BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

Transcription

1 BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Joint Application of AEROVIAS DEL CONTINENTE AMERICANO, S.A. A VIANCA and AIR CHINA LIMITED for blanket statements of authorization under 14 C.F.R. part 212 (third country codesharing Docket DOT-OST Application of AIR CHINA LIMITED for an exemption under49 U.S.C (third country codesharing Docket DOT-OST JOINT APPLICATION OF AEROVIAS DEL CONTINENTE AMERICANO, S.A. A VIANCA AND AIR CHINA LIMITED George N. Tompkins, Jr. Wilson, Elser, Moskowitz, Edelman & Dicker LLP 150 East 42nd Street New York, N.Y Tel: ( Ext Fax: ( David M. Endersbee Jonathon H. Foglia Barbara M. Marrin Zuckert, Scoutt & Rasenberger, L.L.P. 888 Seventeenth Street, NW, Suite 700 Washington, D.C Tel: ( Fax: ( Counsel for Air China Limited Counsel for Aerovias del Continente Americano, S.A. Avianca November 21, 2016 The Joint Applicants are requesting expedited processing of this Joint Application and will poll the U.S. carrier representatives shown on the attached Service List and inform the Department of the results of that poll.

2 BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Joint Application of AEROVIAS DEL CONTINENTE AMERICANO, S.A. A VIANCA and AIR CHINA LIMITED for blanket statements of authorization under 14 C.F.R. part 212 (third country codesharing Docket DOT-OST Application of AIR CHINA LIMITED for an exemption under 49 U.S.C (third country codesharing Docket DOT-OST JOINT APPLICATION OF AEROVIAS DEL CONTINENTE AMERICANO, S.A. A VIANCA AND AIR CHINA LIMITED Aerovias del Continente Americano, S.A. Avianca ("Avianca" and Air China Limited ("Air China" (collectively, the "Joint Applicants" hereby jointly apply for blanket statements of authorization under 14 C.F.R. part 212, and Air China hereby applies for a codeshare-only exemption pursuant to 49 U.S.C , in order to engage in codeshare operations as more fully described herein. The Joint Applicants respectfully request expedited treatment of this Joint Application and a waiver of the 45-day advance filing requirement in 14 C.F.R ( d(2. In support of this Joint Application, the Joint Applicants state as follows: 1. Further to a codesharing agreement, the Joint Applicants have agreed to engage in reciprocal codeshare operations involving the transport of codeshare traffic between points in the

3 Dockets DOT-OST ; DOT-OST November 21, 2016; Page 2 People's Republic of China ("China", on the one hand, and points in Colombia, on the other hand, via U.S. connect points. Pursuant to these arrangements, Avianca will display Air China's "CA" designator code on flights between U.S. points and points in Colombia and Air China will display Avianca's "AV" designator code on flights between U.S. points and points in China. The Joint Applicants intend to initiate these codeshare operations promptly upon receipt of all necessary governmental approvals. The initial U.S. segments are listed in Appendix A hereto. 2. Avianca requests a blanket statement of authorization under 14 C.F.R to display Air China's "CA" designator code on flights operated by Avianca in conjunction with foreign air transportation of persons, property and mail between any point or points behind Colombia, via any point or points in Colombia and any intermediate point or points, to any point or points in the United States and beyond. 3. Air China requests a blanket statement of authorization under 14 C.F.R to display Avianca's "AV" designator code on flights operated by Air China in conjunction with foreign air transportation of persons, property and mail between any point or points behind China, via any point or points in China and any intermediate point or points, to any point or points in the United States and beyond. 4. Air China additionally requests a codeshare-only exemption under 49 U.S.C authorizing Air China to provide scheduled foreign air transportation of persons, property and mail, on a codeshare-only basis with A vianca, between points in the United States and points in third countries, in conjunction with Air China's scheduled air services. 5. Under the codeshare arrangements described herein, the Joint Applicants will carry traffic moving between points in China and points in Colombia only; the codeshare services will not be available to codeshare traffic originating at or destined for points in the United States.

