Philippine Airlines, Inc.

OST-03-16522 - Manila-Vancouver-Las Vegas

November 12, 2003

Application for an Exemption

PAL has received authorization from the Government of the Philippines to commence service to Las Vegas as an additional point in the U.S. PAL is applying to the Department for an exemption that would allow it to conduct Las Vegas flights. PAL proposes to serve Las Vegas as a U.S. gateway with an intermediate stop in Vancouver, Canada. PAL requests full traffic rights between Vancouver and Las Vegas. PAL plans to launch service to Las Vegas with four (4) weekly flights using Airbus A340 aircraft configured for 264 passengers.

PAL's proposed service would provide the only direct flights between the Philippines and Las Vegas. By opening a direct air link from Manila, PAL's proposed flights would facilitate greater tourism and trade in the U.S.‑Philippines market and provide an economic boost to the Las Vegas metropolitan area.

Counsel: Zuckert Scoutt, Malcolm Benge, 202-298-8660, mlbenge@zsrlaw.com

Filed November 12, 2003 | Issued December 8, 2004

Notice of Action Taken

Exemption from 49 U.S.C. § 41301 to engage in scheduled foreign air transportation of persons, property and mail between Manila, the Philippines, on the one hand, and Las Vegas, Nevada, on the other hand, via the intermediate point Vancouver, Canada (with traffic rights between Vancouver and Las Vegas).

By: Paul Gretch

OST-03-16522 - Manila-Vancouver-Las Vegas

December 2, 2004

Application for Renewal of Exemption

PAL has been granted an exemption by the Department to provide scheduled combination service between Manila, on the one hand, and Las Vegas, Nevada, on the other hand, via the intermediate point Vancouver, Canada with full traffic rights between Vancouver and Las Vegas. See Notice of Action Taken (December 8, 2003). PAL also holds a foreign air carrier permit to provide scheduled combination flights between the Philippines and points in the United States. See Order 82-12-115.

PAL's exemption authority to engage in Manila-Vancouver-Las Vegas services is currently set to expire on December 8, 2004. PAL requests renewal of its Las Vegas exemption authority for a two-year period, until December 8, 2006. The Department has previously determined that PAL's service to Las Vegas is consistent with the public interest. See Notice of Action Taken ( December 8, 2003). PAL's current operations to Las Vegas include up to four weekly frequencies with an intermediate stop in Vancouver, Canada. PAL's exemption authority includes full traffic rights between Vancouver and Las Vegas. PAL operates its Las Vegas service with Airbus 340-300 aircraft configured for 264 passengers.

Counsel: Zuckert Scoutt, Malcolm Benge, 202-298-8660, mlbenge@zsrlaw.com