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OST-96-1700
American Airlines, Inc., et al, and The TACA Group Reciprocal Code-Share Services Proceeding
Order 97-5-4 | OST-96-1700 | Issued May 7, 1997 | Served May 8, 1997
Scheduling Notice and Determination on Motion for Confidential Treatment under 14 CFR 302.39
We grant the Joint Applicants' request for confidential treatment for certain documents and information, limiting access to these data in certain respects. We will require that the Joint Applicants file specific data in the docket, as more fully described below. Finally, we will establish a procedural schedule for the submission of answers and replies.
By: Charles Hunnicutt
American Airlines, Inc. et al. and the TACA Group Reciprocal Code-Sharing Services Proceeding
OST-96-1700 | May 12, 1997
Promptly following the submission of pleadings on the merits, the Department should issue a show-cause order tentatively approving the proposed American/TACA Group arrangement, so that the public may begin enjoying the benefits of improved service options between the United States and Central America at the earliest possible date. Approval will be fully consistent with the U.S.-Central America Open Skies agreements signed last week by Secretary Slater at the Central American summit in San Jose, Costa Rica, where President Clinton said that the new accords will "bring the Americas closer together."
Exhibit A - Non-Competition and License Agreement | Exhibit B to Marketing Agreement - CRS's | Exhibit C - Form of Promissory Note | Exhibit D - communications Standards
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
American Airlines, Inc. and the TACA Group Reciprocal Codesharing Services Proceeding
OST-96-1700 | May 20, 1997
Confidentiality Affidavit on Behalf of LACSA
Counsel: Squire Sanders, Robert Papkin
American Airlines, Inc. et al. and the TACA Group Reciprocal Codesharing Services Proceeding
OST-96-1700 | May 22, 1997
Confidentiality Affidavit for TACA, COPA, TACA de Honduras, AVIATECA and NICA
Counsel: Mullenholz Brimsek, John Brimsek, 202-296-8000
Confidentiality Affidavit on Behalf of TACA International
By: Simat Hellieson, Donald Garvett
American Airlines, Inc. et al. And the TACA Group Reciprocal Code-Sharing Services Proceeding
OST-96-1700 | May 28, 1997
Confidentiality Affidavit on Behalf of American Airlines
Counsel: American, Gary Doernhoefer, 817-967-1997
American Airlines, Inc. et al. And the TACA Group Reciprocal Code-Sharing Services Proceeding
OST-96-1700 | May 28, 1997
Confidentiality Affidavit on Behalf of American Airlines
Counsel: American, Gary Doernhoefer, 817-967-1997
American Airlines, Inc. et al. And the TACA Group Reciprocal Codesharing Services Proceeding
OST-96-1700 | May 30, 1997
Re: Confidentiality Affidavits of Simat Helliesen
Counsel: Squire Sanders, Charles Donely, 202-626-6600
American Airlines, Inc. et. Al. And the TACA Group Reciprocal Code-Share Services Proceeding
OST-96-1700 | June 2, 1997
Motion of Continental Airlines for Confidential Treatment
Consolidated Answer of Continental Airlines
The key issue before the Department is whether the American/TACA codeshare arrangement enhances or inhibits competition in affected markets. In the airline industry, like other network industries, this means that code-sharing agreements and other cooperative arrangements must be evaluated for their effect on competition between competing networks. As a Deputy Assistant Secretary for Aviation and International Affairs has said: "For us in government, the question is -- how do we get more competition, and how can we see that it produces the greatest benefit for the traveling public, as well as for the airlines' shareholders." The answer to that question is: "The airline industry is a network industry, and . . . network competition produces better service and lower fares for the great majority of passengers."
Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2500
Answer of the Dallas/Fort Worth Parties
Largely overlooked is that despite Miami's dominant position each of the TACA Group carriers has applied for authority to serve Dallas/Fort Worth and certain other U.S. cities on a nonstop basis. Approval of the American/TACA Group Applications would also spur inter-gateway competition and allow DFW to compete with Houston as alternative U.S. gateways to Central America. While overshadowed by Miami, Houston has developed as a major U.S. gateway to Central America. Between Continental and the Central American carriers, Houston has nonstop service to eleven Central American cities and service from two different foreign carriers. As noted, DFW has nonstop service to one Central American city and no foreign-flag service. Thus, a significant benefit of the American/TACA Group Agreement is that it will spur competition between the two Texas gateways -- DFW and Houston -- as American and the TACA Group carriers add services at DFW. DFW will provide another competitive one-stop routing to Central America besides Houston for travelers from U.S. cities west of the Mississippi.
Counsel: Bagileo Silverberg, Michael Goldman, 202-944-3305
Motion of Delta Air Lines for Confidential Treatment
The proposed Alliance has none of the beneficial characteristics of code-share arrangements recognized by the Department in its international Air Transportation Policy Statement. American will not gain the ability to enter new markets or to expand its system, because American itself already serves all the TACA Group nonstop destinations from Miami. American's principal motive in pursuing this Alliance is to eliminate competition between American and its main competitors on nonstop routes between Central America and the United States.
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
If American is successful in foreclosing entry by United (or another U.S. competitor) into Central America through a codesharing arrangement with one or more of the TACA carriers, American will have insulated its U.S.-Central America route network from competition and increased the barriers to entry into these markets.9 American is the only carrier with an established online route network that links its hubs in the United States with virtually all of the countries in Central and South America. Code sharing, however, can provide United and other U.S. carriers a cost-efficient means to extend their route networks into Central and South American markets, and thereby to initiate much broader network-to-network competition with American than would otherwise be possible. It is to forestall that competition, and to retain its dominant position in the market, that American is seeking to establish an exclusive codesharing alliance with the TACA Combine.
Exhibit 1 - US-Central America Weekly Frequency Share | Exhibit 2 - Miami is by Far the Predominant US Gateway for Central America Traffic | Exhibit 3 - American and The TACA Group have an Overwhelming Majority of Miami-Central America Nonstop Seats | Exhibit 4 - The AA/TACA Group Code-Share Proposal Results in Highly Concentrated US-Central America Markets
Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130
American Airlines, Inc. et al and The TACA Group Reciprocal Code-Share Services Proceeding
OST-96-1700 | June 4, 1997
MIA fully supports cooperative arrangements between carriers that will promote more efficient operations and provide more convenient service to the public. The code-share operations proposed by American and the TACA Group will offer coordinated connections, improved baggage transfers, and related consumer benefits that will substantially enhance the provision of service between cities in the United States (and beyond) and Central America (and beyond) via the Miami gateway. MIA understands that the proposed code-share agreement is intended to result in the progressive integration of the schedules of each of the carriers; cooperation in ground-handling services; consolidation of facilities, and the inauguration of a premium-class product by the TACA Group carriers.
By: Dade County, Peter Reaveley, Manger, Route Development, 305-876-7028
American Airlines, Inc. and The TACA Group Reciprocal Code Share Services Proceeding
OST-96-1700 | June 5, 1997
In recent months, American/SABRE have switched their dirty tricks to the United States. More recently, AMADEUS/System One have learned that American/SABRE appear to be attempting to induce travel agents, particularly in the Miami area, not to use AMADEUS/System One to book flights to/from Central America by advising those agents that doing so could result in reservations being cancelled. As a result of these unfounded scare tactics, AMADEUS/System One have lost bookings from agents fearful of stranding passengers.
Any action the Department takes on the code-share agreement should be conditioned on the cessation of unfair and deceptive actions by American/SABRE to exclude competition in the Central American CRS market. American should not be rewarded with valuable economic rights unless it and SABRE are prepared to play by the rules.
Motion for Confidential Treatment
Counsel: Steptoe Johnson, David Coburn, 202-429-8063
American Airlines, Inc. et al., and The TACA Group Reciprocal Code Share Services Proceeding
OST-96-1700 | June 6, 1997
Confidentiality Affidavit for Michael Goldman, Counsel to DFW Airport
Counsel: Bagileo Silverberg, Michael Goldman
American Airlines, Inc. et al. And The TACA Group Reciprocal Code-Sharing Services Proceeding
OST-96-1700 | June 10, 1997
In their answers, the three opposing carriers all but ignore the fact that on May 8, 1997, the United States reached open skies agreements with the six Central American countries that constitute the homelands of the TACA Group -- Costa Rica, E1 Salvador, Guatemala, Honduras, Nicaragua, and Panama. Under these agreements, any U.S. airline may provide passenger and cargo service between any point in the U.S. and any point in Central America, with no restrictions on fares, frequencies, or aircraft type.
