Document ID: DOT-OST-2006-26716-0002
Agency: dot
Document Type: Notice
Title: Notice of Action Taken re: American Airlines, Inc. and Alia - The Royal Jordanian Airlines
Posted Date: 2007-03-23T04:00Z

UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on March 23, 2007

NOTICE OF ACTION TAKEN -- DOCKET OST-2006-26716

________________________________________________________________________
________________________________________________________

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).

Joint Application of AMERICAN AIRLINES, INC. (AMERICAN)  and ALIA –
THE ROYAL JORDANIAN AIRLINES (ROYAL JORDANIAN) filed 12/21/06 for:

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

Scheduled foreign air transportation of persons, property, and mail (1)
between points in Jordan, (2) between points in Jordan and points in the
United States, and (3) between points in Jordan and points in third
countries (either nonstop or via intermediate points), and the right to
integrate this authority with their existing exemption and certificate
authority.  American seeks this authority to display its designator code
on flights operated by Royal Jordanian. 

 

XX   Exemption for Royal Jordanian under 49 U.S.C. 40109 to provide the
following services: 

Scheduled foreign air transportation of persons, property, and mail (1)
between points in the United States, 

(2) between points in the United States and points in Jordan, and (3)
between points in the United States and points in third countries
(either nonstop or via intermediate points in third countries), and the
right to integrate this authority with their existing foreign air
carrier permits and exemptions.  Royal Jordanian seeks this authority to
display its designator code on flights operated by American.   Royal
Jordanian also requests exemption authority for at least two years.

XX   Statement of authorization for blanket code-share authority for
American under 14 CFR Part 212 to:

Display Royal Jordanian’s “RJ*” designator code in conjunction
with foreign air transportation on flights operated by American (or its
affiliates) (1) between points in the United States, (2) between points
in the United States and points in Jordan, and (3) between points in the
United States and points in third countries (either nonstop or via
intermediate points in third countries).  

XX   Statement of authorization for blanket code-share authority for
Royal Jordanian under 14 CFR Part 212 to:

Display American’s “AA” designator code in conjunction with
foreign air transportation on flights operated by Royal Jordanian (1)
between points in Jordan, (2) between points in Jordan and points in the
United States (either nonstop or via intermediate points in third
countries), and (3) between points in Jordan and points in third
countries (either nonstop or via intermediate points).  

Applicant reps: Carl B. Nelson (202) 496-5647 (American)   DOT Analyst:
 Thuy H. Cooper  (202) 366-5423

	            Michael J. Holland (212) 490-9100 (Royal Jordanian)

D I S P O S I T I O N

XX  Granted requests of American and Royal Jordanian for exemption
authority (subject to conditions, see below)

XX  Granted requests of American Eagle Airlines, Inc. and Executive
Airlines, Inc. d/b/a American Eagle for route integration (subject to
conditions, see below)

XX  Dismissed American’s request for route integration 

XX  Dismissed Royal Jordanian’s request for route integration 

XX  Granted requests of American and Royal Jordanian for statements of
authorization (subject to conditions, see below) 

	

The above actions granting exemption authority to American and Royal
Jordanian were effective when taken: 

March 23, 2007, through March 23, 2009.

The above actions granting route integration authority to American Eagle
Airlines, Inc. and Executive Airlines, Inc. d/b/a American Eagle were
effective when taken: March 23, 2007, through March 23, 2009.

The above actions granting statements of authorization to American and
Royal Jordanian were effective when taken: March 23, 2007, and will
remain in effect indefinitely, subject to the conditions below.

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 Jordan.

Except to the extent exempted or waived, this authority is subject to
the terms, conditions, and limitations indicated:     		XX  American’s
certificates of public convenience and necessity

		XX  Royal Jordanian’s foreign air carrier permit

		XX  Standard U.S. Exemption Conditions (attached as Appendix B) 

		XX  Standard Foreign Carrier Exemption Conditions (attached as
Appendix C)

		XX  Conditions for Statements of Authorization (see below)

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-------------------------------------------------------

Conditions:  The statements of authorization granted are subject to the
following conditions:

(a) The statements of authorization will remain in effect only as long
as (i) American and Royal Jordanian continue to hold the necessary
underlying authority to operate the code-share services at issue, and
(ii) the code-share agreement providing for the code-share operations
remains in effect.

