June 13, 2003

OST-03-15423 - Foreign Air Carrier Permit

Application for an Amendment of its Foreign Air Carrier Permit

Alitalia requests that the Department issue to Alitalia an amended foreign air carrier permit that incorporates all the rights available to Alitalia under the Open Skies Agreement. Specifically.

Exhibit 1: Shareholders
Exhibit 2: Operating Certificates
Exhibit 3: Officers and Directors
Exhibit 4: Financial Data
Service List

Counsel: Zuckert Scoutt, Richard Mathias, 202-298-8660

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June 26, 2003

OST-03-15423 - Foreign Air Carrier Permit

Supplement to Application

This is to supplement the information submitted with the above-referenced application.

The exchange rate of the U.S. dollar and the Euro on December 31, 2002, was 1 EUR to 0.954 USD. On December 31, 2001, the rate was I EUR to 1.123 USD.

All of the officers and directors listed in exhibit 3 are citizens of Italy.

The 24.4% of the shares of Alitalia shown in exhibit 1 in the category of "Retail" consist of shares that are publicly traded and widely distributed. None of the persons or entities holding shares in this category own more than 2% of Alitalia's shares. The footnote marked with double asterisk indicates that this category includes shares that were previously distributed to Alitalia employees. Such shares are owned and controlled by individual employees.

Counsel: Zuckert Scout, Richard Mathias, 202-298-8660, rdmathias@zsrlaw.com

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Order 03-9-28
OST-03-15423 - Foreign Air Carrier Permit

Issued August 11, 2003 | Served October 1, 2003

Issuing Amended Foreign Air Carrier Permit

In this order we are issuing Alitalia-Linee Aeree Italiane-S.p.A., a foreign air carrier of Italy, an amended foreign air carrier permit, authorizing it to engage in scheduled foreign air transportation of persons, property and mail between Italy and the United States pursuant to the bilateral aviation agreement between Italy and the United States.

By application filed June 13, 2003, Alitalia requests that we issue it an amended foreign air carrier permit to conduct scheduled foreign air transportation of persons, property md mail between Italy and the United States consistent with the provisions of the open-skies aviation agreement between the Italy and the United States. In support of its request, Alitalia states that it has been licensed and designated by the Government of Italy to perform the proposed services, that it is substantially owned and effectively controlled by citizens of Italy, and that it is operationally and financially fi: to perform the proposed services.

Alitalia holds Department authority in the form of a foreign air carrier permit issued by Order 71-4-1, authorizing Alitalia to engage in scheduled combination services between poir ts in Italy and specified points in the United States on various routes, and authority to conduct charters in accordance with Part 212 of our rules. In addition, on January 8, 2002, we granted Alitalia exemption authority, for a two year period, to engage in scheduled foreign air transportation of persons, property and mail identical to the authority at issue here. See Notice of Action Taken, dated January 8, 2002, in Docket OST-1999-6500.

By: Micheal Reynolds

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OST-98-3304 - Family Assistance Plans

March 2, 2004

Re: Amended Family Assistance Plan

Counsel: Zuckert Scoutt, Richard Mathias, 202-298-8660

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OST-98-3304 - Family Assistance Plans

March 8, 2004

Re: Crisis Manual

By: Capt. Rodolfo Proietti

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Continental Airlines, Inc. / Continental Micronesia, Inc. / Alitalia-Linee Aeree Italiane-S.p.A. / Alitalia Express S.p.A.

OST-04-19210 - Statement of Authorization - US-Italy Third Country Services

September 24, 2004

Applications for Statements of Authorization

Continental and Alitalia request statements of authorization to implement their proposed codeshare service. Specifically, Continental and Continental Micronesia seek statements of authorization permitting them to display the Alitalia AZ* code in conjunction with foreign air transportation of persons, property, and mail on Continental and Continental Micronesia flights between (1) points in the United States, (2) points in the United States and points in Italy (either nonstop or via intermediate points in third countries), (3) points in the United States and points in third countries; and (4) points in Italy and points in third countries.

Alitalia and Alitalia Express seek statements of authorization permitting them to display the Continental CO* code in conjunction with foreign air transportation of persons, property, and mail on Alitalia and Alitalia Express flights between (1) points in Italy, (2) points in Italy and points in the United States (either nonstop or via intermediate points in third countries), (3) points in Italy and points in third countries, and (4) points in the United States and points in third countries. Similar blanket codeshare authority has been granted to numerous transatlantic codeshare partnerships involving U.S. and European airlines.

