Order 201 1

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UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the D epartment of Transportation
on the 6 th day of April , 201 1

Served: June 9 , 201 1

Docket DOT

- OST

- 2005

- 22228

ORDER ISSUING CERTIFICATE

Summary

By this order we grant American Airlines, Inc. (referred to a s American or the captioned air carrier) consolidated certificate authority to provide combination service in various U.S.

- Mexico
markets for which American holds economic authority by certificate or exemption.

Background and Consolidation Request

In fu rtherance of the Department’s regulatory streamlining initiative for licensing U.S. air carriers, we announced by Notice on February 13, 2009 (February Notice) our intention to realign in response to carrier requests the existing non

- open

- skies economic au thority held by carriers already holding a blanket open

- skies certificate into new consolidated certificates of public convenience and necessity. 1

1 Notice dated February 1 3, 2009, in Docket DOT

- OST

- 2005

- 22228. We stated that we would realign economic authority involving markets, other than Mexico, that are not open

- s kies partners of the United States into two
certificates

– an indefinite duration certificate for markets that are not entry

- or frequency

- limited
and a five

- year certificate for limited

- entry or limited

- frequency markets so that all authority in
limited

- e ntry or limited

- frequency markets will have a common expiration date. We stated that we
would cover a carrier’s U.S.

- Mexico authority in a separate certificate, as a carrier must obtain In the Matter of Consol idated International Route Authority for:

AMERICAN AIRLINES, INC.

under 49 U.S.C. §41102 for a certificate of public convenience and necessity (U.S.

- Mexico)new economic authority on a city

- pair basis each time it proposes to add a new city

- pair market to
its U.S.

- Mexico services.

We invited carriers to request realignment of their economic authority by submitting a letter to the streamlining docket, Docket DOT

- OST

- 2005

- 22228, identifying the authority to be included in the new certificates. Specifically, the carrier must identify the authority it holds for a particular market, whether it is limited to code

- share services only, whether the market is entry

- or frequency

- limited, the number of the order in which the authority was granted (for previously

issued certificate authority) and the docket in which it was granted (for exemption authority). We stated that if no issues arise making it impractical to consolidate currently held authority as requested by the carrier, we wou ld draft a self

- executing final order designed to issue the non

open

- skies market certificate(s) upon completion of the 49 USC 41307 Presidential review

process.

By letter dated March 25 , 20 11

, American requested a consolidated U.S.

- Mexico certificate, an d provided a listing of the U.S.

- Mexico city

- pair markets for which it seeks consolidation. 2

Decision

Under assigned authority and consistent with our streamlining and consolidated certificate initiative, we have decided to grant American ’s consolidation request and to reissue American ’s existing economic authority to serve various city pairs in the U.S.

- Mexico market. 3

American is eligible to receive the consolidated certificate, as described in the February Notice, as it holds a blanket open

- skies cer tificate. 4

Our action here establishes for the carrier a new route certificate, attached at Appendix A. Each
U.S.

- Mexico city

- pair market is included in the certificate as a route segmen t. We find that grant of the certificate is consistent with the pub lic convenience and necessity. 5

2 The city

- pair markets for which American seeks a consolidated certificate are listed in Appendix B. This Appendix
also identifies markets that are authorized to be served on a seasonal basis. We find further that the

3 American requests consolidation of authority it currently holds by exemption with those city

- pair markets covered by an Experimental Certificate of Public Convenience and Necessity for Route 560, issued by Order 2000

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- 31 and kept in force by its timely

- filed renewal appli cation. Not included as part of this consolidation order is authority to serve the Los Angeles

- Guadalajara city

- pair market, initially included on Route 560 but for which American provided notice of dormancy on December 16, 2002; and the Chicago

- Monterrey city

- pair market, also initially included on
Route 560

- authority that became dormant in 2001, as acknowledged by American in docket DOT

- OST

- 2004

- 17888, on May 17, 2004. Consistent with our streamlining initiative we will assign a new route number to th e covered city

pair markets. Nothing in this order will affect authority American holds for Route 628, covering additional U.S.

