American Airlines and Aero California

American Airlines, Inc. and Aero California S.A. de C.V.

May 7, 1997

Joint Application for Statements of Authorization, Reciprocal Code-Sharing Services

American and Aero California are planning to implement their code-sharing agreement by August 1, 1997, and require several months to arrange for that implementation. Accordingly, they request expedited approval of this joint application so that advance marketing and sales of the proposed services can commence as soon as possible, and the public can begin to benefit from the enhanced competition that will result.

Counsel: Steptoe Johnson, David Coburn, 202-429-8063 for Aero California | American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com

American Airlines, Inc. and Aero California S.A. de C.V. (Exemption and Statements of Authorization, US-Mexico Codesharing)

OST-97-2477 & 97-2481 & Undocketed | May 22, 1997

Consolidated Answer of Alaska Airlines

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Alaska has one further potential concern about America's pending codeshare agreement - the Los Angeles-Mexico City market. Since the code-share agreement indicates that Mexico City is one of the Mexican behind-the-gateway cities to which American intends to display its code on Aero California's internal Mexican sectors, it is unclear whether American therefore intends to hold out Los Angeles-Mexico City services on a connecting flight, code-share basis. It is also unclear whether the Mexican Government's code-share policy would extend to such connecting flight-"behind-the-gateway" operations. With the well-known history of Alaska's interest in the Los Angeles-Mexico City market, Alaska would strongly object to any entry of American in that market as long as the Mexican Government intends to limit the number of U.S. carriers in the largest and most important U.S. Mexico market.

Counsel: Alaska and Squire Sanders, Marshall Sinick, 202-626-6651

Joint Consolidated Answer of United Air Lines and Compania Mexicana de Aviacion

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American and Aero California, unlike United/Mexicana, have chosen not to restrict the city pairs in which they propose to code share. The Department will have to address the issue of whether such unlimited, systemwide U.S.-Mexico code shares may be approved consistent with the terms of the U.S./Mexico bilateral air services agreement as well as with the public interest. Implementation of these services may also require bilateral consultations to determine the extent to which such systemwide code sharing will be allowed and under what conditions.

Counsel: Squire Sanders, Robert Papkin, 202-626-6601 for Mexicana | United and Ginsburg Feldman, Joel Burton, 202-637-9130

Aero California and American Airlines, Inc.

97-44 | May 16, 1997

Re: Joint Application for Statements of Authorization, Reciprocal Code Sharing Services - Letter from Continental

On May 7,1997, American and Aero California filed a joint application for approval of reciprocal code-share services, and Aero California and American filed separate docketed exemption applications seeking additional route authority for the code-share services. Continental is reviewing the applications and expects to submit a consolidated response within the time for answering the exemption applications since the requests for statements of authorization and the exemption applications raise the same issues.

Counsel: Crowell Moring, Lorraine Halloway, 202-628-5116, lhalloway@cromor.com

American Airlines, Inc. and Aero California, S.A. de C.V. (Exemptions and Statements of Authorization)

OST-97-2477, 97-2481, Undocketed | June 3, 1997

Joint Reply of American Airlines and Aero California

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Aside from suggested conditions with respect to designation limitations, the American and Aero California applications for code-sharing authority are unopposed. The Department should immediately grant these applications, and should continue to work with the Government of Mexico to achieve a code-sharing designation policy that will increase competition and provide benefits to consumers in the U.S.-Mexico market.

Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com / Steptoe Johnson, David Coburn, 202-429-8063

Aero California S.A. de C.V. and American Airlines, Inc. (Exemption to Code Share / Statements of Authorization)

OST-97-2481, 97-2477, Undocketed | June 12, 1997

Consolidated Answer of Continental Airlines and Motion for Leave to File

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The Los Angeles-Mexico City market demonstrates why a new agreement must be reached. Continental, like Alaska, has had a longstanding interest in serving the Los Angeles-Mexico City market, but it has been precluded from doing so because of the two-designation limitation insisted upon by Mexico in that market. Even with two U.S. carriers and two Mexican carriers serving the market independently, demand clearly has exceeded supply in the Los Angeles-Mexico City market for some time. Instead of four third/fourth freedom carriers serving the Los Angeles-Mexico City market independently, however, two pairs of carriers may soon be code-sharing together in the market. With Delta and AeroMexico already code-sharing in the market and United and Mexicana seeking authority to do so, effective competition demands additional entry in the market even more than it did when each carrier was offering its service entirely independently. In markets where only two carriers from each country can be designated and each of the Mexican carriers seeks to code-share with one of the U.S. carriers, the U.S. should insist upon open designation, or, at a very minimum, two additional designations for U.S. carriers.

