OST-2000-7317 - BWIA - Trinidad and Tobago- Chicago/Denver

OST-2000-7317

BWIA International Airways Limited

OST-00-7317	April 28, 2000	Application for Exemption Scanned Copy	Trinidad and Tobago- Chicago/Denver
		Service List

BWIA desires to begin serving Chicago and Denver as part of a more comprehensive code-share arrangement with United. Under that arrangement, for which statements of authorization are being sought separately in a joint application, United will place BWIA’s designator code on United flights (1) between Miami and Chicago and (2) between Washington, D.C., on the one hand, and Boston, Chicago, Denver and New York, on the other. BWIA will place United’s code on BWIA’s flights between Miami, New York and Washington, D.C., on the one hand, and Antigua, Barbados, Port of Spain and Tobago, on the other. To implement this arrangement, BWIA needs and hereby requests exemption authority to serve Chicago a nd Denver via intermediate points in Antigua, Barbados, Grenada, St. Kitts and St. Lucia . It also needs and requests authority to coterminalize Chicago and Denver with its existing U.S. gateways. BWIA recently received coterminalization rights as part of its authority to serve Atlanta, Boston and Washington, D.C.

At the current time, air links from Chicago and Denver to the Eastern Caribbean are quite limited. Indeed, in many cases there is no single-carrier service. Assuming this application and the related code-share requests are granted, BWIA and United each will be able to provide on-line service. This will benefit Chicago/Denver-Caribbean travelers and shippers, increase U.S.-Caribbean trade and enhance competition in the U.S.-Caribbean market.

Counsel: Verner Liipfert, Russell Pommer, 202.371.6000

BWIA West Indies Airways Limited

OST-00-7317

Filed April 28, 2000
Issued July 6, 2000

Notice of Action Taken

Trinidad and Tabago-Chicago/Denver

Relief requested: Exemption from 49 U.S.C. 41301 to conduct scheduled foreign air transportation of persons, property and mail between Trinidad and Tobago and Chicago, IL/Denver, CO, via intermediate points in Antigua, Barbados, Grenada, St. Kitts and St. Lucia; and to coterminalize Chicago/Denver with its currently authorized U.S. gateways.

BWIA states that it plans to operate this service as part of a more comprehensive code-share arrangement with United Air Lines, Inc. In this regard, United and BWIA jointly applied in Docket OST-2000-7318 for statements of authorization. We have acted on that joint application concurrently (see Department action of July 6, 2000, n Docket OST-2000-7318).

By: Paul Gretch

BWIA West Indies Airways Limited

OST-00-7317	June 28, 2001	Application for Renewal of Exemption	Trinidad and Tobago-Chicago/Denver
		Service List

By Notice of Action dated July 6, 2000, the Department authorized BWIA to (1) engage in scheduled foreign air transportation of persons, property and mail between Trinidad and Tobago, on the one hand, and Chicago and Denver, on the other, via intermediate points in Antigua, Barbados, Grenada, St. Kitts and St. Lucia, and (2) co-terminalize Chicago and Denver with its existing U.S. gateway. The exemption is set to expire on July 6, 2001. At the same time, the Department also authorized United Air Lines, Inc. ("United"), to carry BWIA's two-letter designator code between Miami and Chicago, and between Washington (Dulles Airport), on the one hand, and Chicago and Denver, on the other. Department Action on Application in Docket OST-00-7318, dated July 6, 2000.

BWIA currently is offering single-carrier service between Trinidad and Tobago and Chicago/Denver over its Miami and/or Washington (Dulles) gateways by placing its designator code on flights operated by United between those gateways and Chicago/Denver. There currently is no other single-carrier service in the Trinidad and Tobago-Chicago market so BWIA's service has resulted in significant benefits, such as single carrier responsibility, coordinated scheduling and improved baggage handling, for U.S.-Caribbean travelers. In the Trinidad and Tobago Denver market, BWIA's single carrier service competes with American's on-line service and, and, thus, offers travelers competitive options. The service also has increased U.S.-Caribbean trade and enhanced competition in the U.S.-Caribbean market. BWIA desires to continue this service in the future and, thus, is seeking renewal of the exemption authority for an additional two years.

Since Chicago and Denver are not on the Trinidadian airline route description of the U.S. -Trinidad and Tobago bilateral and since Trinidad already has selected the two additional U.S. points permitted under the agreement, BWIA`s request for renewal of the Chicago/Denver route authority is extra-bilateral and must be supported by comity and reciprocity. The existence of reciprocity is evidenced by the Department original grant of this authority as well as its grant to BWIA of authority to serve Atlanta. Notice of Action Taken, in Docket OST-00-6995, dated March 17, 2000. In addition, the existence of reciprocity is supported by the fact that under the bilateral, U.S. airlines have open route rights from the United States to Trinidad and Tobago, to beyond points and via intermediate points. Given the existence of comity and reciprocity and the extent of the above-described service-related benefits, the necessary public interest findings can and should be made here.

Counsel: Verner Liipfert, William Evans, 202.371.6030, wcevans@verner.com