BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

-------------------------------------------------------------- Application of :

: REPUBLIC AIRLINE INC. : Docket DOT

- OST

- 2012

-

_____ : for a Statement of Authorization pursuant to : 14 C.F.R. Part 212 (Avianca and TACA Carriers : Code Share) :

--------------------------------------------------------------

APPLIC ATION OF REPUBLIC AIRLINE INC.

FOR A STATEMENT OF AUTHORIZATION

Communications with respect to this document should be sent to:

Hershel I. Kamen

Senior Vice President

– Alliances, Regulatory and Policy Steve Morrissey Managing Director

– Regulatory Affairs and Policy UNITED AIR LINES, INC. 1225 New York Avenue, NW

Suite 1100

- DCAIZ Washington, DC 20005 (202) 521

- 4400

hershel.kamen@united.com steve.morrissey@united.com

Daniel A. Weiss Managing Director

- International Affairs and Regulatory

UNITED AIR LINES, INC.

77 West Wacker Drive

- HDQIZ Chicago, IL 60601 (312) 997

- 7573

dan.weiss@united.com

September 17 , 2012 Thomas Newton Bolling Vice President and Deputy General Counsel

Jonathan T. Linde Managing Director & Senior Counsel

- Regulatory UNITED AIR LINES, INC.

77 West Wacker Drive 16th Floor HDQLD Chicago, IL 60601 (312) 997

- 8068 thomas.bolling@united.com jonathan.linde@united.com

Ethan J. Blank

Vice President and General Counsel

REPUBLIC AIRLINE INC. 8909 Purdue Road, Suite 300 Indianapolis, IN 46268 (317) 471

- 2655 ethan.blank@rjet.comBEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

-------------------------------------------------------------- Application of :

: REPUBLIC AIRLINE INC. : Docket DOT

- OST

- 2012

-

______ : for a Statement of Authorization pursuant to : 14 C.F.R. Part 212 ( Avianca and TACA Carriers : Code Share) :

------- -------------------------------------------------------

APPLICATION OF REPUBLIC AIRLINE INC.

FOR A STATEMENT OF AUTHORIZATION

Republic 1 d/b/a United Express applies for blanket statement of authorization pursuant to

Part 212 of the Department’s regulati ons 2 to facilitate code share services with Avianca and the

TACA Carriers

, 3 all of which are code share partners of United. 4 Specifically, Republic requests

authorization to display the designator code s of Avianca (“AV”) and the TA CA Carriers (“TA”) 5

on flights it operates as United Express between points in the United States and between U.S.

points and points in third countries in accordance with the 2011 Air Transport Agreement

1 Common names are used for airlines.

2 United is filing this application on behalf of and with the permission of Republic.

3 In this application, “TACA Carriers” collectively refers to the following carriers which entere d into a letter agreement with Republic on August 22, 2012: TACA International Airlines, S.A. (“TACA International”), Lineas Aereas Costarricenses, S.A. (“LACSA”), and Trans American Airlines, S.A. d/b/a TACA Peru (“TACA Peru”).

4 See, Notice of Action Taken dated October 28, 2011 in Docket DOT

- OST

- 2011

- 0163 (Avianca/United); Department Action dated May 18, 2006 in docket DOT

- OST

- 2006

- 24078 (TACA International and LACSA/United); and Department Action dated September 11, 2006 in DOT

- OST

- 2006

- 25602 (TACA

P eru/United).

5 Since 2005, TACA, TACA Peru and LACSA have been authorized to operate under the common “TACA” trade name and “TA” designator code. See, Docket DOT

- OST

- 2004

- 17355. This is expected to change in the first quarter of 2013. As the Department is aware, the TACA Carriers are seeking DOT authorization to display the “AV” designator code in the first quarter of 2013 for services to/from the

United States. See , Joint Application of Avianca and the TACA Carriers dated August 23, 2012 in

Docket DOT

- OST

- 2012

- 0136.Application of Republic

Page 2

between the United States and Colombia (“U.S.

- Colombia Open Skies Agreeme nt”) 6 and the

Open Skies Agreements between the United States and the home countries of each of the TACA

Carriers (El Salvador, Costa Rica and Peru)

. 7 The carriers will implement their code share as

soon as all regulatory approvals are obtained.

In support of this Application, Republic states the following:

1. Republic has executed letter agreement s with Avianca and the TACA Carriers

,

under which Republic will carry the designator codes of these carriers on certain United Express

flights that Republi c operates . Redacted copies of these letter agreements are attached.

2. Republic is an air carrier holding a certificate of public convenience and necessity

and exemptions authorizing it to operate scheduled air services in the United States and foreign

markets. 8 It is also a new participant in the United Express commuter program. As such, United

and Republic wish to make these services available for code share purposes to Avianca and the

TACA Carriers , thereby increasing the online service offerings b etween United’s North

American network and the home networks of Avianca and the TACA Carriers

.

6 While the U.S.

- Colombia Open Skies Agreement became provisionally effective upon exchange of notes on August 26, 2011, there is a brief transition period before it becomes fully effective at the end of

2012. See Article 18 of the U.S.

- Col ombia Open Skies Agreement and Sections 1, 3 and 4 of the Annex to Agreement. During the transition period, code share limits were lifted effective January 1, 2012. See paragraph 2.d of Section 2 of the Annex.

