BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

) 

Joint application of ) 

) 

AMERICAN AIRLINES, INC. AND ) 

AIR TAHITI NUI ) DOT-OST-2012-0092 

) 

for an Amended Statement of Authorization ) 

pursuant to 14 C.F.R. Part 212 (blanket ) 

codesharing) ) 

JOINT APPLICATION OF AMERICAN AIRLINES, INC. AND AIR TAHITI NUI 

FOR AN AMENDED STATEMENT OF AUTHORIZATION 

For American Airlines, Inc. 

Howard Kass 

Vice President — Regulatory Affairs 

Robert A. Wirick 

Managing Director, Regulatory and 

International Affairs 

Abigail Donovan 

Director, Congressional and Federal Affairs 

American Airlines, Inc. 

1101 17th Street, N.W. 

Washington, D.C. 20036 

(202) 326-5153 

howard.kassn,aa.com 

robert.wirickkaa.com 

abigail.donovan a aa.com 

For Air Tahiti Nui 

Evelyn D. Sahr 

Drew M. Derco 

ECKERT SEAMANS 

CHERIN & MELLOTT, LLC 

1717 Pennsylvania Ave., NW 

12thFloor 

Washington, D.C. 20006 

Tel: (202) 659-6622 

Fax: (202) 659-6699 

Attorneys for Air Tahiti Nui 

DATED: March 10, 2015 
BEFORE TH 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

) 

Joint application of ) 

) 

AMERICAN AIRLINES, INC. AND ) 

AIR TAHITI NUI ) DOT-OST-2012-0092 

) 

for an Amended Statement of Authorization ) 

pursuant to 14 C.F.R. Part 212 (blanket ) 

codesharing) ) 

) 

JOINT APPLICATION OF AMERICAN AIRLINES, INC. AND AIR TAHITI NUI 

FOR AN AMENDED STATEMENT OF AUTHORIZATION 

American Airlines, Inc. ("American") 1and Air Tahiti Nui (together "the Joint 

Applicants") hereby j ointly apply for an amended statement of authorization under 14 

C.F.R. Part 212 to permit American to display the TN* designator code of Air Tahiti Nui 

on American-operated flights (1) within the United States in conjunction with Air Tahiti 

Nui's services in foreign air transportation; and (2) between the United States and third 

countries (to the extent permitted by applicable bilateral agreements). The authorization 

is requested for an indefinite period. The Joint Applicants plan to begin marketing this 

service as soon as all governmental approvals are in place and request expedited approval 

of this amendment. 2 

In support of this application the Joint Applicants state the following: 

l. The Department, in this docket on July 5, 2012, granted Air Tahiti Nui a 

Statement of Authorization to display the AA* designator code between Los Angeles, 

1Includes American's affiliate Envoy Air, Inc., formerly lrnown as American Eagle Airlines, Inc. 

2The Joint Applicants request a waiver, to the extent necessary, of the 45-day advance filing requirement 

contained in 14 C.F.R. §212.10(d)(2). 
California and Papeete, French Polynesia. 3American was granted similar authority to 

display the TN* designator code on American-operated flights between Los Angeles, 

California (LAX) and specified U.S. points in connection with foreign air transportation 

offered by Air Tahiti Nui.4The Joint Applicants now seek to broaden this authority. 

This amendment will facilitate expansion of the Joint Applicant's current codeshare 

operation by permitting American Airlines to place the TN* designator code on 

American-operated flights between LAX and new U.S. points as well as between LAX 

and points in third countries in conjunction with foreign air transportation offered by Air 

Tahiti Nui. 

2. Air Tahiti holds all the necessary underlying economic authority to 

provide the services contemplated herein. Specifically, Air Tahiti Nui holds a Foreign 

Air Carrier Permit that allows it to provide scheduled service from points behind French 

Polynesia, via French Polynesia, and intermediate points to the U.S. and beyond. 5 

American Airlines also holds the necessary underlying economic authority for the service 

contemplated herein. 6 

3. The proposed operations will be conducted in accordance with the 

attached American Airlines-Air Tahiti Nui codeshare agreement (Exhibit A) and related 

amendments. 7 

3This authority was subsequently expanded to permit Air Tahiti Nui to display the AA* designator code on 

flights operated between Los Angeles, California and Auckland, New Zealand via Papeete, French 

Polynesia. See Notice of Action Taken, Docket DOT-OST-2012-0092, August 27, 2013. 

4Following this original approval, the Joint Applicants notified the Department of additional codeshare 

points on August 14, 2012 and February 18, 2015. 

5See Order 2003-9-27 Issuing Foreign Carrier Permit, dated September 27, 2003. 

6 See American Airlines Open Skies Certificate issued by Order 2007-4-2, dated Apri12, 2007. 

7 As is customary for requests of this nature, commercially sensitive information has been redacted from 

the codeshare agreement. 
4. Approval of this application is fully consistent with the terms of the U.S.- 

France Air Transport Agreement, as amended, which remains in effect for French 

Polynesia. 

5. The requested reciprocal codeshare authorizations are also consistent with 

the public interest. See Statement of United States International Air Transportation 

Policy, 60 Fed. Reg. 21841, 21842 (May 3, 1995) (recognizing the public benefits offered 

by codeshare arrangements between U.S. and foreign carriers). Grant of this application 

will expand travel opportunities between the U.S. and Tahiti. 

6. Pursuant to the Department's Notice In the Matter of Blanket Notification 

of Code-Share Service to Open-Skies Partners and Points, dated February 9, 2009, the 

Joint Applicants hereby give blanket notice of reciprocal code-share services between all 

U.S. points and between U.S. points and points in any open-skies country. 

7. American and Air Tahiti Nui will conduct all of their codeshare operations 

in compliance with 14 CFR Part 257. 

8. In response to the Department's letter of June 1, 1995, to participants in 

the Civil Reserve Air Fleet Program ("CRAF"), American states that the codeshare 

arrangement at issue here will have no impact on American's CRAF commitments. 

9. A code-share safety audit of Air Tahiti Nui has been conducted and the 

results were submitted to the FAA in connection with the Joint Applicant's original 

application. 

The Joint Applicants request prompt approval of this application in order to 

facilitate the initiation of the American/Air Tahiti Nui codeshare services described 

above. 
Respectfully submitted, 

~ 

Howard Kass 

Vice President — Regulatory Affairs 

Robert A. Wirick 

Managing Director, Regulatory and 

International Affairs 

Abigail Donovan 

Director, Congressional and Federal Affairs 

American Airlines, Inc. 

1101 17th Street, N.W. 

Washington, D.C. 20036 

(202) 326-5153 

howard.kassk aa. com 

robert. wirick(a.) aa. com 

abigail. donovan,,aa. com 

~ 

Evelyn b. Sahr 

Drew M. Derco 

ECKERT SEAMANS 

CHERIN & MELLOTT, LLC 

1717 Pennsylvania Ave., NW 

12thFloor 

Washington, D.C. 20006 

Tel: (202) 659-6622 

Fax: (202) 659-6699 

Attorneys for Air Tahiti Nui 

March 10, 2015 
CERTIFICATE OF SERVICE 

I certify that, on March 10, 2015, I caused to be served a copy of the foregoing 

Application of American Airlines, Inc. for an Amended State of Authorization, by email 

upon those addressees listed below: 

englets@state.gov (Department of State) 

cristinasa@state.gov (Department of State) 

brian.hedberg@dot.gov (Department of Transportation) 

todd.homan@dot.gov (Department of Ti°ansportation) 

peter.irvine@dot.gov (Department of Transportation) 

laura.remo@dot.gov (Departnzent of Transportation) 

brett.kruger@dot.gov (Department of Transportation) 

john.s.duncan@faa.gov (Federal Aviation Administration) 

dan.weiss@united.com (United) 

steve.morrissey@united.com (United) 

gmurphy@crowell.com (Counsel for United) 

sascha.vanderbellen@delta.com (Delta) 

jhill@cooley.com (Counsel for JetBlue and Hawaiian) 

perkmann@cooley.com (Counsel for JetBlue and Hawaiian) 

jeremy.ross@alaskaair.com (Alaska) 

dheffernan@cozen.com (Counsel for Alaska) 

jyoung@yklaw.com (Counsel for Spirit) 

dkirstein@yklaw.com (Counsel for Spirit) 

bob.kneisley@wnco.com (Southwest) 

leslie.abbott@wnco.com (Southwest) 

john.fredericksen@suncountry.com (Sun Country) 

thomas.ting@suncountry.com (Sun Country) 

matwood@cozen.com (Counsel for Frontier) 

stephen.lachter@cozen.com (Counsel for Frontier) 

rpommer@atlasair.com (Atlas) 

anita.mosner@hklaw.com (Counsel for UPS) 

jennifer.nowak@hklaw.com (Counsel for UPS) 

f ; 

Sylvia Br~ant 
EXHIBIT A 
CONFIDENTIAL 

CODESIIARE AGREEMENT 

between 

AMERICAN AIRLINES, INC. 

and 

AIR TAHITI NUI 

Air Tahiti Nui-AA CSA Final ] 

/`Ct'5 
TABLE OF CONTENTS 

1. DEFINITIONS .................................................................................................................................1 

2. CODESIIARE SERVICE ................................................................................................................1 

3. IIvLPLEMENTATION AND EXPENSES ........................................................................................3 

4. INVENTORY CONTROL AND PROCEDURES ..........................................................................4 

5. MARKETING AND PRODUCT DISPLAY ...................................................................................5 

6. TRAFFIC DOCUMENT ISSUANCE AND FINANCIAL SBTTLEMENT ...................................6 

7. FACILITIES ....................................................................................................................................7 

8. TRAINING ......................................................................................................................................8 

9. SECURITY ......................................................................................................................................8 

10. SAFETY AND MAINTENANCE ...................................................................................................8 

11. FREE AND REDUCED RATE TRANSPORTATION ..................................................................9 

11 OTHER IvIARKETING PROGRAMS .............................................................................................9 

13. TRADEMARKS AND CORPORATE IDENTIFICATION ...........................................................9 

14. REPRESENTATIONS AND WARRANTIES ..............................................................................10 

15. GOVERNMENTAL APPROVALS ..............................................................................................1 l 

16. TERM .............................................................................................................................................12 

17. INDEMNIFICATION ....................................................................................................................14 

18. INSURANCE .................................................................................................................................17 

19. TAXES ...........................................................................................................................................18 

20. JOINT MANAGEMENT COMMITTEE ......................................................................................19 

21. FORCE MAJEURE ........................................................................................................................20 

22. GOVERNING LAW AND DISPUTE RESOLUTION .................................................................20 

23. COVENANT TO COMPLY WITH ALL LAWS .........................................................................21 

24. PUBLICITY ...................................................................................................................................22 

25. CONFIDENTIALITY ....................................................................................................................22 

26. ASSIGNMENT ..............................................................................................................................23 

27. SEVERABILITY ...........................................................................................................................23 

28. EXCLUSIVITY .............................................................................................................................23 

29. FLTRTHER ASSURANCES ...........................................................................................................24 

30. MISCELLANEOUS .......................................................................................................................25 

31. NOTICES .......................................................................................................................................26 

u 
CODESHARE AGREEIIZENT 

This CODESHARE AGREEMENT (this "Agreement"), dated as of May 4t, 2012, is 

between American A'rrlfnes, Inc., a corporation organized under the laws of the State of 

Delaware, United States of America, having its principal offce at 4333 Amon Carter 

Boulevard, Fort Worth, Texas 76155 United States of America ("American"), 

and Air Tahiti Nui, a corporation organized under the laws of Tahiti, French Polynesia, 

having its principal office at Rue Paul Gauguin, P.O. Box 1673, Papeete, Tahiti, French 

Polynesia ("TN"). 

In consideration of the mutual covenants and promises in this Agreement, American and TN hereby agree 

as follows: 

DEFIlVITIONS 

1.1 Terms with their initial letters capitalized shall have the meanings ascribed to them in 

Annex A of this Agreement or where they are elsewhere defined herein (including the 

Annexes hereto). Such ascribed meanings shall be equally applicable to both the singular 

and plural forms of such terms. American and TN may each be referred to as a"Party" 

and may collectively be referred to as the "Parties". 

1.2 The Parties agree that accepted industry procedures and agreements relating to the 

interlining of passengers and baggage, including those set forth in IATA Resolution 780 

Interline Traffic Agreement — Passenger for all international carriage shall apply to the 

provision of air transport and the related transactions contemplated by this Agreement, 

except to the extent that they are inconsistent or conflict with the terms of this 

Agreement. 

2. CODESIIARE SERVICE 

2.1 The Parties shall mutually designate certain flights on which the Parties shall place their 

respective Codes (each, a"Codeshared Flight"), which may include flights operated by 

their Authorized Affiliates, serving the city-pairs (each city-pair, a"Codeshared Route") 

identified in writing by the Parties from time to time without formally amending this 

Agreement. The initial list of Codeshared Routes on which the Parties and their 

Authorized Affiliates may codeshare is attached hereto as Annex B. The Parties intend to 

implement the planned codesharing in multiple phases subject to obtaining all required 

Governmental Approvals. 

2.2 Detailed procedures for implementing this Agreement will be set forth in the Procedures 

Manual, which will be prepared by the Parties in conjunction with this Agreement. The 

Procedures Manual, including any amendments or supplements thereto agreed in writing 

between the Parties from time to time, shall be incorporated by reference into and made a 

part of this Agreement; provided, however, that the terms of this Agreement shall prevail 

in the event of a conflict between a provision of this Agreement and any provision of the 

Procedures Manual. 

