OST-97-2633
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OST-97-2633
Philippine Airlines, Inc. (Exemption, Manila-Chicago/Dallas/Miami/Washington, DC)
OST-97-2633 | June 18, 1997
PAL will commence service to these points under a code-share arrangement with American. Under the code-share agreement, PAL will place its code on American Airlines flights operating between Los Angeles and San Francisco on the one hand,; and some or all of the four named points, on the other hand. PAL's codeshare agreement with American also includes service to Newark/New York (JFK). PAL already holds an exemption to serve Newark, New Jersey, rights which it currently exercises via the intermediate point Vancouver, Canada with local traffic rights between Vancouver and Newark. Notice of Action Taken (August 30, 1996). Under long standing Department policy, the right to serve Newark encompasses the authority to serve New York (JFK) as well. Consequently, it is not necessary for PAL to include New York as one of the named points in this application, although PAL's agreement with American also covers codeshare services to JFK (with Fifth Freedom traffic rights between Vancouver and Newark/New York (JFK)).
Attachment A - Code Share Service with American | Service List
Counsel: Philippine Airlines and Zuckert Scoutt, Raymond Rasenberger, 202-298-8660
Philippine Airlines, Inc. / American Airlines, Inc. (Exemption, Manila-Chicago/Dallas/Miami/Washington, DC / Statement of Authorization, Code Share)
OST-97-2633 | Undocketed | July 3, 1997
Consolidated
Answer of United Air Lines
Although PAL is a designated airline of the Philippines, American is not a designated airline of the United States under the U.S.-Philippine bilateral agreement. Due to bilaterally-agreed limits on designations, American cannot be designated to operate services under the U.S./Philippines air services agreement. Therefore, the statement of authorization and exemption requested by American and PAL, respectively, are extrabilateral in nature.
A code share of the type proposed by American and PAL would produce benefits, particularly for those carriers, but benefits for the public from code sharing are fully realized only when carriers are able to offer code share services that compete with each other. Such competitive services offer the public additional choices that are not available under the sort of codeshare arrangements proposed by PAL and American which, under the present bilateral agreement, would be insulated from competition. In order to compete effectively with PAL, United and other U.S. carriers should be permitted to offer code-share services to points beyond Manila with any Philippine air carrier authorized to serve those points, whether or not that Philippine carrier is designated under the U.S.-Philippine air services agreement.
Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130
Philippine Airlines, Inc. / American Airlines, Inc. (Exemption and Statements of Authorization, Codeshare)
OST-97-2633 | Undocketed | July 14, 1997
Joint Reply
of American Airlines and Philippine Airlines
PAL's agreement with American does not require extrabilateral authority. Contrary to United's claims, PAL has long had the right to enter into codeshare agreements with non-designated U.S. carriers. In this respect, PAL's agreement with American is no different from an earlier codeshare arrangement between PAL and TWA. United reads the 1995 Memorandum of Consultations ("MOC") as stripping PAL of this right, a view that is at odds with the liberalizing intent of the MOC. It is also flatly inconsistent with the specific assurances which the Philippine delegation sought, and obtained, from U.S. negotiators on this very point. The discussions leading up to the MOC focused not on the removal of existing entitlements but on the expansion of bilateral rights for the carriers of both sides. Properly construed, the MOC takes away none of the rights which PAL previously exercised to codeshare with non-designated U.S. airlines. United is alone in taking the opposite position. None of the other designated U.S. carriers view the bilateral so restrictively. Moreover, United itself has been inconsistent in advancing its peculiar interpretation of the bilateral's meaning. It has not previously objected to other requests for cooperative agreements between PAL and non-designated U.S. carriers involving U.S.-Philippine services.
Counsel: American, Carl Nelson, 202-496-5647 / Philippine and Zuckert Scoutt, Raymond Rasenberger, 202-298-8660
Phillipine Airlines, Inc. - (Notice of Action Taken)
OST 97-2633 | Filed June 18, 1997 | Action Taken April 6, 1998
Exemption from 49 U.S.C. 41301 to conduct scheduled foreign air transportation of persons, property and mail between Manila, the Philippines, and Chicago, Illinois; Dallas/Ft. Worth, Texas; Miami, Florida; and Washington, D.C., under a code-sharing arrangement with American Airlines, Inc.
Applicant representative: Joseph Schmitz, 202.457.6000
Various Foreign Air Carriers (Order Confirming Notices of Action Taken)
Order 98-7-13 | Issued July 21, 1998 | Served July 27, 1998
By: Paul Gretch
| OST-97-2633 | April 6, 1999 | Application
for Renewal of Exemption |
Manila-Chicago/Dallas/Miami/Washington Codeshare with American |
| Service List |
Due to extraordinary financial pressures over the last year, PAL has never fully implemented its code-share agreement with American. Having obtained new financial backing, PAL has embarked on an effort to strengthen its code-share and interline relationships. Full implementation of the code-share agreement with American is an important PAL priority. Under a separate grant of exemption, PAL is authorized to offer code-share services to New York via Vancouver, Canada. See, Notice of Action Taken (July 2, 1998). This code-share service, also covered under the agreement with American, is authorized through July 2, 1999. PAL would not object if its New York code share authority is combined with the exemption requested here so that all of its code-share arrangement with American is covered under a single exemption. PAL respectfully requests renewal for a one-year period of its current exemption authority to offer code-share service to Chicago, Dallas/Ft.Worth, Miami and Washington D.C.
Counsel: Philippine and Zuckert Scoutt, Malcolm Benge, 202-298-8660
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