UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on April 27 , 2012



### NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 1997

- 2421

_____________________________________________________________________________________________________________________________ ___ This serves as notice to the public of the action described below, taken by the Department official indicated (no

additional co nfirming order will be issued in this matter).

Applicant : 

### TAM

- LINHAS AEREAS S.A. (TAM ) Date Filed: August 10, 2001, as amended April 11, 2012

Relief requested: Renewal and amendment of e xemption under 49 USC § 40109 to permit TAM to engag e in

scheduled foreign air transportation of persons, property and mail from any point or points behind Brazil, via Brazil and intermediate points to any point or points in the United States and beyond. 1 TAM requests that its exemption authority be granted for a minimum of two years.

Date and citation of last action: August 23, 200 0, in this Docket.

Applicant representative: Robert P. Silverberg, 202

- 944

- 3300 DOT Analyst: Robert J. Finamore, 202

- 366

- 2405

Responsive pleadings: None filed

DISPOSITION

Action: Approved in part (one

- year grant), remainder (request for longer

- term authority) dismissed. 2

Action date : April 27

, 201 2

Effective dates of exemption authority granted: April 27 , 2012

– April 27 , 2013

Basis for approval (bilateral agreement/reciprocity) : Air Transport Agreement between the United States and Brazil and the Memorandum of Consultations signed March 19, 2011.

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our standard exemption conditions (attached)

. Action taken by: Paul L. Gretc h, Director

, Office of International Aviation

_________________________________________________________________ ______________________________ Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) the applicant i s qualified to perform the proposed operations; (2) our action was consistent with Department policy; (3) grant of the authority was consist ent with the public interest; and (4) grant of the authority would not constitute a major regulatory action under th e Energy Policy and Conservation Act of 1975. To the extent not granted/deferred/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 discretio n.

Persons entitled to petition the Department for review of the action set forth in this Notice under the Department’s regulati ons, 14 CFR § 385.30, may file their petitions within seven (7) days after the date of issuance of this Notice. This action wa s 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

1 TAM’s existing exemption authority in the instant Docket permits it to conduct scheduled combination services between a point or points in Brazil, via intermediate points, and: New York, New York/Newark, New Jersey; Atlanta, Georgia; Miami, Florida; Orlando, Florida; Detroit, Michigan; Washington, D.C.; Baltimore, Maryland; Houston, Texas; Chicago, Illinois; San Francisco

, California; Los Angeles, California; and San Juan , Puerto Rico.

2 The one

- year duration of the authority we granted is consistent with our usual policy of granting exemption authority in the circumstances presented. We, therefore, dismissed the applic ation to the extent that it sought authority for a longer period.Foreign Carrier Exemption Conditions

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

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

(2) 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, 14 CFR Parts 129, 91, and 36 and 49 CFR Part 1546 or 1550, as applicable. To assu re compliance with all applicable U.S. Government requirements concerning security, 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 Sta tes,
contact its International Industry Representative (IIR) (formerly referred to as International Principal Security Inspector) to advise the I IR 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 evidence of such coverage, in th e form of a completed OST Form 6411, with the Federal Aviation Administration’s Program Management Branch (AFS

- 260), Flight Standards Service (any changes to, or termination of, insurance also shall be filed with that office);

(4) Not operate aircraft un der this authority unless it complies 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 for in a Department Order, comply with the requirements of 14 CFR Part 203, concerning waiver of Warsaw Convention liability limits and defenses;

(7) Agree that operations under this authority 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 origin, point of destination, or agreed stopping place, or for which the contract of carriage was purchased in the United States; o r (b) based on a claim under any international agreement or treaty cognizable in any court or other tribunal of the United States. In this condition, the term "international air transportation" means "international transportation" as defined by the Warsa w Convention, except that all States shall be considered to be High Contracting 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 homel and;

(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 otherwise provided in the applicable aviation agreement, comply

with th e Department's rules 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 regulations of other U.S. agencies and courts, and with all applicable laws of the United States.

This authority shall not be effective during any period when 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.

12/2007