UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on October 25 , 2011



### NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 200 5

- 2 1121

_____________________________________________________________________________________________________________________________ ___ This serves as notice to the public of the action described below, taken by the Department official indicated (no

additional co nfirming order will be issued in this matter).

Joint Applicant s: LAN AIRLINES S.A. (LAN Airlines) LAN PERU, S.A. (LAN Peru) AEROVIAS DE INTEGRACION REGIONAL (AIRES)

Date s Filed: March 20, 2008 and August 18, 2011

Rel ief requested: Renewal of e xemption under 49 USC § 4 0109 to the extent necessary to permit LAN Airlines and

LAN Peru to continue use of the trade name “L AN ” and the designator code “LA” for all of their services to/from the

United States . The joint applicants also request amen dment of that exemption to the extent necessary to also permit

AIRES to register under 14 C FR Part 215 the use of the trade name “LAN” and the designator code “LA” for all of its

services to/from the United States

.

Renewal and amendment of st atement s of authorization und er 14 CFR Part 212 to permit LAN Airlines and LAN Peru to display the designator code of AIRES on their otherwise

- authorized services to and from the United States , and to

also now permit AIRES to display the designator code of LAN Airlines and LAN Peru on its otherwise

- authorized

services to and from the United States

.

The joint applicants state that AIRES will provide consumers with a ll disclosures and notices previously imposed upon LAN Airlines and LAN Peru as outlined in Order 2005

- 10

- 9 and will also comply with all disclosure requirements

outlined in 14 CFR Part 257

. The joint applicants request that all of their authority be granted for a two

- year term.

If renewal, date an d citation of last action: April 17, 2007 , in this Docket. 1

Applicant representative s : Juan Carlos Mencio, (786) 265

- 6091 (LAN Airlines ) Marshall S. Sinick, 202

- 626

- 6651 (LAN Peru)

Josh Romanow and Dania Slim, 202

- 663

- 8000 (AIRES)

DOT analyst: Robert J. Finamore , 202

- 366

- 2405

Responsive pleadings: None.

DISPOSITION

Action: Approved , in part (one

- year grant) , remainder (request for longer

- term award) dismissed

. 2

Action date: October 25 , 2011

Effective dates of authority granted: October 25 , 2011 , through October 25 , 2012

.

1 Our April 17, 2007 action also granted Transporte Aereo d/b/a LAN Express (LAN Express): 1) exemption authority to use the trade name “LAN” and to use the designator code “LA” for all of its services to/from the United States; and 2) a statement of

author ization under 14 CFR Part 212 to permit Lan Express to display the designator codes of LAN Airlines and LAN Peru on its

otherwise

- authorized services to and from the United States. The joint applicants state that LAN Express no longer uses the

common bran d or code in its services to/from the United States and does not seek renewal of its authorities.

2 The one

- year duration of the authority we granted is consistent with what we granted previously in this matter and with our usual policy in the circumstance s presented. We, therefore, dismissed the application to the extent that it sought authority for a longer period.Basis for approval: The overall state of aviation relations between the United States and Chile, Peru, and Colombia.

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our s tandard exemption conditions (attached as Appendix A ) , code

- share conditions (attached as Appendix B), and to the additional

conditions outlin ed in the special conditions/remarks sec t i o n immediately below.

Special conditions/Remarks: In addition to the standard exemption and code

- share conditions referenced above, our grant of the joint applicants’ reques t for amended authority will also be subject to the conditions specified in ordering paragraph s one, three, four, and seven of Order 2005

- 10

- 9 (to now also inclu de applicability of those condit ions to AIRES) . We note that in their request for amended autho rity the joint applicants stat ed that they would not be opposed to grant of their present request subject to such conditions

.

Action taken by: Paul L. Gretch, Director

, Office of International Aviation

__________________________________________________ _____________________________________________________________________________ Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our action was consistent w ith Department policy; (2) the applicant s were qualif ied to perform the proposed operations; (3) grant of the authority was consistent with the public interest; and (4) grant of the authority would not constitute a major regulatory action under the Energy Poli cy and

Conservation Act of 1975. To the extent n ot granted/deferred/dismissed, we denied all 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 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 effec tive 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: http://www.regulations.govAppendix A



### 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 Pa rts 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 airp ort that would be the holder’s last point of departure for the United States,

contact its International Industry Representative (IIR) (formerly referred to as International Principal Security Inspector) to advise the IIR of its plans and to find out whethe r 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 a ny 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, insur ance 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 comp etency 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 l imits 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 tribuna l 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 transpo rtation" 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 te rms, 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 n ot 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.

12/2007APPENDIX B

The Statements of Authorization granted are subject to the following conditions:

(a ) The statement of authorization will remain in effect only as long as L AN Airlines, LAN Peru, and AIRES , as appropriate, continue to hold the underlying authority to operate the code

- share services at issue, and the code

- share agreement providing for the code

- share operations remains in effect.

(b) L AN Airlines, LAN Peru, and/or AIRES , as appropriate, must promptly notify the Department if the code

- share agreement is no longer effective or if the carriers decide to cease operating all or a portion of the approved code

- s hare

services. (Such notice sho uld be filed in Docket OST

- 2005

- 21121.)

(c) The code

- sharing operations conducted under this authority must comply with 14 CFR §257 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 on the ticket) ac cept 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.

(d) The authority granted here is speci fically conditioned so that neither L AN Airlines, LAN Peru

, nor AIRES shall give any force or effect to any contractual provisions between themselves that are contrary to these conditions.

(e) We may amend, modify, or revoke the authority granted at any t ime without hearing at our discretion.