• Re: Redacted Version of the Codeshare Agreement

Counsel: Crowell & Moring, Bruce Keiner, Jr., 202-624-2615

Continental and Alitalia Applications:

• OST-95-347 - Exemption
• OST-95-348 - Newark/Houston, Rome/Milan
• OST-97-2113 - Rome/Milan-Newark/Atlanta
• OST-99-6587 - US-South Africa Third-Country
• Undocketed

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OST-04-19210 - Statement of Authorization - US-Italy Third Country Services

October 5, 2004

Answer of United Air Lines

United requests either that the Department defer action on the pending Alitalia/Continental application until Italy authorizes United (and other U.S. carriers) to serve Milan's Linate Airport by code sharing on flights operated by partners authorized to serve Linate, or, alternatively, to approve the application subject to a condition precedent that the parties may not implement the proposed code-share services until United (and other U.S. carriers) are permitted to hold out service at Linate on a nondiscriminatory basis. The Italian government's discriminatory policy is a direct, unambiguous, and indefensible violation of the express terms of the U.S.-Italy Open Skies Agreement, and one that affords Alitalia and its partners an unfair and unjustifiable competitive advantage. United's position is straightforward: Until the Italian government honors its obligations under the Open Skies Agreement by allowing United to hold out service at Linate, the Department may authorize, but should not allow Alitalia to implement, its proposed code-share services.

Counsel: Wilmer Cutler, Bruce Rabinovitz, 202-663-6960, bruce.rabinovitz@wilmerhale.com

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OST-04-19210 - Statement of Authorization - US-Italy Third Country Services

October 5, 2004

Answer of The City of Houston and The Greater Houston Partnership

Houston has substantial linkages with Italy. According to the Greater Houston Partnership's International Houston: 2003/04 International Business Directory, 397 Houston companies trade goods and services with Italy and 28 Houston companies have subsidiaries in Italy, while eight Italian companies maintain offices in Houston. Examples of the Houston companies that trade with Italy are Andarako Petroleum which has partnered for oil exploration and production projects with Eni S.p.A. of Italy, and BMC Software, which maintains a regional office in Italy.

Counsel: Zuckert Scoutt, Rachel Trinder, 202-298-8660

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OST-04-19210 - Statement of Authorization - US-Italy Third Country Services

October 13, 2004

Reply of Alitalia and Alitalia Express

United has failed to show either that Italy has violated the bilateral air services agreement or that this is proper forum or proceeding for the U.S. to consider the issue. Even if there were a legitimate issue, it should be taken up between the Governments of Italy and the United States under diplomatic procedures provided for in the agreement. As asserted by United, it involves equally all other U.S. carriers, although notably only United has complained. It has been in place since January, 2001. United is asking the Department to bypass all normal procedures for dispute resolution by rushing to judgment and instant retaliation by withholding the bilaterally authorized codesharing rights sought by Alitalia and Continental.

The limitations on direct and codeshared services at Linate are based on Italy's policy for development of Milan's multiple airports. It is not unreasonable or unfairly discriminatory for the policy to allow the carriers serving Linate to offer on-line connections to their systems, nor to prohibit the multitude of other carriers worldwide to offer services to Linate by codeshare or other marketing arrangements.

Counsel: Zuckert Scoutt, Richard Mathias, 202-298-8660

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OST-04-19210 - Statement of Authorization - US-Italy Third Country Services

October 15, 2004

Motion for Leave to File and Response of American Airlines to Alitalia

American has complained and objected repeatedly to the Department, to the Department of State, to the European Commission, and to the Italian Government for Italy's refusal to permit American to codeshare with British Airways between London (Heathrow) and Linate. The U.K. Department of Transport has similarly lodged objections with the Italian Government in this matter on behalf of British Airways.

We also take issue with Alitalia's statement that "most EU carriers and all non‑EU carriers are unable to offer services at Linate, either with their own flights or by codesharing on the flights of others". In fact, European carriers codeshare into Linate with direct connections via their European hubs to their flights to and from the United States.

United is right to oppose the Continental/Alitalia codeshare application until the discriminatory and unfair treatment imposed by the Italian Government on U.S. carrier codeshare services at Linate has been resolved. American hereby joins United in objecting to the Continental/Alitalia request.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com

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OST-2003-16418 - Exemption - Intra-Europe Codeshare with Delta Air Lines

October 25, 2005

Application for Renewal of Exemption Authority

Alitalia Express S.p.A. requests renewal of its current exemption from 49 U.S.C. section 41301 to the extent necessary for underlying authority to permit Alitalia Express to display the airline designator code of Delta Air Lines, Inc. ("DL") on Intra-European regional routes served by Alitalia Express. See Notice of Action Taken, dated October 29, 2003, in this docket.

Renewal of this limited authority to carry the designator code of Delta Air Lines on the Intra-European flights of Alitalia Express will serve the public interest by enabling the carriers jointly to offer passengers more convenient and coordinated through services between the United States and those points in Europe to which Delta does not operate with its own aircraft. It will expand the network codesharing services whose benefits the Department has often recognized. Also, the authorization is expressly contemplated by the U.S.-Italy open skies agreement and positive, reciprocal aviation relationship between the United States and Italy.

