BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. ) Joint Application of ) ) KOREAN AIR LINES CO., LTD. ) DOT-OST-2014- ) and ) ) LAN PERU S.A. ) ) For Blanket Statements ofAuthorization Pursuant ) To 14 C.F.R. Part 212 (Code-Sharing U.S.-Korea ) and U.S.-Peru Points) )

JOINT APPLICATION FORBLANKET STATEMENTS OF AUTHORIZATION Communications withrespect to this document shouldbe sent to: William H. Callaway, Jr. Zuckert, Scoutt & Rasenberger L.L.P. 888 17th Street, NW Suite 700 Washington, D.C. 20006 (202) 298-8660 (phone) (202) 342-0683 (fax) whcallaway@zsrlaw.com Counsel to Korean Air Lines Co., Ltd.

September 11, 2014 Charles F. DonleyII Squire Patton Boggs (US) LLP 1200 19th Street, N.W. Suite 300 Washington, D.C. 20036 (202) 626-6840 (phone) (202) 626-6780 (fax) charles.donley@squirepb.com Counsel to LAN Peru S.A.

NOTICE: Answers to this Joint Application ordinarily would be due by September 22, 2014. Korean Air Lines Co., Ltd. and LAN Peru S.A. are requesting expedited processing ofthis Joint Application and will poll the air carrier representatives served with this Joint Application and notify the Department ofthe results.BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. ) Joint Application of ) ) KOREAN AIR LINES CO., LTD. ) ) and ) ) LAN PERU S.A. ) ) For Blanket Statements ofAuthorization Pursuant ) To 14 C.F.R. Part 212 (Code-Sharing U.S.-Korea ) and U.S.-Peru Points) ) DOT-OST-2014-

JOINT APPLICATION FOR BLANKET STATEMENTS OF AUTHORIZATION

Korean Air Lines Co., Ltd. ("Korean") and LAN Peru S.A. ("LAN Peru") (together, the "Joint Applicants") herebyrespectfully apply under 14 C.F.R. Part 212 and Subpart C ofthe Department's regulations for blanket statements ofauthorization in order to engage in codesharing to the full extentpermittedunder the open skies agreements between the United States,

onthe one hand, and the Republic ofKorea and Peru, on the other, as describedbelow. In support ofthis Joint Application, the Joint Applicants state as follows: 1. The Joint Applicants recently entered into a code-sharing agreement (the "CodeSharing Agreement") and intend to initiate the code-sharing services which are the subject ofthis Joint Application on or about October 15, 2014. The initial code-share routes are set forth on Appendix A to this Joint Application. The Joint Applicants request prompt approval ofthis Joint Application so that they mayinitiate the marketing and sale oftheir code-share services as soon

as possible. Inthis regard, the Joint Applicants ask that the Department waive its requirementJoint Application ofKorean Air and LAN Peru for Blanket Statements ofAuthorization Docket DOT-OST-2014- September 11, 2014; Page 2 under 14 C.F.R. § 212.10(d)(2) that requests for statements ofauthorizationbe filed at least 45 days in advance ofthe proposed date ofimplementation. 2. Korean respectfully requests a blanket statement ofauthorization under 14 C.F.R. Part 212 for Korean to displaythe LA* designator code on flights operated by Korean in conjunction with foreign air transportation ofpersons, property andmail betweenpoints behind the Republic ofKorea via the Republic ofKorea and intermediate points to a point or points in the United States andbeyond. 1 3. LAN Peru respectfullyrequests a blanket statement ofauthorization under 14 C.F.R. Part 212 for LAN Peru to the KE* designator code on flights operated byLAN Peru in conjunction with foreign air transportation ofpersons, property and mail betweenpoints behind Peru via Peru and intermediate points to a point orpoints inthe United States andbeyond. 4. Under this code-sharing arrangement described herein, the Joint Applicants will carry traffic ofthe other carrierbetween the Republic ofKorea and Peru only, and the codesharing services will not be available to either carrier's passengers originating at or destined for points inthe United States; points inthe United States will only serve as a transit point at which traffic between the Republic ofKorea and Peru will connect. 5. The Joint Applicants hold the necessary underlying authorities from the Department in support ofthe proposed code-share services. Korean holds a foreign air carrier permit authorizing it to engage in foreign air transportation ofpersons, property andmail, from points behind the Republic ofKorea via the Republic ofKorea and intermediate points to a point LAN Peru holds an exemption under 49 U.S.C. § 40109 and a statement ofauthorization under 14 C.F.R. Part 212 permitting it to use the common trade name LAN and display the LA* designator code for its services in foreign air transportation to and from the United States. See Notice ofAction Taken in Docket DOT-OST-2005-21121 (Oct. 25, 2011) (timelyrenewal pending).Joint Application ofKorean Air and LAN Peru for Blanket Statements ofAuthorization Docket DOT-OST-2014- September 11, 2014; Page 3

