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OST-00-7089

Trans World Airlines, Inc. and All Nippon Airways Co., Ltd.

TWA, pursuant to 49 U.S.C. § 40109 and Subpart D of the Department's procedural regulations, hereby applies for an exemption from 49 U.S.C. § 40101 to permit TWA to engage in the foreign air transportation of mail between the United States and Japan, pursuant to TWA's code-share arrangement with ANA. Initially the code-share operations will be between Chicago, Guam, Honolulu, Los Angeles, San Francisco and New York, on the one hand, and the following points in Japan, on the other hand: Osaka (Kansai), Nagoya and Narita.

Counsel:  Zuckert Scoutt, James Devall, 202.298.8660 and Glenn Wicks, 703.841.4665

Trans World Airlines, Inc. and All Nippon Airways Co., Ltd.

By:  Paul Gretch

American Airlines, Inc., TWA Airlines LLC, and Trans World Airlines, Inc.

By: Susan McDermott

American Airlines, Inc., TWA Airlines LLC, and Trans World Airlines, Inc.

Order 2001-4-14 The Department reissues the certificates of public convenience and necessity issued to American Airlines, Inc., and/or TWA Airlines LLC by Order 2001-4-7 authorizing them to engage in interstate and foreign scheduled air transportation of persons, property, and mail. The transferred exemption, code-share, and frequency allocation authority listed in Attachment A to this order became effective on April 9, 2001

By: Susan McDermott

American Airlines, Inc., TWA Airlines LLC, and Trans World Airlines, Inc.

By: Susan McDermott

TWA Airlines, LLC

TWA Airlines LLC, a wholly-owned subsidiary of American Airlines, Inc., uses the subject exemption authority to engage in a property-and-mail codesharing arrangement with All Nippon Airways, under which the "TW*" code is displayed on certain ANA flights. ANA separately holds a statement of authorization under 14 CFR Part 212.

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

TWA Airlines, LLC

Northwest has no objection to U.S. carriers supplementing their own international operations by means of cooperative codeshare arrangements with foreign air carriers, including codesharing for the purpose of mail carriage. The carriage of mail via such cooperative codeshare arrangements generates additional revenues that help sustain and support the competitive position of U.S. flag carriers. Northwest, however, objects to American utilizing the otherwise dormant TW designator code solely to secure more than American's pro rata share of the U.S. mail traffic in a number of international markets, including routes between the U.S. and Japan. Northwest urges the Department to deny TW's requested renewal of U.S.-Japan exemption authority and direct American to cease and desist from using multiple U.S. carrier designator codes to manipulate the equitable tender of U.S. mail in all international markets.

Counsel:  Northwest, Megan Rae Rosia, 202.842.3193, megan.rosia@nwa.com  

American refuses to admit the obvious -- that using the "TW" code for international mail carriage enables it to hold out two separate operations on many city pairs and garner a larger share of the international mail tender than it would otherwise receive. Rather, American contends that its use of two codes is akin to Comair's use of its own code for mail carriage and the "DL" code for passenger operations, or Air Wisconsin's use of its own code for mail and the "UA" code for passenger operations. 

American would have the Department wash its hands of this issue and require United and other U.S. carriers that are losing valuable mail revenues as a result of American's scheme to look to the USPS or elsewhere for help. But the Department, not the USPS, is responsible for granting American/TW the economic authority that is essential to continue this sham practice. The Department, not the USPS, also has the American uses the AA* code to obtain mail on flights operated by JAL.

Here, American wishes to pretend that TW is a separate and independent U.S. air carrier, entitled to its share of U.S. international mail revenues, when, in reality, the "TW" code lives on solely to divert international mail revenues from other U.S. carriers into American's coffers. This fraudulent practice undermines the profitability of other U.S. carriers and impairs their ability to fairly compete. The Department should not countenance American's scheme.

Counsel:  Wilmer Cutler, Jeffery Manley, 202.663.8060, jmanley@wilmer.com

TWA Airlines, LLC

Clearly, the motive for Northwest's and United's filings are to enlist the Department in forcing the termination of the TWA/ANA mail codeshare, thereby strengthening the dominant position of Northwest and United in the U.S.-Japan market. The Department should decline to participate in such an anticompetitive scheme.

