### ,**.~-" ··~~**  

### -'T/\; BEFORE THE Y:::c
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### U.S. DEPARTMENT OF TRANSPORTATION
.. -· WASHINGTON, D.C. , . 1 ,**·::-~** :.1:**~** \
Application of 

### Aerolane, Lineas Aereas Nacionales del Ecuador S.A. d/b/a LAN Ecuador ) ) ) ) ) ) ) Docket DOT-OST-2003-14291 for an exemption from 49 U.S.C. 

### §41301



### APPLICATION OFAEROLANE,LINEAS AEREAS NACIONALES DEL ECUADOR S.A. D/B/A LAN ECUADOR FORAN AMENDED EXEMPTION Communications with respect to this document should be sentto:

November 14, 2011 Charles J. Simpson, Jr. Lonnie Anne Pera David M. Endersbee ZUCKERT, SCOUTT & RASENBERGER, L.L.P. 888 Seventeenth Street, N.W., Suite 700 Washington, DC 20006 Tel: (202) 298-8660; Fax: (202) 342-0683 Email: cjsimpson@zsrlaw.com lapera@zsrlaw.com dmendersbee@zsrlaw.com Counsel for Aerolane, Lineas Aereas Nacionales del Ecuador S.A. d/b/a LAN Ecuador



### NOTICE: Any person may respond to this Application by filing an answer and serving a copy on the applicant and all persons listed on the attached certificate ofservice. The due date for answers is November 29, 2011.BEFORE THE U.S. DEPARTMENT OFTRANSPORTATION WASHINGTON, D.C.
Application of Aerolane,Lineas Aereas Nacionales del Ecuador S.A. d/b/a LAN Ecuador for an exemption from 49 U.S.C. §41301
Dated: November 14, 2011 ) ) ) ) ) ) ) Docket DOT-OST-2003-14291

APPLICATION OFAEROLANE,LINEAS AEREAS NACIONALES DELECUADOR S.A. D/B/A LAN ECUADOR FORAN AMENDED EXEMPTION Pursuant to 49 U.S.C. §40109 and Subpart C ofthe Department'sProcedural Regulations, Aerolane, Lineas Aereas Nacionales del Ecuador S.A. d/b/a LAN Ecuadorhereby requests that the Department grant it an amended exemption from 49 U.S.C. 

### §41301 to encompass the broaderrights provided for underthe 2010 Protocol to ModifY the Annexes to the AirTransport Agreement Betweenthe Government ofthe United States ofAmerica and the Republic ofEcuador (the "2010 Protocol"). LAN Ecuador requests that the Department grant it exemption authority for a period oftwo years. In support ofthis Application, LAN Ecuadorrespectfully states as follows: 1. The Applicant's full name and corporate address are: Aerolane, Lineas Aereas Nacionales del Ecuador S.A. d/b/a LAN Ecuador, Edificio Ruminahui, Avenida Amazonas y PasajeGuayas E3-131,RWllinahui, Quito, Ecuador. 2. The name and official address ofthe governmenttransport authority in Ecuador having regulatoryjurisdiction over LAN Ecuador is:LAN ECUADOR, S.A. APPLICATION FOR AMENDED EXEMPTION Consejo Nacional de Aviaci6n Civil I Direccion General de Aviaci6n Civil Buenos Aires OE 1-53 y Av. 10 de Agosto Quito, Ecuador 3. LAN Ecuadorcurrently holds exemption authority to engage in (1) scheduled foreign air transportation ofpersons, property and mail betweenpoints in Guayaquil and Quito, Ecuador, onthe one hand, and Miami, Florida, and New York, NewYork, on the other hand; and (2) scheduled foreign air transportation ofproperty and mail between Guayaquil and Quito, Ecuador, onthe one hand, and Los Angeles, California, onthe otherhand. Notice ofAction Taken ("NOAT"), Docket OST-2003-14291 (Dec. 21, 2007). 1 This authority remains in effect underthe automatic extensionprovisions ofthe Administrative Procedures Act as a result ofa timelyrenewal application filed on December 11, 2008. LAN Ecuadordoes not currently hold charterpassenger authority from the Department. 4. OnJuly 21,2010, the U.S. and Ecuador adopted the 2010 Protocol, which substantially liberalizes the aviation relationship between the two countries. Pursuantto the 2010 Protocol, the Government oftheRepublic ofEcuador transmitted to the United States DiplomaticNote (No. 17658) dated October 25, 2011, selectingthe U.S. points available to Ecuadorian carriers under the 2010 Protocol as ofJuly 1, 2011. 5. LAN Ecuador, a carrierpreviously designated under the Air Service Agreement,
now seeks to expand its exemption authorities to include (a) scheduled combination authority to