Exhibit 1 – Since 1994, Continental Has Increased Service to Central America by 53% | Exhibit 2 – Continental Service from Houston to Central America | Exhibit 3 – American Service from Dallas to Central America | Exhibit 4 – Continental’s Extensive Central American Network at Houston will Provide Discipline to American and TACA at Dallas and Miami | Exhibit 5 – Continental’s Extensive Central American Network at Houston will Provide Discipline to American and TACA at Miami | Exhibit 6 – American and TACA Service at Dallas will Compete with United’s Central American Service at Los Angeles | Exhibit 7 – American and TACA at Los Angeles will Compete with United’s Central American Service at Los Angeles | Exhibit 8 – Central America’s Growth will Draw New Competitive Entry | Exhibit 9 – US-European Codeshare Alliances Dominate US-Home Country Markets at the Dominant NY Gateway | Exhibit 10 0 Central American Markets are Significantly Smaller than European Countries where DOT has already Approved Codesharing | Exhibit 11 – Central America is a Significantly Smaller Market than Germany
Motion of American Airlines for Confidential Treatment Under Rule 39
Counsel: American, Carl Nelson, 202-857-5647
Reply of the City of Houston and the Greater Houston Partnership
The truth is that for some time American has had authority to provide direct service between DFW and Central America. It is not providing that service today only because it chooses' to use traffic garnered from DFW and points beyond to support service over its Miami hub. The TACA agreement, by limiting American's foreign flag competition between Miami and Central America, would allow American to shift some of its U.S. originating Central America traffic from the Miami gateway to a DFW gateway. In addition, of course, the Agreement would assure the added support at DFW of TACA coded traffic, some of which would otherwise use Houston as a gateway. In combination, these factors add up to a substantial shift of traffic to DFW that would otherwise be available for Houston gateway service. Thus, contrary to DFW's assertions, the American-TACA agreement is not aimed at increasing intergateway competition, but destroying it. If American is successful, intergateway competition to Central America, at least from U.S. points east of the Rockies, will very largely consist of "competition" between routings over American's hub at Miami and American's hub at DFW.
Counsel: Leftwich Douglas, Frederick Douglas, 202-434-9100
Reply of The SABRE Group to Amadues/System One and Continental Airlines
Amadeus has presented no evidence that SABRE directed or initiated "HX" or "UC" messages to Amadeus subscribers. In the first place, any such messages must originate with the carrier involved in the reservation; CRS do not and cannot generate them. Second, it is impossible for American or the TACA Group to investigate any such messages because Amadeus failed to document a single example of the alleged behavior -- there are no dates, no flight numbers, no PNRs, and no travel agent subscriber names provided. And with regard to Amadeus' statement that only one leg of a trip was canceled, why would a carrier intentionally inconvenience its own passengers in such a manner? Likewise, though claiming that the reservations were recooked in SABRE or with the carrier directly, Amadeus failed to provide a single PNR to allow SABRE to investigate such outlandish charges. Amadeus is equally vague in its claims that SABRE has received discount fares not provided to Amadeus. What fares? What carrier? When? From what source is Amadeus obtaining fares from these carriers? It appears that Amadeus is simply trying to conjure up an image -- with no proof whatever -- that SABRE is engaging in the same tactics that the Amadeus carriers have perfected.
Attachment – Press Release from Dept of Justice April 28, 1997
Counsel: SABRE, Andrew Steinberg, 817-967-6877
Consolidated Reply of TACA International, AVIATECA, LACSA, COPA, NICA and Taca de Honduras
In what is little more than a pejorative rehash of the same arguments made last year, the Opponent Carriers challenge the proposed TACA Group/American code-share arrangement as "contrary to the public interest" and "anticompetitive." They again claim--incorrectly--that it would offer no significant benefits to the public and would reduce competition in U.S./Central American markets by blocking their own expansion into those countries and by concentrating market power in the hands of the TACA Group and American. In fact, the Opponent Carriers simply disregard the compelling reasons why the Department should approve the pending applications, and they completely distort the competitive impact of the proposed arrangement.
Exhibit 1 – TACA Group Codesharing with American Over Miami will Increase the Quantity and Quality of Service, Serving as a Competitive and Market Development Spur | Exhibit 2 – A TACA Code-Share will Provide American with Improved Options Relative to Current Schedules | Exhibit 3 – An American/TACA Group Code Share would Increase American’s Time-of-Day Service Options at Miami
Motion of The TACA Group for Confidential Treatment
Counsel: Squire Sanders, Robert Papkin, 202-626-6601 for LACSA / Mullenholz Brimsek, John Brimsek, 202-296-8000 for TACA, AVIATECA, COPA, NICA, and Taca de Honduras
American Airlines, Inc. and The TACA Group Reciprocal Code Share Services Proceeding
OST-96-1700 | June 20, 1997
Consolidated Surreply of Continental Airlines and Motion for Leave to File
The Department should see through the Joint Applicants' claim that their exclusivity clause does not mean what it says. The express language of the exception clearly provides "that 'the TACA Group's existing arrangement with Continental Airlines' is not subject to the exclusivity clause." (Emphasis added) American's after-the-fact claim that "the parties intended not only that Continental's existing arrangement would not be affected, but that Continental, if it so desired, could seek to expand and broaden its relationship with the TACA Group" (American Reply at 25) is inconsistent with the language the parties used. The TACA Group's gratuitous claim that Continental "is free to implement and expand its current, authorized code-share relationship with the TACA Group carriers if it wishes to do sot is equally disingenuous. However, the existence of a DOT-approved Continental/TACA code-share arrangement shows that there is no basis for TACA's assertion that American is " TACA's only realistic option for a U.S. partner."
Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2500
American Airlines, Inc. et al and the TACA Group Reciprocal Code Sharing Services Proceeding
OST-96-1700 | June 26, 1997
Consolidated Surreply of United Air Lines and Motion for Leave to File (Public Version)
United is a strong supporter of code-sharing and of global alliances. Alliances can secure important consumer benefits by enabling carriers to extend their route networks to regions of the world that they cannot serve or cannot serve economically with their own aircraft. However, each alliance must be subject to independent regulatory review, and an alliance should be approved only where the consumer benefits available can be shown to outweigh any reduction in competition resulting from the alliance. Each proposed alliance must be judged on its own individual merits based on the particular facts and circumstances presented. The fact that in other cases the Department has authorized other carriers to code-share in different market settings under different market conditions does not require the Department to approve the American/TACA alliance.
United's opposition to the proposed American/TACA alliance is neither hypocritical nor dependent upon the Department employing a double standard. Antitrust analysis is always fact intensive. Like any other alliance agreement, the American/TACA alliance should be approved only if the Department can find on the basis of the record before it that the alliance, on balance, will not be anti-competitive. United has undergone this scrutiny for its alliances, and American should not be heard to complain when its proposed alliances receive comparable scrutiny. Here, the Department cannot reasonably find that the American/TACA alliance, on balance, does more competitive good than harm.
Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130
American Airlines, Inc. et al. And the TACA Group Reciprocal Code-Sharing Services Proceeding
OST-96-1700 | June 27, 1997
American and the TACA Group dispute each and every allegation made in the surreplies tendered by Continental and United, and we urge the Department to deny the carriers' motions for leave to file such unauthorized documents. This matter has been pending before the Department for nearly one year, and has been the subject of exhaustive evidentiary submissions and pleadings. The Department should promptly conclude this proceeding by granting the American/TACA Group applications, so that the public may begin enjoying all of the competitive benefits that the proposed code-sharing services will provide.
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com / Mullenholz Brimsek, John Brimsek, 202-296-8000 for Aviateca, COPA, NICA, TACA and TACA Honduras / Squire Sanders, Robert Papkin, 202-626-6601 for LACSA
OST-97-2058 | OST-97-2054, 2055, 2056, 2057 | OST-96-1700 | July 18, 1997
Motion of Continental Airlines to Require Supplemental Information Submission
American has announced that it is investing in and entering into an alliance with Aerolineas Argentinas and Austral, and that it and its proposed partner, British Airways, have entered into alliances with Iberia. Additionally, SEPI has announced that there may be further investment in Iberia by both American and British Airways. These alarming announcements indicate that there will be significant expansion in the global mega-alliance planned by American and British Airways. Combining American, one of the largest U.S. airlines, with British Airways, Aerolineas Argentinas, Iberia, Austral, and the TACA Group will perpetuate American's stranglehold on the U.S.-Latin America market, ally all the carriers providing any significant services between Miami and Central America, permit the alliance to dominate the U.S.-Spain and U.S.-Argentina markets, and preempt future alliances between other carriers that might seek to compete in these markets. Worse still, if American and British Airways were themselves allowed to combine and given immunity from the antitrust laws, incorporating these other carriers into their quest for global domination would allow them to crush competitors throughout the U.S., Europe and Latin America. The Department must not endorse the American/British Airways effort to squelch competition on a piecemeal basis without considering the interrelationships among these alliances, particularly when they intersect at American's Miami mega-hub.
Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2500
OST-97-2058 | OST-96-1700 | July 24, 1997
Answer of Trans World Airlines
Continental has adequately outlined the monopoly power that will be created by both American and British Airways adding Iberia to their alliances. American and Iberia are the sole carriers between Miami and Madrid. American and Aerolineas Argentinas are the two major carriers between the U.S. and Argentina. American, which already has an alliance with the national carriers of Central America, would also combine with the only other carrier offering a full pattern of service between Miami and that area. Addition of an Iberia Alliance to AA/BA will give American monopoly control of its two major Miami - Europe routes -London and Madrid. Clearly, this important new development requires that the Department collect additional information before proceeding with either the AA/BA or AA/TACA alliances.
Counsel: TWA and Richard Fahy, 202-457-4764
Continental argues that the mere announcement of distinct transactions which may or may not occur and which are independently subject to Department approval somehow justifies its request to require additional information from the parties in the TACA/American proceeding. Continental's motion is predicated on American's announcement that it is investing in and entering into an alliance with Aerolineas Argentinas and Austral, that American and its proposed codeshare partner, British Airways, have entered into alliances with Iberia, and that there may possibly be further investment in Iberia by American and British Airways. It is the TACA Group's understanding that these transactions are mere proposals which have not yet been effected and would require Department approval in any event. Should these transactions occur, and should formal authorization and approval be sought, the Department can and will have ample opportunity to examine the actual transactions presented to it in those proceedings. It is inappropriate, to put it mildly, for the Department to further delay the TACA/American proceeding to seek additional information on the basis of mere announcements of proposed -and entirely distinct -- occurrences where the record in this proceeding is already overburdened.
The TACA Group carriers flatly state that none of them, individually or collectively, is a party to anv of the proposed transactions of which Continental complains involving American and Aerolineas Argentinas, Austral, Iberia, and/or British Airways. Moreover, the existing codeshare agreement between the TACA Group carriers and American, dated June 21, 1996, does not impose any obligation on the TACA Group carriers to enter into any type of codeshare arrangement or other alliance with any other carrier, including Aerolineas Argentinas, Austral, Iberia or British Airways. The TACA Group, therefore, has no documents or information responsive to Continental's proposed requests.
Counsel: Squire Sanders and Mullenholz Brimsek
OST-97-2058 | OST-97-2054, 2055, 2056, 2057 | OST-96-1700 | July 29, 1997
Answer of American Airlines to Motion of Continental Airlines
American has no plans to include Iberia in American's code-sharing agreement with the TACA Group. Nor does American have any plans to include Aerolineas (or Austral) in the American/British Airways alliance, or in American's code-sharing agreement with the TACA Group. These are entirely separate matters, and should be considered by the Department in separate proceedings as they are submitted for approval. If Continental's tactic were to prevail, the Department would rarely conclude any proceedings involving cooperative arrangements between carriers, particularly where, as here, the initial applications have been subjected to protracted delays in processing.
Counsel: American, Carl Nelson, 202-496-5647
As Delta has already pointed out in the American-TACA proceeding, American's principle reason for entering into an alliance with the TACA Group is to further entrench its already dominant position in the U.S.-Central American marketplace. American and the TACA carriers are each other's principle competitors to and from the United States. The evidence in the American-TACA docket indicates that American's primary impetus in creating the alliance is to eliminate competition with its principal Central American competitors. American's plan to join forces with Aerolineas Argentinas, its largest competitor between the United States and Argentina, represents American's latest effort to strengthen its dominant position and solidify its stranglehold over U.S.Latin American markets.
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
Answer of the City of Houston and the Greater Houston Partnership
Houston continues to object to American's emergence as the "chosen instrument" of U.S. aviation policy in Latin America. American is creating precisely the type of competitive stranglehold on this market that Pan American held until two decades of government pressure fmally introduced competition. Unless the Department acts quickly and decisively, the U.S. - Latin American market will retrogress to an anti-competitive, anti-consumer monopoly, just as it was prior to the mid-1960's. It now has come full circle. American is attempting to reinvent the chosen instrument policy rejected more than fifty years ago through a network of alliances, joint ventures, and equity investments which would have made Juan Trippe, Pan American's legendary founder, proud. Continental's motion sets forth the naked numbers with respect to American's dominance, but it goes beyond numbers. Houston's future as a major gateway to Latin America depends in large part on the Department's commitment to maintaining competition in these markets. A "chosen instrument" also means "chosen," and therefore highly limited, gateways. Houston's concern is obvious, but it should be of concern to every other major hub airport in the U.S. with the exception of Miami and Dallas/Ft. Worth.
Counsel: Leftwich Douglas, Frederick Douglas, 202-434-9100
American's announced plan to acquire an ownership stake in Aerolineas Argentinas, Iberia, and Austral and to enter into code-sharing alliances with these carriers is only the latest in a series of unprecedented alliance relationships American has announced over the past year with a number of its principal foreign-flag competitors in key international markets where American is already the dominant U.S. airline. In addition to its proposed alliance with the TACA Combine, American is seeking immunity from the antitrust laws to implement an alliance with British Airways, and Departmental approval for an alliance with Avianca, despite the fact that American is already one of only two U.S. carriers authorized to serve London's Heathrow Airport, and holds more authority in the entry-restricted U.S.-Colombia market than its only U.S.-flag competitor. American has already obtained approval to implement alliances with TAM for service to Brazil, where American holds more frequencies by a considerable margin than any of its U.S.-flag competitors, and with Aero California for service to Mexico.
Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130
American Airlines, Inc. et al., and The TACA Group Reciprocal Code-Share Services Proceding
OST-96-1700 | Served August 22, 1997
Notice Requiring Supplemental Information
By proceeding in this fashion, we are able to give full consideration to recent developments which could have a bearing on the competitive implications of the proposed American/TACA Group alliance. This action will allow us and interested parties an opportunity to examine record evidence on the proposed cooperative alliances before the issuance of a tentative decision by the Department in this matter. We will fully consider views of parties on this new evidence along with the record material already filed.
By: Charles Hunnicutt
American Airlines, Inc. et al., and The TACA Group Reciprocal Code-Share Services Proceeding
OST-96-1700 | August 27, 1997
Response of American Airlines to Notice Requiring Supplemental Information
HTML Version Will Not be Available
American Airlines, Inc. hereby responds to the Department's Notice dated August 22, 1997, requiring certain supplemental information about the joint application for statements of authorization of American and the TACA Group (Aviateca, Copa, Lacsa, NICA, TACA, and TACA de Honduras) to offer reciprocal code-share services between the United States and Central America, and beyond.
Counsel: American, Gary Dornhoefer
Consolidated Reply of The TACA Group to Department Notice for Additional Information
The TACA Group is not a party to the proposed transactions involving Aerolineas, Austral or Iberia and has no documents or information responsive to the Department’s request contained in its August 22 Notice.
Counsel: Squire Sanders, Robert Papkin, 202-626-6601 for LACSA / Mullenholz Brimsek, John Brimsek, 202-296-8000 for TACA, Aviateca, COPA, NICA, and TACA de Honduras
American Airlines, Inc. et. al. and The Taca Group Reciprocal Codesharing Services Proceeding / Comments of United Air Lines, Inc. / Motion of United Air Lines, Inc. / Comments of Continental Airlines, Inc.
OST-96-1700 | September 11, 1997
Comments of United Air Lines, Inc.
Pursuant to the Department's August 22, 1997, Notice, United Airlines is filing its Comments on the Response of American Airlines dated on August 27, 1997 in this docket. Following recent announcements by American's parent AMR Corporation and La Sociedad Estatal de Participaciones Industriales ("SEPI"), the parent of Iberia, that they have reached agreements for American to establish cooperative alliances with Iberia, and with Aerolineas Argentinas and Austral Lineas Aereas, and for AMR to acquire from SEPI an equity stake in the holding company that controls Aerolineas and Austral, Continental Airlines filed a motion with the Department on July 18, 1997.
