NEW

September 2, 1997

This serves as interim notice to the public of the action described below, taken orally by the Department official indicated; the confirming order or other decision document will be issued as soon as possible.

Applications of American Airlines, Inc. filed 4/30/97 and 5/1/97 in Docket OST-97-2419 and Undocketed (amended 6/18/97) for:

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

Scheduled foreign air transportation of persons, property, and mail between a point or points in the United States and Goiania, Joinville, Ribeirao Preto, and Vitoria, Brazil, and to integrate this authority with its existing certificate authority on Route 389 and its existing U.S.-Brazil exemption authority. American intends to operate this service under a code-share arrangement with Transportes Aereos Meridionais, S.A. (TAM) on flights operated by TAM.

XX Statement of Authorization under 14 CFR Part 207 for:

Display TAM’s "JJ" designator code on flights operated by American in the following markets:

Gateway to gateway: Dallas/Fort Worth-Sao Paulo/Rio de Janeiro Connecting services: Miami to/from: Dallas/Fort Worth/New Orleans/Philadelphia; New York (JFK) to/from: Dallas/Fort Worth/Philadelphia; Dallas/Fort Worth to/from: Atlanta/Boston/Chicago/Detroit/Houston (IAH/HOU)/Los Angeles/Miami/New Orleans/Las Vegas/San Diego/Seattle/New York City (JFK/LGA/EWR)/Orlando/Philadelphia/San Francisco/Vail/Washington DC (DCA/IAD/BWI)/ Denver/Minneapolis/San Juan PR; Chicago to/from: Dallas/Fort Worth/New Orleans/Philadelphia/Vail/Minneapolis

The applicant states that neither American’s code-share services in Brazil nor TAM’s code-share services in the United States will carry local traffic between domestic points.

Applicant rep.: Carl B. Nelson, Jr. 202-496-5647 DOT analyst: Linda Senese, 202-366-2367

DISPOSITION

XX Granted, subject to conditions (See below)

The above action was effective when taken: September 2, 1997, through July 1, 1998 (coextensive with earlier code-share approval, see below)

XX Under assigned authority (14 CFR 385) by:

Paul L. Gretch, Director
Office of International Aviation
(Petitions for review may be filed from now until
10 days after the confirming order/letter issues.
Filing of a petition shall not stay the effectiveness of this action.)

XX Authority granted is consistent with the aviation agreement between the United States and Brazil and the ad referendum amendment dated October 24, 1996, as amended.

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

XX Holder’s certificate of public convenience and necessity
XX Standard Exemption Conditions (attached)

_______________________________________________________________________________________

Special Remarks: The authority granted is coextensive with the duration of the statement of authorization and exemption granted TAM on September 2, 1997.

American’s applications referenced above also sought authority to provide code-share service to additional Brazilian and U.S. cities. By Order 97-7-33, the Department confirmed its oral action of July 1, 1997, granting the joint application to the extent it involved code-share services (a) between the United States and the following Brazilian code-share cities: Curitiba, Foraleza, Florianopolis, Iguacu, Natal, and Cuiaba and (b) between Brazil and the following U.S. code-share cities: Denver, Las Vegas, Seattle, San Diego, and Boston for a period of one year, i.e., through July 1, 1998. We deferred action on the balance of the request pending expansion of the number of code-share only points that may be served under the bilateral. The U.S. and Brazilian governments have agreed to expand the number of code-share only points that may be served, and they have furthermore made the necessary selection of those cities, so that it was now possible to grant the balance (previously deferred) of American’s request. With today’s action, there are no outstanding requests in the captioned applications.

Conditions: The code-sharing operations authorized herein must comply with 14 CFR 399.88 of the Department’s regulations and any amendments to the Department’s regulations concerning code-share arrangements that may be adopted and are 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, and that the carrier selling such transportation (i.e., the carrier shown on the ticket) accept all obligations established in its contract of carriage with the passenger, and that the operator shall not permit the code of its U.S. carrier 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.

The route integration authority granted 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 our award of the route integration authority requested should be construed as conferring upon American rights (including fifth freedom intermediate and/or beyond rights) to serve markets where U.S. carrier entry is limited unless American notifies us 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’s authority by virtue of the route integration exemption granted here, but that are not then being used by American, the holding of such authority by route integration will not be considered as providing any preference for American in a competitive carrier selection proceeding to determine which carrier(s) should be entitled to use the authority at issue.

Appendix A

U.S. Carrier

Standard Exemption Conditions

In the conduct of the operations authorized by the attached order, the 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 the requirements for minimum insurance coverage, and for certifying that coverage to the Department, contained in 14 CFR 205;

(5) Comply with the requirements of 14 CFR 203, concerning waiver of Warsaw Convention liability limits and defenses;

(6) Comply with the applicable requirements of the Federal Aviation Administration Regulations; 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.