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OST-2000-6903

http://www.aa.com/

American Airlines, Inc.

All four of the currently-available designations have been assigned, as follows: Delta/Swissair via Zurich; Northwest/KLM via Amsterdam; United/Lufthansa via Frankfurt and Munich; and Continental/Air France and Continental/Czech Airlines via Paris and Prague, respectively. See Order 99-329, March 31, 1999. However, the Delta/Swissair codesharing arrangement is ending, effective August 5, 2000. Moreover, the Continental/Air France arrangement ended last year, and Continental and Czech Airlines never implemented their proposed codesharing services to Bucharest. In these circumstances, two of the four U.S.-Romania third-country codesharing opportunities awarded by Order 99-3-29 should be reassigned.

Counsel:  American, Carl Nelson, 202.296.5647, carl_nelson@amrcorp.com

American Airlines, Inc.

In an attempt to claim one of four already-assigned third-country codeshare designations available under the U.S.-Romania bilateral aviation agreement, American mistakenly states that "Continental and Czech Airlines never implemented their proposed codesharing services to Bucharest." In point of fact, Continental and CSA have implemented their U.S.-Romania codeshare services.

Although Continental does not oppose the assignment to American and Swissair of the soon-to-be-available Delta/Swissair U.S.-Romania codeshare designation for their proposed services, there is no basis for reassigning the designation authorizing the codeshare services currently provided by Continental and CSA between Prague and Bucharest. Since, as American noted in its application, an additional U.S.-Romania third-country codesharing designation will become available when Delta and Swissair cease codesharing on August 5, 2000, and all restrictions on U.S.-Romania codesharing expire October 31, 2001 American will soon be able to institute U.S.-Romania codesharing service with its new partner without depriving Continental and CSA of the ability to continue their Romania codesharing. For the foregoing reasons, Continental urges the Department to deny the application of American for an exemption authorizing foreign air transportation of persons, property and mail between points in the United States and points in Romania, via Zurich, and a U.S.-Romania third-country codesharing designation for codeshare services to be offered with Swissair to the extent that American seeks reassignment of the designation authorizing U.S.-Romania codeshare services currently offered by Continental and CSA.

Counsel:  Continental and Crowell Moring, Bruce Keiner, 202-624-2615

Delta Air Lines and Air France

Delta Air Lines, Inc. hereby replies to American’s February 24, 2000 letter in opposition to the above-referenced codeshare notice.  To the extent relevant, Delta is also requesting that a copy of this letter be included in dockets OST-00-6903 and OST-00-6982 by which American purports to apply for “available” designation opportunities in limited-entry codeshare markets resulting from Delta’s decision to switch codeshare partners from Swissair to Air France.

Counsel:  Shaw Pittman, Robert Cohn, 202.663.8007

Delta Air Lines and Air France

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

American Airlines, Inc.

Counsel:  American, Carl Nelson, 202.296.5647, carl_nelson@amrcorp.com

Delta Air Lines, Inc. and Air France

American attempts to draw a completely inapposite comparison between Delta’s advanced and proper notification of its intent to amend the intermediate service point and operating partner for its duly-awarded codeshare designations, and American’s unauthorized and unlawful unilateral transfer of city-pair specific frequencies operated by American to an entirely different U.S.-Brazil route, without seeking Department approval. 

American’s protestations provide no legitimate basis for the Department to delay the issuance of the requested notice. Accordingly, the Department should immediately issue a notice allowing Delta to continue these existing services consistent with the request that has been submitted by Delta and Air France.

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

U.S.-Romania Third-Country Codeshare Opportunities

We have tentatively decided that Delta's proposed service via Paris with Air France is subject to our review before implementation. We have also tentatively determined that, upon review of that proposal, American's proposal, and Continental's existing service pattern and frequency, Delta and American should be designated for Romania third-country code-share services, while Continental's Romania code-share designation should be withdrawn.

Currently, the only direct service between the United States and Romania is offered by a Romanian carrier. Four U.S. carriers may offer third-country code-share service. Thus, codeshare opportunities under the agreement represent a significant benefit for travelers in this market. In these circumstances, we tentatively conclude that the public interest requires that we ensure that these opportunities maximize the level of U.S.-Romania services offered.

In this regard, we note that Northwest and United are currently offering third-country code-share services providing 14 and 16 weekly services in the U.S.-Romania market, with KLM and Lufthansa, respectively, which were the basis for the underlying Statements of Authorization for their designations. We also note that Continental, on the other hand, having also apparently terminated its codeshare with Air France, is not serving via Paris with Air France, and is now only serving Romania via Prague with Czech Airlines. Unlike the situations of Northwest and United, it is thus not providing the combined 9 weekly flights to travelers in the U.S.-Romania market with Air France and Czech Airlines that served as the basis for its designation. Rather, Continental only offers service with Czech Airlines at a level of no more than 4 weekly flights. We tentatively find that this change in the circumstances of the basis for its designation, has resulted in a significantly reduced service pattern in comparison with the now filed competing applications and may not provide public benefits warranting continuation of the limited available designation. Therefore, we tentatively find that we should review Continental's award along with the proposals of Delta and American to determine whether it should continue to be authorized to operate its Romania code-share service or whether its authority should be granted to another carrier.

