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

Application of Aerolane, Lineas Aereas Nacionales del Ecuador S.A. d/b/a LAN Ecuador Docket OST-2009-

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for an exemption and statement of authorization (wet lease to LAN Airlines)

APPLICATION OF AEROLANE, LINEAS AEREAS NACIONALES DEL ECUADOR S.A. D/B/A LAN ECUADOR FOR AN EXEMPTION AND FOR A STATEMENT OF AUTHORIZATION

Communications with respect to this document should be sent to: Charles J. Simpson Lonnie Anne Pera David M. Endersbee ZUCKERT, SCOUTT & RASENBERGER, L.L.P. 888 Seventeenth Street, N.W., Suite 700 Washington, DC 20006 Tel: (202) 298-8660 Fax: (202) 342-0683 Email: [email protected] [email protected] [email protected] Counsel for Aerolane, Lineas Aereas Nacionales del Ecuador S.A. d/b/a LAN Ecuador

December 16, 2009 NOTICE: LAN Ecuador requests expedited treatment of this application. LAN Ecuador will poll all interested parties and will inform the Department of the results.

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

)

Application of Aerolane, Lineas Aereas Nacionales del Ecuador S.A. d/b/a LAN Ecuador for an exemption and statement of authorization (wet lease to LAN Airlines)

) ) ) ) ) ) )

Docket OST -2009-

--------------------------------~) Dated: December 16, 2009

APPLICATION OF AEROLANE, LiNEAS AEREAS NACIONALES DEL ECUADOR S.A. D/B/A LAN ECUADOR FOR AN EXEMPTION AND FOR A STATEMENT OF AUTHORIZATION

Pursuant to 49 U.S.c. § 40109 and Subpart C of the Department's Procedural Regulations, Aerolane, Lineas Aereas Nacionales del Ecuador S.A. d/b/a LAN Ecuador hereby requests that the Department (1) grant an exemption from 49 U.S.C. § 41301 to conduct foreign charter air transportation services of passengers; (2) issue a statement of authorization to engage in a long-term wet lease of aircraft to LAN Airlines, S.A. ("LAN"); and (3) waive the Department's 45 day advance notice requirement. LAN Ecuador requests that the Department grant the statement of authorization and exemption authority for a period of at least one year. In support of this application, LAN Ecuador respectfully states as follows: 1.

The applicant's full name and corporate address are: Aerolane, Lineas Aereas

Nacionales del Ecuador S.A. d/b/a LAN Ecuador, Edificio Ruminahui, Avenida Amazonas y Pasaje Guayas E3-131, Ruminahui, Quito, Ecuador.

2.

The name and official address of the government transport authority in Ecuador

having regulatory jurisdiction over LAN Ecuador is: Consejo Nacional de Aviaci6n Civil / Direccion General de A viaci6n Civil Buenos Aires OE 1-53 y Av. 10 de Agosto Quito, Ecuador 3.

LAN Ecuador holds exemption authority to (1) engage in scheduled foreign air

transportation of persons, property and mail between points in Guayaquil and Quito, Ecuador, on the one hand, and Miami, Florida, and New York, New York, on the other hand; and (2) engage in scheduled foreign air transportation of property and mail between Guayaquil and Quito, Ecuador, on the one hand, and Los Angeles, California, on the other hand. Notice of Action Taken ("NOAT"), Docket OST-2003-14291 (Dec. 21,2007). LAN Ecuador also holds an exemption to engage in foreign charter air transportation of property and mail between a point or points in Ecuador and a point or points in the United States and between points in the United States and third countries. NOAT, Docket OST-2005-23236 (Dec. 21,2007). These authorities remain in effect under the automatic extension provisions of the Administrative Procedures Act as a result of a timely renewal application filed on December 11, 2008. LAN Ecuador, however, does not hold charter passenger authority from the Department. 4.

LAN holds exemption authority to operate scheduled foreign air transportation of

persons, property and mail from points behind Chile via Chile and intermediate points to a point or points in the United States and beyond; and (2) scheduled foreign air transportation of property and mail between the United States and any point or points. See NOAT, Docket OST1999-6493 (Apr. 18, 2008). 5.

