BEFOR E TH E DEPARTMEN TO F TRANSPORTATIO N

WASHINGTON , D.C . Join t Applicatio n o f AI R CANAD A an d TAC A INTERNATIONA L AIRLINES , S.A . fo rStatement s o fAuthorizatio n pursuan t t o 1 4 C.F.R.§21 2 ^__ _ Docke t OST-2011 -

Join t Applicatio n o f AI R CANAD A an d LINEA S AEREA S COSTARRICENSE S S.A . fo rStatement s o fAuthorizatio n pursuan t t o 1 4 C.F.R . §21 2 JOIN TAPPLICATIO N O F

AI R CANADA , TAC A INTERNATIONA L AIRLINES , S.A. , AN D LINEA S AEREA S COSTARRICENSE S Communication s concernin g thi s documen t ma yb e serve d upon : Anit a M . Mosne r Jennife rNowa k Hollan d & Knigh t LL P 209 9 Pennsylvani a Avenu e N W Suit e 10 0 Washington , D C 20006-680 1 

### Tel : (202)419-260 4 Fax : (202 ) 955-556 4 anita.mosner@hklaw.co m Counse l fo rAi rCanad a Charle s F . Donle yI I Squire , Sander s & Dempse y (US ) LL P 120 1 Pennsylvani a Avenue , N W Washington , D C 2000 4 Tel : (202 ) 626-684 0 Fax : (202 ) 626-678 0 charles.donley@ssd.co m 

### Counsel fo

r TAC A Internationa l Airlines , S.A . an d Linea s Aerea s Costarricense s S.A . Marc h 14 , 201 1 Notice : Answer s t o thi s Applicatio n ar e du e at th e Departmen t o fTransportatio n o n o r befor e Marc h 23 , 2011 . Answer s mus t b e serve d o n th e docke t section , an d th e partie s liste d above .BEFOR E TH E DEPARTMEN TO F TRANSPORTATIO N

WASHINGTON , D.C . Join t Applicatio n o f AI R CANAD A an d TAC A INTERNATIONA L AIRLINES , S.A . fo rStatement s o fAuthorizatio n pursuan t t o 1 4 C.F.R . §21 2 Docke t OST-2011 -

Join t Applicatio n o f AI R CANAD A an d LINEA S AEREA S COSTARRICENSE S S.A . fo rStatement s o fAuthorizatio n pursuan t t o 1 4 C.F.R . §21 2 JOIN TAPPLICATIO N O F

AI R CANADA , TAC A INTERNATIONA L AIRLINES , S.A. , AN D LINEA S AEREA S COSTARRICENSE S S.A . Ai rCanada , TAC AInternationa l Airlines , S.A . (TACA) , an d Linea s Aerea s Costarricenses , S.A . ("LACSA" ) (collectively , th e "Join t Applicants" ) hereb yappl yfo r Statement s o fAuthorizatio n pursuan t t o 1 4 C.F.R . Part 21 2 t o engag e i n th e code sharin g service s describe d below . I n support o fthei rJoin t Application , th e Join t Applicant s submi t th e following :1 . Ai rCanad a request s a blanke t Statemen t o fAuthorizatio n t o displa y TACA' s "TA* " designato rcod e o n an ycurren t o rfutur e flight s operate d byAi rCanada 1 betwee n point s i n Canad a o n th e on e hand , an d point s i n th e Unite d State s o n th e othe r han d tha t connec t wit h TACA' s Centra l America n service s at an yo fTACA' s curren t o r futur e U.S . gateways . TAC Awil l no t carryloca l traffi cbetwee n th e U.S . an d Canada . 2 . Ai rCanad a request s a blanke t Statemen t o fAuthorizatio n t o permi t i t t o displa yLACSA' s "LR* " designato rcod e o n flight s operate d b yAi rCanada 2 betwee n point s i n Canad a o n th e on e hand , an d point s i n th e Unite d State s o n th e othe rhan d tha t connec t wit h LACSA' s Centra l Americ a service s at an yo fLACSA' s curren t o rfutur e U.S . gateways. 3 Again , LACS Awil l no t carryU.S.-Canad a loca l traffic . 3 . TAC Arequest s a blanke t Statemen t o fAuthorizatio n t o displa yAi r Canada' s "AC* " designato rcod e o n flight s operate d byTAC Abetwee n point s i n Cost a Rica , Guatemala , E l Salvador , Nicaragua , an d Hondura s o n th e on e hand , an d point s i n th e Unite d State s o n th e othe rhand . Ai rCanad a wil l no t carryloca l traffi co n suc h flights . 4 . LACS Arequest s a blanke t Statemen t o fAuthorizatio n t o displa yAi r Canada' s "AC* " designato rcod e o n flight s operate d byLACS Abetwee n point s i n Cost a Rica , Guatemala , E l Salvador , Nicaragua , an d Hondura s o n th e on e hand , an d point s i n