(b) American and/or Royal Jordanian must promptly notify the Department
(Office of International Aviation) if the code-share agreement providing
for the code-share operations is no longer effective or if the carriers
decide to cease operating all or a portion of the approved code-share
services.  Such notices should be filed in Docket OST-2006-26716.

(c) American and/or Royal Jordanian must notify the Department no later
than 30 days before they begin any new code-share service under the
code-share services authorized here.  Such notice shall identify the
market(s) to be served, which carrier will be operating the aircraft in
the code-share market added, and the date on which the service will
begin.  Such notices should be filed in Docket OST-2006-26716.

(d) The code-sharing operations conducted under this authority must
comply with 14 CFR 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 transportation be sold in the name of the carrier
holding out such service in the 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-share journey for all obligations established in its contract
of carriage with the passenger; that the passenger liability of the
operating carrier be unaffected; and that the operating carrier shall
not permit the code of its U.S. code-sharing partner to be carried on
any flight that enters, departs, or transits the airspace of any area
for whose airspace the Federal Aviation Administration has issued a
flight prohibition.

(e) Any service provided shall be consistent with all applicable
agreements between the United States and Jordan, and all applicable
agreements with other foreign countries involved.  Furthermore, (i)
nothing in the award of the blanket statement of authorization to
American should be construed as conferring upon American rights
(including code-share, fifth-freedom intermediate and/or beyond rights)
to serve markets where U.S. carrier rights are limited unless American
notifies us of its intent to serve such market and unless and until the
Department has completed any necessary carrier selection procedures to
determine which carrier(s) should be authorized to exercise such rights;
and (ii) should there be a request by any carrier to use the
limited-entry route rights that are included in American’s authority
by virtue of the blanket statement of authorization granted here, but
that are not being used by American, the holding of such authority will
not be considered as providing any preference for American in a carrier
selection proceeding to determine which carrier(s) should be entitled to
use the authority at issue.

(f) The authority granted here is specifically conditioned so that
neither American nor Royal Jordanian shall give any force or effect to
any contractual provisions between themselves that are contrary to these
conditions.

The route integration authority granted here is subject to the condition
that any service provided under this exemption shall be consistent with
all applicable agreements between the United States and the foreign
countries involved.  Furthermore, (a) nothing in the award of the route
integration authority requested should be construed as conferring upon
American Eagle Airlines, Inc. or Executive Airlines, Inc. d/b/a American
Eagle rights (including fifth-freedom intermediate and/or beyond rights)
to serve markets where U.S. carrier entry is limited unless the carrier
wishing to serve such a market (American Eagle Airlines, Inc. or
Executive Airlines, Inc. d/b/a American Eagle, as the case may be),
notifies the Department of its intent to serve such a market and unless
and until the Department has completed any necessary carrier selection
procedures to determine which carrier(s) should be authorized to
exercise such rights; and (b) should there be a request by any carrier
to use the limited-entry route rights that are included in American
Eagle Airlines, Inc. or Executive Airlines, Inc. d/b/a American
Eagle’s authority by virtue of the route integration exemption granted
here, but that are not then being used by American Eagle Airlines, Inc.
or Executive Airlines, Inc. d/b/a American Eagle, the holding of such
authority by route integration will not be considered as providing any
preference for American Eagle Airlines, Inc. or Executive Airlines, Inc.
d/b/a American Eagle in a competitive carrier selection proceeding to
determine which carrier(s) should be entitled to use the authority at
issue.

Remarks: We note that American has conducted a safety audit of Royal
Jordanian under the Department’s Code-Share Safety Audit Program, and
the FAA has advised that it has reviewed the relevant audit and found it
to be acceptable.

