BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Joint Application of IBERIA LÍNEAS AÉREAS DE ESPAÑA SOCIEDAD ANÓNIMA OPERADORA (IBERIA)

and

FINNAIR OYJ

for blanket Statements of Aut horization under 14 C.F.R. Part 212 (Reciprocal Codesharing) DOT-OST-2014-______

JOINT APPLICATION OF IBERIA LÍNEAS AÉREAS DE ESPAÑA SOCIEDAD ANÓNIMA OPER ADORA AND FINNAIR OYJ FOR STATEMENTS OF AUTHORIZATION

Don H. Hainbach Jason E. Maddux Garofalo Goerlich Hainbach PC 1200 New Hampshire Ave, NW, Suite 590 Washington, DC 20036 (202) 776-3970 dhainbach@ggh-airlaw.com jmaddux@ggh-airlaw.com Counsel for Iberia Anita M. Mosner Jennifer M. Nowak Holland & Knight, LLP 800 17 th Street, NW, Suite 1100 Washington, DC 20006 (202) 419-2604 anita.mosner@hklaw.com Counsel for Finnair OYJ

April 10, 2014 NOTICE: Any person who wishes to support or oppose this application may file an answer on or before April 21, 2014. However, the Joint Applicants request expedited treatment of this application. The Jo int Applicants will poll the U.S. carrier representatives served with this application an d notify the Department promptly of the results of the poll.BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Joint Application of IBERIA LÍNEAS AÉREAS DE ESPAÑA SOCIEDAD ANÓNIMA OPERADORA (IBERIA)

and

FINNAIR OYJ

for blanket Statements of Aut horization under 14 C.F.R. Part 212 (Reciprocal Codesharing) DOT-OST-2014-______

JOINT APPLICATION OF IBERIA LÍNEAS AÉREAS DE ESPAÑA SOCIEDAD ANÓNIMA OPER ADORA AND FINNAIR OYJ FOR STATEMENTS OF AUTHORIZATION Iberia Líneas Aéreas de España Sociedad Anónima Operadora (“Iberia”) and Finnair OYJ (“Finnair”) (collectively, the “Carriers”) join tly apply for issuance of blanket statements of

authorization under 14 C.F.R. Part 212 to the extent necessa ry to implement codesharing arrangements provided for in the Code Share Agreement between Ib eria and Finnair. Iberia and Finnair request authority to codeshare between points in the United States and points in the European Union (EU), both non-stop and via inte rmediate points, and behind and beyond to third country points. The Carriers request expedited tr eatment for this Joint Application and that the requested statements of au thorization be granted for an indefinite period. In support of this Join t Application, the Carrie rs submit the following:

1. Iberia requests a statement of authoriza tion for blanket codeshare authority to display the Finnair AY* designator code on any segment or segments operated by Iberia on the following routing: (i) from any poi nt or points behind an y Member State of the European Union,2 via any point or points in any Memb er State and via intermediate poi nts, to any point or points in the United States and beyond and (ii) between a ny point or points in th e United States and any point or points in any member of the European Common Aviation Area. The specific routes that are initially covered by the above codesharing arrangement are described in Appendix A.

2. Finnair requests a statement of authoriz ation for blanket codeshare authority to display the Iberia IB* designator code on any se gment or segments operated by Finnair on the following routing: (i) from any poi nt or points behind an y Member State of the European Union, via any point or points in any Memb er State and via intermediate poi nts, to any point or points in the United States and beyond and (ii) between a ny point or points in th e United States and any point or points in any member of the European Common Aviation Area. The specific routes that are initially covered by the above codesharing arrangement are described in Appendix B.

3. Iberia currently holds all underlying author ity necessary to opera te these flights. Iberia, a carrier of Spain, currently operates servic e to the United States pu rsuant to its foreign air carrier permit issued by the Department by Order 2008-6-23, in Dock et DOT-OST-2008-0043. That foreign air carrier permit authorizes Iberia to operate, inter alia : Foreign scheduled and charter air trans portation of persons, property and mail from any point or points behind any Me mber State of the European Union, via any point or points in any Me mber State and via intermed iate points, to any point or points in the United States and beyond; and Foreign scheduled and charter air trans portation of persons, property and mail between any point or points in the Unite d States and any point or points in any member of the European Common Aviation Area.

4. Finnair also currently holds all underlying authority necessary to operate these flights. Finnair, a carrier of Finland, currently operates service to the United States pursuant to3 its foreign air carrier permit issued by the Department by Order 2008-9-30, in Docket DOTOST-1997-3006. That foreign air carrier pe rmit authorizes Finnair to operate, inter alia : Foreign scheduled and charter air trans portation of persons, property, and mail from any point or points behind any Me mber 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; and Foreign scheduled and charter air trans portation of persons, property and mail between any point or points in the Unite d States and any point or points in any member of the European Common Aviation Area.

5. Aviation relations between the United St ates and Spain and Finland are governed by the Air Transport Agreement between the Un ited States of America and the European Community and Its Member States (“U.S.-EU Ag reement”). The U.S.-EU Agreement expressly permits designated airlines of one Party to “enter into cooperative marketing arrangements, such as blocked-space or code-sharing arrangements, with: a) any airline or airlin es of the Parties...” (U.S.-EU Agreement, Article 10(7))

6. The blanket codeshare authorizations reque sted herein are consistent with the U.S.-EU agreement and, therefore, with the public interest. Blanket authorizations are in the public interest because they enable codeshare pa rtners to develop the full range of services permitted under applicable air services agreements. The services contemplated by Iberia and Finnair will provide a mo re efficient use of capacity in the marketplace and will help maximize the service options available to the traveling and shipping public.

7. The requested authorities also are consis tent with the Department’s policy of granting blanket rights to other Eur opean codeshare partnerships. See, e.g. , Department Action, DOT-OST-2002-13958, January 9, 2 009 (Air France/Alitalia); De partment Action, DOT-OST-4 2010-0175, July 30, 2010 (Austrian/Lufthansa); and Notice of Action Taken, DOT-OST-2010- 0199, August 24, 2010 (Aer Lingus/Spanair).

8. The Carriers hereby provide blanket notific ation of their intent to engage in codeshare services to open skies points as desc ribed above. The Carriers agree to notify the Department thirty (30) days in advance of any new codeshare operati on to non-open skies points and to notify the Department of any codeshare operat ion the carriers have agreed to discontinue.

9. The Carriers agree to accept the conditi ons normally applicable to blanket codeshare authority such as requested herein. The carriers also will comply with all other applicable Department regulations and policies, including the codesh are disclosure regulations of Part 257. The Carriers request that the statements of authorization be issued for an indefinite period.

10. The Carriers request that the Depart ment act upon this application as expeditiously as possible and, to the extent ne cessary, request a waiver of the 45-day advance filing requirement specified in Part 212.

WHEREFORE, Iberia and Finnair submit that grant of the authority requested here would be consistent with the public interest an d respectfully request that the Department grant

them statements of authorization to enable th em to engage in reciprocal blanket open skies codesharing to the full extent authorized by the U.S.-EU Agreement in conjunction with foreign air transportation of persons, property, and mail, and such other additional relief as the Department may deem appropriate. Iberia a nd Finnair further request that the requested authority be granted for an i ndefinite period, consistent with the Department’s practice.Appendix A

Iberia Codeshare on Finnair Operated Flights

ROUTING Helsinki – New York (JFK) Helsinki – MiamiAppendix B

Finnair Codeshare on Iberia Operated Flights

ROUTING

Madrid – Miami Madrid – Boston Madrid – Los Angeles Madrid – New York (JFK) Madrid – Chicago (ORD)