Order 2013

- 11

- 8 Served: November 14, 2013 UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Issued by the Department of Transportation on the 14 th day of November , 201 3 Joint application of AMERICAN AIRLINES, INC., US AIRWAYS, INC., AMERICAN EAGLE AIRLINES, INC., PSA AIRLINES, INC., and PIEDMONT AIRLINES, INC. for an exemption fro m the provisions of 49 U.S.C. § 41105 pursuant to 49 U.S.C. § 40109 Docket DOT - OST - 201 3 - 0 081

Joint application of AMERICAN AIRLINES, INC. , US AIRWAYS, INC., AMERICAN EAGLE AIRLINES, INC., PSA AIRLINES, INC., and PIEDMONT AIRLINES, INC. for approval of a transfer of route authority under 49 U.S.C. § 41105 Docket DOT - OST - 2013 - 0082

Joint application of AMERICAN A IRLINES, INC., and LINEA AEREA NACIONAL CHILE, S.A. (LAN CHILE) for approval of, and antitrust immunity for, alliance agreements under 49 U.S.C. §§ 41308 and 41309 Docket DOT - OST - 1997 - 32852

Joint application of AMERICAN AIRLINES , INC., LAN PERU, S.A., and LAN AIRLINES , S.A. for approval of, and antitrust immunity for, alliance agreements under 49 U.S.C. §§ 41308 and 41309 Docket DOT - OST - 2004 - 199 64

Joint application of AMERICAN AIRLINES, INC., BRITIS H AIRWAYS PLC, IBERIA LINEAS AEREAS DE ESPANA , S.A., FINNAIR OYJ , and ROYAL JORDANIA N AIRLINES for approval of, and antitrust immunity for, alliance agreements under 49 U.S.C. §§ 41308 and 41309 Docket DOT - OST - 2008 - 0252

Joint application of AMERICAN AIRLINES, INC., and JAPAN AIRLINES INTERNATIONAL CO. LTD. for approval of, and antitrust immunity for, alliance agreements under 49 U.S.C. §§ 41308 and 41309 Docket DOT - OST - 2010 - 0059

Joint applicatio n of AMERICAN AIRLINES, INC., and QANTAS AIRWAYS LIMITED for approval of allianc e agreements under 49 U.S.C. § 41309 Docket DOT - OST - 2011 - 0111

ORDER GRANTING AUTHORITY Summary By this order, we (1) exempt American Airlines, Inc . , and American Eagle Airlines, Inc. ( together , “American”) , and US Airways, Inc. , PSA Airlines, Inc. , and Piedmont Airlines, Inc. ,3

(together, “US Airways”) (hereinafter collectively refe rred to as the “Joint Applicants”), from the provisions of section 41 105 of Title 49 of the United States Code (the Statute), to the extent necessary to allow the Joint Applicants to operate under the common ownership of AMR Corp. (“AMR”) pending the Department’s action on a contemporaneously filed de facto transfer applica tion ; and (2) amend certain grants of antitrust immunity issued to American and U S Airways , subject to conditions. BACKGROUND On February 14 , 2013, in accordance with the provisions of section 204.5 of our rules (14 CFR 204.5) requiring air carriers to n otify us of substantial changes affecting their operations, AMR , the parent company of American and American Eagle, together with US Airways Group, Inc. (“USAG”), the parent compan y of US Airways, PSA, and Piedmont, advised the Department of an agreement w herein AMR would acquire all of the outstanding shares of USAG . USAG would then become a wholly owned subsidiary of AMR. Subsequently, following a transition period , US Airways will be fully integrated into American with American continuing as the surviv ing corporation. EXEMPTION REQUEST On April 17, 2013 , the Joint Applicants filed the subject application in Docket DOT

- OST

- 201 3

- 0 081 requesting an exemption from section 41105 of the Statute. The Department has held that a stock acquisition resulting in common ownership and control of two or more air carriers having international route authority constitutes a de facto certificate transfer subject to section 41105. Each of the Joint Applicant s holds various forms of international route authority. 1 The relief requested here would allow the Joint Applicants to operate under the common ownership of AMR pending the Department’s action on a contemporaneously filed de facto transfer application. 2 In support of this request, the Joint Applicants state that, upon consummation of the transaction, American , US Airways , and their respective affiliates will remain separate entities and will operate as separate brands. They further contend that grant of the exemption request would be consistent with the past pract ice of the Department. No answers opposing the Joint Applicants’ exemption request were filed. We have decided to grant the Joint Applicants’ request for an exemption from the provisions of section 41105 until we have ruled on the de facto transfer r equest. The Joint Applicants correctly note that our grant of exemptions in cases such as this is contingent upon the air carriers involved, in this case American and US Airways remaining separate and independently operated corporations until a ruling has been made in the underlying de facto transfer case. In

1 American, American Eagle, US Airways, and PSA each hold certificates of public convenience and necessity authorizing the air carriers to engage interstate and/or foreign scheduled air transportation of persons, property, and mail, as well as various other forms of foreign authority. Piedmont’s foreign authority, on the other hand, is inherent in the commuter authorization it holds. A complete list of the Joint Applicant’s foreign authorities is listed in Attachment A of this order . 2 See Docket DOT

- OST

- 2013

- 0082.4

this case, as in previous cases, 3 we see no reason to withhold exemption authority pending Departmental action on the certificate transfer application. As long as American and US Airways remain sepa rate entities, should we disapprove the proposed transfer either in whole or in part, AMR could divest itself of US Airways. The Joint Applicants should not construe our grant of this exemption as a decision to approve the related de facto transfer applic ation or any aspect of that application. TRANSFER REQUEST On April 17, 2013, concurrent with their exemption application in Docket DOT

