### BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

Joint Application of 

### CZECH AIRLINES J.S.C. and 

### KOREAN AIRLINES CO., LTD. for a Blanket Statement ofAuthorization 14 C.F.R. Part 212 (Code-Sharing U.S.-Korea) ) ) ) ) 

### ) ) ) 

### ) ) OST-2013-



### APPLICATION OF CZECH AIRLINES J.S.C. AND KOREAN AIRLINES CO., LTD. FOR A BLANKET STATEMENT OF AUTHORIZATION Communications with respect to this document shouldbe sent to: Allan Mendelsohn Cozen 

### 0 'Connor The Army andNavy Club Building 1627 I Street, N.W., Suite 1100 Washington, D.C. 20006 Tel: 

### +1-202-463-2508 Fax: 

### + 1-202-403-3694 amendelsohn@cozen.com

Counsel for Czech Airlines

### j .s.c.

March 13,2013 William H. Callaway, Jr. Jonathon H. Foglia Zuckert, Scoutt & Rasenberger, L.L.P. 888 Seventeenth Street, N.W., Suite 700 Washington, D.C. 20006 Tel: 

### +1-202-298-8660 Fax: 

### +1-202-342-0683 whcallaway@zsrlaw.com jhfoglia@zsrlaw.com Counsel for Korean Air Lines Co., Ltd.



### NOTICE: Answers to this Application ordinarily would be due by March 22, 2013. Cezch Airlinesj.s.c. and Korean Air Lines Co., Ltd. are requesting expedited treatment ofthis Application and will poll the air carrier representatives served with this Application and notify the Department ofthe results.Joint Application of 

### BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

CZECH AIRLINES J.S.C. and OST-2013- 

### KOREAN AIR LINES CO., LTD. for a Blanket Statement ofAuthorization 

### ) ) ) ) ) 

### ) ) ) ) 14 C.F.R. Part 212 (Code-Sharing U.S.-Korea)



### APPLICATION OF CZECH AIRLINES J.S.C. AND KOREAN AIR LINES CO., LTD. FOR A BLANKET STATEMENT OF AUTHORIZATION Czech Airlinesj.s.c. ("Czech") and Korean Air Lines Co., Ltd. ("Korean") herebyrequest that the Department issue a blanket statement ofauthorization under 14 C.P.R. Part 212, permitting Korean to display, on a blind sector basis, Czech's "OK" designator code on flights operated by Koreanbetween the Republic ofKorea andthe United States, in conjunction with foreign air transportation ofpersons, property and mail held out by Czechbetween a point or points in the Czech Republic via third country intermediate points, on the one hand, and a point

orpoints in the United States, on the other hand. The initial routes on which Czech's "OK" designator code wouldbe displayed on Korean operated flights are set forth in Appendix A to this Application. In support ofthis Application, Czech and Korean state as follows: 1. Czech and Korean recent!y entered into an agreement to engage in code-share services ("Code-Share Agreement"), including services for which a blanket statement of authorization is sought in this Application. Czech and Korean plan to initiate their proposed code-share services on or about April1, 2013 and therefore request that the Department waive its

### Application ofCzech Airlines and Korean Air for a Blanket Statement ofAuthorization Docket OST-2013- March 13, 2013; Page 2 requirement under 14 C.F.R. 212.10( d)(2) thatrequests for statements ofauthorization be filed at least 45 days in advance ofthe proposed date ofimplementation. 2. Czech and Korean hold all authoritynecessaryto conduct these proposed operations. Czech is authorized to engage in scheduled foreign air transportation ofpersons, property and mail, from points behind the Czech Republic via the Czech Republic and intermediate points to a point orpoints in the United States and beyond. See Order 96-10-46 (served Nov. 5, 1996). Similarly, Korean is authorized to engage in foreign air transportation of persons, property and mail, from points behind the Republic ofKorea via the Republic ofKorea and intermediate points orpoints in the United States andbeyond. See Order 2003-11-20 (served Nov. 24, 2003). 3. The requested code-share authority is fully consistent with the Open Skies Agreementbetween the European Union and the United States1 as well as the Open Skies Agreementbetween the Republic ofKorea and the United States.2 4. Issuance ofthe blanket statement ofauthorization sought herein is consistent with the public interest. Indeed, as the Department itselfhas long recognized:

2 Increased international code sharing and other cooperative arrangements can benefit consumers by increasing international service options and enhancing competitionbetween carriers, particularly for traffic to or from cities behind major gateways. By stimulating traffic, the increased competition and service

AIR TRANSPORT AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE EUROPEAN UNION (executed Apr. 30, 2007), at Art. 10**~7.** AIR TRANSPORT AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF THE REPUBLIC OF KOREA (executed Jun. 9, 1998), at Art. 8**~7.**

