BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Joint Application of

CATHAY PACIFIC AIRWAYS LIMITED and LAN AIRLINES S.A.

for statements of authorization under 14 C.F.R. Part 212 (Chile-Hong Kong via U.S.) Docket OST-2010-

JOINT APPLICATION OF CATHAY PACIFIC AIRWAYS LIMITED AND LAN AIRLINES S.A. FOR STATEMENTS OF AUTHORIZATION Communications with respect to this document should be sent to: John R. Mietus, Jr. William C. Evans Law Office of John Mietus, LLC 6701 Democracy Blvd., Suite 300 Bethesda, MD 20817-7500 (202) 747-5212 - Telephone (240) 396-5362 - Fax john@mietuslaw.com bill@mietuslaw.com Counsel for CATHAY PACIFIC AIRWAYS LIMITED Juan Carlos Mencio General Counsel, N.A. LAN AIRLINES S.A. 6500 NW 22nd Street Miami FL 33122 (786) 265-6091 jmencio@lan.com

March 26, 2010

Notice : The Joint Applicants request a waiver of the 45-day advance filing requirement under 14 C.F.R. § 212.10(d)(2) and will be polling the parties on the attached service list for their po sitions on the waiver and requested authority.BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Joint Application of

CATHAY PACIFIC AIRWAYS LIMITED and LAN AIRLINES S.A.

for statements of authorization under 14 C.F.R. Part 212 (Chile-Hong Kong via U.S.) Docket OST-2010- March 26, 2010

JOINT APPLICATION OF CATHAY PACIFIC AIRWAYS LIMITED AND LAN AIRLINES S.A. FOR STATEMENTS OF AUTHORIZATION

Pursuant to 14 C.F.R. Part 212, Cathay Pacific Airways Limited ("Cathay Pacific") and Lan Airlines S.A. ("Lan Airlines") respectfully apply for statements of authorization to enga ge in certain code-sharing operations involving the transportation of persons, property, and mail between Chile and Hong Kong via points in the Unit ed States. As Cath ay Pacific and Lan Airlines wish to begin th ese services on May 1, 2010, they request prompt approval of their application so that they begin marketing these services without delay. 1

1 To the extent necessary, the Joint Applicants respectfully request a waiver of the 45-day advance-filing requirement of 14 C.F.R. § 212.10(d)(2) and the suggested 30-day advance-filing requirement of paragraph 4.6 of the 2002 U.S.-Hong Kong Memorandum of Unders tanding. The Joint Applicants will poll carriers on the attached service list as to their position on the waiver and application. The Joint Applicants also re quest that this authority be granted for an indefinite period, su bject to standard Department notice

conditions.Cathay Pacific and LAN Joint Application Page 2 1. Cathay Pacific and Lan Airlines recently signed a code-sharing agreement. Pursuant to this agreement, Cathay Pacific will place Lan Airlines' LA* code on Cathay Pacific flights between New York (JFK) and Los Angeles, on the one hand, and Hong Ko ng, on the other. Lan Airlines will place Cathay Pacific's CX* code on Lan Airlines flights between New York (JFK) and Los Angeles, on the one hand, and Santiago de Chile, on the other. Under this arrangement, Cathay Pacific and Lan Chile will only carry traffic between Chile and Hong Kong, and thes e code-sharing services will not be available to either carriers' passengers destined for or originating at points in the United States; Los Angeles and New York will only be transit points at which online traffic between Chile-U.S. and U.S.-Hong Kong flights will

connect. 2 2. Cathay Pacific holds exemptio n authority from the Department to engage, among other things, in schedu led foreign air transportation of persons, property, and mail between Hong Kong, via intermediate points, to a point or points in the United States, as coterminal points, and beyond. Notice of Action Taken dated November 20, 2009 in Docket OST-2003-14493. 3

2 To the extent Cathay Pacific and Lan Airlines, in operating the code-share services described herein, may be deemed to be commingling traffic in foreign air transportation with traffic not in foreign air transportation, they respectfully request permission to do so pursuant to 14 C.F.R. Part 216. 3 While the exercise of intermediate and beyond rights under the exemption is subject to point and frequency allocation by the Hong Kong SAR government, no such traffic rights are requested herein. Under Appendix 2, paragraph 1 ofCathay Pacific and LAN Joint Application Page 3 Lan Airlines holds a foreign air carrier permit issued by Order 87-8-55 and exemption authority to engage, among ot her things, in scheduled foreign air transportation of persons, property, and mail from points behind Chile via Chile and intermediate points to a point or points in the United States and beyond. Notice of Action Taken dated April 18, 2008 in Docket OST-1999-

