BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. -------------------------------------------------------------- Application of : : REPUBLIC AIRLINE INC. : Docket DOT-OST-2012- : for a Statement of Authorization pursuant to : 14 C.F.R. Part 212 (Avianca and TACA Carriers : Code Share) : -------------------------------------------------------------- APPLICATION OF REPUBLIC AIRLINE INC. FOR A STATEMENT OF AUTHORIZATION Republic 1 d/b/a United Express applies for blanket statement of authorization pursuant to Part 212 of the Department s regulations 2 to facilitate code share services with Avianca and the TACA Carriers, 3 all of which are code share partners of United. 4 Specifically, Republic requests authorization to display the designator codes of Avianca ( AV ) and the TACA Carriers ( TA ) 5 on flights it operates as United Express between points in the United States and between U.S. points and points in third countries in accordance with the 2011 Air Transport Agreement 1 Common names are used for airlines. 2 United is filing this application on behalf of and with the permission of Republic. 3 In this application, TACA Carriers collectively refers to the following carriers which entered into a letter agreement with Republic on August 22, 2012: TACA International Airlines, S.A. ( TACA International ), Lineas Aereas Costarricenses, S.A. ( LACSA ), and Trans American Airlines, S.A. d/b/a TACA Peru ( TACA Peru ). 4 See, Notice of Action Taken dated October 28, 2011 in Docket DOT-OST-2011-0163 (Avianca/United); Department Action dated May 18, 2006 in docket DOT-OST-2006-24078 (TACA International and LACSA/United); and Department Action dated September 11, 2006 in DOT-OST-2006-25602 (TACA Peru/United). 5 Since 2005, TACA, TACA Peru and LACSA have been authorized to operate under the common TACA trade name and TA designator code. See, Docket DOT-OST-2004-17355. This is expected to change in the first quarter of 2013. As the Department is aware, the TACA Carriers are seeking DOT authorization to display the AV designator code in the first quarter of 2013 for services to/from the United States. See, Joint Application of Avianca and the TACA Carriers dated August 23, 2012 in Docket DOT-OST-2012-0136.

Application of Republic Page 2 between the United States and Colombia ( U.S.-Colombia Open Skies Agreement ) 6 and the Open Skies Agreements between the United States and the home countries of each of the TACA Carriers (El Salvador, Costa Rica and Peru). 7 The carriers will implement their code share as soon as all regulatory approvals are obtained. In support of this Application, Republic states the following: 1. Republic has executed letter agreements with Avianca and the TACA Carriers, under which Republic will carry the designator codes of these carriers on certain United Express flights that Republic operates. Redacted copies of these letter agreements are attached. 2. Republic is an air carrier holding a certificate of public convenience and necessity and exemptions authorizing it to operate scheduled air services in the United States and foreign markets. 8 It is also a new participant in the United Express commuter program. As such, United and Republic wish to make these services available for code share purposes to Avianca and the TACA Carriers, thereby increasing the online service offerings between United s North American network and the home networks of Avianca and the TACA Carriers. 6 While the U.S.-Colombia Open Skies Agreement became provisionally effective upon exchange of notes on August 26, 2011, there is a brief transition period before it becomes fully effective at the end of 2012. See Article 18 of the U.S.-Colombia Open Skies Agreement and Sections 1, 3 and 4 of the Annex to Agreement. During the transition period, code share limits were lifted effective January 1, 2012. See paragraph 2.d of Section 2 of the Annex. 7 Republic will display the AV and TA designator codes only until the TACA Carriers complete the necessary steps to implement their use of the Avianca trade name and the AV designator code in the carriers combined marketing and sale of services to/from the United States. At present, the carriers planned collective use of the Avianca trade name and the AV designator code is pending DOT approval. See, Joint Application of Avianca and the TACA Carriers dated August 23, 2012 in Docket DOT-OST-2012-0136. With DOT s approval, Avianca and the TACA Carriers plan to implement the collective use of the Avianca trade name and AV designator code in the first quarter of 2013. At such time, Republic will display only the AV designator code on its services pursuant to this statement of authorization. If the Department believes that this statement of authorization must be amended to reflect the collective use of the AV designator code by Avianca and the TACA Carriers, Republic respectfully requests the Department to sua sponte amend this statement of authorization upon Avianca and the TACA Carriers collective use of the AV designator code. 8 See, Order 2009-9-13 (Interstate Certificate) and 2008-4-26 (Open Skies Certificate).