------------------------------------------------------------------------
--------------------------------------------------------------------

On the basis of data officially noticeable under Rule 24(g) of the
Department’s regulations, we found the applicants qualified to provide
the 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 or dismissed, we denied all requests in the
referenced Dockets.  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 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 electronic version of this document is available on the World Wide
Web at:

  HYPERLINK "http://dms.dot.gov//reports/reports_aviation.asp" 
http://dms.dot.gov//reports/reports_aviation.asp 



Appendix A

CODE-SHARE ROUTES

 

Appendix B

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 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, the holder
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 plans and to find out whether
the Transportation Security Administration has 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 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.

								

11/2006

Appendix C

Foreign Carrier Exemption Conditions

In the conduct of the operations authorized, the foreign carrier
applicant(s) shall:

(1)  Not conduct any operations unless it holds a currently effective
authorization from its homeland for such operations, and it has filed a
copy of such authorization with the Department;

(2)  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, 14 CFR Parts 129, 91, and 36 and 49 CFR Part 1546 or
1550, as applicable.  To assure compliance with all applicable U.S.
Government requirements concerning security, the holder shall, before
commencing any new service (including charter flights) from a foreign
airport that would be the holder’s last point of departure for the
United States, contact its International Principal Security Inspector
(IPSI) to advise the IPSI 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;

(3)  Comply with the requirements for minimum insurance coverage
contained in 14 CFR Part 205, and, prior to the commencement of any
operations under this authority, file evidence of such coverage, in the
form of a completed OST Form 6411, with the Federal Aviation
Administration’s Program Management Branch (AFS-260), Flight Standards
Service (any changes to, or termination of, insurance also shall be
filed with that office);

(4)  Not operate aircraft under this authority unless it complies with
operational safety requirements at least equivalent to Annex 6 of the
Chicago Convention;

(5)  Conform to the airworthiness and airman competency requirements of
its Government for international air services;

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

(7)  Agree that operations under this authority constitute a waiver of
sovereign immunity, for the purposes of 28 U.S.C. 1605(a), but only with
respect to those actions or proceedings instituted against it in any
court or other tribunal in the United States that are: (a)  based on its
operations in international air transportation that, according to the
contract of carriage, include a point in the United States as a point of
origin, point of destination, or agreed stopping place, or for which the
contract of carriage was purchased in the United States; or (b)  based
on a claim under any international agreement or treaty cognizable in any
court or other tribunal of the United States.  In this condition, the
term "international air transportation" means "international
transportation" as defined by the Warsaw Convention, except that all
States shall be considered to be High Contracting Parties for the
purpose of this definition;

(8)  Except as specifically authorized by the Department, originate or
terminate all flights to/from the United States in its homeland; 

(9)  Comply with the requirements of 14 CFR Part 217, concerning the
reporting of scheduled, nonscheduled, and charter data;

(10) If charter operations are authorized, except as otherwise provided
in the applicable aviation agreement, comply with the Department's rules
governing charters (including 14 CFR Parts 212 and 380); and

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

This authority shall not be effective during any period when the holder
is not in compliance with the conditions imposed above.  Moreover, this
authority cannot be sold or otherwise transferred without explicit
Department approval under Title 49 of the U.S. Code.

11/2006

 The joint applicants include American affiliates American Eagle
Airlines, Inc., and Executive Airlines, Inc. d/b/a American Eagle.

 The code-share partners provided a listing of specific code-share
markets that they intend initially to serve beginning 

March 25, 2007 under this arrangement.  We have reproduced it as
Appendix A of this Notice.  

 See footnote 3.

 By Order 2006-1-1, the Department awarded the carrier a blanket route
integration certificate.

 As a standard practice, the Department does not grant route integration
to foreign carriers; therefore we are dismissing Royal Jordanian’s
application for route integration.

 We expect this notification to be received within 10 days of such
non-effectiveness or of such decision.

 The notice referenced in condition (c) above may
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