UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation on February 14, 2014

NOTICE OF ACTION TAKEN -- DOCKETS DOT-OST-2003-14291 and DOT-OST-2005-23236 ________________________________________________________________________________________________________

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 matter).

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 amendment1 of exemption from 49 USC §41301 to permit the applicant to engage 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 point 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 service to the homeland 

for the purpose of carrying local traffic between the homeland and the United States.

Date and citation of last action: January 24, 2013, in these Dockets.

Applicant representative: Robert P. Silverberg, 202-944-3300 DOT analyst: Brett D. Kruger 202-366-8025

Responsive pleadings: None.

DISPOSITION

Action: Approved. Action date: February 14, 2014

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

Basis for approval (bilateral 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, conditions, 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 services. 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 beyond that 

which it already holds. Therefore, we are treating its application as a request for both renewal and amendment of its existing 

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 Charlotte, 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 selected 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 action was consistent with 

Department policy; (2) the applicant was qualified to perform its proposed operations; (3) grant of the authority was consistent 

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 Dockets. 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 regulations, 14 

CFR §385.30, may file their petitions within seven (7) days after the date of issuance of this Notice. This action 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 Francisco, 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-Durham, 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, and 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 concerning 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 service 

(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 IIR 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 in 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 Standards 

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 Convention;

(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 203, 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 proceedings 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) Except 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, conditions, 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 effective 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.

12/2007