UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on February 28, 2013

NOTICE OF ACTION TAKEN -- DOCKETS DOT-OST-2009-0337 and DOT-OST-2013-0022 _____________________________________________________________________________________________________________________

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).

1. Docket DOT-OST-2009-0337

Application of AMERICAN AIRLINES, INC. (American), filed 2/1/13 for:

XX Amendment of exemption under 49 U.S.C. 40109 to the extent necessary to permit American to display its 

designator code on flights operated by its foreign code-share partners on the following services:

Scheduled foreign air transportation of persons, property, and mail between points in the United States and 

points worldwide on a third-country code-share basis pursuant to blanket code-sharing statements of 

authorization previously approved by the Department. 1 2

2. Docket DOT-OST-2013-0022

Joint Application of AMERICAN3 and MALAYSIA AIRLINES (MAS), filed 2/1/13 for:

XX Statements of authorization under 14 CFR Part 212 in order to engage in the following code-share services:

(A) American requests a statement of authorization permitting it to display MAS’s “MH” designator code 

in conjunction with foreign air transportation of persons, property, and mail on flights operated by 

American or American Eagle between (1) points in the United States; (2) points in the United States and 

points in Malaysia (either nonstop or via intermediate points in third countries); (3) points in the United 

States and points in third countries; and (4) points in Malaysia and points in third countries.

(B) MAS requests a statement of authorization permitting it to display American’s “AA” designator code in 

conjunction with foreign air transportation of persons, property, and mail on flights operated by MAS 

between (1) points in Malaysia; (2) points in Malaysia and points in the United States (either nonstop or 

via intermediate points in third countries); (3) points in Malaysia and points in third countries; and (4) 

points in the United States and points in third countries.

Applicant reps: Charles J. Simpson, Jr. and David M. Endersbee (202) 973-7926 (MAS), and 

Francis C. Heil (202) 496-5642 (American) 

 1 American’s foreign code-share partners are: Air Pacific Limited (Air Pacific); British Airways, PLC (British Airways); Cathay 

Pacific Airways Limited (Cathay Pacific); Etihad Airways PJSC (Etihad); Finnair Oyj (Finnair); Gulf Air Company (Gulf Air);

Hainan Airlines Co., Limited (Hainan); Japan Airlines International Co., Ltd. (JAL); Jet Airways (India) Ltd. (Jet Airways); Jetstar 

Airways Pty. Limited (Jetstar); Kingfisher Airlines Limited (Kingfisher); Lan Airlines S.A. (Lan); Lan Argentina, S.A. (Lan 

Argentina); Aerolane, Lineas Aereas Nacionales Del Ecuador S.A. d/b/a Lan Ecuador (Lan Ecuador); Lan Peru, S.A. (Lan Peru);

Compania Mexicana de Aviacion, S.A. de C.V. (Mexicana); Qantas Airways Limited (Qantas); Qatar Airways QCSC (Qatar);

Alia – The Royal Jordanian Airlines (Royal Jordanian); and WestJet. We note that, with respect to the display of American’s code 

on Gulf Air flights, these operations are suspended until the Government of Bahrain attains a Category I rating under the FAA’s 

International Aviation Safety Assessment (IASA) program. 2 American requests that its blanket code-share exemption authority be amended to the extent necessary to permit it to also place its 

designator code on flights operated by Malaysia Airlines (MAS). 3 American also applies on behalf of its affiliated carriers American Eagle Airlines, Inc. and Executive Airlines, Inc. d/b/a 

American Eagle (together “American Eagle”).
DOT Analyst: Brett D. Kruger (202) 366-8025

D I S P O S I T I O N

XX Granted (subject to conditions, see below)

The above action granting amended exemption authority is effective when taken: February 28, 2013, through

February 28, 2015. 

The above action granting blanket statements of authorization is effective February 28, 2013, and will remain in 

effect indefinitely, subject to conditions.

Action taken by: Paul L. Gretch, Director

 Office of International Aviation

XX The authority granted is consistent with the U.S.-Malaysia Air Transport Agreement.

Except to the extent exempted or waived, this authority is subject to the terms, conditions, and limitations indicated:

XX Holders’ certificates of public convenience and necessity

XX Standard U.S. carrier exemption conditions (attached as Appendix A)

XX Conditions for Statements of Authorization (attached as Appendix B)

XX Conditions attached to the relevant previously issued blanket statements of authorization4

Remarks/Conditions: We note that American has conducted a safety audit of MAS under the Department’s Code 

Share Safety Program, and the FAA has advised that it has reviewed the relevant audit report and found it to be 

acceptable.

The exemption authority granted here is for operations with the foreign code-share partners named above, to include

MAS. Should American and any additional code-share partner be granted statements of authorization, American will 

need to apply for exemption authority to the extent necessary to permit American to display its code on flights 

operated by the newly authorized code-share partner.5

On the basis of data officially noticeable under Rule 24(g) of the Department's regulations, we found the applicant

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.