Due to maintenance requirements of LAN aircraft, LAN requires additional

aircraft to continue its U.S. passenger services without undue disruption to its schedule and to the

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traveling public. On June 1,2009, LAN and LAN Ecuador entered into a wet lease agreement, under which LAN Ecuador will operate LAN's scheduled flights of passengers, property and mail between Miami, Florida and Santiago, Chile. LAN Ecuador proposes to use 8-767 aircraft (300 series) for these flights. The wet lease agreement contemplates that LAN Ecuador will operate two to three flights each month from January 2010 through April 2010. The proposed schedule is enclosed in Exhibit LE-I. 6.

LAN Ecuador, therefore, seeks an exemption to operate foreign charter passenger

air transportation and a statement of authorization to wet lease Boeing 767 aircraft to LAN. LAN Ecuador further requests that the Department waive the 45 day advance notice requirement, so that it can begin these operations as soon as possible. In support of this Application, LAN Ecuador submits in Exhibit LE-2 Resolution No. 074/2009 whereby the Consejo Nacional de Aviaci6n Civil of Ecuador (the "CNAC") grants wet lease authority to LAN Ecuador. More specifically, the CNAC authorizes LAN Ecuador to wet lease B-767 aircraft in support of LAN's scheduled foreign air transportation of passengers, property, and mail between Miami, Florida and Santiago, Chile. 7.

The applicable air service agreements permit the proposed wet lease. The U.S.-

Ecuador Agreement, as amended, provides that applications to carry traffic not specifically addressed by the Agreement shall be extended sympathetic consideration on the basis of comity and reciprocity. See U.S.-Ecuador Agreement at Annex II, Section 3. At LAN Ecuador's request, the CNAC has stated formally that it will authorize U.S. carriers to engage in long-term wet lease operations similar to those for which LAN Ecuador seeks authority herein. LAN Ecuador submits a December 9,2009 reciprocity statement in Exhibit LE-3 to this effect. LAN Ecuador, accordingly, has no reason to believe that the Government of Ecuador will not grant

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U.S. carrier requests similar to the instant request. Sufficient reciprocity, thus, exists to support favorable action on this Application. Likewise, the U.S.-Chile Open Skies Agreement provides that carriers of the parties may enter into leasing arrangements with carriers of third-countries. See U.S. - Chile Agreement at Article 8, Section 7. The Multilateral Agreement on the Liberalization of International Air Transportation ("MALIAT") also allows carriers to conduct their operations through leasing arrangements. See MALIAT at Article 8(2)(c). 8.

LAN Ecuador is fit, willing and able to perform the foreign air transportation for

which authority is requested in this Application and to comply with the pertinent statutory provisions and the Department's rules, regulations, and requirements. The Department previously has found that LAN Ecuador is fit to engage in foreign air transportation. See, e.g., NOAT, Docket OST-2005-23236 (Dec. 21, 2007). 9.

Grant of the authority requested herein is consistent with the U.S.-Ecuador Air

Transport Agreement (as amended), the U.S.-Chile Open Skies Agreement, and the MALIAT. Moreover, the authority requested herein will serve the public interest in permitting LAN to continue its Chile-U.S. operations without interruption to the traveling and shipping public. 10.

The LAN Ecuador aircraft will be maintained by LAN at its maintenance facilities

in accordance with ICAO Pilots and Airmen Armexes 1, 6 (Part 1), and 7. 11.

Grant of the authority requested in this Application will not constitute a major

regulatory action under the Energy Policy and Conservation Act of 1975, as defined in section 313.4(a)(1) of the Department's regulations. 12.

LAN Ecuador will poll interested parties on the attached service list and inform

the Department of the results as soon as possible.

WHEREFORE, for the foregoing reasons, Aerolane, Lineas Aereas Nacionales del Ecuador S.A. d/b/a LAN Ecuador respectfiilly requests (i) an exemption to engage in foreign charter air transportation of passengers, (ii) a statement of authorization to wet lease aircraft to LAN Airlines S.A., and (iii) a waiver of the Department's 45 day advance notice requirement, as more ftilly described above. Respectfully submitted.