- OST

- 2013

- 0081, the Joint Applicants filed an application in Docket DOT

- OST

- 2013

- 0082 for the Department’s approval un der 49 U.S.C. § 41105 of the de facto transfer of , among other things, American’s antitrust immunities and joint business agreement approval . 4 No answers were filed. In the transfer application, the Joint Applicants request that we extend to US Airways certain grants of approval and/or antitrust immunity that have been made to American . T he Joint Applicants state that t hose authorities enable detailed commercial cooperation between American, on the one hand, and the following partners, on the other han d: (1) LAN Airlines and LAN Peru; (2) British Airways, Iberia, Finnair, and Royal Jordani an; (3) Japan Airlines; and (4) Qantas. 5 Each of the foreign partners has consented to the addition of US Airways. 6 The Joint Applicants argue that extending certa in grants of approval and/or antitrust immunity to US Airways raises no competitive issues. 7 With respect to the alliances with LAN Airlines/LAN Peru, Japan Airlines, and Qantas, the Joint Applicants note that there are no overlapping services created by the addition of US Airways. We agree. US Airways does not operate to the homelands of those partners, namely Chile, Peru, Japan, or Australia. It has a very small presence in the core markets affected by American’s Latin American alliances. We see no s ignificant competitive change associated with the addition of US Airways to each of these alliances, and thus no basis in competition policy not to grant the Joint Applicants’ request. The addition of US Airways’ US

- to - international capacity has only a mo dest impact on global immunized alliance market shares, increasing o neworld’s share from 19% to 23%, compared to Star at 27% and SkyTeam at 18%. In these circumstances, we find that it is necessary to extend the antitrust immunity to US Airways to enable the air carriers to fully integrate their operations and to ensure that the public benefits of the alliances will continue.

3 See Order 97

- 9

- 3, p. 3; Order 97

- 11

- 8, p. 5; Order 99

- 4

- 5, p. 4; Order 2001

- 9

- 16, p. 4; and Order 2008

- 10

- 29, p.3. 4 T he transfer of the Joint Applicants’ foreign certificates, exemptions, designations, frequencies, and codesharing statements of authorizations will be handled in a separate order. 5 The authorities include the Department’s approval and a grant of antitrust immunity under 49 U.S.C. §§ 41308

- 41309, except in the case of American/Qantas. American and Qanta s sought and received only a grant of approval under § 41309 for their alliance. US Airways does not have any similar authorities. 6 See American Airlines’ letters regarding antitrust immunity or joint business approval, in Docket DOT

- OST

2013

- 0082, post ed August 22, 2013. 7 See Joint Application for Approval of the Transfer of International Route Authorities, in Docket DOT

- OST

2013

- 0082, at 43.5

With respect to the transatlantic alliance

– which features a joint venture involving American, British Airways, Iberia, and Finnai r (Royal Jordanian has immunity but is not part of the joint venture)

– the addition of US Airways’ network removes an independent competitor in the market. However, while US Airways has a significant presence in transatlantic markets, it does not rise to a level of competitive concern given robust inter

- alliance competition. According to onboard passenger data for the year ended September 2013, US Airways transported 2,630,700 passengers in the U.S.

- Europe market, which equates to a 5% market share. In the U.S.

- United Kingdom market, US Airways transported 521,021 passengers, which equates to a 3% share . 8 However, US Airways’ service in the Philadelphia

- London Heathrow market overlaps with the oneworld immunized alliance’s services operated by British Airways. The Philadelphia

- London Heathrow market is served once a day by US Airways and twice a day by British Airways. 9 In terms of on board passengers in the London

- Philadelphia market for the year ended September 2013, US Airways transported 155,050 passengers, which equates to a 41% share of the traffic. 10 Combining the shares of US Airways and British Airways, as the joining of the two into one alliance would do, significantly affects market share and redu ces competition in the market. Even with so me alternative travel options available from London Gatwick, Newark Liberty, and other airports, consumers would have fewer nonstop options between London and Philadelphia. The Department notes, however, that the European Commission has reviewed and appro ved the merger with a condition in the London

- Philadelphia market to remedy competition concerns. The Commission required that the merged company make slots at London Heathrow and other commercial cooperation available to a competitor who wishes to operat e one daily roundtrip flight in the market. 11 The slots would be available to any duly licensed carrier to serve the market on a nonstop basis. A carrier that successfully utilizes the slots for eight consecutive scheduling seasons in the London

- Philadelp hia market may obtain grandfather rights to use the slots. The Department finds that the Commission’s remedy addresses the competitive concerns we have identified in the London

- Philadelphia market. The Department finds no reason not to extend all of Amer ican’s approval and immunity authorities to US Airways. We find that these additions to existing immunized alliances, as conditioned, will not substantially reduce competition and are not adverse to the public interest. We further find that these changes offer benefits to the public, and, in light of the merger, are required by the public interest. The holders of the expanded antitrust immunity will be required to abide by the conditions set forth in the existing alliance orders, including the obligation s to submit annual progress reports. Additionally, by this order, they will be required to satisfy a new condition with respect to each of the affected alliances. Within 120 days of the date of issuance of this order, we direct the applicants in each of the alliance proceedings to submit revised alliance framework and

8 See DOT RITA/BTS T100 Segment Data . 9 See OAG Scheduling Data for July 2013, January 2014, and July 2014. 10 See DOT RITA/BTS T100 Segment Data. 11 See Commitments to the European Union, Case M.6607

