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American Airlines, Inc.

97-41 | June 18, 1997

Application for Statement of Authorization, Code Sharing with Philippine Airlines

American Airlines, Inc. hereby requests a statement of authorization under 14 CFR Part 207 to permit it to display the "PR" designator code of Philippine Airlines, Inc. on certain flights operated by American.

Codeshare Agreement | Annex A - Definitions | Annex B – Codeshared Flights | Annex C – Governmental Approvals | Annex D – Special Prorate Agreement | Service List

Counsel: American, Carl Nelson, 202-496-5647


Philippine Airlines, Inc. / American Airlines, Inc. (Exemption, Manila-Chicago/Dallas/Miami/Washington, DC / Statement of Authorization, Code Share)

OST-97-2633 | Undocketed | July 3, 1997

Consolidated Answer of United Air Lines

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Although PAL is a designated airline of the Philippines, American is not a designated airline of the United States under the U.S.-Philippine bilateral agreement. Due to bilaterally-agreed limits on designations, American cannot be designated to operate services under the U.S./Philippines air services agreement. Therefore, the statement of authorization and exemption requested by American and PAL, respectively, are extrabilateral in nature.

A code share of the type proposed by American and PAL would produce benefits, particularly for those carriers, but benefits for the public from code sharing are fully realized only when carriers are able to offer code share services that compete with each other. Such competitive services offer the public additional choices that are not available under the sort of codeshare arrangements proposed by PAL and American which, under the present bilateral agreement, would be insulated from competition. In order to compete effectively with PAL, United and other U.S. carriers should be permitted to offer code-share services to points beyond Manila with any Philippine air carrier authorized to serve those points, whether or not that Philippine carrier is designated under the U.S.-Philippine air services agreement.

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


Philippine Airlines, Inc. / American Airlines, Inc. (Exemption and Statements of Authorization, Codeshare)

OST-97-2633 | Undocketed | July 14, 1997

Joint Reply of American Airlines and Philippine Airlines

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PAL's agreement with American does not require extrabilateral authority. Contrary to United's claims, PAL has long had the right to enter into codeshare agreements with non-designated U.S. carriers. In this respect, PAL's agreement with American is no different from an earlier codeshare arrangement between PAL and TWA. United reads the 1995 Memorandum of Consultations ("MOC") as stripping PAL of this right, a view that is at odds with the liberalizing intent of the MOC. It is also flatly inconsistent with the specific assurances which the Philippine delegation sought, and obtained, from U.S. negotiators on this very point. The discussions leading up to the MOC focused not on the removal of existing entitlements but on the expansion of bilateral rights for the carriers of both sides. Properly construed, the MOC takes away none of the rights which PAL previously exercised to codeshare with non-designated U.S. airlines. United is alone in taking the opposite position. None of the other designated U.S. carriers view the bilateral so restrictively. Moreover, United itself has been inconsistent in advancing its peculiar interpretation of the bilateral's meaning. It has not previously objected to other requests for cooperative agreements between PAL and non-designated U.S. carriers involving U.S.-Philippine services.

Counsel: American, Carl Nelson, 202-496-5647 / Philippine and Zuckert Scoutt, Raymond Rasenberger, 202-298-8660


Philippine Airlines, Inc. and American Airlines, Inc. (Exemption and Statement of Authorizations, Code-Sharing)

OST-97-2633 | Undocketed | July 17, 1997

Response of United Air Lines and Motion for Leave to File

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PAL and American claim that United is trying to "block" their code share in order to "frustrate additional competition" in the U.S.-Philippines market. In fact, United is seeking to assure that additional competition in this market can flourish notwithstanding anti-competitive provisions added to the bilateral code-share provision by the Philippine government during the last round of negotiations. United is seeking a bilateral regime in which all designated carriers of each side (not just PAL) are guaranteed the right to code share with nondesignated carriers of the other side.

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


American Airlines, Inc. - (New Notice of Action Taken)

Undocketed | Filed June 18, 1997 | Action Taken April 6, 1998

Notice of Action

Display Philippine Airlines "PR" designator code on flights operated by American between the following points: 

Applicant rep.: Carl Nelson Jr., 202.496.5647


American Airlines, Inc.

98-64 | June 3, 1998 | Placed in Public Binder only the Afternoon of June 17, 1998

Application for Amended Statement of Authorization (Codesharing with Philippine Airlines)

American Airlines, Inc., under 14 CFR Part 207, hereby requests amendment to its statement of authorization, issued by Notice of Action Taken (undocketed) on April 6, 1998, to permit it to display the "PR" designator code of Philippine Airlines, Inc. between Los Angeles and Newark, and between Vancouver and New York. As shown in the agreement attached to American's initial codeshare application submitted on June 18, 1997, these services will be operated in conjunction with PAL's transpacific flights serving Manila.

Service List

Counsel: Carl Nelson Jr. for American, 202.496.5647


American Airlines, Inc. (Codeshare with Phillipine Airlines Inc.)

98-64| Filed June 3, 1998 | Approved July 8, 1998

Re: Amended Statement of Authorization

Counsel: Carl Nelson, 202.496.5647


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