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

American Airlines, Inc. and Aero Califronia, S.A. de C.V. (Exemption and Statements of Authorization, US-Mexico Codesharing)

OST-97-2477 | OST-97-2481 | Undocketed | June 17, 1997

Joint Motion of American Airlines and Aero California for Leave to File and Response to Unauthorized Surreply of Continental Airlines

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Apart from the fact -- as we will discuss below -that Continental's pleading is highly improper and in violation of the Department's rules and orderly administrative procedures, there is no basis to delay approval of the proposed American/Aero California code-share pending bilateral negotiations with Mexico. Having approved the Delta/Aeromexico applications, despite the absence of a code-sharing provision in the bilateral agreement, it would not be appropriate for the Department to reject "further" requests, and indeed to do so would confer an unfair competitive advantage on Delta and on its partner Aeromexico, which with its affiliate Mexicana constitutes the dominant flag carrier of Mexico. Continental's interest in seeking a moratorium on new U.S.-Mexico code-shares pending negotiation of an amended bilateral agreement is not based on any principled reason why such a moratorium might be appropriate. Rather, what is plain is that Continental does not have a code-share partner in the U.S.-Mexico market, and thus wants to do what it can to delay or impede the ability of other carriers to offer new and competitive services to the traveling public.

Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com

American Airlines, Inc. and Aero California S.A. de C.V. (Exemptions and Statements of Authorization, US-Mexico Codesharing)

OST-97-2477 | OST-97-2481 | Undocketed | June 19, 1997

Response of United Air Lines and Motion for Leave to File

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Any delay of the United/Mexicana code share while the Department resolves issues raised by the American/Aero California application would be particularly unfair in circumstances where Delta and Aeromexico have already been allowed to implement their own code share pursuant to a scope of operations comparable to that proposed by United and Mexicana. United takes no position with respect to whether the American/Aero California issues must be resolved through bilateral negotiations. However, the much narrower United/Mexicana code share raises no issues that have not already been addressed and resolved by the Department in the case of the comparable Delta/Aeromexico code share. No bilateral consultations were required there and none are required here. The Department approved the Delta/Aeromexico code share under principles of comity and reciprocity which have equal applicability to the proposal of United and Mexicana.

Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130

American Airlines, Inc. and Aero California S.A. de C.V. (Exemption and Statements of Authorization, US-Mexico Code Sharing)

OST-97-2477, OST-97-2481, Undocketed | July 1, 1997

Motion for Leave to File and Response of Delta Air Lines

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If the Department decides to consider blanket code-share authority, Delta/Aeromexico and other U.S. carriers with Mexico code-share arrangements have a right to seek comparable blanket authority to provide competing code-share services on a systemwide basis. The Department will need to determine the extent to which multiple blanket U.S.-Mexico code-share services would be consistent with the U.S.-Mexico bilateral agreement and/or would be accepted by the Government of Mexico on an extrabilateral basis. This inquiry will require consultations between the Governments of the United States and Mexico. Delta believes that the public interest strongly supports a liberal code-share regime and a policy that fosters and promotes the expansion of services of all types (direct and code-share) by carriers from both the United States and Mexico. To the extent that bilateral designation limitations restrict the Department's ability to grant blanket code-share authority to multiple U.S. carriers, the Ashbacker doctrine requires that other U.S. carriers have an opportunity to have a comparative evaluation of competing requests for systemwide authority.

Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060

American Airlines, Inc. and Aero California S.A. de C.V. (Exemptions and Statements of Authorization, US-Mexico Code-Sharing)

OST-97-2477, OST-97-2481, Undocketed | July 8, 1997

Joint Motion of American and Aero California for Leave to File and Response to Unauthorized Comments of Delta Air Lines