Charles Ji Simpson mne Pera David M. Endersbee ZUCKERT, SCOUTT & RASENBERGER, L.L.P. 888 Seventeenth Street, N.W., Suite 700 Washington, DC 20006 Tel: (202) 298-8660 Fax: (202) 342-0683 Email: [email protected] [email protected] [email protected] Counsel for Aerolane, Lineas Aereas Nacionales del Ecuador S.A. d/b/a LAN Ecuador December 16, 2009

EXHIBIT LE-1 PROPOSED SCHEDULE

Carrier:

LAN Ecuador

Aircraft:

B-767-316ER or B-767-3Q8ER

Southbound : MIA-SCU: January 6, 25 February 8,24 March 3,17,24 April 7,14,28 Northbound: SCU-MIA: January 7,26 February 9,25 March 4,18,25 April 8,15,29

Total Roundtrip Flights :

10

Exhibit:LE-2

RESOLUCiON No. 074/2009 EL CONSEJO NACIONAL DE AVIACION CIVIL CONSIDERANDO:

ECUADOR

QUE, la compania AEROU\NE, LfNEAS AEREAS NACIONALES DEL ECUADOR SA. es poseedora de una conceslon de operaclon otorgada per el Consejo Nacional de Aviacl6n Civil mediante Acuerdo No. 025/2004 de 16 de agosto del 2004, para que explote los servicios de transporte aereo publico, intemaclonal, no regular, de carga y correo, en forma combinada, con derechos de tercera, cuarta y quinta libertad del aire, en las siguientes rutas: O

- QUITO y/o GUAYAQUIL y/o LIMA y/o CALI y/o BOGOTA y/o CARACAS y/o PANAMA MIAMI y/o LOS ANGELES y/o NUEVA YORK. - LOS ANGELES y/o NUEVA YORK y/o MIAMI y/o SANTIAGO y/o MANAOS y/o RIO DE JANEIRO y/o SAO PAULO y/o CURITIVA y/o LIMA - QUITO y/o GUAYAQUIL El equipo de vuelo autorizado para esta operaclon consiste en aeronaves. Aeronaves Boeing 767-300, en base a contratos de arrendamiento que incluye el "wet lease", conservando matricula extranjera. Las matriculas, numeros de serla y modalidad contractual constaran en las especificaciones operacionales; y, Boeing 777F, bajo la modalidad de wet lease, hasta la terminacion del plazo de la concesion de operaci6n, esto es, agosto 15, 2009; y. La operaclon entre puntos que no tenga destine y origen Estados Unidos, utilizara aeronaves con matricula ecuatoriana o a traves de contrato dry lease y que seran afectadas a la aerolinea y estaran bajo el control de la autoridad ecuatoriana.

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QUE, la companfa | B B f l M f f = L I N E A S AEREAS NACIONALES DEL ECUADOR S.A. present6 ante el Consejo Nacional de Aviaci6n Civil, una solicitud encaminada a obtener la aprobacion del contrato de an'endamiento en la modalidad de %tfet lease" celebrado con la compaftfa nywirMiaBfjag;^^^.. para utilizar aeronaves Boeing , cuyas matriculas son Boeing 767-316ER, matricula HC-CHA y Boeing 767-3Q8ER, matricula HC-CGZ; QUE, de conformidad con lo previsto en el Articulo 4 letra d) de la Codificaci6n de la Ley de Aviacion Civil, es atribuclon del Consejo Nacional de Aviacion Civil, conocer y aprobar los convenios o contratos de cooperacion comercial que rncluyan, entre otros, los arriendos en 'wet lease"; QUE, las companfas AEROLANE, L I N E A S AEREAS NACIONALES DEL ECUADOR S.A. y LAN AIRLINES S.A. son operadoras de transporte aereo;

Paglna 1 de S ^ ^ ' I "^ RpOLUCldN NO.J74/2009

Buenos Aires Oe 1-53 y 10 de Agosto 4to. piso jgjfg. (593.2) 2900-823 Fax: (593-2) 2520-291 Quito - Ecuador www.cnac.gov.ee

