UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on December 13, 2011

 NOTICE OF ACTION TAKEN -- DOCKET DOT-OST-2011-0210 _____________________________________________________________________________________________________________________

This serves as notice to the public of the action described below, taken by the Department official 

indicated (no additional confirming order will be issued in this matter).

Joint Application of AMERICAN AIRLINES, INC. (American); American’s affiliates AMERICAN 

EAGLE AIRLINES, INC. and EXECUTIVE AIRLINES, INC. d/b/a AMERICAN EAGLE 

(American Eagle); and AEROLANE, LINEAS AEREAS NACIONALES DEL ECUADOR S.A. 

d/b/a LAN ECUADOR (LAN Ecuador) filed 11/14/11 for:

XX Exemption for American for two years under 49 U.S.C. 40109 to provide the following services: 

Scheduled foreign air transportation of persons, property and mail between points within Ecuador, on a 

code-share only basis on LAN Ecuador flights.

XX Statement of authorization in order to engage in the following code-share services:

American requests a blanket statement of authorization under 14 CFR Part 212 to display LAN 

Ecuador’s “XL” designator code in conjunction with foreign air transportation of persons, property, 

and mail on American and American Eagle-operated flights between (1) points in the United States; and 

(2) points in the United States and points in Ecuador (either nonstop or via intermediate points in third 

countries).

XX Statement of authorization in order to engage in the following code-share services:

LAN Ecuador requests a blanket statement of authorization under 14 CFR Part 212 to display 

American’s “AA” designator code in conjunction with foreign air transportation of persons, property, 

and mail on LAN Ecuador-operated flights between (1) points in Ecuador; and (2) points in the United 

States and points in Ecuador (either nonstop or via intermediate points in third countries).

XX Waiver of the 45-day advance filing requirement under 14 CFR Part 212

Applicant reps: Carl B. Nelson (202) 496-5647 (American) and 

Charles J. Simpson (202) 973-7939 (LAN Ecuador)

DOT Analyst: Brett D. Kruger (202) 366-8025

DISPOSITION

XX Approved request of American for exemption authority (subject to conditions, see below).

XX Approved request of American for a blanket statement of authorization (subject to conditions, 

see below).

XX Approved request of LAN Ecuador for a blanket statement of authorization (subject to 

conditions, see below).

XX Approved waiver of 45-day advance filing requirement under 14 CFR Part 212.
The above action granting exemption authority to American is effective when taken: December 13, 2011, 

through December 13, 2013. 

The above actions granting statements of authorization to the referenced carriers are effective: December

13, 2011, and will remain in effect indefinitely, subject to conditions.

The above action granting a waiver of the 45-day advance filing requirement under 14 CFR Part 212 is 

effective when taken: December 13, 2011.

Action taken by: Paul L. Gretch, Director

 Office of International Aviation

XX The authority granted is consistent with the aviation agreement between the United States and 

Ecuador.

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

indicated: 

 XX American’s certificates of public convenience and necessity

 XX Standard U.S. exemption conditions (attached as Appendix A)

 XX Conditions for Statements of Authorization (attached as Appendix B) 

___________________________________________________________________________________

Conditions: Under the aviation agreement between the United States and Ecuador, there are limitations 

on the points that may be served. Carriers designated by the United States may provide scheduled 

combination services from the United States via 15 intermediate points to points in Ecuador.1

 At this 

time, the United States has selected Bogota, Colombia as one of the authorized intermediate points. With 

respect to carriers designated by Ecuador, the authorized U.S. points are: Miami, Orlando, Washington, 

New York, Chicago, Los Angeles, nine additional points to be selected by the Government of Ecuador, 

and five additional points to be selected by the Government of Ecuador for code-share only services. At 

this time, Ecuador has selected the following points for own-aircraft and/or code-share services: Dallas, 

Houston, Atlanta, Boston, Seattle, Fort Lauderdale, Denver, San Francisco, and Newark. Ecuador has 

selected the following points for code-share only services: New Orleans, Philadelphia, Phoenix, San 

Diego, and Charlotte. Effective July 1, 2012, the Government of Ecuador may select five additional 

points in the United States for code-share only services.

The authority granted here permits the applicants to serve the points currently selected and those that may 

be selected in the future under the U.S.-Ecuador agreement. This authority shall not be construed as to 

grant the applicants authority to serve any point that is not properly selected.

Remarks: We note that American has conducted a safety audit of LAN Ecuador under the Department’s 

Code-Share Safety Audit Program, and the FAA has advised us that it has reviewed the relevant audit 

report and found it to be acceptable.

__________________________________________________________________________________

On the basis of data officially noticeable under Rule 24(g) of the Department's regulations, we found 

American qualified to provide the exemption services authorized. Under authority assigned by the 

Department in its regulations, 14 CFR Part 385, we found that (1) our action in this notice was consistent 

with Department policy; (2) grant of the authority was consistent with the public interest; and (3) grant of 

the authority would not constitute a major federal action under the Energy Policy and Conservation Act of 

1975. 