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Delta, which already has broad code-sharing authority in the U.S./Mexico market and thus a competitive advantage over Joint Applicants, may be hoping to close the door behind it by suggesting that the American/Aero California application is more complex than is in fact the case. Like the Delta/AeroMexico, and the recently approved United/Mexicana code-share arrangements, the Joint Applicants have simply applied for code-sharing and related exemption authority, nothing more and nothing less. Consistent with Delta's announced support for "a policy that fosters and promotes the expansion of services of all types,'' the Joint Applicants seek authority that embraces more city pairs than either of the other code-sharing carrier partners chose to request. However, the fact that more points are included in the American/Aero California application than Delta or United (and their partner carriers) opted to include in their prior code-share arrangements (1) does not mean that different procedures should be applied by the Department for handling this application than would apply for any other code-share application in this market; (2) does not change the fact that consultations with the Mexican Government on designation and other issues may be appropriate here as would be the case with any code-share application in the U.S./Mexico market; and (3) most certainly does n give rise to Ashbacker rights with respect to hypothetical applications of other carriers for code-sharing that may overlap with the American/Aero California application.

Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com / Steptoe Johnson, David Coburn, 202-429-8063 for Aero California

American Airlines, Inc. and Aero California S.A. de C.V. / United Air Lines, Inc. and Compania Mexicana de Aviacion, S.A. de C.V. / Delta Air Lines, Inc. and Aerovias de Mexico, S.A. de C.V. / United Air Lines, Inc.

Order Granting (In Part) Exemption and Statements of Authorization and Order to Show Cause

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By this order we grant, in part, the captioned applications of American Airlines, Inc. (American), and Aero California S.A. de C.V. (Aero California), for exemption authority and statements of authorization to permit the carriers to engage in certain code-share services in various U.S.-Mexico markets. Additionally, this order proposes certain conditions to be imposed on all U. S.-Mexico code-share arrangements to permit, in certain instances, direct air carrier services to replace code-share services in a given city-pair market.

Appendix A – Applicants Seek to Place Aero California’s Designator Code on the Following American/American Eagle Services between US Gateways and Points in the US
Appendix B - Applicants Seek to Place American’s Designator Code on the Following Aero California Services between Mexico Gateways and the Following Points in Mexico
Appendix C – US-Mexico Exemption Authority Granted to American Airlines by this Order
Appendix D – Statement of Authorization Granted to American to Place Aero California’s Designator Code on American’s Transborder Flights in the Following Markets / Intra-US Flights
Appendix E – Statement of Authorization Granted Aero California by this Order for the Following Markets

By: Charles Hunnicutt

American Airlines, Inc and Aero California, S.A. de C.V. / United Air Lines, Inc. and Compania Mexicana de Aviacion S.A. de C.V. / Delta Air Lines, Inc. and Aerovias de Mexico, S.A. de C.V. / United Air Lines, Inc.

OST-97-2477/2481 | Undocketed | OST-96-1988 | OST-97-2161 and Undocketed | Undocketed

Joint Comments of American Airlines and Aero California on Order 97-7-31

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Second, and even more importantly, a conditional grant of the application would unambiguously signal to the Mexican authorities that the Department favors, as the Order 97-7-31 states, the expansion of U.S.-Mexico service options through codeshare arrangements. In this connection, the Joint Applicants believe that the grant of the application subject to the issuance of designations and underlying economic authority could further the bilateral discussions between the U.S. and Mexico on codesharing arrangements and leave no question as to the intent of the Department to allow extensive codesharing services to be offered in the U.S.-Mexico market.

Counsel: Steptoe Johnson, David Coburn, 202-429-8063 | American, Carl Nelson, 202-496-5647

American Airlines, Inc. and Aero California S.A. de C.V.

September 30, 1997

Re: Joint Application for Amended Statements of Authorization (Reciprocal Codesharing Services)

Place Aero California's "JR" designator code on American's flights Miami-Monterrey, San Antonio- Mexico City, and Dallas/Ft. Worth-Puebla. Place American's "AA" designator code on Aero California's flights LA-Tijuana and between Mexico gateway cities and Los Mochis.

Codeshare Agreement Amendment 3 - August 14 | Codeshare Agreement Amendment 4 - September 19 | Service List

Counsel: Steptoe Johnson, David Coburn for Aero California, 202.429.8063; Carl Nelson Jr. for American, 202.496.5647

American Airlines, Inc. and Aero California, S.A. de C.V. / United Air Lines, Inc. and Compania Mexicana de Aviacion, S.A de C.V. / Delta Air Lines, Inc. and Aerovias de Mexico, S.A. de C.V. / Northwest Airlines, Inc. / American Airlines, Inc. / United Air Lines, Inc.