QUE, mediante Resolucion No. 023/2009 de 2 de abril del 2009, el CNAC nego la solicitud de ambas companlas en vista que no cumplieron satisfactoriamente con los requerimientos que les fueran transmitidos oportunamente, y principalmente porque para la realizacidn de un vuelo de mantenimiento no se necesita cambiar el C6digo Designador y emplear el permiso de operaclon de LAN AIRLINES S.A. pues lo podrfan hacer a traves de un vuelo ferry;

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QUE, dentro del termino legal previsto en el inciso segundo de la letra c) del Art. 4 de la Codificaci6n de la Ley de Aviacion Civil, LAN AIRLINES S.A. y AEROLANE S.A. pidieron al CNAC la reconsideracion de la Resoluci6n No. 023/2009 y, al mismo tiempo, solicitaron ser recibidos en Comision General para ampiiar y aciarar el alcance de su solicitud, diligencia que se reaiizd se realize el 10 de junio del 2009, iuego de lo cual el H. Consejo resolvio se requiera a la Direccion General de Aviaci6n Civil un informe tecnico sobre cuales serian los mecanismos de control que deberfan ser implementados para esta nueva figura comercial propuesta por las compafiias AEROLANE S.A. y LAN AIRLINES S.A., en raz6n de las matriculas HC de las aeronaves, y a Derecho Aereo un infonne ampliatorio sobre la pertinencia de que la solicitante haya presentado otros documentos en la comision general y no cuando planteraron el recurso de reconsideracion; QUE, en sesion de 22 de julio del 2009, el Consejo Nacional de Aviacion Civil conoci6 el informe de la DGAC, mediante el cual se indica que la operaci6n wet lease propuesta por AEROLANE, L I N E A S AEREAS NACIONALES DEL ECUADOR S.A. no requiere la implementacion de nuevos mecanismos de control ya que las aeronaves B-767 de matricula y tripulacion ecuatoriana, cuyo control operacional siempre estara bajo (a responsabilidad de AEROLANE, L I N E A S AEREAS NACIONALES DEL ECUADOR S.A. estaran a su vez sujetas al control y vigllancia permanente de la autoridad aeronautica ecuatoriana; as( como el Infonne de Derecho Aereo, en el que se concluye que: a) La traduccion de la autorizacion del propietario de (a aeronave no cuenta con la firma de responsabilidad de quien la hizo y tampoco esta protocolizada ante Notario Pijblico que de fe de su autenticidad; y, b) el certificado emitido por la DGAC de Chile de que recibe, acepta y registra sin objeciones contratos de wet lease de aeronaves no satisface el requerimiento del area legal pues lo que se requiere es contar con la aprobaci6n especffica del contrato de arrendamiento wet lease entre AEROLANE, LiNEAS AEREAS NACIONALES DEL ECUADOR S.A. y LAN AIRLINES S.A., por parte de la autoridad aeronautica chilena; QUE, en sesion de miercoles 5 de agosto de) 2009, el H. Consejo avoco conocimiento de la comunicaci6n de AEROLANE S.A.,de 4 de agosto del 2009, en la cual la compania reitera que la autoridad aeronautica de Chile, de acuerdo a sus procedimientos, no expide autorizaciones a este tipo de contratos, peor aCin para un contrato individual, en vista de lo cual el Organismo resilvi6 que se pida esta informacibn de autoridad a autoridad, lo cual se concreta mediante oficio No. CNAC-S-O-737-09-363; QUE, mediante conreo electronico de octubre 2, 2009, el senor Presidente del CNAC recibio la comunicacion No. D.G.A.C. No. 04/3/1049/5373, mediante la cual el sefior Director General de Aeronautica Civil de Chile informa que esa entidad aprueba e) contrato de arrendamiento bajo la modalidad de wet lease de las aeronaves Boeing 767-316ER, matricula HC-CHA y Boeing 767-3Q8ER, matricula HC-CGZ, sucrito el 01 de junio del 2009 entre AEROLANE S.A. y LAN AIRLINES «^P4glna2de6

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^ / ' R E S 0 L U C | 6 N NO. 074/2009

