BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of AIR CANADA ROUGE fora StatementofAuthorization pursuantto 14C.F.R. Part212 Application of UNITED AIRLINES, INC. foran exemption pursuantto49 U.S.C. 

### § 40109 (blanketcodeshare authori ) DocketOST-2014-



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DocketOST-2004-19148

APPLICATIONS OF AIR CANADA ROUGE AND UNITED AIRLINES, INC. FORA STATEMENTOF AUTHORIZATION ANDAN AMENDED EXEMPTION

Communications concerning this document may be served upon: Anita M. Mesner Jennifer M. Nowak Holland 

### & Knight LLP 800 17TH Street, NW Suite 1100 Washington, DC 20006 Tel: (202) 419-2604 Fax: (202) 955-5564 anita.mosner@hklaw.com Counsel forAirCanada rouge Daniel

### A Weiss Managing Director-International

Affairs and Regulatory United Airlines, Inc. 233 South Wacker Drive 1oth Floor- HDQIZ Chicago, IL 60606 (872) 825-6828 dan.weiss@united.com Steve Morrissey Managing Director-RegulatoryAffairs

and Policy UnitedAirlines, Inc. 1225 NewYorkAvenue, NW Suite 1100 - DCAIZ/DCALD Washington, DC 20005 (202) 521-4373 steve.morrissey@united.comThomas Newton Belling Vice President and Deputy General

Counsel Abby I. Bried Associate General Counsel-Regulatory,

Alliances & International James Conneely

Counsel-Regulatory UnitedAirlines, Inc. 233 SouthWacker Drive 11 1h Floor- HDQLD Chicago, IL 60606 (872) 825-8068 (872) 825-7415 (872) 825-8311 thomas.bolling@united.com abby.bried@united.com james.conneely@united.com

August 8, 2014 Gerald F. Murphy Steven J. Seiden Crowell & Moring LLP 1001 PennsylvaniaAvenue, NW Washington, DC 20004 (202) 624-2500 gmurphy@crowell.com sseiden@crowell.com Counsel for United Airlines, Inc.

Notice: ANY PERSON MAY FILE AN ANSWER TO THIS APPLICATION. THE APPLICANTS ARE REQUESTING EXPEDITED RELIEF FROM THE DEPARTMENT ANDWILL POLLALL INTERESTED PARTIES.Application of BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

AIR CANADA ROUGE Docket CST -2014- fora Statement ofAuthorization pursuantto 14C.F.R. Part212 Application of UNITED AIRLINES, INC. foran exemption pursuantto 49 U.S.C. 

### § 40109 (blanketcodeshare authori ) 

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DocketOST-2004-19148

APPLICATIONS OF AIR CANADA ROUGE AND UNITED AIRLINES, INC. FORA STATEMENT OF AUTHORIZATION AND AN AMENDED EXEMPTION



### Air Canada rouge ("AC rouge") hereby applies for a Statement ofAuthorization pursuant to 14 C.F.R. Part 212 to enable AC rouge to carry the United Airlines, Inc. ("United") "UA*" code on flights AC rouge operates on behalfofAir Canada. 1 

### In addition, United applies, pursuant to 49 U.S.C. 

### § 40109 and Rule 302 ofthe Department's Rules of Practice, for amendment ofits blanket exemption from 49 U.S.C. 

### § 41101 to authorize United to provide codeshare services on flights operated byAC rouge to points neither in open-skies countries nor listed in United's certificate or exemption authority upon 30 days' notification to the Department, as United has been allowed to do with its other

1Air Canada holds authority to display United's UA* code on flights operated by Air Canada between any point or points in Canada or the U.S. and any point or points in any third country. See Department Action on Application, Docket No. OST-2009-0095 (May 6, 2009). The codeshare agreement to which United and Air Canada are parties was initially approved under OST Order 1995-10-27, and the Department subsequently broadened the carriers' transborder codeshare authority in undocketed approvals dated June 12, 1998 (UAIAC*) and August27, 1998 (AC/UA*).Air Canada rouge and United Applications for StatementofAuthorization and Amended Exemption Authority codeshare partners. 2 In support of their applications, AC rouge and United state the following: 1. AC rouge requests a Statement ofAuthorization to display United's UA* designator code on flights it operates on behalf of Air Canada between any point or points in Canada and any point or points in the U.S. and any point or points in any third country. 2. AC rouge currently holds a Statement of Authorization to display Air Canada's code in conjunction with its U.S. services. 3 3. Initially, AC rouge will carry the UA* code on flights it operates on behalf ofAirCanada between the points listed in ExhibitA. 4. AC rouge, Air Canada and United all hold the necessary underlying economic authority to engage in the proposed codeshare operations. AC rouge holds a foreign air carrier permit that authorizes it, interalia, to engage in scheduled foreign air transportation of persons, property, and mail from points behind Canada, via Canada and intermediate points, to a point or points in the United States and beyond.4 5. Air Canada holds a foreign air carrier permit that authorizes it, interalia, to engage in scheduled foreign air transportation of persons, property, and mail from points behind Canada, via Canada and intermediate points, to a point or points in the United States and beyond. 5 6. United holds a certificate of public convenience and necessity for Route 838 authorizing United, inter alia, to engage in scheduled foreign air transportation of

2 Notice ofAction Taken, Docket Nos. DOT-OST-2004-19148 and DOT-OST-2014-0082 (Jun. 13, 2014). 3 Notice ofAction Taken, Docket No. OST-2013-0087 (May 22, 2013). 4 Order2013-12-19 (Dec. 31, 2013), Docket No. OST-2013-0087. 5 Order2008-9-23 (Jul. 18, 2008), Docket No. OST-2007-28768.