Final Order and Order on Reconsideration

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By this order we make final our tentative decision in Order 97-7-31, issued July 29, 1997, to condition all existing and future U.S.-Mexico code-share authorities to establish a rebuttable presumption in favor of replacing code-share services with direct air carrier services in a given city-pair market. Further, upon reconsideration, we affirm our decision in Order 97-7-31 to defer action on certain portions of the American/Aero California applications.

It has been our longstanding policy to grant authority only in cases where the route rights are available under the bilateral agreement between the United States and the country involved or where we have assurance from the country involved that it is prepared to approve the proposed operations on an extrabilateral basis. Furthermore, because of the limited-entry nature of the U.S.-Mexico market, along with the dormancy provisions attached to all U.S.-Mexico route authority, we have awarded U. S.-Mexico authority only in markets where carriers have firm plans for service. Consistent with these policies, we granted the applications of American and Aero California only in markets where the authority was available under the U.S.-Mexico aviation agreement and where Aero California held the requisite authority and corresponding Mexican Government designation. No party has presented any persuasive reason to deviate from those polices here.

By: Charles Hunnicutt

American Airlines, Inc. and Aero California S.A. de C.V.

October 20, 1997

Re: Joint Application for Renewal of Statements of Authorization

American Airlines, Inc. (and its regional affiliates Executive Airlines, Inc., Flagship Airlines, Inc., Simmons Airlines, Inc., and Wings West Airlines, Inc.) and Aero California S.A. de C.V. hereby jointly apply, under 14 CFR Parts 207 and 212, for renewal of their respective statements of authorization to engage in certain reciprocal codeshare services, granted by Order 97-7-31, July 29, 1997, and made final by Order 97-9-38, September 29, 1997.

Service List

Counsel: Steptoe Johnson, David Coburn, 202-429-8063 for Aero California / American, Carl Nelson, 202-496-5647

American Airlines, Inc. and Aero California S.A. de C.V.

October 29, 1997

Answer of Northwest Airlines

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To Northwest's knowledge, the Mexican Government's position with respect to the extension of the Northwest/Alaska code-share arrangement has not changed. Hence, it is in the public interest for the Department to continue to restrict to 180 days all codeshare authorizations involving Mexican carriers, including the aforementioned American/Aero Mexico code-share authorizations, thereby depriving Mexican carriers of the benefit of the procedural safeguards of the Administrative Procedure Act with respect to such services.

The Governments of the United States and Mexico are tentatively scheduled to conduct negotiations on code-sharing issues in early November. The Department's continued limitation of Mexican carriers' code-share authorizations will send a clear message that the Mexican Government should endeavor to resolve the problems encountered by Northwest and Alaska Airlines during the upcoming negotiations.

Counsel: Northwest, Megan Rae Poldy, 202-842-3193

Answer of United Air Lines and Mexicana

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United and Mexicana have also requested renewal of their own statements of authorization to code share on each other's services. See Joint Application, dated October 21, 1997. The United/Mexicana authority, like that of American/Aero California, is also scheduled to expire on December 20, 1997, and for the same reason. See Notices, dated June 24, 1997, in Docket OST-96-1988.

United and Mexicana have no objection to the renewal of the American/Aero California code-share authority so long as the United/Mexicana codeshare authority is also renewed. These U.S.-Mexico code-share services offer benefits to the public in terms of additional travel options. The United/Mexicana and American/Aero California code shares offer competition with each other and both should be renewed to allow that competition to continue. There is no basis for renewing one set of these code-share authorizations on terms different from those applicable to the other.

Counsel: Ginsburg Feldman, Joel Burton for United / Squire Sanders, Robert Papkin for Mexicana

American Airlines, Inc. and Aero California S.A. de C.V.

97-78 | Filed October 20, 1997 | Approved December 18, 1997

Re: Joint Statements of Authorization - Approval Stamp is on Page 2

DOT Attachment | DOT Attachment

Counsel: Steptoe Johnson, David Coburn, 202.429.8063 for Aero California; Carl Nelson Jr. for American, 202.496.5647

American Airlines, Inc. and Aero California, S.A. de C.V. (Reciprocal US-Mexico Codesharing)

February 4, 1998

Re: Joint Application for Statements of Authorization

Request immediate action on discrete city-pairs included in their joint application intitially submitted May 7, 1997 and amended September 30, 1997.

