**BEFORE THE**

**DEPARTMENT OF TRANSPORTATION**

**WASHINGTON, D. C.**

--------------------------------------------- Application of : : AMERICAN AIRLINES, INC. : DOT-OST-2010- : 0222 under 49 USC 40l09 for exemption : authority (U.S.-Mexico transborder : routes; codesharing on Alaska Airlines) :

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

**APPLICATION OF AMERICAN AIRLINES, INC. FOR AMENDED 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 20, 2010**BEFORE THE**

**DEPARTMENT OF TRANSPORTATION**

**WASHINGTON, D. C.**

--------------------------------------------- Application of : : AMERICAN AIRLINES, INC. : DOT-OST-2010- : 0222 under 49 USC 40l09 for exemption : authority (U.S.-Mexico transborder : routes; codesharing on Alaska Airlines) :

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

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

American Airlines, Inc., under 49 USC 40l09, hereby applies for amendment of its exemption in this docket, granted by Notice of Action Taken on September 7, 2010, so as to authorize scheduled foreign air transportation of persons, property, and mail on two additional U.S.-Mexico transborder

routes: Sacramento-Guadalajara San Jose-Guadalajara 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. Alaska Airlines is currently seeking exemption authority to serve the two

routes in DOT-OST-2010-0234.- 2 -

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 also 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. Respectfully submitted,

CARL B. NELSON Associate General Counsel American Airlines, Inc. September 20, 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