7 Republic will display the “AV” and “TA” de signator codes only until the TACA Carriers complete the necessary steps to implement their use of the “Avianca” trade name and the “AV” designator code in the carriers’ combined marketing and sale of services to/from the United States. At present, the ca rriers’ planned collective use of the “Avianca” trade name and the “AV” designator code is pending DOT approval. See , Joint Application of Avianca and the TACA Carriers dated August 23, 2012 in Docket

DOT

- OST

- 2012

- 0136. With DOT’s approval, Avianca and t he TACA Carriers plan to implement the collective use of the “Avianca” trade name and “AV” designator code in the first quarter of 2013. At such time, Republic will display only the “AV” designator code on its services pursuant to this statement

of author ization. If the Department believes that this statement of authorization must be amended to reflect the collective use of the “AV” designator code by Avianca and the TACA Carriers, Republic respectfully requests the Department to sua sponte amend this sta tement of authorization upon Avianca and the TACA Carriers’ collective use of the “AV” designator code.

8 See, Order 2009

- 9

- 13 (Interstate Certificate) and 2008

- 4

- 26 (Open Skies Certificate).Application of Republic

Page 3

3. The requested code share authority is fully consistent with the U.S.

- Colombia

Open Skies Agreement 9 and the U.S. Open Skies Agreements with El Salvador, Cost a Rica and

Peru . In addition, the requested authority is consistent with Department precedent in cases

involving similar code share arrangements between U.S. and foreign air carriers. 10 Pursuant to

the terms of such agreements, foreign carriers designated by their respective governments to

serve the United States, such as Avianca and the TACA Carriers , have been authorized to

provide foreign air transportation (including code share services) between the United States and

their respective home countries. A vianca and the TACA Carriers already hold the requisite

underlying economic authority for purposes of holding out the code share services proposed

herein. 11

4. The requested code share authority is also consistent with the public interest

because it will benefit the traveling and shipping public by providing online service between

U.S. cities and points around the globe, via United’s domestic hubs and the U.S. ga teways of

Avianca and the TACA Carriers

.

9 Although the U.S.

- Colombia Open Skies Agreement will be fully implemented at the end of 2012, code share limits were lifted effective January 1, 2012. See paragraph 2.d of Section 1 of the Annex. In addition, paragraph 3 of Section 2 of the Annex exemp ts code share arrangements from frequency

limitations.

10 See , Dockets DOT

- OST

- 2011

- 0004 (Republic/Lufthansa) and

- 2010

- 0013 (Republic/TAP). See also

Dockets DOT

- OST

- 2012

- 0139, OST

- 2012

- 125 and OST

- 2008

- 0068 in which the Department approved

similar code share arrangements between various United Express operators and foreign carrier partners, among others.

11 See, Order 86

- 9

- 36 (foreign air permit) and Notice of Action Taken dated October 28, 2011 in Docket

DOT

- OST

- 2011

- 0164 for Avianca. Each of the TACA Carriers holds Open Skies exemption authority: TACA International and LACSA currently have timely filed renewal applications pending in Dockets

DOT

- OST

- 1997

- 2674 and DOT

- OST

- 1997

- 2682, respectively; and, TACA Peru’s exemption authority was renewed by Not ice of Action Taken dated May 19, 2009 in Docket DOT

- OST

- 2000

- 8054. If the Department believes that Avianca’s exemption authority in Docket DOT

- OST

- 2011

- 0164 is limited to its code share with United, Republic requests the Department to amend Avianca’s aut hority to the extent necessary to encompass its code share with Republic while the carriers await the full effectiveness of the

U.S.

- Colombia Open Skies Agreement.Application of Republic

Page 4

5. Republic will accept and abide by the Department’s standard conditions and

notice requirements imposed on code share arrangements.

6. Republic requests that the Department issue the statements of authorization

applied for herein for an indefinite period, consistent with Department practice.

7. Republic is not a CRAF participant, so issuance of the requested blanket

statements of authorization will not affect the CRAF program.

For the foregoing reasons, Republic urges the Department to grant its application for a

blanket statement of authorization as described above and any other relief as the Department

considers consistent with this application and the public interest

.

Respectfully submitted,

Dan Weiss Managing Director

– International Affairs and Regulatory UNITED AIR LINES, INC.

Submitted on behal f of:

Ethan J. Blank

For REPUBLIC AIRLINE INC.

Vice President and General Counsel 8909 Purdue Road, Suite 300 Indianapolis, IN 46268CERTIFICATE OF SERVICE

I hereby certify that I have this date served a copy of the foregoing document on all persons named below by causing a copy to be sent via email:

msinick@ssd.com (Alaska) francis.heil@aa.com james.kaleigh@aa.com

robert.wirick@aa.com rsilverberg@sgbdc.com (ABX/Air Transport Intl.) jrichardson@johnlrichardson.com (Amerijet) jcanny@amerijet.com stephen.lachter@lachterlaw.com (ASTAR) rpommer@atlasair.com

sascha.vanderbellen@delta.com charters@evergreenairlines.com (Evergreen) cefelts@fedex.com

anbird@fedex.com nssparks@fedex.com robert.cohn@hoganlovells.com (Frontier) patrick.rizzi@hoganlovells.com jhill@dowlohnes.com (Hawaiian/JetBlue) matwood@cozen.com (Kalitta) kevin.montgomery@polaraircargo.com bob.kneisley@wnco.com

leslie.abbott@wnco.com dkirstein@yklaw.com (Spirit) jyoung@yklaw.com (Spirit) john.fredericksen@suncountry.com

anita.mosner@hklaw.com (UPS) jennifer.nowak@hklaw.com howard.kass@usairways.co m jegillick@zsrlaw.com (Virgin America) john.varley@virginamerica.com mlbenge@zsrlaw.com (World) william.stallings@usdoj.gov dwight.moore@ustranscom.mil john.allen@faa.gov

September 17 , 2012 2 Annalei Avanceña International Regulatory Advisor United Air Lines, Inc.