UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, DC


### Issued by the Department of Transportation on July 19 , 201 2

NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 20 1 0

- 022 2

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

Application of AMERICAN AIRLINES, INC. ( American ) , filed 2/11/11 , for:

XX Renewal of e xemption under 49 U.S.C. 40109 to provide the following service:

Scheduled foreign air transportation of persons, property, and mail between (1) Los Angeles, California, and Mexico City, Mexico; (2) Los Angeles, California, and Guadalajara, Mexico; (3) Los Angeles, California, and La Paz, Mexico; (4) Los Angeles, California, and Loreto, Mexico ; (5) Los Angeles, California, and Mazat lan, Mexico; (6) Los Angeles, California, and Ixtapa/Zihuatanejo, Mexico; (7) Los Angeles, California, and Manzanillo, Mexico; (8) Los Angeles, California, and Puerto Vallarta, Mexico; (9) Sacramento, California, and Guadalajara, Mexico; (10) San Diego, California, and Puerto Vallarta, Mexico; (1 1 ) San Francisco, California, and Puerto Vallarta, Mexico ; and (12) San Jose, California, and Guadalajara, Mexico

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Applicant rep: Carl B. Nelson (202) 496

- 5647 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 was effective when taken: July 19 , 201 2 , through July 19 , 201 4

.
Action taken by: Paul L. Gretch, Director Office of International Av iation

XX The authority granted is consistent with the aviation agreement between the United States and Mexico.

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

XX The holder’s ce rtificates of public convenience and necessity XX Standard exemption conditions (attached)

Conditions : The U.S.

- Mexico exemption authority granted is subject to the dormancy notice requirements set forth in condition 7 of Appendix A of Order 88

- 10

- 2

, and the notice requirements for seasonal/intermittent service as set forth in Order 96

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- 24, at 5

.

1 American uses this authority by placing its AA* designator code on flights operated by Alaska Airlines, Inc. (Alaska) or Horizon Air Industries, Inc. (Horizon). In th is regard, we note that Horizon is authorized to provide
year

- round direct

- carrier (own

- aircraft) services in the Los Angeles

- La Paz/Loreto markets (Dockets DOT

- OST

2008

- 0172 and DOT

- OST

- 2009

- 0180, respectively), and Alaska is authorized to provide year

- ro und direct

- carrier services in the Los Angeles

- Mexico C ity (Docket DOT

- OST

- 2005

- 20406), Los Angeles

- Guadalajara (Docket DOT

OST

- 2003

- 14542), Sacramento/San Jose

- Guadalajara (DOT

- OST

- 2010

- 0234), Los Angeles

Mazatlan/Ixtapa/Zihuatanejo/Manzanillo/Puerto Vall arta and San Francisco

- Puerto Vallarta markets (Docket DOT

OST

- 1999

- 6276) ; and seasonal direct

- carrier services in the San Diego

- Puerto Vallarta market (DOT

- OST

- 2010

- 0103).The exemption authority granted to American is limited to code

- share services only.

The code

- share operations conducted under this authorization ar e subject to the following conditions:

(a) The code

- sharing operations conducted under this authority must comply with 14 C.F.R. 257 and with any amendments to the Department’s regulations concerning code

- share arrangements that may be adopted. Notwithstandi ng 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 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 t he passenger liability of the operating carrier be unaffected; and

(b) The authority granted here is specifically conditioned so that neither American , Alaska, nor Horizon shall give any force or effect to any contractual provisions between themselves that ar e contrary to these conditions.

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 En ergy 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 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.govATTACHMENT

U.S. Carrier Exemption Co nditions

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 co ntained 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 Departmen t, 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 appli cable 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; and

(7) Comply with such other reasonable terms, conditions, and limitations required by the public interest

as m ay 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.

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