Application of Republic Page 3 3. The requested code share authority is fully consistent with the U.S.-Colombia Open Skies Agreement 9 and the U.S. Open Skies Agreements with El Salvador, Costa Rica and Peru. In addition, the requested authority is consistent with Department precedent in cases involving similar code share arrangements between U.S. and foreign air carriers. 10 Pursuant to the terms of such agreements, foreign carriers designated by their respective governments to serve the United States, such as Avianca and the TACA Carriers, have been authorized to provide foreign air transportation (including code share services) between the United States and their respective home countries. Avianca and the TACA Carriers already hold the requisite underlying economic authority for purposes of holding out the code share services proposed herein. 11 4. The requested code share authority is also consistent with the public interest because it will benefit the traveling and shipping public by providing online service between U.S. cities and points around the globe, via United s domestic hubs and the U.S. gateways of Avianca and the TACA Carriers. 9 Although the U.S.-Colombia Open Skies Agreement will be fully implemented at the end of 2012, code share limits were lifted effective January 1, 2012. See paragraph 2.d of Section 1 of the Annex. In addition, paragraph 3 of Section 2 of the Annex exempts code share arrangements from frequency limitations. 10 See, Dockets DOT-OST-2011-0004 (Republic/Lufthansa) and -2010-0013 (Republic/TAP). See also Dockets DOT-OST-2012-0139, OST-2012-125 and OST-2008-0068 in which the Department approved similar code share arrangements between various United Express operators and foreign carrier partners, among others. 11 See, Order 86-9-36 (foreign air permit) and Notice of Action Taken dated October 28, 2011 in Docket DOT-OST-2011-0164 for Avianca. Each of the TACA Carriers holds Open Skies exemption authority: TACA International and LACSA currently have timely filed renewal applications pending in Dockets DOT-OST-1997-2674 and DOT-OST-1997-2682, respectively; and, TACA Peru s exemption authority was renewed by Notice of Action Taken dated May 19, 2009 in Docket DOT-OST-2000-8054. If the Department believes that Avianca s exemption authority in Docket DOT-OST-2011-0164 is limited to its code share with United, Republic requests the Department to amend Avianca s authority to the extent necessary to encompass its code share with Republic while the carriers await the full effectiveness of the U.S.-Colombia Open Skies Agreement.

Application of Republic Page 4 5. Republic will accept and abide by the Department s standard conditions and notice requirements imposed on code share arrangements. 6. Republic requests that the Department issue the statements of authorization applied for herein for an indefinite period, consistent with Department practice. 7. Republic is not a CRAF participant, so issuance of the requested blanket statements of authorization will not affect the CRAF program. For the foregoing reasons, Republic urges the Department to grant its application for a blanket statement of authorization as described above and any other relief as the Department considers consistent with this application and the public interest. Respectfully submitted, Dan Weiss Managing Director International Affairs and Regulatory UNITED AIR LINES, INC. Submitted on behalf of: Ethan J. Blank For REPUBLIC AIRLINE INC. Vice President and General Counsel 8909 Purdue Road, Suite 300 Indianapolis, IN 46268

CERTIFICATE OF SERVICE I hereby certify that I have this date served a copy of the foregoing document on all persons named below by causing a copy to be sent via email: msinick@ssd.com (Alaska) francis.heil@aa.com james.kaleigh@aa.com robert.wirick@aa.com rsilverberg@sgbdc.com (ABX/Air Transport Intl.) jrichardson@johnlrichardson.com (Amerijet) jcanny@amerijet.com stephen.lachter@lachterlaw.com (ASTAR) rpommer@atlasair.com sascha.vanderbellen@delta.com charters@evergreenairlines.com (Evergreen) cefelts@fedex.com anbird@fedex.com nssparks@fedex.com robert.cohn@hoganlovells.com (Frontier) patrick.rizzi@hoganlovells.com jhill@dowlohnes.com (Hawaiian/JetBlue) matwood@cozen.com (Kalitta) kevin.montgomery@polaraircargo.com bob.kneisley@wnco.com leslie.abbott@wnco.com dkirstein@yklaw.com (Spirit) jyoung@yklaw.com (Spirit) john.fredericksen@suncountry.com anita.mosner@hklaw.com (UPS) jennifer.nowak@hklaw.com howard.kass@usairways.com jegillick@zsrlaw.com (Virgin America) john.varley@virginamerica.com mlbenge@zsrlaw.com (World) william.stallings@usdoj.gov dwight.moore@ustranscom.mil john.allen@faa.gov Annalei Avanceña International Regulatory Advisor United Air Lines, Inc. September 17, 20122