UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC



### Issued by the Department of Transportation on December 13 , 20 1 1

NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

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__________________________________________ _______________________________________________________________ ____________ 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 Ecuad or) filed 11/14 /11 for:

XX E xemption 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 S tatement of authorization in order to engage in the following code

- share services:

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

Ecuador’s “ XL ” designator code in conjunction with fore ign 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

cou ntries).

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 tr ansportation 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 advan ce filing requirement under 14 CFR Part 212

Applicant rep s : Carl B. Nelson (202) 496

- 5647 ( A merican ) and Charles J. Simpson (202) 973

- 7939 ( LAN Ecuador )

DOT Analyst: Brett D. Kruger (202) 366

- 8025

DISPOSITION

XX Approved request of American for exemp tion 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

cond itions, 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 , 20 1 1

, through December 13 , 201 3

.

The above action s grant ing statements of authorizat ion to the referenced carriers are effective: Dec ember

13

, 20 1 1 , and will remain in effect indefinitely, subject to c onditions.

The above action granting a waiver of the 45

- day advance filing requirement under 14 CFR Part 212 i s 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, ther e 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 Govern ment 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, S eattle, 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 selec t 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 autho rity 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 s afety 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 Departmen t'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 publi c interest; and (3) grant of

th e 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 airport s may be served by code

- share service only.To the extent not granted or dismissed , we denied all req uests 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

De partment’s regulations, 14 CFR §385.30, may file their petitions within sev en ( 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 electr onic 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 appli cant(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 th at 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 a nd 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 statement s of authorization granted will remain in effect only as long as (i) American and LAN

Ecuador continue to hold the necessary underlying authority to op erate 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 ne w 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 not ice should be filed in Docket DOT

OST

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. 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

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. 2

( d ) The code

- sharing operations conducted under this authority must comply with 14 CFR 257 and with any amendments to the Dep artment’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 jo urney 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 carri ed 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 servic e provided under

the se statement s 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 th ese statement s of

authorization should be constr ued 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 incl uded in the authority of American by virtue of the statement s 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 carrie r 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 s hall give any force or effect to any contractual p rovisions 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

- S hare 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 Car rier

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. W orth, 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 A A Seattle, Washington AA

Note: AA includes American Eagle

.