### UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC

Issued by the Department of Transportation on October 7, 2010

NO TICE OF ACTION TAKEN – DOCKET DOT-OST-2010-0245

_____________________________________________________________________________________ This serves as notice to the public of the action d escribed 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 10/1/10 for:

XX Exemption authority pursuant to 49 U.S.C. 40109 to provide the following service:

Scheduled foreign air transportation of persons, property, and mail between Los Angeles, California and Shanghai, People’s Republic of China. 1

XX Allocation of seven (7) weekly U.S.-China co mbination frequencies to serve the Los AngelesShanghai market.

Applicant Rep: Carl B. Nelson (202) 496-5647 DOT Analyst: Thuy H. Cooper (202) 366-5423

DISPOSITION

XX Granted (subject to the conditions described below).

The above action granting exemption authority was effective when taken: October 7, 2010 , through October 7, 2012

.

The above action allocating frequenc ies was effective when taken: October 7, 2010

, and will remain in effect indefinitely, subject to the conditions below. 2

Action taken by: Paul L. Gretch, Director

Office of International Aviation

XX The authority granted is consistent with th e Air Transport Agreement, as amended, between the United States and the People’s Republic of China.

Except to the extent exempted or waived, this authorit y is subject to the terms, conditions, and limitations

indicated: XX American’s certificates of public convenience and necessity

XX Standard exemption conditions (attached as Appendix A)

_____________________________________________________________________________________ Conditions: Consistent with our standard practice, th e frequencies allocated here are subject to our standard 90-day dormancy condition, wherein any frequ ency not operated for a period of 90 days (once

1 The carrier states that it plans to operate daily nonstop service beginning April 5, 2011.

2 Our action granting American’s current request leaves a total of 21 U.S.-China scheduled combination frequencies

available for allocation.inaugurated and for any reason other than seasonal use) , will be deemed dormant and the allocation as to that frequency will expire automatically and the frequency will revert to the Department for reallocation. In addition, we will allow a 10-day leeway in the pr oposed start-up date for American. We will allow American to inaugurate service with all of its frequencies within 10 days of April 5, 2011 ( i.e. , by April 15, 2011), the carrier’s proposed start-up date. An y frequency not inaugurated by April 15, 2011 will revert to the Department.

Remarks: We acted on this application prior to the expirati on of the answer period with the consent of all parties served.

_____________________________________________________________________________________ On the basis of data officially noticeable under Rule 24(g) of the Department’s regulations, we found the applicant qualified to provide the 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) gran t of the application was consistent with the public interest; and (3) grant of the authority would not constitute a major regulatory action under the Energy 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 authorit y 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 with in seven (7) days after the date of

issuance of this Notice. This action was effective wh en 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

### ATTACHMENT

U.S. Carrier Exemption Conditions

In the conduct of the operations authori zed, the U.S. carrier applicant(s) shall:

(1) Hold at all times effective operating author ity from the government of each country served;

(2) Comply with applicable requirements c oncerning oversales contained in 14 CFR 250 (for scheduled operations, if authorized);

(3) Comply with the requirements fo r reporting data contained in 14 CFR 241;

(4) Comply with requirements for minimum insuran ce coverage, and for certifying that coverage to the Department, contained in 14 CFR 205;

(5) Except as specifically exempted or otherwise pr ovided for in a Department Order, comply with the requirements of 14 CFR 203, concerni ng waiver of Warsaw Convention liability limits and defenses;

(6) Comply with all applicable requirement s of the Federal Aviati on Administration, the Transportation Security Administ ration, and with all ap plicable 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 concer ning security, the holder shall, before commencing any new service (including charter fli ghts) to or from a foreign airpor t, contact its Principal Security Inspector (PSI) to advise the PSI of its plans a nd to find out whether the Transportation Security

Administration has determined that security is adequate to allow such airport(s) to be served;

(7) Comply with such other reasonable terms, c onditions, and limitations requi red by the public interest as may be prescribed by the Department of Transporta tion, with all applicable or ders and regulations of other U.S. agencies and courts, and with all applicable laws of the United States.

The authority granted shall be eff ective only during the period when the holder is in compliance with the conditions imposed above.

1/2008