UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on October 1, 2010

NOTICE OF ACTION TAKEN -- DOCKETS DOT-OST-2010-0192 DOT-OST-2010-0201

DOT-OST-2010-0207 DOT-OST-2010-0220

DOT-OST-2010-0221

_________________________________________________________________________________________________________________________ This serves as notice to the public of the action d escribed below, taken by the Department official indicated (no additional confirming orde r will be issued in this matter).

Docket DOT-OST-2010-0201

Application of NIKI LUFTFAHRT GMBH (NIKI) filed 8/6/10 for:

XX Exemption authority under 49 USC §40109 and a statement of authorization under 14 CFR 212 to permit NIKI to display the designator code of Americ an on all flights it operates within Europe on behalf

of Air Berlin. 1

Dockets DOT-OST-2010-0207, DOT-OST-2010-0220 and DOT-OST-2010-0221

Applications of LUFTFAHRTGESELLSCHAFT WALTER GMBH (LGW), GERMANIA FLUGGESELLSCHAFT MBH (Germania) and TUIFLY GMBH (TUIfly) filed 8/17/10 and 9/2/10, respectively for:

XX Exemption authority under 49 USC §40109 and a statement of authorization under 14 CFR 212 to permit LGW, Germania, and TUIfly to display the desi gnator code of American on all flights each carrier operates within Europe as wet-lessors of Air Berlin. 2 The carriers request exemption authority to conduct the following scheduled and charter services:

(a) foreign scheduled and charter air transportation of persons, property and mail from any point or points behind any Member State(s) of the European Union, via any point or points in any Member State(s) and via intermediate points to any point or points in the United States and beyond;

(b) foreign scheduled and charter air transportation of persons, property and mail between any point or points in the United States and any point or points in any member of the European Common Aviation
Area;

(c) foreign scheduled and charter cargo air transportati on between any point or points in the United States and any other point or points;

(d) other charters pursuant to the prior approval requi rements set forth in the Department’s regulations governing charters; and

(e) transportation authorized by any additional rights made available to European Community carriers in

the future.

1 The applicant states that it will neither sell seats in its ow n name for travel to or from the United States, nor operate aircraft to any U.S. point.

2 Ibid

.Docket DOT-OST-2010-0192

Joint Application of AMERICAN AIRLINES, INC. (American) 3 and AIR BERLIN PLC & CO. LUFTVERKEHRS KG (Air Berlin) 4 filed 7/28/10 and supplemented on 9/27/10 and 9/28/10 for:

XX Statement of authorization for blanket code-sha re authority for American under 14 CFR Part 212 to: 5

Display Air Berlin’s AB* designator code in conjunc tion with foreign air transportation of persons, property, and mail on flights operated by America n or American Eagle between (1) points in the United States; (2) points in the United States and points in Germany (either nonstop or via intermediate points in third count ries); (3) points in the United States and points in third countries; and (4) points in Germany and points in third countries.

XX Statement of authorization for blanket code-share authority for Air Berlin under 14 CFR Part 212 to: 6

Display American’s AA* designator code in conjunc tion with foreign air transportation of persons, property, and mail on flights operated by Air Berlin and its six affiliates and authorized wet-lessors between (1) points in Germany; (2) points in Germany and points in the United States (either nonstop or via intermediate points in third co untries); (3) points in Germany and points third countries; and (4) points in the United States and points in third countries.

Applicant reps: Carl B. Nelson (202) 496-5647 (American) DOT Analyst: Thuy H. Cooper (202) 366-5423 Evelyn D. Sahr (202) 659-6622 (Air Berlin) Shelley A. Hession (202) 659-6600 (NIKI , LGW, Germania, TUIfly)

D I S P O S I T I O N

XX Granted requests of NIKI, LWG, Germania, a nd TUIfly for exemption authority in Dockets DOT-OST-2010-0201, DOT-OST-2010-0207, DOT-OST-2010-0220, and DOT-OST-2010-0221, respectively (subject to conditions, see below)(see remarks below)

XX Granted request of American (and its affiliates) for blanket statement of authorization in

Docket DOT-OST-2010-0192 (subject to conditions, see below) 7

XX Granted request of Air Berlin (and its affiliat es and authorized wet-lessors Belair, Germania, LTU, LGW, NIKI and TUIfly) for blanket statement of authorization in Docket

DOT-OST-2010-0192 (subject to conditions, see below) 8

XX Dismissed, as moot, requests of LGW, NIKI, Germania, and TUIfly for statements of authorization in Dockets DOT-OST-2010-0201, DOT-OST-2010-0207, DOT-OST-2010-0220, and DOT-OST-2010-0221, respectively 9

3 The joint applicants include American affiliates American Eagle Airlines, Inc., and Executive Airlines, Inc. d/b/a American Eagle.

