UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation on January 25, 2013

NOTICE OF ACTION TAKEN -- DOCKET DOT-OST-2012-0209 __________________________________________________________________________________________________________________

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 Applicants: AMERICAN AIRLINES, INC. (American)1 and TAM-LINHAS AEREAS, S.A. 

(TAM)

Date Filed: December 17, 2012, as supplemented December 18, 2012

Relief requested: 

American—Exemption from 49 U.S.C. § 41301 and a blanket statement of authorization under 14 CFR 

Part 212 to permit American to engage in reciprocal code-share services with TAM and display TAM’s 

(JJ*) designator code in conjunction with foreign air transportation of persons, property, and mail on 

flights operated by American or American Eagle between (1) points in the United States; (2) points in the 

United States and points in Brazil (either nonstop or via intermediate points in third countries); (3) points 

in the United States and points in third countries; and (4) points in Brazil and points in third countries.

TAM—Exemption from 49 U.S.C. § 41301 and a blanket statement of authorization under 14 CFR Part 

212 to permit TAM to engage in reciprocal code-share services with American and display American’s 

(AA*) designator code in conjunction with foreign air transportation of persons, property and mail on 

flights operated by TAM between (1) points in Brazil; (2) points in Brazil and points in the United States 

(either nonstop or via intermediate points in third countries); (3) points in Brazil and points in third 

countries; and (4) points in the United States and points in third countries.2

The Joint Applicants request that their statements of authorization be granted for an indefinite duration 

and further request a waiver of the 45-day advance filing requirement under 14 CFR Part 212.

The Joint Applicants request that, with respect to code-share notice requirements, the Department apply 

its Notice in the Matter of Blanket Notification of Codeshare Service to Open-Skies Partners and Points

dated February 9, 2009, even though they recognize that we are in a transition period to full 

implementation of U.S.-Brazil Open Skies. 

Applicant representatives: American: Francis C. Heil (202) 496-5642

 TAM: Marshall S. Sinick (202) 626-6651

 

 1 American Airlines states that it is also applying on behalf of its affiliated carriers American Eagle Airlines, Inc. and 

Executive Airlines, Inc. d/b/a American Eagle. 2 To the extent necessary, TAM also requests a special authorization under 14 CFR Part 216 allowing it to provide 

blind sector service between its authorized U.S. gateways and points in third countries, either nonstop or via 

intermediate points in third countries, for the carriage of TAM’s authorized Brazil-U.S. traffic in combination with 

Brazil-third country traffic. We have determined that no such special authorization is necessary because the 

contemplated blind sector services are encompassed in TAM’s existing exemption authority. See Notice of Action 

Taken dated April 27, 2012, in Docket DOT-OST-1997-2421. 
DOT Analyst: Shelita A. Johnson (202) 366-1226

Responsive pleadings: None filed.

3

DISPOSITION

Action: Approved in part, subject to conditions, remainder dismissed (see below)

Action date: January 25, 2013

Effective dates of exemption authority granted to American: January 25, 2013 – January 25, 2015. 

Effective dates of exemption authority granted to TAM: January 25, 2013 – January 25, 2014.

The statements of authorization granted to American and TAM are effective January 25, 2013, and shall 

remain in effect for an indefinite duration, subject to conditions.

Basis for approval (bilateral agreement/reciprocity): Air Transport Agreement between the United States 

and Brazil and the Memorandum of Consultations signed March 19, 2011

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

indicated:

X American’s Certificates of Public Convenience and Necessity 

 X Standard U.S. air carrier exemption conditions (attached as Appendix A) 

 X__ Standard foreign air carrier exemption conditions (attached as Appendix B) 

 X__ Code-share conditions (attached as Appendix C)

Special conditions/Remarks: 

We are dismissing the request of the Joint Applicants that the Department apply its Notice in the Matter 

of Blanket Notification of Codeshare Service to Open-Skies Partners and Points, dated February 9, 2009. 

When the U.S.-Brazil Open Skies Agreement is fully applied, the Joint Applicants may provide notice of 

their intent to conduct code-share services to points in Open Skies partner countries. Until such time, the 

Joint Applicants must provide code-share notice in accordance with paragraph (b) of Appendix C of this 

Notice.

We note that American has conducted a safety audit of TAM 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.

Action taken by: Paul L. Gretch, Director

 Office of International Aviation

 3 The Joint Applicants notified the Department that they polled interested parties served with the application, and 

that Delta commented that “it has no objection provided the Department is willing to grant similar blanket authority 

to other U.S.-Brazil code-share relationships." All other served parties indicated that they had no comment or 

objection.
____________________________________________________________________________________

Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) the 

applicants were qualified to perform their proposed operations; (2) our action was consistent with 

Department policy; (3) grant of the authority was consistent with the public interest; and (4) 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/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 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 B

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 charter 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 IIR 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;

(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 changes 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 the 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 of 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 it 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, or 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 authorized 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 operations 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 period 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.

12/2007
Appendix C

The statements of authorization granted here are also subject to the following conditions:

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

(b) American and/or TAM 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 notices should be filed in Docket DOT-OST-2012-0209.1

(c) American and TAM 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 notices should be filed in Docket DOT-OST-2012-0209.2

(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 the 

statement 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 this blanket statement 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 blanket 

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 TAM shall give any force 

or effect to any contractual provisions between themselves that are contrary to these conditions.

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

 1 The Joint Applicants also provide initial code-share notice at Appendix D. 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 (b) above can be used for this notification. 
Appendix D

Operating Carrier American / Marketing Carrier TAM

Miami/New York/Orlando/Dallas to/from

Albuquerque Detroit Los Angeles

Oklahoma

City

San Jose

Atlanta El Paso Maui Philadelphia San Juan

Austin Fresno Miami Phoenix San Francisco

Baltimore Hartford Minneapolis Portland Santa Barbara

Boise Honolulu Monterey Raleigh Seattle

Boston Houston Nashville Reno St. Louis

Charlotte Jacksonville Newark Sacramento Tampa

Chicago Kona New York Salt Lake City Tucson

Dallas Kauai New Orleans San Antonio Vail/Eagle

Denver Las Vegas Orlando San Diego Washington

Miami to/from

Belo Horizonte Recife Salvador

Brasilia Rio de Janeiro Sao Paulo

Cancun Mexico City Manaus

Montreal Toronto

New York to/from

Rio de Janeiro Sao Paulo

Montreal Toronto

Dallas to/from

Rio de Janeiro Sao Paulo
Operating Carrier TAM / Marketing Carrier American

Belo Horizonte/ Brasilia/ Manaus/ Recife/ Rio de Janeiro/ Salvador and

São Paulo to/from

Aracaju Curitiba Joinvile Palmas Salvador

Belém Florianopolis Londrina Porto Alegre Sao Jose do Rio Preto

Belo Horizonte Fortaleza Macapá Porto Seguro Sao Luiz

Boa Vista Goiania Maceio Porto Velho Sao Paulo

Brasilia Iguassu Falls Manaus Recife Teresina

Campinas Ilheus Marabá Ribeirao Preto Uberlandia

Campo Grande Imperatriz Natal Rio Branco Vitoria

Cuiaba Joao Pessoa Navegantes Rio de Janeiro

Sao Paulo and Rio de Janeiro to/from

Miami New York Orlando

Belo Horizonte/ Brasilia/ Manaus to/from

Miami