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S.A., toda vez que no hay objeciones desde el punto de vista jurfdico ni tampoco con respecto a Operaciones y Aeronavegabilidad; QUE, al haberse cumplido todos los requerimientos de la autoridad aeronautica ecuatoriana, en sesi6n ordinaria realizada el 14 de octubre del 2009, el Consejo Nacional de Aviacl6n Civil resolvio aceptar la reconsideracibn y aprobar et contrato de arrendamiento en la modalidad de wet lease suscrito entre las companlas AEROLANE, L I N E A S AEREAS NACIONALES DEL ECUADOR S.A. y LAN AIRLINES S.A.; En uso de sus atribuciones legates, RESUELVE: W

1.APROBAR ei contrato de arrendamiento en la modalidad de "wet (ease" suscrito entre las companlas AEROLANE, L I N E A S AEREAS NACIONALES DEL ECUADOR S.A. y LAN AIRLINES S.A. el 1 de junio del 2009.

ARTICULO

2.Las aeronaves materia del arrendamiento en "wet lease" que se aprueba por la presente, corresponden a un Boeing 767-316ER, matricula HCCHA y un Boeing 767-3Q8ER, matricula HC-CGZ. ARTICULO

ARTlCULO 3.La compania AEROLANE, LiNEAS AEREAS NACIONALES DEL ECUADOR S.A. mantendra el control operacional de todos los vuelos que se efectiien al amparo del contrato de arrendamiento en "wet lease". La compafila LAN AIRLINES S.A. ser^ la responsable de obtener todos los permisos necesarios para trafico comercial, aterrizaje, navegacion en ruta y sobrevuelos de agendas gubernamentales, entre otras cosas. ^

4.Para que la operacion bajo el contrato de arrendamiento "wet lease" sea efectiva, las companlas AEROLANE, L [ N E A S AEREAS NACIONALES DEL ECUADOR S.A. y LAN AIRLINES S.A, deberan solicitar a la Direcci6n General de Aviacion Civil, la inclusion de la autorizacion correspondiente (A28 Contratos de Arrendamiento "wet lease"), en sus Especificaciones Operacionales Ecuatorianas. ARTICULO

ARliCULO 5.Ambas partes seran soiidaria e indivisiblemente responsables ante los usuarios del servicio, sin perjuicio de lo establecido en el contrato de an'endamiento "wet lease" que se autoriza.

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ARlfCULO 6.La presente Resolucion empezara a regir desde el dia siguiente a la fecha de su notificacion y estar^ vigente hasta el 10 de mayo de 2010, fecha de t6rmino del contrato de an'endamiento en la modalidad de "wet lease" suscrito entre AEROLANE, L I N E A S AEREAS NACIONALES DEL ECUADOR S.A. y LAI^y AIRLINES S.A., a menos que ambas partes lo den por ^

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PSgina 3 de 5

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RESOLUCION NO. 074/2009

terminado en forma anticipada por mutuo acuerdo y asi lo comuniquen al Consejo Nacional de Aviaci6r> Civil; ARTICULO 7.Enc^rguese del cumplimiento de la presente resolucion a la Direccion General de Aviacion Civil. Notifiquese y publiquese.- Dada en Quito D.M. a,

5ap. Guillenrio Bemal Serpj PRESlDENT^^El^ONSJJGlNAGlD-NAld

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acj^rbrres Cevallos DEL. M I ^ T R O DE RELACIONES EXTEPnORES, COMERCIO E INTEGRACI6N

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0 ( NOV. 2009

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Dr. L'uis Fernanda Borrero DEL. MINISTRO DE INDUSTRIAS Y PRODUCTMDAli

Ec. Freddy EgQez Rivera REP, ALTERNO F E D E R A C I 6 N DE CAMARASDETURISMO

Pdglna 4 de 5 RESOLUCI6N NO. 074/2009

/lACION CIVIL

Buenano DEL. MINISTRA DE FINANZAS

ernaza SDELA

Dra. Sandra Reyes Cordero SECRETARIA GENERAL CNAC

[ROUND LOGO OF NATIONAL COUNCIL OF CIVIL AVIATION] RULING NO. 074/2009 NATIONAL COUNCIL OF CIVIL AVIATION CONSIDERING:

THAT, AEROLANE, LINEAS AEREAS NACIONALES DEL ECUADOR S.A. holds an authority granted by the National Council of Civil Aviation under Agreement No. 025/2004 dated August 16, 2004, to operate public air transportation services, international, non-scheduled, cargo and mail combined, with third, fourth and fifth fi-eedom rights, within the following routes: •

Quito and/or Guayaquil and/or Lima and/or Call and/or Bogota and/or Caracas and/or Panama - Miami and/or Los Angeles and/or New York.

•

Los Angeles and/or New York and/or Miami and/or Santiago and/or Manaos and/or Rio de Janeiro and/or Sao Paulo and/or Curitiva and/or Lima - Quito and/or Guayaquil.

The equipment authorized to operate these flights is as follows: Boeing 767-300 aircraft based on lease agreements which include "wet lease," maintaining the foreign registration. The registrations, serial numbers and contract mode shall be described in the operations specifications; and, Boeing B777F, under wet lease arrangement, until the expiration of the authority, that is, August 15, 2009; and. The operation between points of origin and destination outside the United States, will utilize aircraft with Ecuadorian registration or through a dry lease agreement, controlled by the airline under the Ecuadorian authority. THAT, AEROLANE, LINEAS AEREAS NACIONALES DE ECUADOR S.A. filed with the National Covincil of Civil Aviation a petition to obtain an approval of the wet lease agreement entered into with LAN AIRLINES S.A. to operate aircraft Boeing 767-316ER, registration HCCHA, and Boeing 767-3 Q8ER, registration HC-CGZ; THAT, in accordance with the stipulations in Article 4 letter d) of the Code of Civil Aviation Regulations, the National Council of Civil Aviation has the power to study and approve any commercial aviation agreement that include, among others, wet lease agreements; THAT, AEROLANE, LINEAS AEREAS NACIONALES DEL ECUADOR S.A. and LAN AIRLINES S.A. are air transport operators;

THAT, through Ruling No. 023/2009 dated April 2, 2009, the National Council of Civil Aviation denied the petition of both companies as a result of non-compliance with the timely informed requirements, and mainly for the reason that to operate a maintenance flight it is not necessary to change the designator code and use the operational permit of LAN AIRLINES S.A., this can be accomplished with a ferry flight; THAT, within the legal term indicated in the second section, letter c) of Article 4 of the Code of Civil Aviation Regulations, LAN AIRLINES S.A. and AEROLANE, LINEAS AREAS NACIONALES DEL ECUADOR S.A. petitioned the CNAC to reconsider Ruling No. 023/2009 and, at the same time, requested an audience with the General Commission to expand and clarify their petition, which was granted on June 10, 2009, after which the Honorable Council resolved to request fi"om the National Council of Civil Aviation a technical report on the control mechanisms that should be implemented for this new commercial arrangement proposed by AEROLANE, LINEAS AREAS NACIONALES DEL ECUADOR S.A. and LAN AIRLINES S.A. due to the HC registration of the aircraft, and from Aviation Law an extended report regarding the relevance of other documents filed by the petitioner with the general commission instead of filing these at the time they petitioned for reconsideration; THAT, during the session of July 22, 2009, the National Council of Civil Aviation became aware of the report from the DGAC, where it indicates that the wet lease operation proposed by AEROLANE, LINEAS AEREAS NACIONALES DEL ECUADOR S.A. does not require the implementation of new control mechanisms since the B-767 aircraft with Ecuadorian registration and crew, and whose operational control will always be AEROLANE, LINEAS AEREAS NACIONALES DEL ECUADOR S.A.'s responsibility, and under permanent surveillance of the Ecuadorian aeronautical authority; as well as the Aviation Law report that concludes: a) the translation of the aircraft owner's permit does not include the signature of the translator responsible and has not been notarized before a Public Notary that confirms the authenticity of the document; and b) the certificate issued by the DGAC Chile certifying that it has received, accepted and registered, without objections, the aircraft wet lease agreements, does not satisfy the legal requirements, since what is necessary is the specific approval of the wet lease agreement between AEROLANE LINEAS AEREAS NACIONALES DEL ECUADOR S.A. and LAN AIRLINES S.A. by the proper Chilean aeronautical authorities; THAT, during the session of Wednesday, August 5, 2009, the Honorable Commission acknowledged receipt of the communication from AEROLANE dated August 4, 2009, wherein the company reiterates that the Chilean aeronautical authority, in accordance with its procedures, does not issue authorizations to these types of contracts, nor for an individual contract, in view of that which the Organism resolved to request this information from one authority to the other, which has been formalized through Memo No. CNAC-S-O-737-09-363; THAT, by elecfronic mail dated October 2, 2009, the President of the National Council of Civil Aviation received communication No. DGAC 04/3/1049/5373, where the Director General of Civil Aviation in Chile informs that such authority approves the wet lease agreement of aircraft Boeing 767-316ER with registration HC-CHA, and Boeing 767-3Q8ER with registration HCCGZ, subscribed on June 1, 2009 between AEROLANE S.A. and LAN AIRLINES

