UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on December 13 , 20 1 1



### NOTICE OF ACTION TAKEN

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__________________ ______________________________________________________________________________ ________ This serves as notice to the public of the action described below, taken by the Department official indicated (no additional confirming order will be issued in this matt er).

Applicant : AEROLANE, LINEAS AEREAS NACIONALES DEL ECUADOR S.A. d/b/a LAN ECUADOR (LAN Ecuador)

Date s Filed: December 11, 2008, and November 14, 2011

Relief requested: Amendment of e xemption from 49 USC § 41301 to permit the app licant to engage in (1) scheduled foreign air transportation of persons, property, and mail from a point or points in Ecuador via intermediate points to Atlanta, Boston, Chicago, Dallas/Ft. Worth, Denver, Fort Lauderdale, Houston, Los Angeles, Miami, New Y ork, Newark, San Francisco, Seattle, Orlando, and Washington, D.C. ; (2) scheduled foreign air transportation of persons, property, and mail from a point or points in Ecuador via intermediate points to Charlotte, New Orleans, Philadelphia, Phoenix, and San Diego on a code

- sharing basis only; and (3) charter foreign air transportation of persons, property, and mail from points behind Ecuador, via Ecuador and intermediate points, to points in the United States and beyond. 1

D ate and citation of las t action: December 21, 2007 , in th ese D ocket s

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Applicant representative: Charles J. Simpson

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- 8660 DOT ana lyst: Brett D. Kruger 202

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Responsive pleadings: None.

DISPOSITION

Action: Approved. Action date: December 13 , 2011

Effective dates of authority granted: December 13 , 2011 , through December 13 , 201 2

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Basis for approval (bil ateral agreement/reciprocity): U.S.

- Ecuador Agreement

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Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our standard exemption conditions (attached).

Special conditions/Remarks: Under the aviation agreement between the United States and Ecuador, there are limitations on the points that may be served. Carriers designated by Ecuador are authorized to serve the following U.S. points: Miami, Orlando, Washington, New York, Chicago, Los Angeles, nine additional points to be selected by the Government of Ecuador, and five additional points to be selected by the Government of Ecuador for code

- share only services. At this time, Ecuador has selected the following points for own

- aircraft and/ or code

- share services: Dallas, Houston, Atlanta,

1 We note that LAN Ecuador requested amended charter authority consistent with the provisions of the Air Transport Agreement between the Government of the United States and the Government of the Republic of Ecuador. Accordingly, we will grant LAN

Ecuad or authority to engage in charter foreign air transportation of persons, property, and mail between any point or points in Ecuador and any point or points in the United States; and between any point or points in the United States and any point or p oints

in a third country or countries, provided that, except with respect to cargo charters, such service constitutes part of a contin uous operation, with or without a change of aircraft, that includes service to the homeland for the purpose of carrying local traf fic between the homeland and the United States. LAN Ecuador currently holds limited scheduled and charter exemption authority ( See Notice s of Action Taken, dated December 21, 2007, in Docket s DOT

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, respectively ), and w e note that the broad authority the applicant seeks here, and that we are granting here, subsumes LAN Ecuador’s currently held exemption authority. We therefore dismiss, as moot, LAN Ecuador’s December 11, 2008, application for renewal of those exemptions

.Boston, Seattl e, Fort Lauderdale, Denver, San Francisco, and Newark. Ecuador has selected the following points for code

share only services: New Orleans, Philadelphia, Phoenix, San Diego, and Charlotte. Effective July 1, 2012, the Government of Ecuador may select fiv e additional points in the United States for code

- share only services.

This authority shall not be construed as to grant LAN Ecuador authority to serve any point that is not properly selected

under the U.S.

- Ecuador agreement.

Action taken by: Paul L. G retch, Director, Office of International Aviation

________________________________________________________________________________________________________ Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) ou r action was consistent with Department policy; (2) the applicant was qualified to perform its proposed operations; (3) grant of the authority was consist ent with the public interest; and (4) grant of the authority would not constitute a major regulatory a ction under the Energy Policy and Conservation Act of 1975. To the extent not 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 regulati ons, 14 CFR §385.30, may file their petitions within seven (7) days after the date of issuance of this Notice. T his action was effective 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.go v

### 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 operatio ns, 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 co ncerning security, including, but not limited to, 14 CFR Parts 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 airport 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 Inspe ctor) to advise the I IR of its plans and to find out whether 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 contai ned in 14 CFR Part 205, and, prior to the commencement of any 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, insurance 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 Con vention;

(5) Conform to the airworthiness and airman competency 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 P art 203, concerning waiver of Warsaw Convention liability limits 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 proc eedings instituted against it in any court or other tribunal 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 ori gin, 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 Stat es. In this condition, the term "international air transportation" 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 dat a;

(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 terms, 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 not b e 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.

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