2.3 The Operating Carrier for each Codeshared Flight shall provide to the Codeshared 

Passengers, at a minimum, the same standard of customer service as it provides to its own 

passengers traveling in the same class of service, which standard shall, in any event, be 
reasonably in accordance with the standards of customer service established by the 

Marketi.ng Carrier for the comparable class of service on its flights. Minimum customer 

service standards, general passenger service procedures, and policies for the Codeshared 

Flights, including baggage services, are detailed in Annex C and the Procedures Manual. 

2.4 The Parties shall use commercially reasonable efforts to coordinate their service 

schedules to maximize the convenience, and minimize the waiting time of passengers 

making connections between the Codeshared Flights and other flights operated by the 

Parties; provided, however, that neither Party is obligated to operate specific flights or 

service schedules and each Parry retains the right to determine the service schedules of its 

own fli.ghts. To ensure a high standard of passenger service, the Parties agree that the 

dependability and the operation completion factor for Codeshared Flights must meet the 

minimum standards set forth in Annex D. 

2.5 The Parties may add or discontinue Codeshared Flights, as may be mutually agreed, 

without formally amending this Agreement. Either Party may, in its sole discretion, 

discontinue Codeshared FIights without formally amending this agreement. The Parties 

agreement to effect such changes shall be evidenced by both the Marketing Carrier and 

the Operating Carrier publishing such changes in the Airline Guides, CRSs or 

Reservations Systems. The Operating Carrier reserves the right to discontinue any 

specific route, flight number, equipment or schedule. In the event of such discontinuation, 

the Operating Carrier shall notify the Marketing Carrier as soon as reasonably possible 

and the Marketing Carrier shall cooperate in publishing the resulting changes to affected 

Codeshared Flights in the Airline Guides, CRSs, Reservations Systems, and other sources 

of airline schedule information. 

2.6 Except as otherwise provided in the Procedures Manual, in the event of any flight 

cancellation or other schedule irregularity, involuntary rerouting or denied boarding by 

the Operating Carrier with respect to a Codeshared Flight, the Operating Carrier shall: 

(a) ensure that all passengers shall be handled in accordance with the same policies 

and procedures to avoid any discrimination against a Codeshared Passenger; 

(b) at its own cost and expense (except to the extent such irregularity, involuntary 

rerouting or denied boarding is caused by the Marketing Carrier), accommodate 

and/or pay denied boarding compensation or otherwise compensate Codeshared 

Passengers, in the same manner as its own passengers and subject to the 

provisions of the Procedures Manual and Applicable Law; and 

(c) notify the Marketing Carrier in accordance with the Procedures Manual. 

2.7 The Conditions of Carriage of the Marketing Carrier, including its limits of liability to 

passengers, shall govem the transportation of Codeshared Passengers, and the Conditions 

of Carriage of the Operating Carrier, including its limits of liability to passengers, shall 

apply to those passengers traveling on the Codeshared Flights under the Code of the 

Operating Carrier. The respective Conditions of Carriage of the Parties shall be notified 

to the passengers to the extent and in the manner required by Applicable Law, rules and 

regulations. Notwithstanding anything in this Section 2.7, the liability of the Parties to 

each other with respect to passenger claims shall be governed by Sections 17 and 18. 

2 
2.8 (a) The Party that is the Operating Carrier (or whose Authorized Affiliate is the 

Operating Carrier) shall ensure that each Codeshared Flight shall be operated 

under its operating certificate or under the operating certificate of an Authorized 

Affiliate. 

(b) If there is a change in the carrier scheduled to operate a Codeshared Flight, the 

Operating Carrier shall promptly notify the Marketing Carrier of such change. 

The Marketing Carrier shall take all appropriate steps to ensure that Codeshared 

Passengers are notified of the change as soon as possible. If the Operating 

Carrier fails to notify the Marketing Carrier of a change or a change occurs 

within 36 hours of scheduled departure, the Marketing Carrier shall be deemed to 

have insufficient time to notify Codeshared Passengers of the change. The 

Marketing Carrier may thereupon continue to notify Codeshared Passengers of 

the change in accordance with its customer service policies if it is able to do so 

but the Operating Carrier shall take primary responsibility for notifying all 

Codeshared Passengers still booked under the Marketing Carrier Code of the 

change at time of check-in. In the event re-accommodation is necessary either 

because the substituted carrier is not an Authorized Affiliate, or because a 

Codeshared Passenger who is notified of such a change elects not to travel on the 

substituted carrier, the notifying carrier shall at its own cost and expense reaccommodate the Codeshared Passenger unless the passenger seeks a refund in 

which event the Marketing Carrier shall be responsible for making such refund in 

accordance with its fare rules, conditions of carriage and Applicable Law. 

IMPLEMENTATION AND EXPENSES 

3.1 Implementation of this Agreement shall be subject to the following conditions precedent: 

(a) the execution of a Special Prorate Agreement and a Mutual Emergency 

Assistance Agreement, in form and substance satisfactory to American and TN; 

(b) receipt by American and TN of all necessary Government Approvals; 

(c) successful completion by TN of the 1ATA Operational Safety Audit (IOSA) 

registration; and 

(d) successful implementation and testing of codeshare (EDIFACT) and passenger 

processing automation. 

3.2 Each Party shall bear its own costs and expenses of performance under this Agreement, 

including, without limitation, costs and expenses associated with the following, unless 

otherwise agreed in writing between the Parties: 

(a) any systems to support the automation of procedures and settlement relating to 

the Codeshared Flights (e.g., PNR exchange, yield management, revenue 

accounting, etc.), including routine maintenance thereof, and 

(b) roadside, exterior, check-in, concourse, gate and baggage service signage placed 

at airports and city ticket offices in locations served by the Codeshared Flights in 

order to facilitate travel on the Codeshared Flights. 
3.3 Each Party shall retain all right, title and interest in systems, software, signage, 

equipment and facilities funded by it. Ownership of jointly funded items shall be 

determined by the Parties in advance of eacb specific project. 

4. INVENTORY CONTROL AND PROCEDURES 

41 The availability of Marketing Flights will be controlled by standard AVS (availability 

status) of the Operating Carrier. The Marketing Carrier will have access to the Operating 

Carrier's local inventory class availability through an automated computerized interface, 

which both Parties will maintain throughout the term of this Agreement, to expedite the 

sale of seat inventory on the Codeshared Flights. Detailed procedures for implementing 

and maintaining seat inventory access are contained in the Procedures Manual. 

4.2 The Parties will map inventory classes of the Marketing Cazrier to inventory classes of 

the Operating Carrier for the Codeshared Flights, in accordance with the Procedures 

Manual. The Parties will endeavor to map the average coupon value of the Marketing 

Carrier's inventory classes to comparable classes of the Operating Carrier to provide 

similar access for bookings made by the Marketing Carrier for passengers yielding 

comparable revenue values; it being understood, however, that the Operating Carrier 

retains ultimate control over the opening, closing and other management of seat inventory 

availability on Codeshared Flights. Each Party shall use commercially reasonable efforts 

to provide equal inventory access to Codeshared Passengers in inventory classes where 

such passengers yield comparable revenues as the Operating Carrier's passengers. 

43 This Section 4.3 shall govern the published fares of the Marketing Carrier offered on 

Codeshared Flights as follows: 

(a) For Routes served by only one Party, or its Affiliates, fares and fare rules filed by 

the Marketing Carrier for codeshare itineraries will match those of the Operating 

Carrier. 

(b) For Routes served by both Parties or their Affiliates, the fares and fare rules filed 

by the Marketing Carrier will match either those filed for its own flights or those 

filed by the Operating Carrier. 

(c) For Routes where one Party, or its Affiliates, offers non-stop service and the 

other Parry, or its Affiliates, offers connecting service, the Marketing Carrier on 

the non-stop service will match the fares and fare rules filed by the Operating 

Carrier on the non-stop service. 

(d) For Routes where the Marketing Carrier on a one-stop service also operates its 

own non-stop service, the Marketing Carrier will match either the fares and fare 

rules of the one-stop operator or apply the fares and fare rules of its own non-stop 

service. 

(e) In the event of the Marketing Carrier's breach of Sections 4.3(a), (b), Cc) or (d), 

the Operating Carrier shall have the right, in its sole discretion, after one day's 

prior written notice to the Marketing Carrier, to restrict or close the inventory 

access of the Marketing Carrier or remove the Code of the Marketing Carrier 

from the flight(s) in question, or to temporarily remove its own Code from the 
flight(s) operated by the defaulting Party on the Routes where the breach 

occurred. 

(f) Nothing in this Agreement shall prevent the Marketing Carrier from (i) initiating 

and operating its own service in any origin and destination city pair at any time; 

or (ii) offering any fare(s), discount(s) or rebate(s) of any kind for interline 

itineraries valid on airlines, other than American or TN, on any origin and 

destination city pair. 

4.4 Each Party shall establish fares and rates independently, subject to the provisions of the 

applicable air transport agreements between the United States and French Polynesia, on 

the one hand, and the governments of any country to which the Parties shall provide 

service pursuant to this Agreement, on the other hand. 

MARK>F;TING AND PRODUCT DISPLAY 

5.1 The Codeshared Flights will be marketed and promoted by the Marketing Carrier under 

its Code. Each Parry shal] ensure that its respective advertising and promotions comply 

with all applicable governmental laws, rules and regulations of any applicable Competent 

Authority. The Marketing Carrier shall comply with 14 C.F.R. Parts 257 and 258, and 

any other applicable rules regarding the disclosure and holding out of Codeshared Flights 

provided for herein in the jurisdiction where such rules apply. The Marketing Carrier 

shall disclose to the extent required by Applicable Law through industry-approved 

schedule and selling mechanisms (as defined in the Procedures Manual), to consumers, 

travel agents and others selling the Codeshared Flights, as well as through any 

advertising, point-of-sale disclosures, and any other appropriate means, that each 

Codeshared Flight is a flight of and operated by the Operating Carrier. Such inforrnation 

shall be given before a reservation is made and in any event at the earliest reasonable 

opportunity and before the passenger arrives at the airport, in accordance with Applicable 

Law. In addition, each Party shall use commercially reasonable efforts to implement 

procedures to disclose the Operating Carrier and the appropriate departure and arrival 

terminal at the earliest possible opportunity and in particular at the point of sale. 

5.2 The Marketing Carrier shall identify the Codeshared Flights, in accordance with 

Applicable Law, in Airline Guides, CRSs, Reservations Systems and other sources of 

airline schedule information using the Marketing Carrier's Code. Any costs incurred for 

the publication of Marketing Flights or connections to and from such flights in Airline 

Guides, CRSs, Reservation Systems and other sources of airline schedule information 

shall be borne by the Marketing Carrier. Each Pariy shall include the Codeshared Flights 

in its Reservations Systems. 

5.3 If the Marketing Carrier is not authorized to offer air transport services in a particular 

local Codeshared Route, the Marketing Carrier shall file its standard schedule data for the 

Codeshared Flights on such Codeshared Route using the traffic restriction code "O" or 

"Y" (or any successor code), as appropriate, as defined in the IATA Standard Schedules 

Information Manual, Appendix G, in order to suppress the display of the Marketing 

Carrier's Codeshared Flights on such local Codeshared Route(s) (i.e., the Marketing 

Carrier's Codeshared Flights on such route will be limited to passengers connecting 

online to another flight marketed and/or operated by the Marketing Carrier). 
5.4 Unless otherwise agreed, all information and advertising materials produced with the aim 

of promoting the Codeshared Flights shall clearly identify both Parties. All joint 

advertising and promotion of the Codeshared Flights shall be subject to prior agreement 

between the Parties and the costs of such joint advertising and promotion sha11 be shared 

based on prior agreement. 

5.5 Each Party may use its own flight number in referencing the Codeshared Flights except 

that only the Operating Carrier's flight number shall be used in actual flight operations 

(e.g., air traffic control). 

TRAFFIC DOCUMENT ISSUANCE AND FINANCIAL SETTLEMENT 

6.1 Passenger traffic documents for use on the Codeshared Flights may be issued by either 

Party, or by third parties with whom the Parties from time to time have interline traffic 

agreements. 

6.2 All Marketing Carrier Flight Coupons honored on Codeshared Flights shall be uplifted by 

the Operating Carrier, whicb is responsible for processing and billing of such documents 

as follows: 

(a) The Operating Carrier shall bill uplifted coupons to the Ticketing Carrier using 

the normal interline settlement process of the IATA Clearing House. Subject to 

Section 6.2(b) and 6.2 c. Marketing Carrier Flight Coupons shall be treated for 

proration and billing purposes as if they showed the Operating Carrier's 

designator Code in the Carrier Code Box of the Marketing Carrier Flight 

Coupons. Such Marketing Carrier Flight Coupons will be prorated and billed 

according to the Special Prorate Agreement between the Operating Carrier and 

the Ticketing Carrier, or, in the absence of an applicable Special Prorate 

Agreement, in accordance with the IATA Prorate Manual-Passenger 

("IATA PMP"), as applicable. 

(b) If the Operating Carrier does not have an interline traffic agreement with a 

Ticketing Carrier that issued a Marketing Carrier Ticket, and is unable to obtain 

satisfactory settlement, the Operating Carrier may bill such coupon to the 

Marketing Carrier as an exceptional item (i.e., via correspondence) and such 

coupons shall be valued for billing and proration purposes according to the IATA 

PMP. 