Counsel: Zuckert Scoutt, Richard Mathias, 202-298-8660

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Order 2006-12-2
OST-2006-23528

Issued and Served December 1, 2006

Consent Order

This consent order concerns certain fare displays on Alitalia's U.S. website (www.alitalia.com) and certain displays of Alitalia fares on Travelocity.com, a major travel vendor and agent of Alitalia, that failed to comply with the Department's rule on full fare advertising, 14 CFR 399.84. These fare displays, in addition, constituted an unfair and deceptive trade practice and an unfair method of competition in violation of 49 U.S.C. § 41712. Based on these violations, the order assesses a compromise civil penalty of $29,500 and directs the carrier to cease and desist from future similar violations.

By: Rosalind Knapp

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OST-2007-28728 - Exemption and Amended Foreign Air Carrier Permit - US-EU

July 10, 2007

Application for an Amendment of Foreign Air Carrier Permit and for an Exemption

Alitalia hereby applies for an amendment to its foreign air carrier permit to the full extent authorized by the new Air Transport Agreement between the United States, on the one hand, and the European Union and the member states of the European Union, on the other hand to enable Alitalia to engage in:

1. foreign scheduled and charter air transportation of persons, property and mail from any point or points behind any member state of the European Union via any point or points in any member state and via intermediate points to any point or points in the United States or beyond;
2. foreign scheduled and charter air transportation of persons, property, and mail between any point or points in the United States and any point or points in any member of the European Common Aviation Area;
3. foreign scheduled and charter cargo air transportation between any point or points in the United States and any other point or points;
4. other charters pursuant to the prior approval requirements set forth in Part 212 of the Department’s Economic Regulations; and
5. transportation authorized by any additional route rights that may be made available to European Union carriers in the future.

Alitalia also requests a corresponding exemption pursuant to 49 U.S.C. § 40109 to the extent necessary to enable Alitalia to provide the services described above pending issuance of an amendment to its foreign air carrier permit and such other relief as the Department may deem necessary or appropriate. The U.S.-E.U. Agreement, which was signed on April 30, 2007, is scheduled to enter into effect on March 30, 2008, and Alitalia accordingly requests that the requested amendment to its foreign air carrier permit and exemption also enter into effect on that date, or on any earlier date on which the U.S.-E.U. Agreement is provisionally applied.

Counsel: Zuckert Scoutt, Richard Mathias, 202-298-8660, rdmathias@zsrlaw.com

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OST-1998-3304 - Passenger Manifest Information Plans

October 1, 2007

Passenger Manifest Information Plan

Counsel: Zuckert Scoutt, Richard Mathias, 202-973-7919, rdmathias@zsrlaw.com

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Order 2007-10-30
OST-2007-28728 - Exemption and Amended Foreign Air Carrier Permit - US-EU

Issued and Served October 25, 2007

Order Granting Exemption and to Show Cause

We will grant Alitalia exemption authority to the extent necessary to permit it (1) immediately to accept payments, issue tickets, and enter into charter contracts, and (2) effective March 30, 2008 (the date for provisional application of the U.S.-EU Agreement), to commence flight operations, for the services set forth in ordering paragraph 1 below. We will tentatively grant Alitalia a foreign air carrier permit for these services, to be effective March 30, 2008.

As an additional matter, Alitalia has requested that we grant it, in addition to authority currently contained in the U.S.-EU Agreement, authority to conduct transportation authorized by any additional route rights made available to European Union carriers in the future. We are granting Alitalia's request for this authority by exemption (and tentatively granting it by foreign air carrier permit). We are, however, requiring Alitalia, before it commences any new service under this authority, to provide us with evidence that it holds a homeland license for that new service, unless it has already provided such evidence.

Our action allowing Alitalia to accept payments, issue tickets, and enter into charter contracts now, in anticipation of the effective date of the U.S-EU Agreement, will place the carrier on an equal footing with U.S. carriers holding blanket Open Skies authority, which we have allowed to accept payments and issue tickets for services to points in the European Union. See Notice dated May 1, 2007, "In the Matter of Blanket Open-Skies Certificate Authority." See also Order 2007-6-19, where we granted this authority to British Airways Plc.

By: Paul Gretch

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Order 2008-5-11
OST-2007-28728 - Exemption and Amended Foreign Air Carrier Permit - EU-US

Issued May 7, 2008 | Served May 8, 2008

Final Order

By Order 2007-10-30, issued October 25, 2007, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions stated therein and award an amended foreign air carrier permit in the form attached to the Order and subject to the conditions attached thereto. We gave interested persons 21 days to file objections to the Order. We said that if no objections were filed, all further procedural steps would be deemed waived, and the Department would enter an order (subject to Presidential review under 49 U.S.C. §41307) which would make final the findings and conclusions of the Order.

No objections were received within the time period provided.

By: Paul Gretch

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