 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on January 20, 2004

   NOTICE OF ACTION TAKEN -- DOCKET OST-1996-1353

     OST-1997-2419

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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 this matter).

Application of American Airlines, Inc. filed 12/22/2003 to:

XX  Renew exemptions under 49 U.S.C. 40109 to provide the following
services:

Docket OST-96-1353

Scheduled foreign air transportation of persons, property, and mail
between a point or points in the United States, via intermediate points,
and Belem, Belo Horizonte, Brasilia, Manaus, Porto Alegre, Recife, Rio
de Janeiro, Salvador, and Sao Paulo, Brazil, and beyond Brazil to
Argentina, Chile, Paraguay, and Uruguay.

Docket OST-97-2419

Scheduled foreign air transportation of persons, property, and mail on a
code-share basis only between a point or points in the United States and
Cuiaba, Curitiba, Florianopolis, Fortaleza, Foz do Iguacu, Goiania,
Joinville, Natal, Navegantes, Parana, Porto Velho, Ribeirao Preto, Sao
Luis, Teresina, Vilhena, and Vitoria, Brazil and the right to integrate
such authority with its U.S.-South American (Route 389) and other
U.S.-Brazil exemption authority, for purposes of a code-sharing
arrangement between American and TAM-Linhas Aereas, S.A. 

American requests renewal of these authorities for an indefinite term.

Applicant rep:  Carl B. Nelson, Jr. (202) 496-5647  DOT Analyst:  Linda
Senese (202) 366-2367

D I S P O S I T I O N

XX Granted, in part (subject to conditions, see below)

XX   Balance dismissed (i.e., request for indefinite duration)

The above action was effective when taken:   January 20, 2004, through 
January 20, 2006 , or until 90 days after final Department action on
American’s corresponding certificate applications in Dockets
OST-95-497 (formerly Docket 48301) and OST-95-552 (formerly Docket
48343), whichever occurs earlier.

Action taken by:   Paul L. Gretch, Director	

		    Office of International Aviation	

XX  The authority granted is consistent with the aviation agreement
between the United States and Brazil, as amended.

(See Reverse Side)

2

Except to the extent exempted or waived, this authority is subject to
the terms, conditions, and limitations indicated:  XX Holder’s
certificates of public convenience and necessity

	   XX  Standard exemption conditions (attached)

	   XX  Statement of authorization approving the American/TAM code-share
operations

          dated August 24, 2001, and conditions therein

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Conditions:  The route integration authority granted is subject to the
condition that any service provided under this exemption shall be
consistent with all applicable agreements between the United States and
the foreign countries involved, and further (a) nothing in the award of
route integration authority granted should be construed as conferring
upon American rights (including fifth-freedom, intermediate and/or
beyond rights) to serve markets where U.S. carrier entry is limited
unless American notifies the Department of its intent to serve such a
market and unless and until the Department has completed any necessary
carrier selection procedures to determine which carrier(s) should be
authorized to exercise such rights, and

(b) should there be a request by any carrier to use the limited-entry
route rights that are included in American’s authority by virtue of
the route integration exemption granted here, but that are not then
being used by American, the holding of such authority by virtue of route
integration will not be considered as providing American a preference in
a competitive carrier selection proceeding to determine which carrier(s)
should be entitled to use the authority at issue.

Dismissal:  Consistent with our standard practice for this type of
application, we renewed American’s exemption authority for two years,
and dismissed its request for longer-term authority.

Remarks:  American also urges the Department to act on its pending
applications for broad U.S.-Brazil authority in Dockets OST-95-497
(formerly 48301) and OST-95-552 (formerly 48343).  We are considering
American’s pending certificate applications in Dockets 95-497 and
95-552 separately.

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

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

(1) our action was consistent with Department policy; (2) grant of the
exemption 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 extent not
granted or 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 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:

http://dms.dot.gov//reports/reports_aviation.asp

			Attachment

U.S. Carrier Exemption Conditions

In the conduct of the operations authorized, 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 specifically 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
Administration and with all applicable U.S. Government requirements
concerning security.  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 Administration 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.

										08/2003