(c) If the Operating Carrier has an interline traff c agreement with a Ticketing 

Carrier that issued a Marketing Carrier Ticket but is unable to obtain satisfactory 

settlement, the Marketing Carrier shall assist the Operating Carrier in settling 

such account but shall not be liable for any losses incurred due to an 

unsatisfactory settlement. 

6.3 For Codeshared Flights, the Operating Carrier shall on no less than a monthly basis 

determine the gross prorated value (as determined. in accordance with Section 6.2(a)) of 

Marketing Carrier Flight Coupons uplifted by it during the previous month and calculate 

the cornmission (the "Codeshare Commission") by multiplying such coupon values by 

the applicable commission percentages set forth in Annex E. The Operating Carrier shall 

credit the account of the Marketing Carrier on a monthly basis for the aggregate 

Codeshare Commission through the IATA Clearing House. The Operating Carrier shafl 
provide supporting data to the Marketing Carrier no later than thirty (30) days after the 

end of the clearance rnonth (e.g., if the Operating Carrier were to issue an October 2012 

clearance month credit to the Marketing Carrier on November 23, 2012, then supporting 

data should be provided to the Marketing Carrier by November 30, 2012). The 

Marketing Carrier shall be entitled to review and, if appropriate, dispute, via 

correspondence, the Operating Carrier's calculation of the Codeshare Commission; 

provided, however, the Operating Carrier must receive note of such dispute within six (6) 

months from the relevant clearance month. Any resulting payments will be processed 

through the IATA Clearing House. 

6.4 The Ticketing Carrier, whether it be the Marketing Carrier or the Operating Carrier, shall 

receive the Interline Service Charge and/or Ticket Handling Fee, as provided in the 

Interline Traffic Agreement. In the event the Ticketing Carrier is a third party, the 

Ticketing Carrier shall receive the Interline Service Charge and/or Ticket Handling Fee 

as agreed between the Operating Carrier and such third party. 

6.5 To support interline billing by the Operating Carrier to third-parties and involuntary 

rerouting and refunding of Marketing Carrier Tickets by the Operating Carrier, the 

Marketing Carrier hereby waives endorsement requirements for the Operating Carrier 

with respect to all Marketing Carrier Flight Coupons, including: (i) all Marketing Carrier 

Flight Coupons for use on Codeshared Flights operated by TN between the United States 

and French Polynesia, or within French Polynesia, issued on American-AA (001) ticket 

stock, or on other ticket stock, but naming American in the Carrier Code Box, and (ii) all 

Marketing Carrier Flight Coupons for use on Codeshared Flights operated by American 

within the United States, or within the Americas (i.e., North America, South America, 

Central America and the Caribbean), issued on TN (244) ticket stock, or on other ticket 

stock, but naming TN in the Carrier Code Box. Unless otherwise agreed in writing by the 

Parties, such waiver shall be effective thirty (30) days before the Implementation Date, 

and shall remain in effect for ninety (90) days after the Termination Date of this 

Agreement to facilitate the reaccommodation of any Codeshared Passengers ticketed for 

travel after the Termination Date. 

6.6 Differences that may appear after the billing process has been completed shall be 

rectified by written correspondence or a meeting between the Parties. 

6.7 In a suff cient amount of time before the Implementation Date, the Marketing Carrier will 

file with ATPCO a TCN Codeshare Agreement, in which the Marketing Carrier will 

provide the range of its Marketing Flight numbers. The Marketing Carrier will be 

responsible, throughout the term of the Codeshare Agreement, for updating its Marketing 

Flight numbers with ATPCO. 

FACILITIES 

The Parties acknowledge the importance of maintaining functional and accurate signs identifying the 

Operating Carrier and the Marketing Carrier, as appropriate, to facilitate passenger convenience and to 

avoid passenger confusion at airports served by the Codeshared Flights. The Parties shall cooperate on 

the placement of such signs, subject to the approval of the relevant airport authority or other lessors. 

7 rt t 3 
8.1 Except as otherwise agreed, each Party shall provide or arrange, at its own cost and 

expense, all initial and recurring training of its personnel to facilitate the Codeshared 

Flights and operations at airports served by the Codeshared Flights, including 

reservations and ticket offices, and other points of contact between the Parties and the 

public. This training shall include passenger service, reservations and sales activities, 

and in-flight service involving the Codeshared Flights, all as more fully described in the 

Procedures Manual. 

8.2 The Parties shall share any training materials (except trade secrets and legal advice) 

developed to support the Codeshared Flights. All intelIectual property or similar rights to 

any materials exchanged shall remain with the Parky who originally developed such 

materials. 

SECURITY 

9.1 The Parties shall cooperate in matters of security procedures, requirements, and 

obligations at all airports served by the Codeshared Flights. 

9.2 The Operating Carrier reserves the right to apply the provisions of its own security 

programs to the carriage of all passengers, baggage and cargo on board the Codeshared 

Flights, provided that such security programs shall, at a minimum, comply with the 

standards set forth by the relevant Competent Authorities and be reasonably acceptable to 

the Marketing Carrier, with the understanding that safety and security are of the utmost 

importance to both carriers. Such provisions may include any then applicable procedures 

used for the physical screening of passengers, baggage or cargo, interviewing of 

passengers, and/or selective loading of baggage or cargo. 

9.3 The checking of the travel documents of each Codeshared Passenger and the handling of 

Codeshared Passengers who are Inadmissible Passengers (as such term is defined in 

IATA Resolution 701, as modified, supplemented or amended from time to time) shall be 

done in accordance with the procedures outlined in the Procedures Manual. 

10. SAFETY AND MAINTENANCE 

10.1 The Operating Carrier has operational control of the aircraft and final authority and 

responsibility concerning the operation and safety of the aircraft and its passengers, 

including Codeshared Passengers. The Operating Carrier shall employ the same high 

standards of safety, security and loss prevention policies on the Codeshared Flights as on 

its own flights. Emergency support shall, at a minimum, be in accordance with the 

Mutual Emergency Assistance Agreement in force between the Parties. 

10.2 The Operating Carrier shall have sole responsibility for the maintenance of its leased and 

owned aircraft, and for other equipment used in connection with the Codeshared Flights. 

Maintenance of such aircraft and equipment must, at a minimum, comply with the 

standards imposed by the relevant aeronautical authorities. 

10.3 The Marketing Carrier sha11 have the right, at its own cost, to review and observe the 

Operating Carrier's operations of Codeshared Flights, and/or to conduct a reasonable 

safety and/or service review of the Operating Carrier's operations, manuals, and 
procedures reasonably related to the Codeshared Flights (the "Marketing Carrier 

Reviews"), at such intervals as the Marketing Carrier shall reasonably request. The 

Marketing Carrier Reviews shall be coordinated with the Operating Carrier so as to avoid 

disruptions to the Operating Carrier's operations. Such reviews will be limited to areas 

that reasonably relate to the Operating Carrier's safety standards and service obligations 

under this Agreement. NOTWITHSTANDING THE FOREGOING, THE 

MARKETING CARRIER DOES NOT UNDERTAKE ANY RESPONSIBILITY OR 

ASSUME ANY LIABILITY FOR ANY ASPECT OF THE OPERATING CARRIER'S 

OPERATIONS, NOR SHALL THE OPERATING CARRIER BE ENTITLED TO 

ASSERT ANY RESPONSIBILITY OR ASSUMPTION OF LIABILITY ON THE 

PART OF THE MARKETING CARRIER FOR T'HE OPERATING CARRIER'S 

OPERATIONS. 

11. FREE AND REDUCED RATE TRANSPORTATION 

Unless otherwise provided by relevant agreements between the Operating Carrier and other parties, 

including the Marketing Carrier, neither the Marketing Carrier, nor the Operating Carrier, nor any third 

parry, shall be entitled to ticket industry non-revenue or discounted (i.e., agency discount, industry 

discount, etc.) travel on the Marketing Flights, and the Operating Carrier shall not honor any Marketing 

Carrier Flight Coupons for such industry non-revenue or discounted travel, except at the Operating 

Carrier's expense. 

12. OTHER MARKET]NG PROGRAMS 

12.1 The Frequent Flyer Participating Carrier Agreements shall govern the participation of 

each Parry in the other Party's frequent flyer program. 

12.2 If access of the Marketing Carrier's First and Business Class Codeshared Passengers to 

the Operating Carrier's airport lounge on the day of their departure will be provided, such 

access and the terms and conditions thereof (if any) shall be governed by the lounge 

access agreement to be negotiated by the Parties in good faith. 

13. TRADEMARKS AND CORPORATE IDENTIFICATION 

13.1 Neither Party hereto shall use any of the other Party's or such Parry's respective 

Affiliates' names, logos, logotype, insignia, service marks, trademarks, trade names, 

copyrights, corporate goodwill or other proprietary intellectual property, including 

without limitation the names "American Airlines, Inc.", "American Airlines", 

"American", "American Eagle", "AAdvantage", "Air Tahiti Nui" or "Club Tiare" in any 

marketing, advertising or promotional collateral, including without limitation credit card 

and telecom solicitations, except where each specific use has been approved in advance 

by the other Party. When such approval is granted, either Party shall comply with any 

and all conditions that the other Party may impose to protect the use of any of that Party's 

names, logos, logotype, insignia, service marks, trademarks, trade names, copyrights, 

corporate goodwill or other proprietary intellectual property. 

13.2 Except as expressly provided herein, no right, property, license, permission or interest of 

any kind in the use of any name, logo, logotype, insignia, service mark, trademark, trade 

name, copyright, corporate goodwill or other proprietary intellectual properry owned by 

either Party or its respective Affiliates is intended to be given to or acquired by the other 
Party, its agents, servants or other employees by the execution or performance of this 

Agreement. 

13.3 Each of TN and American acknowledges for all purposes that any and all logos, 

trademarks, service marks, and trade names of the other, whether registered or not, are 

and shall at all times remain the exclusive property of the other Party, and may not be 

used without the prior written consent of such Party, except as set forth herein. Each of 

TN and American further acknowledges that any goodwill or other rights that arise as a 

result of the use by it of the other Party's marks, as permitted under this Agreement, shall 

accrue solely to the benefit of the Party owning such marks, whether registered or not. 

Should any right, title or interest in the logos, trademarks, service marks or trade names 

of a Party become vested in the other Party, the latter Party shall hold such right, title and 

interest in trust for the benefit of the former Party and shall, at the request of the former 

Party, promptly and unconditionally assign such right, title and interest to the former 

Party without royalties or compensation of any kind. Each of TN and American hereby 

grants to the other, a non-exclusive, non-transferable, royalty-free license for the term of 

this Agreement to use their respective service marks ("Air Tahiti Nui" for TN and 

"American Airlines" for American, each a"Licensed Trademark"), subject to the terms 

and conditions set forth in this Section 13. This license is limited to the use of the 

Licensed Trademarks in connection with the advertising and promotion of the 

Codeshared Flights contemplated by this Agreement and the Frequent Flyer Participating 

Carrier Agreements. 

13.4 Each Party agrees to use the Licensed Trademarks only in a manner approved in advance 

and in writing by the Party owning such Licensed Trademarks. Each Licensed 

Trademark shall be marked with an ® or SM or other symbol, as appropriate, and 

reference a legend indicating that "Air Tahiti Nui" is a service mark of "Air Tahiti Nui" 

or "American Airlines is a service mark of American Airlines, Inc.", as the case may be, 

or similar words to that effect. 

13.5 Each Party agrees that all advertising and promotional materials bearing the Licensed 

Trademarks in relation to air transportation services contemplated by this Agreement 

shall meet the quality and presentation standards as set forth by the Party owning the 

relevant Licensed Trademark. 

13.6 Each Party has sole discretion to determine the acceptability of both the quality and 

presentation of advertising and promotional materials using its Licensed Trademark. 

13.7 Each Party is responsible for providing to its own authorized agents and airport locations 

the agreed promotional materials bearing the Licensed Trademarks. 

14. REPRESENTATIONS AND WARRANTIES 

14.1 Each of TN and American hereby represents and warrants to the other as follows: 

(a) It is a duly incorporated and validly existing corporation, in good standing under 

the laws of its jurisdiction of incorporation; is an air carrier duly authorized to act 

as such by the govemment of its country of incorporation; and has the requisite 

corporate power and authority to enter into and perform its obligations under this 

Agreement. The execution, delivery, and performance of this Agreement by it 

have been duly authorized by al1 necessary corporate action. This Agreement has 

10 1?ts 
been duly executed and delivered by it, and, assuming due authorization, 

execution, and delivery by the otlier Party hereto, this Agreement constitutes its 

legal, valid, and binding obligation, enforceable against it in accordance with its 

terms, except to the extent that enforceability may be limited or modified by the 

effect of bankruptcy, insolvency or other similar laws affecting creditors' rights 

generally, and the application of general principles of equity and public policy. 

(b) The execution, delivery or performance by it of this Agreement, shall not: (i) 

contravene, conflict with or cause a default under (A) any Applicable Law, rule 

or regulation binding on it, or'(B) any provision of its Charter, Certificate of 

Incorporation, Bylaws or other documents of corporate governance; or (ii) 

contravene, or cause a breach or violation of, any agreement or instrument to 

which it is a Party or by which it is bound, except where such conflict, 

contravention or breach would not have a material adverse effect on it and its 

Affiliates, or on the operations of it or its AfFiliates, taken as a whole, or on its 

ability to perform this Agreement. 

