UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on January 13 , 2011



### NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 2007

- 0012

________________________________________________________________________________________________ ________ This serves as notice to the public of the action described below, taken by the Department official indicated (no additional confirming order will be i ssued in this matter).

Applicant : TAM

- LINHAS AEREAS, S.A. ( TAM ) Date Filed: December 23, 2010

Relief requested: Renewal of e xemption from 49 USC § 41301 to permit the applicant to conduct s cheduled foreign air transportation of persons, property, and mail on a code

- share only basis between TAM’s authorized U.S. gateways and 30 named U.S. points, pursuant to a code

- share arrangement with United Air Lines, Inc. (United). The applicant states

that it seeks renewal of this exemption authority for a minimum of a two

- year period.

If renewal, date and citation of last action: December 29, 2009, in this Docket.

Applicant representative: Robert P. Silverberg

, 202

- 944

- 3300 DOT analyst: Robert J. Finamore , 202

- 366

- 2405

Responsive pleadings: None.

DISPOSITION

Action: Approved in part (one

- year grant), remainder (request for longer

- term authority) dismissed

. 1

Action date: January 13 , 2011

Effective dates of authority granted: January 13 , 2011 , through January 13 , 2012

.

Basis for approval (bil ateral agreement/reciprocity): U.S.

- Brazil Air Transport Agreement

.

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

.

Special conditions/Remarks: T he terms of the U.S.

- Brazil Air Transport Agreement provide for U.S. and Brazilian carriers to serve, in addition to their authorized gateways, up to 30 code

- share only points named by their respective

governments

. T he Government of Brazil has selected the following 27 code

- share only points: Austin, Cleveland,

Cincinnat i, Columbus, Dallas/Ft. Worth, Denver, Honolulu, Indianapolis, Jacksonville, Las Vegas, Minneapolis, Nashville, New Orleans, Philadelphia, Phoenix, Pittsburgh, Portland, Raleigh/Durham, St. Louis, Salt Lake City, San Diego, San Jose, Seattle, Tampa, Tucson , Tulsa, and Vail. Code

- share service to any additional point or points is subject to a 30

- day notice requirement in this Docket and to confirmation by diplomatic note of the selection of additional points by the Brazilian government, prior to the commenc ement of new services.

The exemption authority granted to TAM is limited to operations conducted only through its code

- share arrangement with United, on flights operated by United.

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

________________________________________________________________________________________________________ Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our action was consistent w ith Department p olicy; (2) the applicant was qualified to perform its proposed operations; (3) grant of the authority was consistent

1 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 application to the extent that it sought authority for a longer period.with the public interest; and (4) grant of the authority would not constitute a major regulatory action under the Energy Poli cy and

Conserv ation 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 discretion.

Persons entitled to pet ition 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 effec tive 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

### 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 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 assure compliance with all applicable U.S. Government requirements concerning security, the holder shall, before commencing any new service (including chart er 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) (formerly referred to as International Principal Security Inspector) to advise the I IR of i ts 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 the form of a completed OST Form 6411, with the Federal Aviation Administration’s Program Management Branch (AFS

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

(4) Not operate aircraft under this authority unless it complies with operational safety requirements at least equivalent to Annex 6 of the Chicago Convention;

(5) Conform to th e 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 o f 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 i t in any court or other tribunal in the United States that are: (a) based on its operations in international air transportation that, according to the contract of carriage, include a point in the United States as a point of origin, point of destination, o r 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 States. In this condition, the term "international air transportation" means "international transportation" as defined by the Warsaw Convention, except that all States shall be considered to be High Contracting Parties for the purpose of this definition;

(8) Except as specifically aut horized 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 operatio ns are authorized, except as otherwise provided in the applicable aviation agreement, comply with the 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 perio d 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.

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