 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on March 16, 2006

   NOTICE OF ACTION TAKEN -- DOCKETS OST-96-1353

				     				    OST-97-2419

CORRECTED COPY**

________________________________________________________________________
_________________________________

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. (AMERICAN) filed 11/8/05 for:

Docket OST-96-1353

XX  Renewal of 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 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

XX  Amended exemption for two years under 49 U.S.C. §40109 to provide
the following service:

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
a point or points in Brazil limited to the 30 points named under the
U.S.-Brazil Air Transport Agreement.   

Applicant rep: Carl B. Nelson  (202) 496-5647     Analyst:  Thuy H.
Cooper  (202) 366-5423

** This Notice of Action Taken is corrected to reflect accurately the
docket numbers for American’s renewal and amended exemption
applications in the body of the Notice.  D I S P O S I T I O N

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

XX  Dismissed in part (request for route integration authority)

The above action was effective when taken: March 15, 2006, through March
15, 2008, or until 90 days after final Department action on American’s
corresponding application for a certificate of public convenience and
necessity in Docket OST-2000-8516, 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.

  

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

________________________________________________________________________
____________________________________

Conditions: The authority granted to serve intermediate points is
limited to countries with which the United States has signed open-skies
agreements and/or countries for which the carrier holds authority to
serve under certificates or exemptions issued by the Department, and for
which it holds route integration authority by virtue of either the
present action or other action of the Department.

Responsive Pleadings:  On November 18, 2005, United filed an answer
stating that it does not oppose American’s application so long as
United’s own pending application in Dockets OST-96-1346 and
OST-97-2358 for similar authority is granted no later than American’s
application.  We are granting, concurrently, both requests. 

Remarks:  Under the U.S.-Brazil air services agreement, the United
States can name 30 points for U.S. carriers to serve via code-share
service.  At this time, the United States has designated the following
22 code-share points: Bauru, Campo Grande, Cascavel, Cuiaba, Curitiba,
Florianopolis, Fortaleza, Goiania, Joao Pessoa, Iguacu, Joinville,
Londrina Maceio, Maringa Parin, Natal, Navagantes, Porto Velho, Ribeirao
Preto, Sao Luiz, Teresina, Vilhena, and Vitoria.  The authority granted
here permits American to serve all code-share points currently
designated by the United States and those that may be designated in the
future under the U.S.-Brazil agreement.  This authority shall not be
construed as to grant American authority to serve any point that is not
properly designated, or to serve more than 30 points via code share.  

________________________________________________________________________
______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:

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

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, including, but not limited to, 49 CFR Part 1544. 
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
International Principal Security Inspector (IPSI) to advise the IPSI 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.

										  05/2004

 American's application here for exemption authority also references a
pending American application for certificate authority.  See Docket
OST-2000-8516.  We will handle its certificate request separately.

 The application also seeks renewal of American’s existing exemption
authority to provide code-share service between a point or points in the
United States and Campo Grande, Cuiaba, Curitiba, Florianopolis,
Fortaleza, Foz do Iguacu, Goiania, Joinville, Londrina, Maceio, Natal,
Navagantes, Parana, Porto Velho, Ribeirao Preto, Sao Luiz, Teresina,
Vilhena, and Vitoria, Brazil, pursuant to its code-share arrangement
with TAM-Linhas Aereas, S.A.  We note that the broader amended authority
that the applicant seeks, and that we are granting in this Notice,
subsumes current authority.  The carrier’s renewal request also seeks
renewal of route integration authority.    

 American states that United Air Lines Inc. (United) requested identical
broad authority on November 4, 2005 in Docket OST-1997-2358, and that
the Department should treat both carriers’ requests equally with
respect to the grant of the U.S.-Brazil code-share rights.

 As we said above in note 2, American also requested renewal of route
integration authority.  That has been superseded by Order 2006-1-1,
where the Department awarded the carrier a blanket route integration
certificate.

 See Department Action dated August 24, 2001 in Docket OST-2000-8028.

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