(c) The execution, delivery and performance by it of this Agreement do not require 

the consent or approval of, or the giving of notice to, the registration with, the 

recording or filing of any documents with, or the taking of any other action in 

respect of, any Competent Authority, any trustee or holder of any of its 

indebtedness or obligations, any stockholder or any other Person or entity, other 

than the Governmental Approvals (to be obtained by it, as indicated in Annex F), 

except where failure to obtain or take such action would not have a material 

adverse effect on it or a material adverse effect on the transactions contemplated 

in this Agreement. 

(d) Each of the foregoing representations and warranties shall survive the execution 

and delivery of this Agreement. 

15. GOVERNMENTAL APPROVALS 

15.1 The Codeshared Flights shall not commence until all required Governmental Approvals 

are received. Each Party shall use all commercially reasonable efforts to obtain those 

Govermnental Approvals for which it has been allocated responsibility under Annex F, 

and any other Governmental Approvals that may hereafter be identified. 

15.2 If the Governmental Approvals are obtained with respect to some but not all of the 

Codeshared Routes listed in Annex B, the Parties shall proceed under this Agreement 

solely with respect to the approved Codeshared Routes, and the Parties shall thereafter 

continue to endeavor to obtain approval of the remaining city-pair markets. 

15.3 If the Parties obtain none of the Governmental Approvals required for the Codeshared 

Routes listed in Annex B within one hundred eighty (180) days of the Effective Date, or 

if all of such Govemmental Approvals are given with substantial unfavorable restrictions 

or conditions (each Party to determine in its sole discretion the reasonableness of such 

restrictions or conditions), the Parties shall negotiate in good faith to find an equitable 

solution to enable the commencement of the Codeshared Route(s). If a solution cannot 

be formulated within ninety (90) days following commencement of such negotiations, 

either Party may terminate this Agreement upon thirry (30) days' prior written notice to 

the other Party. 

~ E f t'i 
15.4 Each Party shall immediately provide the other Parry with copies of any correspondence 

or notices it receives from any Competent Authority with respect to the Codeshared 

Routes, Codeshared Flights or this Agreement, including with respect to the 

airworthiness of the aircraft used for the Codeshared Flights or noncompliance by the 

Operating Carrier with operational, training or safety rules and procedures. 

16. TERM 

16.1 This Agreement shall become effective on the date first written above ("Effective 

Date") and shall remain in effect for a term of five (5) years unless earlier terminated 

pursuant to Section 15 (Governmental Approval), Section 16.2 (Termination Events), 

Section 16.3 (Suspension Right), Section 21 (Force Majeure) or Section 27 

(Severability), or Annex B(Codeshared Flights), Annex C(Ground/In-Flight Services) or 

Annex D(Operating and Dependability). Implementation of this Agreement shall be on 

the Implementation Date, subject to the Parties' execution of the Mutual Emergency 

Assistance Agreement. 

16.2 In addition to any other termination rights provided herein, this Agreement may be 

terminated as follows: 

(a) at any time by mutual written consent of the Parties hereto; 

(b) at any time after the second (2nd) anniversary of the Effective Date by either 

Party upon providing at least 210 days' prior written notice to the other Parly, 

such notice to be served no earlier than the end of the eighteenth (18 ffi) full 

calendar month following the Effective Date; 

(c) by the non-breaching Party upon the breach of a material term, covenant, 

representation or warranty of this Agreement (other than a breach of a payment 

obligation under Section 6 of this Agreement or the failure to otherwise pay any 

sums due pursuant to this Agreement), including a failure to comply with any 

material obligations and procedures set forth in the Procedures Manual, provided 

that the non-breaching Party provides the breaching Party prior written notice 

describing the alleged breach with as much particularity as reasonably 

practicable. Termination under this Section 16.2(c) shall not be effective if the 

breaching Parry corrects such breach within thirty (30) days following receipt of 

such notice. If such breach cannot be corrected within thirty (30) days following 

receipt of such notice, and the breaching Party so advises the non-breaching 

Parly, the non-breaching Party, in its sole discretion, may give the breaching 

Party an additional period of time not to exceed thirty (30) days to correct the 

breach, provided that the breaching Party has taken action reasonably 

contemplated to correct such breach following receipt of the notice; 

(d) by the non-breaching Party upon the breach of a payment obligation under 

Section 6 of this Agreement or the failure to otherwise pay any sums due to the 

non-breaching Party pursuant to this Agreement by the breaching Party, after the 

non-breaching Party provides the breaching Party at least fifteen (15) days' prior 

written notice describing, with as much particularity as practical, the alleged 

breach, and the breaching Party does not, within seven (7) days following receipt 

of such notice, correct such breach; 

12 t'(t'> 
(e) at any time by either Parry upon written notice if the other Party (i) makes an 

assignment for the benefit of creditors; (ii) suspends the payment of or admits in 

writing its inability to pay, or generally fails to pay, its debts as they become due; 

(iii) has suspended (as declared by a clearing house) its transactions with banks 

and/or other fmancial institutions or proposes or commences a moratorium upon 

or extension or composition of its debts; (iv) has issued against it any writ, 

execution, process or abstract of judgment that may have a material adverse 

effect on it and that is not dismissed, satisfied or stayed within sixty (60) days; or 

(v) files a petition for bankruptcy, composition, corporate reorganization, 

corporate liquidation, arrangement or special liquidation proceedings; or (vi) 

ceases all or a substantial part of its operations (other than due to Force Majeure 

as defined in Section 21); or 

(f) by either Party upon ninety (90) days' prior written notice following receipt by 

such Parly of written notice from the other Party (i) that such other Party has 

merged or consolidated with or into any other Person or entity, except where the 

shareholders of such Party (as measured on the day immediately prior to the 

effective date of such merger or consolidation) immediately after the merger or 

consolidation continue to own over eighty percent (80%) of its voting stock and, 

if the Party hereto is not the surviving entity, the surviving entity assumes all of 

the obligations and responsibilities of the Party under this Agreement; (ii) that 

such other Party has sold or otherwise transferred all or substantially aLl of its 

assets to any other Person or entity; (iii) that such other Party has had thirty three 

percent (33%) or more of its voting stock acquired, directly or indirectly, by a 

third-party (or third-parties acting as a group) in one or a series of transaction 

and, as a result, such third-party (or group) has the right to direct the management 

and policies of the Parry, or (iv) that more than fifty percent (50 1/o) of its voting 

stock is owned at any time by a Person, entity or group that held fifty percent 

(50%) or less immediately prior to such time of determination. Each Parry 

undertakes to promptly notify the other in writing of an occurrence of any of the 

events specified in this Section 16.2(fl. 

16.3 Throughout the Term, either Party has the right to suspend performance of or terminate 

this Agreement immediately by giving written notice to the other Party in the event that it 

has reason to suspect or believe or in the event that: 

(a) the other Parry has suffered a significant emergency or serious incident or 

accident or received a serious threat that relates to any of that Party's flights or to 

a Codeshared Flight or Codeshared Route; or 

(b) the other Party has received from any relevant Competent Authority notice that it 

has failed to comply with applicable safety or security requirements; or 

(c) the United States Department of Transportation (DOT), the United States 

Department of Defense (DOD) or the United States Deparlment of Homeland 

Security (DHS), or the counterpart authorities in French Polynesia or France, has 

ordered in writing or orally that the Marketing Carrier's Code be removed from 

Codeshared Flights or Codeshared Routes operated by the Operating Carrier for 

any reason whatsoever; or 

13 
(d) the civil aviation authority of France, French Polynesia or the United States, as 

applicable, does not provide safety oversight of its air carrier operators in 

accordance with the minimum safety oversight standards established by the 

International Civil Aviation Organization (ICAO), which results in French 

Polynesia receiving a rating of Category 2 from the Federal Aviation 

Administration (FAA), or the United States receiving an equivalent rating from 

counterpart authorities in French Polynesia, respectively. 

If a Party suspends this Agreement pursuant to this Section, as soon as the reason for the 

suspension no longer exists it shall notify the other Party and this Agreement will 

recommence within thirty (30) days after the date of notice under the same terms and 

conditions, or under amended terms and conditions in accordance with Section 30.1. A 

Party that suspends this Agreement pursuant to this Section may at any time during the 

suspension terminate this Agreement by giving notice in writing to the other Party. If this 

Agreement is suspended or terminated pursuant to this Section 16.3, Sections 16.4 

through 16.5 shall apply. 

16.4 Subject to Section 16.5, in the event of termination of this Agreement the Marketing 

Carrier shall, in its sole discretion, unless termination is pursuant Section 16.2(f) or 

Annex C or Annex D, take al] reasonable actions to confirm and preserve reservations on 

the Operating Carrier for passengers scheduled to be traveling on Marketing Carrier 

Tickets and, as applicable, endorse or otherwise modify or reissue such tickets to permit 

use on the Operating Carrier. The Operating Carrier shall accept passengers traveling on 

such tickets as if such reservations had been booked through the Operating Carrier using 

ordinary interline procedures but giving effect to the revenue settlement methodology 

provided for in Section 6 of this Agreement. 

16.5 In the event that this Agreement is terminated by the Operating Carrier pursuant to 

Section 16.2(d) or 16.2 e, the Operating Carrier, in its sole discretion, may decline any 

or all passengers scheduled to be traveling on Marketing Carrier Tickets. The Marketing 

Carrier shall be solely responsible for transferring the reservations of such passengers to 

other carriers or making other alternative arrangements. 

17. INDEMNIFICATION 

17.1 Without prejudice to any other written agreement or arrangement of either Party to 

indemnify the other Party, the Party that is the Operating Carrier (or whose Authorized 

Aff'iliate is the Operating Carrier) shall indemnify, defend, and hold harmless the 

Marketing Carrier and its Affiliates and their respective directors, officers, employees 

and agents (each individually, or all collectively a, "Marketing Carrier Indemnified 

Party") from and against any and all Damages arising out of, caused by, or occurring in 

connection with (or alleged to arise out of, be caused by, or occurring in connection with) 

any of the following: 

(a) the death of or injury to or delay of persons, or delay or loss of or damage to 

property (including aircraft, equipment, baggage, mail or cargo) occurring while 

such persons or properry are under the control or in the custody of, or being 

transported by, the Operating Carrier (including, for the avoidance of doubt, 

Damages arising out of the death of or injury to Codeshared Passengers traveling 

on Marketing Carrier Tickets irrespective of conditions or liability limits that 

apply or may purport to apply); 

14 
(b) the death of or injury to, or loss or damage to properry of, third parties not carried 

on board the aircraft operated by the Operating Carrier but occurring in 

connection with such operations; 

(c) negligent acts or omissions of the Operating Carrier related to its obligations 

under this Agreement, other than Damages to the extent addressed in 

Section 17.1(a) or (b) or Section 17.2(a) or (b); 

(d) the Operating Carrier's breach of any of its representations or warranties set forth 

in Section 14 of this Agreement; or 

(e) infringement of a third-party's intellectual property or similar rights by the 

Operating Carrier's logos, trademarks, service marks or trade names. 

PROVIDED THAT, the Operating Carrier shall not be required to indemnify any 

Marketing Carrier Indemnified Party for any liability arising from the Marketing Carrier 

Indemnified Parry's gross negligence or willful misconduct. THE OPERATING 

CARRIER UNDERSTANDS AND ACKNOWLEDGES THAT UNDER THE 

CIRCUMSTANCES ADDRESSED BY SECTIONS 17.1(a) AND 17.1 b, IT WII,L BE 

REQUIRED TO INDEMNIFY A MARKETING CARRIER INDEMNIFIED PARTY 

AGAINST DAMAGES ARISING FROM SUCH MARKETING CARRIER 

INDEMNIFIED PARTY'S OWN NEGLIGENCE (BUT NOT GROSS NEGLIGENCE 

OR WIL,LFUL MISCONDUCT). 

17.2 Subject to the indemnities provided in Section 17.1(a), and without prejudice to any other 

written agreement or arrangement of either Party to indemnify the other Party, the Parry 

that is the Marketing Carrier (or whose Affiliate is the Marketing Carrier) shall 

indemnify, defend, and hold harmless the Operating Carrier and its Affiliates and their 

respective directors, officers, employees, and agents (each individually an, or collectively 

the, "Operafing Carrier Indemnified Party") from and against any and all Damages 

arising out of, caused by, or occurring in connection with (or alleged to arise out of, be 

caused by, or occurring in connection with) any of the following: 

(a) the death of or injury to or delay of persons, or delay or loss of or damage to 

property (including aircraft, equipment, baggage, mail or cargo) occurring while 

such persons or property are under the control or in the custody of, or being 

transported by, the Operating Carrier, but only to the extent caused by the gross 

negligence or willful misconduct of the Marketing Carrier; 

(b) the death of or injury to, or loss or damage to property of, third parties not carried 

on board the aircraft operated by the Operating Carrier but occurring in 

connection with such operations, but only to the extent caused by the gross 

negligence or willful misconduct of the Marketing Carrier; 

(c) negligent acts or omissions of the Marketing Carrier that are related to its 

obligations under this Agreement, other than Damages to the extent addressed in 

Section 17.1(a) or (b) or Section 17.2(a) or Lb); 

(d) passenger claims based on the Marketing Carrier's failure to properly issue, 

deliver and complete transportation documentation in accordance with the 

15 ~ r` 1 r-.1 
provisions of the standard IATA or other applicable ticketing procedures, 

including, without limitation, the failure to put a proper notice of the limits of 

liability under the Warsaw Convention, as amended, or the Montreal Convention 

of 1999, as amended, on such documentation (it being understood that in 

ticketing Codeshared Passengers, the Marketing Carrier is entitled to apply the 

limits of liability provided for in its own Conditions of Carriage); provided, 

however, that the Marketing Carrier shall only be liable under this 

Section 17.2(d) for that portion of any Damages that is in excess of the Damages 

against which the Operating Carrier would have been required to indemnify the 

Marketing Carrier under Section 17.1(a) if the Marketing Carrier had properly 

complied with all IATA ticketing procedures; 

(e) the Marketing Carrier's breach of its representations or warranties set forth in 

Section 14 of this Agreement; or 

(f) infringement of a third-party's intellectual property or similar rights by the 

Marketing Carrier's logos, trademarks, service marks or trade names. 