- American Airlines/US Airways, available at http://ec.europa.eu/comp etition/elojade/isef/case_details.cfm?proc_code=2_M_6607 .6

implementation agreements demonstrating that US Airways has been added to the alliances. If the applicants do not meet this condition, the antitrust immunities granted in this order will au tomatically expire. The condition is justified by the Department’s need to understand any changes in the commercial terms of the alliances and, in particular, any changes to the economics, governance, and delivery of public benefits associated with the jo int venture agreements. The requirement to submit revised agreements is not burdensome because it merely requires the airlines to submit to the Department copies of agreements they already intend to complete. Moreover, in the interest of ensuring public benefits, the Department has imposed similar conditions in other cases. 12 In those cases, the Department has required recipients of antitrust immunity to submit complete and fully executed agreements within a period of months, in order to preserve the gran ts of antitrust immunity. In addition, as the route transfer approvals have only been granted pendente lite exemption authority, the antitrust immunity granted here will also expire in the event that the route transfers are ultimately disapproved. ACCOR DINGLY, 1. We exempt American Airlines, Inc., American Eagle Airlines, Inc., US Airways, Inc., PSA Airlines, Inc., and Piedmont Airlines, Inc., from the provisions of section 41105 of the Statute, subject to the condition that American Airlines, Inc., Americ an Eagle Airlines, Inc., US Airways, Inc., PSA Airlines, Inc., and Piedmont Airlines, Inc., remain separate and continue to be operated as such during the described pendency of its application in Docket DOT

- OST

- 201 3

- 0 082 . 2. The authority granted in orderin g paragraph 1 shall be effective until 90 days after the Department issues its final order on the joint application of American Airlines, Inc., American Eagle Airlines, Inc., US Airways, Inc., PSA Airlines, Inc., and Piedmont Airlines, Inc., in Docket DOT

- OST

- 201 3

- 0 082 for approval of a transfer of route authority under section 41105 of the Statute. 3. We extend to US Airways, Inc., the antitrust immunity granted to American Airlines, Inc., by Order 2010

- 11

- 10, paragraph 1; Order 2010

- 7

- 8, paragraph 1; Order 2005

- 10

- 8, paragraph 1; and Order 99

- 9

- 9, paragraph 4. 4. We extend to US Airways, Inc., the approval granted to American Airlines, Inc., by Order 2011

- 11

- 12, paragraph 1. 5. The authority granted here may only be used in a manner consistent with the terms of the air transport agreements between the United States and our aviation partners. 6. The authority granted in ordering paragraphs 3 and 4 will expire if : a. The Joint Applicants fail to submit to the Director, Office of Aviation Analysis for prior approval all final agreements within 120 days of the date of this order, or b. T he transfers for which the Joint Applicants have applied in Docket DOT

- OST

- 2013

- 0082 are disapproved .

12 See Star Case, Order 2009

- 7

- 10, Ordering Paragraphs 2

- 3, Docket DOT

- OST

- 2008

- 0234 (July 10, 2009).7

7. We may amend, modify, or revoke this order at any time and without hearing. 8. We will se rve a copy of this order on the persons listed in Attachment B . By:

SUSAN L. KURLAND Assistant Secretary for Aviation and International Affairs An electronic version of this document is available on the World Wide Web at http://www.regulations.govAttachment A JOINT APPLICANTS’ INTERNATIONAL ROUTE AUTHORITIES I. AMERICAN AIRLINES, INC. A. Certificates of Public Convenience and Necessity Route # Route Description Order(s) 835 Open skies Order 2007 - 4 - 2 None Blanket route i ntegration Order 2010 - 12 - 24 137 U.S. - Haiti, Dominican Republic, St. Maarten, St.

Kitts and Nevis, St. Lucia, Antigua and Barbuda, Guadeloupe, Martinique, Barbados, Grenada, Trinidad and Tobago, Aruba, Curacao, Anguilla, Carriacou, Dominica, Montserrat, Mu stique, Saba, St. Barthelemy, St. Eustatius, St. Vincent and the Grenadines, the British Virgin Islands, the Cayman Islands, the Turks and Caicos Islands, and Union Island. U.S. - Bahama Islands Atlanta, Baltimore, Boston, Chicago, Detroit, Miami, New York/N ewark, Philadelphia, Washington DC, Raleigh/ Durham - Bermuda U.S. - Hong Kong and Singapore Note: Routes granted by Open Skies Order 2007 - 4 - 2 not listed Order 1996 - 5 - 9

147 New York, Philadelphia - Bermuda

New York, Philadelphia, St. Louis - Algeria, Libya, T unisia, Egypt, Iraq, Saudi Arabia, Yemen, Mandalay, Hong Kong, and Hanoi (acquired from TWA) (Timely renewal filed

– pending) Note: Routes granted by Open Skies Order 2007 - 4 - 2 not listed Order 2001 - 4 - 7

389 Between the terminal points Boston, Dallas/Ft.

Worth, Houston, Miami, New Orleans, New York/Newark, Washington DC (to be served through Dulles International Airport), the intermediate points Panama City, Panama; Barranquilla, Bogota, and Cali, Colombia; Quito and Guayaquil, Ecuador; Lima, Peru; Montev ideo, Uruguay; and La Paz, Bolivia, and (a) beyond La Paz the intermediate point Asuncion, Paraguay and the terminal point Buenos Aires, Argentina; and (b) beyond La Paz, the intermediate point Santiago, Chile and the terminal point Buenos Order 1990 - 5 - 5, and Order 92 - 6 - 212 Aires, Argentina Between the coterminal points Los Angeles and San Francisco, the intermediate points Bogota and Cali, Colombia, Quito and Guayaquil, Ecuador, Lima, Peru, La Paz, Bolivia, and beyond La Paz, as described in (a) and (b) above (Timely renewal filed