Boston-La Paz	DFW-Leon
Boston-Loreto	DFW-Loreto
Boston-Mazaltan	DFW-Los Cabos
Chicago-Acapulco	DFW-Monterry
Chicago-Culiacan	DFW-Tijuana
Chicago-Hermosillo	New York-Hermosillo
Chicago-Torreon	New York-Los Cabos
DFW-Cancun	New York-Tijuana
DFW-Culiacan	Mexico City-Indianapolis
DFW-Durango	Mexico City-Minneapolis
DFW-Guadalajara
DFW-Hermosillo	Mexico City-Seattle

Counsel: Steptoe Johnson, David Coburn, 202-429-8063 for Aero California / American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com

American Airlines, Inc. and Aero California, S.A. - (Reciprocal US-Mexico Codesharing)

February 13, 1998

Re: Joint Application for Statements of Authorization - Answer of United Air Lines, Inc.

Because the issue of the city-pair designation restrictions in the U.S.-Mexico bilateral air services agreement has yet to be resolved, the Department must defer action on the Joint Applicants' request to the extent there are insufficient designations available to satisfy both partnerships. As the Department has previously determined, deferral is appropriate for U.S.-Mexico city pairs where a designation is unavailable or the request is mutually exclusive with that of another U.S. carrier. See, eg., Order 97-7-31 at 6-7. Deferring action on the Joint Applicants' request for code share authority for the above-referenced routes is necessary to preserve the rights of other U.S. carriers, such as United, that are seeking designation for the same routes until the matter of limited designations is resolved.

Counsel: Ginsburg Feldman, Joel Burton, 202.637.9000

American Airlines and Aero California S.A. de C.V.

February 23, 1998

Re: Joint Response of American and Aero California to United Air Lines

Re: Joint Response of American and Aero California to Delta Air Lines

Counsel: Steptoe Johnson, David Coburn, 202-429-8063 / American, Carl Nelson, 202-496-5647

American Airlines, Inc. / Aero California, S.A. de C.V. / American Airlines, Inc. and Aero California, S.A. de C.V.- (New Notice of Action Taken)

OST-97-2477 | OST-97-2944 | Filed May 7 and September 30, 1997 | OST-97-2481 | OST-97-2961 | Filed May 7 and October 1, 1997 | Undocketed | Filed May 7 and September 30, 1997 | Action Taken March 20, 1998

Notice of Action | Attachment

Scheduled foreign air transportation of persons, property, and mail between various points in the United States and various points in Mexico, to allow for expansion of the code-share arrangement between American Airlines, Inc. (American), and Aero California S.A. de C.V. (AeroCalifornia).

Applicant Representative: Carl Nelson for American, 202.496.5647 ; David Coburn for Aero California, 202.297.8063

American Airlines, Inc. and Aero California, S.A. de C.V. (Notice of Action Taken)

OST-97-2477 | OST-97-2944 | OST-97-2481 | OST-97-2961 | Undocketed | Filed May 7, 1997, September 30, 1997, October 1, 1997 | Action Taken April 28, 1998

Notice of Action

Scheduled foreign air transportation of persons, property, and mail between the terminal point Boston, Massachusetts, and the coterminal points La Paz, Loreto, and Mazatlan, Mexico. Aero California plans to operate the service under a code-share arrangement with American.

Display Aero California's "JR" airline designator code on nights operated by American between Los Angeles and Boston for the carriage of Aero California's Mexico-Boston traffic described above.

Applicant Rep: Carl Nelson, 202-496-5647 for American / David Coburn, 202-429-8063 for Aero California

American Airlines, Inc. and Aero California, S.A. de C.V. - (Codesharing)

98-44 | April 29, 1998

Re: Joint Application for Renewal of Statements of Authorization Under Parts 207 & 212

The American/Aero California codesharing authority is set to expire on June 14, 1998. For the reasons stated in the joint answer of American and Aero California, submitted on April 24, 1998, to the codeshare renewal applications of Delta/ Aeromexico and United/Mexicana (undocketed), the Department should renew the respective authorizations for a limited term; should press the Mexican aeronautical authorities for prompt liberalization of the U.S.-Mexico Air Transport Agreement; and should closely tie any further renewals to progress in bilateral negotiations.

