OST-00-7154 - Turkish Airlines - Turkey-US Codesharing with American

OST-00-7154	March 28, 2000	Application for Exemption	U.S.- Turkey Code-Sharing
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Counsel: Zuckert Scoutt, Charles Simpson, 202.973.7926, cjsimpson@zsrlaw.com

Filed March 28, 2000
Issued July 20, 2000

U.S.- Turkey Code-Sharing

By: Paul Gretch

OST-00-7154	November 8, 2000	Application to Amend an Exemption	U.S.- Turkey Code-Sharing
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THY and American have recently agreed to codeshare to San Diego instead of to Detroit, beginning January 1, 2001. Accordingly, THY requires the requested amendment to its exemption authority in order to serve San Diego.

Counsel: Zuckert Scoutt, Charles Simpson, 202.973.7926, cjsimpson@zsrlaw.com

Filed November 8, 2000
Issued December 7, 2000

U.S.- Turkey Code-Sharing

Amend exemption from 49 U.S.C. 41301, granted by Notice of Action Taken dated July 20, 2000, to conduct scheduled foreign air transportation of persons, property and mail between Turkey and Atlanta/Boston/ Dallas/Ft.Worth/Detroit/Houston/Los Angeles/Orlando/San Francisco/Seattle/Washington (DCA/IAD) on a code-share basis only, by substituting San Diego for Detroit, effective January 1, 2001, for a period of two years. Turkish Airlines provides service to these U.S. points on a code-share basis on flights operated by American Airlines or American Eagle Airlines, Inc. (American), connecting with Turkish Airlines' currently authorized flights between Istanbul-New York/Chicago/Miami.

By: Paul Gretch

American Airlines, Inc. and Turkish Airlines and Turkish Airlines (Turk Hava Yollari, A.O.)

OST-00-7154	February 23, 2001	Application to Amend an Exemption	U.S.- Turkey Code-Sharing with American Airlines
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Beginning April 1, 2001, under Section C.2. of Annex IV of the Agreement, carriers of Turkey may operate to four gateway points in the United States and serve a total of fifteen additional points in the United States on a codeshare basis -- five more points than under the initial year of the transition period. Consistent with this transitional provision of the Agreement. THY hereby applies for exemption authority to provide service to five additional U.S. points -- Cleveland, Denver, Detroit, Minneapolis and Philadelphia -- on a codeshare basis on flights operated by American connecting with Turkish Airlines' flights between Istanbul and New York, Chicago and Miami.

Counsel: Zuckert Scoutt, Charles Simpson, 202.298.8660, cjsimpson@zsrlaw.com

OST-00-7151 OST-00-7154	March 6, 2001	Consolidated Answer of United Air Lines	U.S.- Turkey Codesharing
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United objects to any favorable action being taken on the American/THY applications for additional code-share authority until the Department has issued a final order in Docket OST-01-8781. It is because THY and its government have insisted upon transitional limits on U.S. carrier code-share services that the Department must engage in carrier selection in Docket OST-01-8781. These transitional limits are designed to protect THY and its chosen U.S. partner from full marketplace competition by other U.S. carrier code-share alliances during a three-year transitional period. It would be fundamentally unfair to U.S - carriers if the Department were to allow THY and its partner, American, to expand their U.S.-Turkey code-share services before other U.S. carriers were authorized to expand their reciprocally agreed services in competition with American and THY. Indeed, three of the additional U.S. points where THY and American would add one-stop code-share connections are among the cities where United is seeking authority in Docket OST-01 -8781 to expand its one-stop code share to Istanbul with Lufthansa via Frankfurt: Detroit, Denver, and Philadelphia.

American and THY urge expeditious approval so that they can begin marketing these additional code-share services as far in advance of the bilaterally-agreed effective date of April 1, 2001, as possible. United needs the same lead time to market its own expanded services which include the first U.S. carrier service to a new point in Turkey -- Ankara -- as well as additional service to Istanbul.

Counsel: Wilmer Cutler, Jeffery Manley, 202.663.6670, jmanley@wilmer.com

American Airlines, Inc. and Turkish Airlines and Turkish Airlines (Turk Hava Yollari, A.O.)

OST-00-7151 OST-00-7154	March 9, 2001	Motion for Leave to File and Joint Reply	U.S.- Turkey Codesharing
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United took the same position against a recent application by Delta Air Lines, Inc. and El Al for bilateral codesharing between the U.S. and Israel (OST-01-8772), arguing that approval for Delta/El Al should be deferred until the Department has made final awards in U.S.-Israel Third-Country Codeshare Opportunities (2001) (OST-01-8726). The Department declined to accept United's contention.

In granting codeshare authority to Delta and El Al by Notice of Action Taken, March 2, 2001 (OST-01-8772), while the U.S.-Israel third-country codeshare proceeding remains pending, the Department said:

"With respect to the concerns raised by United and Northwest, we are actively processing the U.S.-Israel third-country codeshare proceeding (Docket OST-2001-8726) to authorize selected U.S. carriers (and their codeshare partners) to conduct code-share services in the U.S.-Israel market. In the meantime, however, we find that it would not be consistent with the public interest to with-hold the bilaterally-agreed authority soucrht here, and for which the record is otherwise complete, pending disposition of that proceeding".