### Application ofCzech Airlines and Korean Air for a Blanket Statement ofAuthorization Docket OST-2013- March 13, 2013; Page 3 options should expand the overall international market and increase overall opportunities for the aviation industry.3 

### 5. Additionally, the proposed services will enable Czech to provide additional single carrier service and, in the process, serve the interests ofcomity andreciprocity, andbenefit international travelers and shippers. 6. The code-share services for which the requestedblanket statement of authorization is sought will notbe available to Czech passengers with an ultimate origin or ultimate destination in the Republic ofKorea. Under the proposed code-share services, points in the Republic ofKorea onlywill serve as transit points at which online Czech traffic between the United States and the Czech Republic will connect. 7. Czech and Korean agree to accept the standard conditions typically applicable to code-share authority such as that requested in this Application. Czech and Korean will conduct all oftheir code-share operations in compliance with the requirements of 14 C.F.R. Part 257 regarding the disclosure ofcode-sharing arrangements to consumers. 8. Czech and Korean will comply with the Department's standard 30-day advance notice requirementprior to the initiation ofany future code-share operations under the blanket statement ofauthorization sought herein. 9. Czech and Korean request that the blanket statement ofauthorization be granted for an indefinite period, so long as the Code-Share Agreement continues in effect, consistent with the Department's practice inprevious code-share proceedings. Shouldthe Code-Share Agreement cease to be effective, Czech and Korean will notify the Department accordingly.

3 

### Statement ofUnited States International Air Transportation Policy, 60 Fed. Reg. 21841 (May 3, 1995).

### Application ofCzech Airlines and Korean Air for a Blanket Statement ofAuthorization Docket OST-2013- March 13, 2013; Page 4

10. Czech and Korean request expeditedprocessing ofthis Application in order to facilitate the initiation ofthe proposed code-share services on or about April1, 2013, and, inthis regard, they will be polling the carrierrepresentatives listed on the certificate ofservice accompanying this Application and will notifythe Department ofthe results. WHEREFORE, based on the foregoing, Czech and Korean respectfully request a blanket statement ofauthorization to fully implement the code-share arrangement described herein. Czech and Korean further request that the Department grant such other reliefas it considers consistent with this Application and the public interest.

Respectfully submitted,

# ~~~\t~~c Cozen 

### 0 'Connor The Army and Navy Club Building 1627 I Street, N.W., Suite 1100 Washington, D.C. 20006 Tel: + 1-202-463-2508 Fax:+1-202-403-3694 amendelsohn@cozen.com

Counsel for Czech Airlinesj .s.c.
March 13, 2013

# ~~~ William H. Callaway, Jr.

# ~ \ Jonathon H. Foglia Zuckert, Scoutt & Rasenberger, L.L.P. 888 Seventeenth Street, N.W., Suite 700 Washington, D.C. 20006 Tel: + 1-202-298-8660 Fax: + 1-202-342-0683 whcallaway@zsrlaw.com jhfoglia@zsrlaw.com Counsel for Korean Air Lines Co., Ltd.

### Appendix A

Display ofCzech Airlines' "OK" Designator Code on Korean Air Operated Flights Routing: From/To Seoul, Republic ofKorea (ICN): United States territory ofGuam (GUM)CERTIFICATE OF SERVICE I hereby certifythat I caused a copy ofthe foregoing Application ofCzech Airlinesj .s.a and Korean Air Lines Co., Ltd. for a Blanket Statement ofAuthorization to be served, this 13th day ofMarch, 2013, via email transmission, onthe following persons: robert.wirick@aa.com rpommer@atlasair.com sascha.vanderbellen@delta.com sametta.c.bamett@delta.com charters@evergreenairlines.com ranjit.seth@evergreenairlines.com chris.schuldt@evergreenhelicopters.com philip.church@evergreenhelicopters.com robert.foster@evergreenairlines.com anbird@fedex.com gbleopard@fedex.com jhill@dowlohnes.com (Counsel for Hawaiian Airlines) kevin.montgomerv@polaraircargo.com peter.beckett@polaraircargo.com jonathan.linde@united.com steve.morrissey@united.com dan.weiss@united.com lhalloway@crowell.com (Counsel for United Air Lines) gmurphy@crowell.com (Counsel for United Air Lines) anita.mosner@hklaw.com (Counsel for United Parcel Service) jennifer.nowak@hklaw.com (Counsel for United Parcel Service) howard kass@usairways.com benjamin.slocum@usairways.com mlbenge@zsrlaw.com (Counsel for WorldAirways/North American Airlines) robert.finamore@dot.gov brett.kruger@dot.gov shelita.smith@dot.gov info@airlineinfo.com

Bryant Templeton