Order 00-7-29

American Airlines, Inc. / Delta Air Lines, Inc. and Societe Air France

We have decided to dismiss American's application, We find that no designations are currently available to authorize the proposed code-share operations. Under the 1995 MOC with India, the United States can designate four U.S. carriers to operate third-country code-share services in the U.S.-India market. Those designations have been awarded to United, Northwest, Delta, and TWA. We disagree with American that any of the four designations are available for authorization of American's proposed services. While we authorized TWA's code share in February 1998, TWA has been unable to implement that authorization because the requisite Indian government approval has not yet been forthcoming owing to differences between India and the government of TWA's third-country carrier Royal Jordanian. TWA has made clear on the record that the interested parties are working to resolve the issues affecting implementation of these code-share operations, and TWA has reiterated its intent to begin the approved code-share services once all the necessary government approvals have been obtained. In these circumstances, we do not believe that a withdrawal of TWA's code-share approval is warranted.

Similarly, contrary to American's contention, we do not find that Delta's designation should be withdrawn or that additional regulatory procedures are necessary for the carrier to implement its previously approved code-share services with Air France. Delta has stated that, since the unique FAA restriction on its operations has been removed, it will now resume India code-share service in the immediate future.6 We see no basis for withdrawal of the designation in these circumstances. Furthermore, as Delta holds Department approval for code-share services with all three airlines, and as such multiple third-country carrier relationships are permissible under the U.S.-India agreement, we do not view the termination of its relationship with Swissair as a basis for challenging the continuation of Delta's designation or otherwise triggering carrier selection procedures in this case.

We appreciate American's interest in serving India with its code-share partners. Should additional designations become available, American would be free at that time to refile an application for approval of third-country code-share services in the U.S.-India market.

By:  Bradley Mims

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