4 The joint applicants include Air Berlin affiliates and auth orized wet-lessors Belair Air lines AG (Belair), Germania Fluggesellschaft mbH (Germania), LGW Luftfahrtges ellschaft Walter mbH (LGW ), LTU LufttransportUnternehmen GmbH (LTU), NIKI Luftfahrt GmbH (NIKI), and TUIfly GmbH (TUIfly).

5 We note that American cu rrently holds economic authority to serve between the United States and Germany ( see Order 2007-4-2).

6 We note that Air Berlin currently holds economic au thority to serve between Germ any and the United States ( see Order 2008-6-24). Two of the six Air Berlin affiliates or authorized wet- lessors also hold economic authority: Belair and LTU ( see Order 2008-8-27 and Order 97-8-6, respectively). NIKI, LGW, Germania, and TUIfly have each requested exemption author ity in Dockets DOT-OST-2010 -0201, DOT-OS T-2010-0207, DOT-OST-2010-0220, and DOT-OST-2010-0221, respectively.

7 See Attachment A for list of initial code-share routes.

8 Ibid

. 9 We are granting to Germania, LGW, NIKI, and TUIfly st atements of authorization in Docket DOT-OST-2010-0192.The above action granting exemption authorit y to Germania (Docket DOT-OST-2010-0220), LGW (Docket DOT-OST-2010-0207), NIKI (Doc ket DOT-OST-2010-0201), and TUIfly (Docket DOT-OST-2010-0221), was effective when taken: October 1, 2010 , through October 1, 2012

.

The above action granting statements of authorization to American (and its affiliates) and Air Berlin (and its affiliates and authorized wet-lessors) in Docket DOT-OST-2010-0192 was effective when taken: October 1, 2010 , and will remain in effect indefinite ly, subject to the conditions below.

The above action dismissing the requests of Ge rmania (Docket DOT-O ST-2010-0220), LGW (Docket DOT-OST-2010-0207), NIKI (Docket DOT-OST-2010- 0201), and TUIfly (Docket DOT-OST-2010-0221)

for statements of authorization was effective when taken: October 1, 2010

.

Action taken by: Paul L. Gretch, Director

Office of International Aviation

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

Except to the extent exempted or waived, this authorit y is subject to the terms, conditions, and limitations

indicated: XX American’s certificates of public co nvenience and necessity

XX Conditions for Statement of Authorization (see Appendix B)

XX Standard Foreign Exemption Conditions (attached as Appendix C)

------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------ Conditions: With regard to the authority granted to Germania, LGW, NIKI, and TUIfly to conduct transportation authorized by any additional rights made available to European Union carriers in the future, we are requiring each carrier, before it commences any new service under this authority, to provide us with evidence in the respective Do cket that it holds a homeland license for that new service, unless the carrier has already provided such evidence.

Remarks: We also find that Germania, LGW, NIKI, and TUIfly are financially and operationally qualified to perform the services authorized, and that each carrier is substantially owned and effectively controlled by citizens of Member States of the European Union, consistent with the U.S.-EU Agreement. 10

We note that American has conducted a safety audit of Air Berlin, Belair, Germania, LGW, LTU, NIKI, and TUIfly under the Department’s Code-Share Safety Audit Program, and the FAA has advised that it has reviewed the relevant audit reports and found them to be acceptable.

The Federal Aviation Administration has advised us that it knew of no reason why we should act unfavorably on the requests of Germ ania, LGW, NIKI and TUIfly.

------------------------------------------------------------------------------------------------------------------------------- On the basis of data officially noticeable under Rule 24(g) of the Department’s regulations, we found the applicants 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) gr ant 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 or dismissed, 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.

