This serves as interim notice to the public of the action described below, taken orally by the Department official indicated; the confirming order or other decision document will be issued as soon as possible. 

Applicant: LINEA AEREA NACIONAL CHILE S.A.--LAN CHILE AIRLINES 

Date Filed: August 26, 1996 

Relief requested: (1) Exemption from 49 U.S.C. 41301 to serve Buenos Aires, Argentina, as an intermediate point on Lan Chile's existing Department authority to conduct scheduled all-cargo operations between Santiago, Chile, and the U.S. coterminal points Miami, Florida, and New York, New York; and (2) special authority under Part 216 of the Department's regulations to commingle traffic moving in foreign air transportation with traffic not moving in foreign air transportation, for one year. 

If renewal, date and citation of last action: Notice of Action Taken January 8, 1997, in this Docket. 

Applicant representative: Celestino Pena 305-381-6252 

Responsive pleadings: Same as set forth in our Notices of Action Taken September 19 and November 27, 1996, and January 8, 1997. Specifically, on September 10, 1996, Fine Air filed an answer to Lan Chile's request. Fine Air stated that it did not oppose Lan Chile's request. It did, however, urge the Department, in acting on future requests of foreign carriers for Fifth Freedom authority, to curtail Latin American carriers' Fifth Freedom authorities in markets where Third and Fourth Freedom opportunities for U.S. carriers are limited. (We addressed Fine Air's comments in our September 19, 1996, Notice.) 

On September 17, 1996, Continental filed an answer and a motion to file late (we granted the motion.) Continental stated that it did not object to grant of Lan Chile's request through November 30, 1996, but urged us not to grant this authority beyond that date unless the Government of Chile (GOC) authorizes it to conduct nonstop Newark-Chile scheduled combination services. Continental stated that the provisions of the U.S.-Chile 1994 Exchange of Notes, which preclude the United States from designating an additional carrier and limit frequencies available to U.S. carriers, expire December 1, 1996; that it has been designated by the United States to conduct its proposed services to Chile and is applying to the GOC for that authority; and that the GOC has indicated that it will seek continuing restrictions on U.S. designations and frequencies beyond November 30, 1996. 

Action: Extended through September 19, 1997 

Action date: February 28, 1997 

Effective dates of authority granted: February 28, 1997-September 19, 1997 

Basis for approval (bilateral agreement/reciprocity): U.S.-Chile Air Transport Agreement. 

Standard exemption conditions (attached) 

x Foreign air carrier permit (Order 87-8-55) 

Special conditions/partial grant/denial basis/remarks: In reaching our decision to extend Lan Chile's authority, we found that the subject all-cargo authority is bilaterally agreed. We found further that the aviation negotiations between the Governments of the United States and Chile (referred to in our previous Notices in this Docket) have now produced a new bilateral arrangement, initialed February 25, 1997, in Santiago, that will offer additional economic opportunities for the carriers of both countries. In light of these circumstances, we found that the public interest warranted extension of the subject authority through September 19, 1997. 

Action taken by: 

Paul L. Gretch, Director 

Office of International Aviation under assigned authority (14 CFR 385) 

(Petitions for review may be filed from now until 10 days after the service date of the confirming order/letter. Filing of a petition shall not stay the effectiveness of this action.)