1 Som e o fth e flight s that ma

ybe operate d unde rthi s arrangemen t ma ybe performe d b

yJazz Aviatio n (Jazz) LP , an d carr yth e AC * code . T

o th e exten t necessary , Ai rCanad a requests that th e statemen t o

fauthorizatio n permi t th e displa yo fth e TA* an d LR * designato rcod e o n al l flight s betwee n th e U.S . an d Canad a whic h carr ya n A C o rAC * code . Jazz hold s a Foreig n Ai rCarrie r Permi t an d ha

s broad-base d authorit

yt o displa

yth e AC * cod e o n its flights . See Jazz Foreig n Ai r Carrie rPermit , Orde r2009-6-1 3 (Jun e 17 , 2009) , Docke t OST-2009-0024 ; an d Ai rCanada/Jazz Statemen t o

fAuthorizatio n (Februar

y25 , 2009) , Docke

t OST-2009-0025 . 2 Se e footnot e 1 . 3 LACSA' s "LR* " designato rcod e wil l be used unti l suc h tim e a s LACS Abegin s us e o

fth e "TA* " commo n code , a

s authorize d b

yNotice of Action Taken date d Januar

y22 , 2009 , Docke

t DOTOST-2004-1735 5 (timel yrenewa l applicatio n file d Januar y13 , 2010) . A

t that time , al l LACS

A flights wil l be identifie d wit h th e "TA* " designato rcode , includin g codeshar e flight s operate d b

yAi r Canada .th e Unite d State s o n th e othe rhand . Ai rCanad a wil l no t carryloca l traffi co n suc h flights . 5 . Th e initia l codeshar e point s ar e liste d i n Appendi xA . Th e Join t Applicant s inten d t o ad d codeshar e point s i n Nicaragu a an d Hondura s a t a late rdat e an d wil l notifyth e Departmen t n o late rtha n 3 0 day s befor e commencin g an yadditiona l codeshar e servic e involvin g U.S . connectin g points . 6 . Ai rCanad a currentl yhold s a foreig n ai rcarrie rpermi t tha t authorize s i t t o engag e i n schedule d foreig n ai rtransportatio n o fpersons , property , an d mai l fro m point s behin d Canada , vi a Canad a an d intermediat e points , t o a poin t o rpoint s i n th e Unite d State s an d beyond . Order 2008-9-23

(Jul y18 , 2008) , Docke t No . OST-2007-28768 . Unde rth e U.S.-Canad a Ope n Skie s Agreement , Ai rCanad a mayoffe rthi s servic e eithe r o n it s own , o ri n conjunctio n wit h a codeshar e partne r(o rpartners) . Se e U.S.-Canad a Ope n Skie s Agreement , Para . 6 , Art . 11 . 7 . TAC Acurrentl yhold s underlyin g Ope n Skie s rout e authorit yfro m point s behin d E l Salvado rvi a E l Salvado ran d intermediat e point s t o a poin t o rpoint s i n th e Unite d State s an d beyond . Docke t OST-97-2674. 4 8 . LACS Acurrentl yhold s underlyin g Ope n Skie s rout e authorit yfro m point s behin d Cost a Ric a vi a Cost a Ric a an d intermediat e point s t o a poin t o rpoint s i n th e Unite d State s an d beyond . Docke t OST-97-2682. 5 9 . Th e propose d codeshar e servic e i s consisten t wit h th e Ope n Skie s Agreement s betwee n th e U.S . an d Canada, 6 E l Salvador 7 an d Cost a Rica. 8

4 TACA' s authorit

yremain s i n effec

t as th e resul t o

fa renewa l applicatio n timel yfile d wit h th e Departmen t o n Septembe r1 , 1999 invokin g th e automati cextensio n provision s o fth e Administrative Procedure s Ac t an d Par t 377 o fth e Department' s procedura l regulations . 5 LACSA' s authorit

yremain s i n effec

t a s th e resul t o

fa renewa l applicatio n timel yfile d wit h th e Departmen t o n Novembe r2 , 200 1 invokin g th e automati cextensio n provision s o fth e Administrative Procedure s Ac t an d Par t 377 o fth e Department' s procedura l regulations .10 . Th e codesharin g propose d herei n b yAi rCanada , TACA , an d LACS Ai s full yconsisten t wit h th e publi cinterest . Th e codeshar e arrangemen t wil l allo wAi r Canad a t o provid e singl e carrie rservic e betwee n Canad a an d point s i n Centra l America , an d thereb yenhanc e it s presenc e i n th e market . I t als o wil l als o offe rtravelers th e benefit s o fsuc h servic e a s eas e i n ticketin g an d baggag e handling . I n addition , approva l wil l improv e th e economic s o fTACA' s servic e betwee n U.S . point s an d Centra l America n points , whic h wil l benefi t th e travelin g public . 11 . Th e Join t Applicant s agre e t o accep t th e condition s normall yapplicabl e t o codeshar e authorit ysuc h a s requeste d herein . 12 . Th e Join t Applicant s als o reques t tha t th e Statement s o fAuthorizatio n b e issue d fo ra n indefinit e period , a s lon g a s th e relevan t codeshar e agreemen t betwee n Ai r Canada , TACA, an d LACS Acontinue s i n effect , an d wil l notif yth e Departmen t i f tha t agreemen t shoul d ceas e t o b e effective . 13 . Th e Join t Applicant s agre e t o abid e b yth e consume rnotificatio n requirement s o f1 4 C.F.R . Part 257 , a s wel l a s th e othe rcondition s applicabl e t o code shar e service s operate d t o o rsol d i n th e Unite d States . 14 . Th e Join t Applicant s pla n t o begi n service s ove rthes e routing s i n earl y April , 201 1 and , therefore , reques t a waive ro fth e provisio n tha t require s tha t carrier s fil e request s fo rStatement s o fAuthorizatio n at leas t 4 5 day s i n advanc e o fthei rpropose d startu p date . 6 Th e U.S-Canad a Ope n Skie s Agreemen t states , "an ydesignate d airlin e o fon e Part

