Order 2011-8-9

UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation
on the 2nd of June , 2011

Served: August 4, 2011

In the Matter of Blanket Open-Skies Route Authority for:

American Eagle Airlines, Inc.

under a certificate of public convenience and necessity pursuant to 49 USC 41101 Dockets DOT-OST-2005-22228
DOT-OST-2011-0068

ORDER ISSUING CERTIFICATE

Summary

By this order we grant American Eagle Airlines, Inc. (American Eagle) ce rtificate authority to provide combination service to all of our foreign aviation partners that have entered into an openskies agreement with the United States where thatagreement is being applied (hereafter “openskies partners”).

Application

On March 29, 2011, American Eagle applied for bla nket open-skies certificat e authority to conduct scheduled foreign air transportati on of persons, property and mail, consistent with our open-skies licensing and streamlining initiative. 1 American Eagle filed and perfected its application as required by 14 CFR Part 201 and served the application as required by 14 CFR § 302.203. 2

1 See the Notice issued April 3, 2007, in Docket DOT-OST-2005-22228.

2 No answers were filed.Decision

Under assigned authority and consistent with our streamlining and blanket open-skies certificate initiatives, we have decided to grant American Eagle certificate authorit y to serve all open-skies partners; that is, foreign aviation partners with which the United States has entered into an openskies agreement where that agreement is being applied. 3 We have also decided to grant to American Eagle certificate au thority to serve Brunei Darussalam, Chile, Cook Islands, New Zealand, Samoa, Singapore, and Tonga, each a si gnatory to the Multilateral Agreement on the Liberalization of International Air Transportation (“MALIAT”). 4 Our action here establishes for
the carrier a new route cer tificate, in the form attached at Ap pendix A. We find that grant of the
certificate is consistent with the public convenience and necess ity. We find further that the pending open-skies request is not co ntroversial and that it is appropr iate to grant the authority at
issue here under si mplified procedures. 5

We will also grant the carrier blanket authority such that when an additional foreign aviation partner enters into an open-skies agreement with the United States, and where that agreement is being applied, authority to serve th at open-skies partner will automati cally be included as part of
the carrier’s certificate authorit y without the need for further action by the Department or the
carrier. We find that the award of such author ity, on a prospective basi s, with the enhanced
administrative convenience it would accord to the carri er, is consistent with the public interest.

The Department’s Office of International Aviation maintains a list of currently applied open-skies aviation agreements between the United States and its open-skies partners. 6 The Department will update the list as open-skies partners are added. 7 8

The attached form of certificate is consistent wi th open-skies aviation agreements that are currently being applied and that authori ze the use of rights for which the United States has exchanged valuable operating rights. All of the authority conferred here c ontributes to the va riety of price and service options available to travelers and shippers.

3 We find that grant of this authority is consistent with the public interest. Ba sed on officially noticeable data, we find that the carrier is an operatin g certificated air carrier and that it is qualifie d to provide the services proposed. By Order 98-4-24, the Department found the carrier fit, willing, and able to engage in foreign scheduled air transportation of persons, property, and mail using large aircraft. No inform ation has come to our attention which leads us to question the fitness of the applicant being awarded authority here to conduct air transportation operations. Should the carrier’s proposed exercise of the authority granted here result in a substantial change in operations, the carrier must first comply with the requirements of 14 CFR 204.5.

4 We have open-skies relationships with the Cook Islands, Samoa and Tonga, under the MALIAT. Also, the MALIAT supersedes our bilateral open-skies agreements with Brunei, Chile, Ne w Zealand, and Singapore.

5 In accordance with 14 CFR § 302.207, et seq ., we may, in our discre tion, omit a tentative decision in proceedings and proceed directly to a final decision.

6 See http://ostpxweb.dot.gov/aviation/international/agreementsbeingapplied.htm for the list of open-skies agreements that are being applied.

7 Each U.S. air carrier holding a blanket open-skies certif icate shall be responsible for operating at all times in compliance with the list maintained by the Department.

8 The Department will also update the list if an open-skies pa rtner is removed and will provide notice when this occurs. If an open-skies partner is removed we will allow a carrier 120 days to seek ex emption authority to serve that foreign aviation partner, as the certificate auth ority to serve that foreign aviation partner will no longer be effective 120 days from its removal from the list. Notice will be provided by publication in the Federal Register.We therefore find, under assigned au thority, that the public interest warrants granting American Eagle certificate authority in the form attached at Appendix A and subject to the conditions
attached.