LANEcuadoralso.holds.anexemptionto engageinforeign charterairtransportation of property and mail between apoint orpoints in Ecuador and a point orpoints in the United States and between points in the United States and third countries. NOAT, Docket OST-2005-23236 (Dec. 21, 2007). This authority also remains in effect underthe automatic extensionprovisions ofthe Administrative Procedures Act as a result ofa timely renewal application filed on December 11, 2008. 3

### LAN ECUADOR, S.A. APPLICATION FOR AMENDED EXEMPTION
U.S. points selected in the Diplomatic Note, (b) scheduled combination authority to codeshareonly U.S. points selected in the Diplomatic Note, and (c) charter combination authority. In this regard, LAN Ecuadorrequests an amended exemption, authorizing it to: (1) Engage in scheduled foreign air transportation ofpersons, property, and mail from a point orpoints in Ecuador via intermediate points (selected pursuantto the Air Services Agreement, as amended by 2010 Protocol) 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) Engage in scheduled foreign air transportation ofpersons, property, and mail from a point orpoints in Ecuador via intermediatepoints (selected pursuantto the Air Services Agreement, as amended by 2010 Protocol) to Charlotte, New Orleans, Philadelphia, Phoenix, and San Diego on a codesharing basis only; and (3) Engage in charter foreign airtransportation ofpersons, property, and mail from points behind Ecuador, via Ecuador and intermediate points, to points in the United States and beyond. For administrative convenience, LAN Ecuador also respectfully requests thatthe Department consolidate the authority requested herein in Docket DOT-OST-2003-14291. 6. The new and amended authority sought by LAN Ecuador is encompassed in the Air Services Agreement, as amended by the 2010 Protocol. Specifically, Annex I, Article 1, paragraph B(i) sets forth the scheduled combination rights available to Ecuadorian carriers. Annex II, Section 1sets forth the charterrights available to carriers ofboth countries. 7. LAN Ecuadorhas been duly authorized by the Consejo Nacional de Aviaci6n Civil(CONAC)to conductthe. services.contemplated by 

### thisApplication., A:

### copyofthe authorization is enclosed as Exhibit LE-1. LAN Ecuador is fit, willing and able to perform the foreign air transportation for which authority is requested in this Application and to comply with

4

### LAN ECUADOR, S.A. APPLICATION FOR AMENDED EXEMPTION
the pertinent statutory provisions and the Department's rules, regulations, and requirements. The Department previously has found that LAN Ecuador is fit to engage in foreign air transportation.**See,~'** 

### NOAT, Docket OST-2003-14291 (Dec. 21, 2007). 8. Grant ofthis Application will serve the public interest. First, it will significantly expand the opportunities for travelers and shippers in the U.S.- Ecuador market. Second, it will give LAN Ecuadorthe flexibility to serve new U.S. markets, includingpursuant to a codesharing arrangement.2 

### Third, it permits LAN Ecuador to take advantage ofthe air service rights for which its homeland negotiated withthe United States. 9. LAN Ecuador's insurance coverage meets or exceeds the requirements of 14 C.F.R. Part 205. The current certificate is on file with the Department. 10. LAN Ecuador aircraft are maintained by LAN Airlines, S.A. ("LAN") in accordance with ICAO Pilots and Airmen Annexes 1, 6 (Part 1), and 7. LAN performs the maintenance at its facilities. Ecuador is a contracting state to the Convention on International Civil Aviation. 11. Grant ofthe authority requested in this Application will not constitute a major regulatory action underthe Energy Policy and Conservation Act of 1975, as defined in section 313.4(

