	

                    UNITED STATES OF AMERICA

            DEPARTMENT OF TRANSPORTATION

                    OFFICE OF THE SECRETARY

                             WASHINGTON, DC



                               Issued by the Department of
Transportation on June 15, 2005

NOTICE OF ACTION TAKEN—DOCKET OST-1999-4994

________________________________________________________________________
__________________________________________

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  9/27/04,
supplemented 10/1/04 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:

a point or points in Japan and a point or points in the United States,
either nonstop or via an intermediate point or points in third
countries;

any two points in Japan, limited to traffic originating or terminating
outside Japan;

a point or points in the United States and a point or points beyond the
United States; and

a point or points in Japan and a point or points beyond Japan, on a
blind-sector basis.

American also seeks to renew authority to integrate this authority with
its existing certificate and exemption authority to engage in foreign
air transportation.  American intends to operate this service under a
code-share agreement with Japan Airlines International (JAL) and
JALways, a subsidiary of JAL. 

Application of   American Airlines, Inc.          filed  3/2/05  to: 

XX Amend condition 4 of exemption most recently amended by Notice of
Action Taken of September 30, 2004 in this docket to:

Permit American to provide code-share service with JAL on flights
operated by JAL with aircraft wet leased from Japan Airlines Domestic, a
sister company of JAL. 

Applicant reps:   Carl B. Nelson, Jr.,  (202) 496-5647       DOT
Analyst:   Gerald Caolo  (202) 366-2406

D I S P O S I T I O N

XX  Granted (subject to conditions, see below)

The exemption authority granted and the amendment were effective when
taken:  June 15, 2005, through  June 15, 2007

Action taken by:  Paul L. Gretch, Director

		  Office of International Aviation

XX  Authority granted is consistent with the 1998 Memorandum of
Understanding between the United States and Japan.

Except to the extent exempted or waived, this authority is subject to
the terms, conditions, and limitations indicated:     

	XX Holder’s Certificate of Public Convenience and Necessity
(American)

	XX Standard Exemption Conditions (attached)

________________________________________________________________________
___________________

Remarks:  

We dismiss as moot the joint motion of American and Japan Airlines
Domestic to change the answer date on these applications. 

Based on our approval here and the earlier amendment involving JALways,
condition (3) is amended to read as shown below.  

Conditions:  The exemption authority granted to American is subject to
the following conditions:  

(1) 	Any service provided under the route integration authority granted
shall be consistent with all applicable agreements between the United
States and the foreign countries involved, and further (a) nothing in
our award of the 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 us 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 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.

(2) 	The authority granted to operate via intermediate points and beyond
Japan to third countries shall be limited to blind-sector operations
only. 

(3)	The authority granted is limited to code-share operations on flights
(a) operated by Japan Airlines International Co. Ltd. (JAL) or by its
affiliate JALways Co., Ltd. and (b) operated by JAL with aircraft wet
leased to JAL by Japan Airlines Domestic Co., Ltd.

________________________________________________________________________
____________________

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 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, 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.



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 requested that its renewal application reflect the
Department’s action permitting American to provide code-share service
with JALways, in addition to JAL, under American’s authority. See
Notice of Action Taken, dated September 30, 2004, Docket OST-1999-4994.

 We have granted Japan Airlines Domestic the necessary underlying
authority.  See Notice of Action Taken dated June 15, 2005, Docket
OST-2005-20519.

 In light of our current policies (see, e.g. Notice of Action Taken
issued January 11, 2005, in Docket OST-2003-15191), we have deleted what
had been condition 3 of the numerical listing of conditions attached to
American’s authority by our action of December 4, 2002, in the present
docket.  Accordingly, the Condition 4 to which American seeks amendment
has been renumbered below as Condition 3.

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