– pending ) Note: Routes granted by Open Skies Order 2007 - 4 - 2 not listed 542 Puerto Rico - Caracas

(Timely renewal filed

– pending) Order 1988 - 5 - 42 543 Miami/New York/Newark - Caracas/Maracaibo

Venezuela (Timely renewal filed

– pend ing) Order 1990 - 5 - 5 602 Europe/Middle East/Asia

(Timely renewal filed

– pending) Order 1996 - 5 - 9, 628 Dallas/Ft. Worth - Acapulco

Dallas/Ft. Worth - Mexico City Dallas/Ft. Worth - Monterrey Chicago - Mexico City Order 1992 - 5 - 20

794 New York - Cancun

(Timely ren ewal filed

– pending) Order 2001 - 4 - 7 826 Chicago - Shanghai

(Timely renewal filed

– pending) Order 2005 - 3 - 40, 826 Chicago - Beijing (segment 2)

(Timely renewal filed

– pending) Order 2007 - 12 - 26 903 Chicago - Acapulco, Cancun, Cozumel, Puerto

Vallarta, San Jose del Cabo; Dallas/Ft. Worth Cancun; Cozumel, Guadalajara, Ixtapa/Zihuatanejo, Leon, Puerto Vallarta, San Jose del Cabo; Los Angeles - San Jose del Cabo; Miami - Cancun, Mexico City/Toluca Order 2011 - 6 - 11

B. Exemption Authorities Route Description Order/N OAT Docket Miami - Valencia, Venezuela NOAT February 4, 2013 DOT - OST - 2006 - 26387 U.S. - Brazil NOAT July 22, 2013 DOT - OST - 2013 - 0137 Miami - Santa Cruz/La Paz, Bolivia NOAT July 31, 2013 DOT - OST - 1997 - 2302 Dallas/Ft. Worth - Caracas, Venezuela NOAT July 13, 2012 DOT - OST - 1997 - 25273

Los Angeles - Shanghai NOAT July 31, 2012 DOT - OST - 2010 - 0245 U.S. - South Africa for codesharing on British Airways NOAT January 28, 1998 ( timely renewal filed) DOT - OST - 1998 - 3401 U.S. - Vietnam for codesharing on Japan Airlines NOAT Fe bruary 4, 2013 DOT - OST - 2002 - 12496 U.S. - Hong Kong for codesharing on Cathay Pacific NOAT February 4, 2013 DOT - OST - 2000 - 6824 U.S. to 4 points in Argentina, to 5 additional points in Argentina on a code share basis only, and to 5 additional points in Argen tina on a codeshare basis only in conjunction with a designated airline of Argentina NOAT February 4, 2013 DOT - OST - 2007 - 0034

U.S. - Fiji, Kirabati (Christmas Island), Vanuatu, Solomon Islands for codesharing on Air Pacific NOAT August 1, 2013 DOT - OST - 2011 - 0197 Between points within Ecuador for code - sharing on LAN Ecuador NOAT August 20, 2013 DOT - OST - 2011 - 0210 Seattle - Beijing and to points within China on a codeshare - basis only for codesharing on Hainan Airlines NOAT August 1, 2013 DOT - OST - 2011 - 0228 U.S. to Cordoba, Bariloche, Mendoza, and Rosario, Argentina on a codeshare basis only for codesharing on LAN via Santiago, Chile NOAT August 1, 2013 DOT - OST - 2006 - 24194 Blanket exemption authority for codesharing NOAT February 28, 2013 DOT - OST - 2009 - 0337 U,S. - Mexico transborder routes for code - sharing on Alaska Airlines (Los Angeles - Guadalajara, La Paz, Loreto, Manzanillo, Mazatlan, Mexico City, Puerto Vallarta, Zihuatanejo; Sacramento Guadalajara; San Diego - Puerto Vallarta; San Francisco - Puerto Vallarta; San J ose - Guadalajara) NOAT July 19, 2012 DOT - OST - 2010 - 0222

Miami

– Cozumel NOAT August 16, 2013 DOT - OST - 2013 - 0154 DFW - Shanghai NOAT October 30, 2013 DOT - OST - 2013 - 0187 U.S. - Brazil for codesharing on TAM NOAT January 25, 2013 DOT - OST - 2012 - 02094

C. Frequency Allocations Number of Frequencies Route Description Order/NOAT 9 Argentina

– Acquired from Eastern in 1990 Order 1990 - 5 - 5 5 Argentina Order 1995 - 2 - 23 7 Argentina