The attached certificate of public convenience and necessi ty 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, as here, routes may be served by multiple U.S. carriers, without restrictions on additional entrants, th e certificates are of
indefinite duration.

The authority granted by this orde r supersedes any orders previously issued or actions taken by the Department granting the carrier opera ting rights to an open-skies partner. For those services currently operated under an exemption, the exemp tion will terminate upon th e effectiveness of the attached certificate of public c onvenience and necessity. Currently authorized certificate authority to serve an open-skies partner wi ll be realigned such that all aut hority held by the carrier to serve markets covered by a currently applied open-skie s agreement is consolidated into a single
certificate.

Findings and Conclusions

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

1. It is consistent with the public convenie nce and necessity to issue American Eagle Airlines, Inc. a certificate in the form attached;

2. On the basis of data officially noticea ble under 14 CFR 302.24 of the Department’s regulations, the captioned air carr ier is a citizen of the United States and is fit, willing, and able to perform properly the foreign ai r 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, re gulations, and requirements;

3. The public interest requires that the exercise of the privile ges granted by the attached certificate be subject to the terms, conditions and limitations contained in the attached certificate and to such others required by th e public interest as the Department may prescribe;

4. The issuance of the attached certificate to American Eagle Airlines, Inc. 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; 9 and

5. The public interest does not require an or al evidentiary hearing or a show-cause proceeding on the applications and the acti ons taken here. There are no material, determinative issues of fact requiring such procedures for their resolution.

9 Our finding is based on the fact that the grant of this portion of the application would not result in a near-term increase in annual fuel consumption in excess of 10 million gallons.In view of the above, and acting under authority assigned by the Department in its regulations, 14 CFR Part 385, we find that our action here is consistent with Department policy.

ACCORDINGLY,

1. We issue, in the form attached in Appe ndix A, a certificate of public convenience and necessity to American Eagle Airlines, Inc., to serve open-skies partners, as defined by this order;

2. This order supersedes any orders pr eviously issued or actions taken by the Department granting the carrier operating rights, by certi ficate or exemption, to an open-skies partner;

3. The certificate issued to American Eagle Airlines, Inc. will be effective upon the service date of this order;

4. Unless disapproved by the President of the United States under 49 U.S.C. § 41307, this order shall become effective upon th e 61st day after its submission for § 41307 review, or upon the date of receipt of a dvice from the President or his designee under Executive Order 12597 and implementing regulat ions that he or she does not intend to disapprove the Department’s order unde r that section, whiche ver occurs earlier; 10

and

5. We will serve this order on Amer ican Eagle Airlines, Inc., the Ambassador in Washington, D.C. of each foreign aviation pa rtner that the applicant seeks authority to serve, the U.S. Department of Stat e (Office of Aviation Ne gotiations), and the
Federal Aviation Administration.

By:

PAUL L. GRETCH
Director
Office of International Aviation

(SEAL)

Appendix

An electronic version of this document is available on the World Wide Web at http://www.regulations.gov

10 This order was submitted for section 41307 review on June 2, 2011. The 61 st day is August 2, 2011. Since the President’s designee did not disapprove this order before that date, it became effective on August 2, 2011.APPENDIX A



# Certificate of Public Convenience and Necessity
For

Route 905

This Certifies That



# American Eagle Airlines, Inc.

is authorized subject to the provisions of Subtitle VII of Title 49 of the United States Code the orders rules and reg ulations issued thereunder and the
attached Terms Conditions and Limita tions to engage in foreign air transportation of persons, property and mail.

This Certificate is not tr ansferable without the appr oval of the Department of Transportation.

By Direction of the Secretary

Issued by Order 2011-8-9 Paul L. Gret ch On June 2, 2011 Director, Office of Effective On August 2, 2011 International Aviation

## Terms Conditions and Limitations

American Eagle Airlines, Inc. for Route 905

is authorized to engage in scheduled forei gn air transportation of persons, property, and
mail between the United States and: 11 12

Albania
Armenia
Aruba
Australia
Austria
Bahrain
Barbados Belgium Bosnia-Herzegovina Bulgaria
Burkina Faso
Cameroon
Canada Cape Verde
Chad
Costa Rica Cyprus Czech Republic
Denmark
El Salvador
Estonia Ethiopia
Finland
France
Gabon The Gambia Germany
Ghana Georgia
Greece
Guatemala
Honduras Hungary
Iceland
India
Indonesia
Ireland
Israel Italy
Jamaica Japan
Jordan Kenya Korea, Republic of
Kuwait
Laos
Latvia
Liberia
Lithuania Luxembourg Madagascar Malaysia
Maldives
Mali Malta
Morocco
Namibia
Netherlands
Netherlands Antilles Nicaragua Nigeria Norway
Oman
Pakistan
Panama Paraguay
Peru
Poland Portugal Qatar
Romania
Rwanda Senegal Slovak Republic
Slovenia Spain
Sri Lanka Sweden
Switzerland
Taiwan
Tanzania
Thailand Trinidad and Tobago Turkey Uganda
United Arab Emirates United Kingdom 13 Uruguay
Uzbekistan
Zambia