### a)(1) 

### oftheDepartment's regulations.

2 

### Contemporaneously herewith, LAN Ecuador and American Airlines, Inc. are filing ajoint application for statements ofauthorization to engage in reciprocal codesharing operations.
5LAN ECUADOR, S.A. APPLICATION FOR AMENDED EXEMPTION WHEREFORE, for the foregoing reasons, Aerolane, Lfneas Aereas Nacionales del Ecuador S.A. d/b/a LAN Ecuadorrespectfully requests thatthe Department grant it exemption authority for a period oftwo years, as more fully described above. LAN Ecuador also seeks such further, different, and additional reliefas the Departmentmay deem to be appropriate.

November 14, 2011

6 Respectfully submitted,

ZUCKERT, SCOUTT & RASENBERGER, L.L.P. 888 Seventeenth Street, N.W., Suite 700 Washington, DC 20006 Tel: (202) 298-8660; Fax: (202) 342-0683 Email: cjsirnpson@zsrlaw.corn lapera@zsrlaw.corn drnendersbee@zsrlaw.corn Counsel for Aerolane, Lfneas Aereas Nacionales del Ecuador S.A. d/b/a LAN Ecuador

### CERTIFICATE OF SERVICE I hereby certify that on this 14th day ofNovember2011, a copy ofthe foregoing was served by electronic mail orfacsimile on the following:
R. Bruce Keiner, Jr. Lorraine B. Halloway Counsel for Continental Airlines Crowell & Moring LLP 1001 PennsylvaniaAvenue, N.W. Washington, D.C. 20004-2595 rbkeiner@crowell.com Lhalloway@crowell.com
Dan Weiss Continental Airlines, Inc. Government Affairs-8th Floor 1600 Smith Street, Dept. HQSGV Houston, TX 77002 dan.weiss@coair.com
Carl B. Nelson, Jr. Associate General Counsel American Airlines, Inc. 1101 Seventeenth Street, N.W. Suite 600 Washington, D.C. 20036 carl.nelson@aa.com
John L. Richardson Counsel for Amerijet International John L. Richardson, P.L.L.C. 555 13th Street, N.W. Suite 420 West Washington, D.C. 20004 jrichardson@johnlrichardson.com Russell E. Pommer Associate General Counsel and

Director ofRegulatory Affairs Atlas Air, Inc. 1747 Pennsylvania Avenue, N.W. Suite 875 Washington, D.C. 20006 rpommer@atlasair.com
MarshallS. Sinick Counsel for Florida West

International Airways Squire, Sanders & Dempsey L.L.P. 1201 PennsylvaniaAvenue, N.W. Suite 500 Washington, D.C. 20004 msinick@ssd.com
AnitaMosner JenniferNowak Counsel for United Parcel Service Holland & Knight 2099 Pennsylvania Avenue, NW Suite 100 Washington, D.C. 20006 Anita.mosner@hklaw.com Jennifer.nowak@hklaw.com
Alexander Van Der Bellen JeffMorgan DeltaAir Lines 1212 NewYork Avenue, NW Suite 200 Washington, D.C. 20005 Sascha.vanderbellen@delta.com Jeff.morgan@delta.comWilliam C. Evans John R. Mietus, Jr. Counsel for Centurion Air Cargo Law Office ofJohn Mietus, LLC 6701 Democracy Boulevard Suite 300 Bethesda, MD 20817 bill@mietuslaw.com john@mietuslaw.com John M. Allen Director Flight Standards Service Federal Aviation Administration 800 Independence Avenue, S.W., Rm 821 Washington, D.C. 20591 john.allen@faa.gov Joanne W. Young Counsel for SpiritAirlines Kirstein & Young PLLC 1001 Pennsylvania Ave., N.W. Suite 600 South Washington, DC 20004 jyoung@yklaw.com Kevin Montgomery PeterBeckett PolarAir Cargo, Inc. 1747 Pennsylvania Avenue, N.W. Suite 875 Washington, D.C 20006 kevin.montgomery@ polaraircargo.com peter.beckett@polaraircargo.com

