, .~-" ··~~ -'T/\; BEFORE THE Y:::c .. ~ ' ' , , 1 I'-_.', i •,_) 

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 

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Docket DOT-OST-2003-14291 

for an exemption from 49 U.S.C. § 41301 

APPLICATION OF AEROLANE, LINEAS AEREAS 

NACIONALES DEL ECUADOR S.A. D/B/A LAN ECUADOR 

FOR AN AMENDED EXEMPTION 

Communications with respect to this document should be sent to: 

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 of service. The due 

date for answers is November 29, 2011. 
BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION 

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 

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) 

) 

) 

) 

) 

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Docket DOT-OST-2003-14291 

APPLICATION OF AEROLANE, LINEAS AEREAS 

NACIONALES DEL ECUADOR S.A. D/B/A LAN ECUADOR 

FOR AN AMENDED EXEMPTION 

Pursuant to 49 U.S.C. § 40109 and Subpart C ofthe Department's Procedural 

Regulations, Aerolane, Lineas Aereas Nacionales del Ecuador S.A. d/b/a LAN Ecuador hereby 

requests that the Department grant it an amended exemption from 49 U.S.C. § 41301 to 

encompass the broader rights provided for under the 2010 Protocol to ModifY the Annexes to the 

Air Transport Agreement Between the Government of the United States of America and the 

Republic of Ecuador (the "2010 Protocol"). LAN Ecuador requests that the Department grant it 

exemption authority for a period of two years. 

In support of this Application, LAN Ecuador respectfully 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 

Pasaje Guayas E3-131, RWllinahui, Quito, Ecuador. 

2. The name and official address of the government transport authority in Ecuador 

having regulatory jurisdiction over LAN Ecuador is: 
LAN ECUADOR, S.A. 

APPLICATION FOR 

AMENDED EXEMPTION 

Consejo Nacional de A viaci6n Civil I 

Direccion General de A viaci6n Civil 

Buenos Aires OE 1-53 y Av. 10 de Agosto 

Quito, Ecuador 

3. LAN Ecuador currently holds exemption authority to engage in (1) scheduled 

foreign air transportation of persons, property and mail between points in Guayaquil and Quito, 

Ecuador, on the one hand, and Miami, Florida, and New York, New York, on the other hand; and 

(2) scheduled foreign air transportation of property and mail between Guayaquil and Quito, 

Ecuador, on the one hand, and Los Angeles, California, on the other hand. Notice of Action 

Taken ("NOAT"), Docket OST-2003-14291 (Dec. 21, 2007). 1 This authority remains in effect 

under the automatic extension provisions of the Administrative Procedures Act as a result of a 

timely renewal application filed on December 11, 2008. LAN Ecuador does not currently hold 

charter passenger authority from the Department. 

4. On July 21,2010, the U.S. and Ecuador adopted the 2010 Protocol, which 

substantially liberalizes the aviation relationship between the two countries. Pursuant to the 

2010 Protocol, the Government ofthe Republic of Ecuador transmitted to the United States 

Diplomatic Note (No. 17658) dated October 25, 2011, selecting the U.S. points available to 

Ecuadorian carriers under the 2010 Protocol as of July 1, 2011. 

5. LAN Ecuador, a carrier previously designated under the Air Service Agreement, 

now seeks to expand its exemption authorities to include (a) scheduled combination authority to 

LAN Ecuador also. holds. an exemption to engage in foreign charter airtransportation of 

property and mail between a point or points in Ecuador and a point or points 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 under the automatic extension provisions 

of the Administrative Procedures Act as a result of a 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 Ecuador requests an amended exemption, authorizing it to: 

( 1) Engage in scheduled foreign air transportation of persons, 

property, and mail from a point or points in Ecuador via 

intermediate points (selected pursuant to 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 of persons, 

property, and mail from a point or points in Ecuador via 

intermediate points (selected pursuant to 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 air transportation of persons, 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 that the 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 1 sets forth the charter rights available to carriers of both countries. 

7. LAN Ecuador has been duly authorized by the Consejo Nacional de Aviaci6n 

Civil (CONAC) to conduct the. services. contemplated by this Application., A: copy ofthe 

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 of this 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 Ecuador the flexibility to serve new U.S. markets, including pursuant to a codesharing 

arrangement. 2 Third, it permits LAN Ecuador to take advantage of the air service rights for 

which its homeland negotiated with the 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 of the authority requested in this Application will not constitute a major 

regulatory action under the Energy Policy and Conservation Act of 1975, as defined in section 

313 .4( a )(1) ofthe Department's regulations. 

2 Contemporaneously herewith, LAN Ecuador and American Airlines, Inc. are filing a joint 

application for statements of authorization to engage in reciprocal codesharing operations. 

5 
LAN ECUADOR, S.A. 

APPLICATION FOR 

AMENDED EXEMPTION 

WHEREFORE, for the foregoing reasons, Aero lane, Lfneas Aereas Nacionales del 

Ecuador S.A. d/b/a LAN Ecuador respectfully requests that the Department grant it exemption 

authority for a period of two years, as more fully described above. LAN Ecuador also seeks such 

further, different, and additional relief as the Department may 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 ofNovember 2011, a copy of the foregoing was 

served by electronic mail or facsimile on the following: 

R. Bruce Keiner, Jr. 

Lorraine B. Halloway 

Counsel for Continental Airlines 

Crowell & Moring LLP 

1001 Pennsylvania Avenue, 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. 

11 0 1 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 of Regulatory 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 Pennsylvania Avenue, N.W. 

Suite 500 

Washington, D.C. 20004 

msinick@ssd.com 

Anita Mosner 

Jennifer Nowak 

Counsel for United Parcel Service 

Holland & Knight 

2099 Pennsylvania A venue, NW 

Suite 100 

Washington, D.C. 20006 

Anita.mosner@hklaw.com 

Jennifer.nowak@hklaw.com 

Alexander Van Der Bellen 

Jeff Morgan 

Delta Air Lines 

1212 New York Avenue, NW 

Suite 200 

Washington, D.C. 20005 

Sascha. vanderbellen@delta.com 

Jeff.morgan@delta.com 
William C. Evans 

John R. Mietus, Jr. 

Counsel for Centurion Air Cargo 

Law Office of John 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 Spirit Airlines 

Kirstein & Young PLLC 

1001 Pennsylvania Ave., N.W. 

Suite 600 South 

Washington, DC 20004 

jyoung@yklaw.com 

Kevin Montgomery 

Peter Beckett 

Polar Air 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 

Stephen J. Morrissey 

Managing Director, International and 

Regulatory Affairs 

United Air Lines 

1025 Connecticut Avenue, 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 

F edEx Express 

3620 Hacks Cross Road 

Building B, 3rd Floor 

Memphis, TN 38125 

cefelts@fedex.com 
EXHIBIT LE-1 

Operating Authorization 
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Asunto: AERO LANE: Solicita certificaci6n 

Doctor 

Manuel Maximiliano Naranjo Iturmlde 

Gerente General 

Oficio Nro. CNAC-SG-2011-0108-0F 

Quito, D.M., 10 de noviembre de 2011 

LiNEAS AEREAS NACIONALFS DEL ECUADOR 

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 de Noviembre del 2011, por media del presente docurnento me permito certificar que 

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 

Pennisos de Operaci6n de Servicios Aereos en General. 

Con sentimientos de distinguida consideraci6n. 

TARIA GENERAL C N A C 

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

Anexos: 

- oftcio no xl-gg- I 28-2() 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 for Air Transportation 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 I have translated this document from Spanish into English, to the best of my ability. 

Anita A. Meza