Motion of United Air Lines, Inc.
United Air Lines, Inc. ("United") requests the Department to require American Airlines, Inc. ("American") and the TACA Group to submit information in this proceeding with respect to the relationship of their alliance agreements with that between American and Lineas Aereas Nacional de Chile ("LAN-Chile"). The information to be submitted should be comparable to the information that they were required to submit by Notice dated August 22, 1997, with respect to American's agreements with Iberia, Lineas Aereas de Espana, SA ("Iberia"); Aerolineas Argentinas ("Aerolineas"); and Austral Lineas Aereas, S.A. ("Austral").
Counsel: Ginsburg Feldman, Joel Burton, 202 637 9130
Comments of Continental Airlines, Inc.
American's reported payment of $300 million for a 10% interest in Aerolineas Argentinas and Austral reflects a valuation based on effective control or the elimination of competition as demonstrated by American's right to appoint board members who choose executive officers and select new investors. Because American s effective "control" of Aerolineas Argentinas, Austral and Iberia through American's ownership interest and infiltration of their corporate structures specifically- relates to the issues before the Department in this case, the Department must require American and its partners to submit all agreements among and between shareholders of Aerolineas Argentinas, Austral Iberia and Interinvest; all bylaws of Aerolineas Argentinas, Austral, Iberia and Interinvest: any and all documents related to the ownership and voting rights of shareholders in Aerolineas Argentinas, Austral, Iberia and Interinvest and any agreements between or among shareholders of those carriers and American or AMR.
Counsel: Crowell Moring, R. Bruce Keiner, Lorraine Halloway, Steven Mirmina, 202 624 2500
American Airlines, Inc. et. al. and The Taca Group Reciprocal Codesharing Services Proceeding / Joint Applications of American Airlines, Inc. and British Airways PLC / Answer of Delta Air Lines, Inc. / Motion of Delta for Confidential Treatment
OST-96-1700 | OST-97-2058 | OST-97-2054 | OST-97-2055 | OST-97-2056 | OST-97-2057 | September 11, 1997
Answer of Delta Air Lines, Inc. to Supplemental Information Response
Delta hereby files this Answer in response to the Supplemental Information submitted by American and TACA on August 27, 1997. The perfunctory and dismissive responses of American and the TACA Group to the Department's information request do nothing to allay the competitive concerns raised by Delta, Continental and TWA. Indeed, the paucity of information supplied by the American/TACA responses serves only to underscore the need for oral evidentiary proceedings by which the Department can more adequately explore American's true motivations in entering into these additional agreements with Iberia and Aerolineas Argentinas and the true relationships between these arrangements and the proposed American-TACA arrangement.
Motion of Delta Air Lines, Inc. For Confidential Treatment Pursuant to Rule 39
Delta requests confidential treatment only to the extent required by Order 97-5-4 and the Department's Notice Requiring Supplemental Information dated August 22, 1997. While Delta has no independent objection to the public disclosure of these materials, Delta is filing under seal, accompanied by this Motion, a confidential version of its Answer, which contains references to the confidential information submitted by American.
Counsel: Shaw Pittman, Robert Cohn, 202 663 8060
American Airlines, Inc. et al. and The TACA Group Reciprocal Code-Share Services Proceeding
OST-96-1700 | September 17, 1997
Response of American Airlines and Motion for Leave to File
The pleadings game that Continental, Delta, and United have been playing for so long should be brought to an end. The proposal by American and Lan Chile, announced on September 9, 1997, to engage in codeshare services under the present U.S.-Chile bilateral agreement, and to seek antitrust immunity under an open skies agreement to be negotiated in the future, has nothing to do with the American/TACA Group codeshare. The two transactions are entirely separate and distinct. They involve countries that are thousands of miles apart. The countries are governed by different bilateral relationships. In fact, the countries in which TACA is based are closer geographically to Continental's hub in Houston than they are to Argentina and China. American has had no discussion with either the TACA Group or Lan Chile about integrating the two transactions, and none is planned
Counsel: American, Carl Nelson, 202-496-5647
Consolidated Reply and Motion for Leave to File of The TACA Group
The TACA Group reiterates its statements contained in its July 25, 1997 Answer to the Motion of Continental to Require Supplemental Information Submission and its August 27, 1997 Reply to the Department's August 22, 1997 Notice Requiring Supplemental Information. As is the case with the proposed arrangement between American and Aerolineas Argentinas, Austral and Iberia, the TACA Group is not a party to the proposed cooperative alliance between American and Lan Chile and has no documents or information that would be responsive to United's motion.
Counsel: Squire Sanders, Robert Papkin, 202-626-6601 for LACSA / Mullenholz Brimsek, John Brimsek, 202-296-8000 for TACA, COPA, NICA, TACA de Honduras
American Airlines, Inc. and The TACA Group Reciprocal Code-Sharing Services Proceeding
OST-97-1700 | September 22, 1997
Answer of Continental Airlines in Support of Motion of United Air Lines
Continentals joins United in calling for immediate action denying the Joint Applications in this proceeding. Absent denial, Continental strongly supports United's request for information concerning American's related alliance with LanChile. Like a black widow spider, American has woven an impenetrable web at Miami to trap foreign partners so it can debilitate them and prevent competition in Latin America. American's proposed "alliances," which are quickly spreading to include all of Central America and most of South America, are poisonous for the consumers American would prey upon and fatal for competition. Black widow spiders are not known for either the health of their prey or the longevity of their mates, and the best antidote to American's poison is for the Department to just say "no" quickly and firmly. Aviation's black widow spider must be stopped now.
Counsel: Continental and Crowell Moring, Bruce Keiner
As Delta has already shown in the American-TACA proceeding, American's principle reason for entering into an alliance with the TACA Group is to further entrench its already dominant position in the U.S.-Central American marketplace. American and the TACA carriers are each other's principle competitors to and from the United States. The route networks of the respective carriers generally overlap one another, and therefore provide no meaningful opportunity to enhance the service and competitive options available to consumers. The evidence in the American-TACA docket indicates that American's primary impetus in creating the alliance is to eliminate competition with its principal Central American competitors.
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
American Airlines, Inc. and Iberia Lineas Aereas de Espana, S.A. (Codesharing and Statements of Authorization)
Undocketed | OST-97-2965 | OST-97-2966 | OST-96-1700 / OST-97-2058 / 97-2054-2057 | October 17, 1997
Answer of Continental Airlines
Counsel: Continental and Crowell Moring, Bruce Keiner
Answer of Delta Air Lines - (Also Filed in Dockets 7)
Motion of Delta Air Lines for Confidential Treatment
Counsel: Delta and Shaw Pittman, Robert Cohn
Consolidated Answer of The Government of Puerto Rico
Counsel: Verner Liipfert, John Merrigan
Answer of Trans World Airlines
Attachment: Common US Codeshare Points, TWA/Air Europa Unique US Codeshare Points, American/Iberia Unique Codeshare Points
Counsel: TWA and Richard Fahy, 202-457-4764, rfahy@ibm.net
Consolidated Answer of United Air Lines
Exhibit UA-1: DGAC - Request for Operations by Regime of Code Share to Palma de Mallorca
Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130
OST-97-2965 | OST-97-2966 | Undocketed | OST-96-1700 | OST-97-2058 | OST-97-2054-2057
There is no question that Delta has violated the Department's affidavit procedures. Delta has used confidential information it obtained in the American/British Airways proceeding -- and promised to use "only for purposes of participating in [that] proceeding and for no other purpose" -- in the American/Iberia (and American/TACA Group) dockets. This is a serious, clearcut, and inexcusable violation of the Department's orders and of Delta's own affidavits, and fully justifies striking Delta's answer from all dockets in which it has been submitted.
Counsel: American, Carl Nelson, 202-496-5647
OST-97-2965 | OST-97-2966 | Undocketed | OST-96-1700 | OST-97-2058 | OST-97-2054-2057 | October 21, 1997
Answer of Delta Air Lines to Motion of American Airlines
Placed in its proper context, American's motion is nothing more than an attempt to transform a procedural triviality into another false claim of abuse of the Department's confidentiality procedures. This claim has no more merit than American's previous assertions of abuse, which Delta repudiated in its September 25, 1997 consolidated answer in OST-97-2058 at pages 13-14. The information discussed in Delta's filing has a direct and substantive bearing on the AA/BA proceeding and on how the Department should evaluate American's proposed alliances. Furthermore, Delta fully protected the confidentiality of this information, and provided it only to the Department and AA/BA affidavit holders. In these circumstances, American's motion lacks substance and should be denied.