yma yente r into cooperative marketin g arrangements suc h a s blocked-space , code-sharin g o rleasin g arrangements , wit h a n airlin e o rairline s o feithe rPart

y[and ] a n airlin e o rairline s o fa third countr

y

. . . . " Para . 6 , Art . 11 , U.S.-Canad a Ope n Skie s Agreement . 7 Similarly , th e U.S.-E l Salvado rOpe n Skie s Agreemen t authorize s an yairlin e ofeithe rcountr yt o ente rinto cooperative marketin g arrangements wit h anyairlin e o rairline s o fa thir d country . See Para . 7 , Art . 8 , U.S.-E l Salvado rOpe n Skie s Agreement . 8 Th e U.S.-Cost

a Ric a Ope n Skie s Agreemen t contain s a simila rprovision . See Para . 7 , Art . 8 , U.S-Cost a Ric a Ope n Skie s Agreement .WHEREFORE , th e Join t Applicant s respectfull yreques t th e Departmen t t o gran t the m th e Statement s o fAuthorizatio n describe d abov e an d t o gran t them suc h othe ran d differen t relie fa s i s consisten t wit h thi s applicatio n an d wit h th e publi cinterest . Respectfull ysubmitted ,

^/Anfr a M . Mosne r Jennife rNowa k Hollan d & Knigh t LL P Attorney s fo rAi rCanad a 

# P/MtJ^^A Charle s F . Donle y Squire , Sander s & Dempse y (US ) LL P Attorne yfo rTAC A Internationa l Airlines , S.A . an d Linea s Aerea s Costarricense s S.A .Appendi xA Initia l Codeshar e Point s 1 . Th e AC * Cod e wil l b e displaye d o n flight s operate d b yTAC Abetwee n th e followin g cit ypairs : LAX - SA L MI A- SA L MI A- GU A 2 . Th e AC * Cod e wil l b e displaye d o n flight s operate d byLACS Abetwee n th e followin g cit ypairs : LAX - SA L LAX -GU A MI A- SJ O 3 . Th e TA * cod e o rth e LR * cod e wil l b e displaye d o n flight s operate d b yAi rCanad a betwee n th e followin g cit ypairs : LAX - YY C MI A- YU L LAX - YV R MI A- YYZ MC O - YU L DF W- YYZ MC O - YYZCERTIFICAT E O F SERVIC E I hereb ycertif ytha t I hav e thi s dat e serve d th e foregoin g documen t o n th e person s identifie d belo wb ycausin g a cop yt o b e sen t b yelectroni cmail . RECIPIEN T Car l B . Nelso n Hershe l 1 . Kame n Da n Weis s Alexande rVa n de rBelle n Jonatha n B . Hil l Edwar d Faberma n Jeffre yManle y Howar d Kas s Benjami n T . Slocu m Joann e Youn g Davi d Kirstei n Malcol m L . Beng e Marshal l S . Sinic k Ji m Balloug h Kri s Ur s COMPAN Y America n Airline s Continenta l Airline s Delt a Ai rLines , Inc . Counse l fo rJetBlu e Counse l fo rFrontie r Unite d Airline s U S Airway s Counse l fo rSpiri t Counse l fo r fo rWorl d Airways , Inc . Counse l fo rAlask a Airline s Federa l Aviatio n Administratio n U.S . Departmen t o fStat e EMAI L carl . nelson(3>aa . co m hkamen@coair.co m dan.weiss@coair.co m sascha.vanderbellen@delta.co m ihill@dlalaw.co m efaberman@wrf.co m ieffrev.manlev@united.co m howar d kass@usairwavs.co m beniamin.slocum@usairwavs.co m ivounq@yklaw.co m dkirstein@vklaw.co m mlbenoe@zsrlaw.co m marshall.sinick@ssd.co m Jim.ballouqh@faa.ao v urskr@state.qo v 

## j -% %t*«J*J> Jennife rM . Nowa k 'Marc h 14,201 1