UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation on December 13, 2012

NOTICE OF ACTION TAKEN -- DOCKET DOT-OST-2012-0136 ________________________________________________________________________________________________________________________________

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).

Joint Applicants: TACA INTERNATIONAL AIRLINES, S.A. (TACA), TRANS AMERICAN AIRLINES. S.A.

D/B/A TACA PERU (TACA Peru), LINEAS AEREAS COSTARRICENSES S.A.(LACSA), and AVIATECA S.A.

(Aviateca) (together the TACA Group) and AEROVIAS DEL CONTINENTE AMERICANO S.A. (Avianca)

Date Filed: August 13, 2012

Relief requested: Exemption under 49 U.S.C. §40109 permitting the joint applicants to register under 14 CFR Part 215 

their collective use of the trade name "Avianca" and use of the designator code "AV" for their services in foreign air 

transportation to and from the United States.1

The TACA Group also requests blanket statements of authorization under 14 CFR Part 212 to display the “AV” 

designator code on flights operated by the TACA Group in U.S. markets in which both the operator and Avianca hold 

current Department authority to conduct scheduled foreign air transportation of persons, property and mail, further to the 

proposed common branding arrangement.

To the extent necessary, Aviateca and LACSA request registration of the "TACA" trade name pursuant to Part 215 to 

avoid potential consumer confusion and permit Aviateca and LACSA to hold out service under the Avianca brand.2

In support of their requests, the joint applicants state that since 2005, TACA, TACA Peru, LACSA, and Aviateca have 

been authorized by the Department to operate under the common "TACA" trade name and "TA'' designator code.3

 The

joint applicants state that in 2010, they came under the common ownership of a single parent company and now seek to 

maximize the marketing potential of their common ownership with a new trade name and designator code that represents 

their combined strength throughout the Americas. They contend that since grant of the TACA Group's initial application,

it has been demonstrated during the subsequent seven years in which those carriers have operated under a common trade 

name and designator code, that the use of such common branding has greatly simplified the marketing and promotion of 

their services, without any accompanying consumer confusion. The joint applicants state that they firmly expect that these 

efficiencies and benefits will carry over into "Avianca" branded foreign air transportation services.

The joint applicants state that they will not operate or market flights for which they do not hold underlying economic 

authority from the Department, nor will they engage in prohibited cabotage. They also describe and provide examples of 

various measures that they will take to ensure that appropriate disclosure is provided to the traveling public to minimize 

the potential for consumer confusion in the marketing and operation of their services. The joint applicants also state that 

 1 The joint applicants state that they plan to use the trade name "Avianca" and the "AV" designator code in their combined marketing 

and sale of services to and from the United States starting in the first quarter of 2013. 

2 The joint applicants note that neither Aviateca nor LACSA maintain their own airport check-in counters or operate their own liveried 

aircraft, so a consumer may be confused unless Aviateca and LACSA utilize TACA as a d/b/a, allowing a consumer is able to readily 

identify, among other things, the ticketing location at which he or she should check in and the d/b/a identity of the aircraft operator. 3

See Order 2005-1-22, issued on January 25, 2005, in Docket DOT-OST-2004-17355. The joint applicants note that while LACSA 

holds exemption authority to operate under the common "TACA" trade name and “TA" designator code, it has continued to hold out 

and operate service under its own "LR" designator code as previously authorized by the Department. The joint applicants state the 

LACSA will complete the necessary technological changes necessary to exclusively use the "Avianca" trade name and "AV"

designator code. They expect these changes to be completed during the first quarter of 2013. See Appendix C, note 1 and 

accompanying text.
they will accept all conditions imposed on the TACA Group carriers in Order 2006-11-10, a prior action in which the 

Department granted the renewal and amendment of the TACA Group carriers’ common branding authority.4

Applicant representatives: Richard D. Mathias, David M. Endersbee, and Jonathon F. Foglia, 202-973-7926 

DOT analyst: Robert J. Finamore, 202-366-2405

Responsive pleadings: None.

DISPOSITION

Action: Approved, subject to conditions (see below) Action date: December 13, 2012

Effective dates of authority granted: The exemption authority granted to the joint applicants is effective December 13, 

2012, through December 13, 2013. The statements of authorization granted to the TACA Group carriers are effective 

December 13, 2012, through December 13, 2013, subject to conditions. We will also grant the request of Aviateca and 

LACSA for registration of the TACA trade under 14 CFR Part 215, effective December 13, 2012.

Basis for approval: Aviation agreements between the U.S. and the homelands of each of the joint applicants.5

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), code-share conditions (attached as Appendix B), and the consumer 

disclosure conditions set forth in Appendix C.

Special conditions/Remarks: We have decided to grant the requests of the joint applicants for: 1) exemption authority to 

permit them common use under 14 CFR Part 215 of the “AV” designator code and the Avianca trade name for their 

services in foreign air transportation to and from the United States; and 2) blanket statements of authorization under 14 

CFR Part 212 to permit the TACA Group to display the “AV” designator code on flights operated by the TACA Group in 

U.S. markets in which both the operator and Avianca hold current Department authority to conduct scheduled foreign air 

transportation of persons, property and mail, further to the proposed common branding arrangement described herein.

