BEFORETHEDEPARTMENTOFTRANSPORTATIONWASHINGTON,D.C.Inthematteroftheapplicationof)VRGLINHASAEREASS.A.D/B!AGOL)foranexemptionfrom49U.S.C.§41301)DocketDOT-OST-2010-APPLICATIONFOREXEMPTIONCommunicationswithrespecttothisdocumentshouldbeaddressedto:CharlesF.DonlevIISquire,Sanders&DempseyL.L.P.1201PennsylvaniaAvenue,N.W.Washington,D.C.20004(202)626-6840phone(202)626-6780faxcdon1eyssd.comCounseltoVRGLinhasAereasS.A,d/b/aGolDATED:April13,2010BEFORETHEI)EPARTMENTOFTRANSPORTATIONWASHINGTON,D.C.InthematteroftheapplicationofVRGLINHASAEREASS.A.D/B/AGOL)foranexemptionfrom49U.S.C.§41301DocketDOT-OST-2010--APPLICATIONFOREXEMPTIONVRGLinhasAereasS.A.d/b/aGol(“Gol”),pursuantto49U.S.C.40109,herebyrequestsanexemptionfrom49U.S.C.41301and.totheextentnecessary,fromanyotherprovisionsofTitle49andtheEconomicRegulationsoftheDepartmentofTransportation(Department”)topermitGoltotransportpersons.propertyandmailunderthedesignatorcodeofDeltaAirLines.Inc.(“Delta”)(i)betweenpointsinBrazil;and(ii)beyondBraziltoanypointorpoints.GolrequeststhatanyexemptiongrantedbytheDepartmentpursuanttothisapplicationremainineffectforaperiodofatleastoneyear.GolintendstocommencecodeshareservicewithDeltaassoonasallnecessarygovernmentapprovalsareobtained.Infurthersupportofitsapplication,Golstatesasfollows:1.TheApplicantGolisoneofthelargestlow-costlow-fareairlinesintheworldandtheonlylow-costlow-tareairlinepro\idingfrequentserviceonroutesconnectingalloff3razilsmajorcities.andfromBraziltomajorcitiesinSouthAmerica.WithitsvotingandstandardizedticetofBoeingGo!andDeltaareseparateIappl\ingforastatementofauthorizationandanexemption.respectielk.permittingthemtoimplementtheircodesharearrangement.ApplicationofVRGLinhasAereasS.A.d/h’aGolDocketDOT-OST-2010-April13.2010737aircraft,GolservesthelargestnumberofdestinationsofanyairlineintheBrazilianairtransportationmarket,Sincethebeginningofoperationsin2001.Gol’saffordable,reliableandsimpleserviceanditstcusonmarketsthatwereeitherunderservedordidnothavealower-farealternativehaveledtoastrongawarenessofGol’sbrandandarapidincreaseinitsmarketshare.Golwasthefirstcompanytointroducesuccessfullylow-costcarrierindustrypracticesandtechnologiesinLatinAmerica.Golhasadiversifiedrevenuebase,withcustomersrangingfrombusinesspassengerstoleisurepassengerstravelingthroughoutBrazilandtootherSouthAmericandestinations.Gol’sstrategyistoincreasemarketsizebyattractingnewpassengersthroughitsconsolidatedflightnetwork,amodernaircraftfleet,targetedmarketinganditsloyaltyprogramSmiles,thelargestloyaltyprograminSouthAmericawithmorethansixmillionmembers.Goloperatesmorethan800dailyflightsto59destinationsconnectingthemostimportantcitiesinBrazilaswellaskeydestinationsinArgentina,Bolivia,Chile,Colombia,Paraguay.UruguayandVenezuela.Gol’sfleet,whichisoneofLatinAmerica’slargestandyoungest,consistsofnearly120Boeing737-300,737-700NOand737-800NGaircraftwithanaverageageof6.8years.PlanscallfortheacquisitionofadditionalaircraftandphasingouttheB737-300aircraftinfavorofNextGenerationB737-700and737-800aircraft.AsofJune30,2009,Golhad99firmpurchaseordersremainingwithdeliveriesscheduleduntil2016.andpurchaseoptionsfor40additionalB737NOaircraft.Gol’sheadquartersarelocatedinSaoPaulo.Gol’sprincipalbusinessofficeislocatedatthefollowingaddress:ApplicationofVRGLinhasAereasS.A.d/b/aGolDocketDOT-OST-2010-April13,2010VRGLinhasAereasS.A.d/h/aGolPracaComteLinneuGornes.SNPortaria3JardimAeroportoCEP:04626-020.SaoPaulo,SP.BrazilGolisorganizedandexistsunderthelawsofBrazil.GolisacitizenofBrazilandissubstantiallyownedandeffectivelycontrolledbyBraziliancitizens.TheDepartmenthaspreviouslyfoundGoltobeacitizenofBrazil.22.TheProposedServiceUnderthecodeshareagreementbetweenGolandDelta,Golwilloperatewithitsaircraftandcrewsflights(i)betweenpointsinBraziland(ii)beyondBraziltothird-countrypointsonwhichGolwilldisplayDelta’stwo-letterdesignatorcode.Gol’sdomesticBrazilandBrazilthird-countryflightswillconnectwithDelta’sU.S-BrazilflightsforthepurposeoftransportingDelta’sU.S.-originatingandU.S.