17.3 A Party (the "Indemnified Party") that believes it is entitled to indemnification from the 

other Party (the "Indemnifying Party") pursuant to the terms of this Agreement with 

respect to a claim for Damages (i.e., a third-party claim) shall provide the Indemnifying 

Party with written notice (an "Indemnification Notice") of such claim (provided, 

however, that the failure to give such notice shall not relieve the Indemnifying Party of its 

obligations hereunder except to the extent that such failure is materially prejudicial to the 

Indemnifying Party), and the Indemnifying Party shall be obligated and entitled, at its 

own cost and expense and by its own legal advisors, to control the defense of or to settle 

any such third-party claim. The Indemnifying Party shall have the right to elect to settle 

any such claim for monetary Damages only, subject to the consent of the Indemnified 

Party; provided, however, if the Indemnified Party fails to give such consent to a 

settlement that has been agreed upon by the Indemnifying Party and the clairnant in 

question within twenty (20) days of being requested to do so, the Indemnified Party shall 

assume the defense of such claim or demand and regardless of the outcome of such 

matter, the Indemnifying Party's liability hereunder shall be limited to the amount of any 

such proposed settlement. If the Indemnifying Party fails to take any action against the 

third-party claim that is the subject of an Indemnification Notice within thirty (30) days 

of receiving such Indemnification Notice, or otherwise contests its obligation to 

indemnify the Indemnified Party in connection therewith, the Indemnified Party may, 

upon providing prior written notice to, but without the further consent of, the 

Indemziifying Party settle or defend against such third-party claim for the account, and at 

the expense, of the Indemnifying Party. Except as set forth in this Section 17.3, the 

Indemnified Pariy shall not enter into any settlement or other compromise or consent to a 

judgment with respect to a third-party claim to which the Indemnifying Party has an 

indemnity obligation without the prior written consent of the Indemnifying Party. 

17.4 Each Indemnified Party shall have the right, but not the duty, to participate in the defense 

of any claim with attorneys of its own choosing and at its own cost, without relieving the 

Indemnifying Party of any obligations hereunder. In addition, even if the Indemnifying 

Party assumes the defense of a claim, the Indemnified Party shall have the right to 

assume control of the defense of any claim from the Indemnifying Party at any time, and 

to elect to settle or defend against such claim; provided, however, the Indemnifying Party 

shall have no indemnification obligations with respect to such claim except for the costs 

16 ~ ~~~ 
and expenses of the Indemnified Party (other than attomeys' fees incurred in participating 

in the defense of such claim) incurred prior to the assumption of the defense of the claim 

by the Indemnified Party. 

17.5 Each Party further agrees to indemnify, defend and hold harmless the other Parry from 

and against any and all Taxes (as defined in Annex A), or Assessments, as the case may 

be, levied upon or advanced by the Indemnified Parry, but that ultimately the 

Indemnifying Party would be responsible for paying, which resulted from any transaction 

or activity contemplated by this Agreement. 

17.6 The rights and obligations of the Parties under this Section 17 shall survive the 

Termination Date or expiration of this Agreement. 

18. TNSURANCE 

18.1 The Opeiating Carrier shall procure and maintain for the benefit of the Marketing Carrier 

during the term of this Agreement with insurance carriers of known fmancial 

responsibility, insurance of the type and in the amounts listed below: 

(a) Third Party Legal Liability in respect of all operations, including but not limited 

to aircraft (owned and non-owned) liability (including risks hijacking and allied 

perils), passenger and crew baggage and personal effects, funeral and repatriation 

expenses (including crew), all reasonable expenses arising out of the Family 

Assistance Act (United States) and/or similar regulations applying elsewhere in 

the world, cargo, mail, hangarkeepers, comprehensive general liability, or its 

equivalent including premises, products, completed operations, and contractual 

liability. This insurance must be primary without right of contribution from any 

insurance carried by the Marketing Carrier to the extent of the indemnity 

specified in Section 17.1, and shall (i) name the Marketing Carrier and the 

Marketing Carrier Indemnified Parties as additional insureds to the extent of the 

protections afforded the Marketing Carrier under the indemnity specified in 

Section 17.1, (ii) contain a severability of interest clause and a breach of 

warranty clause in favor of the Marketing Carrier, and (iii) specifically insure the 

Operating Carrier's indemnification obligations under this Agreement to the full 

extent of the coverage provided by the Operating Carrier's policy or policies. 

(b) The Operating aintain a combined single limit of liability of not 

less than USD per any one occurrence for each aircraft, including 

bodily injury, death, personal injury, property damage, passenger (including 

Codeshared Passengers and other revenue and non-revenue passengers) legal 

liability and war and allied perils combined, over all coverages and in the 

aggregate as applicable, but (i) personal injury (as per AVN60A) limited to 

USD er offense and in the annual aggregate except with respect to 

passengers (including Codeshared Passengers and other revenue and non-revenue 

passengers) to which the full combined single limit applies, and (ii) war and 

allied perils may be subject to an annual aggregate limit. 

(c) Hull all risk insurance, including war risk, and such policy sball include a waiver 

of subrogation in favor of the Marketing Carrier to the extent of the indemnity 

specified in Section 17.1. 

17 
(d) Worker's compensation and employer's liability insurance, or such other similar 

or equivalent insurance carried outside of the United States, in accordance with 

statutory limits. 

18.2 The Operating Carrier shall provide the Marketing Carrier with certificates of insurance 

evidencing such coverage no less than thirry (30) days prior to the commencement of the 

first Codeshared Flight, and thereafter within five (5) Business Days of the date of any 

renewal of such coverage. The certificates must indicate that the above coverage shall 

not be canceled or materially altered without thirty (30) days' advance written notice to 

the Marketing Carrier and that the Marketing Carrier shall be notified of any expiration or 

renewal of such coverage. The notice period in respect of war and allied perils coverage 

shall be seven (7) days or such lesser period as is or may be available in accordance with 

the policy providing such coverage. 

19. TAXES 

19.1 Subject to Section 19.4, each Party shall be responsible for any net or gross income or 

franchise taxes (or taxes of a similar nature) on the revenues or income or any measure 

thereof which is attributable to it in connection with the sale of air transportation pursuant 

to this Agreement. 

19.2 The Parry that acts as the Ticketing Carrier in respect of any particular transaction shall 

collect, except as otherwise prohibited by law, all Ticket Taxes relating to tickets sold or 

travel documents issued by it with respect to air transport pursuant to this Agreement. 

The Parties hereby agree as follows: 

(a) The Ticketing Carrier shall collect, report and remit to the taxation authorities 

any non-interlineable Ticket Taxes levied in connection with sales of the 

Codeshared Flights. 

(b) The Ticketing Carrier shall collect any interlineable Ticket Taxes levied in 

connection with the sales of the Codeshared Flights. If the Ticketing Carrier is 

the Marketing Carrier or a third-party, the Operating Carrier shall report and 

issue a debit invoice to the Ticketing Carrier through the IATA Clearing House 

for any interlineable Ticket Taxes levied in connection with the sales of the 

Codeshared Flights. The Operating Carrier shall remit to taxation authorities all 

such interlineable Ticket Taxes. 

(c) The Operating Carrier may bill the Ticketing Carrier for any Ticket Taxes due or 

payable on or measured by passenger enplanement and payable or remittable by 

the Operating Carrier or the Marketing Carrier in accordance with industry 

guidelines outlined in the IATA Revenue Accounting Manual (IATA-RAM). 

(d) If the Ticketing Carrier is a third-party, the Marketing Carrier shall use 

commercially reasonable efforts to cause such third-party to implement the 

foregoing provisions. 

19.3 Notwithstanding the provisions of Section 19.2, if the Ticketing Carrier is prohibited by 

law from collecting certain Ticket Taxes in the country where tickets are sold or where 

travel documents are issued, then the Ticketing Carrier is relieved only from collecting 

such Ticket Taxes so prohibited by law and shall notify the Operating Carrier within 

18 
thirty (30) days of the enactment of such laws which Ticket Taxes it is prohibited from 

collecting and render reasonable assistance to the Operating Carrier so that procedures 

can be implemented to collect such Ticket Taxes from the passenger. 

19.4 Both Parties acknowledge that the tax laws of the countries in which they may operate in 

connection with the Codeshared Flights may require withholding of Taxes on certain of 

the payments that either of the Parties or their agents (the "Payor") may be required to 

pay to the other Party (the "Payee"), under this Agreement. It is agreed that payments to 

the Payee shall be exclusive of such withholding ;provided however, that the Payor shall 

inform the Payee in writing with at least forty five (45) days' advance notice of its intent 

to withhold the Taxes and the legal basis for such withholding. The Payor shall inform 

the Payee: 

(a) within fifteen (15) days of receipt by the Payor of any directives that may be 

given to the Payor by such taxation authority; and 

(b) within fifteen (15) days of payment. by the Payor to the relevant taxation 

authority the amounts withheld by Payor. 

19.5 For U.S. income tax purposes, TN shall annually and timely furnish American, a valid, 

completed and duly executed U.S. Federal Form W-8BEN (Ownership, Exemption, or 

Reduced Rate Certificate) or such other forms as the U.S. Internal Revenue Service may 

require from time to time, so that American may report any relevant transactions arising 

under this Agreement and, if applicable, substantiate an exemption from any obligation 

on American's part with respect to any income tax withholding or reporting obligations 

on payments made to TN. In the event the Payor is required to withhold taxes under the 

procedures of Section 19.4, the Payor shall provide to the Payee within thirty (30) days of 

such withholding a tax receipt and copies of any support for the payment as may be 

necessary to support a claim by the Payee of a foreign tax credit under Applicable Laws. 

19.6 If either Party receives notice from any taxation authority with respect to any assessment 

or potential assessment or imposition of any Tax (collectively, an "Assessment") relating 

to this Agreement, that the other Party may be responsible for paying, directly or 

indirectly, the Party so notified shall inform the other Party in writing within ten (10) 

days of receipt of such notice. If the Parry receiving such notice from a taxation authority 

is or will be required to pay any Assessment for which the other Party is ultimately 

responsible, it shall be entitled to be indemnified against such Assessment in accordance 

with Section 17.5. The Indemnifying Party shall have the option to defend or contest 

such Assessment in accordance with the procedures set forth in Section 17. 

20. JOINT MANAGEMENT COMNIITTEE 

20.1 Coincident with the execution of this Agreement, American and TN will create a joint 

management committee (the "Committee"). American and TN will each designate two 

(2) management representatives to the Committee and each will have the right to replace 

its management designees at any time upon prior written notice to the other Party. The 

Committee will endeavor to meet annually (in person or by telephone) at a mutually 

agreed time and location and will meet at such additional times as it determines 

appropriate for the performance of its responsibilities or as reasonably requested by either 

Party. Each meeting will be conducted in accordance with an agenda to be determined as 

described below. Either Party may place an item on the agenda of any meeting of the 

wt 
Committee. 

20.2 The Committee will oversee the management of the transactions and relationships 

contemplated in this Agreement, and, in that capacity, will review the planning and 

implementation of the cooperative services of American and TN, and their respective 

airline Affiliates. The Committee will, as part of its responsibilities, monitor customer 

service quality, system development, performance of Codeshared Flights, marketing 

approach and techniques, shared use of facilities, frequent flyer arrangements, and all 

other aspects of the implementation, operation, and compliance with this Agreement, the 

Frequent Flyer Participating Agreements, and the Lounge Access Agreement. The 

Committee will consider ways to improve the performance and efficiency of the 

cooperative services to reduce costs and to increase the benefits afforded to American 

and TN by the relationship. The Committee will also actively consider, and endeavor to 

develop, opportunities for expanding the scope of the relationship between the Parties 

and their respective Affiliates. Areas for further cooperation may include, but are not 

limited to, ground handling, joint purchasing of fuel and other items, facilities 

consolidation, maintenance, insurance, and the provision of management services and 

systems by American and/or TN and their respective Affiliates. The Committee will 

resolve any differences between the Parties on a fair and amicable basis. In performing 

its responsibilities, the Committee will be mindful of, and will comply with, all laws and 

regulations applicable to American and TN, including, without limitation, laws and 

regulations governing competition between American and TN. 

21. FORCE MAJEURE 

21.1 Except with respect to the performance of payment, confidentiality, and indemnity 

obligations, which shall be unconditional under this Agreement, neither Party shall be 

liable for delays in or failure to perform under this Agreement to the extent that such 

delay or failure (an "Excusable Delay") (a) is caused by any act of God, war, act of 

terrorism, natural disaster, strike, lockout, labor dispute, work stoppage, fire, serious 

accident, epidemic or quarantine restriction, act of government or any other cause, 

whether similar or dissimilar, beyond the control of that Party; and (b) is not the result of 

that Party's lack of reasonable diligence. If an Excusable Delay continues for thirty (30) 

days or longer, the non-delayed Party shall have the right, at its option, to terminate this 

Agreement by giving the delayed Party at least thirty (30) days' prior written notice. 

