OST-02-12031

OST-02-12031

Aerovias Nacionales de Colombia, S.A. (AVIANCA) and Aerolineas Centrales de Colombia, S.A. (ACES)

OST-02-12031	April 2, 2002	Joint Application for Statement of Authorization	Barranquilla/Bogotá- Miami Codeshare Operations
		Service List

With the approval of the Colombian Government, AVIANCA and ACES have formed a strategic alliance to enable both carriers to maintain viable, competitively effective operations between Colombia and the United States. The Colombian carriers' services to the U.S. have suffered severely from the decline in business traffic during the past year and the impact of the events of September 11 on travel to and from the U.S. In addition, the Colombian economy has been in recession for several years and the country continues to be embroiled in civil strife. As a result, ACES and AVIANCA have incurred financial losses that threaten their long-term competitive viability. The two carriers have therefore agreed to restructure and rationalize their operations and enter into a codeshare agreement. Under the carriers' codeshare agreement, AVIANCA will operate scheduled flights between Barranquilla/Bogota and Miami utilizing its own aircraft and crews and will display ACES' two-letter designator code on these flights. These codeshare flights will be operated in addition to those approved previously by the Department.

The Joint Applicants request a statement of authorization permitting AVIANCA to display ACES' designator code on AVIANCA's scheduled flights between Barranquilla and Bogota, Colombia, on the one hand, and Miami, Florida, on the other hand. AVIANCA's flights will be operated with B757 and B767 aircraft. Codeshare service will commence May 20, 2002.

Counsel: Squire Sanders, Robert Papkin, 202.626.6600 and Zuckert Scoutt, Richard Mathias, 202.298.8660

Aerovias Nacionales de Colombia, S.A. (AVIANCA) and Aerolineas Centrales de Colombia, S.A. (ACES)

OST-02-12031

Filed April 2, 2002
Date of Action April 12, 2002

Department Action on Application

Barranquilla/Bogotá- Miami Codeshare Operations

By: Barbara Schools