstar is effective October 29 , 2010

, and shall remain in effect through Oc tober 29 , 2012

. The statement of authorization granted to Jetstar is effective

October 29 , 2010, and shall remain in effect for an indefinite period, subject to conditions.

Basis for approval (bilateral agreement/reciprocity): Overall state of aviation r elations between the United States and

Australia.

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our standard exemption conditions and code

- share conditions (attached)

.

Special conditions/Rema rks: In the circumstances presented, w e have decided that approval of Jetstar’s request for this

extra

- bilateral authority is consistent with the public interest. We further note that American has conducted a safety audit

of Jetstar u nder the Department’s Code

- Share Safety Audit Program, and the FAA has advised us that it has reviewed the relevant audit report and found it to be acceptable.

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) our action was consistent w ith Department policy; (2) the applicant was qualified to perform its proposed operations; (3) grant of the authority was consist en t with the public interest; and (4) grant of the authority would not constitute a major regulatory action under the Energy Policy an d

1 Jetstar, a foreign air carrier of Australia and a wholly

- owned subsidiary of the Qantas group, states that it holds authority from the Civil Aviation Authority of New Zealand to oper ate domestic service within New Zealand. Jetstar further states that it initially plans

to introduce American code

- share service on flights operated by Jetstar in the following markets: 1) Auckland

- Christchurch; 2) Auckland

- Wellington; 3) Auckland

- Queens town; 4) Christchurch

- Wellington; and 5) Christchurch

- Queenstown. American already hold s authority to operate scheduled service between any point in the United States and any point in New Zealand. See

Order 2007

- 4

- 2.

2 The Department is acting on the application of Jetstar prior to the expiration of the 15

- day answer period with the consent of all parties served.Conservation Act of 1975. To the extent not granted/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 regulati ons, 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

### Foreign Carrier Exemption Conditions

In the conduct of the operations authorized, the foreign carrier applicant(s) 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 A dministration, 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 complia nce 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, conta ct its International Industry Representative (IIR ) (formerly referred to as International Principal Security Inspector) to advise the I IR of its plans and to find out whether the Transportation Security Administration has determined that security is adequa te 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 its homeland;

(9) Co mply 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 regulation s 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 sol d or otherwise transferred without explicit Department approval under Title 49 of the U.S. Code.

1 2/2007The code

- share operations authorized here are subject to the following conditions:

(a) The statement of authorization will remain in effect only as long as (i) Ame rican and Jetstar continue to hold the necessary underlying authority to operate the code

- share services at issue, and (ii) the code

- share agreement providing

for the code

- share op erations remains in effect.

(b) American and/or Jetstar must promptly notify the Department if the code

- share agreement providing for the

code

- share operations is no longer effective or if the carriers decide to cease operating all or a portion of the ap proved

code

- share services. Such notices should be filed in Docket OST

- 2010

- 0265

.

(c) American and/or Jetstar must notify the Department no later than 30 days before they begin any new code

- share

service under the code

- share services authorized here. Su ch notice shall identify the market(s) to be served and the date on which the service will begin. Such notices should be filed in Docket DOT

- OST

- 20 10

- 0 265

.

( d ) The code

- sharing operations conducted under this authority must comply with 14 CFR 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 here is expressly conditioned upon the requirements that the subj ect foreign air transportation be sold in the name of the carrier holding out such service in the 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; that the passenger liability of the operating carrier be unaffected ; and that the operating carrier shall not permit the code of its U.S. co de

- sharing partner to be carried on any flight that enters, departs, or transits the airspace of any area for whose airspace the Federal Aviation Administration has issued a flight prohibition.

(e ) The authority granted here is specifically conditioned so that neither American nor Jetstar shall give any force or effect to any contractual provisions between themselves that are contrary to these conditions.

We may amend, modify, or revoke the authority granted at any time without hearing at our discretion.