UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC

Issued by the Department of Transportation on July 22 , 2013

NOTICE OF ACTION TAKEN

-- DOCKET S DOT

- OST

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_______________________________________________________________________________________ This serves as notice to the public of the action s described below, taken by the Department official indicated (no additional confirming order will be issued in this matter).

Applicat ion of AMERICAN AIRLINES, INC. ( American ) filed 7/12/13 for :

XX E xemption for two years under 49 U.S.C. §40109 to provide the following service:

Scheduled foreign air transportation of persons, property, and mail between any point or points in the United States via intermediate points to any point or points in Brazil

.

XX Allocation of seven U.S.

- Brazil weekly combination frequencies to provide daily round

- robin service from Miami to Porto Alegre to Curitiba to Miami

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Applicant rep s : Francis C. Heil (202) 496

- 5642 DOT Analyst: Brett D. Kruger (202) 366

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DISPOSITION

XX Granted exemption authority (subject to conditions, see below )

XX Granted allocation of seven frequencies (subject to conditions, see below)

The above action granting exemption authority was effective when taken: July 22 , 2013

, through July 22

, 2015

.

The above action allocating frequencies was effective when taken: July 22 , 2013

, and will remain in effect indefinitely, subject to the conditions below

.

Action taken by: Paul L. Gretch, Director

O ffice of International Aviation

XX The authority granted is consistent with the aviation agreement between the U nited S tates and Brazil and the Memorandum of Consultations signed on March 19, 2011

.

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: The fr equencies allocated here are subject to restrictions on the Brazilian points that may be

served. We note that these seven frequencies may be used at any point or points in Brazil, except Rio de

Janeiro and Sao Paulo Terminal.

1 American proposes to begin this service on December 19, 2013, using B

- 767 aircraft.Consistent with our standard practice, the frequencies allocated here are subject to our standard 90

- day dormancy condition, wherein any frequency not operated for a period of 90 days (once inaugurated and for any reason other than seasonal use), will be deemed dormant and the alloca tion as to that frequency will expire automatically and the frequency will revert to the Department for reallocation.

In addition, consistent with our practice in awarding frequencies, we will require that American inaugurate service with the frequencies allocated here within 9 0 days of December 19, 2013

, the date o n which

American proposes to commence the subject services

. Failure to inaugurate service with a newly allocated frequency within 9 0 days of December 19, 2013 will result in the unused frequency reverting to the Department.

Remarks: We acted on this application without awaiting expiration of the answer period with the consent of all parties served with a copy of the application.

With our action here, th ere are 17 U.S.

- Brazil combination frequencies available for allocation to U.S. carriers for operations beginning immediately. 2 Also available are 21 U.S.

- Brazil combination frequencies that become available October 1, 2013, and 35 U.S.

- Brazil combination frequencies that become available October 1, 2014. 3

_______________________________________________________________________________________ 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 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 s

. 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 s set forth in this Notice under the Department’s regulations, 14 CFR §385.30, may file their petitions wi thin 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: http://www.regulations.gov

2 Ten of these unallocated frequencies may be used to serve any point or points in Brazil, except Rio de Janeiro and Sao Paulo Terminal; and seven of these unallocated frequencies may be used to serve any point or points in Brazil, except

Sao Paulo Terminal

. 3 With respect to the unallocated frequencies that become available October 1, 2013, 14 may be used to serve any point or points in Brazil, except Rio de Janeiro and Sao Paulo Terminal; and 14 may be used to serve any point or points in Brazil, except Sa o Paulo Terminal. With respect to the unallocated frequencies that become available October 1, 2014, 21 may be used to serve any point or points in Brazil, except Rio de Janeiro and Sao Paulo Terminal; and 14 may be used to serve any point or points in Br azil, except Sao Paulo Terminal.ATTACHMENT

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 CF R 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 requir ements 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. Gover nment 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 flig hts) 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 serv ed; 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 w ith 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.

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