OST-95-554 / US Airways / July 22, 1997

NOTICE: Any person may support or oppose this application by filing an answer and serving a copy of the answer upon US Airways and all persons served with this application on or before August 5, 1997.

Application of

US AIRWAYS, INC.

for an exemption pursuant to 49 U.S.C. 40109 (Charlotte; (Baltimore/Washington; Philadelphia-St. Maarten, Netherlands Antilles)

July 22, 1997

Pursuant to 49 U.S.C. § 40109 and Subpart D of the Department's Rules of Practice (14 C.F.R. Part 302), US Airways, Inc. applies for a two-year renewal of its exemption from 49 U.S.C. § 41101 to engage in scheduled foreign air transportation of persons, property and mail between Baltimore/Washington, Charlotte and Philadelphia, on the one hand, and St. Maarten, Netherlands Antilles, on the other hand. In support of this application, US Airways states as follows:

1. US Airways is a corporation organized and existing under the laws of the State of Delaware, with its principal place of business located at Crystal Park Four, 2345 Crystal Drive, Arlington, Virginia 22227. US Airways is a citizen of the United States within the meaning of 49 U.S.C. § 40102(a)(15), and is fit, willing and able to perform the foreign air transportation detailed herein. US Airways holds

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2. In 1993, the Department granted US Airways a two-year exemption from 49 U.S.C. § 41101 authorizing US Airways to engage in scheduled foreign air transportation between Baltimore/Washington ("BWI") and St. Maarten, and between Philadelphia and St. Maarten. Order 93-12-8 (December 7, 1993). In 1995, the Department renewed and amended the exemption to allow US Airways to serve St. Maarten from Charlotte, North Carolina. Order 95-10-13 (October 6, 1995). By this application, US Airways seeks a two-year renewal of this authority.

3. Pursuant to 14 C.F.R. § 377.10, US Airways intends to rely on the Administrative Procedures Act, 5 U.S.C. § 558(c), as implemented by Part 377, to continue in effect its current exemption authority pending final Department action on this renewal application. This application is timely filed under the provisions of Part 377.

4. US Airways is currently operating two nonstop flights per week between Philadelphia and St. Maarten, utilizing Boeing 757 aircraft. In addition, US Airways

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operates one weekly nonstop flight between Charlotte and St. Maarten, also utilizing Boeing 757 aircraft.) /1

5. Renewal of US Airways' exemption is fully consistent with the terms of the 1957 U.S.-Netherlands Air Transport Services Agreement, as amended, and will clearly serve the public interest. US Airways' operations support commerce and tourism between St. Maarten and the Northeastern United States and offer valuable price and service options to consumers.

6. US Airways is fit, willing and able to provide the service detailed herein and will continue to abide by the conditions and limitations the Department typically attaches to such authorities.

WHEREFORE, for the foregoing reasons, US Airways, Inc. requests that the Department renew its exemption authority, for a minimum period of two (2) years, authorizing US Airways to conduct scheduled foreign air transportation of persons, property and mail between Baltimore/Washington, Charlotte and Philadelphia, on the one hand, and St. Maarten, Netherlands Antilles, on the other hand, and that the

1/ Although US Airways is not presently serving St. Maarten from the Baltimore/Washington gateway, US Airways seeks renewal of its BWI authority in order to retain the flexibility to offer the service again during the exemption period should conditions warrant.

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Department grant such other and further relief as the Department deems appropriate.

Respectfully submitted,

ZUCKERT, SCOUTT RASENBERGER, L.L.P.

Richard D. Mathias

Frank J. Costello

Cathleen P. Peterson

888 Seventeenth Street, N.W.

Suite 600

Washington, D.C. 20006

(202) 298-8660

Counsel for US Airways, Inc.

July 22, 1997