10 We make this finding based on Article 2 (Reciprocal Recognition of Regulatory Determinations with Regard to Airline Fitness and Citizenship) of the Protocol to amend the U.S.-EU Air Transport Agreement, signed June 24, 2010.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 with in seven (7) days after the date of

issuance of this Notice. This action was effective wh en 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.govAPPENDIX AAPPENDIX B

The statements of authorization granted are subject to the following conditions:

(a) The statements of authorization will remain in effect only as long as (i) American and Air Berlin 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 ope rations remains in effect;

(b) American and/or Air Berlin must notify the Departmentno later than 30 days before they begin any new codeshare 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-sha re market added, and the da te on which the service will begin. 1 Such notices should be filed in Docket DOT-OST-2010-0192;

(c) American and/or Air Berlin must notify the Departme nt immediately if the code-share agreement under which these code-share services are operated is no longe r in effect or if the carriers decide to cease operating all or a portion of the approved code-share services. Such noti ces should be filed in Docket DOT-OST-2010-0192; 2

(d) The code-sharing operations conduc ted under this authority must comply with 14 CFR Part 257 and with any amendments to the Department's regulations concer ning code-share arrangement s that may be adopted. Notwithstanding any provisions in the contract between th e 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 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; and that the passenger liability of the operating carrier be unaffected;

(e) Any service provided shall be consistent with the pr ovisions of the U.S.-EU agreement, and all applicable agreements with other foreign countries involved. Furthermore, (i) nothing in the award of the blanket statement of

authorization to American should be construed as conf erring upon American rights (i ncluding code-share, fifthfreedom intermediate and/or beyond rights) to serve ma rkets where U.S. carrier rights are limited unless American

notifies us of its intent to serve such market and unle ss and until the Department has completed any necessary carrier selection procedures to determine which carrier(s) should be authorized to exercise such rights; 3 and (ii) should there be a request by any carrier to use the lim ited-entry route rights that are included in American’s authority by virtue of the blanket statement of authorization granted here, but th at are not being used by American, the holding of such authority will not be considered as providing any preference for American in a carrier selection proceeding to determine which carrier(s) should be en titled to use the authority at issue.

(f) The authority granted here is specifically conditioned so that neither American nor Air Berlin shall give any force or effect to any contractual provisions between th emselves that are contrary to these conditions; and

(g) We may amend, modify, or revoke the authority gr anted at any time without hearing at our discretion.

An electronic version of this document is available on the World Wide Web at http://www.regulations.gov

1 Pursuant to the Department’s Notice In the Matter of Blanket Notification of Code-Share Service to Open-Skies Partners and Points issued February 9, 2009, the joint applicants have provided blanket notification of their intent to engage in additional reciprocal code sharing on open skies routes in the future.

2 We expect this notificatio n to be received within 10 days of such non-effectiven ess or of such decision.

3 The notice referenced in condition (b) above may be used for this notification.APPENDIX C Foreign Carrier Exemption Conditions

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

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

(2) Comply with all applicable requirements of the Fe deral 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 secur ity, the holder shall, before commencing any new service (including charter flights) from a foreign airport that would be the holder’s last point of departure for the United States, contact its International Industry Representative (IIR) (fo rmerly referred to as International Principal Security Inspector) to advise the IIR 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;

(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 Pr ogram Management Branch (AFS-260), Flight Standards Service (any changes to, or termination of, insu rance also shall be filed with that office);

(4) Not operate aircraft under this authority unless it compli es 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 international air services;

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

(7) Agree that operations under this au thority 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 inte rnational air transportation that, according to the contract of carriage, include a point in the United States as a point of orig in, point of destination, or agreed stopping place, or for which the contract of carriage was purchased 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 St ates. In this condition, the term "international air transportation" means "international tran sportation" as defined by the Warsaw Convention, except that all States shall be considered to be High C ontracting 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 otherwi se provided in the applicable aviation agreement, comply with the Department's rule s 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, with all applicable orders or re gulations of other U.S. agenci es and courts, and with all applicable laws of the United States.

This authority shall not be effective during any period wh en 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.

1/2008