 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on September 15, 2005

   NOTICE OF ACTION TAKEN -- DOCKET OST-2000-6824

________________________________________________________________________
_________________________________

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 11/1/04 for:

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 the United States and Hong Kong, either nonstop or via
intermediate points, and beyond Hong Kong to third country points, and
to integrate this authority with its existing exemption and certificate
authority.  American operates this service pursuant to a code-share
arrangement with Cathay Pacific Airways, Ltd.

Applicant rep:  Carl B. Nelson, Jr.   202-496-5647    DOT Analyst:  Thuy
H. Cooper   202-366-5423

D I S P O S I T I O N

XX  Granted (see below)

The exemption authority granted was effective when taken: September 15,
2005, through 

September 15, 2007.

Action taken by:   Paul L. Gretch, Director	

		    Office of International Aviation

	

XX  The authority granted is consistent with the October 19, 2002
Memorandum of Understanding between the United States and the Hong Kong
Special Administrative Region of 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)

________________________________________________________________________
______

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

	

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 limited-entry route rights that are included in
American’s authority by virtue of the route integration exemption
granted here, but that are not 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.

The authority granted to operate to third countries 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 its holds route integration authority by virtue of either the
present action or other action of the Department. 

Remarks:  The authority for which American requested renewal expired
January 8, 2005, but had been kept in force pursuant to the provisions
of the Administrative Procedure Act, 5 U.S.C. 558(c), as implemented by
14 CFR, pending action on its timely renewal application.

________________________________________________________________________
______

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, 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