S.A., as long as there are no judicial or Operational and Airworthiness objections; THAT, upon completion of all the requirements from the Ecuadorian aeronautical authority, during the ordinary session of October 14, 2009, the National Council of Civil Aviation accepted the request for reconsideration and approved the wet lease agreement between AEROLANE, LINEAS AEREAS NACIONALES DEL ECUADOR S.A. and LAN AIRLINES S.A.; In use of its legal powers.

RESOLVES: ARTICLE 1 - APPROVES the wet lease agreement subscribed by the companies, AEROLANE, LINEAS AEREAS NACIONALES DEL ECUADOR S.A. and LAN AIRLINES S.A. on June 1, 2009.

ARTICLE 2 - The aircraft that form part of the wet lease agreement are approved herein, and involve one Boeing 767-316ER with registration number HC-CHA, and one Boeing 767-3Q8ER with registration number HC-CGZ.

ARTICLE 3 - AEROLANE, LINEAS AEREAS NACIONALES DEL ECUADOR S.A. shall maintain operation control of all flights carried out under the wet lease agreement. LAN AIRLINES S.A. shall be responsible to obtain all the necessary permits for commercial traffic, landing, route navigation and over flight from government agencies, among others.

ARTICLE 4 - For the operation under the wet lease agreement to become effective, AEROLANE, LINEAS AEREAS NACIONALES DEL ECUADOR S.A. and LAN AIRLINES S.A. shall request to the General Civil Aviation Authority, the inclusion of the applicable authorization (A28 - Wet lease Confracts), in its Ecuadorian Operational Specifications.

ARTICLE 5 - The parties shall have non-divisible, joint and several liability to the users of the service, without prejudice to the established in the wet lease agreement that is being authorized.

ARTICLE 6 - The current Ruling shall valid from the date following notification and up to May 10, 2010, date of termination of the wet lease agreement executed by AEROLANE, LINEAS AEREAS NACIONALES DEL ECUADOR S.A. and LAN AIRLINES S.A., unless the parties jointly terminate the agreement in advance and accordingly informs the National Council of Civil Aviation;

ARTICLE 7 - The General Civil Aviation Authority shall be responsible of the compliance of this Ruling. Registered and published. - In Quito D.M. on November 4, 2009.

[Illegible signature] Captain Guillermo Bemal Serpta PRESIDENT OF THE NATIONAL COUNCIL OF CIVIL AVIATION

[Illegible signature] [Illegible signature] Dr. Bolivar Torres Cevallos Pse. Pilar Castillo Buenailo DEL. SECRETARY OF INTERNATIONAL RELATIONS, DEL. SECRETARY OF FINANCE COMMERCE AND INTEGRATION

[Illegible signature] Dr. Luis Fernando Borrero DEL. SECRETARY OF INDUSTRIES AND PRODUCTIVITY

[Illegible signature] Ab. Luis Hidalgo Vemaza REP. CHAMBER OF PRODUCTION

[Illegible signature] Ec. Freddy Eguez Rivera ALTERNATE REP. TOURISM CHAMBERS FEDERATION

[Signature] Dra. Sandra Reyes Cordero GENERAL SECRETARY CNAC

CERTIFICATE OF ACCURACY

I hereby certify that I have translated this document - Resolucion No. 074/2009 - Consejo Nacional de Aviacion Civil - from Spanish into English, to the best of my ability.

