			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on August 10, 2004  

NOTICE OF ACTION TAKEN -- DOCKET OST-2002-13389

________________________________________________________________________
_____________________________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 7/12/04 for:

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

Scheduled foreign air transportation of persons, property, and mail
between (1) the terminal point Boston, Massachusetts, and the terminal
point Cancun, Mexico; (2) the terminal point Chicago, Illinois, and the
terminal point Puerto Vallarta, Mexico, and (3) the terminal point
Dallas/Ft. Worth, Texas, and the terminal point Cozumel, Mexico. 
American states that it will continue to serve the markets listed on a
seasonal basis.  American requests renewal of the subject authority for
an indefinite duration.  

Applicant rep:   Carl B. Nelson, Jr. (202) 496-5647    DOT Analyst: 
Linda L. Lundell (202) 366-2336

D I S P O S I T I O N

XX  Granted renewal of exemption authority for two years, subject to
conditions (see below).

XX  Dismissed request for longer term authority (see below).

The action above to renew the exemption authority was effective when
taken: August 10, 2004, 

through   August 10, 2006 .

The action above to dismiss the request for longer term authority was
effective when taken:   August 10, 2004   .  

Action taken by:     Paul L. Gretch, Director	

  		        Office of International Aviation	

XX  Authority granted is consistent with the aviation agreement between
the United States and Mexico.

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)

________________________________________________________________________
____________________Special Conditions:  The U.S.-Mexico exemption
authority granted is subject to the dormancy notice requirements set
forth in condition 7 of Appendix A of Order 88-10-2.  

Remarks:  In its application, American requested that the subject
authority be renewed for an indefinite period.  Consistent with our
standard practice for this type of application, we renewed American’s
authority for two years and dismissed its request for longer-term
authority.   

________________________________________________________________________
____________________

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.

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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:

  HYPERLINK "http://dms.dot.gov/reports_aviation.asp" 
http://dms.dot.gov/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

