OST Filings for January 8, 2003

Exemptions under 49 U.S.C 40109 and Statements of Authorization under 14 CFR 212 for American Airlines, Inc.; TWA Airlines, LLC; American Eagle Airlines, Inc., or Executive Airlines, Inc. d/b/a American Eagle and Cathay Pacific Airways, Ltd. to the extent necessary to permit applicants to conduct reciprocal code share operations as follows:

American to display the "CX" designator code on flights operated by American, TWA, American Eagle or Executive Airlines d/b/a American Eagle:

(1) between and among Cathay Pacific's U.S. and Canadian gateways; (2) beyond Cathay Pacific's U.S. and Canadian gateways to 20 U.S. points, subject to confirmation by diplomatic note from the Government of Hong Kong to the Government of the United States, as follows: Atlanta, Austin, Boston, Chicago, Dallas/Ft. Worth, Denver, Detroit, Ft. Lauderdale, Hartford, Houston, Las Vegas, Miami, Orlando, Philadelphia, Pittsburgh, San Diego, San Jose, San Juan, St. Louis, and Washington/Baltimore; (c) between the United States and third-country points intermediate to Hong Kong, connecting to flights operated by Cathay Pacific between such points and Hong Kong; and (d) beyond the United States to third-country points.

Cathay Pacific Airways, Ltd. to display the "AA" designator code on flights operated by Cathay Pacific:

(1) between Hong Kong and Cathay Pacific's U.S. gateways; (2) between Hong Kong and third-country points intermediate to the United States, connecting to flights operated by American between such points and the United States; and (3) beyond Hong Kong to third-country points.

The Joint Applicants state that they give notice that they initially intend to code share between and among Cathay Pacific's U.S. gateways of Los Angeles, San Francisco, and New York/Newark and that they give initial notice of Tokyo, Japan, as an intermediate code-share point, and of Bangkok, Thailand; Kuala Lumpur and Penang, Malaysia,, and Singapore as beyond codeshare points.

With respect to the Statement of Authorization for American and its affiliates, we have received confirmation by diplomatic note from the Government of Hong Kong that it selects the following 20 U.S. code-share points under the MOU: Atlanta, Austin, Boston, Chicago, Dallas/Ft. Worth, Denver, Detroit, Ft. Lauderdale, Houston, Las Vegas, Miami, New York/Newark, Orlando, Philadelphia, Pittsburgh, San Diego, San Jose, San Juan, St. Louis, and Washington/Baltimore. Consistent with the terms of the authority we are awarding and the associated conditions (see below), these 20 U.S. points are the ones that are available at this time for display of Cathay Pacific's code on flights operated by American and its affiliates. In this regard, we are dismissing the Joint Applicants' request to code share between Los Angeles and San Francisco, and to Hartford.

Finally, with respect to United's comments on the MOU's code-share frequency limitations, we have added a condition (see below) explicitly limiting the code-share operations to no more than the level of weekly frequencies permitted for code-share services under the U.S.-Hong Kong MOU.

By: Paul Gretch

Index

Computer Reservations System

OST-97-2881
OST-97-3014
OST-98-4775
OST-99-5888

Issued January 2, 2003
January 8, 2003

Previously Posted January 3rd

Proposed Rule; Notice of Petition Response Date

Computer Reservations System

The Department has issued a notice of proposed rulemaking that proposes to readopt and amend its existing rules governing airline computer reservations systems (CRSs) and to clarify the requirements of its Statements of General Policy on travel agency disclosure of any agency service fees. Sabre, one of the CRSs, has filed a petition asking for a fact hearing. The Department is now establishing January 13, 2003, as the due date for responses to Sabre's petition.

By: Kirk Van Tine

Index

Continental Airlines, Inc.

OST-97-2347

January 8, 2003

Application for Renewal

Exemption - Integration of Route Authority

Requests renewal of its exemption to integrate its authority to provide scheduled foreign air transportation of persons, property and mail under its certificates for Routes 29-F, 59, 82-F, 110, 157, 165, 176, 381, 383, 482, 509, 561, 629 and 659, its general domestic certificate as reissued by Order 98-7-6 and its exemption authority so it can provide foreign air transportation involving any points on these certificates of public convenience and necessity and exemptions. Continental asks the Department to renew its route integration authority exemption for an indefinite period or, in the alternative, for a period of at least two years.

Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2500

OST-97-2447

January 8, 2003

Application for Renewal of an Exemption

US-Ecuador Frequencies

Continental currently operates daily service between New York/Newark and Quito via Bogota and between New York/Newark and Guayaquil via Panama City. Continental's original exemption authority and frequency allocations for New York/Newark-Quito via Bogota and New York/Newark Guayaquil via Panama City were granted by Notice of Action Taken dated February 14, 1996 and by Order 96-7-4, respectively. By sustaining its present New York/NewarkEcuador service, Continental will continue to provide significant inter-gateway competition with American's Miami-Ecuador service.

Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2500

Index

Essential Air Service at Ponce, Puerto Rico

OST-99-6592

December 30, 2002
Docketed January 8, 2003

Correspondence

90-Day Notice of Intent to Terminate Service at Ponce, Puerto Rico

Correspondence from PJ Associates regarding Cape Air and its service between San Juan and Ponce, Puerto Rico.

By: Paul Frost

Index

Societe Air France and Alitalia-Linee Aeree Italiane-S.P.A.

OST-02-13958

January 8, 2003

Approval of Application

US-France

We have decided to grant the joint application of Air France and Alitalia for blanket statements of authorization to engage in reciprocal code-sharing services. The code-share services are fully consistent with our open-skies aviation agreements with France and Italy and in the public interest. While we share United's concerns regarding its ability to implement the code share in question with Lufthansa and have supported with the French the United/Lufthansa request for authority, we have reviewed the record before us and our agreement with France and find that we do not have a right under the U.S.-France Agreement for the Lufthansa services in question. In these circumstances, we do not believe it is in the public interest to withhold the requested authority which falls squarely within rights available in our open-skies agreements with Italy and France.

By: Barbara Schools

Index