22. GOVER1YiNG LAW AND DISPUTE RESOLUTION 

22.1 This Agreement shall in all respects be governed by and construed in accordance with the 

laws of the State of New York (without regard to its conflict of laws principles) including 

all matters of construction, validity and performance. 

22.2 All disputes arising out of or in connection with this Agreement shall. be finally settled 

under the Rules of Arbitration of the International Chamber of Commerce (the "Rules") 

by a panel of arbitrators appointed in accordance with such Rules, The arbitration panel 

shall consist of three (3) arbitrators who are knowledgeable about the legal, marketing, 

and other business aspects of the airline industry, and fluent in the English language, The 

arbitration may be conducted by only one (1) arbitrator if TN and American agree in 

advance of the arbitration on a mutually acceptable individual. The arbitration 

proceedings shall take place in New York, New York, and shall be conducted in the 

English language. 

20 ~;~ 
22.3 Each Party irrevocably submits to the nonexclusive jurisdiction of the United States 

District Court for the Southern District of New York and of any State Court sitting in 

New York, for purposes of enforcing any arbitral award or for other legal proceedings 

arising out of this Agreement or any transactions contemplated in this Agreement. Each 

Party, to the fullest extent it may effectively do so under substantive governing law 

applicable to this Agreement, also irrevocably waives and agrees not to assert, by way of 

motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any 

such court and any objection that it may have as to venue or inconvenient forum in 

respect of claims or actions brought in such court. 

22.4 Each Party irrevocably designates, appoints, authorizes and empowers as its agent for 

service of process the Secretary of State of the State of New York or C.T. Corporation 

System at its offices presently located at 111 Eighth Avenue, New York, NY 10011, to 

receive and acknowledge on behalf of such Party any process, notices, or other 

documents that may be served in any suit, action, or proceeding of the nature referred to 

in this Section 22 in any State or Federal court sitting in New York. Each Party has 

empowered the Secretary of State of the State of New York or C.T. Corporation System 

as its agent for service of process by the granting of power of attorney. Such designation 

and appointment will continue unless and until notice is given. Nothing in this 

Section 22 affects the right of any Parly to serve process in any manner permitted by law, 

or limits any right that any Party may have to bring proceedings against the other Party in 

the courts of any jurisdiction or to enforce in any lawful manner a judgment obtained in 

one jurisdiction in any other jurisdiction. 

22.5 TN and American each acknowledge that the transactions contemplated in this 

Agreement involve commercial activity carried on in the United States of America. To 

the extent that either Party or any of its property is or becomes entitled at any time to any 

immunity on the grounds of sovereignty or otherwise, including under the Foreign 

Sovereign Immunities Act of 1976 of the United States of America, from any legal 

action, suit, arbitration proceeding or other proceeding, from set-off or counterclaim, 

from the jurisdiction of any court of competent jurisdiction, from service of process, from 

attachment prior to judgment or after judgment, from attachment in aid of execution or 

levy or execution resulting from a decree or judgment, from judgment or from 

jurisdiction, that Party for itself and its properiy does hereby irrevocably and 

unconditionally waive all rights to, and agrees not to plead or claim any such immunity 

with respect to its obligations, liabilities or any other matter arising out of or in 

connection with this Agreement or its subject matter. The foregoing waiver and 

agreement is not subject to withdrawal in any jurisdiction. 

23. COVENANT TO COMPLY WITH ALL LAWS 

23.1 In performing its obligations under this Agreement, each Party shall, at its own cost and 

expense, fully comply with, and have all licenses under, all applicable federal, state, 

provincial and local laws, rules and regulations of the United States, French Polynesia 

and all third countries including rules and regulations promulgated by the U.S. National 

Transportation Safety Board, U.S. Deparrtment of Transportation, U.S. Federal Aviation 

Administration, the U.S. Department of Defense, the U.S. Department of Homeland 

Security and the counterpart agencies in French Polynesia. Each Parry further agrees to 

participate in (i) the Advance Passenger Information System (APIS) program whereby 

the Operating Carrier will, upon request, supply U.S. Customs and Border Protection 

21 111-Ip5 
("CBP") with the required passenger manifest data from its flight(s) inbound to and 

outbound from the United States at the time of departure; (ii) the U.S. Department of 

Homeland Security ("DHS") Electronic System for Travel Authorization ("ESTA"), and 

(iii) the DHS Secure Flight program. 

23.2 If either Party has notice that a provision of this Agreement is contrary to any Applicable 

Laws or governmental regulations, that Party shall immediately notify the other Parry in 

writing, such notice to include a description of the perceived violation of regulation and 

supporting written materials that facilitate the other Party's investigation of such 

perceived violation. 

24. PUBLICITY 

Except as required by Applicable Law, neither Party may issue any written press release concerning this 

Agreement without the prior written consent of the other Pariy, which consent shall not be unreasonably 

withheld or delayed. 

25. CONFIDENTIALITY 

25.1 Except as necessary to obtain any Government Approvals or as otherwise provided 

below, each Party shall, and shall ensure that its directors, officers, employees, Affiliates, 

and professional advisors (collectively, the "Representatives"), at all times, maintain 

strict confidence and secrecy in respect of all Confidential Information of the other Party 

(including its Affiliates) received directly or indirectly as a result of this Agreement. If a 

Parry (the "Diselosing Party") is requested to disclose any Confidential Information of 

the other Party (the "Affected Party") under the terms of a subpoena or order issued by a 

court or governmental body, it shall (a) notify the Affected Party immediately of the 

existence, terms, and circumstances surrounding such request, (b) consult with the 

Affected Parry on the advisability of taking legally available steps to resist or narrow 

such request, and (c) if any disclosure of Confidential Information is required to prevent 

the Disclosing Parry from being held in contempt or subject to other legal penalty, furnish 

only such portion of the Confidential Information as it is legally compelled to disclose 

and use commercially reasonable efforts to obtain an order or other reliable assurance 

that confidential treatment shall be accorded to the disclosed Confidential Information. 

Each Party agrees to transmit Confidential Information only to such of its Representatives 

as required for the purpose of implementing and administering this Agreement, and shall 

inform such Representatives of the confidential nature of the Confidential Information 

and instruct such Representatives to treat such Confidential Information in a manner 

consistent with this Section 25.1. 

25.2 Within ninety (90) days after the termination of this Agreement, each Party shall, either 

deliver to the other Party or destroy all copies of the other Party's Confidential 

Information in its possession or the possession of any of its Representatives (including, 

without limitation, any reports, memoranda or other materials prepared by such Party or 

at its direction) and purge all copies encoded or stored on magnetic or other electronic 

media or processors, unless and only to the extent that the Confidential Information is 

necessary for the continued administration and operation of such Parry's programs or is 

reasonably necessary in connection with the resolution of any dispute between the 

Parties. 

22 /~ / 3 
25.3 Each Party acknowledges and agrees that in the event of any breach of this Section 25, 

the Affected Party shall be irreparably and immediately harmed and could not be made 

whole by monetary Damages. Accordingly, it is agreed that, in addition to any other 

remedy at law or in equity, the Affected Party shall be entitled to an injunction or 

injunctions (without the posting of any bond and without proof of actual Damages) to 

prevent breaches or threatened breaches of this Section 25 and/or to compel specific 

performance of this Section 25. 

25.4 The confidentiality obligations of the Parties under this Section 25 shall survive the 

Termination Date or expiration of this Agreement for a period of five (5) years. 

26. ASSIGNMENT 

Neither Party may assign or otherwise convey any of its rights under this Agreement, or delegate or 

subcontract any of its duties hereunder, without the prior written consent of the other Party; provided 

however, that each of American and TN may assign, subcontract or delegate any of its rights, duties or 

obligations under this Agreement to any of its Affiliates provided that such assignment and/or delegation 

shall not relieve American or TN of any of its obligations under this Agreement. 

27. SEVERABILITY 

If any provision of this Agreement is or becomes illegal, invalid or unenforceable under the law of any 

jurisdiction, such provision shall be severed from this Agreement in the jurisdiction in question and shall 

not affect the legality, validity or enforceability of the remaining provisions of this Agreement nor the 

legality, validity or the enforceability of such provision under the law of any other jurisdiction; unless, in 

the reasonable opinion of either Party, any such severance affects the commercial basis of this 

Agreement, in which case the Party shall so inform the other Party and the Parties shall negotiate in good 

faith to agree upon modification of this Agreement so as to maintain the balance of the commercial 

interests of the Parties. If, however, such negotiations are not successfully concluded within ninety (90) 

days from the date a Party has informed the other that the commercial basis has been affected, either Party 

may terminate this Agreement by giving at least thirty (30) days' prior written notice to the other Party. 

28. EXCLUSIVITY 

28.1 This Agreement is non-exclusive and does not preclude either Party from entering into or 

maintaining marketing relationships, including codesharing, with other airlines, except 

that: 

(a) During the term of this Agreement, TN shall not, and shall cause its Affiliates not 

to: 

(i) place the TN Code or any Affiliate's Code, on any flight operated by any 

air carrier domiciled in the United States, other than American and its 

Affiliates, without American's prior written consent; or 

(ii) permit any air carrier domiciled in the United States, other than 

American and its Affiliates, to place its Code on any flight operated by 

TN or any A£f liate of TN, without American's prior written consent; or 

(iii) place the TN Code or any Affiliate's Code, on any flight to, from, via, or 

within the United States, other than flights operated by TN and its 

23 1` f41) 
Affiliates and American and its Affiliates, without American's prior 

written consent; or 

(iv) permit any air carrier, other than Arnerican and its Affiliates, to place its 

Code on any flights to, from, via, or within the United States, operated 

by TN or any Affiliate of TN, without American's prior written consent. 

(b) During the term of this Agreement, American shall not, and shall cause its 

Affiliates not to: 

(i) place the AA. Code or any Affiliate's Code on any flight operated by any 

air carrier domiciled in French Polynesia, other than TN and its 

Affiliates, without TN's prior written consent; or 

(ii) permit any air carrier domiciled in French Polynesia, other than TN and 

its Affiliates, to place its Code on any flight operated by American or any 

Affiliate of American, without TN's prior written consent; or 

(iii) place the AA Code or any Affiliate's Code, on any flight to, from, via, or 

within French Polynesia, other than flights operated by American and its 

Affiliates and TN and its Affiliates, without TN's prior written consent; 

or 

(iv) permit any air carrier, other than TN and its Affiliates, to place its Code 

on any flights to, from, via, or within French Polynesia operated by 

American or any Affiliate of American, without TN's prior written 

consent. 

28.2 The foregoing Section 28.1 shall not apply to: 

(a) codeshared arrangements currently in force between each of TN and American 

and third-parties, and any future renewals or modifications of such commitments; 

(b) codeshared arrangements with air carriers that provide only air cargo services 

(i.e., no commercial passenger air transport services); or 

(c) codeshared arrangements with any member of the oneworldTM Alliance. 

29. FURTHER ASSURANCES 

29.1 Each Parly shall perform such further acts and execute and deliver such further 

instruments and documents at such Party's cost and expense as may be required by 

Applicable Law, rules or regulations or as may be reasonably requested by the other to 

carry out and effectuate the purposes of this Agreement. 

29.2 If and to the extent the transactions or activities contemplated by this Agreement require 

the cooperation or participation of an Affiliate that is not a party hereto, then its Parent 

Carrier shall cause such Affiliate to cooperate or participate in such transaction or 

activity. Without limiting the generality of the foregoing, if such Affiliate operates as an 

Operating Carrier in connection with this Agreement and is not a party to a separate 

codesharing agreement or addendum hereto with respect to such operations, its Parent 

24 
Carrier shall cause it to comply with all obligations imposed on an Operating Carrier 

hereunder as if sucb Affiliate were a. party hereto. The Parent Carrier sha.11 be jointly and 

severally obligated and liable with such Affiliate for all such obligations, including, 

without limitation, the indemnity and insurance requirements of this Agreement. In 

addition, the Parent Carrier shall cause such Affiliate to perform such acts and execute 

and deliver such further instruments and documents as may reasonably be required by the 

other Party to provide for such cooperation and participation, including, without 

limitation, execution of an addendum providing for such Affiliate to become a party to 

this Agreement. 

30. iVIISCELLANEOUS 

30.1 This Agreement contains the entire agreement between the Parties relating to its subject 

matter, and supersedes any prior understandings or agreements between the Parties 

regarding the same subject matter. This Agreement may not be amended or modified 

except in writing signed by a duly authorized Representative of each Party. 

30.2 The relationship of the Parties hereunder shall be that of independent contractors. 

Neither Party is intended to have, and neither of them shall represent to any other Person 

that it has, any power, right or authority to bind the other, or to assume, or create, any 

obligation or responsibility, express or implied, on behalf of the other, except as 

expressly required by this Agreement or as otherwise permitted in writing. Nothing in 

this Agreement shall be construed to create between the Parties and/or the Parties' 

Representatives any partnership, joint venture, employment relationship, franchise or 

agency (except that the Operating Carrier shall have supervisory control over all 

passengers during any Codeshared Flight, including any employees, agents or contractors 

of the Marketing Carrier who are on board any such Codeshared Flight). 

