US Airways, Inc.

OST-2004-16899 - Exemption - Orlando-Bermuda

January 9, 2004

Application for an Exemption and Substitution of Gateway

Hereby applies for a two-year exemption from 49 U.S.C. § 41101 to engage in scheduled foreign air transportation of persons, property, and mail between Orlando, Florida and Hamilton, Bermuda, with services scheduled to begin in May 2004. US Airways further requests that pursuant to the Air Services Agreement between the United States of America and the Government of the United Kingdom of Great Britain and Northern Ireland, as amended Orlando, Florida, be substituted as a U.S. gateway on U.S. Route 4 in place of one of the other long dormant gateways.

US Airways operates jet service to numerous island destinations in the Atlantic and Caribbean. It currently serves Bermuda nonstop from Philadelphia, in addition to seasonal service from several other U. S. points. US Airways plans to operate scheduled nonstop service between Orlando and Bermuda on Saturdays commencing in May 2004 on a seasonal basis. For this service, US Airways plans to utilize Airbus A-319 aircraft, currently in its fleet, with 120 seats configured in a two class configuration.

Three of the gateways Chicago, Detroit and Miami currently are unused. No service to BDA has been operated in the past 10 years to/from these gateways by a U.S. carrier. Accordingly, US Airways requests that one of these dormant gateways on U.S. Route 4 be changed to Orlando so that US Airways can inaugurate this beneficial new service in May.

Counsel: US Airways, Elizabeth Lanier, 703-5230

January 26, 2004

Answer of United Air Lines

United opposes any request by the U.S. to "exchange" Chicago as a gateway to Bermuda in order to enable Orlando to be named instead. United has firm plans to implement nonstop services between Chicago and Bermuda beginning May 1, 2004. United holds authority from DOT to operate Chicago‑Bermuda services and has already been designated under the U.S‑U.K. agreement to do so. The proposal of US Airways could have the effect either of blocking United's plans to serve Chicago as a gateway or requiring a carrier/gateway selection proceeding which could delay United's planned implementation of services.

Counsel: United and Wilmer Cutler, Jeffrey Manley, 202-663-6670, jeffrey.manley@wilmer.com

January 30, 2004

Re: Letter from UK Department of Transport | Word

The Bermudan authorities support this application, as do the UK’s Department for Transport.

The UK Government is prepared to allow this service, should the application be approved by the US Department of Transportation, on the basis of comity and reciprocity. The service would be in addition to those rights available on US Route 4 of the UK/US Air Services Agreement, and on the basis that US authorities would be prepared to allow a UK designated airline to operate between Bermuda and a US gateway selected by the UK Government in addition to those rights available on UK Route 8.

By: Simon Knight

Filed January 9, 2004 | Issued February 20, 2004

Notice of Action Taken | Word

Scheduled foreign air transportation of persons, property, and mail between Orlando, Florida, and Hamilton, Bermuda.

In its application, US Airways states that that, under U.S. Route 4 of the U.S.-U.K. Air Services Agreement, U.S. carriers my serve Bermuda from several designated U.S. points.  It asks that the U.S. Government substitute Orlando as an available U.S. gateway in place of one of several long-dormant U.S. gateways on the Route, stating that the dormant U.S. gateways are currently providing no public benefits. US Airways states that it proposes to commence its proposed Orlando-Bermuda service in May, 2004, using A-319 aircraft, and to conduct these operations on a seasonal basis.

On January 26, 2004, United Air Lines, Inc. filed an answer to the application.  United states that it does not object to US Airways’ request per se, but does oppose any request by the United States to substitute Orlando for the current Chicago gateway.

We are granting this authority on an extrabilateral basis, in view of an Exchange of Letters between representatives of the United States and the United Kingdom. In that Exchange of Letters, the U.K. authorities indicated their willingness to permit US Airways to conduct the services authorized here on the basis of comity and reciprocity, in addition to those rights available to the United States under U.S. Route 4 of the U.S.-U.K. Agreement, and the U.S. authorities stated that they were prepared to allow a U.K.-designated carrier to operate between Bermuda and a U.S. gateway selected by the Government of the United Kingdom in addition to those rights available to the United Kingdom under U.K. Route 8 of that Agreement. In light of the intergovernmental exchange noted above, we need not address US Airways’ request that we substitute Orlando for an existing U.S. gateway on U.S. Route 4 of the Agreement.

On February 5, 2004, US Airways filed an application in Dockets OST 2001-11152 and OST 1996-1839 to renew certain exemption authorities.  In that application, US Airways asked that we consolidate a number of proceedings, including the Orlando-Bermuda proceeding before us here, into a single Docket, with a common expiration date for the authorities involved.  We will act on this request of US Airways at a later date.

By: Paul Gretch

December 16, 2005

Application for Renewal of an Exemption

US Airways applies for renewal of its exemption authority to engage in scheduled foreign air transportation of persons, property, and mail between Orlando, Florida and Hamilton, Bermuda.

US Airways provides scheduled air service between Orlando, Florida and Hamilton, Bermuda on a seasonal basis.

Counsel: US Airways, Howard Kass, 703-872-5230, howard_kass@usairways.com

Filed December 16, 2005 | Approved January 26, 2006

Notice of Action Taken | Word

Scheduled foreign air transportation of persons, property, and mail between Orlando, Florida, and Hamilton, Bermuda.

By: Paul Gretch

November 27, 2007

Application for Renewal of an Exemption

US Airways applies for renewal of its exemption authority to engage in scheduled foreign air transportation of persons, property, and mail between Orlando, Florida, and Hamilton, Bermuda. US Airways provides scheduled air service between Orlando, Florida, and Hamilton, Bermuda, on a seasonal basis.

By Notice of Action Taken (January 26, 2006), the Department granted US Airways a two-year exemption from 49 U.S.C. 41101 to engage in scheduled foreign air transportation of persons, property, and mail between Orlando, Florida, and Hamilton, Bermuda.

Counsel: US Airways, Howard Kass, 202-326-5153, howard_kass@usairways.com