Based on the above, we tentatively conclude that the designation of Delta is and that of Continental should be available for reallocation and that the proposals of Delta with Air France, American with Swissair and Continental with Czech Airlines should be given comparative consideration to determine which two carriers should be authorized to provide third-country code-share service in the U.S.-Romania market for the balance of the transitional service period.

By:  Susan McDermott

American Airlines, Inc.; U.S.-Romania Third-Country Codeshare Opportunities

By:  Susan McDermott

American Airlines, Inc.; U.S.-Romania Third-Country Codeshare Opportunities

Hereby applies for renewal of exemption authority to provide foreign air transportation of persons, property, and mail between the United States and Romania. This authority was initially granted in U.S.-Romania Third-Country Codeshare Opportunities, Order 2000-10-7, October 12, 2000, for a two-year term.  American serves Bucharest, Romania under its codessharing arrangement with Swiss International Air Lines Ltd., approved by Notice of Action Taken, OST-2002-12001, April 23, 2002.

Counsel:  American, Carl Nelson, 202.496.5647, carl.nelson@aa.com 

American Airlines, Inc.

Scheduled foreign air transportation of persons, property and mail between a point or points in the United States and Romania via Zurich, Switzerland. American currently serves Bucharest under a code-share arrangement with Swiss International Airlines.

By: Paul Gretch

OST-00-6903 - Exemption - US-Romania Codeshare with Swiss

July 15, 2004

Application for Renewal of Exemption

Applies for renewal of exemption authority to provide scheduled foreign air transportation of persons, property, and mail between the United States and Romania. American serves Bucharest, Romania under its codesharing arrangement with Swiss International Air Lines Ltd., approved by Notice of Action Taken, OST-2002-12001, April 23, 2002. American also serves Bucharest under its codeshare arrangement with British Airways Plc, for which American holds blanket exemption authority granted by Order 2003-5-33, May 30, 2003.

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

OST-00-6903 - US-Romania via Zurich

Filed July 15, 2004 | Issued August 17, 2004

Notice of Action Taken | Word

Scheduled foreign air transportation of persons, property and mail between a point or points in the United States and Romania via Zurich, Switzerland. American currently serves Bucharest under a code-share arrangement with Swiss International Airlines. American requests that the authority be renewed indefinitely.

By: Paul Gretch

OST-2000-6903 - Exemption - US-Romania

June 9, 2006

Application for Renewal of Exemption

American Airlines, Inc. hereby applies for renewal of exemption authority to provide scheduled foreign air transportation of persons, property, and mail between the United States and Romania. This authority was initially granted in U.S.-Romania Third-Country Codeshare Opportunities Order 2000-10-7, October 12, 2000, for a two-year term, and last renewed by Notice of Action Taken in this docket on August 17, 2004. American currently uses the authority to serve Bucharest by codesharing with Swiss International Air Lines Ltd. via Zurich (AA* on Swiss-operated flights).

The American/Swiss codeshare arrangement, approved by Notice of Action Taken, OST-2002-12001, April 23, 2002, will end on October 28, 2006. However, under the U.S.-Romania open skies agreement, American requests renewal of its exemption for a period of at least two years in order to provide the flexibility to codeshare with any other partner or partners in the future as circumstances may develop.

American also serves Bucharest under its codeshare arrangement with British Airways Plc via London Heathrow (AA* BA-operated flights), for which American holds blanket exemption authority granted by Order 2003-5‑33.

In response to the Department's notice of August 23, 2005 on streamlining regulatory procedures (OST-2005-22228), American has requested corresponding certificate authority for its U.S.-Romania exemption authority. See application for amended certificate of public convenience and necessity, August 26, 2005 (OST-2000-8516). We urge expedited approval of that application to avoid the need for successive renewals in exemption dockets.

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

OST-2000-6903 - Exemption - US-Romania Codeshare

Filed June 9, 2006 | Issued October 26, 2006

Notice of Action Taken

Scheduled foreign air transportation of persons, property and mail between a point or points in the United States and Romania.  American requests renewal of its exemption for a period of at least two years in order to provide the flexibility to code share with any partner or partners in the future as circumstances may develop.

American states that it currently serves Bucharest via Zurich, Switzerland under a code-share arrangement with Swiss International Airlines; however, that arrangement will end on October 28, 2006.  See Statement of Authorization approving the American/Swiss code-share operations dated April 23, 2002, and conditions therein (Notice of Action Taken, Docket 2002-12001).  American states that it also serves Bucharest under its code-share arrangement with British Airways Plc via London Heathrow (see Order 2003-5-33). On October 18, 2006, the carrier’s representative orally confirmed that American would like the flexibility to operate such services using its own aircraft or through code sharing.

Under the exemption authority granted here, the carrier may operate between the United States and Romania using its own aircraft or through code sharing

By: Paul Gretch

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