- Mexico city

- pair markets, as it was specifically excluded from American’s consolidation request.

4 By Order 2007

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- 2, Americ an was issued a Certificate of Public Convenience and Necessity for Route 835, authorizing the carrier to serve the open

- skies partners of the United States.

5 Based on officially noticeable data, the Department has found the captioned air carrier fit, willing, and able to engage in foreign scheduled air transportation of persons, property, and mail using large aircraft. See
Order 2010

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- 24.pending consolidated certificate request is not controversial and that it is appropriate to grant the authority at issue here under simplified procedures, as explained in the February Notice. 6

T he authority in the attached certificate is consistent with the aviation agreement between the United States and Mexico, authorizing the use of rights for which the United States has exchanged valuable operating rights. All of the authority conferred here contributes to the variety of price and service options available to travelers and shippers.

We therefore find, under assigned authority, that the public interest warrants granting American the consolidated certificate attached at Appendix A, subject to the conditions attached.

The attached certificate of public convenience and necessity is subject to the standard terms, conditions, and limitations we consistently impose in the public interest. 7 The certificate holder may request amendment of the certificate to include newly obtained U.S.

- Mexico authority through the addition of a new route segment, as described in the February Notice.

Upon effectiveness, the authority granted by this order supersedes any orders previously issued or
actions take n by the Department granting the carrier operating rights in the listed markets. For those services currently operated under an exemption, the exemption will terminate upon the effectiveness of the attached certificate of public convenience and necessity.

Findings and Conclusions

In view of the foregoing and all the facts of record, we find and conclude that:

1. It is consistent with the public convenience and necessity to issue the captioned air carrier the certificate attached as Appendix A to this order ;

2. On the basis of data officially noticeable under 14 CFR 302.24 of the Department’s regulations, the captioned air carrier is a citizen of the United States and is fit, willing, and able to perform properly the foreign air transportation described in the attached certificate and to conform to the provisions of Subtitle VII of Title 49, United States Code (Transportation), and to the Department’s rules, regulations, and requirements;

3. The public interest requires that the exercise of the privileges granted by the attached certificate be subject to the terms, conditions and limitations contained in the attached certificate and to such others required by the public interest as the Department may prescribe;

6 In accordance with 14 CFR § 302.207, et seq ., we may, in our discretion, omit a tentative decision in proc eedings and proceed directly to a final decision.

7 See Appendix B for the type of service (own

- aircraft vs. code

- share

- only) currently authorized in each U.S.

- Mexico city

- pair market, including the level of service (year

- round vs. seasonal) the carrier p rovides in each market. We remind the carrier to follow established procedures for requesting conversions of its own

- aircraft /code

- share authority and/or noticing service level changes.4. The issuance of the attached certificate to the capt ioned air carrier does not constitute a major regulatory action under the Energy Policy and Conservation Act of 1975, as defined by section 313.4(a)(1) of the Department’s regulations; 8 and

5. The public interest does not require an oral evidentiary hearing or a show

- cause proceeding on the application and the actions taken here. There are no material, determinative issues of fact requiring such procedures for their resolution.

In view of the above, and acting under authority assigned by the Department in i ts regulations, 14 CFR Part 385, we find our action here is consistent with Department policy.

ACCORDINGLY,

1

. We issue, as attached in Appendix A, a certificate of public convenience and necessity to
American Airl ines, Inc., covering U.S.

- Mexico ci ty

- pair markets which American
Airl ines, Inc., is authorized to serve by certificate or exemption;

2. This order supersedes any orders previously issued or actions taken by the Department to the extent such order or action grants the carrier operating rig hts, by certificate or exemption, in markets covered by the attached certificate;

3. The certificate issued to American Airl ines, Inc., will be effective upon the service date of this order;

4. Unless disapproved by the President of the United State s under 49 U.S.C. § 41307, this order shall become effective upon the 61st day after its submission for § 41307 review, or upon the date of receipt of advice from the President or his designee under Executive Order 12597 and implementing regulations that h e or she does not intend to disapprove the Department’s order under that section, whichever occurs earlier; 9

8 Our finding is based on the fact that the grant of this applicatio n would not result in a near

- term increase in annual fuel consumption in excess of 10 million gallons. and

9 This order was submitted for review under 49 USC Section 41307 on April 6, 2011. The 61 st day is June 6, 2011.5. We will serve this order on American Air l ines, Inc.; the Ambassador of Mexico in Washington, D.C.; the U.S. Department of State (Office of Aviation Negotiations), and
the Federal Aviation Administration.

