 

			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on October 2, 2002

NOTICE OF ACTION TAKEN -- DOCKET OST-2002-13371

________________________________________________________________________
________________________________________________________

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).

Applicant:  Transporte Aéreo S.A. d/b/a LanExpress				Date Filed: 
September 16, 2002

Relief requested:

Exemption from 49 U.S.C. § 41301 to the extent necessary to engage in
scheduled foreign air transportation of persons, property and mail
between points in Chile and points in the United States, via
intermediate points, in conjunction with a code-share with American
Airlines, Inc.

Statement of Authorization under 14 CFR Part 212 to permit Transporte
Aéreo S.A. to display the designator code of American Airlines, Inc.
(AA) on flights operated by Transporte Aéreo S.A. between points in
Chile, for the carriage of American’s U.S.-Chile traffic. 

Date and citation of last action:  New authority

Applicant representative:  Charles J. Simpson, Jr. (202) 298-8660 & Juan
Carlos Mencio (305) 869-2993

Responsive pleadings:  None filed

DISPOSITION

Action:  Approved								Action date:  October 2, 2002

(We acted on this application without awaiting expiration of the 15-day
answer period with the consent of all parties served.)

Effective dates of the exemption authority granted:  October 2, 2002
through October 2, 2004

The statement of authorization granted was effective October 2, 2002,
and will remain in effect indefinitely, subject to the conditions listed
below:

Basis for approval (bilateral agreement/reciprocity):  The Air Transport
Agreement between the United States and Chile

Special conditions/Partial grant/Denial basis/Remarks:  Based on the
record in this case, we found that Transporte Aéreo S.A. is financially
and operationally qualified to perform the services authorized above. 
The applicant is substantially owned and effectively controlled by two
Chilean corporations.  Specifically, Transporte Aéreo S.A. is owned by
Lan Chile Cargo S.A. (99 shares) and Inversiones Lan S.A. (1 share). 
The carrier is properly licensed by the Government of Chile to perform
the proposed services.  

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

X Standard exemption conditions (attached) 

X Conditions set forth in the Statements of Authorization granted Lan
Chile, S.A. and American Airlines, Inc. dated January 7, 2000, in Docket
OST-99-6546 

Action taken by:   Paul L. Gretch, Director	

		      Office of International Aviation	

________________________________________________________________________
________________________________________________________

Under authority assigned by the Department in its regulations, 14 CFR
Part 385, we found that (1) the applicant was qualified to perform the
proposed operations; (2) our action was consistent with Department
policy; (3) grant of the authority was consistent with the public
interest; and (4) 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/deferred/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 

Attachment A

FOREIGN AIR CARRIER CONDITIONS OF AUTHORITY

In the conduct of the operations authorized, the holder shall:

(1)  Not conduct any operations unless it holds a currently effective
authorization from its homeland for such operations, and it has filed a
copy of such authorization with the Department;

(2)  Comply with all applicable requirements of the Federal Aviation
Administration, including, but not limited to, 14 CFR Parts 129, 91, and
36;

(3)  Comply with the requirements for minimum insurance coverage
contained in 14 CFR Part 205, and, prior to the commencement of any
operations under this authority, file evidence of such coverage, in the
form of a completed OST Form 6411, with the Federal Aviation
Administration’s Program Management Branch (AFS-260), Flight Standards
Service (any changes to, or termination of, insurance also shall be
filed with that office);

(4)  Not operate aircraft under this authority unless it complies with
operational safety requirements at least equivalent to Annex 6 of the
Chicago Convention;

(5)  Conform to the airworthiness and airman competency requirements of
its Government for international air services;

(6)  Except as specifically exempted or otherwise provided for in a
Department Order, comply with the requirements of 14 CFR Part 203,
concerning waiver of Warsaw Convention liability limits and defenses;

(7)  Agree that operations under this authority constitute a waiver of
sovereign immunity, for the purposes of 28 U.S.C. 1605(a), but only with
respect to those actions or proceedings instituted against it in any
court or other tribunal in the United States that are:

   (a)  based on its operations in international air transportation
that, according to the contract of carriage, include a point in the
United States as a point of origin, point of destination, or agreed
stopping place, or for which the contract of carriage was purchased in
the United States; or

   (b)  based on a claim under any international agreement or treaty
cognizable in any court or other tribunal of the United States.

In this condition, the term "international air transportation" means
"international transportation" as defined by the Warsaw Convention,
except that all States shall be considered to be High Contracting
Parties for the purpose of this definition;

(8)  Except as specifically authorized by the Department, originate or
terminate all flights to/from the United States in its homeland;

(9)  Comply with the requirements of 14 CFR Part 217, concerning the
reporting of scheduled, nonscheduled, and charter data;

(10)  If charter operations are authorized, comply  (except as otherwise
provided in the applicable bilateral agreement) with the Department's
rules governing charters (including 14 CFR Parts 212 and 380); and

(11)  Comply with such other reasonable terms, conditions, and
limitations required by the public interest as may be prescribed by the
Department, with all applicable orders or regulations of other U.S.
agencies and courts, and with all applicable laws of the United States.

 											

U.S. Department of Transportation	

Office of the Secretary of Transportation								        (41301/40109)
9/98

  The applicant states that initially, American’s code will be carried
on Transporte Aéreo S.A. flights between Santiago and Concepción,
Puerto Montt, Punta Arenas, Antofagasta and Iquique.  American’s
service beyond Santiago will be operated on a blind-sector basis with no
local traffic carried under American’s code between points in Chile. 
American holds Department certificate authority to provide service
between the United States and Chile.

See Order 96-5-9.

  Lan Chile Cargo S.A. is 99.8% owned by Lan Chile, S.A., a foreign air
carrier of Chile.

  Any 30-day notice letter informing the Department of new code-share
services under the blanket code-share authority granted
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