**BEFORE THE**

**DEPARTMENT OF TRANSPORTATION**

**WASHINGTON, D. C.**

--------------------------------------------- Application of : : AMERICAN AIRLINES, INC. : DOT-OST-2010- : under 49 USC 40l09 for exemption : authority (U.S.-Mexico transborder : routes; codesharing on Alaska Airlines) :

---------------------------------------------

**APPLICATION OF AMERICAN AIRLINES, INC. FOR EXEMPTION AUTHORITY** 

Communications with respect to this document should be sent to:

VIRASB VAHIDI WILLIAM K. RIS, JR. Senior Vice President - Senior Vice President - Planning Government Affairs American Airlines, Inc. American Airlines, Inc. P.O. Box 619616, MD 5634 1101 17 th Street, N.W. DFW Airport, Texas 75161 Washington, D.C. 20036

KENJI C. HASHIMOTO CARL B. NELSON, JR. Vice President – Strategic Associate General Counsel Alliances American Airlines, Inc. American Airlines, Inc. 1101 17 th Street, N.W. P.O. Box 619616, MD 5635 Washington, D.C. 20036 DFW Airport, Texas 75261 (202) 496-5647 carl.nelson@aa.com ROBERT A. WIRICK Director, Regulatory American Airlines, Inc. P.O. Box 619616, MD 5635 DFW Airport, Texas 75261 (817) 963-0394 robert.wirick@aa.com

September 2, 2010**BEFORE THE**

**DEPARTMENT OF TRANSPORTATION**

**WASHINGTON, D. C.**

--------------------------------------------- Application of : : AMERICAN AIRLINES, INC. : DOT-OST-2010- : under 49 USC 40l09 for exemption : authority (U.S.-Mexico transborder : routes; codesharing on Alaska Airlines) :

---------------------------------------------

**APPLICATION OF AMERICAN AIRLINES, INC. FOR EXEMPTION AUTHORITY** 

American Airlines, Inc., under 49 USC 40l09, hereby applies for an exemption authorizing scheduled foreign air transportation of persons, property, and mail on the following

U.S.-Mexico transborder routes: Los Angeles-Mexico City Los Angeles-Guadalajara Los Angeles-La Paz Los Angeles-Loreto Los Angeles-Mazatlan Los Angeles-Zihuatanejo Los Angeles-Manzanillo Los Angeles-Puerto Vallarta San Diego-Puerto Vallarta

San Francisco-Puerto Vallarta- 2 -

American proposes to use the requested authority bydisplaying the AA* code on flights operated by Alaska Airlines, Inc. or Horizon Air, pursuant to a longstanding codeshare agreement between the two carriers. The proposed codeshare services are clearly in the public interest, as approval of this application will expand service options and competition in the U.S.-Mexico market. The requested authority is consistent with the U.S.- Mexico Air Transport Agreement, as amended. Under Annex III, up to 10 U.S. carrier codeshare-only designations are available for the city-pairs at issue. Ample designations remain for

each of the routes named above. In response to the Department’s letter of June l, l995to participants in the Civil Reserve Air Fleet Program, American states that the codeshare arrangement at issue here has no impact on American’s CRAF commitments. American proposes to start the new codeshare service as soon as all regulatory approvals are obtained. We will poll the carriers named on the attached service list and, assuming there are no objections, we will so advise the Department and request expedited approval.- 3 -

Respectfully submitted,

CARL B. NELSON, JR. Associate General Counsel American Airlines, Inc. September 2, 2010CERTIFICATE OF SERVICE

I hereby certify that I have this day served the foregoing document by email on the following carriers:

Air Tran epfaberman@wileyrein.com Frontier

Alaska msinick@ssd.com Horizon

Amerijet jrichardson@johnlrichardson.com

Continental hkamen@coair.com ExpressJet

Delta sascha.vanderbellen@delta.com Pinnacle SkyWest

JetBlue jhill@dowlohnes.com

Spirit jyoung@yklaw.com

Sun Country john.fredericksen@suncountry.com

United jeffrey.manley@united.com Mesa

US Airways howard.kass@usairways.com

USA 3000 pmurphy@lopmurphy.com

FedEx nssparks@fedex.com

UPS dvaughan@kelleydrye.com

ABX rsilverberg@sgbdc.com- ii –

________________________ CARL B. NELSON

September 2, 2010