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OST-98-3855

Lineas Aerea Nacional Hondura, S.A. de C.V. d/b/a Honduras National Airlines (Exemption, US-Honduras)

OST-98-3855 | May 14, 1998

Application for an Exemption

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Once Honduras National Airlines commences service, passengers and shippers in the United States will be able to reach Honduran markets that are now inaccessible by air. They will benefit from competitive service which will increase frequency in the Miami-San Pedro Sula and Miami-Tegucigalpa city-pair markets, introduce convenient single plane service from Miami to Roatan, Honduras, and to points beyond Honduras, and discipline pricing behavior in the market. The people of Honduras, in turn, will enjoy expanded access to U.S. and Central American markets and share more equitably in the economic growth in the region.

Due to restrictions on carriers designated by governments classified as Category 3 under the FAA Country Assessment program, Honduras National Airlines will wet lease aircraft operating to the United States from Falcon Air Express, Inc. Aircraft to be utilized in the proposed service include B-727-200 aircraft configured for 8 business class and 143 economy class seats or B-727-100 aircraft configured for 8 business and 108 economy class seats. Wet-leased B-737-200 and B-737-300 aircraft may also be used in the applicant's Central American operations

• Exhibit HNA-1:  Shareholders
• Exhibit HNA-2:  Board of Directors
• Exhibit HNA-3:  Key Personnel | Resumes
• Exhibit HNA-4:  Organizational Chart
• Exhibit HNA-5:  Proposed Flight Schedule
• Exhibit HNA-6:  Certificate of Insurance
• Exhibit HNA-7:  Traffic & Financial Forecast
• Exhibit HNA-8:  Balance Sheet
• Exhibit HNA-9:  DGAC License
• Exhibit HNA-10:  DGAC Correspondence to US Dept of State
• Service List

Counsel:  Susan Jollie, 202-639-8233

Linea Aerea Nacional Hondurena, S.A. de C.V. d/b/a Honduras National Airlines - (Notice of Action Taken)

OST-98-3855 | Filed May 14, 1998 | Action Taken June 10, 1998

Notice of Action

Applicant Rep.: Susan Jollie, 202.639.8233

Linea Aerea Nacional Hondurena, S.A. de C.V. d/b/a Honduras National Airlines - (Notice of Action Taken)

OST-98-3855 | Filed May 14, 1998 | Action Taken June 10, 1998

Notice of Action

Exemption from 49 U.S.C. 41301 to conduct (1) scheduled foreign air transportation of persons, property and mail from points behind Honduras via Honduras and intermediate points to point(s) in the United States and beyond; (2) charter foreign air transportation to and from the United States as authorized in the U.S.-Honduras Air Transport Agreement (Agreement); and (3) all-cargo services between the United States and any point(s) subject to the terms and conditions of the Agreement: by wet-leasing from authorized carriers.

Applicant Rep.: Susan Jollie, 202.639.8233

Linea Aerea Nacional Hondurena, S.A. de C.V. d/b/a Honduras National Airlines

By Notice of Action Taken dated June 10, 1998, the Department granted Honduras National Airlines authority to engage in scheduled foreign air transportation of persons, property, and mail over the routes: San Pedro Sula/Tegucigalpa-Miami/New Orleans/Houston. The authority was granted for a two year period. After reviewing the initial application for exemption, the Department found that Honduras National Airlines was operationally and financially qualified to conduct the authorized services, properly licensed by its government, and substantially owned and effectively controlled by citizens of Honduras. There has been no material change in the information previously supplied to the Department concerning the ownership or management of the carrier or its proposed service plan, which provided for services under a wet lease arrangement.

Honduras National Airlines was unable to successfully initiate operations due to unfavorable economic conditions. Hurricane Mitch caused landslides that killed thousands of people, destroyed thousands of homes and businesses, and undermined the country's transportation infrastructure. The economic conditions have been improving. Honduras National Airlines is currently working on plans to initiate scheduled services in December. Renewal of the exemption authority will permit the carrier to institute services in response to market conditions.

Counsel:  Susan Jollie, 703.354.8450, sjollie@erols.com

Linea Aerea Nacional Hondurena, S.A. de C.V. d/b/a Honduras National Airlines

Renew exemption from 49 U.S.C. 41301 to conduct scheduled foreign air transportation of persons, property and mail from points between San Pedro Sula/Tegucigalpa and Miami/New Orleans/Houston

By:  Paul Gretch

Linea Aerea Nacional Hondurena, S.A. de C.V. / Honduras National Airlines

Honduras National Airlines was unable to commence operations between the United States and Honduras due to the difficulties in complying with the condition requiring that a carrier from a Category 2 country serve the United States by wet leasing aircraft form a U.S. or Category 1 carrier. However, Honduras National Airlines is still actively exploring available options to initiate services. Honduras National Airlines therefore requests an extension of its exemption authority for an additional two years.

Counsel:  Susan Jollie, 703-354-8450

Linea Aerea Nacional Hondurena, S.A. de C.V.

Renew exemption from 49 U.S_C. 41301 to conduct scheduled foreign air transportation of persons, property and mail from points between San Pedro Sula/Tegucigalpa and Miami/New Orleans/Houston.

By: Paul Gretch

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