orpoints in the United States and beyond. See Order 2003-11-20 (Nov. 24, 2003). LAN Peru holds an exemption issued under 49 U.S.C. § 40109 authorizing it, inter alia, to engage in scheduled foreign air transportation ofpersons, property and mail from points behind Peru via Peru and intermediate points to a point orpoints in the United States and beyond. See Notice of Action Taken in Docket OST-2008-0271 (Oct. 9, 2008) (timelyrenewal pending). 6. The requested code-share authorities are fully consistent with andprovided for under the "Open Skies" air transport agreements currently in place between the United States, on the one hand, and each ofthe Republic ofKorea and Peru. See Air Transport Agreement between the Government ofthe United States ofAmerica and the Government ofthe Republic of Korea (executed Jun. 9, 1998), at Article 8, paragraph 7; Air Transport Agreement between the Government ofthe United States ofAmerica and the Government ofthe Republic ofPeru (executed Jun. 10, 1998), at Article 8, paragraph 7. 7. Issuance ofthe blanket statements ofauthorization sought herein is consistent with the public interest. Indeed, as the Department itselfhas long recognized: Increased international code sharing and other cooperative arrangements can benefit consumers byincreasing international service options and enhancing competition between carriers, particularly for traffic to or from cities behind major gateways. By stimulating traffic, the increased competition and service options should expand the overall international market and increase overall opportunities for the aviation industry.2 8. Moreover, the proposed services will enable the Joint Applicants to provide additional single carrier service and, in the process, enhance competition andbenefit international travelers and shippers.

2 Statement ofUnited States International Air Transportation Policy, 60 Fed. Reg. 21841 (May 3, 1995).Joint Application ofKorean Air and LAN Peru for Blanket Statements ofAuthorization 

### Docket DOT-OST-2014- September 11, 2014; Page 4 9. The Joint Applicants agree to accept the standard conditions typically applicable to code-share authority such as that requested in this Joint Application. The Joint Applicants will conduct all oftheir code-share operations in compliance with the requirements of 14 C.F.R. Part 257 regarding the disclosure ofcode-sharing arrangements to consumers. 10. The Joint Applicants will comply with the Department's standard 30-day advance notice requirementprior to the initiation ofany future code-share operations under the blanket statements ofauthorization sought herein. 11. The Joint Applicants ask that the blanket statements ofauthorization requested hereinbe granted for an indefinite period, so long as the Code-Share Agreement continues in effect, consistent with the Department's practice inprevious code-share proceedings. Should the Code-Share Agreement cease to be effective, the Joint Applicants will notify the Department according!y. 12. The Joint Applicants request expeditedprocessing ofthis Joint Application in order to facilitate the initiation ofthe proposed code-share services on or about October 15, 2014, and, in this regard, they will be polling the carrier representatives listed on the certificate ofservice accompanying this Joint Application and will notify the Department ofthe results.Joint Application ofKorean Air and LAN Peru for Blanket Statements ofAuthorization Docket DOT-OST-2014- September 11, 2014; Page 5 WHEREFORE, based on the foregoing, Korean and LAN Perurespectfullyjointly request blanket statements ofauthorization to fully implement the code-share arrangement described herein. Korean and LAN Peru further request that the Department grant such other reliefas it considers consistent with this Joint Application and the public interest.

Respectfully submitted,

# CJ~*ca~~s~Z, William H. Callaway, Jr. Zuckert, Scoutt & Rasenberger L.L.P. 888 17th Street, NW Suite 700 Washington, D.C. 20006 (202) 298-8660 (phone) (202) 342-0683 (fax) whcallaway@zsrlaw.com

Counsel to Korean Air Lines Co., Ltd.

September 11, 2014

# d.~ r\.AJ.. 

# J;"

# ~~**'!(~** Charles F. DonleyII 

# "'llct.. Squire Patton Boggs (US) LLP 1200 19th Street, N.W. Suite 300 Washington, D.C. 20036 (202) 626-6840 (phone) (202) 626-6780 (fax) charles.donley@sguirepb.com

Counsel to LAN Peru S.A.Appendix A

1. Display ofthe LA* Designator Code on Korean Air Operated Flights Routing: From/To Seoul, Republic ofKorea (ICN): Los Angeles, California (LAX) 2. Display ofthe KE* Designator Code on LAN Peru Operated Flights Routing: From/To Lima, Peru (LIM): Los Angeles, California (LAX)CERTIFICATE OF SERVICE I hereby certify that I caused a copy ofthe foregoing Joint Application ofKorean Air and LAN Peru for Blanket Statements ofAuthorization to be served, this 11th day ofSeptember, 2014, via email transmission, on the following persons: howard.kass@aa.com robert.wirick@aa.con1 sascha.vanderbellen@delta.com sametta.c.bamett@delta.com sllunsford@fedex.com sharon.pasley@fedex.com gbleopard@fedex.com perklnann@cooley.com (Counsel for Hawaiian Airlines) jhill@cooley.com (Counsel for Hawaiian Airlines) kevin.montgo1nery@polaraircargo.con1 peter.beckett@polaraircargo.com dkirstein@yklaw.com (Counsel for Spirit Airlines) jyoung@yklaw.com (Counsel for Spirit Airlines) dan.weiss@united.com gmurphy@crowell.co1n (Counsel for United Airlines) anita.mosner@hklaw.com (Counsel for United Parcel Service) iennifer.nowak@hklaw.com (Counsel for United Parcel Service) david.christofano@dot.gov robert.finamore@dot.gov brett.kruger@dot.gov iohn.s.duncan@faa.gov info@airlineinfo.con1

Bryant Templeton