Anita'TCMeza Florida Registered Paralegal

STATE OF FLOBIPA COUNTY OF 8wom

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nally known to me orproduced produced as identification. Comm.

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Exhibit IiE-3

Oficio N^ CNAC-S-O-943-09 ^^4V1A(^ ECOADOR

Quito diciembre 9, 2009 Doctor Maximiliano Naranjo i.

GERENTE GENERAL DE AEROLANE Ciudad A pedido de la companfa AEROLANE, Lineas Adreas Nacionales del Ecuador S.A. constante en oficio No. XL-GG-212-2009. de noviembre 24, 2009, se CERTIFICA: Que el Consejo Nacional de Aviaci6n Civil, en sesidn de 2 de diciembre del 2009, visto el infonne de la Unidad de Derecho A6reo, resolvib atender favorablemente la solicitud de la aerolinea. En tal sentido, bajo el principio de estricta reciprocidad el pedido efectuado por la aerolinea ecuatoriana, se atenderd igualmente a los pedidos de aerolineas designadas por los Estados Unidos de America, para la realizacion de vuelos regulares y no regularescharter-, de pasajeros, carga y correo, con derechos de hasta quintas libertades del aire, que deben operar con aeronaves arrendadas bajo la modalidad "wet lease", siempre y cuando las aerolineas designadas por Estados Unidos de America, cuente con la autorizaci6n adecuada de su autoridad. La presente certificacidn puede ser presentada ante las autoridades del Departamento de Transporte A6reo de los Estados Unidos de America "DOT", para los fines pertinentes. Atentamente,

(3cuA-A.A>y^^"^

DEUAV.BREA

f^- MY COMMISSION #00584021 , ^ / EXPIRES: September 4,2010

CERTIFICATE OF SERVICE I hereby certify that on this 16'*' day of December, 2009 a copy of the foregoing Application of LAN Ecuador was served by e-mail on the following:

Carl B. Nelson, Jr. American Airlines, Inc. Email: carl.nelson(a),aa.com

John Palo Evergreen International Airlines, Inc. Email: iohn.palo(2)evergreenairlines.com

John L. Richardson Counsel for Amerijet International Email: irichardson(a),iohnlrichardson.com

Marshall S. Sinick Counsel for Florida West Int'I Airways Email: msinick(S),ssd.com

Pierre Murphy Counsel for Arrow Air Email: pmurphv(S),lopmurphv.com

Angeline Garbuzinski Federal Express Corporation Email: anbird®fedex.com

Russell E. Pommer Atlas Air, Inc. Email: rpommer(S),atlasair.com

Kevin Montgomery Peter Beckett Polar Air Cargo, Inc. kevin.montgomervfojpolaraircareo.com peter.beckett(a),polaraircargo.com

R. Bruce Keiner, Jr. Lorraine B. Halloway Coimsel for Continental Airlines Email: rbkeiner(S),croweIl.com lhalloway(a),crowell.com

Joanne W. Young Counsel for Spirit Airlines Email: ivoung(5),vklaw.com

Hershel 1. Kamen Dan Weiss Continental Airlines, Inc. Email: hkamen(a),coair.com dan.weiss(2^coair.com

David L. Vaughan Danielle Fisher Counsel for United Parcel Service Email: dvaughanfolkellevdrve.com dfisher(S^kelleydrye.com

Alexander Van der Bellen Delta Air Lines, Inc. Email: sascha.vanderbellen(a),delta.com

Jeffrey Manley United Air Lines, Inc. Email: Jeffrey.manley(3),united.com

Howard Kass US Airways Email: howard kass(a)usairways.com

John M. Allen Director, Flight Standards Service Email: iohn.allen(2),faa.gov