Service List

Counsel: Steptoe Johnson, David Coburn for Aero California, 202.429.8063; Carl Nelson, Jr. for American, 202.496.5647

Order Confirming Notices of Action Taken

Order 98-6-2 | Issued June 2, 1998 | Served June 8, 1998

Order

American Airlines: OST-98-3401 | Undocketed* | Undocketed* | OST-97-2477* | OST-97-2944*
American Airlines and Aero California: Undocketed*
Aero California: OST-97-2481* | OST-97-2961*
Continental Airlines: OST-98-3317 | OST-98-3466
Delta Air Lines and Aeromexico: OST-97-3289*
Trans World Airlines: OST-98-3325*
United Air Lines: OST-96-1348* | OST-96-1554* | OST-96-1560*
United Air Lines and Mexicana: OST-97-3237*
United Air Lines and Lufthansa: OST-98-3476*

By: Paul Gretch

American Airlines, Inc. and Aero California, S.A. de C.V. - (Codesharing Under Parts 207 and 212)

98-44 | Filed April 29, 1998 | Approved June 12, 1998 through December 8, 1998

Re: Joint Statements of Authorization and DOT Attachment

Counsel: Steptoe Johnson, David Coburn fro Aero California, 202.429.8063; Carl Nelson, Jr. for American, 202.496.5647

American Airlines, Inc - (Codesharing with Aero California Chicago-Monterrey and Miami-Cozumel)

June 29, 1998

Re: Part 207 Application | Re: Codeshare

Service List

Counsel: Carl Nelson, Jr., 202.496.5647

American Airlines, Inc - (Codesharing with Aero California Chicago-Monterrey and Miami-Cozumel)

98-69 | July 9, 1998

Re: Application of American Airlines, Inc. for a Statement of Authorization - Response of United Air Lines, Inc.

We are unaware of a corresponding Aero California application for exemption authority to serve either of the markets in which American seeks to code share. Moreover, it does not appear that a designation is available for Aero California in the Miami-Cozumel market, a market already served by both Mexicanaand Aeromexico. Accordingly, the issue of city-pair designation restrictions in the U.S.-Mexico bilateral air services agreement must be resolved before the Department can act on American's request for Miami-Cozumel code-share authority. See, eg, Order 97-9-38 at 5 ("We have decided to grant the joint petition of American and Aero California for reconsideration of Order 97-7-31 and, upon reconsideration, to affimn our decision in that order to limit our approvals to those markets where authority is available under the U.S.-Mexico aviation agreement and Aero California holds the necessary underlying authority and designation from its government to operate the proposed code-share services").

Counsel: Ginsburg Feldman, Joel Burton, 202.637.9130

American Airlines, Inc - (Codesharing with Aero California Chicago-Monterrey and Miami-Cozumel)

98-69 | July 20, 1998

Re: Application for Statement of Authorization - Joint Answer of American Airlines and Aero California

The Department would be justified in denying the United/Mexicana request in light of the anticompetitive codeshare designation policy of the Mexican government, which controls the Cintra Group carriers (Mexicana and Aeromexico). A perfect example of this anticompetitive nature is that while both carriers hold designations for Miami-Cozumel, neither provides nonstop service; yet United states that "it does not appear that a designation is available for Aero California in the Miami-Cozumel market, a market already served by both Mexicana and Aeromexico.''

Counsel: Carl Nelson, Jr., 202.496.5647, carl_nelson@amrcorp.com

American Airlines, Inc. and Aero California, S.A. de C.V.

98-108 | Filed October 21, 1998 | Issued December 4, 1998 | Expires June 1, 1999

Re: Joint Application for Renewal of Statements of Authorization (Code Share Services)

Approval is granted based on the expectation that the Mexican Government will renew the authorization of Northwest Airlines and Alaska Airlines to conduct codeshare services in the U.S.-Mexico market.

DOT Attachment

Counsels: Steptoe Johnson, David Coburn for Aero California, 202.429.8060, Carl Nelson, Jr. for American, 202.496.5647, carl_nelson@amrcorp.com

American Airlines and Aero California, S.A. de C.V.

February 17, 1999

Re: Joint Request to Amend Statements of Authorization to Grant Blanket Behind and Beyond Codesharing Authority

American Airlines, Inc. hereby amends its portion of the captioned joint application so as to request statements of authorization for American Eagle Airlines, Inc. and Executive Airlines, Inc. d/b/a American Eagle, in addition to American, to engage in blind-sector codesharing on all intra-U.S. route segments behind and beyond U.S. gateway points. To the extent required, American requests leave to file this amendment.

