UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on April 20, 2011



### NOTICE OF ACTION TAKEN

-- DOCKET DOT

- O ST

- 20 1 1

- 0049

_____________________________________________________________________________________________________________________________ ___ 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 matter).

Joint Applicant s : Air Canada, TACA International Airlines, SA. (TACA) & Lineas Aereas Costarricenses S.A. (LACSA) 1

Date Filed: March 14, 2011

Relief requested :

Air Canada

- Blanket statement of authorization under 14 CFR Part 212 to the extent necessary to permit A ir Canada to display the TA* designator code of TACA on any current or future flights operated by Air Canada between points in Canada on the one hand, and points in the Un ited States on the other hand that connect with TACA’s Central American

services at any of TACA’s current or future U.S. gateways. 2

Air Canada

– Blanket statement of authorization under 14 CFR Part 212 to the extent necessary to permit Air Canada to displa y the LR* designator code of LACSA on flights operated by Air Canada between points in Canada on the one hand, and points in the United States on the other hand that connect with LACSA’s Central America services at any of LACSA’s current or future U.S. gat eways. 3

TACA

- Blanket statement of authorization under 14 CFR Part 212 to the extent necessary to permit TACA to display the AC* designator code of Air Canada on flights operated by TACA between points in Costa Rica, Guatemala, El Salvador, Nicaragua, and Honduras on the one hand, and points in the United States and the other hand. 4

LACSA

- Blanket statement of authorization under 14 CFR Part 212 to the extent necessary to permit LACSA to display the AC* designator code of Air Canada on flights operated by LACSA between points in Costa Rica, Guatemala, El Salvador, Nicaragua, and Honduras on the one hand, and points in the United States on the other hand. 5

If renewal, date and citation of last action: New authority

Applicant representative s : Air Canada

- Anita M. Mosner & Jennifer Nowark (202) 419

- 2604

TACA & LACSA

– Charles F. Donley (202) 626

- 6840 DOT Analyst: Shelita A. Johnson (202) 366

- 1226

Responsive pleadings: None filed

DISPOSITION

Action: Approved Action date : April 20, 2011

1 Air Canada notes that some flight operations under its requested authority may be carried out by Jazz Aviation (Jazz) LP, car rying Air Canada’s code. We previously approved this code

- share arrangement on February 25, 2009, in Docket DOT

- OST

- 2009

- 0025.

2 TACA will not carry local traffic between the U nited States and Canada.

3 LACSA will not carry local traffic between the United States and Canada

. 4 Air Canada will not carry local traffic between the United States and affected Central American points.

5 A ir Canada will not carry local traffic between the United States and affected Central American points.Effective dates of statement s of authorization granted: April 20, 2011

– and will remain in effect indefinitely, subject to

the conditions below.

Spe cial conditions/Partial grant/Denial basis/Remarks:

The code

- share operations authorized here are subject to the following conditions:

a) The statement s of authorization will remain in effect only as long as (i) Air Canada, TACA and LACSA continue to hold the necessary underlying authority to operate the code

- share services at issue, and (ii) the code

- share agreement providing for the code

- share operations remains in effect.

(b) Air Canada, TACA and LACSA must promptly notify the Department (Office o f International Aviation) if the code

share agreement providing for the code

- share operations is no longer effective or the carriers decide to cease operating any or all of the approved code

- share services. We expect this notification to be received withi n 10 days of such non

effectiveness or of such decision. Such notice should be filed in Docket DOT

- OST

- 2011

- 0049.

(c) Air Canada, TACA and LACSA must notify the Department no later than 30 days before they begin any new code

share service under the cod e

- share services authorized here. Such notice shall identify the market(s) to be served and the date on which the service will begin. Such notices should be filed in Docket DOT

- OST

- 2011

- 0049.

(d) The codesharing operations conducted under this authori ty must comply with 14 CFR Part 257 and with any amendments to the Department’s regulations concerning codeshare arrangements that may be adopted. Notwithstanding any provisions in the contract between the carriers, our approval here is expressly conditio ned upon the requirements that the subject foreign air transportation be sold in the name of the carrier holding out such service in computer reservation systems and elsewhere; that the carrier selling such transportation (i.e ., the carrier shown on the ti cket) accept responsibility for the entirety of the codeshare journey for all obligations established in its contract of carriage with the

passenger; and that the passenger liability of the operating carrier be unaffected; and

(e) The authority granted here is specifically conditioned so that neither Air Canada, TACA nor LACSA shall give any force or effect to any contractual provisions between themselves that are contrary to these conditions.

We may amend, modify, or revoke the authority granted at an y time without hearing at our discretion.

Action taken by: Paul L. Gretch, Director

Office of International Aviation

_________________________________________________________________________________________________ Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) the applicant is qualified to perform the proposed operations; (2) our action was consistent with Department policy; (3) grant of the authority was consistent with the public interest; and ( 4) grant of the authority would not constitute a major regulatory action 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 regulations, 14 CFR § 385.30, may file their petition s within seven (7) days after the date of issuance of this Notice. This 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.govAPPENDIX A

INITIAL CODESHARE POINTS

1. The AC* Code will be displayed on flights operated by TACA between the following city pairs:

LAX

- SAL

MIA

- SAL

MIA

- GUA

2. The AC* Code will be displayed on flights operated by L ACSA between the following city pairs:

LAX

- SAL

LAX

- GUA

MIA

- SJO

3. The TA* code or the LR* code will be displayed on flights operated by Air Canada between the following city pairs:

LAX

- YYC MIA

- YUL

LAX

- YVR MIA

- YYZ

MCO

- YYZ DFW

- YYZ