2AirCanada rouge and United Applications for StatementofAuthorization and Amended Exemption Authority persons, property and mail between points in the U.S. and points in Canada via the U.S. and intermediate points and beyond to points in third countries. 6 7. United, however, requires supplemental exemption authority to fully implement the proposed codeshare arrangement and maximize its flexibility to provide global codeshare services by placing its code on AC rouge flights serving points for which United does not otherwise hold authority. United, therefore, asks the Department to amend its worldwide blanket exemption authority in Docket DOT-OST-2004-19148 to permit similar codesharing with AC rouge. United requests that its amended exemption authority be granted fora period ofat leasttwo years. 8. The proposed codeshare authorization requested herein is consistent with the 2007 Open Skies Agreement between the U.S. and Canada, which permits carriers ofthe parties to enter into cooperative marketing arrangements with each other.7 9. The codesharing proposed herein is also fully consistent with the public interest. The codeshare arrangement will allow the carriers to expand their online networks, promoting competition and enhancing service optionsfortravelers. 10. Pursuant to the Department's Notice In the MatterofBlanketNotification ofCode Share Service to Open-Skies Partners andPoints, dated February 9, 2009, AC rouge and United hereby give blanket notification of code share services involving the display ofthe UA* designator code on flights AC rouge operates on behalf ofAirCanada between any point or points in Canada or the U.S. and any point or points in any open skies country. 11. AC rouge and United agree to abide by the consumer notification requirements of 14 C.F.R. Part 257, as well as the other conditions and limitations the Department normally attaches to codeshare operations.

6 Order2007-4-19 (Apr. 18, 2007), Docket No. OST-2005-22228. 7 U.S.-Canada Open SkiesAgreement, Art. 11, 

### 1f6(Mar. 12, 2007).


### 3Air Canada rouge and United Applications for Statement ofAuthorization and Amended Exemption Authority 

### 12. This proposed codesharing arrangement will have no effect on United's CRAF obligations. Air Canada rouge has received International Operational Safety Audit ("IOSA") certification and United has completed a FAA codeshare safety audit. 13. AC rouge and United plan to begin codesharing overthese routings upon receipt of all necessary authority and, therefore, request a waiver of the provision that requires carriers to file requests for Statements of Authorization at least 45 days in advance oftheir proposed startup date. 14. AC rouge also requests that the Statement of Authorization be issued for
an indefinite period, as long as the relevant codeshare agreement continues in effect, and will notifythe Department ifthe agreement should cease to be effective. WHEREFORE, AC rouge and United respectfully request that the Department grantthe Statement ofAuthorization and amended exemption authority described above
on an expedited basis, and grant such other and different relief as is consistent with these applications and with the public interest.

ubmitted,

Anita M. Mesner Jennifer M. Nowak Holland & 

### Knight LLP Counsel forAirCanada rouge



### 4

### ~(Aerald F. Murphy Steven J. Seiden Crowell & 

### Moring LLP Counsel for UnitedAirlines, Inc.ExhibitA Initial Codeshare Points AC rouge initially will displaythe UA* codes on flights it operates on behalfofAirCanada between thefollowing city pairs: YYZ-MCO YYZ-TPA YYZ-SRQ YYZ-SAN YYZ-PHX YYZ-LAS YYZ-ATH YYZ-BCN YYZ-DUB YYZ-EDI YYZ-LIS YYZ-VCE YUL-LAS YUL-MCO YUL-ATH YUL-BCN YUL-FCO YUL-NCE YVR-LAS YYC-LAS YVR-LAX YYC-LAX YVR-SFO YYC-PHX YVR-PHXCERTIFICATE OF SERVICE I hereby certify that I have this date served the foregoing document on the persons identified below by causing a copyto be sent by electronic mail.

robert.wirick@aa.com howard.kass@aa.com sharon.pasley@fedex.com sllunsford@fedex.com sascha.vanderbellen@delta.com chris.walker@delta.com jyoung@yklaw.com (Counsel for SpiritAirlines) dkirstein@yklaw.com (Counsel for SpiritAirlines) marshall.sinick@ssd.com (Counsel forAlaskaAirlines) agoerlich@ggh-airlaw.com(Counsel forAllegiant) rpommer@atlasair.com kevin.montgomery@polaraircargo.com peter.beckett@polaraircargo.com anita.mosner@hklaw.com (Counsel for United Parcel Service) jennifer.nowak@hklaw.com (Counsel for United Parcel Service) mlbenge@zsrlaw.com (Counsel for North American) thomas.ting@suncountry.com joan.canny@amerijet.com jrichardson@johnlrichardson.com (Counsel forAmerijet) jhill@cooley.com (Counsel for Hawaiian and JetBiue) perkmann@cooley.com (Counsel for Hawaiian and JetBiue) matwood@cozen.com (Counsel for Kalitta Air) john.s.duncan@faa.gov urskr@state.gov

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## ~wak August8,2014