BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. 2016 U.S.-CUBA FREQUENCY ALLOCATION PROCEEDING DOCKET OST-2016-0021 Application of EASTERN AIR LINES GROUP. INC. for an exemption and frequency allocation (U.S.-Cuba scheduled, combination service APPLICATION OF EASTERN AIR LINES GROUP, INC. FOR AN EXEMPTION AND FREQUENCY ALLOCATION Pursuant to Order 2016-2-12 and 49 U.S.C. 40109(c, Eastern Air Lines Group, Inc. ( Eastern respectfully applies for the following authority to engage in scheduled, foreign air transportation of persons, property, and mail between any point or points in the United States and any point or points in Cuba: an exemption from the provisions of 49 U.S.C. 41101, for an initial, two-year period, authorizing Eastern to operate such service; and an allocation of combination service frequencies, of indefinite duration, so as to permit Eastern to operate one daily flight between Miami and Havana, three weekly flights between Miami and Camagüey, and three weekly flights between Miami and Holguín.

Eastern Air Lines Application Page 2 In support of this application, Eastern states as follows: 1. Eastern is an air carrier headquartered at Miami International Airport in Miami, Florida. It is a U.S. citizen within the meaning of 49 U.S.C. 40102(a(15 and is fit, willing, and able to provide the scheduled air transportation it proposes in this application. Eastern currently holds certificates of public convenience and necessity authorizing interstate and foreign charter air transportation of persons, property, and mail issued by Orders 2015-4-22 and 2015-5-11. Under that authority, Eastern today operates ad hoc and program charters within the United States and between the U.S. and Cuba; expanded charter services to the Dominican Republic and Guyana also are planned for 2016. Information officially noticeable under Rule 24(g of the Department s Procedural Regulations supports a finding that Eastern is fit to operate the scheduled service proposed herein, which is similar in scope and stage length to existing charter operations. Eastern now operates four B737-700 and -800 aircraft, and the Department has authorized it to operate up to five such aircraft. 2. A comparatively recent entrant to the longstanding U.S.-Cuba passenger charter market, Eastern has operated, for ViajeHoy d/b/a Havana Air, approximately 90 charter flights monthly between Havana and five Cuban cities: Havana, Camagüey, Holguín, Santa Clara, and Santiago de Cuba. An illustrative weekly schedule of these charters follows:

Eastern Air Lines Application Page 3 Eastern and Havana Air have enjoyed excellent load factors, often exceeding 90%, on these flights. 3. Eastern welcomes the additional service opportunities made available by the February 16, 2016 U.S.-Cuba Memorandum of Understanding. If granted the new, U.S.-Cuba authority it seeks, Eastern proposes to operate the following flights as scheduled service:

Eastern Air Lines Application Page 4 SCHEDULED SERVICE PROPOSAL Flight number Day of week Dept. Arr Equip Seating A. Miami (MIA-Havana (HAV-Miami EA 3011 MIA-HAV Daily 0800 0900 737-800 18F/129Y EA 3012 HAV-MIA Daily 1000 1100 737-800 18F/129Y B. Miami-Camagüey (CMV-Miami EA 3013 MIA-CMV Thu, Fri, Sun 1200 1300 737-800 18F/129Y EA 3014 CMV-MIA Thu, Fri, Sun 1400 1500 737-800 18F/129Y C. Miami-Holguín (HOG-Miami EA 3015 MIA-HOG Mon, Wed, Sat 1200 1300 737-800 18F/129Y EA 3016 HOG-MIA Mon, Wed, Sat 1400 1500 737-800 18F/129Y Eastern would maintain the proposed schedule year-round, without seasonal variations, and would expect to make the limited hold space available after baggage is loaded for courier, small package, and mail traffic. 4. Should the Department not be able to allocate to Eastern the full complement of frequencies it requests, Eastern s city-pair preference is in the order listed above. Eastern would accept a minimum award of one weekly frequency in any of the city-pairs shown, and its preference in any reduced allocation would be for weekend days over the weekdays listed above. To the extent primary authority is not available to allocate to Eastern, it would also accept a grant of backup authority on the terms described in Order 2016-2- 12. 5. Eastern s goal is to be able to commence scheduled, U.S.-Cuba service on or before July 1, 2016. The airline is working toward obtaining the