Order 2014

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UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation

on the 7 th of March

, 20 14

Served: May 9 , 2014

D ocket 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, A merican 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 C hina. 1 Because of the public convenience and necessity basis for granting this

1 See Order 2007

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- 26. In the Matter of

2007/2008/2009 U.S.

- CHINA AIR SERVICES

AND COMBINATION FREQUENCY

ALLOCATION PROCEEDING

Application of

AMERICAN AIRLINES, I NC.

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 fi led.

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 valuab le 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 issu e temporary, experimental certificates

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

Findings and Conclusions

In view of the foregoi ng and all facts of record, we f ind and conclude that:

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

authority in the form attached;

2. T he 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

t o 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 subje ct 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 notice able data, we

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

Order 2010

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- 2 4 ). 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 fi tness 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. T here are no material, determinative issues of fact requiring such

procedures for their resolution.

ACCORDINGLY,

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

public convenience and necessity to American Air lines, 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 61 st 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 Negotiatio ns)

, 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 61 st day is May 7 , 20 1 4

. Since the President’s designee did not disapprove this Order before that date it became effective on May 7 , 20 1 4

.Appendix A



# Experimental

Certificate of Public

Convenience and Necessity

for

ROUTE 826

(as reissued )

This Certifies That



# AMERICAN AIRLINES, INC.

i s 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

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- 3 Paul L. Gretch

On March 7

, 20 14 Director, Office of

Effective on May 7 , 20 14 International Aviation*As renewed by

Order 2014

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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 time s 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 or ders 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 additio nal 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 s uch 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, m ethods, 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 applicatio n 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, i ncluding, 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

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Route 826

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(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 ter m is defined in 14 CFR 204 of the Depar tment’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 re commence 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 , 20 1 4 . It shall expire May 7

, 201 9 , unless the Department

earlier suspends, modifies, or deletes the authority.