UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC

Issued by the Department of Transportation on May 5

, 201 1

NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 2007

- 0034

__________ _____________________________________________________________________________________________ ____________ __ This serves as notice to the public of the action described below, taken by the Department official indicated (no additional confirming order will b e issued in this matter).

Appl ication of AMERICAN AIRLINES, INC. ( American )

, filed 4/6 /2011 for:

XX Renewal of exemption for two years under 49 U.S.C. 40109 to provide the following services to the extent

allowed under the U.S.

- Argentina Air Services Agreement : 1

Scheduled foreign air transportation of persons, property, and mail between any points in the United States and four (4) points in Argentina, and beyond to points in South America.

Scheduled foreign air transportation of persons, property, an d mail between points in the United States and five (5) additional points in Argentina on a code

- share

- basis only. 2

Scheduled foreign air transportation of persons, property, and mail between points in the United States and five (5) additional points in Argentina on a code

- share

- basis only, in conjunction with a designated airline of Argentina. 3

Application of LAN ARGENTINA S.A. (Lan Argentina)

, filed 5/26/2010 for:

XX Renewal of exemption for one year under 49 U.S.C. 40109 to provide the following se rvices to the extent allowed

under the U.S.

- Argentina Air Services Agreement: 4

Scheduled foreign air transportation of persons, property, and mail between points in Argentina and fourteen (14) points in the United States, and beyond to three (3) points in Canada, four (4) points in Asia (except Japan, China, and the Philippines), eight (8) points in Europe, four (4) points in Mexico, and points in the Caribbean, Central America, and South America.

Scheduled foreign air transportation of persons, property, and mail between points in Argentina and five (5) additional points in the United States on a code

- share basis only

. 5

1 Under Section 1(B) of Annex I to the Agreement, the United States may select four points in Argent ina for direct

- U.S. carrier service, five points in Argentina for code

- share

- only service, and five points in Argentina for code

- share

- only service with a designated airline of Argentina. The United States has selected, at this time, Buenos Aires and Cordo ba as two of the four points for U.S. direct carrier service; Bariloche, Iguazu, Mendoza, Rosario, and Ushuaia as points for

service on a code

- share

- only basis; and Comodor Rivadavia, El Calafate, and Rio Gallegos as three of five points for

service on a c ode

- share

- only basis with a designated carrier of Argentina.

2 American operates these services pursuant to a code

- share arrang e ment with Lan Argentina.

3 Id.

4 Under Section 1(B) of Annex I to the Agreement, the Government of Argentina may select, among other things, 14 points in the U.S. for direct

- Argentina carrier service, five points in the United States for code

- share

- only service, and five points in the United States for code

- share

- only service with a designated airline of the United States. The Arg entine Government has selected, at this time, Atlanta, Boston, Denver, Detroit, Houston, Las Vegas, Los Angeles, Miami, Minneapolis/St. Paul, New York/Newark, Orlando, and Philadelphia for Argentine carrier service; Phoenix and Salt Lake City as

two of fiv e points for service on a code

- share

- only basis; and San Diego, San Francisco, San Juan, Seattle, and Washington, D.C. as points for service on a code

- share

- only basis with a designated U.S. carrier. We note that Lan Argentina holds underlying authority to serve Miami (see Notice of Action Taken dated Ju ne 1 6 , 20 10 , in Docket DOT

- OST

- 2005

- 22140).

5 Lan Argentina operates these services pursuant to a code

- share arrangement with American.Scheduled foreign air transportation of persons, property, and mail between points in Argentina and five (5) additional points in the U nited States on a code

- share basis only, in conjunction with a designated airline of the United States. 6

Applicant rep s : Carl B. Nelson, Jr. (202) 496

- 5647 (American) Marshall S. Sinick (202) 626

- 6651 (Lan Argentina)

DOT Analyst: Brett D. Krug er (2 02) 366

- 8025

D I S P O S I T I O N

XX Granted (subject to conditions, see below)

The above action granting exemption authority to American was effective when taken : May 5

, 201 1 , through May 5

, 201 3

.

The above action granting exemption authority to Lan Argentina was effective when taken: May 5 , 2011 , through May 5 , 2012

.