30.3 In the event that there occurs a substantial change in market conditions in general or in 

the condition of either Party, which change is not substantially the result of an act or 

omission of the Party requesting a change or amendment to this Agreement, and which 

change has a material adverse effect on either Parry to this Agreement, then American or 

TN may propose a review of or amendment to this Agreement to limit or expand any of 

the terms, to extend the relationship to additional activities or city-pair destinations or 

otherwise to modify in any way the transactions or relationships contemplated in this 

Agreement. However, neither American nor TN will have any obligation, for any reason, 

to effect such an amendment. 

30.4 All rights, remedies and obligations of the Parties hereto shaIl accrue and apply solely to 

the Parties hereto and their permitted successors and assigns; there is no intent to benefit 

any third-parties, including the creditors of either Parry. 

30.5 This Agreement may be executed and delivered by the Parties in separate counterparts, 

each of which when so executed and delivered shall be an original, but a11 of which taken 

together shall constitute one and the same instrument. 

30.6 No failure to exercise and no delay in exercising, on the part of any Party, any right, 

remedy, power or privilege hereunder, shall operate as a waiver thereof; nor shall any 

single or partial exercise of any right, remedy, power or privilege hereunder preclude any 

other or further exercise thereof of the exercise of any other right, remedy, power or 

privilege. The rights, remedies, powers and privileges herein provided are cumulative 

25 
and not exclusive of any rights, remedies, powers and privileges provided by law. The 

failure of any Party to insist upon a strict performance of any of the terms or provisions 

of this Agreement, or to exercise any option, right or remedy herein contained, sha11 not 

be construed as a waiver or as a relinquishment for the future of such term, provision, 

option, right or remedy, but the same shall continue and remain in full force and effect. 

No waiver by any ParLy of any term or provision of this Agreement shal] be deemed to 

have been made unless expressed in writing and signed by such Party. 

30.7 This Agreement is the product of negotiations between TN and American, and shall be 

construed as if jointly prepared and drafted by them, and no provision hereof shall be 

construed for or against any Party by reason of ambiguity in language, rules of 

construction against the drafting Party, or similar doctrine. 

30.8 Although translations of this Agreement may be made into any other language for the 

convenience of the Parties, the English version will govern for all purposes of the 

interpretation and performance of this Agreement. 

30.9 Neither Parry shall be liable for any exemplary, punitive, special or consequential 

Damages, including lost revenues, lost profits or lost prospective economic advantage, 

arising from any performance or failure to perform under this Agreement, even if such 

Party knew or should have known of the possibility thereof, and each Party hereby 

releases and waives any claims against the other Party regarding such Damages. FOR 

THE AVOIDANCE OF DOUBT, THE PARTIES AGREE THE FOREGOING SHALL 

NOT LIMIT A PARTY'S OBLIGATION TO INDEMNIFY THE OTHER IN 

ACCORDANCE WITH SECTION 17 FOR DAMAGES ARISING OUT OF OR 

RELATING TO A CLAIM, SUIT OR CAUSE OF ACTION BY A THIRD PARTY. 

31. NOTICES 

Unless otherwise expressly required in this Agreement or the Procedures Manual, all notices, reports, 

invoices and other communications required or permitted to be given to or made upon a Party to this 

Agreement shall be in writing, shall be addressed as provided below and shall be considered as properly 

given and received: (i) when delivered, if delivered in person (and a signed acknowledgment of receipt is 

obtained); (ii) seven (7) Business Days after dispatch, if dispatched by a recog -nized express delivery 

service that provides signed acknowledgments of receipt; (iii) fifteen (15) Business Days after deposit in 

the applicable postal service delivery system; or (iv) if transmitted by facsimile, upon completion of 

transmission and upon confirmation by the sender (by a telephone ca11 to a Representative of the recipient 

or by machine confirmation) that the transmission was received. For the purposes of notice, the addresses 

of the Parties shall be as set forth below; provided, however, that either Parry shall have the right to 

change its address for notice to any other location by giving at least three (3) Business Days prior written 

notice to the other Parry in the manner set forth above. 

If to American Airlines, Inc.: 

26 
with a copy to: 

If to Air Tahiti Nui: 

[remainder of page left intentionally blankj 

27 0 
IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed and 

delivered by their proper and duly authorized officers, as of the Effecfive Date. 

AIR TAHITI NDI AMERICAN AII2LINE5, INC. 

By: By: 

Name: Mathieu Bechonnet Name: Kurt Stache 

Title: Vice President Network, Revenue Title: Vice President — International 

Management & Alliances 

Attachments: 

Annex A — Definitions 

Annex B — Codeshared Routes 

Annex C— Minimum Standards of Ground and In-Flight Services 

Annex D— Minimum Standards For Operating and Dependability 

Annex E — Financial Settlement 

Annex F — Governmental Approvals 

28 
ANNEX A 

DEFIloTITIONS 

"Affected Party" has the meaning assigned to such term in Section 25.1. 

"Affiliate" means, with respect to any Person or entity, any other Person or entity directly or indirectly 

controlling, controlled by, or under common control with, such Person or entity. For purposes of this 

defmition, "control" (including "controlled by" and "under common control with") means the power, 

directly or indirectly, to direct or cause the direction of the management and policies of such Person or 

entity, whether through the ownership of voting securities, by contract or otherwise. 

"Agreement" has the meaning assigned in the preamble to this Agreement. 

"Airline Guides" means the printed and electronic data versions of the "Official Airline Guide" and the 

"ABC World Airlines Guide," and their respective successors. 

"American" has the meaning assigned in the preamble to this Agreement. 

"Applicable Law" means all applicable laws of any jurisdiction including securities laws, tax laws, tariff 

and trade laws, ordinances, judgments, decrees, injunctions, writs, and orders or like actions of any 

Competent Authority and the rules, regulations, orders or like actions of any Competent Authority and the 

interpretations, licenses, and permits of any Competent Authority. 

"Assessment" has the meaning assigned to such term in Section 19.6. 

"ATPCO" means the Airline Tariff Publishing Company. 

"Authorized Affiliate" means with respect to American, American Eagle Airlines, Inc., Executive 

Airlines, Inc. and any air carrier operating flights with American's Code under the AmericanConnection ® 

brand name, currently Chautauqua Airlines, Inc., and with respect to TN, no other air carrier. 

"Business Day" means any day other than a Saturday, Sunday or other day in which banking institutions 

in New York, New York USA, or Papeete, Tahiti, French Polynesia, are required by law, regulation or 

executive order to be closed. 

"Carrier Code Box" means (i) for paper tickets, the field containing the two character airline designator 

code as defined in IATA Resolution 727, or (ii) for electronic (or e-) tickets the three alphanumeric 

characters contained in the "Sold Airline Designator (Marketing Carrier)" field as defined in IATA 

Resolution 722f. 

"CBP" means the U.S. Customs and Border Protection. 

"CDG" means Charles De Gaulle Lnternational Airport. 

"Code" means the two (2) character identifier assigned to a carrier by IATA for the purpose of 

exchanging interline carrier messages in accordance with AIRIMF procedures. 

"Codeshare Commission" has the meaning assigned to such term in Section 6.2. 

"Codeshared Flight" means a flight on which both Parties have placed their respective Codes, as defined 

in Section 2.1 and Annex B. 

A 1 ~~~ 
"Codeshared Routes" or "Routes" means the city-pair markets set out in Annex B. 

"Codeshared Passenger" means a passenger traveling on a Marketing Carrier Flight Coupon. 

"Committee" has the meaning assigned to such term in Section 20.1. 

"Competent Authorities" means any supranational, national, federal, state, county, local, regulatory or 

municipal government body, bureau, commission, board, board of arbitration, instrumentality, authority, 

agency, court, department, inspectorate, minister, ministry, official or public or statutory person (whether 

autonomous or not) having jurisdiction over this Agreement or either Party. 

"Conditions of Carriage" means those conditions of contract tariffs and rules of carriage of a Party that 

govern the transport of passengers traveling on tickets showing such Party's Code in the Carrier Code 

Box of the flight coupon. 

"Confidential Information" means (a) all confidential or proprietary information of a Party, including, 

without limitation, trade secrets, information concerning past, present and future research, development, 

business activities and affairs, finances, properties, methods of operation, processes and systems, 

customer lists, customer information (such as passenger name record or "PNR" data) and computer 

procedures and access codes; (b) the terms and conditions of this Agreement and any reports, invoices or 

other communications between the Parties given in connection with the negotiation or performance of this 

Agreement; and (c) excludes (i) information already in a Party's possession prior to its disclosure by the 

other Party; (ii) information obtained from a third Person or entity that is not prohibited from transmitting 

such information to the receiving Party as a result of a contractual, legal or fiduciary obligation to the 

Party whose information is being disclosed; (iii) information that is or becomes generally available to the 

public, other than as a result of disclosure by a Party in violation of this Agreement; or (iv) information 

that has been or is independently acquired or developed by a Party, or its Affiliate, without violating any 

of its obligations under this Agreement. 

"CRS" means a computerized reservations system owned or operated by any entity, including either Party 

to this Agreement, that contains information about commercial airline schedules, fares, cargo rates, 

passenger and cargo tariff rules and flight availability that is made available to travel agents, cargo agents 

and other non-airline entities to facilitate their ability to make reservations and issue tickets and air 

waybills. 

"Damages" means all third party claims, suits, causes of action, penalties, liabilities, judgments, 

demands, recoveries, awards, settlements, penalties, fines, losses and expenses of any nature or kind 

whatsoever (including, without limitation, internal expenses of the Indemnified Party, such as employee 

salaries and the costs of cooperating in the investigation, preparation or defense of claims) under the laws 

of any jurisdiction (whether arising in tort, contract, under the Warsaw Convention, as amended, or the 

Montreal Convention of 1999, as amended, and related instruments or otherwise), including reasonable 

costs and expenses of investigating, preparing or defending any claim, suit, action or proceeding 

(including post judgment and appellate proceedings or proceedings that are incidental to the successful 

establishment of a right of indemnification), sucb as reasonable attomeys' fees and fees for expert 

witnesses, consultants and litigation support services. 

"Disclosing Party" has the meaning assigned to such term in Section 25.1. 

"Effective Date" has the meaning assigned to sucb term in Section 16.1. 

"Excusable Delay" has the meaning assigned to such term in Section 21. 

A2 ~;~; 
"French Polynesia" means the French Overseas Lands of French Polynesia. 

"Frequent Flyer Participating Carrier Agreements" means the agreements, from time to time, between 

the Parties relating to the participation of one Party in the other Party's frequent flyer program. 

"Governmental Approvals" means any authorizations, Iicenses, certificates, exemptions, designations, 

or other approvals of Competent Authorities that are reasonably required (in the opinion of either Party) 

for the operation of the Codeshared Flights. 

"IATA" means the International Air Transport Association. 

"IATA Clearing House" means the clearing house established by IATA to administer and implement 

revenue settlement by reference to the Revenue Accounting Manual published by IATA. 

"IATA PMP" has the meaning assigned in Section 6.2(a). 

"Implementation Date" means the date of the first codeshare service operated under this Agreement. 

"Inadmissible Passengers" has the meaning defined in IATA Resolution 701, as modified, supplemented 

or amended from time to time. 

"Indemnification Notice" has the meaning assigned to such term in Section 17.3. 

"Indemnified Party" has the meaning assigned to such term in Section 17.3. 

"Indemnifying Party" has the meaning assigned to such term in Section 17.3. 

"Interline Service Charge" means the payment by the carrier lifting the ticket to the Ticketing Carrier, 

according to the industry program for compensation for the Ticketing Carrier's commission sales costs 

currently set forth in IATA Passenger Services Conference Resolutions 780b and 780d or as agreed 

between the respective carriers. 

"Interline Traffic Agreement" or "ITA" means that certain Interline Traffic Agreement entered into by 

the Parties, as may be amended, supplemented or modified from time to time. 

"IOSA" has the meaning assigned to such term in Section 3.1(c). 

"LAX" means Los Angeles International Airport. 

"Licensed Trademark" has the meaning assigned to such term in Section 13.3. 

"Lounge Access Agreement" means the agreement, if any, between the Parties relating to the access to a 

Party's airport lounges by the other Party's Codeshared Passengers traveling on a Codeshared Flight. 

"Marketing Carrier" means the air carrier whose Code is shown in the Carrier Code Box of a flight 

coupon for a Codeshared Flight but which is not the Operating Carrier. 

"1VIarketing Carrier Flight Coupon" means a flight coupon (electronic or paper) of a ticket issued by 

the Marketing Carrier, Operating Carrier or a third parry for travel on a Codeshared Flight showing the 

Marketing Carrier's Code (i) in the carrier code box in the case of a paper ticket, and (ii) in the 

transporting carrier field in the case of an electronic ticket. 

A3 
"Marketing Carrier Indemnified Party" has the meaning assigned to such term in Section 17.1. 

"Marketing Carrier Reviews" has the meaning assigned to such term in Section 10.3. 

"Marketing Carrier Ticket" means a ticket issued by the Marketing Carrier, Operating Carrier or a 

third-party that contains at least one Marketing Carrier Flight Coupon. 

"Marketing Flight(s)" means a Codeshared Flight when displayed, sold, or referred to as a flight of the 

Marketing Carrier rather than a flight of the Operating Carrier, such as when using the Marketing 

Carrier's name, designator Code and/or flight number. 

"Mutual Emergency Assistance Agreement" means the agreement between the Parties relating to 

provision of assistance by one Party to the other Party in the event of aircraft emergency. 

"oneworldTM Alliance" means the globally branded multilateral airline alliance in which American 

participates. 

"Operating Carrier" means the air carrier having operational control of an aircraft used for a given 

Codeshared Flight. 

