UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation on December 6, 2013

NOTICE OF ACTION TAKEN -- DOCKET DOT-OST-2013-0165

_______________________________________________________________________________________________

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: AeroRepublica S.A. d/b/a Copa Airlines Colombia (Copa Airlines Colombia)

Date Filed: August 29, 2013

Relief requested: Exemption under 49 U.S.C. § 40109 to the extent necessary to permit Copa Airlines Colombia to 

display United Airlines, Inc.’s (United’s) UA* designator code on Copa Airlines Colombia flights (i) between 

Colombian points, and (ii) beyond Colombia to open-skies points.1

The applicant further requests a statement of authorization under 14 CFR Part 212 to permit Copa Airlines Colombia 

to display United’s UA* designator code on Copa Airlines Colombia flights in conjunction with foreign air 

transportation of persons, property, and mail (i) between Colombian points; and (ii) beyond Colombia to any openskies point(s).2

Applicant representatives: Christian Hansen and Ibrahim Barakat (305) 371-2700 

DOT analyst: Brett D. Kruger (202) 366-8025

Responsive pleadings: None.

DISPOSITION

Action: Approved. Action date: December 6, 2013

Effective dates of authority granted: The exemption authority granted to Copa Airlines Colombia is effective 

December 6, 2013, through December 6, 2015.

The statement of authorization granted to Copa Airlines Colombia is effective December 6, 2013, for an indefinite 

period, subject to conditions.

Basis for approval (bilateral agreement/reciprocity): U.S.-Colombia Air Transport Agreement.

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our standard 

exemption conditions attached as Appendix A and to the code-share conditions attached as Appendix B.

Special conditions/Remarks: Based on the record in this case, we found that the applicant is operationally and financially 

qualified to conduct its proposed operations. We also note that the applicant is properly licensed by its homeland to

perform the proposed services. With respect to the ownership and control of the applicant, the record in this case does 

not permit us to find that Copa Airlines Colombia is substantially owned and effectively controlled by nationals of 

Colombia. Specifically, the applicant states that it is 99.9% owned by Aero Corporation One Ltd. and Aero Corporation 

 1 Copa Airlines Colombia states that it will initially transport United U.S. origin/destination passengers between: (i) points in 

Colombia; and (ii) points in Colombia and points in Panama. Copa Airlines Colombia further states that it will neither sell seats in 

its own name for travel to or from the United States, nor operate aircraft to any U.S. point. 2 To the extent that Copa Airlines Colombia’s application might have suggested that the applicant was seeking a broader grant of 

authority, the applicant advised us informally on November 14, 2013, that our description of the relief requested as set forth here 

encompasses the entirety of the applicant’s request.
Two Ltd., both British Virgin Island companies, both of which are in turn owned by Aerofinance Corporation, also a 

company of the British Virgin Islands. Aerofinance Corporation is wholly owned by Copa Holdings, S.A., a Panamanian 

company which also owns a 99.9% interest in Compania Panamena de Aviacion, S.A. (Copa Airlines). The record 

further shows that all of Copa Airlines Colombia’s Directors and key management personnel identified in its application 

are Colombian citizens, with the exception of one Director being a citizen of Ecuador. In the circumstances presented, 

we found in our discretion that it would be consistent with the public interest to waive our ownership and control 

standard. After carefully examining the record in this case, we concluded that there was no evidence that the nonhomeland involvement in the ownership and control of Copa Airlines Colombia would be inimical to U.S. aviation policy 

or interests. 

Finally, we note that United has conducted a safety audit of Copa Airlines Colombia under the Department’s Code-Share 

Safety Audit Program, and the FAA has advised us that it has reviewed the relevant audit report and found it to be 

acceptable.

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 Docket. 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
Appendix A

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
Appendix B

The code-share operations authorized here are subject to the following conditions:

(a) The statement of authorization will remain in effect only as long as (i) Copa Airlines Colombia and United

continue to hold the necessary underlying authority to operate the code-share services at issue, and (ii) the codeshare agreement providing for the code-share operations remains in effect.

(b) Copa Airlines Colombia and/or United must notify the Department no later than 30 days before they begin any 

new code-share service under the code-share services authorized here. Such notice shall identify the market(s) to 

be served and the date on which the service will begin. Such notice should be filed in Docket DOT-OST-2013-

0165.

3

(c) Copa Airlines Colombia and/or United must promptly notify the Department (Office of International Aviation) if 

the code-share agreement providing for the code-share operations is no longer effective or if the carriers decide to 

cease operating all or a portion of the approved code-share services. Such notices should be filed in Docket DOTOST-2013-0165.

4

(d) The code-sharing operations conducted under this authority must comply with 14 CFR 257 and with any 

amendments to the Department’s regulations concerning code-share arrangements that may be adopted. 

Notwithstanding any provisions in the contract between the carriers, our approval here is expressly conditioned 

upon the requirements that the subject foreign air transportation be sold in the name of the carrier holding out such 

service in the computer reservation systems and elsewhere; that the carrier selling such transportation (i.e., the 

carrier shown on the ticket) accept responsibility for the entirety of the code-share journey for all obligations 

established in its contract of carriage with the passenger; that the passenger liability of the operating carrier be 

unaffected; and that the operating carrier shall not permit the code of its U.S. code-sharing partner to be carried on 

any flight that enters, departs, or transits the airspace of any area for whose airspace the Federal Aviation 

Administration has issued a flight prohibition.

(e) The authority to operate to third countries is subject to the condition that any service provided under the statement 

of authorization shall be consistent with all applicable agreements between the United States and the foreign 

countries involved. Furthermore, (i) nothing in the award of this statement of authorization should be construed as 

conferring upon United rights (including code-share, fifth freedom intermediate and/or beyond rights) to serve 

markets where U.S. carrier entry is limited unless United notifies the Department of its intent to serve such a 

market and unless and until the Department has completed any necessary carrier selection procedures to determine 

which carrier(s) should be authorized to exercise such rights; and (ii) should there be a request by any carrier to use 

the limited-entry route rights that are included in the authority of United by virtue of the statement of authorization 

granted here, but that are not then being used by United, the holding of such authority will not be considered as 

providing any preference for United in a competitive carrier selection proceeding to determine which carrier(s) 

should be entitled to use the authority at issue. 5

(f) The authority granted here is specifically conditioned so that neither Copa Airlines Colombia nor United shall give 

any force or effect to any contractual provisions between themselves that are contrary to these conditions.

We may amend, modify, or revoke the authority granted at any time without hearing at our discretion.

 3 Copa Airlines Colombia provided notice of its intent to engage in code-share services by displaying the UA* code between openskies points. 4 We expect this notification to be received within 10 days of such non-effectiveness or of such decision. 5 The notice in paragraph (b) above can be used for this notification.