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OST-1997-2965

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American Airlines, Inc. (Exemption, US-Spain, Codesharing with Iberia)

OST-97-2965 | October 2, 1997

Application for Exemption

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American Airlines, Inc., under 49 USC 40109, hereby applies for exemption authorizing it to engage in foreign air transportation of persons, property, and mail between (1) New York (JFK), Chicago, and San Juan and Madrid, Spain; (2) points in the United States, via Madrid, and Alicante, Bilbao, Jerez de La Frontera, La Coruna, Las Palmas, Sevilla, Valencia, and Vigo, Spain; and (3) points in the United States, via Madrid, and Marseille, France and Porto, Portugal.

The U.S.-Spain market is served by five U.S. carriers operating highly competitive nonstop and network services. TWA and Delta are the largest, with 14 weekly frequencies each (TWA serves New York-Madrid and New York-Barcelona, and Delta serves Atlanta-Madrid/Barcelona and New York-Madrid. Continental has seven weekly frequencies (Newark-Madrid), and USAirways has seven (Philadelphia-Madrid). American, with seven weekly frequencies between Miami and Madrid, ranks among the smaller of the U.S. carriers serving Spain. In addition to Iberia, Air Europa operates seven weekly frequencies between New York (JFK) and Madrid. By its codeshare arrangement with Iberia, American will provide consumers with new service and fare options, and bring increased competition to the marketplace.

American and Iberia are planning to implement their codeshare agreement beginning on December 1, 1997.

Answers are due by October 17, 1997

Service List

Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com

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

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Counsel: Continental and Crowell Moring, Bruce Keiner

Answer of Delta Air Lines - (Also Filed in Dockets 7)

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Motion of Delta Air Lines for Confidential Treatment

Counsel: Delta and Shaw Pittman, Robert Cohn

Consolidated Answer of The Government of Puerto Rico

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Counsel: Verner Liipfert, John Merrigan

Answer of Trans World Airlines

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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

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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

American Airlines, Inc. and Iberia Lineas Aereas de Espana, S.A. / American Airlines, Inc. and The TACA Group Reciprocal Code-Share Services Proceeding / American Airlines and British Airways Plc

OST-97-2965 | OST-97-2966 | Undocketed | OST-96-1700 | OST-97-2058 | OST-97-2054-2057

Motion of American Airlines to Strike Answer by Delta Air Lines and for Sanctions for Violating Confidentiality Procedures

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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

American Airlines, Inc. and Iberia Lineas Aeres de Espana, S.A. / American Airlines and The TACA Group Reciprocal Code-Share Services Proceeding / American Airlines, Inc. and British Airways Plc

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

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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 Iberia Lineas Aereas de Espana (Exemptions and Statements of Authorization)

OST-97-2965 | OST-97-2966 | Undocketed | October 28, 1997

Joint Reply of American and Iberia

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Codeshare services are explicitly authorized under the U.S.-Spain Air Transport Agreement, and the extrabilateral aspects of the proposed American/Iberia services are modest. Among the U.S. carriers serving Spain, American has a small presence, operating only seven weekly flights. The American/Iberia codeshare will bring substantial benefits to the public by extending the reach of both carriers in the U.S.-Spain (and beyond) markets and by providing greater price, service, and quality options to consumers, consistent with the Department's policy statement on international air transportation.

• Attachment 1: Delta Press Release Regarding Host to 22 Airlines for Summit - October 2, 1997
• Attachment 2: Delta Press Release Regarding Alliance Provides Service to 82 Countries - October 21, 1997

Counsel: American, Carl Nelson, 202-496-5647 / Steptoe Johnson, William Karas, 202-429-6223 for Iberia

American Airlines, Inc. and Iberia Lineas Aereas de Espana, S.A (Exemptions and Statements of Authorization)

OST-97-2965 | OST-97-2966 | Undocketed | October 29, 1997

Answer of Continental Airlines to Motion of American Airlines

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American alleges that Delta's confidential answer to the American/Iberia code-share application used information obtained from confidential documents submitted in connection with the joint application of American and British Airways in violation of the confidentiality procedures established by the Department despite the fact that Delta filed its answer in the American/British Airways docket and served the confidential version only on persons who had submitted confidentiality affidavits in that proceeding. Under these circumstances, American's motion seeks to exalt form over substance, as Delta has demonstrated. More importantly, however, the American motion reveals American's true motive -- preventing a comprehensive review of its worldwide alliance strategy.

Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2500

American Airlines, Inc. and Iberia Lineas Aereas de Espana, S.A. (Exemptions and Statements of Authorization)

OST-97-2965 | OST-97-2966 | Undocketed | November 6, 1997

Response of United Air Lines and Motion for Leave to File

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One important issue that must be investigated in that proceeding is the impact the American/Iberia code share would have on competition between Miami and Central America. American and Iberia note that "so long as Iberia operates Fifth-Freedom services in the local Miami-Central America markets, American and Iberia will remain vigorous competitors for such traffic..." This, of course, begs the question of whether Iberia intends to continue to operate its own services between Miami and Central America. That question is further begged when American states that, "for its part, [American] is in no position to know whether these operations are economically viable or feasible for Iberia, or what Iberia's future plans may be ..." (Joint Reply at 4). Iberia itself is a joint participant in the reply and obviously would possess relevant information on this relevant issue. Notwithstanding Iberia's joint participation, however, that carrier has refused to address its future plans for Miami-Central America service.

Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130

American Airlines, Inc. and Iberia Lineas Aereas de Espana, S.A. / American Airlines, Inc. and The TACA Group Reciprocal Code-Share Services Proceeding / American Airlines, Inc. and British Airways Plc

Order 98-1-18 | OST-97-2965 | OST-97-2966 | Undocketed | OST-96-1700 | OST-97-2058 | OST-97-2054, 2055, 2055, 2057

Order

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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. / Iberia Lineas Aereas de Espana, S.A. / American Airlines, Inc. and Iberia Lineas Aereas de Espana, S.A. - (New Notice of Action Taken)

OST-97-2965 | Filed October 2, 1997 | OST-98-3626 | Filed March 13, 1998 | Undocketed | Filed October 2, 1997
Action Taken April 30, 1998

Notice of Action | Attachment - Authorities Granted to Carriers

Scheduled foreign air transportation of persons, property and mail between (1) New York, Chicago, and San Juan, on the one hand, and Madrid, Spain, on the other; (2) points in the United States, via Madrid, and Alicante, Bilbao, Jerez de La Frontera, La Coruna, Las Palmas, Sevilla, Valencia, and Vigo, Spain; (3) points in the United States, via Madrid, and Marseilles, France and Porto, Portugal. American plans to operate this service under a code-share arrangement with Iberia Lineas Aereas de Espana (Iberia).

Scheduled foreign air transportation of persons, property and mail between Spain and Atlanta, Cleveland, Dallas/Ft. Worth, Denver, Detroit, Las Vegas, Minneapolis, New Orleans, Orlando, Philadelphia, Pittsburgh, Phoenix, San Diego, San Francisco, Seattle, St. Louis, Tampa, and Washington D.C. (through Reagan Washington National Airport). Iberia stated that it would operate these services via its existing U.S. gateways of Miami, New York, and Chicago under a code-share arrangement with American Airlines.

Statement of Authorization for American Airlines (and its regional affiliates Executive Airlines, Flagship Airlines, Simmons Airlines and Wings West Airlines) under Part 207 of the Department's regulations in order to:Display Iberia's "IB" airline designator code on American's and/or American Eagle's flights.

Applicant reps: Carl Nelson, Jr. , 202.496.5647 (AA) , William Karas, 202.429.6223 (Iberia)

Air Nostrum, Lineas Aereas del Mediterraneo, S.A. and Aviacion y Comercio, S.A. / American Airlines, Inc. and Iberia Lineas Aereas de Espana, S.A.