 1 Under the agreement, U.S. carriers may provide direct service to Quito, Guayaquil, Latacunga, Manta, and other 

airports as they become available for international service. All other airports may be served by code-share service 

only.
To the extent not granted or 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 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 within seven (7) days after the date of 

issuance of this Notice. This action was 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
Appendix A

U.S. Carrier Exemption Conditions

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

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

(2) Comply with applicable requirements concerning oversales contained in 14 CFR 250 (for 

scheduled operations, if authorized);

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

(4) Comply with requirements for minimum insurance coverage, and for certifying that coverage 

to the Department, contained in 14 CFR 205;

(5) Except as specifically exempted or otherwise provided for in a Department Order, comply 

with the requirements of 14 CFR 203, concerning waiver of Warsaw Convention liability limits 

and defenses;

(6) 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, 49 CFR Part 1544. To assure compliance with 

all applicable U.S. Government requirements concerning security, the holder shall, before 

commencing any new service (including charter flights) to or from a foreign airport, contact its 

Principal Security Inspector (PSI) to advise the PSI 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;

(7) Comply with such other reasonable terms, conditions, and limitations required by the public 

interest as may be prescribed by the Department of Transportation, with all applicable orders and 

regulations of other U.S. agencies and courts, and with all applicable laws of the United States.

The authority granted shall be effective only during the period when the holder is in compliance 

with the conditions imposed above.

1/2008
Appendix C

The code-share operations authorized here are subject to the following conditions:

(a) The statements of authorization granted will remain in effect only as long as (i) American and LAN 

Ecuador continue to hold the necessary underlying authority to operate the code-share services at issue, 

and (ii) the code-share agreement providing for the code-share operations remains in effect.

(b) American and/or LAN Ecuador, as appropriate, must notify the Department no later than 30 days 

before they begin any new code-share service under the code-share services authorized here. Such notice 

shall identify the market(s) to be served, which carrier will be operating the aircraft in the code-share 

market added, and the date on which the service will begin. Such notice should be filed in Docket DOTOST-2011-0210.

1

(c) American and/or LAN Ecuador, as appropriate, must promptly notify the Department if the code-share 

agreement providing for the code-share operations is no longer effective or if the carriers decide to cease 

operating all or a portion of the approved code-share services. Such notice should be filed in Docket 

DOT-OST-2011-0210.

2

(d) The code-sharing operations conducted under this authority must comply with 14 CFR 257 and with 

any amendments to the Department’s regulations concerning code-share arrangements that may be 

adopted. Notwithstanding any provisions in the contract between the carriers, our approval here is 

expressly conditioned upon the requirements that the subject foreign air transportation be sold in the name 

of the carrier holding out such service in the computer reservation systems and elsewhere; that the carrier 

selling such transportation (i.e., the carrier shown on the ticket) accept responsibility for the entirety of 

the code-share journey for all obligations established in its contract of carriage with the passenger; that 

the passenger liability of the operating carrier be unaffected; and that the operating carrier shall not permit 

the code of its U.S. code-sharing partner to be carried on any flight that enters, departs, or transits the 

airspace of any area for whose airspace the Federal Aviation Administration has issued a flight 

prohibition.

(e) The authority to operate to third countries is subject to the condition that any service provided under 

these statements of authorization shall be consistent with all applicable agreements between the United 

States and the foreign countries involved. Furthermore, (i) nothing in the award of these statements of 

authorization should be construed as conferring upon American rights (including code-share, fifth 

freedom intermediate and/or beyond rights) to serve markets where U.S. carrier entry is limited unless 

American notifies the Department of its intent to serve such a market and unless and until the Department 

has completed any necessary carrier selection procedures to determine which carrier(s) should be 

authorized to exercise such rights; and (ii) should there be a request by any carrier to use the limited-entry 

route rights that are included in the authority of American by virtue of the statements of authorization 

granted here, but that are not then being used by American, the holding of such authority will not be 

considered as providing any preference for American in a competitive carrier selection proceeding to 

determine which carrier(s) should be entitled to use the authority at issue.3

(f) The authority granted here is specifically conditioned so that neither American nor LAN Ecuador shall 

give any force or effect to any contractual provisions between themselves that are contrary to these 

conditions.

We may amend, modify, or revoke the authority granted at any time without hearing at our discretion.

 1 See Appendix D for list of initial code-share points. 2 We expect this notification to be received within ten (10) days after such non-effectiveness or of such decision. 3 The notice in paragraph (c) above can be used for this notification. 
Appendix D

INITIAL LIST OF CODE-SHARE POINTS

American – LAN Ecuador Initial Code-Share Points

Code-shared routes Operating Carrier

Guayaquil, Ecuador-Miami, Florida XL / AA

Quito, Ecuador-Miami, Florida XL / AA

Guayaquil, Ecuador-New York, New York XL

Code-shared routes between

AA/AA* Ecuadorian Gateways and: Operating Carrier

Cuenca, Ecuador XL

Galapagos, Ecuador (GPS, SCY) XL

Guayaquil, Ecuador XL

Quito, Ecuador XL

Code-shared routes between

XL/XL* US Gateways and: Operating Carrier

Atlanta, Georgia AA

Boston, Massachusetts AA

Charlotte, North Carolina AA

Dallas/Ft. Worth, Texas AA

Denver, Colorado AA

Fort Lauderdale, Florida AA

Houston, Texas AA

New Orleans, Louisiana AA

New York, New York (LGA, JFK, EWR) AA

Philadelphia, Pennsylvania AA

Phoenix, Arizona AA

San Diego, California AA

San Francisco, California AA

Seattle, Washington AA

Note: AA includes American Eagle.