 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on March 17, 2003

   NOTICE OF ACTION TAKEN -- DOCKET OST-98-3622

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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 2/26/03 to:

XX  Renew exemption under 49 U.S.C. 40109 to provide the following
service:

Scheduled foreign air transportation of persons, property, and mail
between Los Angeles and San Francisco, California, on the one hand, and
Beijing and Shanghai, China, on the other.  American states that this
authority is used for services provided under a code-sharing arrangement
with China Eastern Airlines Corporation on flights operated by China
Eastern.  American seeks renewal of this exemption for an indefinite
duration.

No answers were received to this application.

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  (see remarks below)

XX  Balance Dismissed. (Request of longer-term exemption authority, see
below)

The above action was effective when taken:  March 17, 2003, through  
March 17, 2005.

Action taken by:   Paul L. Gretch, Director	

		    Office of International Aviation

	

XX  Authority granted is consistent with the Air Transport Agreement
between the United States and the the People’s Republic of China.

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)

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Remarks:  Consistent with our standard practice for this type of
application, we granted American exemption authority for a period of two
years, and dismissed its request for longer-term authority. 

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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.

(See Reverse Side)

2

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



								APPENDIX A

U.S. CARRIER

Standard Exemption Conditions

In the conduct of operations authorized by the attached notice, the
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 the applicable requirements of the Federal Aviation
Administration Regulations, and with all U.S. Government requirements
concerning security; 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.

										(10/02)

 To assure compliance with all applicable U.S. Government requirements
concerning security, the holder should, before commencing any new
service (including charter service) to or from a foreign airport, inform
its Principal Security Inspector of its plans.