– Above 14 increased to 21

when the 1 to 1.5 narrowbody/ widebody formula was abolished 3 Argentina Order 2003 - 8 - 14 4 Dallas/Ft. Worth - Buenos Aires DOT - OST - 2003 - 15384, January 2, 2004 4 Miami - Buenos Aires DOT - OST - 2010 - 0178, July 12, 2010 (seasonal) 7 Brazil - Acquired from Eastern in 1990 Order 1990 - 5 - 5 3 Brazil automatic increase effe ctive 4/1/91 Order 1991 - 2 - 15 4 Brazil Order 1991 - 2 - 15 6 New York (JFK) - Sao Paulo, Brazil Order 1991 - 6 - 5 1 New York (JFK) - Sao Paulo, Brazil Order 1991 - 8 - 25 7 Miami - Sao Paulo, Brazil DOT - OST - 1996 - 1356, June 1, 1998 3 Dallas/Ft. Worth - Sao Paulo, Brazil Order 1995 - 1 - 27 11 U.S. - Brazil Order 1995 - 10 - 25 2 Miami - Sao Paulo, Brazil DOT - OST - 2003 - 15965, August 14, 2003 3 Miami - Sao Paulo, Brazil DOT - OST - 2004 - 17139, February 24, 2004 10 U.S. - Brazil DOT - OST - 2008 - 0229, August 8, 2008 1 Miami - Belo Horizonte Order 2008 - 11 - 21 3 Dallas/Ft. Worth - Rio de Janeiro, Brazil DOT - OST - 2010 - 0179, August 6, 2010 7 New York (JFK) - Rio de Janeiro, Brazil DOT - OST - 2010 - 0088, June 16, 2010 4 Miami - Brasilia , Brazil DOT - OST - 2010 - 0088, June 16, 2010 10 Miami - Brasilia

Miami - Belo Horizonte DOT - OST - 2011 - 0086, May 13, 20115 Miami - Manaus 3 Miami - Manaus , Brazil DOT - OST - 2011 - 0086, February 8, 2012 14 Miami - Rio de Janeiro, Brazil

(7 to backfill Miami - Rio de Janeiro that AA transferred to Miami - Sao Paulo and 7 for Miami - Rio de Janeiro #2) DOT - OST - 2012 - 0079 May 24, 2012

3 7 7 Miami - Recife

Miami - Salvador Los Angeles - Sao Paulo Miami - Porto Alegre - Curitiba - Miami DOT - OST - 2012 - 0079 May 24, 2012 Order 2013 - 7 - 4 DOT - OST - 2013 - 0137 July 22, 2013 7 Chicago - Shanghai, China (timely renewa l

filed) Order 2005 - 3 - 40 7 Chicago - Beijing, China Order 2007 - 12 - 26 7 Los Angeles - Shanghai, China DOT - OST - 2010 - 0245 July 31, 2012 7 DFW - Shanghai, China DOT - OST - 2013 - 0187 October 30, 2013 19.5 Ecuador Order 1992 - 10 - 43 1.5 Ecuador DOT - OST - 2002 - 12000, J uly 12, 2002 3 Ecuador DOT - OST - 2009 - 0220, October 8, 2009 4 Ecuador DOT - OST - 2009 - 0220, January 30, 2013 7 Dallas/Ft. Worth - Tokyo, Japan (NRT) Order 1986 - 10 - 16 7 New York (JFK) - Tokyo, Japan (NRT) Order 1998 - 5 - 17 7 Chicago - Tokyo, Japan (NRT) Order 1998 - 5 - 17 4 Dallas/Ft. Worth - Tokyo, Japan (NRT) DOT - OST - 2002 - 11266, March 20, 2002 7 Los Angeles - Tokyo, Japan (NRT) DOT - OST - 2002 - 12554, July 17, 2002 1 Dallas/Ft. Worth - Tokyo, Japan (NRT) DOT - OST - 1998 - 3419, September 13, 2002 (initially 3 but 2 lapsed as d ormant; see AA application on September 21, 2004) 1 Dallas/Ft. Worth - Tokyo, Japan (NRT) DOT - OST - 1998 - 3419,6 September 27, 2004

1 Dallas/Ft. Worth - Tokyo, Japan (NRT) DOT - OST - 1998 - 3419, January 20, 2005 7 New York (JFK) - Tokyo, Japan (HND) Order 2010 - 7 - 2 Cease operations Dec 2, 2013 D. Codesharing Statements of Authorization Airline Partner Homeland Order/NOAT/ Department Action Docket Gulf Air Bahrain NOAT, August 4, 2008 DOT - OST - 2008 -

0195 Qantas Australia Department Action, May 23, 2008 DOT - OST - 2008 -

0138 Iberia Spain Department Action, February 13, 2008 DOT - OST - 2008 -

0044 Finnair Finland Department Action, January 7, 2000 *** DOT - OST - 1999 -

6544 Japan Airlines Japan Department Action, February 18, 2010 *** DOT - OST - 1999 -

4994 Lan Chile Department Acti on, January 7, 2000 *** DOT - OST - 1999 -

6546 Cathay Pacific Hong Kong NOAT January 8, 2002 DOT - OST - 2000 -

6824 British Airways United Kingdom Orders 2003 - 5 - 33 and 2010 - 7 - 8 DOT - OST - 2002 -

13861 Lan Peru Peru NOAT February 16, 2007 DOT - OST - 2004 -

19965 Royal J ordanian Jordan NOAT March 23, 2007 DOT - OST - 2006 -

26716 Jet Airways (India) India Department Action, January 7, 2008 DOT - OST - 2007 -

0078 El Al Israel NOAT March 28, 2008 DOT - OST - 2007 -

0095 Lan Argentina Argentina NOAT DOT - OST - 2007 -7 June 11, 2009 0034

Etihad U.A.E Department Action, July 24, 2009 DOT - OST - 2009 -

0154 Air Berlin Germany NOAT October 1, 2010 DOT - OST - 2010 -

0192 Kingfisher India Department Action, March 8, 2011 DOT - OST - 2010 -

0288 WestJet Canada Department Action, March 10, 2011 DOT - OST - 2011 -

0040 Air Pacific Fiji NOAT November 30, 2011 DOT - OST - 2011 -

0197 Lan Ecuador Ecuador NOAT December 13, 2011 DOT - OST - 2011 -

0210 Hainan Airlines China NOAT February 15, 2012 DOT - OST - 2011 -

0228 Air Tahiti French Polynesia NOAT July 5, 2012 DOT - OST - 2012 - 0092 TAM Brazil NOAT January 5, 2013 DOT - OST - 2012 -