TWA Airlines LLC is a separately certificated carri­er, and will remain so until its fleet has been fully inte­grated into American's, an on-going process which will extend over a period of time. The fact that the "TW" code has been phased out on the passenger side of the business does not prevent TWA from continuing to display its code on foreign carriers for the carriage of property and mail. The authori­zation to do so was transferred from Trans World Airlines, TWA Airlines LLC by Order 2001-4-7, an action to which neither Northwest nor United objected.

Use of the "TW" code on ANA flights for the carriage of mail does not give American an undue advantage in the competitive marketplace. American does not display the "AA" code on any ANA flights, nor does TWA Airlines LLC display the "TW" code on any Japan Airlines flights. Northwest and United are seeking the termination of the TWA/ANA mail codeshare solely to bolster their dominant position in the U.S.-Japan market. Under well-settled USPS mail tender procedures, foreign carriers authorized to display U.S. carrier codes may carry U.S. international mail. TWA Airlines LLC and ANA hold all necessary authority to engage in property and mail code­sharing, which will continue so long as TWA remains a separate­ly certificated carrier. If Northwest and United are unhappy with USPS mail tender procedures -- which they themselves take full advantage of with their own codesharing arrangements with numerous foreign-flag carriers -- they should address their complaint to the USPS, and not to the Department.

United's characterization of TWA LLC as a "phantom, non­existent airline" is flatly wrong. Moreover, Comair's use of its own "OH" code for mail, while using the "DL" code for passenger service, is precisely analogous to the situation presented here, contrary to United's opinion other­wise.

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

Termination of Dockets

Order 2008-2-36

Docket 43430 - Trans World Airlines - Certificate Authority
Docket 49564 - Trans World Airlines - New York-London Heathrow
Docket 49654 - American Airlines - Certificate Amendmet
Docket 49686 - Continental Airlines - Certificate Amendment
Docket 50218 - Delta Air Lines - Certificate Amendment
Docket DOT-OST-1996-1442 - Trans World Airlines - New York-London
Docket DOT-OST-1996-1668 - United Air Lines and Saudi Arabian Airlines - Renewal
Docket DOT-OST-1997-2089 - Laker Airways - UK-Florida Renewal
Docket DOT-OST-1997-2637 - Air Exel - Codeshare with Northwest Airlines
Docket DOT-OST-1998-4333 - Air Exel - Codeshare with Northwest Airlines
Docket DOT-OST-1998-4830 - Continental Airlines - Detroit-Cayman Islands
Docket DOT-OST-1998-4911 - American Airlines - US-Venezuela Codeshare with Aeropostal
Docket DOT-OST-1999-5078 - Air Exel - Codeshare with Northwest Airlines
Docket DOT-OST-1999-5527 - American Airlines - US-London Gatwick
Docket DOT-OST-2000-7089 - Trans World Airlines - US-Japan Renewal
Docket DOT-OST-2000-7606 - American Airlines - Codeshare with TACA Group Carriers
Docket DOT-OST-2000-7660 - Aeromexico and Delta Air Lines - Chicago-Morelia
Docket DOT-OST-2001-10617 - Aeromexico - Acapulco-New York
Docket DOT-OST-2002-11945 - Continental Airlines and Air Exel -US-Netherlands Codeshare
Docket DOT-OST-2002-13400 - Aeromexico - Mazatlan-San Diego Renewal
Docket DOT-OST-2003-15013 - Planet Airways - US-Bahamas
Docket DOT-OST-2003-15729 - America West Airlines - US-Costa Rica Renewal
Docket DOT-OST-2003-16741 - America West Airlines and Mesa Airlines - Los Angeles-Mazatlan
Docket DOT-OST-2003-16745 - America West Airlines and Mesa Airlines - Los Angeles-Mazatlan
Docket DOT-OST-2004-18002 - America West Airlines - Phoenix-Mexico Certificate
Docket DOT-OST-2004-18615 - America West Airlines - US-Jordan Certificate
Docket DOT-OST-2004-19453 - Aeromexico - Puerto Vallarta-San Diego
Docket DOT-OST-2005-21441 - Atlas Air and Polar Air Cargo - US-Ecuador All-Cargo

Issued February 28, 2008 | Served March 4, 2008

Order Terminating Proceedings

The Department has identified the following proceedings as moot, inactive, or pending Departmental action on the applicant’s request for withdrawal or dismissal. It is in the public interest for administrative management reasons to terminate the proceedings and close the corresponding dockets, and we will do so under authority assigned by the Department in its Regulations, 14 CFR §385.3 and §385.13.

By: Paul Gretch

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