"Operating Carrier Indemnified Party" has the meaning assigned to such term in Section 16.2. 

"Normal Fare" has the meaning assigned to such term in the IATA Prorate Manual Passenger Part 1, 

Section E. 

"Parent Carrier" means American or TN, if applicable, when referenced in relation to another carrier 

that is not a party to this Agreement and to which American or TN, if applicable, is Affiliated or from 

whom it wet leases aircraft, as applicable. 

"Party" or "Parties" means either or both of American and TN, as the context requires. 

"Payee" has the meaning assigned to such term in Section 19.4. 

"Payor" has the meaning assigned to such term in Section 19.4. 

"Person" means any individual, corporation, partnership, joint venture, association, joint stock company, 

trust, unincorporated organization or (except for the definition of "Affiliate" herein) government or any 

agency, authority or political subdivision of a government. 

"PPT" means Papeete International Airport. 

"Procedures Manual" means a detailed procedures manual prepared by the Parties for implementing the 

transactions contemplated by this Agreement. 

"Representatives" has the meaning assigned to such term in Section 25.1. 

"Reservations System" means the internal computerized airline passenger or cargo reservations system 

used by the personnel of an airline that contains information about flight schedules, fares, cargo rates, 

passenger and cargo tariff rules and seat availability of that airline and other carriers, and provides the 

ability to make reservations and issue tickets or air waybills. 

"Rules" has the meaning assigned to such term in Section 22.2. 

A4 
"Special Prorate Agreement" means any bilateral agreement, from time to time, between the Parties 

relating to the proration of interline revenue. 

"Taxes" means all taxes, assessments, fees, levies, imposts, duties, stamp taxes, documentary taxes or 

other charges of a similar nature, including, without limitation, income taxes, value-added taxes, sales 

taxes, excise taxes, transactional taxes, exchange control taxes and/or fees, and interest and penalties 

related to the foregoing, but excluding Ticket Taxes, that may be imposed by any Competent Authority. 

"Termination Date" means 23:59 Coordinated Universal Standard Time on the date provided in the 

notice of termination given in accordance with Section 16.1. 

"Ticketing Carrier" means a carrier whose traffic documents are used to issue a ticket. 

"Ticket Handling Fee" means the payment by the carrier lifting the ticket to the Ticketing Carrier for 

expenses incurred as a result of issuing the ticket. Such payment is a percentage, agreed upon bilaterally 

by the Parties, of the prorated value billed by the carrier that lifted the ticket. 

"Ticket Taxes" means any transactional taxes or passenger facility charges, including, without limitation, 

sales taxes, use taxes, stamp taxes, excise taxes, value added taxes, gross receipts taxes, departure taxes, 

surcharges and travel taxes, and all related charges, fees, licenses or assessments (and any interest or 

penalty thereon) imposed on passengers (or which air carriers or their agents are required to collect from 

passengers) by any authority in any country, or political subdivision thereof or public authority operating 

therein (including, without limitation any national, federal, state, provincial, territorial, local, municipal, 

port or airport authority) or which are tevied upon passengers by operation of Applicable Law or industry 

standard. Ticket Taxes together with the taxes referred to in Section 19.1 are collectively referred to as 

"Taxes". 

"TN" has the meaning assigned in the preamble to this Agreement. 

"US$" or "$" or "Dollars" means lawful currency of the United States of America. 

"U.S." or "United States" means the fifty states of the United States of America, the District of Columbia 

and the Commonwealth of Puerto Rico. 

A5 
ANNEX B 

CODESHARED ROUTES 

The Parties shall mutually designate certain flights serving the Codeshared Routes shown below on which 

the Parties shall place their respective Codes. The implementation date for each Codeshared Route shall 

occur on a date to be mutually agreed between the Parties, subject to obtaining all Governmental 

Approvals. In the event that all Governmental Approvals have not been obtained by the respective date 

agreed for some particular Codeshared Route(s), then the implementation date for each such Codeshared 

Route shall occur at a later date as mutually agreed by the Parties 

Codeshared Routes Operating Carrier 

Between LAX and:* 

AUS American 

BOS American 

DCA American 

DEN American 

DFW American 

EWR American 

IAD American 

IAH American 

JFK American 

LAS American 

MIA American 

ORD American 

PHX American 

RNO American 

SFO American 

SLC American 

TUS American 

Between LAX and: 

PPT TN 

*= It is agreed and understood between the Parties that TN may only place its Code on the flights 

operated by American on these Routes for purposes of connecting TN Codeshared Passengers to the 

scheduled flights operated by TN on the LAX-PPT Route. 

: 
ANNEX C 

MINIMUlYI STANDARDS OF GROUND AND IN-FLIGHT SERVICES 

The Parties agree that international ground and in-flight services should be competitive with other 

international carriers operating on the applicable Codeshare Routes, and that the services should remain 

competifive as improvements are made by other international carriers. The Parties also agree that the 

domestic ground and in-flight services should be competitive with other domestic carriers operating on 

the applicable Codeshared Routes, and that the services should remain competitive as improvements are 

made by other domestic carriers. Furthermore, the Parties agree that their ground and in-flight services 

should meet customer expectations, on an ongoing basis. In order to meet these objectives, TN and 

American may from time to time be required to implement service upgrades as mutually agreed upon by 

the Parties. 

Operating standards and general passenger procedures and policies for the Codeshared Flights are 

detailed in the Procedures Manual. 

The Parties agree to monitor in-flight consumer research on customer priorities and satisfaction. 

Benchmarking research will be conducted to prioritize individual product features based on their 

importance to overall customer satisfaction and to obtain customer satisfaction ratings for individual 

product categories as well as the overall airline experience. Ongoing research will also be conducted 

during the term of the contract, to monitor customer satisfaction. Where the two carriers have statistically 

d.ifferent ratings for two consecutive quarters after implementation, on individual product categories or 

the overall airline experience, the airline with the lower ratings will take measures to improve ratings to a 

level statistically equal to that of the higher carrier. For international Codeshared Flights, such consumer 

research will use American-operated international services as a comparative benchmark. The Parties will 

meet periodically to review customer satisfaction and benchmarking research data, in order to identify 

product categories that require improvement by the carrier(s). 

The Parties agree that the number of Codeshared Passenger complaints received by the Marketing Carrier 

regarding the Codeshared Flights will be measured twice a year by the Marketing Carrier as a ratio of 

Codeshared Passenger complaints per one thousand (1,000) passengers boarded. Codeshared Passenger 

complaints measured will be those from the following passenger groups: First and Business Class, Full 

Fare Coach, Premium Frequent Flyer Program Members, Airport Club Members, VIPs (very important 

persons), customers with disabilities, and complaints regarding sensitive issues (i.e., food poisoning, 

unaccompanied minors, discrimination, and international documents). If the ratio of Codeshared 

Passenger complaints for any one city-pair or for the total average of all of the Codeshared Flights, 

exceeds 0.50 per one thousand (1,000) passengers boarded for any half year period, the Operating Carrier 

agrees to take the appropriate corrective actions, upon notification by the Marketing Carrier. 

The Operating Carrier agrees to review passenger and baggage mishandling complaints and further, the 

Operating Carrier agrees to take the appropriate corrective actions. 

If the Operating Carrier fails to meet the standards established by this Annex C or incurs excess aircraft 

incidents affecting the Codeshared Flights, the Marketing Carrier, at its discretion, will be entitled to 

withdraw its Code from the affected Codeshared Flight(s). If the affected Codeshared Flights are not 

brought back into compliance with this Annex C within ninety (90) days following the removal of the 

Marketing Carrier's Code from the affected Codeshared Flight(s), the Marketing Carrier, at its discretion, 

will be entitled to terminate the Agreement in its entirety or with respect to the affected Codeshared 

Flight(s) pursuant to Section 16.4. 

Cl ~ ~ 
AUTOMATION 

The Parties shall develop, design and implement a computer automation system for the operational 

interface of each Party's current computer system in order to provide the highest quality product to 

Codeshared Passengers. Each Party will be responsible for the cost and expense associated with 

modifying its own computer system. The Parties shall, at a minimum, agree to develop, design and 

implement the automation of the following systems to support the Codeshared Flights: 

Automated Reservation (PNR) Exchange - The Operating Carrier will accept automatically Codeshared 

Passenger PNRs and Special Service Request (SSR) items from the Marketing Carrier's computer system. 

Pre-Reserved Seating - A mechanism will exist so 'that pre-reserved seating on the Codeshared Flights 

will be available to Codeshared Passengers. 

Flight Movement Messages - The Operating Carrier must provide, in a timely fashion, flight movement 

messages (e.g., departure, delay and arrival times) for the Codeshared Flights to the Marketing Carrier's 

computer system. 

Airport Check-in - Automation must exist between the Parties so that transiting passengers will not need 

to recheck-in at the transit city. Codeshared Passengers will check-in at the applicable origin station and 

be provided boarding passes for all segments of such Codeshared Passengers' itinerary. 

Hand Back Messages (Post Departure Reconciliation and Close-out) - The Operating Carrier must 

provide electronically a list of Codeshared Passengers who traveled on the Codeshared Flights. The 

preferred format is an IATA-standard Passenger Reconciliation L'rst (PRL). 

FACILITIES 

The Parties acknowledge the irnportance of maintaining functional and accurate signs identifying the 

Marketing Carrier, as appropriate, to facilitate passenger convenience and to avoid confusion at airports 

served by the Codeshared Flights. The Operating Carrier shall ensure that ticket counters at each station 

will identify prominently the Marketing Carrier, and promote the Marketing Carrier equally to the other 

airlines that have a similar cooperative relationship with the Operating Carrier at such airports. The 

Parties shall mutually agree on the placement of such signs, subject to the approval of the relevant airport 

authority or other lessors. 

The Operatiug Carrier will be responsible for the cost and expense associated with developing and 

installing the appropriate signs at airports served by the Codeshared Flights. 

Each Party shall make commercially reasonable efforts to depart from or amive at the same terminal at 

airports served by Codeshared Flights. 

GATE AND RAMP HANDLING 

The Operating Carrier shall arrange for trained personnel, acceptable to the Marketing Carrier, to handle 

all gate (including ramp handling) and boarding services of Codeshared Passengers on the Codeshared 

Flights. 

All costs, fines, and penalties incurred witb a refusal by the immigration (or equivalent) authorities of a 

country to permit entry of any Codeshared Passengers at a destination point, shall be borne by the 

Operating Carrier that delivers the passenger on the international segment of the itinerary. 

C2 
ANNEX D 

MINIlVIUM STANDARDS FOR OPERATIlVG ANI? DEPENDABILITY 

The Operating Carrier shall adhere to the following operation completion and dependability standards for 

each Codeshared Flight. Each Codeshared Flight shall have an operating completion rate of 

and an arrival rate of WIT ni'' of the scheduled 

arrival time, as measured on an average basis every during the term of this Agreement. The 

Operating Carrier shall measure the performance of the Codeshared Flights that it operates and provide 

such data to the Marketing Carrier. The Marketing Carrier shall be entitled to review and, if appropriate, 

dispute the accuracy of the Operating Carrier's data. 

If the Operating Carrier fails to meet the standards established by this Annex D with respect to any citypair market served by the Codeshared Flights, the Marketing Carrier shall be entitled, after providing the 

Operating Carrier with a reasonable opportunity to cure such failure (which shall not exceed ninety (90) 

days), to withdraw its Code from the affected city-pair market. If the affected Codeshared Flight is not 

brought back into compliance with this Annex D at the end of the next six-month period, the Marketing 

Carrier, at its discretion, shall be entitled to terminate this Agreement in its entirety or with respect to the 

affected city-pair market pursuant to Section 16.1. 

D1 
ANNEX E 

FINANCIAL SETTLEMENT 

Codeshare Commission 

The Codeshare Commission only applies to the Codeshared Flights operated by TN between LAX and 

PPT where American places its Marketing Canier Codea The Codeshare Commission will apply to all 

fares including, but not limited to, published fares, unpublished fares, corporate discounts, and net fares. 

The Codeshare Commission will apply to all coupons originally ticketed on or reissued (voluntary or 

involuntary) to a Marketing Flight between LAX and PPT. The Codeshare Commission for these 

Codeshared Flights will be calculated by multiplying the gross prorated value (as determined in 

accordance with Sections 6.2(a) and 6_3) of Marketing Can ier Flight Coupons by the applicable 

Codeshare Commission percentage, which for purposes of this Agreement, is detailed in the table below. 

The Ticketing Carrier, whether it be the Marketing Carrier or the Operating Carrier, will receive the 

Interline Service Charge, which will be in addition to the Codeshare Commission payable to the 

Marketing Carrier. 

The Codeshare Commission may be renegotiated by and between the Parties at any time by mutual 

written consent of the Parties hereto. 

E1 ~~4 
ANNEX F 

GOVERNMENTAL APPROVALS 

American shall secure and maintain the following governmental approvals: 

Economic authority (including Statement of Authorization under 14 CFR, Part 212) from the 

United States Department of Transportation ("DOT") to codeshare with TN over the Codeshared 

Routes. 

2. License from the French Civil Aviation Authorities and the French Polynesia Aviation Authority 

to enter into the codesharing arrangement with TN. 

TN shall secure and maintain the following governmental approvals: 

Economic authority from the French Civil Aviation Authorities and the French Polynesia 

Aviation Authority to codeshare with American over the Codeshared Routes. 

2. Economic authority from the DOT (including Statement of Authorization under 14 CFR, Part 

212) to codeshare with American. 

F 1 ,-I'S