UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY WASHINGTON, DC



### Issued by the Department of Transportation on September 7, 2010

NOTICE OF ACTION TAKEN

- DOCKET DOT

- OST

- 2010

- 0222

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

Application of AMERICAN AIRLINES, INC. ( American )
, filed 9 /2/10
, for:

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

Scheduled foreign air transportation of persons, property, and mail between (1) Los Angeles, California, and Mexico City, Mexico; (2) Los Angeles, California, and Guadalajara, Mexico; (3) Los Angeles, California, and La Paz, Mexico; (4) Los Angeles, California, and Loreto, Mexico; (5) Los Angeles, California, and Mazatlan, Mexico; (6) Los Angeles, California, and Ixtapa/Zihuatanejo, Mexico; (7) Los Angeles, California, and Manzanillo, Mexico; (8) Los Angeles, California, and Puerto Vallarta, Mexico; (9) San Diego, California, and Puerto Vallarta, Mexico; and (10) San Francisco, California, and Puerto Vallarta, Mexico. 1

Applicant rep: Carl B. Nelson, Jr. ( 202) 496

- 5647 DOT Analyst: Linda L. Lundell (202) 366

- 2336

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: September 7
, 2010, through September 7
, 2012

.
Action taken 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 Order 88

- 10

- 2

, and the notice requ irements for seasonal/intermittent service as set
forth in Order 96

- 11

- 24, at 5.

The exemption authority granted to American is limited to code

- share services only.

- see next page

-

1 American proposes to use the requested authority by placing its AA* designator code on the flight s of A laska Airlines, Inc. (Alaska) or Horizon Air Industries, Inc. (Horizon) , as soo n as all regulatory approvals are obtained. In this regard, we note that Horizon is authorized to provide year

- round d irect

- carrier (own

- aircraft) services in the Los Angeles

- La Paz/Loreto markets (Dockets DOT

- OST

- 2008

- 0172 and DOT

- 2009

- 0180, respectively ), and Alaska is authorized to provide year

- round direct

carrier services in the L os Angeles

- Mexico City (Docket DOT

- OST

- 2005

- 20406), Los Angeles

- Guadalajara (Docket DOT

OST

- 2003

- 14542), Los Angeles

- Mazatlan/ I xtapa/Zihuatanejo/Manzanillo/Puerto Vallarta and San Francisco

- Puerto Vallarta markets (Docket DOT

- OST

- 1999

- 6276); and seasonal direct

- carrier services in the San Diego

- Puerto Vallarta market (DOT

OST

- 2010

- 0103).The code

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

(a) The code

- sharing operations conducted under this authority must comply with 14 CFR 25 7 and with any amendment 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 transportation 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 o n the ticket) accept responsibility for the entirety of the
code

- share journey for all obligations established 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 none of the subject code

- share partners shall give any force or effect to any contractual provisions between themselves that are contrary to these
conditions.

Remarks : We acted on this application without awaiting expiration of the 15

- day answer period with the consent of all parties served with a copy of the application.

On 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 Department 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 all requests in the referenced Docke t

. 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 the Department’s regulations, 14 CFR §385.30, may file their petitions with in 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 electronic version of this document is available on the World Wide Web at: 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 exempted or otherwise provided for in a Department Order, comply with the

requ irements 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. Gov ernment 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 fl ights) 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 se rved; and

(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 applicable 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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