2 Howard Kass Managing Director & Associate General Counsel US Airways 1401 H Street, N.W. Suite 1075 Washington, D.C. 20006 howard_ kass@usairways.com StephenJ. Morrissey Managing Director, International and Regulatory Affairs United Air Lines 1025 ConnecticutAvenue, N.W. Suite 1210 Washington, DC 20036 Steve.morrissey@united.com John Palo Vice President, Planning Military and Government Evergreen International Airlines, Inc. 3850 Three Mile Lane McMinnville, OR 97128 john. palo@evergreenairlines.com charters@evergreenairlines.com Courtney Felts Legal and Regulatory Affairs FedExExpress 3620 Hacks Cross Road Building B, 3rd Floor Memphis, TN 38125 cefelts@fedex.com

### EXHIBIT LE-1
OperatingAuthorization

# 1iGr 

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# ·---a..- Asunto: AEROLANE: Solicitacertificaci6n
Doctor Manuel Maximiliano Naranjo Iturmlde Gerente General OficioNro. CNAC-SG-2011-0108-0F Quito, D.M., 10denoviembrede2011

LiNEAS AEREAS NACIONALFSDELECUADOR En su Despacho.
De mi consideraci6n: Para los fines legales pertinentes y en atenci6n a lo solicitado en su Oficio No. XL-GG-128/2011, recibido el 9 deNoviembre del 2011, pormedia del presente docurnento mepermito certificarque Ia Cornpaiifa Lineas Aereas Nacionales del Ecuador S.A., AEROLANE, es poseedora de una Concesi6n de Opemci6n otorgada mediante Acuerdo No. 06012009, de 16 de Octubre del 2009, modificado con Acuerdos No. 029/2010, de 24 de Marzo del 2010 y No.021/2011, de 06 de Abril del 20ll, para Ia prestaci6n del servicio de transporte aereo, publico, internacional, regular de pasajeros, carga y correo en forma combinada, en las rutas, frecuencias y derechos constantes en dichos instrurnentos. Ademas Ia Compafifa Lineas Aereas Nacionales del Ecuador S.A., AEROLANE, en base a csta concesi6n puede realizar vuelos no regulares de pasajeros, carga y corrco, siempre y cuando cumpla con los requisites previstos en el Reglamento de Concesiones y Pennisosde Operaci6n de Servicios Aereosen General. Con sentimientos de distinguida consideraci6n.

TARIA GENERALC N A C

- Extemo Nro: CNAC-SG-2()1 1-2228-EXT Anexos:

- oftcio no xl-gg-I28-2()ll.pdf

JCG

1/1(LOGO) REPUBLIC OF ECUADOR (LOGO) CNAC NATIONAL CIVIL AERONAUTICS COUNCIL Buenos Aires 1-53 y 10 de Agosto- P4 Tel 5932-2900821 Fax 5932-2520291 www.cnac.gob.ec Memorandum No. CNAC-SG-2011-0108-0F Quito, D.M. November 10, 2011 Subject: AEROLANE: Application for certification Doctor Manuel Maximiliano Naranjo lturralde General Manager LINEAS AEREAS NACIONALES DEL ECUADOR To whom it may concern: For all legal purposes and in consideration with the request included in your Memo No. XL-GG-128/2011 which was delivered November 9, 2011, by means of this document we hereby certify that Lineas Aereas Nacionales del Ecuador S.A. AEROLANE holds an Operational Concession granted through Agreement No. 060/2009 dated October 16, 2009 amended by Agreement No. 029/2010 dated March 24, 2010 and 021/2011 dated April 6, 2011 for the operation of air transportation services, public, international, scheduled passenger, cargo and mail combined, within the routes, frequencies and rights as stated in such documents. In addition, Lineas Aereas Nacionales del Ecuador S.A. AEROLANE, based on this authority may operate non scheduled passenger, cargo and mail operations provided it complies with all provisions stated in the Rules for Concessions and Permits forAirTransportation in general. Respectfully, Illegible signature Dr. Julio Carrera Grijalba Director and Secretary General CNAC References: External No. CNAC-SG-2011-2228-EXT Annexes: Memo No. XL-GG-128-2011.pdf I hereby certify that Ihave translated this document from Spanish into English, to the best ofmy ability.

Anita A. Meza