BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

Application of BRITISH AIRWAYS (BA) LIMITED For exemption authority pursuant to 49 U.S.C. § 40109 (U.S.-Europe) Docket DOT-OST-2012-0081

Application of BRITISH AIRWAYS (BA) LIMITED

For statement of authorization under 14 CFR Part 212

APPLICATION OF BRITISH AIRWAYS (BA) LIMITED Communications with respect to this document should be sent to:

Don H. Hainbach Garofalo Goerlich Hainbach PC 1200 New Hampshire Avenue NW Washington, D.C. 20036 Phone 202-776-3970 Fax 202-776-3975 dhainbach@ggh-airlaw.com Counsel for British Airways (BA) Limited

April 25, 2014

Notice: The applicant requests ex pedited treatment of this application. Counsel will poll U.S. carrier representatives and inform the Department of the results.BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

Application of BRITISH AIRWAYS (BA) LIMITED For exemption authority pursuant to 49 U.S.C. § 40109 (U.S.-Europe) Docket DOT-OST-2012-0081

Application of BRITISH AIRWAYS (BA) LIMITED

For statement of authorization under 14 CFR Part 212

APPLICATION OF BRITISH AIRWAYS (BA) LIMITED Pursuant to 49 U.S.C. § 40109 and Part 302 of the Department’s Regulations, British Airways (BA) Limited (“BA Limited”) hereby applies for renewal of its ex emption authority to engage in:

i. foreign scheduled and charter air transportati on of persons and property from any point or points behind any Member State of the European Union via any point or points in any Member State and via intermediate points to any point or points in the United States and beyond;

ii. foreign scheduled and charter air transportation of persons and property between any point or points in the United States and any point or points in any member of the European Common Aviation Area;

iii. foreign scheduled and charter cargo air trans portation between any point or points in the United States and any point or points;

iv. other charters pursuant to the prior approval requirements set forth in Part 212 of the Department’s Economic Regulations; and

v. transportation authorized by any additional route rights made available to European Community carriers in the future.2 BA Limited also requests renewal of its statemen t of authorization pursuant to section 212 of the Department’s regulations authorizin g it to operate its two UK-registered A318 aircraft pursuant to a wetlease agreement with British Airways Plc. BA Limited further requests an additional statem ent of authorization under 14 CFR Part 212 to the extent necessary to enable it to also display the US* designator code of US Airways, Inc. on flights operated by BA Limited to and from the United States. The exemption authority and statement of auth orization for which renewal is requested were initially granted on June 11, 2012 and are scheduled to terminate on June 11, 2014. BA Limited requests that its existing exemption authority and statement of authorization be renewed for an additional two-year period. By filing this application BA Limited is relying upon the automatic extension provision of the Administrative Procedure Act, 5 U.S.C. § 558(c), as implemented by 14 CFR Part 377, to continue its current exemption authority and statement of auth orization in effect pending Department action. When BA Limited applied for its initial authority in May 2012, it also requested statements of authorization to the extent necessary to enable it to display the IB* a nd AA* designator codes of Iberia Líneas Aéreas de España Sociedad Anónima Opera dora (“Iberia”) and American Airlines, Inc. (“American”). Those authorizations were granted on June 11, 2012 and May 9, 2013, respectively. Following the merger of US Airways Group, Inc. and AMR Corp. on December 9, 2013, US Airways and

American share the same ultimate corporate parent, American Airlines Group, Inc. and, pursuant to the codeshare agreement between American and British Ai rways, US Airways qualifies as an affiliate of American for the purposes of the existing codeshare arrangement. US Airways and American have elected to include US Airways in the already-exis ting codeshare arrangement with British Airways in

order to ensure a consistent re lationship between British Airways and both US Airways and American. Accordingly, BA Limited requests an additional stat ement of authorization to the extent necessary to3 enable it to display the US* code on the flights it operates to and from the United States pursuant to its wet-lease agreement with British Airways. 1 When the Department first granted exemption aut hority to BA Limited, it found that BA Limited was operationally and financ ially qualified to conduct the proposed services, and that it was substantially owned and effectively controlled in a manner consistent with the provisions of the U.S.-EU Open Skies Agreement. The Department also determined that gr ant of the requested exemption authority, as well as the requested codeshare authorizations, would be consistent with the U.S.-EU Agreement. Those determinations remain valid and also apply to the requested authorization to display the US* designator

code. Accordingly, BA Limited respectfully requests that the Department grant this application (1) for renewal of its existing exemption authority, (2) for re newal of its existing statement of authorization to operate wet-lease service for British Airways, and (3) fo r a new statement of authorization to the extent necessary to display the US* designator code on flig hts operated by BA Limited to and from the United States. BA Limited further requests that its exempti on authority and statement of authorization to operate wet-lease service for British Airways be granted for an additional two-year period and that its statement of authorization to display the US* code be granted for an indefinite period.

Respectfully submitted,

Don H. Hainbach Counsel for British Airways (BA) Limited April 25, 2014

1 US Airways has completed its review of the C odeshare Safety Audit of BA Limited conducted by American and the results of its review were submitted to the FAA on March 31, 2014.CERTIFICATE OF SERVICE I certify on this 25 th day of April, 2014 a copy of the foregoing Application for Exemption Authority has been served by electronic mail on the parties named below.

__________________________________ Vanessa C. Krasniewicz

robert.wirick@aa.com howard.kass@aa.com sascha.vanderbellen@delta.com sametta.c.barnett@delta.com dan.weiss@united.com steve.morrissey@united.com urskr@state.gov cristinasa@state.gov john.s.duncan@faa.gov