			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on June 2, 2006

NOTICE OF ACTION TAKEN -- DOCKET OST-2004-16945

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).

Joint Application of COMPANIA MEXICANA DE AVIACION, S.A. DE C.V.
(MEXICANA) AND AMERICAN AIRLINES, INC. (AMERICAN), filed 4/17/06 for:

XX  Exemption for American under 49 U.S.C. 40109 to provide the
following service:

Scheduled foreign air transportation of persons, property, and mail
between Fresno, California, and Guadalajara, Mexico.  American intends
to operate this service pursuant to a code-share arrangement with
Mexicana, whereby the “AA*” designator code will be placed on
flights operated by Mexicana in this market.  The joint applicants
request that the exemption authority be granted for a period
co-extensive with the exemptions granted previously to American in the
instant docket (through March 22, 2008).

XX  Amended statement of authorization for Mexicana under 14 CFR Part
212 to:

Display American’s “AA*” designator code on flights operated by
Mexicana between Fresno, California, and Guadalajara, Mexico.

Applicant reps: Carl B. Nelson, Jr. (American) (202) 496-5647 and
Charles F. Donley II (Mexicana) (202) 626-6840   

DOT Analyst:   Linda L. Lundell (202) 366-2336

  							

D I S P O S I T I O N

XX  Granted (subject to conditions, see below)

The above action granting new exemption authority to American was
effective when taken:  

June 2, 2006, through March 22, 2008.

The above action granting an amended statement of authorization to
Mexicana was effective when taken: June 2, 2006, and will remain in
effect indefinitely, subject to the conditions below.

				

Action taken by:   Paul L. Gretch, Director	

		      Office of International Aviation

XX  The 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   American’s certificates of public convenience and necessity

	XX   Standard exemption conditions (attached)

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, and is limited to code-share services only.  

The Statement of Authorization granted to Mexicana is subject to the
following conditions:

(a) The statement of authorization will remain in effect only as long as
American and Mexicana continue to hold the underlying authority to
operate the code-share services at issue, and the code-share agreement
providing for the code-share operations remains in effect.

(b) American and/or Mexicana must promptly notify the Department (Office
of International Aviation) if the code-share agreement is no longer
effective or if the carriers decide to cease operating all or a portion
of the approved code-share services. (Such notice should be filed in
Docket OST-2004-16945.)

(c) The code-sharing operations conducted under this authority must
comply with 14 CFR 257 and with any amendment to the Department’s
regulations concerning code-share arrangements that may be adopted. 
Notwithstanding any provisions in the contract between the carriers, our
approval here is expressly conditioned upon the requirements that the
subject foreign air transportation be sold in the name of the carrier
holding out such service in computer reservation systems and elsewhere;
that the carrier selling such transportation (i.e., the carrier shown on
the ticket) accept responsibility for the entirety of the code-share
journey for all obligations established in its contract of carriage with
the passenger; and that the passenger liability of the operating carrier
be unaffected.

(d) The authority granted here is specifically conditioned so that
neither American nor Mexicana shall give any force or effect to any
contractual provisions between themselves that are contrary to these
conditions.  

________________________________________________________________________
___

On the basis of data officially noticeable under Rule 24(g) of the
Department's regulations, we found American qualified to provide the
exemption 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. 
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:

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

APPENDIX 

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

 Mexicana holds Fresno-Guadalajara operating authority pursuant to an
exemption granted in Docket OST-2004-17492, last renewed June 9, 2005. 
(Department action on its timely renewal application is pending.)  

 We expect this notification to be received within 10 days of such
non-effectiveness or of such decision.

