	

                    UNITED STATES OF AMERICA

            DEPARTMENT OF TRANSPORTATION

                    OFFICE OF THE SECRETARY

                             WASHINGTON, DC



Issued by the Department of Transportation on October 28, 2004

NOTICE OF ACTION TAKEN -- DOCKETS OST-2004-19441 and OST-2004-19450  

________________________________________________________________________

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).

Applications of   American Airlines, Inc.  filed  10/19/04 for:

DOCKET OST-04-19441

XX Exemption pursuant to 49 U.S.C. §40109 to provide the following
services:

Scheduled foreign air transportation of persons, property and mail
between Chicago and Nagoya, Japan.

XX Allocation of seven-weekly U.S.-Japan combination frequencies to
provide scheduled service between Chicago and Nagoya, Japan.

DOCKET OST-04-19450 

XX  Allocation of seven-weekly U.S.-Japan combination frequencies to
provide scheduled service between Dallas/Ft. Worth and Osaka, Japan. 

.

Applicant rep:  Carl B. Nelson  (202) 496-5647  DOT Analyst: Gerald
Caolo   (202) 366-2406

D I S P O SI T I O N

XX  Granted  (subject to conditions, see below)

The above action granting the exempton was effective when taken: October
28, 2004 ,  through October 28, 2006

The frequency allocations were granted:  October 28, 2004, and will
remain in effect indefinitely, provided that American continues to hold
the necessary underlying authority to serve the Chicago-Nagoya and
Dallas/Ft. Worth-Osaka markets.

Action taken by:   Paul L. Gretch, Director	

		    Office of International Aviation	

XX   The authority granted here is consistent with the 1998 Memorandum
of Understanding between the United States and Japan.

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)

___________________________________________

Conditions:  Consistent with our standard practice, the frequency
allocations granted are subject to the condition that if the frequency
is not used for a period of 90 days, the allocation will expire
automatically and the frequency will revert to the Department for
reallocation.  The respective 90-day dormancy periods will begin on
April 3, 2005 for the Chicago-Nagoya market, and November 1, 2005, for
the Dallas/Ft. Worth-Osaka, market, the dates American proposes to
inaugurate operations with these frequencies.

Remarks:  We acted on these applications without awaiting expiration of
the 15-day answer period with the consent of all parties served.

________________________________________________________________________
______________

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 order 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 

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 holds certificate authority to serve the Dallas/Ft.
Worth-Osaka market.  See Order 98-5-17, May 7, 1998.  This authority has
been kept in force under 14 CFR Part 377 since American filed a timely
renewal application in Docket OST-98-3419.

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