OST-97-2982 / LAN Chile (US-Chile Service) / Answer of Puerto Rico / October 22, 1997
Application of
LINEA AEREA NACIONAL CHILE, S.A. (LAN CHILE)
under 49 U.S.C. § 40109 for an exemption (U.S.-Chile Service)
ANSWER OF THE GOVERNMENT OF PUERTO RICO TO APPLICATION OF
LINEA AEREA NACIONAL CHILE, S.A. FOR AN EXEMPTION
By application dated
October 7, 1997, Linea Aerea Nacional Chile, S.A. ("Lan Chile") has applied for an exemption authorizing it to engage in scheduled foreign air transportation of persons, property and mail between points in Chile, on the one hand, and Chicago, Houston, Orlando and San Juan, on the other, via intermediate points. The Government of Puerto Rico hopes the Department will expeditiously grant Lan Chile's exemption request. 1/ Under a recent amendment to the route annex of the U.S.-Chile aviation agreement, airlines of Chile have the bilateral right to operate between Chile and San Juan, nonstop, via intermediate points and beyond to points in
1/ Puerto Rico is not answering the related undocketed joint application of Lan Chile and American Airlines for code-share authority at Santiago and American's U.S. mainland gateways.
Government of Puerto Rico Answer to Linea Aerea Nacional Chile, S.A. 2
third countries. Chilean airlines also have the right to coterminalize San Juan and the other bilaterally authorized U.S. gateways.
Because Puerto Rico is earnestly pursuing and places a priority on new air service to and from Latin America, it is pleased that Lan Chile has come forth with the instant route request. If the request is granted, as Puerto Rico hopes will happen quickly, Lan Chile will have the authority it needs to commence direct service between Santiago and San Juan.
Initially, Lan Chile proposes not to exercise its San Juan authority, except by means of connecting code-share services with American Airlines via Miami and Dallas/Ft. Worth. Both services involve circuitous backhaul routings. Puerto Rico remains hopeful that Lan Chile, through San Juan code-share service or otherwise, will focus on Puerto Rico's traffic potential and the benefits of direct San Juan-Santiago service. Direct service would make economic sense. Through coordination with American, Lan Chile would be able to tap South America-Puerto Rico O&D traffic and to flow beyond traffic through San Juan.
Government of Puerto Rico Answer to Linea Aerea Nacional Chile, S.A. 3
WHEREFORE, the Government of Puerto Rico supports the above-captioned exemption application.
Respectfully submitted,
VERNER LIIPFERT, John Merrigan, Russell Pommer
Counsel for the GOVERNMENT OF PUERTO RICO
October 22, 1997