 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on February 16, 2005

      NOTICE OF ACTION TAKEN -- DOCKET OST-2003-14319

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____________________________________

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   1/10/05  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 the United States and a point or points in
Serbia and Montenegro (formerly Yugoslavia), and to integrate this
authority with American’s existing certificate and exemption
authority.  American operates this service pursuant to a code-share
arrangement with Swiss International Air Lines Ltd d/b/a Swiss. 
American has requested the authority be renewed for an indefinite
duration.

 

Applicant rep:   Carl B. Nelson, Jr.   (202) 496-5647   DOT Analyst: 
Sylvia Moore   (202) 366-6519

D I S P O S I T I O N

XX  Granted, in part (subject to conditions, see below)

XX  Balanced dismissed (i.e., for indefinite duration, see below)

The above action was effective when taken:   February 16, 2005, through 
 February 16, 2007

Action taken by:   Paul L. Gretch, Director	

		    Office of International Aviation	

XX  The authority granted is consistent with the overall state of
aviation relations between the United States and Serbia and Montenegro.

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)

	    XX  Statement of authorization approving American/Swiss code-share
operations

	           dated April 23, 2002, and conditions therein

Conditions:  The route integration authority granted is subject to the
condition that such operations are consistent with the applicable
bilateral aviation agreements.  Furthermore, (a) nothing in the award of
the route integration authority requested should be construed as
conferring upon American additional rights (including fifth-freedom
intermediate and/or beyond rights) to serve markets where U.S. carrier
entry is 

(See Reverse Side)

2

limited unless American first notifies the Department 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
authority 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.  

Remarks:  Consistent with our standard practice for this type of
application, we granted American’s exemption for a period of two years
and dismissed its request for longer-term authority.

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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; and (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 is not seeking renewal of its exemption authority to serve
Macedonia, previously granted in this docket on March 13, 2003.  Swiss
terminated service to Skopje, Macedonia on October 26, 2003.  (See
Notice of termination dated August 1, 2003, in Docket OST-2002-12001.)

