### DEPARTMEN T ACTIO N O N APPLICATIO N I N DOCKE T DOT-OST-2010-010 9

Join t Applicatio n of

Alask aAirlines , Inc
. (Alaska ) an dHorizo n Ai r Industries , Inc
. (Horizon ) (together , th e "Join t Applicants" ) fo r

Blanke t Statement s o f

Authorizatio n t o displa y Icelandair' s "FI* " designato r cod e o n flight s operate db y Alask ao r it s affiliat e Horizo n (i ) betwee n point s i n th e Unite dState s an d(ii ) betwee n point s i n th e Unite dState s an dCanada , fo r th e purpos e o f

transportin g Icelandair' s Iceland-U.S
. an d Iceland-Canad atraffic ' (fde dApri l 27,2010) '
Approve dunder

assigne dauthorit

y (1 4 CFR§385.13 ) Dat e of Action : Ma

y 7.201 0

Director , 0 ffice of'International Aviatio n

Thi s actio n i s subjec t

t o th e condition s attached
. Person s entitle dt o petitio n th e Departmen t for revie w o f thi s actio n under

th e Department' s regulations , 1 4 CFR§385.30 , shoul dfile theu : petition s withi n seve n day s o f th e dat e o

f thi s action
. Thi s actio n i s effectiv e immediately , an d th e filin g of

apetitio n for

revie w wil l no t

alter it s effectiveness
.

A n electroni c versio n o f

thi s document

i s availabl e O

H th e Worl

dWid e We b a t http://www
. regulations , eo v

' Th e Join t

Applicant s inten dt o begi n code-shar e operation s o n Jun e 1,2010
. Se e Attachmen t B fo r initia l city-pai r markets
. ^ Th e applicant

request s awaiver

of th e 45-day advanc e filing requiremen t a s state di

n 1 4 CFR212.10(d)(2)
. W e wil l gran t th e waiver , a s no part

y oppose dth e request .ATTACHMEN T A

Th e statement s o

f authorizatio n grante dar e subjec t t o th e followin g conditions : (a ) Th e statement

of authorizatio n a s t o Alask awil l remai n i n effec t only a s lon g a s (i ) Alask aan d Icelandai r continu e t o hol dth e necessar y underlyin g authorit

y t o operat e tfie code-shar e service s a t issue , an d(ii ) th e code-shar e agreemen t providin g for

th e code-shar e operation s remain s i n effect
. (b ) Th e statement

o f authorizatio n a s t o Horizo n wil l remai n i n effec t only a s lon g a s (i ) Horizo n an d Icelandai r continu e t o hol dth e necessar y underlyin g authority t o operat e th e code-shar e service s a t issue , an d(ii ) th e code-shar e agreemen t providin g fo

r th e code-share operation s remain s i n effect
. (c ) Alaska , Horizon , and/o r Icelandai r

mus t notif y th e Departmen t

n o later tha n 3 0 day s before they begi n an y new code-shar e servic e unde r th e code-shar e service s authorize dhere
. Suc h notic e shal l identif

y th e market(s ) t o b e served , th e carrie r operatin g th e aircraf

t in th e code-shar e marke t added , an dth e date o n whic h th e servic e wil l begin
. Suc h notice s shoul db e file di n Docke t DOT-OST-2010-0109 ; (d ) Alaska , Horizon , and/o r Icelandai r

mus t promptl y notif

y th e Departmen t

(Offic e of

International Aviation ) i f

th e code-shai % agreemen t providin g for

th e code-shar e operation s i s n o longe r effectiv e o r

i f th e carrie r

decide s t o ceas e operatin g al l o r aportio n o f

th e approve dcode-shar e services
. Suc h notice s shoul db e filedi n DOT-OST-2010-0109. ^ (e ) Th e code-sharin g operation s conducte dunder thi s authorit

y mus t compl y wit

h 1 4 CF R25 7 an d wit h an y amendment s t o th e Department' s regulation s concernin g code-shar e arrangement s tha t ma y b e adopted
. Notwithstandin g an y provision s i n th e contrac t

betwee n th e carriers , our approval her e i s expressl y conditione dupo n th e requirement s tha t th e subjec t

foreig n ai r transportatio n b e sol di n th e name o f th e carrie r

holdin g ou t

suc h servic e i n th e computer reservatio n system s an delsewhere ; tha t th e carrie r

sellin g suc h transportatio n (i.e. , th e carrie r show n o n th e ticket ) accep t responsibilit

y for th e entiret

y o f th e code-share journe y for al l obligation s establishe din it s contrac t of carriag e wit

h th e passenger ; that

th e passenger

liabilit y of th e operatin g carrie r

b e unaffected ; an dthat

th e operatin g carrie r

shal l no t permi t th e cod e of

it s U.S
. code-sharin g partne r

to b e carrie do n an

y flight that enters , departs , o r

transit s th e airspac e o f any are afor

whos e airspac e th e Federa l Aviatio n Administratio n ha s issue dafligh t prohibition
. (f ) An y servic e provide dshal l b e consisten t wit h al l applicabl e agreement s betwee n th e Unite d State s an dIceland , an dal l applicabl e agreement s wit h othe r foreig n countrie s involved
. Fiulhermore , (i ) nothin g i n th e awardof th e blanke t

statement s of

authorizatio n t o Alask aand/o r Horizo n shoul db e construe da s conferrin g upo n Alask aand/o r Horizo n rights (includin g code

share , fifth-fteedo mintermediat e and/o r beyon drights ) to serv e market s wher e U.S
. carrie r

rights ar e limite dunles s Alask aand/o r Horizo n notifie s u s o

f it s intent t o serv e suc h market

an dunles s an dunti l th e Department

ha s complete dany necessar y carrie r selectio n procedure s to determin e whic h carrier(s ) shoul db e authorize dto exercis e suc h rights;* an d(ii ) shoul dthere b e areques t by any carrie r

t o us e th e limited-entr

y rout e rights tha

t are include di n Alaska' s and/o r Horizon' s authorit y b y virtu e o f

th e blanke t

statement s of

authorizatio n grante dhere , bu t tha t ar e no t bein g W e expec t thi s notificatio

n t o b e receive

dwithi n 1 0 day s o

f suc h non-effectivenes s o

r o f suc h decision
. Th e notice reference

di n conditio n (c ) abov e ma y b e use dfo r thi s notification
.use db y Alask aand/o r Horizon , th e holdin g of

suc h authorit

y wil l no t b e considere da s providin g any preferenc e for

Alask aand/o r

Horizo n i n acarrie r selectio n proceedin g t o determin e whic h carrier(s ) shoul db e entitle dt o us e th e authorit y a t issue
. (g ) Th e authorit

y grante dhere i s specificall y conditione ds o tha t neithe r Alask aan dHorizo n no r Icelandai r shal l giv e any forc e o r

effec t t o any contractual provision s betwee n themselve s tha t ar e contrar y to thes e conditions
. (h ) W e ma

y amend , modify , o r

revoke th e authorit

y grante dat

any tim e withou t

hearin g a t

our discretion
.

### Seattle

Initia l Codeshar e Route s
Rout e Sa n Francisc o Lo s Angele s Portland , Orego n Sa n Dieg o b s Vega s Sacrament o Sa n Jos e Spokan e iWhorag e Vancouve r Calgar y Victori a ATTACHMEN T B



### Operatin g Carrie r Alask a Alaska/Horizo n Horizo n Alask a Alask a Alask a Alask a Horizo n Alask a Alaska/Horizo n Horizo n Horizo n