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
American Airlines, Inc. and The TACA Group - (reciprocal codeshare agreement)
OST-96-1700 | November 24, 1997
Counsel: Arnold Porter, Paul Denis
American Airlines, Inc. et al. and The TACA Group Reciprocal Codeshare Services Proceeding
Order 97-12-35 | OST-96-1700
Order to Show Cause (Will Download and Print Quickly)
We tentatively find that, subject to the conditions and limitations specified, our action here will advance important public benefits. Final approval would permit the Joint Applicants to operate more efficiently and provide the U.S. traveling and shipping public with expanded networks and seamless service in the U. S.-Central America market. With our proposed conditional approval to these U.S. -Central America markets, our proposed action will be consistent with our policy of facilitating code-share networks, where those networks point the way potentially to lower costs and enhanced service for U.S. and international consumers.
By: Charles Hunnicutt
American Airlines, Inc. et al, and The TACA Group Reciprocal Code-Sharing Services Proceeding
OST-96-1700 | January 9, 1998
Re: Confidentiality Affidavit for United Air Lines
Counsel: Ginsburg Feldman, Joel Burton, 202-637-9130
American Airlines, Inc. et al., and The TACA Group Reciprocal Codeshare Services Proceeding
OST-96-1700 | January 12, 1998
Response of American Airlines to Order 97-12-35 Re Lan Chile
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
The TACA Group reiterates its statement contained in its September 12, 1997 submission to the Department in this Docket--the TACA Group is not a party to the proposed cooperative alliance between American and Lan Chile
Counsel: Squire Sanders, Robert Papkin, 202-626-6601 for LACSA / Mullenholz Brimsek, John Brimsek, 202-296-8000 for TACA Intl, COPA, NICA and TACA de Honduras
Order 98-1-18 | OST-97-2965 | OST-97-2966 | Undocketed | OST-96-1700 | OST-97-2058 | OST-97-2054, 2055, 2055, 2057
Based on the facts as stated in the pleadings, we find that Delta, through its agents, has violated the Department's confidentiality procedures in several significant respects, and that the carrier's answer to the American/Iberia applications should be stricken, both the "confidential" and the redacted versions, in all dockets in which it has been filed. While we have considered other sanctions as well, we have decided against taking such action in light of certain mitigating factors that should be taken into account.
By: Charles Hunnicutt
American Airlines, Inc. et. al. and the TACA Group (Reciprocal Codesharing Services Proceeding) / American Airlines and Lineas Aereas Nacional Chile, S.A. (Approval of Antitrust Immunity for an Alliance Agreement)
OST-96-1700 | OST-97-3285 | Served January 27, 1998
We will grant to counsel and outside experts for the interested parties in the American-TACA case immediate interim access to all confidential materials filed in the American-Lan Chile case. However, we will require that these parties file appropriate affidavits in advance with the Department in the American-Lan Chile case (Docket OST-97-3285) and file a copy of such affidavit in the American-TACA docket.
By: Charles Hunnicutt
American Airlines, Inc. et. al. and The TACA Group
OST-96-1700 | January 28, 1998
Objections of American Airlines
By tentatively rejecting the proposal by American and the TACA Group to engage in codesharing services on a free sale basis, and instead requiring that the applicants convert their contractual agreement into a blocked-space arrangement for a fixed number of seats at a fixed price in certain Miami-Central America city-pairs, the Department has acted contrary to the specific terms of the Open Skies agreements that govern this proceeding.
Counsel: American, Carl Nelson, 202-496-5647
Objections of Continental Airlines
Rather than injecting a vaccine to halt the spread of Type AA Miami monopolization virus throughout the U.S.-Latin America aviation system, the Department has proposed the regulatory equivalent of "take two aspirins." If the Department is not prepared to develop a vaccine, it must at least prescribe stronger medicine to foster healthy competition in the U.S.-Latin America aviation system.
Counsel: Continental and Crowell Moring, Bruce Keiner
Response of The Dallas/Ft. Worth International Airport to Order to Show Cause
The Dallas/Fort Worth International Airport (Dallas/Ft. Worth) stands to benefit immensely from implementation of proposed code-sharing between American and TACA Group carriers on the DFW-Central America routes. Therefore Dallas/Ft. Worth urges that the Department grant immediate approval for any American/TACA Group code-sharing on DFW routes while the Department reviews the responses to its Show Cause Order that address the proposed conditions on code-sharing on Miami-Central America routes.
Counsel: Bagileo Silvergerg, Michael Goldman, 202.944.3305
Delta has described in detail in its prior pleadings why the AA-TACA alliance poses a serious threat to competition in the region and why it will not produce the public benefits normally associated with cooperative alliances. The public benefits of the arrangement would be minimal and are clearly outweighed by the injurious competitive effects.
Motion of Delta Air Lines for Confidential Treatment
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
Clearly, open skies has resulted in a surge of new interest among U.S. carriers in serving Central America, ensuring that no carrier will be able to maintain supra-competitive fares in United States -Central American markets. The inflexibility of a fixed blocked-space arrangement is inconsistent with specific language of the liberal open skies agreements in effect with each of the TACA Group carriers' homelands which specifically authorize cooperative marketing arrangements, and is wholly unnecessary in order to maintain price and service discipline in the affected markets which are already responding to the new competitive services flowing from the open-skies regime.
Counsel: Squire Sanders for LACSA / Mullenholz Brimsek for TACA, Aviateca, COPA, NICA, TACA de Honduras
Objections of United Air Lines to Tentative Findings and Conclusions in Order 97-12-35
Throughout this proceeding, United has urged the Department to pay particular attention to the competitive issues raised by cooperation between American and the TACA Group at Miami. Because of Miami's unique geographical and economic position with respect to traffic between the U.S. and Central America and other points in the Latin America/Caribbean region, these issues were the most serious raised by the proposed American/TACA Group alliance. Miami accounts for over half the total service between the U.S. and Central America.
Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130
American Airlines, Inc. and The TACA Group Reciprocal Codeshare Services Proceeding
OST-96-1700 | January 28, 1998
Comments of The United States Department of Justice
The DOJ takes no position on the weight that the Department should give to open skies achieved as a precondition to its consideration of the current code-share application (or on whether open skies could be achieved without approval of this specific agreement). For the reasons noted below, however, the DOJ urges the Department to give little weight to the parties, proffered efficiencies and resulting claims of expanded networks and seamless service in the U.S. - Central American market. The claimed efficiency benefits that are unique to this transaction are very slight, yet the agreement presents some potential risks to competition that should be carefully weighed in the public interest analysis.
Counsel: DOJ, Roger Fones
OST-96-1700 | OST-97-3285 | February 5, 1998
Affidavits for Counsel of Continental Airlines (Paul Denis, Lorraine Halloway, Bruce Keiner)
Counsel: Crowell Moring, Bruce Keiner
American Airlines, Inc. et. al. and The TACA Group Reciprocal Code-Share Services Proceeding
OST-96-1700 | February 6, 1998
Answer of American Airlines to Comments and Objections to Show-Cause Order 97-12-35
The Department should finalize order 97-12-35, subject to the objections that American and the TACA Group submitted on January 28, 1998 with respect to proposed condition (1)(c). DOJ states that the American/TACA Group proposal presents benefits and risks "that should be carefully weighed in the public interest analysis" (p. 2). American believes that, with the exception of the cited condition, the Department has done so. This proceeding, pending for 19 months, should be promptly concluded, so that the public benefits of the American/TACA Group arrangement may at last begin, consistent with the Open Skies agreements between the United States and the nations of Central America.
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
Answer of Continental Airlines to Comments and Objections
The expert diagnosticians at the Department of Justice have described the pandemic which Type AA Monopoly virus would cause throughout the U.S.-Central America region, but only Department of Transportation immunologists can halt this virulent disease. They must do so to preserve competition between the U.S. and Central America.
Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2500
Answer of the Dallas/Ft. Worth International Airport to Objections in Order 97-12-35
As expected, the airline opponents and DOJ concentrate their objections on the effectiveness of the proposed blocked space/ code-sharing requirement on the Miami routes, while American and the TACA Group carriers object to the imposition of such a condition; they state that it is contrary to the U.S.-Central American Open Skies Agreements and will provide less price competition between American and TACA Group carriers than free sale code-sharing. None of the opponents object seriously to American/TACA Group code-sharing on the DFW-Central America routes. Since the Dallas/Ft. Worth area will benefit immensely from such code-sharing, Dallas/Ft. Worth renews its request that the Department grant immediate approval to American/TACA Group codesharing on the DFW routes if conditions on Miami code-sharing require further review.
Counsel: Bagileo Silverberg, Michael Goldman, 202.944.3305
If the American-TACA arrangement is disapproved, Delta is in a strong position to develop an arrangement with the TACA Group that would maximize competition between the United States and Central America, particularly against American's dominant position. Delta has a strong presence at Miami and Miami-North domestic markets. Delta provides multiple daily flights between Miami and its major hubs at Atlanta and Cincinnati, and to its major international gateway at JFK. A Delta-TACA code-share arrangement would not only inject a strong new entrant in the Miami-Central America markets, but also create new substantial competition with United, American and the TACA carriers.
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
Answer of The City of Houston and The Greater Houston Partnership
As the Department is aware, the Houston Parties have consistently supported both the Department's efforts to expand opportunities for U.S. carriers and consumers and its open skies agenda. But the tentative decision in this case, if made final, will represent a setback to these efforts of disastrous proportions.
Counsel: Leftwich Douglas, Frederick Douglas, 202-434-9100
Answer of Regional Business Partnership - Newark
The Regional Business Partnership was surprised and alarmed when the Department tentatively approved the American/TACA Group arrangement, since American's goal is to preempt other carriers from linking with the TACA Group and allowing an already dominant American to join forces with its chief competitor in the U.S.-Central America market at Miami will make it difficult, if not impossible, for other U.S. airlines to develop alternative hubs for U.S.-Central America services. The Antitrust Division's well-reasoned comments show just how dangerous the American/TACA agreement is for competition and why this Department should reverse its tentative approval.
By: Samuel Crane, 201-242-6237
Consolidated Reply of The TACA Group
The opponents utterly fail to understand -- although the Department clearly does understand -- that the recent Open Skies Agreements with the six homeland nations of the TACA Group carriers effectively compel approval of the TACA/American codeshare. Continental, United, and Delta are already benefitting from these agreements by substantially expanding their non-stop service to Central America from existing and new U.S. gateways. But they would deny the TACA Group any comparable benefit resulting from the expansion of its much smaller network into the United States. Indeed, their opposition, if successful, would gravely injure TACA in its attempts to compete against the U.S. mega-carriers.
Counsel: Squire Sanders, Robert Papkin, 202-626-6601 for LACSA / Mullenholz Brimsek, John Brimsek, 202-296-8000 for TACA, Aviateca, COPA, NICA and TACA de Honduras
American Airlines, Inc. et. al. and the TACA Group Reciprocal Codesharing Services Proceeding
OST-96-1700 | February 9, 1998
Consolidated Answer of United Air Lines, Inc. and Motion for Leave to File Late
What is clear from the record in this case is that elimination of code sharing at Miami is essential if any approval is to be given for the remainder of the American/TACA Group services. United urges DOT to consider that alternative in light of all of the objections submitted to its order to show cause. Based on that consideration, DOT should issue another order replacing the blocked-space condition with a decision to disallow all code sharing between American and the TACA Group for services to, from and via Miami.
Counsel: Ginsburg Feldman, Joel Burton, 202.637.9130
American Airlines, Inc. et al. and The TACA Group Reciprocal Codesharing Services Proceeding
OST-96-1700 | February 13, 1998
Consolidated Reply of United Air Lines and Motion for Leave to File
No matter what services are added at other gateways, they will not provide competition for a combined American/TACA alliance where it is needed most -- at Miami. If American/TACA codesharing is to be allowed, the only way to assure any opportunity for competition at Miami is to adopt United's proposal to disallow code sharing by American/TACA on services to, from or via Miami. Given American's impregnable market position at Miami, that city's unique geographic position as a gateway to Central America and the fact that Miami-Central America local markets are the largest U.S.-Central America citypair markets by a considerable margin, there will be no competition for Miami-Central America traffic via other gateways, as the Department itself has found.
Exhibit UA-601: The American/TACA Combine Will Soon Control 90% of The Miami-Central America Market
Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130
American Airlines, Inc. and The TACA Group Reciprocal Code-Share Services Proceeding
OST-96-1700 | February 25, 1998
Consolidated Response of Continental and Motion for Leave to Late-File an Unauthorized Document
The pro-competitive Continental/Northwest alliance is the antithesis of American's proposed overlapping alliance with the six TACA Group carriers, and the Department should reject American's desperate attempt to suggest otherwise. The Department should also reject United's suggestion that the anticompetitive American/TACA alliance might warrant approval with code sharing disallowed only at Miami.
Letter from Houston's Congressional Delegation
Enclosed for filing in this docket is a letter from Houston's congressional delegation urging the Department to consider the conclusions submitted by the Department of Justice and disapprove the alliance between American Airlines and the TACA Group.
Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2500
American Airlines, Inc. and the TACA Group / American Airlines, Inc. and LAN Chile
OST-96-1700 | OST-97-3285 | February 27, 1998
Confidentiality Affidavit of Continental Airlines, Inc. - Steven Mirmina
Counsel: Steven Mirmina, 202.624.2500
American Airlines, Inc. et. al., and the TACA Group Reciprocal Codeshare Services Proceeding
OST-96-1700 | March 9, 1998
Confidentiality Affidavits of Allied Pilots Association
American Airlines, Inc. and The TACA Group Reciprocal Code-Share Services Proceeding
OST-96-1700 | March 13, 1998
Confidentiality Affidavit for Edgar James - James & Hoffman, Counsel to ALPA
OST-96-1700 | OST-97-3285 |April 1, 1998
Affidavit for Counsel of Continental Airlines - Michele M. Burris
American Airlines, Inc. and The TACA Group Reciprocal Code-Sharing Services Proceeding
OST-96-1700 | April 14, 1998
Affidavit of Donald Bliss, Patrick Rizzi, David Beddow, Benjamin Bradshaw, Counsel for US Airways
OST-97-2058 | OST-96-1700 | OST-97-3285 | Dated April 16, 1997 | Docketed April 15, 1998
Re: Joint Applications - Affidavits of Counsel for Trans World Airlines, Inc.
Pursuant to Order 97-342, enclosed for filing are the original and eight copies of a confidentialiyv affidavit of Kathleen A. Soled in the Arnerican/BA proceeding. In addition. pursuant to Order 98-3-31, enclosed are the originals and eight copies of confidentiality affidavits of Kathleen A. Soled, Richard J. Fahy, Jr., and Daniel S. Klein in the AA/TACA and AN/Lan Chile proceedings.
Counsel: Richard Fahy for TWA
OST-97-3285 | OST-97-2982 | Undocketed | OST-96-1700 | April 23, 1998
Re: Confidentiality Affidavits
Counsel: James Hoffman, Marta Wagner, 202-496-0500
OST-96-1700 | OST-97-3285 | April 28, 1998
American Airlines, Inc. and The TACA Group Reciprocal Codeshare Services Proceeding
OST-96-1700 | May 15, 1998
American Airlines, Inc. et al., and The TACA Group Reciprocal Code-Share Services Proceeding
Order 98-5-26 | OST-96-1700 | Issued and Served May 20, 1998
By this Order, we grant final approval for the various applications of American Airlines, Inc. ("American") and Aviateca S.A. ("Aviateca"), Compañia Panameña de Aviación S. A. ("COPA"), Líneas Aéreas Costarricenses S.A. ("LACSA"), Nicaraguense de Aviación S.A. ("NICA"), TACA International Airlines S.A. ("TACA"), and TACA de Honduras S.A. (each individually a "TACA Group Affiliate Air Carrier," and hereafter collectively referred to as "the TACA Group") to the extent necessary to permit them to conduct reciprocal code-share services operated by these carriers for a period of two years, subject to conditions.