In the implementation of the authority granted here, as noted above and agreed to by the joint applicants, they must also 

comply with the consumer disclosure conditions previously imposed on the common branding authority granted to the 

TACA Group carriers in Docket DOT-OST-2004-17355 by Orders 2005-1-22, 2006-11-10, and subsequent renewals of 

that authority. We have attached those conditions as Appendix C.

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 joint applicants were qualified to perform the 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

 4 The joint applicants note that condition 2(a) of Order 2006-11-10 required the TACA Group carriers to (among other things) "stop 

using other two-letter designator codes [i.e., other than TA]." The joint applicants request that any similar condition imposed by the 

Department permit a transition period wherein the joint applicants will continue to hold out some service under the TACA trade name 

and designator code as it is gradually phased out of U.S. service, presently expected to be completed during the first quarter of 2013. 5 The homelands of the joint applicants are as follows: TACA – El Salvador; TACA Peru – Peru; LACSA- Costa Rica;

Aviateca – Guatemala; and Avianca – Colombia.
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 Statements of Authorization granted are subject to the following conditions: 

(a) The statement of authorization will remain in effect only as long as the TACA Group and Avianca, as appropriate, 

continue to hold the underlying authority to operate the code-share services at issue, and the code-share agreement 

providing for the code-share operations remains in effect. 

(b) The TACA Group and Avianca, as appropriate, must promptly notify the Department if the code-share agreement 

is no longer effective or if the carriers decide to cease operating all or a portion of the approved code-share services. 

(Such notice should be filed in Docket OST-2012-0136.) 

(c) The TACA Group and Avianca, as appropriate must notify the Department no later than 30 days before they begin 

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

be served, which carrier will be operating the aircraft in the code-share market added, and the date on which the 

service will begin. Such notices should be filed in Docket DOT-OST-2012-0136.

1

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

amendment 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 

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; and that the passenger liability of the operating carrier be unaffected. 

(e) The authority granted here is specifically conditioned so that neither the TACA Group nor Avianca shall give any 

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

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

 1 In its application, the TACA Group provides notice of its intent to provide open skies code-share services in accordance with the 

Department's Notice "In the Matter of Blanket Notification of Code-Share Service to Open-Skies Partners and Points," dated

February 9, 2009. The TACA Group states that it will provide at least 30-day’s notice before commencing new code-share 

services to non-open skies points.
Appendix C

In the implementation of the authority granted here the joint applicants must:

a) Identify their flights to and from the United States under the common “AV” designator code, and stop 

using other two-letter designator codes.1 In addition to the use of the “AV” code, each carrier must 

identify its U.S. flights by using dedicated flight numbers specifically assigned to each carrier;

b) Fully disclose their use of the common code. In this connection, advertisements must include 

notification to consumers that flights are operated by a TACA Group carrier and/or Avianca, and must 

identify each carrier’s full legal name as well as its common name in cases where the common name may 

not be apparent;

c) In holding out their flights in all editions of the Official Airline Guide, have those flights shown with 

the “AV” designator code and a flight number from each carrier’s dedicated series of flight numbers. 

Listed adjacent to the flight number must be an easily identifiable mark, such as an asterisk, diamond, 

arrow, or plus sign, notifying customers that they should consult the OAG further for identity of the 

operating carrier. Disclosure of the operating carrier’s identity must be made in the back of the OAG in 

the section devoted to disclosure of code-share services, and must be presented in a manner that is 

consistent with code-share disclosures;

d) Disclose the operating carrier’s identity in global distribution system (GDS) displays. In addition to

using the “AV” designator code coupled with a flight number from the dedicated series, appearing in the 

“segment sell” display immediately beneath each flight must be a statement identifying the operating 

carrier and the marketing carrier;

e) Prominently disclose on each passenger’s itinerary the operating carrier’s identity, and the itinerary 

must show the flight’s origin and destination cities, the times of departure and arrival, and the flight 

number. Immediately under this information, the itinerary must clearly identify the operating and 

marketing carrier. In the case of multiple segments or roundtrip itineraries, the carriers must clearly 

disclose the operating and marketing carrier for each flight segment;

f) Disclose the operating carrier on each passenger’s paper ticket, boarding pass, or online check-in 

document. Whichever of these sources the carriers choose to use for disclosure must also show each 

flight number from the dedicated flight-number series with the “AV” code and must also clearly show the 

operating carrier’s identity;

g) Provide reservation and customer service offices with disclosure notices that must be read to customers 

before making reservations. This disclosure must notify each consumer of the identities of the operating 

and marketing carriers for the “AV” coded flight; and

h) Comply with the consumer-disclosure provisions of the Department’s regulations under 14 CFR Part 

257;

 1 We will permit the joint applicants to temporarily continue use of the TACA trade name and designator code through March 31, 

2013, as they transition to phasing out the name and code from their U.S. operations.