Compania Panamena de Aviacion, S.A. and KLM Royal Dutch Airlines, N.V.

OST-2008-0070 - Statement of Authorization - Panama City-San Juan Codesharing

February 22, 2008

Joint Application for a Statement of Authorization

Under the arrangement proposed herein, Copa will carry KLM's code on its nonstop flights between Panama City and San Juan., which will connect to KLM's flights between Panama City and the Netherlands. While KLM will hold out single carrier service between San Juan and the Netherlands, it will not hold out or sell single carrier service between San Juan and Panama City. Similarly, since KLM will carry Copa's code between Panama City and the Netherlands, Copa will hold out and sell single carrier service between San Juan and the Netherlands via Panama City.

As part of the arrangement, KLM will display Copa's code on KLM flights between Panama City and the Netherlands, for which KLM does not require a Statement of Authorization.

Copa holds authority to engage in foreign air transportation of persons, property and mail from points behind the Republic of Panama via the Republic of Panama and intermediate points to a point or points in the United Stated and beyond (Notice of Action Taken in OST-1997-2675, dated February 19, 1998). Copa operates two daily nonstop round trips between Panama City and San Juan, and may serve points behind Panama City, such as the Netherlands, which would permit the operation of Netherlands-Panama City-San Juan service.

Counsel: Mietus Law, William Evans, 202-747-5212, bill@mietuslaw.com for Copa / Paul Mifsud, 202-861-5867, pmifsudklm@earthlink.net for KLM

Filed February 22, 2008 | Approved March 20, 2008

Department Action on Application

Joint application of Compania Panamena de Aviacion, S.A. and KLM Royal Dutch Airlines, N.V. for a statement of authorization to permit Copa to display the KL* designator code of KLM on flights operated by Copa between Panama City, Panama and San Juan, Puerto Rico.

The applicants also request authority under 14 CFR Part 216, if necessary, to commingle traffic in foreign air transportation with traffic not in foreign air transportation in conducting this code share. We will dismiss this portion of the applicants' request, as Part 216 authority is not required in the conduct of their proposed operations.

By: Shelita Smith