Subject to conditions and limitations, our action here will advance important public policy and consumer benefits. Our actions will permit the applicants to operate more efficiently and provide the U.S. traveling and shipping public with expanded networks and seamless service in the U.S.-Central America market. Moreover, with our proposed conditional approval to these U. S.-Central America markets, our action will be consistent with our open-skies negotiating policy and with our policy of facilitating codeshare networks, where those networks point the way potentially to lower costs and enhanced service for U.S. and international consumers.
By: Charles Hunnicutt
American Airlines, Inc. et al., and The TACA Group Reciprocal Code-Share Services Proceeding
OST-96-1700 | May 20, 1998
Confidentiality Affidavit for Judith Conti of James & Hoffman for ALPA
American Airlines, Inc. and The TACA Group Reciprocal Codeshare Services Proceeding
OST-96-1700 | May 27, 1998
Re: Confidentiality Affidavit for Darryl Libow, Richard Sauer, Bernard Joseph of Sullivan & Cromwell for British Airways
American Airlines, Inc. and The TACA Group - (Approval of and Antitrust Immunity for Alliance Agreement)
OST-96-1700 | May 29, 1998
Confidentiality Affidavit of Mark McCall - (Counsel for British Airways, Plc)
American Airlines, Inc. and The TACA Group Reciprocal Codeshare Services Proceeding (Antitrust Immunity)
OST-96-1700 | May 29, 1998
Confidentiality Affidavit for James Blaney, Counsel for British Airways
Confidentiality Affidavit for Paul Jasinski, Counsel for British Airways
American Airlines, Inc., et al, and The TACA Group Reciprocal Code-Share Services Proceeding
| OST-96-1700 | March 17, 2000 | Joint Application for Renewal and Amendment of Code-Sharing and Related Exemption Authority | Approval of and Antitrust Immunity for Alliance Agreement |
| Service List |
Counsel: American, Carl Nelson, 202.496.5647, carl_nelson@amrcorp.com and Squire Sanders, Robert Papkin, 202.626.6600
| OST-96-1700 OST-00-7088 |
March 27, 2000 | Re: Letter Regarding Answer Date | American Airlines, Inc., et al., and the TACA Group, Code-Share Arrangement |
Counsel: Crowell Moring, Thomas Newton Bolling, 202-624-2683, tbolling@cromor.com
American Airlines, Inc. et al., and The TACA Group Reciprocal Code-Share Services Proceeding
| OST-96-1700 OST-00-7088 |
April 3, 2000 | Motion of Delta Air Lines | U.S.- Central American |
| Service List |
Hereby moves the Department to require American Airlines, Inc. and the TACA Group to produce additional documents and information that are vital to the Department’s ability to make an informed decision, and for interested parties to comment, on the above -captioned applications for antitrust immunity and the renewal and expansion of American/TACA codeshare authority.
Counsel: Shaw Pittman, Robert Cohn, 202.663.8060
| OST-96-1700 | April 3, 2000 | Answer of Delta Air Lines | U.S.- Central American |
| Service List |
American and TACA’s "renewal" application seeks to eliminate substantially all of the necessary competitive safeguards that the Department insisted upon to try and mitigate the anticompetitive effects of this unhealthy codeshare arrangement. Moreover, the Department specifically stated that TACA's failure to enter into a competitive codeshare agreement with another U.S. airline – which TACA has not done -- would be considered a negative factor in deciding whether the American/TACA arrangement should be renewed.
Counsel: Shaw Pittman, Robert Cohn, 202.663.8060
American Airlines, Inc., et al, and The TACA Group Reciprocal Code-Share Services Proceeding
| OST-96-1700 | April 4, 2000 | Re: Affidavits of Continental Airlines | U.S.- Central American |
| Affidavit of Thomas Newton Bolling | |||
| Service List |
Counsel: Crowell Moring, Thomas Newton Bolling, 202-624-2683, tbolling@cromor.com
American Airlines, Inc., et al, and The TACA Group Reciprocal Code-Share Services Proceeding
| OST-96-1700 | April 5, 2000 | Re: Notification of Consolidated Reply Date | Approval of and Antitrust Immunity for Alliance Agreement |
| Service List |
American Airlines, Inc. and the TACA Group submitted the captioned joint application on March 17, 2000. Answers would have been due on April 3, 2000, but Continental Airlines, Inc. requested and received an extension of time until April 7, 2000. Nonetheless, Delta Air Lines, Inc. filed its answer and a related motion on April 3, 2000. In these circumstances, American and the TACA Group intend to file a consolidated reply to all answers and motions within seven days of April 7, 2000, or on April 18, 2000. We have advised Continental, Delta, and United Air Lines, Inc. of our intention to do so, and each has indicated its consent.
Counsel: American, Carl Nelson, 202.496.5647, carl_nelson@amrcorp.com and Squire Sanders, Robert Papkin, 202.626.6600
American Airlines, Inc. et al., and The TACA Group Reciprocal Code-Share Services Proceeding
| OST-96-1700 OST-00-7088 |
Served April 7, 2000 | Notice | U.S.- Central American |
By: Bradley Mims
American Airlines, Inc., and The TACA Group
| OST-96-1700 OST-00-7088 |
April 12, 2000 | Joint Answer of American and TACA to Motion of Delta Air Lines | U.S.- Central American |
| Attachment 1: Delta Celebrates Latin American Expansion | |||
| Attachment 2: From Aviation Daily | |||
| Service List |
Delta’s motion is simply another in a long string of attempts by Delta and other airlines to
frustrate and delay implementation of a viable TACA/American alliance, and it should be flatly rejected as such. The material Delta wants the Department to obtain from American and TACA would not only be extremely burdensome for the applicants to develop and produce (indeed, TACA literally could not produce much of the information as requested by Delta), it is also completely unnecessary for the Department’s review and consideration of the pending applications. Ironically, Delta’s request comes at a time when competition in U.S.-Latin American markets has never been stronger, and when consumers of air travel in those markets are benefiting as never before.Counsel: American, Carl Nelson, 202.496.5647, carl_nelson@amrcorp.com and Squire Sanders, Robert Papkin, 202.626.6600
| OST-96-1700 OST-00-7088 |
April 12, 2000 | Answer of Continental Airlines | U.S.- Central American |
Continental agrees with Delta that American and the TACA Group should be required to provide additional information to the Department on their proposal for antitrust immunity and renewal and amendment of codeshare authority and that all confidential information should be available for use in either proceeding. American and the TACA Group have failed to submit the information the Department must have to weigh the substantial anticompetitive impact of these applications for antitrust immunity and for removal of the Department's blocked-space condition on the Miami-Central America codeshare service by American and the TACA Group, although some additional information should be required.
Counsel: Crowell Moring, Bruce Keiner, 202.624.2500
| OST-96-1700 | April 12, 2000 | Re: Affidavits on Behalf of Delta Air Lines | U.S.- Central American |
| Affidavit: Jonathan Echmalian | |||
| Service List |
Counsel: Shaw Pittman, Alexander Van der Bellen, 202.663.8060
| OST-00-7088 | April 12, 2000 | Re: Affidavits on Behalf of Delta Air Lines | U.S.- Central American |
| Affidavits: John Varley, Robert Cohn, Alexander Van der Bellen, Jonathan Echmalian | |||
| Service List |
Counsel: Shaw Pittman, Alexander Van der Bellen, 202.663.8060
American Airlines, Inc., and The TACA Group
| OST-96-1700 OST-00-7088 |
April 20, 2000 | Joint Response of American and TACA to the Answer of Continental Airlines | U.S.- Central American |
| Service List |
Predictably, Continental Airlines, Inc. enthusiastically supports the Motion of Delta Air Lines, Inc. to burden The TACA Group and American Airlines, Inc. ("American") with additional evidence requests in connection with the captioned joint applications. See Answer of Continental Airlines, Inc. to Motion, filed April 12, 2000. Like Delta, Continental never misses an opportunity to frustrate and delay the implementation of a viable TACA/American alliance. even though their tactics inevitably prolong the day when consumers in U.S.-Central America markets will receive the full benefits of the Open Skies agreements signed in May of 1997.
Counsel: American, Carl Nelson, 202.496.5647, carl_nelson@amrcorp.com and Squire Sanders, Robert Papkin, 202.626.6600
| Order 00-7-8 OST-00-7088 OST-96-1700 |
Issued and Served July 7, 2000 | Order Requiring Additional Information | Approval of and Antitrust Immunity for an Alliance Agreement |
On April 3, 2000, Delta Air Lines, Inc. filed a motion asking the Department to require the Joint Applicants to produce additional documents and information that Delta claims are "vital" to our ability to make a decision, and for interested parties to comment on these applications. Delta also moved that the Department clarify that confidential documents produced by the Joint Applicants in either proceeding may be used in reference to the other proceeding; and that objecting parties should also have the opportunity to file new or supplemental answers to the two proceedings, once the requested material has been produced by the applicants.