0209 LAN Colombia Colombia NOAT January 25, 2013 DOT - OST - 2012 -

0208 Qatar Airways Qatar NOAT February 20, 2013 DOT - OST - 2013 -

0007 Malaysia Airlines Malaysia NOAT February 28, 2013 DOT - OST - 2013 -

0022

*** The initial statements of authorization issued to American for codesharing with JAL, Lan, and Finnair did not include American Eagle. American Eagle was added by Department Action, November 8, 2001 in DOT

- OST

- 99

- 4994, DOT

- OST

- 99

- 6546, and DOT

- OST

- 99

- 6544. E. Third - Country Codeshare Designations Airline Partner Country Order/NOAT/ Department Action Docket8

British Airways Flights to/from South

Africa NOAT September 29, 2003 DOT - OST - 2002 -

12193 F. Antitrust Immunity Grants Airline Partner Order/NOAT Docket LAN Chile Order 1999 - 9 - 9 DOT - OST - 1997 - 3285 LAN Peru and LAN Airlines Order 2005 - 10 - 8 DOT - OST - 2004 - 19964 British Airways, Iberia, Finnair, and Royal Jordanian Order 2010 - 7 - 8 DOT - OST - 2008 - 0252 Japan Airlines Order 2010 - 11 - 10 DOT - OST - 2010 - 0059 Qantas (a pproval of agreement without antitrust immunity) Order 2011 - 11 - 12 DOT - OST - 2011 - 0111

II. AMERICAN EAGLE AIRLINES, INC. A. Certificates of Public Convenience and Necessity Route # Route Description Order(s) 537 U.S. - Haiti, Dominican Republic, Netherland

Antil les, St. Maarten, St. Kitts and Nevis, St. Lucia, Antigua and Barbuda, Guadeloupe, Martinique, Barbados, Grenada, Trinidad and Tobago, Aruba, Curacao, Anguilla, Carriacou, Dominica, Montserrat, Mustique, Saba, St. Barthelemy, St. Eustatius, St. Vincent and the Grenadines, the British Virgin Islands, the Cayman Islands, the Turks and Caicos Islands, Union Island, and the Bahamas Order 1998 - 5 - 12

905 Open Skies Order 2011 - 8 - 9 906 Dallas/Ft. Worth - Chihuahua, Guadalajara,

Monterrey, San Luis Potosi, and Torr eon, Mexico Order 2011 - 11 - 19

B. Small Aircraft Codeshare Designation Notifications DOT - OST - 2011 - 0076 DFW - Aguascalientes9 DFW - Hermosillo DFW - Leon DFW - Mazatlan DFW - Morelia DFW - Puebla DFW - Queretaro DFW - Veracruz DFW - Zacatecas III. US AIRWAYS , INC. 1 A. Certifi cates of Public Convenience and Necessity Route # Route Description Order(s) None Blanket Open Skies Route Authority Order 2007 - 4 - 20 2 Route 87 - F Atlanta, GA/Miami, FL/Tampa,

FL/Washington, DC/Baltimore, MD/New York, NY/ Newark, NJ/New Orleans, LA/Dal las - Ft. Worth, TX

– Belize Charlotte, NC/Baltimore, MD/Tampa, FL

– Nassau, Bahamas Tampa, FL/Washington, DC/Baltimore, MD/Charlotte, NC

– Cayman Islands Order 97 - 7 - 2 3

Route 97 - F Baltimore, MD/New York, NY/ Newark, NJ/

Boston, MA/Philadelphia, PA

– Bermu da Syracuse, NY/Cleveland, OH/Cincinnati, OH/ Philadelphia, PA/Pittsburgh, PA/ Baltimore, MD

– Freeport, George Town, Great Harbor Cay, Marsh Harbor, Nassau, Rock Sound, Treasure Cay and West End, Bahamas Order 97 - 7 - 2 4

1 For those authorities marked with a “*” , US Airways also applied for Statements of Authoriz ation on behalf of its regional partners, PSA and Piedmont. 2 US Airways’ previous certificate and exemption authorities for various Open Skies countries were superseded by this order. 3 Although US Airways has only listed the non

- Open Skies r outes that are not superseded by Order 2007

- 4

- 20, US Airways is requesting the transfer of all of the routes contained within the Order. 4 Although US Airways has only listed the non

- Open Skies r outes that are not superseded by Order2007

- 4

- 20, US Airways is requesti ng the transfer of all of the routes contained within the Order.10 B. Exemption Authorities Route Desc ription Order/NOAT Docket U.S.

– Antigua NOAT April 21, 2006 (timely renewal filed

– pending) Docket DOT - OST 2001 - 9932 U.S.

– Buenos Aires, Argentina; Buenos Aires, Argentina

– Montevideo, Uruguay NOAT October 11, 2012 Docket DOT - OST 2003 - 14650 U.S.

– China (pursuant to codeshare arrangements with United and Air China) NOAT May 3, 2010 (timely renewal filed

– pending Docket DOT - OST 2008 - 0139 U.S.

– Bahamas NOAT September 9, 2013 Docket DOT - OST 2001 - 9766 U.S.

