Order 2014-5-3

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, DC

Issued by the Department of Transportation

on the 7th of March, 2014

Served: May 9, 2014

Docket DOT-OST-2007-28567

 

ORDER ISSUING CERTIFICATE

Summary

By this order we renew American Airlines, Inc.’s (American) certificate authority to provide 

scheduled foreign air transportation of persons, property and mail between Chicago, Illinois and 

Beijing, People’s Republic of China. 

Application

By application filed September 3, 2013, American requested renewal of segment 2 of its

certificate of public convenience and necessity for Route 826 authorizing scheduled foreign air 

transportation of persons, property, and mail between Chicago, Illinois and Beijing, People’s 

Republic of China.1 Because of the public convenience and necessity basis for granting this 

 1 See Order 2007-12-26.

In the Matter of 

2007/2008/2009 U.S.-CHINA AIR SERVICES 

AND COMBINATION FREQUENCY 

ALLOCATION PROCEEDING

Application of 

AMERICAN AIRLINES, INC.

Under 49 USC 41101 and 14 CFR 377 for renewal 

of Segment 2 of certificate of public convenience 

and necessity for Route 826 (Chicago-Beijing)
application is clear, and the application is not controversial, it is appropriate to use simplified, 

Subpart B procedures to grant the requested authority. 2

No answers were filed.

Decision

We have decided, under assigned authority, to grant American’s request for a renewed five-year 

certificate of public convenience and necessity for Route 826 authorizing scheduled foreign air 

transportation of persons, property, and mail between Chicago, Illinois and Beijing, People’s 

Republic of China.

3 The authority sought by the applicant is consistent with the civil aviation 

agreement between the United States and China and uses rights for which the United States has 

exchanged valuable operating rights. 

Terms, Conditions, and Limitations

The certificate of public convenience and necessity is subject to the standard terms, conditions, 

and limitations we consistently impose in the public interest. Duration of certificate authority is 

determined by the nature of the routes at issue. Where routes may be served by multiple U.S. 

carriers, without restrictions on additional entrants, the certificates are of indefinite duration. 

Where, as here, limited-entry routes are involved, we issue temporary, experimental certificates 

of five years’ duration under 49 U.S.C. § 41102(c).4 

Findings and Conclusions 

In view of the foregoing and all facts of record, we find and conclude that:

1. It is consistent with the public convenience and necessity to issue the applicant certificate 

authority in the form attached; 

2. The applicant is a citizen of the United States and is fit, willing, and able to perform 

properly the foreign air transportation described in the attached certificate and to conform 

to the provisions of Subtitle VII of Title 49, United States Code (Transportation), and to the 

Department’s rules, regulations, and requirements; 

3. The public interest requires that the exercise of the privileges granted by the attached 

certificate be subject to the terms, conditions, and limitations contained in and attached to 

the certificate and to such others required by the public interest as the Department may 

prescribe; 

 2

14 CFR 302.212 et seq. Under Rule 33(b) we may, in our discretion, omit a tentative decision in proceedings under 

Subpart B and proceed directly to a final decision. 3 We find that grant of this authority is consistent with the public interest and, based on officially noticeable data, we 

find that American is fit to conduct the scheduled foreign air transportation for which it seeks authority here (see

Order 2010-12-24). American is an operating certificated air carrier, for which the authority at issue here would not 

constitute a substantial change in operations requiring further review by the Department. No information has come 

to our attention which leads us to question the fitness of American to perform the authority it seeks. 4 14 CFR Part 399.120.
4. The issuance of this certificate does not constitute a major regulatory action under the 

Energy, Policy and Conservation Act of 1975, as defined by section 313.4(a)(1) of the 

Department’s regulations;5 and

5. The public interest does not require an oral evidentiary hearing or a show-cause proceeding 

on this application. There are no material, determinative issues of fact requiring such 

procedures for their resolution. 

ACCORDINGLY, 

1. We renew and reissue, as appropriate and as stated, in the form attached, a certificate of 

public convenience and necessity to American Airlines, Inc. to provide scheduled foreign air 

transportation of persons, property and mail between Chicago, Illinois and Beijing, People’s 

Republic of China;

2. The certificate issued to American Airlines, Inc. will be effective upon the service date of 

this order; 

3. Unless disapproved by the President of the United States under 49 U.S.C. § 41307, this order 

shall become effective on the 61st day after its submission for section 41307 review or upon 

the date of receipt of advice from the President or his designee under Executive Order 12597 

and implementing regulations that he or she does not intend to disapprove the Department’s 

order under that section, whichever occurs earlier; and 6

4. To the extent not granted, explicitly denied, or dismissed, we deny all motions and requests 

in this docket;

5. We will serve a copy of this order on American Airlines, Inc., the Embassy of China in 

Washington, D.C., the U.S. Department of State (Office of Aviation Negotiations), and the 

Federal Aviation Administration.