The Department should reach the same result with respect to bilateral codesharing between American and Turkish Airlines. The requested authorizations are clearly allowed by the U.S.-Turkey agreement, and the implementation of rights granted to carriers of both sides should not be delayed pending the completion of other proceedings. For the foregoing reasons, the captioned applications by American and Turkish Airlines should be granted promptly, and United's opposition should be rejected.

Counsel: Zuckert Scoutt, Charles Simpson, 202.973.7926, cjsimpson@zsrlaw.com and American, Carl Nelson, 202.496.5647, carl_nelson@aa.com

Filed February 23, 2001
Issued March 14, 2001

U.S.- Turkey Code-Sharing with American Airlines

By: Paul Gretch

American Airlines, Inc. and Turkish Airlines / Turkish Airlines (Turk Hava Yollari, A.O.)

OST-00-7154	March 12, 2002	Application to Amend an Exemption	U.S.- Turkey Codesharing
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Hereby applies pursuant to 49 U.S.C. § 40109 and Subpart C of the Department's Rules of Practice for an amendment of the exemption authority previously issued to it in this docket in order to engage in the scheduled foreign air transportation of persons, property and mail on a codeshare-only basis to five additional U.S. points: Baltimore, Las Vegas, Pittsburgh, Raleigh/Durham and St. Louis. The proposed codeshare service will be provided on flights operated by American Airlines connecting with Turkish Airlines' flights between Istanbul, on the one hand, and New York and Chicago, on the other hand, commencing on or about April 7, 2002.

Counsel: Zuckert Scoutt, Charles Simpson, 202.298.8660, cjsimpson@zsrlaw.com

OST-00-7151 OST-00-7154	March 26, 2002	Consolidated Answer of United Air Lines	U.S.- Turkey - Reciprocal Codesharing; U.S.- Turkey Codesharing
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The additional code-share services between Frankfurt and Istanbul which United proposes to implement on April 1 are also consistent with the U.S./Turkey agreement. On that date, additional U.S. carrier authority that is the reciprocal of the authority sought by American and THY becomes available under that agreement. This new authority allows the expansion of third-country code-share services offered by U.S. carriers between the U.S. and Turkey. There will be two additional designations and 14 additional weekly U.S. carrier/third-country carrier code-share frequencies available at that time. Because three U.S. carriers (United, Delta, and Continental) have filed applications for a total of 21 weekly frequencies, the Department has been required to engage in an adjudication among the eligible carriers to allocate the available frequencies. See U.S.-Turkey Combination Service Third-Country Codeshare Opportunities, Docket OST-02-11273.

The Department started its U.S.-Turkey carrier selection proceeding this year in early January, nearly three months before the additional U.S. carrier third-country code-share opportunities become available in April. The final responsive pleadings were filed on February 14, 2002, nearly six weeks ago. United urges the Department to issue its decision in the carrier selection case without further delay so that the selected carriers do not again lose the benefit of operating in the peak summer season which begins at the end of May. In this regard, the Department should bear in mind that once the 14 new frequencies have been allocated, the U.S. carriers selected will still have to obtain approvals from the Turkish government, a process which in United's experience can take more than a month. In the meantime, and for the reasons set forth above, United objects to any favorable action being taken on the American and THY applications dated March 12, 2002, in the captioned proceedings until a final order is issued in Docket OST-02-11273.

Counsel: United and Wilmer Cutler, Jeffrey Manley, 202-663-6670, jmanley@wilmer.com

American Airlines, Inc. and Turkish Airlines and Turkish Airlines (Turk Hava Yollari, A.O.)

OST-00-7151 OST-00-7154	March 29, 2002	Joint Reply of American Airlines and Turkish Airlines	U.S.- Turkey Reciprocal Codesharing; U.S.- Turkey Codesharing
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This is, almost verbatim, the same baseless argument that United made in these dockets a year ago, when American and THY applied for new codeshare-related authority in order to exercise rights available under the U.S.-Turkey open skies agreement. See Consolidated Answer of United Air Lines, March 6, 2001. At that time United argued that the Department should not take action on those applications until after taking final action on the then-pending carrier selection proceeding in Docket OST-2001-8772.

The Department rejected United's specious position a year ago and should do so again. Last year, the Department correctly noted that the authority requested by American and THY was encompassed in the U.S.-Turkey open skies agreement and correctly concluded that "it would not be consistent with the public interest to withhold the bilaterally-agreed authority sought here, and for which the record is otherwise complete, pending disposition of that [carrier selection] proceeding." Notice of Action Taken, Docket OST-2000-7154 (March 14, 2001) and Department Action on Application in Docket OST-2000-7151 (March 14, 2001). The circumstances have not changed, and United has again failed to articulate a reason why the Department should withhold favorable action on the pending applications of American and THY.

Counsel: Zuckert Scoutt, Charles Simpson, 202.973.7926, cjsimpson@zsrlaw.com and American, Carl Nelson, 202.496.5647, carl_nelson@aa.com

Filed March 12, 2002
Issued April 12, 2002