– Barbados NOAT July 11, 2013 Docket DOT - OST 2001 - 9769 U.S.

– St. Lucia NOAT July 11, 2013 Docket DOT - OST 2001 - 9767 U.S.

– Belize NOAT July 29, 2013 Docket DOT - OST 2002 - 12259 Charlotte, NC/Chicago, IL/Washington, DC

– Bermuda NOAT March 8, 2013 Docket DOT - OST 2001 - 11152 Orlando, FL

– Hamilton , Bermuda NOAT January 26, 2006 (timely renewal filed

– pending) Docket DOT - OST 2004 - 16899 U.S.

– Brazil (pursuant to codeshare arrangement with TAM) NOAT May 16, 2012 Docket DOT - OST 2003 - 14651 U.S.

– Brazil Order 2013 - 7 - 4, July 3, 2013 Docket DOT - OST 20 13 - 0072 U.S.

– British Virgin Islands (pursuant to codeshare arrangement with Caribbean Sun Airlines) NOAT June 18, 2003 (timely renewal filed

– pending) 5 Docket DOT - OST 2003 - 15254 Philadelphia, PA

– Grand Cayman, Cayman Islands NOAT July 29, 2013 Docket DOT - OST 1997 - 2721 U.S.

– Colombia (codeshare only) (pursuant to codeshare arrangement with Avianca or any other authorized carrier) NOAT November 16, 2012 Docket DOT - OST 2012 - 0155 U.S.

– Dominica U.S.

– Haiti NOAT May 29, 2012 Docket DOT - OST 2004 - 18346 U.S.

– Dominican Republic NOAT November 6, 2012 Docket DOT - OST - 5 This renewal application technically remains pending; however, US Airways’ no longer codeshares with Caribbean Sun Airlines.11 2000 - 7340

U.S.

– Grenada NOAT June 4, 2013 Docket DOT - OST 2001 - 10588 U.S.

– Fiji, and beyond to New Zealand NOAT April 15, 2013 Docket DOT - OST 2007 - 29026 U.S.

– Hong Kong (codeshare service ) NOAT August 20, 2007 (timely renewal filed

– pending) Docket DOT - OST 2003 - 14303 U.S.

– Moscow and St. Petersburg, Russia (under a third - country codeshare arrangement) 6 Order 2008 - 11 - 5 and NOAT August 13, 2012 DOT - OST - 2008 - 0283 Boston, MA/Charlotte, NC/ Philadelphia, PA

– Cancun Mexico NOAT June 21, 2013 Docket DOT - OST 2002 - 13855 Charlotte, NC

– Cozumel, Mexico NOAT November 6, 2012 Docket DOT - OST 2001 - 9768 Charlotte, NC

– Mexico City, Mexico NOAT January 17, 2013 Docket DOT - OST 2003 - 14575 U.S.

– Sa ba U.S.

– St. Eustatius U.S.

– St. Barthelemy (pursuant to codeshare arrangement with Winward Islands Airways) NOAT December 16, 2002 (timely renewal filed

– pending) Docket DOT - OST 2002 - 13705

U.S.

– St. Kitts and Nevis NOAT February 16, 2006 (timely ren ewal filed

– pending) Docket DOT - OST 2001 - 10589 U.S.

– St. Vincent and the Grenadines (pursuant to codeshare arrangement with Caribbean Sun Airlines) NOAT May 19, 2004 (timely renewal filed

– pending) 7 Docket DOT - OST 2003 - 16061 U.S.

– Turks and Caicos NO AT January 24, 2013 Docket DOT - OST 2002 - 12208 Phoenix, AZ

– Cancun, Mexico NOAT June 21, 2013 Docket DOT - OST 2006 - 24613 Phoenix, AZ

– Guadalajara, Mexico NOAT July 26, 2013 Docket DOT - OST 2007 - 0025 Phoenix, AZ

– Hermosillo, Mexico (codeshare only) NOAT M ay 7, 2013 Docket DOT - OST 2005 - 22645 Phoenix, AZ

– Mexico City/ Mazatlan/Puerto Vallerta/San Jose del Cabo/Acapulco/ NOAT May 7, 2013 Docket DOT - OST 2007 - 29308

6 US Airways is currently authorized by DOT to codeshare with Swiss International Air Lines, for codeshare service on these routes over Zurich, Switzerland (ZRH). 7 This renewal application technically remains pending; however, US Airways’ no longer codeshares with Caribbean Sun Airlines.12

Ixtapa - Zihuatanejo/ Manzanillo, Mexico Los Angeles, CA/San Francisco, CA

– Cancun, Mexico Lo s Angeles, CA

– San Jose del Cabo, Mexico NOAT June 21, 2013 Docket DOT - OST 2009 - 0172 Charlotte, NC

– San Jose del Cabo, Mexico NOAT September 19, 2013 Docket DOT - OST 2010 - 0040 U.S.

– Abijan, Cote d’Ivoire/ Bujumbura, Burundi/ Conakry, Guinea/Kinshasa, Democratic Republic of Congo/Freetown, Sierra Leone/ Luanda, Angola/ Lome, Togo NOAT February 7, 2012 Docket DOT - OST 2010 - 0043

U.S.

– Johannesburg/Cape Town/Durban/East London/Port Elizabeth, South Africa NOAT December 4, 2012 Docket DOT - OST 2012 - 0189 Po ints in the U.S.