By:

PAUL L. GRETCH

Director

Office of International Aviation

(SEAL)

An electronic version of this document is available on the World Wide Web at:

http://www.regulations.gov

 5

 Our finding is based on the fact that grant of the application would not result in a near-term increase in annual fuel 

consumption in excess of 10 million gallons.

6 This order was submitted for review under 49 USC Section 41307 on March 7, 2014. The 61st day is May 7, 2014. 

Since the President’s designee did not disapprove this Order before that date it became effective on May 7, 2014. 
Appendix A

Experimental

Certificate of Public

Convenience and Necessity

for

ROUTE 826

(as reissued) 

This Certifies That

AMERICAN AIRLINES, INC.

is authorized, subject to the provisions of Subtitle VII of Title 49 of United 

States Code, the orders, rules, and regulations issued thereunder, and the 

attached Terms, Conditions, and Limitations, to engage in foreign air 

transportation of persons, property and mail.

This certificate is not transferrable without the approval of the Department of 

Transportation. 

 By Direction of the Secretary

Issued by Order 2014-5-3 Paul L. Gretch 

On March 7, 2014 Director, Office of 

Effective on May 7, 2014 International Aviation
*As renewed by 

Order 2014-5-3

Route 826

Page 1 of 2

Terms, Conditions, and Limitations

American Airlines, Inc.

for Route 826

is authorized to provide scheduled foreign air transportation of persons, property and mail between 

Chicago, Illinois and Beijing, People’s Republic of China. 

This authority is subject to the following conditions:

(1) The holder shall at all times conduct its operations in accordance with the regulations prescribed 

by the Department of Transportation for the services authorized by this certificate, and with such other 

reasonable terms, conditions, and limitations as the Department of Transportation may prescribe in the 

public interest.

(2) The holder shall at all times conduct its operations in accordance with all treaties and agreements 

between the United States and other countries, and the exercise of the privileges granted by this certificate 

is subject to compliance with such treaties and agreements and with any orders of the Department of 

Transportation issued under them. To the extent that the holder has authority to serve more than one 

country or points in more than one country on the same route segment, that authority does not confer 

upon the holder any additional rights (including fifth-freedom intermediate and/or beyond rights) in 

limited-entry markets unless the Department has completed any necessary carrier selection procedures to 

determine which carrier(s) should be authorized to exercise such rights. In such cases, the fact that the 

carrier may hold authority to serve the countries (points) at issue on the same segment will not be 

considered as providing any preference to the holder in a carrier selection proceeding.

(3) The exercise of the authority granted here is subject to the holder’s first obtaining from the 

appropriate foreign governments such operating rights as may be necessary. 

(4) The holder acknowledges that this certificate is granted to determine if the holder’s projected

services, efficiencies, methods, rates, fares, charges, and other projected results will, in fact, materialize 

and remain for a sustained period of time, and to determine whether the holder will provide the innovative 

and low-priced air transportation it proposed in its application for this authority.

(5) The holder’s authority is effective only to the extent that such operations comply with all 

applicable requirements of the Federal Aviation Administration, the Transportation Security 

Administration, and with all applicable U.S. Government requirements concerning security, including, but 

not limited to, 49 CFR Part 1544. To assure compliance with all applicable U.S. Government 

requirements concerning security, the holder shall, before commencing any new service (including charter 

flights) to or from a foreign airport, contact its Principal Security Inspector (PSI) to advise the PSI of its 

plans and to find out whether the Transportation Security Administration has determined that security is 

adequate to allow such airport(s) to be served.
*As renewed by

Order 2014-5-3

Route 826

Page 2 of 2

(6) The holder shall at all times remain a “Citizen of the United States,” as required by 49 U.S.C. 

40102(a) (15).

(7) The holder shall maintain in effect liability insurance coverage as required under 14 CFR Part 

205. Failure to maintain such insurance coverage will render a certificate ineffective, and this or other 

failure to comply with the provisions of Subtitle VII of 49 U.S.C. or the Department’s regulations shall be 

sufficient grounds to revoke this certificate.

(8) Should the holder propose any substantial changes in its ownership, management, or operations 

(as that term is defined in 14 CFR 204 of the Department’s regulations), it must first comply with the 

requirements of 14 CFR 204.5.

(9) In the event the holder ceases all operations for which it was found “fit, willing, and able,” its 

authority under this certificate shall be suspended under the terms of 14 CFR 204.7 and the holder may 

neither recommence nor advertise such operations unless its fitness to do so has been redetermined by the 

Department. Moreover, if the holder does not resume operations within one year of its cessation, its 

authority shall be revoked for dormancy.

This certificate shall become effective May 7, 2014. It shall expire May 7, 2019, unless the Department 

earlier suspends, modifies, or deletes the authority.