By:

PAUL L. GRETCH
Director
Office of International Aviation

(SEAL)

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



# Experimental
Certificate of Public Convenience and Necessity
for

ROUTE 903

This Certifies That



# American Air l ines, Inc.

is authorized, subject to the provisions of Subtitle VII of Title 49 of United States Code, the orders, rules, and regulations issued thereunder, and the attached Terms, Conditions, and Limitations, to engage in foreign air

trans portation of persons, property and mail.

This certificate is not transferable without the approval of the Department of the Transportation.

By Direction of the Secretary

Issued by Order 20 1 1

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On April 6 , 2011 Director, Office of
Effective on June 6 , 2011 International AviationOrder 201 1

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Route 903 Page 1 of 3

Terms, Conditions, and Limitations

American Air l ines, Inc. for Route 903

is authorized to engage in scheduled foreign air transportation of persons, property and mail over the following U.S.

- Mexico city

- pair route segments:

Chicago

- Acapulco Chicago

- Cancun Chicago

- Cozumel Chicago

- Puerto Vallarta Chicago

- San Jose del Cabo
Dallas/Ft. Worth

- Cancun
Dallas/Ft. Worth

- Cozumel
Dallas/Ft. Worth

- Guadalajara
Dallas/Ft. Worth

- Ixtapa/Zihuatanejo
Dallas/Ft. Worth

- Leon
Dallas/Ft. Worth

- Puerto Vallarta
Dallas/Ft. Worth

- San Jose del Cabo Los Angel es

- San Jose del Cabo
Miami

- Cancun
Miami

- Mexico City/TolucaOrder 201 1

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Route 903 Page 2 of 3

This authority is subject to the following conditions:

(1) The holder shall at all times conduct its operations in ac cordance with the regulations prescribed by the Department of Transportation for the services authorized by this certificate, and with such other reasonable terms, conditions, and limitations as the Department of Transportation may prescribe in the public interest.

(2) The holder shall at all times conduct its operations in accordance with all treaties and agreements between the United States and other countries, and the exercise of the privileges granted by this certificate is subject to compliance with s uch treaties and agreements and with any orders of the Department of Transportation issued under them. To the extent that the holder has authority to serve more than one country or points in more than one country on the same route segment, that authority does not confer upon the holder any additional rights (including
fifth

- freedom intermediate and/or beyond rights) in limited

- entry markets unless the Department has completed any necessary carrier selection procedures to determine which carrier(s) should b e authorized to exercise such rights and has notified the foreign country(ies) involved that any such selected carrier(s) has the required authority. In such cases, the fact that the carrier may hold authority to serve the countries (points) at issue on t he same segment will not be considered as providing any preference to the holder in a carrier selection proceeding.

(3) The exercise of the authority granted here is subject to the holder’s first obtaining from the appropriate foreign governments such ope rating rights as may be necessary.

(4) The holder’s authority is effective only to the extent that such operations comply with all applicable requirements of the Federal Aviation Administration, the Transportation Security Administration, and with all ap plicable 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 (inc luding 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 ai rport(s) to be served.

(5) The holder shall at all times remain a “Citizen of the United States,” as required by 49 U.S.C. 40102(a)(15).

(6) The holder shall maintain in effect liability insurance coverage as required under 14 CFR
Part 205. Failure t o maintain such insurance coverage will render a certificate ineffective, and this or other failure to comply with the provisions of Subtitle VII of 49 U.S.C. or the Department’s regulations shall be sufficient grounds to revoke this certificate.