-destinedtraffic.Undertheauthoritysoughtinthisapplication.GolwillnotsellseatsinitsnamefortraveltoorfromtheUnitedStatesandwillnotoperateitsaircrafttoanyU.S.point.GolthereforerequestsanexemptionpermittingGoltoengageinscheduledforeignairtransportationforthepurposeoftransportingpersons,propertyandmailunderDelta’sdesignatorcodebetweenpointsinBrazil,andbeyondBraziltoanypointorpoints.3AllcodeshareflightswillbemarketedinaccordancewiththeDepartment’sregulationoncodesharingcontainedin14C.F.R.257.IFitnessGol’soperationsareauthorizedandregulatedbytheGovernmentofBrazil.BrazilisacontractinStatetotheConventiononInternationalCivilAviation(ChicagoConvention”)andVoiice014c/ionTaken.\larch4.2010.DocketDOT-OST-2010-0008Initialcodesharemarketsareidentifledinthejointapplicationbeingtiledseparatel\byGotandDelta.ApplicationofVRGLinhasAereasS.A.d/b/aGolDocketDOT-OST-2010-April13.2010observesallapplicableICAOstandards.Gol’sBrazilianlicensewassubmittedtotheDepartmentpreviously.4ThislicenseisvalidforanindefiniteperiodandrepresentsalloftheauthorityGolrequiresfromtheBrazilianGovernmenttoprovidetheservicedescribedherein.TheequipmentutilizedtooperatethecodeshareserviceisandwillcontinuetobemaintainedbyGol.AllmaintenanceonGol’saircraftisperformedinaccordancewithprogramsthatcomplywiththeprovisionsofJCAOPilotsandAirmenAnnexes1.6(Part1)and7.OnFebruary9,2010,Delta’scompliancestatementonGol’sIOSAcodesharesafetyauditwaspresentedtotheFederalAviationAdministration.GolhaspreviouslyfiledwiththeDepartmentitsinsurancecertificate,Warsawagreement.andfinancialstaternents.TheDepartmenthasfoundGoltobeoperationallyandfinanciallyfittoperformthetypeofserviceproposedinthisapplication.64.PublicInterestFactorsServicebetweentheUnitedStatesandBrazilisgovernedbytheAirTransportAgreementbetweenthetwocountriessignedonMarch21,1989,asamended(“Agreement”).InaccordancewithAnnexI,SectionI,totheAgreement,BrazilianandU.S.carriersmayengageincodeshareoperations:Inoperatingorholdingouttheauthorizedservicesontheagreedroutes.anydesignatedairlineofoneContractingPartymayenterintocooperativemarketingarrangementssuchasblocked-space,codesharing,leasingoraircraftinterchangearrangementswith:A.anairlineorairlinesofeitherContractingParty[.]Docket[)OT-OST201O-0008Id.4iioj7ahiiDejetDOIOS121)100008\htch4200ApplicationofVRGLinhasAereasS.A.d/b.!aGo!DocketDOT-OST-2010-_____April13.2010providedthatallparticipantsinsucharrangements1)holdtheappropriateauthorityand2)meettherequirementsnormallyappliedtosucharrangements.ThecodeshareservicesproposedbyGolarefullyconsistentwiththebilateral,astheDepartmenthasrecognizedinothercasesinvolvingBrazilianandU.S.carriers.7TheUnitedStateshasconsistentlyrecognizedthattheinclusionofaserviceinabilateralagreementtowhichtheUnitedStatesisapartyandthesubmissionofanapplicationbyaqualifiedforeigncarrierforsuchservicesatisfyallrelevantpublicinterestrequirementsforgrantofexemptionauthority.85.EnvironmentalConsiderationsGo!submitsthatitsapplicationraisesnoenvironmentalorenergyissues.AllofGoFsoperationsunderthisexemptionwillbeconductedinaccordancewithapplicablenoiseabatementrequirementsatpointslocatedoutsidetheUnitedStates.Similarly,sinceapprovalissoughtonlytodisplayDelta’sdesignatorcodeonGol’sexistingdomesticBrazilandBrazilthird-countryflights,approvalofthisapplicationwillnotresultinanear-termincreaseinfuelconsumptionoftenmilliongallonsormore.WHEREFORE.VRGLinhasAereasS.A.d/b/aGolrespectfullyrequeststhatitbegrantedanexemptionfrom49U.S.C.41301totheextentnecessarytopermitGoltoprovidescheduledforeignairtransportationofpersons.propertyandmailasmorefullydescribedherein.orsuchotherreliefastheDepartmentdeemsnecessaryandproper.Seeg.VoticeofAction7Aken,DocketDOT-OST-2010-0008,March4,2010,authorizingAmerican-Golcodesharing:Var/ceofActionTaken,DocketDOT-OST-2007-0012,October24,2007,authorizingUnited-TAMcodesharing.See.S.RH.\o.96-329.at4(l979.reprintedin1980U.S.C.Q.A.N.53,57(ThenegotiationofabilateralagreementitselfrepresentsadeterminationbtheGoernmentoftheUnitedStatesthattheerantofrouteauthoritprovidedforunderthebilateralisinthepub1icinterest.”.

