	                    UNITED STATES OF AMERICA

            DEPARTMENT OF TRANSPORTATION

                    OFFICE OF THE SECRETARY

                             WASHINGTON, DC

                           	Issued by the Department of Transportation
on December 10, 2004

		                NOTICE OF ACTION TAKEN -- DOCKET OST-99-5007

________________________________________________________________________
_________________________________

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   11/19/04  for:

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

Scheduled foreign air transportation of persons, property, and mail
between points in the United States, via points in Fiji and New Zealand,
and Sydney, Melbourne, Brisbane, Cairns, and Perth, Australia, and
beyond to Adelaide, Australia and to points in New Zealand.  American
also requests the right to integrate this authority with its existing
U.S.-Australia/New Zealand/Fiji certificates and exemptions.  American
intends to operate this service under a code-share arrangement with
Qantas Airways Limited.

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

D I S P O S I T I O N

XX  Granted  (subject to conditions, see below)

The above action was effective when taken:   December 10, 2004, through
December 10, 2006.

Action taken by:   Paul L. Gretch, Director	

		    Office of International Aviation	

XX  The authority granted is consistent with the aviation agreements
between the United States and Australia, the United States and Fiji, and
the United States and New Zealand.

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

	      XX  Standard Exemption Conditions (attached)

	      XX  Statement of Authorization approving the referenced
American/Qantas code-share 

	              operations dated February 10, 1999, and the conditions
therein

__________________________

Conditions: The route integration authority requested is granted 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.  Furthermore, (a) nothing in the award
of the route integration authority requested 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
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 

(See Reverse Side)

2

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 any preference for
American in a competitive carrier selection proceeding to determine
which carrier(s) should be entitled to use the authority at issue.

________________________________________________________________________
______________

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 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

Attachment 

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 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

 We note that the aviation agreement between the United States and
Australia authorizes local passenger traffic rights only between certain
Australian points and New Zealand.

