UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC



### Issued by the Department of Transportation on May 18

, 2015

NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 2015

- 0097

_________________________________________________________________________________________________________ This serves as notice to the public of the action described below, taken by the Department official indicated (no additional confirming order will be issued in this matter).

Application of AMERICAN AIRLINES, INC. ( AMERICAN )

, filed 4 /2 9 /15 for :

XX E xemption for two years under 49 U.S.C. 40109 to provide the following service:

Scheduled foreign air transportation of persons, property, and mail between Los Angeles,

California and Mazatlán , Mexico

. 1 2

Applicant rep s : Howard Kass, Robert A. Wirick, and Abigail Donovan (202) 326

- 5153

DOT Analyst: Darren Jaffe (202) 366

- 2512

D I S P O S I T I O N

XX Granted (subject to conditions, see below)

The above action was effective when taken: May 18 , 2015

, through May 18 , 201 7

.

Action take n by: Paul L. Gretch, Director

Office of International Aviation

XX The authority granted is consistent with the aviation agreement between the United States and

Mexico.

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

indicated:

XX The holder’s certificates of public convenience and necessity

XX Standard exemption conditions (attached)

Conditions : The U.S.

- Mexico exemption authority granted is subject to the dormancy notice requirements set forth in condition 7 of Appendix A of Orde r 88

- 10

- 2. Consistent with our standard policy, the dormancy notice period will begin on November 7, 2015, the date on which American proposes to commence the subject service.

The exemption authority granted to American is limited to services provided on a code

- share basis only.

The code

- share operations conducted under this authorization are subject to the following conditions:

1 American inte nds to serve this market beginning Novem b er 7, 2015, pursuant to a codesharing arrangement with Compass Airlines, LLC ( Compass )

, whereby American will place its code on flights operated by Compass

. 2 Compass holds exemption authority to serve the Los Angeles

- Mazatlán market. See Notice of Action Taken dated May 15, 2015, in Dockets DOT

- OST

- 2014

- 0045, DOT

- OST

- 1997

- 3289, and DOT

- OST

- 2000

- 7708.(a) The code

- sharing operations conducted under this authority must comply with 14 C.F.R. 257 and with any amendments to the Department’s regulations concerning code

- share arrangements that may be adopted. Notwithstanding any provisions in the contract between the carriers, our approval here is expressly conditioned upon the requirements that the subject foreign air

tran sportation be sold in the name of the carrier holding out such service in computer reservation systems and elsewhere; that the carrier selling such transportation (i.e., the carrier shown on the ticket) accept responsibility for the entirety of the code

- sh are journey for all obligations

es tablished in its contract of carriage with the passenger; and that the passenger liability of the operating carrier be unaffected; and

(b) The authority granted here is specifically conditioned so that neither Compass nor American shall give any force or effect to any contractual provisions between themselves that are contrary to

these conditions.

______________________________________________________________________________ O n the basis of data officially noticeable under Rule 24(g) of the Department's regulations, we found the applicant qualified to provide the exemption services authorized.

Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our action was consistent with Dep artment policy; (2) grant of the authority was consistent with the public interest; and (3) grant of the authority would not constitute a major regulatory action under the Energy Policy and Conservation Act of 1975. To the extent not granted, we denied al l requests in the referenced

Docket. We may amend, modify, or revoke the authority granted in this Notice at any time without hearing at our discretion.

Persons entitled to petition the Department for review of the action set forth in this Notice under t he Department’s regulations, 14 CFR §385.30, may file their petitions within seven (7) days after the date of issuance of this Notice. This action was effective when taken, and the filing of a petition for review will

not alter such effectiveness.

An ele ctronic version of this document is available on the World Wide Web at: http://www.regulations.govATTACHMENT

U.S. Carrier Exemption Conditions

In the conduct of the operations authorized, the U.S. carrier applicant(s) shall:

(1) Hold at all times effective operating authority from the government of each country served;

(2) Comply with applicable requirements concerning oversales contained in 14 CFR 250 (for scheduled operations, if authorized);

(3) Comply with the requirements for reporting data contained in 14 CFR 241;

(4) Comply with requirements for minimum insurance coverage, and for certifying that coverage to the Department, contained in 14 CFR 205;

(5) Except as specifically exempte d or otherwise provided for in a Department Order, comply with the requirements of 14 CFR 203, concerning waiver of Warsaw Convention liability limits and defenses;

(6) Comply with all applicable requirements of the Federal Aviation Administration, the Transportation Security Administration, and with all applicable U.S. Government requirements concerning security, including, but not limited to, 49 CFR Part 1544. To assure compliance with all applicable U.S. Government requirements concerning security, t he 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 ha s determined that security is adequate to allow such airport(s) to be served;

(7) Comply with such other reasonable terms, conditions, and limitations required by the public interest as may be prescribed by the Department of Transportation, with all app licable orders and regulations of other U.S. agencies and courts, and with all applicable laws of the United States.

The authority granted shall be effective only during the period when the holder is in compliance with the conditions imposed above.



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