– Points worldwide on a third - country codeshare basis pursuant to an arrangement with the TACA Group carriers NOAT October 18, 2013 Docket DOT - OST 2009 - 0261

C. Frequency Allocations Number of Frequencies Route Description Order/NOAT 7 C harlotte

– Sao Paulo, Brazil Order 2013 - 7 - 4 (effective October 1, 2014) 7 Charlotte

– Rio de Janeiro, Brazil NOAT August 2, 2010

D. Codesharing Statements of Authorization Airline Partner Route Description Order/NOAT/ Department Action Docket TAP Air P ortugal* Blanket Statements of Authorization for reciprocal codesharing Department Action May 17, 2006 Docket DOT OST - 2006 - 24670 Royal Jordanian* Statements of Authorization for US Airways to display NOAT March 1, 2007 Docket DOT OST - 2007 - 2734713 “RJ” Designator Code EVA Airways* Blanket Statement of Authorization to display “BR” designator code Department Action January 8, 2010 Docket DOT OST - 2007 - 27352 Singapore Airlines* Blanket Statement of Authorization for reciprocal codesharing Department Action Aug ust 20, 2007 Joint Notice of Blanket Codesharing filed March 18, 2009 Docket DOT OST - 2007 - 28084

Asiana Airlines* Blanket Statements of Authorization for reciprocal codesharing Department Action November 30, 2007 Joint Notice of Blanket Codesharing filed March 31, 2009 Docket DOT OST - 2007 - 0059

Air New Zealand* Blanket Statements of Authorization for reciprocal codesharing Department Action September 11, 2007 Joint Notice of Blanket Codesharing filed July 13, 2009 Docket DOT OST - 2007 - 29024

Swiss Intern ational Airlines* Blanket Statements of Authorization for reciprocal codesharing Department Action April 8, 2008 Joint Notice of Blanket Codesharing filed March 9, 2009 Notice of Russia codesharing filed May 21, 2012 Docket DOT OST - 2008 - 0101

Air China* Statements of Authorization for reciprocal codesharing NOAT June 5, 2008 Docket DOT OST - 2008 - 0139 TACA/LACSA/TACA Peru* Blanket Statements of Authorization for reciprocal codesharing NOAT November 12, 2009 Docket DOT OST - 2009 - 026114

TAM* Blanket Statements of Authorization for reciprocal codesharing NOAT June 15, 2010 Docket DOT OST - 2010 - 0127 Turkish Airlines* Blanket Statements of Authorization for reciprocal codesharing Department Action July 29, 2010 Docket DOT OST - 2010 - 0184 Qatar Airways* Blanket Stat ements of Authorization for reciprocal codesharing Department Action May 6, 2009 Docket DOT OST - 2009 - 0079 Aegean Airlines* Statements of Authorization for reciprocal codesharing Department Action July 12, 2011 Docket DOT OST - 2011 - 0120 ANA and Air Japan* Blanket Statements of Authorization for reciprocal codesharing Department Action September 14, 2009 Docket DOT OST - 2009 - 0181 Brussels Airlines* Blanket Statements of Authorization for reciprocal codesharing NOAT March 18, 2010 Docket DOT OST - 2010 - 0042 Lufthansa* Statements of Authorization for reciprocal codesharing NOAT October 10, 2003 (amended October 16, 2003 and January 11, 2005) Joint Notice of Blanket Codesharing filed July 27, 2009 Docket DOT OST - 2003 - 15946

Avianca* Statements of Authoriza tion for reciprocal codesharing NOAT November 16, 2012 Docket DOT OST - 2012 - 0155 South African Airways* Statements of Authorization for reciprocal codesharing NOAT December 4, 2012 Docket DOT OST - 2012 - 0189 Croatia Airlines* Blanket Statements of Authori zation for reciprocal codesharing NOAT June 6, 2012 Docket DOT OST - 2012 - 008415

IV. PSA AIRLINES, INC. A. Certificates of Public Convenience and Necessity Route # Route Order None U.S.

– Canada Order 2004 - 5 - 22 B. Exemption Authorities Route Description Or der/NOAT Docket U.S.

– Bahamas NOAT June 1, 2012 Docket DOT - OST 2004 - 18017 U.S.

– Turks and Caicos NOAT April 20, 2012 Docket DOT - OST 2004 - 18811SERVICE LIST FOR AMERICAN AIRLINES , INC. AMERICAN EAGLE AIRLI NES , INC. US AIRWAYS , INC. PSA AIRLINES , INC . PIEDMONT AIRLINES, INC. howard.kass@usairways.com benjamin.slocum@usairways.com robert.wirick@aa.com francis.heil@aa.com urskr@state.gov john.allen@faa.gov dan.weiss@united.com steve.morrisey@united.com karin.faden@united.com jonathan.linde@united.com sascha.vanderbellen@delta.com jhill@dowlohnes.com perkmann@dowlohnes.com robert .land@jetblue.com msinick@ssd.com jyoung@yklaw.com dkirsten@yklaw.com bob.kneisley@wnco.co m leslie.abbott@wnco.com ethan.blank@rjet.com robert.cohn@hoganlovells.com patrick.rizzi@hoganlovells.com john.fredericksen@suncountry.com rpommer@atlasair.com anita.mosn er@hklaw.com jennifer.nowak@hklaw.com cefelts@fedex.com nssparks@fedex.com kevin.montgomery@polaraircargo.com matwood@cozen.com calvin.lott@faa.dot.gov garland.s.choate@faa.dot.gov mark.mulkey@faa.dot.gov richard.sykes@faa.dot.gov chester.piolunek@faa.dot.gov ATTACHMENT B