			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on May 18, 2004  

NOTICE OF ACTION TAKEN -- DOCKET OST-2004-17888

________________________________________________________________________
_____________________________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 5/17/04 for:

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

Scheduled foreign air transportation of persons, property, and mail
between the terminal point Chicago, Illinois, and the terminal point
Monterrey, Mexico.  American proposes to use the authority by placing
its “AA” code on the flights of Compania Mexicana de Aviacion, S.A.
de C.V. (Mexicana)  

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, subject to conditions (see below).

The action above was effective when taken:     May 18, 2004,   through  
May 18, 2006      .   

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/Remarks:  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. 
The exemption authority granted is limited to operations conducted on a
code-share basis only.

We acted on this application without awaiting expiration of the 15-day
answer period with the consent of all parties served with the
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 application was consistent with the public
interest; and (3) 						2

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_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.

   We recently granted to American and Mexicana authorizations to
conduct various code-share services, including statements of
authorization to provide the Chicago-Monterrey services proposed here
(see Notice of Action Taken dated April 29, 2004, in Docket
OST-2004-16945).  In Docket OST-2004-16945, however, American/Mexicana
mistakenly listed the Chicago-Monterrey market as a city-pair in which
American already held the requisite underlying authority.  American
states in the instant application that, while American did hold
Chicago-Monterrey certificate authority on Route 560 (Order 2000-5-31,
May 30, 2000), American suspended service on the route in 2001 and,
accordingly, the authority automatically expired 90 days thereafter. 

05/2004