 4 See Notices of Action Taken dated November 30, 2011, in Docket DOT-OST-2011-0197 (American-Air Pacific); 

Order 2010-7-8 (American-British Airways, PLC); January 8, 2003, in Docket DOT-OST-2000-6824 (American-Cathay Pacific);

July 24, 2009, in Docket DOT-OST-2009-0154 (American-Etihad); January 7, 2000, in Docket DOT-OST-1999-6544

(American-Finnair); August 4, 2008, in Docket DOT-OST-2008-0195 (American-Gulf Air); February 15, 2012, in Docket DOTOST-2011-0228 (American-Hainan Airlines); February 18, 1999, in Docket DOT-OST-1999-4994 (American-JAL); January 7, 

2008, in Docket DOT-OST-2007-0078 (American-Jet Airways); October 29, 2010, in Docket DOT-OST-2010-0265 (AmericanJetstar); March 8, 2011, in Docket DOT-OST-2010-0288 (American-Kingfisher); January 7, 2000, in Docket DOT-OST-1999-

6546 (American-Lan); June 26, 2009, in Docket DOT-OST-2007-0034 (American-Lan Argentina); December 13, 2011, in Docket 

DOT-OST-2011-0210 (Lan Ecuador); February 16, 2007, in Docket DOT-OST-2004-19965 (American-Lan Peru); April 29, 2004, 

in Docket DOT-OST-2004-16945 (American-Mexicana); May 23, 2008, in Docket DOT-OST-2008-0138 (American-Qantas);

February 20, 2013, in Docket DOT-OST-2013-0007 (American-Qatar); March 23, 2007, in Docket DOT-OST-2006-26716 

(American-Royal Jordanian); and March 10, 2011, in Docket DOT-OST-2011-0040 (American-WestJet). 5 American will need to have conducted code-share safety audits of its foreign partners prior to receipt of authority for such codeshare services.
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:

www.regulations.gov
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 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, the Transportation 

Security 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 Principal 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 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.

 

1/2008
Appendix B

The code-share operations authorized here are subject to the following conditions:

(a) The statements of authorization will remain in effect only as long as (i) American and MAS continue to hold the 

necessary underlying authority to operate the code-share services at issue, and (ii) the code-share agreement providing 

for the code-share operations remains in effect.

(b) American and/or MAS, as appropriate, must notify the Department no later than 30 days before they begin any new 

code-share service under the code-share services authorized here. Such notice shall identify the market(s) to be served, 

which carrier will be operating the aircraft in the code-share market added, and the date on which the service will 

begin. Such notice should be filed in Docket DOT-OST-2013-0022.

6

(c) American and/or MAS, as appropriate, must promptly notify the Department if the code-share agreement providing 

for the code-share operations 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 DOT-OST-2013-0022.

7

(d) The code-sharing operations conducted under this authority must comply with 14 CFR 257 and with any 

amendments 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 

the 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; that the passenger liability of the operating carrier be unaffected; and that the operating 

carrier shall not permit the code of its U.S. code-sharing partner to be carried on any flight that enters, departs, or 

transits the airspace of any area for whose airspace the Federal Aviation Administration has issued a flight prohibition.

(e) The authority to operate to third countries is subject to the condition that any service provided under the statement 

of authorization shall be consistent with all applicable agreements between the United States and the foreign countries 

involved. Furthermore, (i) nothing in the award of these statements of authorization should be construed as conferring 

upon American rights (including code-share, fifth freedom intermediate and/or beyond rights) to serve markets where 

U.S. carrier entry is limited unless American 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 (ii) should there be a request by any carrier to use the limited-entry route rights 

that are included in the authority of American by virtue of the statements of authorization granted here, but that are not 

then being used by American, the holding of such authority 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.8

(f) The authority granted here is specifically conditioned so that neither American nor MAS shall give any force or 

effect to any contractual provisions between themselves that are contrary to these conditions.

We may amend, modify, or revoke the authority granted at any time without hearing at our discretion.

 6 See Appendix C for list of initial non open-skies code-share points. Pursuant to the Department’s February 9, 2009, Notice in the 

Matter of Blanket Notification of Codeshare Service to Open-Skies Partners and Points, the joint applicants provided notice of 

their intent to engage in reciprocal code-share services (1) between points in the United States and points in Malaysia (on a 

nonstop basis and intermediate routings via open skies points); (2) between points in the United States; (3) between points in 

Malaysia; (4) beyond Malaysia to open skies points; and (5) beyond the United States to open skies points.

7 We expect this notification to be received within ten (10) days after such non-effectiveness or of such decision. 8 The notice in paragraph (b) above can be used for this notification. 
Appendix C

Initial List of Non Open-Skies Code-Share Points

Code-Share Route Operating Carrier

Kuala Lumpur, Malaysia-Phnom Penh, Cambodia MAS

Kuala Lumpur, Malaysia-Siem Reap, Cambodia MAS

Kuala Lumpur, Malaysia-Ho Chi Minh City, Vietnam MAS

Kuala Lumpur, Malaysia-Hong Kong MAS