UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on February 14 , 20 1 4



### NOTICE OF ACTION TAKEN

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__________________ ______________________________________________________________________________ ________ 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 matt er).

Applicant : AEROLANE, LINEAS AEREAS NACIONALES DEL ECUADOR S.A. d/b/a LAN ECUADOR (LAN Ecuador)

Date Filed: January 22, 2014

Relief requested: Renewal and amendment 1 of e xemption from 49 USC § 41301 to permit the applicant to en gage in (1) scheduled foreign air transportation of persons, property, and mail from a point or points in Ecuador via intermediate points to Atlanta, Boston, Chicago, Dallas/Ft. Worth, Denver , Fort Lauderdale, Houston, Los Angeles, Miami, New York, Newark, San Francisco, Seattle, Orlando, and Washington, D.C. ; (2) scheduled foreign air transportation of persons, property, and mail from a point or points in Ecuador via intermediate points to Charlotte, New Orleans, Philadelphia, Phoenix, San Diego , Las Vegas , Portland, Raleigh

- Durham, San Juan, and Tampa on a code

- sharing basis only; 2 and (3) charter foreign air transportation of persons, property, and mail between any point or points in Ecuador and any point or points in the United States; and between any po int or points in the United States and any point or points in a third country or countries, provided that, except with respect to cargo charters, such service constitutes part of a continuous operation, with or without a change of aircraft, that includes s ervice to the homeland for the purpose of carrying local traffic between the homeland and the United States.

D ate and citation of last action: January 24 , 20 1 3 , in th ese D ocket s

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Applicant representative: Robert P. Silverberg

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Responsive pleadings: None.

DISPOSITION

Action: Approved. Action date: February 14 , 2014

Effective dates of authority granted: February 14 , 2014 , through February 14 , 2015

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Basis for approval (bil ateral agreement/reciprocity): U.S.

- Ecuador Air Transport Agreement of 1986, as modified.

Except to the extent exempted/waived, this authority is subject to the terms, conditi ons, and limitations of our standard exemption conditions (attached).

Special conditions/Remarks: Under the aviation agreement between the United States and Ecuador, there are limitations on the points that may be served for scheduled combination servi ces . Carriers designated by Ecuador are authorized to serve the following U.S. points: Miami, Orlando, Washington, New York, Chicago, Los Angeles, nine additional points to

1 LAN Ecuador styled its application as a renewal request, but the carrier is in fact seeking certain additional authority beyo nd that which it already h o ld s . Therefore, we are treating its application as a request for both renewal and amendment of its exis ting exemption authority. See footnote 2.

2 LAN Ecuador’s exemption authority previously authorized, among other things, scheduled foreign air transportation of persons, property, and mail from a point or points in Ecuador via intermediate points to Charl otte, New Orleans, Philadelphia, Phoenix, and San Diego on a code

- sharing basis only . LAN Ecuador now requests that its exemption also authorize code

- share only services

between a point or points in Ecuador via intermediate points to Las Vegas, Portland, Raleigh

- Durham, San Juan, and Tampa

.be selected by the Government of Ecuador, 3 and ten additional points to be select ed by the Government of Ecuador for

code

- share only services. 4

This authority shall not be construed as to grant LAN Ecuador authority to serve any point that is not properly selected

under the U.S.

- Ecuador agreement.

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) our acti on was consistent with Department policy; (2) the applicant was qualified to perform its proposed operations; (3) grant of the authority was consist ent 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 s

. 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 regulati ons, 14 CFR §385.30, may file their petitions within seven (7) days after the date of issuance of this Notice. This a ction 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.gov

3 As of August 29, 2012, the Government of Ecuador had selected the following points for own

- aircraft and/or code

- share services: Atlanta, Boston, Dallas /Ft. Worth

, Denver, Houston, Fort Lauderdale, Newark, San Francisc o, and Seattle.

4 As of August 29, 2012, the Government of Ecuador had selected the following points for code

- share only services: Charlotte, New Orleans, Philadelphia, Phoenix, San Diego, Las Vegas, Portland, Raleigh

- Durha m , San Juan

, and Tampa.

### Foreign Carrier Exemption Conditions

In the conduct of the operations authorized, the foreign carrier applicant(s) shall:

(1) Not conduct any operations unless it holds a currently effective authorization from its homeland for such operations, a nd it has filed a copy of such authorization with the Department;

(2) Comply with all applicable requirements of the Federal Aviation Administration, the Transportation Security Administration, and with all applicable U.S. Government requirements concern ing security, including, but not limited to, 14 CFR Parts 129, 91, and 36 and 49 CFR Part 1546 or 1550, as applicable. To assure compliance with all applicable U.S. Government requirements concerning security, the holder shall, before commencing any new s ervice (including charter flights) from a foreign airport that would be the holder’s last point of departure for the United States,

contact its International Industry Representative (IIR ) (formerly referred to as International Principal Security Inspector) to advise the I IR of its plans and to find out whether the Transportation Security Administration has determined that security is adequate to allow such airport(s) to be served ;

(3) Comply with the requirements for minimum insurance coverage contained i n 14 CFR Part 205, and, prior to the commencement of any operations under this authority, file evidence of such coverage, in the form of a completed OST Form 6411, with the Federal Aviation Administration’s Program Management Branch (AFS

- 260), Flight Stand ards Service (any changes to, or termination of, insurance also shall be filed with that office);

(4) Not operate aircraft under this authority unless it complies with operational safety requirements at least equivalent to Annex 6 of the Chicago Conventi on;

(5) Conform to the airworthiness and airman competency requirements of its Government for international air services;

(6) Except as specifically exempted or otherwise provided for in a Department Order, comply with the requirements

of 14 CFR Part 2 03, concerning waiver of Warsaw Convention liability limits and defenses;

(7) Agree that operations under this authority constitute a waiver of sovereign immunity, for the purposes of 28 U.S.C. 1605(a), but only with respect to those actions or proceedin gs instituted against it in any court or other tribunal in the United States that are: (a) based on its operations in international air transportation that, according to the contract of carriage, include a point in the United States as a point of origin, point of destination, or agreed stopping place, or for which the contract of carriage was purchased in the United States; or (b) based on a claim under any international agreement or treaty cognizable in any court or other tribunal of the United States. In this condition, the term "international air transportation" means "international transportation" as defined by the Warsaw Convention, except that all States shall be considered to be High Contracting Parties for the purpose of this definition;

(8) Exc ept as specifically authorized by the Department, originate or terminate all flights to/from the United States in its homeland;

(9) Comply with the requirements of 14 CFR Part 217, concerning the reporting of scheduled, nonscheduled, and charter data;

( 10) If charter operations are authorized, except as otherwise provided in the applicable aviation agreement, comply with the Department's rules governing charters (including 14 CFR Parts 212 and 380); and

(11) Comply with such other reasonable terms, cond itions, and limitations required by the public interest as may be prescribed by the Department, with all applicable orders or regulations of other U.S. agencies and courts, and with all applicable laws of the United States.

This authority shall not be eff ective during any period when the holder is not in compliance with the conditions imposed above. Moreover, this authority cannot be sold or otherwise transferred without explicit Department approval

under Title 49 of the U.S. Code.

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