BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. APPLICATION OF ETIHAD AIRWAYS P.J.S.C. FOR A STATEMENT OF AUTHORIZATION

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1 BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of ETIHAD AIRWAYS P.J.S.C. for a Statement of Authorization pursuant to 14 C.F.R. 212 Docket OST APPLICATION OF ETIHAD AIRWAYS P.J.S.C. FOR A STATEMENT OF AUTHORIZATION Communications concerning this document may be served upon: Anita M. Mosner Jennifer M. Nowak Holland & Knight LLP Street, NW Suite 1100 Washington, DC Tel: (202) Fax: (202) Counsel for Etihad Airways P.J.S.C. September 19, 2013 NOTICE: THE APPLICANT IS REQUESTING EXPEDITED APPROVAL FROM THE DEPARTMENT AND WILL POLL ALL INTERESTED PARTIES.

2 BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of ETIHAD AIRWAYS P.J.S.C. for a Statement of Authorization pursuant to 14 C.F.R. 212 Docket OST APPLICATION OF ETIHAD AIRWAYS P.J.S.C. FOR A STATEMENT OF AUTHORIZATION Etihad Airways P.J.S.C. ("Etihad") hereby applies for a Statement of Authorization pursuant to 14 C.F.R. Part 212 to engage in the codesharing services described below. In support of its application, Etihad states the following: 1. Etihad requests a Statement of Authorization to display the Jat Airways a.d. Belgrade ("JAT") "JU*" airline designator code on flights operated by Etihad to the United States. Initially, Etihad will place the JU* code on flights it operates between Abu Dhabi (AUH) on the one hand, and New York (JFK), Chicago (ORD), and Washington, DC (IAD) on the other hand, that connect with JAT's services to Belgrade (BEG). 2. Both Etihad and JAT hold, or are in the process of obtaining, the underlying economic authority to engage in the proposed codeshare operations. Etihad holds a foreign air carrier permit issued by the Department that authorizes it to engage in scheduled and charter foreign air transportation of persons, property, and mail from

3 Etihad Airways P.J.S.C. Application for a Statement of Authorization points behind the U.A.E. and intermediate points to a point or points in the United States and beyond Concurrent with the filing of this application, JAT is submitting an application to the Department requesting an Exemption under 49 U.S.C that would authorize it to hold and market service to the US, by either placing its code on flights operated to the U.S. by current or future commercial partners which hold the appropriate authority to operate service to the United States, or through an appropriate lease with another authorized party. 4. The codeshare authorization requested herein is consistent with the 1999 Open Skies Agreement between the U.S. and the U.A.E., which grants broad authority for homeland carriers of the parties to engage in cooperative marketing arrangements such as codesharing with third party carriers. 2 Although the U.S. and the Republic of Serbia do not currently have a bilateral air service agreement in place, principles of comity and reciprocity warrant a grant of Etihad's request. U.S. carriers United Airlines and US Airways currently hold out service to Belgrade, Serbia on flights operated by third country carriers, which would support a grant of similar authority allowing Etihad to carry JAT's designator code on service to the U.S The codesharing proposed herein is also fully consistent with the public interest. The codeshare arrangement will allow Etihad and JAT to expand their online networks, promoting competition and enhancing service options for travelers. In 1 Order (Aug. 11, 2010). Etihad recently applied for an amendment to its Foreign Air Carrier Permit to allow Etihad to operate all-cargo services between the U.S. and any point or points. Interim exemption authority was granted by DOT by Notice of Action Taken, Docket OST (Nov. 2, 2012). 2 The Agreement states that, "any designated airline of one Party may enter into cooperative marketing arrangements such as blocked-space, code-sharing or leasing arrangements, with an airline or airlines of either Party [or] an airline or airlines of a third country...." U.S.-U.A.E. Open Skies Agreement, Art. 8, If 7 (Apr. 13, 1999). 3 United places its code on flights operated by Swiss International Airlines between Zurich (ZUR) and BEG, on flights operated by Lufthansa between Frankfurt (FRA)/Munich(MUC) and BEG, and on flights operated by Austrian Airlines between Vienna (VIE) and BEG. US Airways places its code on flights operated by Lufthansa between FRA and BEG.

4 Etihad Airways P.J.S.C. Application for a Statement of Authorization addition, the Department previously has granted authority to a third country carrier permitting it to carry JAT's code on its U.S. operations Etihad agrees to abide by the consumer notification requirements of 14 C.F.R. Part 257, as well as the other conditions and limitations the Department normally attaches to codeshare operations. 7. Etihad will notify the Department no later than 30 days before commencing any additional codeshare services involving U.S. points no identified in this application. 8. Etihad and JAT plan to begin codesharing over these routings as soon as all government approvals have been granted and, therefore, request a waiver of the provision that requires carriers to file requests for Statements of Authorization at least 45 days in advance of their proposed startup date. 9. Etihad also requests that the Statements of Authorization be issued for an indefinite period, as long as the relevant codeshare agreement between Etihad and JAT continues in effect, and will notify the Department if that agreement should cease to be effective. WHEREFORE, Etihad respectfully requests the Department to grant it the Statement of Authorization described above on an expedited basis and to grant it such other and different relief as is consistent with this application and with the public interest. 4 Department Action on Application in Docket OST (Aug. 6, 2003), granting Uzbekistan Airways a Statement of Authorization to carry the JU* code on flights operated by Uzbekistan Airways between Tashkent, Uzbekistan and New York JFK.

5 Etihad Airways P.J.S.C. Application for a Statement of Authorization Respejdf ully submitted, (fiita M. Mosner Jennifer M. Nowak Holland & Knight LLP Attorneys for Etihad Airways P.J.S.C.

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