UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

Under a Memorandum of Discussions (MOD) signed February 25, 1997, the United States and Chile agreed to amend the Agreement between the United States and Chile of 1993 to provide that designated airlines of the United States may conduct scheduled combination operations for the period December 1, 1996, through December 31, 1998, as follows

(A) Designated U.S. airlines may operate up to a combined total of:[1]
1. Twenty-one (21) weekly nonstop flights between authorized points in the U.S.-Chile market on a year-round basis;

2. Seven (7) weekly nonstop flights between authorized points in the U.S.-Chile market from December 15 through February 28 and from June 15 through August 15 inclusive. Effective June 15, 1997, these flights may be operated on a year-round basis; and

3. Seven (7) weekly flights between authorized points in the U.S.-Chile market with at least one obligatory intermediate stop, on a year-round basis. Effective December 1, 1998, these flights may be operated nonstop.

(B) Effective December 15, 1997, U.S.-designated airlines may operate up to a combined total of seven (7) additional weekly nonstop flights between authorized points in the U.S.-Chile market, on a year-round basis.

Routes for U.S.-designated airlines are: (1) from the United States via intermediate points to Arica, Antofagasta, and Santiago and beyond; and (2) from the United States via intermediate points, to six points in Chile (other than those mentioned in subparagraph 1 above) to be served on a code-share basis only. These points may be served as coterminals with points in subparagraph (1) above. [2]

All of the frequencies under paragraph (A) above have been and continue to be operated by American Airlines, Inc., and United Air Lines, Inc. [3] We do not intend to subject these frequencies to reallocation and, thus, deem these frequencies allocated to these carriers. The frequencies under paragraph (B) above, on the other hand, are available for allocation to any U.S. certificated carrier(s) and are the subject of this notice.

Therefore, we invite all U.S. certificated carriers interested in using the 7 additional weekly frequencies that become available December 15, 1997, for nonstop service in the U.S.-Chile market on a year-round basis, to file applications with the Department. Such applications should be filed by April 22, 1997. Answers to such applications should be filed by April 29, 1997; replies to answers should be filed by May 5, 1997.

Carriers without the requisite operating authority should file certificate applications.[4] Carriers with the necessary underlying authority need only file requests for designation and frequency allocation. All applicants should specify at a minimum the markets to be served, the number of frequencies requested, the aircraft to be used, the proposed startup date, and evidence of the carrier's underlying economic authority, including route integration authority, if applicable. Except for the filing dates, and information required above, certificate applications should be filed pursuant to Subpart Q of Part 302 of the Department's regulations, and requests for statements of authorization, if applicable, should comply with Parts 207 and 212 of those regulations. Applications should be filed with the Department, Dockets, Room PL-401, 400 Seventh Street, S.W., Washington, D.C. 20590. [[5] Further procedures for acting on the applications filed, if necessary, will be established by future Department order.

Action taken by:

Paul L. Gretch, Director Office of International Aviation under assigned authority (14 CFR 385)

(SEAL)

Dated: April 3, 1997

[1] All authorized flights may include extra sections and may be operated with any aircraft except B-747 or equivalent aircraft (B-777 and equivalent aircraft may be operated). In addition, U.S.-designated carriers may enter into cooperative marketing arrangements. such as blocked-space, code-sharing or leasing arrangements, with Chilean airlines or third-country carriers. Each code-share flight shall be counted as one frequency charged against the operating carrier only, regardless of the number of codes carried.

[2] These points are to be selected by the Government of the United States, with 30 days’ notification to the Government of Chile, and may be changed as often as desired, upon 30 days’ notice to the Government of Chile.

[3] The 21 weekly frequencies for nonstop service on a year-round basis are operated by American (14 weekly frequencies) and United (7 weekly frequencies); the 7 weekly frequencies for nonstop service on a seasonal basis are operated by American; and the 7 weekly frequencies for one-stop service on a year-round basis are operated by United.

[4] Carriers proposing code-share services must provide as a part of their applications requests for statements of authorization to serve the affected markets in conjunction with their code-share partners, and copies of the relative cooperative service arrangements.

[5] The original submission is to be unbound and without tabs on 8½" x 11" white paper using dark ink (not green) to facilitate use of the Department’s docket imaging system.