Copa Holdings, S.A., through its subsidiaries, Compañía Panameña de Aviación, S.A. (Copa Airlines) and AeroRepública, S.A. (Copa Colombia), provides airline passenger and cargo service in Latin America. Copa Airlines operates from its strategically located position in the Republic of Panama, and Copa Colombia provides service within Colombia and international flights from various cities in Colombia to Panama, Venezuela, Ecuador, México, Cuba, Guatemala and Costa Rica. The company operates a fleet of 73 aircraft, 47 Boeing 737-Next Generation aircraft and 26 Embraer 190 aircraft. The company offers approximately 295 daily scheduled flights among 59 destinations in 28 countries in North, Central and South America and the Caribbean from its Panama City hub. It provides passengers with access to flights to approximately 130 other destinations through codeshare arrangements with United Continental Holdings, Inc. (UAL) pursuant to which each airline places its name and flight designation code on the other’s flights. Through its Panama City hub, the company consolidates passenger traffic from multiple points to serve each destination. Route Network and Schedules As of December 31, 2011, the company provided regularly scheduled flights to 59 cities in North, Central and South America and the Caribbean. The majority of its flights operate through its hub in Panama. As a part of strategic relationship with UAL, the company provides flights through code-sharing arrangements to approximately 130 other destinations. It also provides flights through code-sharing arrangements with Copa Colombia, KLM, Gol Intelligent Airlines, and Aeromexico. Sales and Marketing The company has a sales and marketing network consisting of 147 domestic and international ticket offices, including airport and city ticket offices located in Panama and Colombia. It has 40 city ticket offices (CTOs) co-branded with UAL. Strategy The main elements of the company’s business strategy include the following: expand network by increasing frequencies and adding new destinations, and continue to focus on keeping costs low by increasing direct sales. Environmental The company complies with the General Environmental Law and is in the first phase of a multi-year plan to implement all measures based on the environmental audit. Some of these measures include maintaining a young fleet, new navigation technologies, such as RNAV to reduce fuel consumption, installation of Winglets in its planes to reduce fuel consumption, CO2 emission compensation programs for passengers, and recycling. Regulations The United States: Operations to the United States by non-U.S. airlines, such as Copa Airlines, are subject to Title 49 of the U.S. Code, under which the U.S. Department of Transportation (DOT), the U.S. Federal Aviation Administration (FAA) and the U.S. Transportation Security Administration (TSA) exercise regulatory authority. The U.S. Department of Justice also has jurisdiction over airline competition matters under the federal antitrust laws. Copa Airlines’ operations to the United States are also subject to regulation by the FAA with respect to aviation safety matters, including aircraft maintenance and operations, equipment, aircraft noise, ground facilities, dispatch, communications, personnel, training, weather observation, air traffic control and other matters affecting air safety. Other Regulation: FAA regulations also require compliance with the Traffic Alert and Collision Avoidance System, approved airborne windshear warning system and aging aircraft regulations. The company’s fleet meets these requirements. Competition The company’s competitors include Avianca-Taca, American Airlines, Delta Airlines, AeroMexico, and the LAN Group. History Copa Holdings, S.A. was founded in 1947.