(7) The holder acknowledges that this certificate is granted to determine if the holder’s projected services, efficiencies, methods, rates, fares, charges, and other projected results will, in fact, materialize and remain for a sustained period of time, and to det ermine whether the holder will provide the innovative and low

- priced air transportation it proposed in its application for this authority.Order 201 1

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Route 903 Page 3 of 3

(8)(a) The holder may combine services on al l city

- pair route segments of this certificate and
combine services on this certificate with U.S.

- Mexico combination services authorized by other Department of Transportation certificates or exemptions, subject to the conditions below.

(8)(b) The provis ions in paragraph (8)(a), above, shall not authorize services which would constitute multiple designations on city

- pair route segments where such multiple designations are not agreed to by the United States and Mexico.

(9) The holder shall file a notice with the Department if it discontinues services on a city

- pair route segment for 90 days or longer. This notice shall be given as soon as the decision to discontinue service (other than seasonal/intermittent) is made, but in no case later than the 91 st

da y of dormancy. Notices shall be filed in the form of a letter addressed to the U.S. Department of Transportation, U.S. Air Carrier Licensing Division, X

- 44, 1200 New Jersey Avenue, SE, Washington, DC 20590, and shall identify the dormant city

- pair route s egment, and the date the market became (or will become) dormant.

(10) Should the holder propose any substantial changes in its o wnership, management, or operations (as that term is defined in 14 CFR 204 of the Department’s regulations), it must comply wi th the requirements of 14 CFR 204.5.

(11) In the event the holder ceases all operations for which it was found “fit, willing, and able,” its authority under this certificate shall be suspended under the terms of 14 CFR 204.7 and the holder may neither r ecommence nor advertise such operations unless its fitness to do so has been redetermined by the Department. Moreover, if the holder does not resume operations within one year of its cessation, its authority shall be revoked for dormancy.

The authority t o serve each city

- pair route segment in this certificate shall continue in effect until June 6, 2016 ; notwithstanding the above

, however , the authority to serve any city

- pair route segment shall expire automatically and revert to the Department (a ) the 90 th day after the holder discontinues service on that segment, or (b) the holder notifies the Department (as provided in this certificate) that the segment is dormant, whichever occurs earlier; unless the Department earlier suspends, modifies, or de letes the authority.Appendix B Page 1 of 1

List of U.S.

- Mexico Markets Submitted for Consolidation by American

Own Aircraft Markets *

Market Type of Authority Docket Number Level of
Service

Chicago

- Acapulco Certificate Order 2000

- 5

- 31 Year

- round Chicago

- Cancun Exemption DOT

- OST

- 2000

- 8101 Year

- round Chicago

- Cozumel Exemption DOT

- OST

- 2010

- 0247 Seasonal Chicago

- Puerto Vallarta Exemption DOT

- OST

- 2002

- 13389 Seasonal Chicago

- San Jose del Cabo Certificate Order 2000

- 5

- 31 Seasonal

Dallas/Ft. Wor th

- Cancun Certificate Order 2000

- 5

- 31 Year

- round
Dallas/Ft. Worth

- Cozumel Exemption DOT

- OST

- 2002

- 13389 Year

- round
Dallas/Ft. Worth

- Guadalajara Certificate Order 2000

- 5

- 31 Year

- round
Dallas/Ft. Worth

Ixtapa/Zihuatanejo Exemption DOT

- OST

- 2003

- 16495 Season al

Dallas/Ft. Worth

- Leon Certificate Order 2000

- 5

- 31 Year

- round
Dallas/Ft. Worth

- Puerto
Vallarta Certificate Order 2000

- 5

- 31 Year

- round

Dallas/Ft. Worth

- San Jose del
Cabo Certificate Order 2000

- 5

- 31 Year

- round

Los Angeles

- San Jose del Cabo Exempt ion DOT

- OST

- 2000

- 8361 Year

- round

Miami

- Cancun Certificate Order 2000

- 5

- 31 Year

- round
Miami

- Mexico City/Toluca Certificate Order 2000

- 5

- 31 Year

- round

*No code

- share markets were submitted by American for consolidation.