MALIAT Membership
Brunei Darussalam
Chile
Cook Islands Mongolia (cargo-only)
New Zealand
Samoa Singapore Tonga

Cargo Open-Skies Only Argentina
Vietnam

11 The authority granted here to serve between the Un ited States and the listed open-skies partners includes authority to operate via the United States and intermed iate points to a point or points within the places identified, and beyond, to the extent the appli cable aviation agreement grants such rights.

12 This list, as of May 2011, identifies all current open -skies partners, that is (1) aviation partners with whom the United States has an open-skies agreement that is currently being applied and (2) aviation partners that are a signatory to the MALIAT. All future open-skies partners shall be included in the carrier’s certificate authority withou t the need for further action by th e Department or the carrier. The Department’s Office of International Aviation maintains a list at http://ostpxweb.dot.gov/aviation/international/agreementsbeingapplied.htm . The holder shall be responsible for operating at all times in compliance with the list maintained by the Department.

13 This does not apply to UK dependencies.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 reas onable 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 its foreign aviation partners, and the exercise of the privileges granted by this certificate is subject to compliance with such treaties and agreements and w ith any order of the Departme nt of Transportation issued
under them. To the extent that the holder ha s authority to serve more than one foreign aviation partner or points in more than one foreign aviation partner on the same route, that authority does not confer upon the hol der any additional ri ghts (including fifthfreedom intermediate and/or beyond rights) in limited-entry markets unless the Department has completed any necessary carrie r selection procedures to determine which carrier(s) should be authorized to exercise such rights and has notified the foreign aviation partner(s) involved that any such sele cted carrier(s) has the required authority. In such cases, the fact that the carrier may hold authority to serve the foreign aviation partner at issue on the same segment will not be considered as providing any preference
to the holder in a carri er selection proceeding.

(3) The exercise of the authority granted here is subject to the holder’s first obtaining from the appropriate foreign governments su ch operating rights as may be necessary.

(4) The holder’s authority to serve an open -skies partner under th is certificate is effective as long as that open-skies agreement is being applied. If an open-skies agreement has been terminated or is no longe r being applied, the hol der’s authority under this certificate to serve that open-skies pa rtner will terminate in accordance with the following procedures. The Department will i ssue a Notice and provide official notice in the Federal Register announcing its decision to remove an open -skies partner from the list of open-skies aviation agreements maintained by the Department. The holder’s authority
under this certificate to serv e the named open-skies partne r(s) will terminate 120 days after the publication date of the Notice. The holder may file an application for exemption authority to continue service to that foreign aviation partner after th e termination date.

(5) The holder’s authority under this certifi cate is effective only to the extent that such operations comply with all applicable requiremen ts of the Federal Aviation Administration, Transportation Security Admi nistration, and with all applicable U.S. Government requirements concerning securi ty, including, but not limited to, 40 CFR Part 1544. To assure compliance with all app licable U.S. Government requirements concerning security, the holde r shall, before commencing any new service (including charter flights) to or from a foreign airport, contact its International Principal Security Inspector (IPSI) to advise the IPSI of its pl ans and to find out whether the Transportation Security Administration has determined that secu rity is adequate to allow such airport(s)
to be served.(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 liab ility insurance covera ge as required under
14 CFR Part 205. Failure to maintain such in surance coverage will render a certificate ineffective, and this or other failure to comply with the provi sions of Subtitle VII of 49 U.S.C. or the Department’s regulations sh all be sufficient grounds to revoke this
certificate.

(8) Should the holder propose any substan tial changes in its ownership, management, or operations (as that term is defined in 14 CFR 204.2(l)), it must fi rst comply with the requirements of 14 CFR 204.5.

(9) In the event that the hol der ceases all operations fo r which it was found “fit, willing, and able,” its authority under this ce rtificate shall be susp ended under the terms of 14 CFR 204.7 and the holder may neither recommence nor advert ise such operations unless its fitness to do so has been determined by the Department.

This certificate shall beco me effective August 2, 2011.