US Airways, Inc.

OST-2008-0257 - Exemption - US-Tel Aviv

August 19, 2008

Application for an Exemption

US Airways hereby applies for an exemption and, to the extent necessary, a designation in order to engage in scheduled foreign air transportation of persons, property, and mail between the United States and Tel Aviv, Israel. US Airways requests expedited processing of this application so that it can begin marketing the services proposed herein as soon as possible.

US Airways plans to commence service between Philadelphia, Pennsylvania, and Tel Aviv, Israel, on or about July 2, 2009, using new Airbus A330-200 aircraft set for delivery in spring 2009. US Airways currently plans to operate this service daily on a year-round basis.

US Airways will continue to codeshare on flights operated by Lufthansa in the United States-Tel Aviv market.

Counsel: US Airways, Howard Kass, 202-326-5153

August 20, 2008

Re: Polling Results

We have polled the US air carriers on the attached service list regarding the above-referenced Application. We received no objections.

Counsel: US Airways, Howard Kass

Filed August 19, 2008 | Issued August 20, 2008

Notice of Action Taken

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 the United States and Tel Aviv, Israel.

US Airways holds exemption authority to provide code-share services between the United States and Tel Aviv, Israel, under its code-share arrangement with Lufthansa. See Docket OST-2003-15993. US Airways now seeks exemption authority to operate between the United States and Tel Aviv with its own aircraft.

By: Paul Gretch