4 Dockets DOT-OST ; DOT-OST November 21, 2016; Page 3 6. Air China holds a foreign air carrier permit which authorizes it to engage in foreign air transportation of persons, property, and mail between specified points in China and specified points in the United States, Order (Jul. 11, 2007, as well as various exemption authorities authorizing Air China to engage in foreign air transportation of person, property and mail between additional specified points in China and specified points in the United States. See, e.g., Notice of Action Taken in Docket DOT -OST (Apr. 11, 2016; Notice of Action Taken in Docket DOT-OST (Jan. 29, 2016; Notice of Action Taken in Docket DOT-OST (Feb. 10, 2014 (timely renewal pending. Air China requests that the Department take official notice of information on file with the Department establishing Air China's fitness to provide the proposed service, pursuant to Rule 24 of the Department's Rules of Practice. 7. A vianca holds exemption authority authorizing it to engage in scheduled foreign air transportation of persons, property and mail from points behind Colombia, via Colombia and intermediate points, to points in the United States and beyond. See Notice of Action Taken in Docket DOT-OST (Jan. 28, 2013 (timely renewal pending. Avianca requests that the Department take official notice of information on file with the Department establishing A vianca' s fitness to provide the proposed service, pursuant to Rule 24 of the Department's Rules of Practice. 8. The codeshare operations for which approval is sought herein are in the public interest and consistent with the air transport agreements between the United States and the Joint Applicants' respective homelands. Article 8.7 of the U.S.-Colombia Air Transport Agreement provides that airlines of Colombia, in operating or holding out authorized services, "may enter into cooperative marketing arrangements[,] such as... code-sharing... arrangements, with... an airline or airlines of either Party; and an airline or airlines of a third country." Furthermore, Article 11, paragraph 5, subparagraph 1 of the U.S.-China Air Transport Agreement, as amended, provides

5 Dockets DOT-OST ; DOT-OST November 21, 2016; Page 4 that in operating or holding out authorized services, airlines designated by China "shall have the right to enter into cooperative marketing arrangements, including... code-sharing arrangements with... [an] airline or airlines of either Party, and an airline or airlines of a third country," including, as provided for in subparagraph 1(a, "on routes that include points in the territories of the Parties and... any behind, intermediate and beyond points in third countries." 1 9. The proposed codeshare operations will provide new consumer benefits, enhanced competition and important new online service between China and points in Colombia. Indeed, as the Department itself has long recognized: Increased international code sharing and other cooperative arrangements can benefit consumers by increasing international service options and enhancing competition between carriers, particularly for traffic to or from cities behind major gateways. By stimulating traffic, the increased competition and service options should expand the overall international market and increase overall opportunities for the aviation industry A grant of the requested authorizations is consistent with Department precedent granting statements of authorization for cooperative marketing arrangements between airlines of China and airlines of third countries. See, e.g., Department Approval # (undocketed (long-term wet lease approval in connection with blocked space arrangement between Air China and LAN Cargo, S.A.. The requested authorizations also are consistent with Department 2 United Airlines, Inc. ("United" codeshares with Air China on each of the U.S.-China routes, and with Avianca on certain of the U.S.-Colombia routes, identified in Appendix A hereto. Article 11, paragraph 5, subparagraph (1(a of the U.S.-China Air Transport Agreement provides, "A Chinese airline or airlines may code share with any U.S. airline or airlines without limitation. Subject to the mutual agreement of the participating Chinese and U.S. airlines, such code share arrangements may also involve airlines of third countries." To the extent the Department requires confirmation regarding the mutual agreement of the participating U.S. and Chinese carriers, United has provided the Joint Applicants with its consent to the codesharing arrangements which are the subject of this Joint Application. Statement of United States International Air Transportation Policy, 60 Fed. Reg (May 3, 1995.