Service List

February 12, 1999

Re: Application of American Airlines for Amendment of Statement of Authorization - Codeshare with Aero California

American Airlines, Inc. hereby applies, under 14 CFR Part 212 (formerly 14 CFR Part 207), for amendment of its statement of authorization, most recently renewed under assigned authority on December 4, 1998, to engage in codesharing services with Aero California, S.A. de C.V. By this application, American seeks authority to display Aero California's "JR" designator code on transborder flights operated by American on two routes, Chicago-Monterrey and Dallas/Ft. Worth-Acapulco.

99-8 | February 5, 1999

Re: Joint Request of American and Aero California to Amend Statements of Authorization to Grant Blanket Behind and Beyond Codesharing Authority

American Airlines, Inc. and Aero California, S.A. de C.V. hereby jointly request amendment of their statements of authorization under 14 CFR Part 212, renewed under assigned authority on December 4, 1998 (No. 98-108), so as to grant blanket authorization to engage in blind-sector codesharing on all intra-U.S. and intra-Mexico route segments they operate behind and beyond their respective gateways.

Counsel: Carl Nelson, 202.496.5647, carl_nelson@amrcorp.com / Steptoe Johnson, David Coburn, 202-429-8063

American Airlines, Inc. and Aero California, S.A. de C.V.

99-8 | February 17, 1999

Re: Joint Request to Amend Statements of Authorization to Grant Blanket Behind and Beyond Codesharing

Service List

Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com

American Airlines, Inc. and Aero California, S.A. de C.V.

OST-97-2477
OST-99-5112
OST-99-5113
Undocketed

February 22, 1999

Consolidated Answer of United Air Lines

US-Mexico Codesharing

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United is not opposed to grant of the American/Aero California applications so long as the pending code-share applications of United and Compania Aviacion de Mexicana are granted concurrently. The recent resolution of the U.S.-Mexico transborder code-share dispute offers the opportunity for all outstanding U.S.-Mexico code-share applications, including those of United and its code-share partners, to be immediately granted.2 United has been seeking to significantly expand its code-sharing with Mexicana for over three years, but the majority of United's application pending in Docket OST-97-3237 and a portion of its application pending in Docket OST-96-1988 have been deferred pending resolution of bilateral code-share issues. On February 12, 1999, United and Mexicana amended their application pending in Docket OST-97-3237 to conform their request to the new bilateral agreement, and are today supplementing their application to affirm that they seek interior code-share authority of the same scope requested by American and Aero California.

United and Kirkland Ellis, Jeffrey Manley, 202-879-5161, jeffrey_manley@kirkland.com

American Airlines, Inc.

98-69 | Filed June 29, 1998 | Dismissed March 4, 1999 (Was Placed in 1998 Codeshare Binder)

Re: Application for Statement of Authorization to Codeshare with Aero California | DOT Dismissal

Chicago-Monterrey / Miami-Cozumel

Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com

American Airlines, Inc. and Aero California, S.A. de C.V.
Delta and Aerovias de Mexico, S.A. de C.V.
United Air Lines, Inc. and Compania Mexicana, S.A. de C.V.

Order 99-6-6 OST-97-2477 Undocketed OST-99-5112 OST-99-5113	Issued and Served June 4, 1999	Order Approving U.S.- Mexico Codeshare Services Scanned Copy	U.S. - Mexico Codeshare Services
		Codeshare, U.S. Carrier and Foreign Air Carrier Conditions

As is our normal practice in these matters, we will impose our standard conditions on the codeshare authorizations, along with our standard dormancy notice conditions for U.S. carriers on the new exemption authority for nonstop transborder U.S.-Mexico services granted by this order. We have decided not to apply the dormancy conditions to the broad exemption authority awarded for the beyond gateway interior U.S. and interior Mexico code-share services authorized. The dormancy conditions were designed to maximize U.S. carrier opportunities under the U.S.-Mexico aviation agreement to ensure that limited-entry routes not being served would be readily available for service by other carriers. Because there are now no limits on the beyond gateway code-share operations under the February 1999 agreement, we do not find that it is necessary, or in the public interest, to apply the dormancy condition to those services.

By: Bradley Mims

American Airlines, Inc. and Aero California, S.A. de C.V.

Order 99-6-6 OST-97-2477 OST-99-5112 OST-99-5113 OST-99-5586 Undocketed	September 30, 1999	Notice to Terminate Codeshare	U.S. - Mexico Codeshare Services
		Service List

Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com