Action taken by: Paul L. Gretch, Director

Office of International Aviation

XX The authority granted is consist ent with the aviation agreement between the United St ates Argentina

.

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 U.S. carrier exemption conditions (att ached as Appendix A )

XX Standard Foreign Carrier Exemption Conditions (attached as Appendix B)

On the basis of data officially noticeable under Rule 24(g) of the Department's regulations, we found the applicant s qualified to provide the exemption serv ices 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 a uthority 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 dat e 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: www.regulations.gov

6 Id.

### Appendix A

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 se rved;

(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 minimu m 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 Warsa w Convention liability limits and defenses;

(6) Comply with all applicable requirements of the Federal Aviation Administration, the Transportation Security Administration, and with all applicable U.S. Government requirements concerning security,

includin g, 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 P rincipal Security Inspector (PSI) to advise the PSI 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;

(7) Comply with such other reasonable term s, 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 a uthority granted shall be effective only during the period when the holder is in compliance with the conditions imposed above.

1/2008

### Appendix B

Foreign Carrier Exemption Conditions

In the conduct of the operations authorized, the fo reign carrier applicant(s) shall:

(1) Not conduct any operations unless it holds a currently effective authorization from its homeland for such operations, and it has filed a copy of such authorization with the Department;

(2) Comply with all applicabl e requirements of the Federal Aviation Administration, the Transportation Security Administration, and with all applicable U.S. Government requirements concerning security, including, but not limited to, 14 CFR Parts 129, 91, and 36 and 49 CFR Part 1546 or 1550, as applicable. To assure compliance with all applicable U.S. Government requirements concerning security, the holder shall, before commencing any new service (including charter flights) from a foreign airport that would be the holder’s last point o f departure for the United States, contact its International Industry Representative (IIR) (formerly referred to as International Principal Security Inspector) to advise the IIR of its plans and to find out whether the Transportation Security Administratio n has determined that security is adequate to allow such airport(s) to be served;

(3) Comply with the requirements for minimum insurance coverage contained in 14 CFR Part 205, and, prior to the commencement of any operations under this authority, file ev idence of such coverage, in the form of a completed OST Form 6411, with the Federal Aviation Administration’s Program Management Branch (AFS

- 260), Flight Standards Service (any changes to, or termination of, insurance also shall be filed with that office);

(4) Not operate aircraft under this authority unless it complies with operational safety requirements at least equivalent to Annex 6 of the Chicago Convention;

(5) Conform to the airworthiness and airman competency requirements of its Government for i nternational air services;

(6) Except as specifically exempted or otherwise provided for in a Department Order, comply with the requirements of 14 CFR Part 203, concerning waiver of Warsaw Convention liability limits and defenses;

(7) Agree that operat ions under this authority constitute a waiver of sovereign immunity, for the purposes of 28 U.S.C. 1605(a), but only with respect to those actions or proceedings instituted against it in any court or other tribunal in the United States that are: (a) based on its operations in international air transportation that, according to the contract of carriage, include a point in the United States as a point of origin, point of destination, or agreed stopping place, or for which the contract of carriage was purchas ed in the United States; or (b) based on a claim under any international agreement or treaty cognizable in any court or other tribunal of the United States. In this condition, the term "international air transportation" means "international transportatio n" as defined by the Warsaw Convention, except that all States shall be considered to be High Contracting Parties for the purpose of this definition;

(8) Except as specifically authorized by the Department, originate or terminate all flights to/from the United States in its homeland;

(9) Comply with the requirements of 14 CFR Part 217, concerning the reporting of scheduled, nonscheduled, and charter data;

(10) If charter operations are authorized, except as otherwise provided in the applicable aviation agreement, comply with the Department's rules governing charters (including 14 CFR Parts 212 and 380); and

(11) Comply with such other reasonable terms, conditions, and limitations required by the public interest as may be prescribed by the Department, w ith all applicable orders or regulations of other U.S. agencies and courts, and with all applicable laws of the United States.

This authority shall not be effective during any period when the holder is not in compliance with the conditions imposed above. Moreover, this authority cannot be sold or otherwise transferred without explicit Department approval

under Title 49 of the U.S. Code.

12/2007