# Application

of VRG Linhas

Aereas

S.A.

d/b/a

Gol Docket DOT-OST-201

0- April

13, 2010

Respectfully

submitted. 

# I Charles

F. Donley

II1 

# Squire,

Sanders

& Dempsey

L.L.P, 1201 Pennsylvania

Avenue,

NW. Washington.

D.C.

20004 (202) 626-6840

phone (202) 626-6780

fax cdon1ey:

ssd,corn Counsel

to VRG Linhas

Aereas

S.A.

d!b/a Gol DATED:

April

13. 2010CERTIFICATEOFSERVICEIherebycertifythatonecopyoftheforegoingapplicationofVRGLinhasAereasS.A.d!b/aGolhasthisdaybeenservedoneachofthefollowingindividualsviae-mail./*



# / r—27Y.ctCharlesF.DonleyIIDATED:April13.2010sascha.vanderbe11en’ade1ta.com;sametta.c.barnett(delta.com;jeff.morgan(de1ta.comman1ex.coihowardkass(usairways.com:benjamin,slocumusairways.comhkamen’acoair.com:dan.weisslcoair.com:rbkeiner’dcrowel1.com;mrosia(acrowell.corncarl.nelson(aaa.cornesta.rosenherg’7dot.govbrian.hedberdot.govbverlvjristate.govgeoree.we1lingtonIdot.govaa.eovirnke.orr(airlineninfo.com