By: Bradley Mims
American Airlines, Inc. et al., and The TACA Group Reciprocal Code-Share Services Proceeding
| OST-00-7606 | July 12, 2000 | Answer of Continental Airlines | Codesharing with The TACA Group; Additional U.S. City-Pairs |
American and the TACA Group already provide more U.S.-Central America service than any other airline or combination of airlines, and they continue to dominate the critical Miami gateway. Allowing American to display codes of TACA Group members between the Dallas/Ft. Worth and Los Angeles gateways, which they already dominate, and additional U.S. points would spread the anticompetitive effects of the American/TACA Group codeshare alliance to more U.S. points beyond American's U.S. international gateways and increase the harm to the traveling and shipping public. Moreover, the proposed codesharing would be fully horizontal and not produce any meaningful public benefits since American already offers online Central America service between each of the U.S. points American proposes for additional codesharing with the TACA Group. Under these circumstances, the risks to competition are high and the public benefits are minimal. For these reasons, the Department should deny American's request.
Counsel: Crowell Moring, Bruce Keiner, 202.624.2500, rbkeiner@cromor.com
| OST-00-7606 OST-96-1700 |
July 12, 2000 | Answer of Delta Air Lines | Codesharing with The TACA Group; Additional U.S. City-Pairs |
| Attachment: Answer of Delta from April 3rd | |||
| Service List |
American and TACA's "renewal" application seeks to eliminate substantially all of the necessary competitive safeguards that the Department insisted upon to try and mitigate the anticompetitive effects of this unhealthy codeshare arrangement. Moreover, the Department specifically stated that TACA's failure to enter into a competitive codeshare agreement with another U.S. airline - which TACA has not done would be considered a negative factor in deciding whether the American/TACA arrangement should be renewed.
Counsel: Shaw Pittman, Alexander Van der Bellen, 202.663.8060
OST-96-1700 |
July 12, 2000 | Re: Affidavits of Delta Air Lines | Codesharing with The TACA Group; Additional U.S. City-Pairs |
| Attachment: Affidavits of John Varley, Robert Cohn, Alexander Van der Bellen, Jonathan Echmalian | |||
| Service List |
Counsel: Shaw Pittman, Alexander Van der Bellen, 202.663.8060
| OST-00-7088 OST-96-1700 |
February 28, 2001 | Joint Response to Order 00-7-8 | Approval of and Antitrust Immunity for an Alliance Agreement |
| Exhibit: Sabre Blocked Space Condition | |||
| Service List |
For the reasons explained above, none of Sabre's customers can support both a free-sale and blocked-space arrangement with the same carrier. For example, American has a blocked-space arrangement with China Eastern Airlines applicable to all routes and flights and cannot support a blend of blocked-space and free sale arrangements with China Eastern.
Commencing in January 1998, and continuing for a period of over eight months, American, TACA and Sabre undertook an extensive review of Sabre's codeshare capabilities to support DOT's blocked-space condition. The parties attempted to identify alternative solutions requiring the least extensive programming, and concluded that the only feasible solution was to modify the TCS AT table and related functions. Other alternatives were dismissed due to potential customer service shortcomings and safety and security concerns.
Sabre's most recent high level estimate for this work is approximately 5 person-years (8,050 hours) or $676,000. Depending upon the availability of technical resources, Sabre expects the project to take 12 to 15 months to complete.
Counsel: American, Carl Nelson, 202.496.5647, carl_nelson@aa.com, and Squire Sanders, Robert Papkin, 202.626.6601
| OST-00-7088 OST-96-1700 |
February 28, 2001 | Joint Motion for Confidential Treatment | Antitrust Immunity - Confidential Treatment |
| Attachments: Index of Confidential Documents | |||
| Service List |
In accordance with 14 CFR 302.12(d)(1)(i), American and the TACA Group have each attached an index of the documents for which we seek protection. The documents are being submitted in sealed envelopes labeled "Confidential Treatment Requested Under 14 CFR 302.39; Access Is Limited To Counsel And Outside Experts Who Have Filed Proper Confidentiality Affidavits."
For the foregoing reasons, the Department should grant this motion under Rule 12 to withhold certain proprietary and commercially sensitive confidential information from public disclosure, as requested herein.
Counsel: American, Carl Nelson, 202.496.5647, carl_nelson@aa.com, and Squire Sanders, Robert Papkin, 202.626.6601
American Airlines, Inc. et al., and The TACA Group Reciprocal Code-Share Services Proceeding
| OST-96-1700 OST-00-7088 |
March 27, 2001 | Request for Additional Information of American Airlines | U.S.- Central American |
By: Randall Bennett
| OST-96-1700 OST-00-7088 |
March 27, 2001 | Request for Additional Information of the TACA Group | U.S.- Central American |
By: Randall Bennett
| OST-00-7088 OST-96-1700 |
April 11, 2001 | Motion of American Airlines for Confidential Treatment of Documents and Response to Letter from Office of Aviation Analysis | Antitrust Immunity - Confidential Treatment |
| Attachments: Request for Additional Information 3/26/01 | |||
| Attachments: List of Documents Responsive to Revised Item 3, 4/11/01 | |||
| Service List |
Counsel: American, Carl Nelson, 202.496.5647, carl_nelson@aa.com
American Airlines, Inc. et al., and The TACA Group Reciprocal Code-Share Services Proceeding
| OST-96-1700 OST-00-7088 |
Served April 27, 2001 | Notice Establishing Procedural Schedule | U.S.- Central American |
By Order 2000-7-8, issued July 7, 2000, we directed the partners to submit additional information and documents that we found to be relevant to our assessment. On February 28, 2001, the partners individually and jointly submitted material in response to our Order. Based on our review, we found the material incomplete. By letter dated March 26, 2001, we clarified our evidentiary request, consistent with Order 2000-7-8, and directed the partners to provide us with a more comprehensive assessment of information Item 3. On April 11, 2001, they submitted material in response to our letter. Based on our review of this material, we find that the application is now substantially complete.
Therefore, we direct interested parties to file answers in Dockets OST-2000-7088 and OST-96-1700 no later than 21 days from the date that this Notice is served, and replies shall be filed no later than 7 business days after the last day for filing answers. Interim access to confidential materials is subject to the procedures and restrictions set forth in the Department's Notice of April 7, 2000, and Order 2000-7-8. We will serve this Notice on all persons on the service lists in both dockets.
By: Susan McDermott
American Airlines, Inc. et al., and The TACA Group Reciprocal Code-Share Services Proceeding
| OST-96-1700 OST-00-7088 |
April 11, 2001 Docketed May 10, 2001 |
Answer of the Grupo TACA | U.S.- Central American |
| Service List |
In my capacity as counsel to Grupo TACA in Docket OST-2000-7088, I am writing in response to your letter of March 26, 2001.
Following receipt of your letter, Grupo TACA made a further search of its records. I have been informed that Grupo TACA has no studies, analyses, reports or information produced since May 20, 1998 consistent with the scope of the "clarification" set forth in your letter with respect to Item 3 of the DOT's order issued on July 7, 2000.
Grupo TACA is concerned at the further delay that has resulted from both its effort, and what we understand to be the similar effort of American Airlines, to review all of their records in an effort to supply information that goes far beyond the original Item 3 of DOT Order 2000-7-8. Grupo TACA believes that the further request made in your letter of March 26, 2001 was in no sense a "clarification" of Item 3, but was a vast expansion of the request made last July to which Grupo TACA believed it responded fully in its filing of February 28, 2001.
Grupo TACA remains concerned at the further delay that has resulted from your expanded request. Grupo TACA has asked me to emphasize to your office the great iniportance to it of the further expeditious processing of its application for renewal and approval of its Alliance Agreement with American Airlines and for antitrust immunity so that Grupo TACA finally may enjoy the full benefits of the Open Skies agreements between the United States and the homelands of Grupo TACA's member carriers.
Counsel: Squire Sanders, Robert Papkin, 202.626.6600
| OST-00-7088 OST-96-1700 |
May 18, 2001 | Answer of Continental Airlines | Approval of and Antitrust Immunity for an Alliance Agreement |
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