6493. Both carriers ther efore hold from the De partment all necessary, underlying operating authority and requir e only statements of authorization to conduct the proposed code-share service. 3. Approval of this application would be consistent with the U.S.-HongKong and open U.S.-Chile bilateral aviation agreements. The proposed codeshare services are consistent with the third-country code-share provisions in sub-paragraph 4.1(ii) of the U.S.-Hong Kong 2002 Memorandum of Understanding and article 8(2)(c)(ii) of the 2001 Multilateral Agreement on the Liberalization of International Air Transportation, to which Chile and the U.S. are parties, and the Department has previou sly authorized Lan Airlines to offer Chile-Asia code-sharing services via the United States. See, e.g., Action on Application dated August 4, 2005 in Docket OST-2005-21910 (Chile-U.S.-Korea). Cathay Pacific and Lan Airlines will comply with Department rules and policies that pe rtain to code-sharing arrangements, such as the notice requirements of 14 C.F.R. Part 257.

the 2002 U.S.-Hong Kong MOU, transit and on-line connecting traffic may be connected at points in the United States.Cathay Pacific and LAN Joint Application Page 4 4. Approval of this application clearly is consistent with the public interest. It will enable both Cathay Pacific and Lan Airlines to provide single-carrier service be tween their respective homelands and will allow the traveling and shipping public to enjoy the benefits of that service. Further, since the code-sharing operations will simply link existing Cathay Pacific and Lan Airlines flights, this application will not result in a near-term increase in fuel consumption of ten million gallons or more. WHEREFORE, Cathay Pacific Airway s Limited and Lan Airlines, S.A. respectfully request that the Departme nt grant the requested statements of

authorization and such other relief as the Department deems necessary or

proper. Respectfully submitted,

John R. Mietus, Jr. William C. Evans Law Office of John Mietus, LLC 6701 Democracy Blvd., Suite 300 Bethesda, MD 20817-7500 (202) 747-5212 - Telephone (240) 396-5362 - Fax john@mietuslaw.com bill@mietuslaw.com Counsel for CATHAY PACIFIC AIRWAYS LIMITED Juan Carlos Mencio General Counsel, N.A. LAN AIRLINES S.A. 6500 NW 22nd Street Miami FL 33122 (786) 265-6091 jmencio@lan.com

March 26, 2010CERTIFICATE OF SERVICE I hereby certify that I have, this 26th day of March, 2010 caused the attached Joint Application of Cathay Pacific Airways Limited and Lan Airlines S.A. for Statements of Authorization to be se rved by elec tronic mail on the persons on the attached service list.

John R. Mietus, Jr.SERVICE LIST

Carl Nelson, American Airlines carl.nelson@aa.com Pierre Murphy for Arrow Air, Inc. pmurphy@ggh-airlaw.com Russ Pommer, Atlas Air rpommer@atlasair.com

Hershel Kamen for Continental and Continental Micronesia hershel.kamen@coair.com Sascha Van Der Bellen, Delta sascha.vanderbellen@delta.com (alt. jeff.morgan@delta.com) Kevin Montgomery, Polar Air Cargo kevin.montgomery@polaraircargo.com (alt. peter.beckett@polaraircargo.com) Angie Bird, Federal Express anbird@fedex.com Jeff Manley, United Air Lines jeffrey.manley@united.com Howard Kass for US Airways howard.kass@usairways.com David Vaughan, Kelley Drye & Warren, for United Parcel Service dvaughan@kelleydrye.com Jonathan Hill, Dow Lohnes for Hawaiian jhill@dowlohnes.com John Richardson for Amerijet jrichardson@johnlrichardson.com Steve Lachter, Lachter & Clements, for Astar Air Cargo lachter@starpower.net Malcolm Benge for World Airways mlbenge@zsrlaw.com John Palo, Evergreen john.palo@evergreenairlines.com Tom Gillies, Southern Air tgillies@southernair.com Sandy Sinick, Squire Sanders, for Florida West msinick@ssd.com Ed Sauer, Squire Sanders, for Aloha esauer@ssd.com Mark Atwood, Sher Blackwell, for Kalitta matwood@sherblackwell.com