6 Dockets DOT-OST ; DOT-OST November 21, 2016; Page 5 precedent granting statements of authorization for codeshare operations between foreign carriers on flights operated to and from the United States and beyond. See, e.g., Department Action on Application in Docket DOT -OST (Czech Airlines j.s.c. and Korean Air Lines Co., Ltd. reciprocal codesharing (Mar. 13, 2013; Department Action on Application in Docket DOT-OST (Air New Zealand Limited and Virgin Atlantic Airways Limited reciprocal codesharing (Feb. 15, The Joint Applicants request that the blanket statements of authorization be granted for an indefinite period, so long as the codeshare agreement continues in effect, consistent with the Department's practice in previous codeshare proceedings. Additionally, Air China requests that its requested codeshare-only exemption be issued for a period of not less than one year, consistent with the Department's usual policy of granting codeshare-only exemption authority to carriers of China. Should the codeshare agreement cease to be effective, Air China and/or Avianca will notify the Department accordingly. 12. The Joint Applicants will conduct their codeshare operations in compliance with Part 257 of the Department's economic regulations and will accept the Department's standard conditions imposed on codeshare arrangements such as those described herein. 13. The Joint Applicants will comply with the Department's standard 30-day advance notice requirement prior to the initiation of any future codeshare operations under the blanket statement of authorization requested herein.

7 Dockets DOT-OST ; DOT-OST November 21, 2016; Page 6 WHEREFORE, for the foregoing reasons, the Joint Applicants respectfully request that the Department grant (i blanket statements of authorization to Air China and A vianca, and (ii a codeshare-only exemption to Air China, as more fully described herein, so that the Joint Applicants may implement their proposed codeshare arrangements promptly. The Joint Applicants further request that the Department grant such other or additional relief as the Department considers consistent with this Joint Application and the public interest. Respectfully submitted, Jle,,1, #. 7iJJHpJ,;w, 1,~, G ~ T eorge N. omp k' ms, Jr. '/'/11/JI r Wilson, Elser, Moskowitz, Edelman & Dicker LLP 150 East 42nd Street New York, N.Y Tel: ( Ext Fax: ( Jonathon H. oglia Barbara M. Marrin Zuckert, Scoutt & Rasenberger, L.L.P. 888 Seventeenth Street, NW, Suite 700 Washington, D.C Tel: ( Fax: ( Counsel for Air China Limited Counsel for Aerovias del Continente Americano, S.A. A vianca November 21,2016

8 Appendix A Display of Air China's "CA" Designator Code on flights operated by Avianca: Washington, D.C.-Bogota, Cololmbia New York, N.Y.-Bogota, Cololmbia New York, N.Y.-Cartagena, Cololmbia Los Angeles, CA- Bogota, Cololmbia Display of Avianca's "AV" Designator Code on flights operated by Air China: Washington, D. C.-Beijing, People's Republic of China New York, N.Y.-Beijing, People's Republic of China Los Angeles, CA-Beijing, People's Republic of China

9 CERTIFICATE OF SERVICE I hereby certify that a copy of the foregoing Joint Application was served this 21st day of November 2016, via transmission on the following persons: ==-'--'=="'-=====(Counsel for JetBlue Airways ~~~~~~~~~~ (Counsel for JetBlue Airways ~~"--====== (Counsel for Kalitta Air =~====-..:=:..:=-:..:.-=-='-'-'--'(Counsel for Southern Air ~~-"-===.:_:~=-=-==(Counsel for United Airlines ====~..:...===(Counsel for United Airlines ~~~~~~~~~(Counsel for United Parcel Service.c=="-"'-'-=~===-'-'-'-'= (Counsel for United Parcel Service.J_J_::~~:;L..L!.=~= (Counsel for Spirit Airlines =:.:..===-"-==-.:..:'-'-==(Counsel for Spirit Airlines t ~ --;;>..-sr--- Bryant Templeton