OST-98-3640 | OST-97-2965 | OST-98-3626 | Undocketed | May 15, 1998

Application to Amend Exemption Authority

Air Nostrum and Aviaco hereby apply for amendment of their exemption authority recently issued by Notice of Action Taken (NOAT) on April 30, 1998 (Docket OST 98-3640) so as to authorize them to place American's "AA" designator code on their flights betweenMadrid, Spain, on the one hand, and Barcelona, Malaga and Palma de Mallorca, Spain (the "Spanish markets") on the other.

Answers are due by April 2, 1998

Service List

Counsel:  Steptoe Johnson, William Karas, 202-429-6223

American Airlines, Inc. / Iberia Lineas Aereas de Espana, S.A. / Air Nostrum, Lineas Aereas del Mediterraneo/Aviacion y Comercio, S.A. (Exemptions and Statements of Authorization)

OST-97-2965 | OST-98-3626 | Undocketed | OST-98-3640 | May 20, 1998

Petition of United Air Lines for Review of Staff Action

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Specifically, United requests the Department to review the staff's oral approval of statements of authorization issued to the Spanish carrier applicants to display the code of American Airlines, Inc. ("American") on services between Madrid and Rome, Italy. Such approval is inconsistent with Department precedent and raises a substantial and important question of policy. On review, that action should be reversed and the applications for statements of authorization should be dismissed with respect to Madrid-Rome service.

Counsel:  United and Ginsburg Feldman, Joel Burton, 202-637-9130

American Airlines, Inc. and Iberia Lineas Aereas de Espana, S.A. / Air Nostrum Lineas Aereas del Mediterraneo, S.A. and Aviacion y Comercio, S.A. (Reciprocal Codeshare / Intra-Spain Codeshare)

OST-97-2965 | OST-98-3626 | Undocketed | OST-98-3640 | June 1, 1998

Joint Answer of American, Iberia, Air Nostrum and Aviaco to Petition for Review of United Air Lines

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United's 1994 application to serve eleven points in Italy on a third-country codeshare basis involved a far different situation from the joint applicants, plan to provide codeshare service beyond Madrid to Rome. The dismissal of thatapplication is not a reason to grant United's instant petitionfor review. The staff's action should be upheld.

Counsel:  Steptoe Johnson, William Karas, 202-429-6223 for Iberia, Air Nostrum and Aviaco / American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com

Answer of Northwest Airlines in Support of Petition for Review of United Air Lines

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Northwest asks the Department to review the staff's oral action in approving the statements of authorization for Iberia, Aviaco and Air Nostrum to display the designator code of American in the Madrid-Rome market and, on review, to reverse that action and dismiss the relevant portions of these applications.

Counsel:  Northwest, Megan Rae Poldy

American Airlines, Inc. / Iberia Lineas Aereas de Espana, S.A. / Air Nostrum, Lineas Aereas del Mediterraneo, S.A. / Aviacion y Comercio, S.A.

OST-97-2965 | OST-98-3626 | Undocketed | OST-98-3640 | June 9, 1998

Reply of United Air Lines and Motion for Leave to File

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United hereby gives notice of its intention to seek authority from the government of Italy to code share between points in the U.S. and Rome via points in Germany in the event that American and its Spanish partners are to be permitted to do so via Spain. Should the Department decide not to reverse its approval of the American/Iberia, et al., code shares between the U.S. and Rome via Madrid, United and Lufthansa. should be permitted under their present code-share authority to seek

Counsel:  United and Ginsburg Feldman, Joel Burton, 202-637-9130

American Airlines, Inc. / American Airlines, Inc. and Iberia Lineas Aereas de Espana, S.A. / Delta Air Lines, Inc. / Iberia Lineas Aereas de Espana, S.A. / Northwest Airlines, Inc. / Northwest Airlines, Inc. and Continental Airlines, Inc. / Polar Air Cargo, Inc.

By:  Charles Hunnicutt

American Airlines, Inc. and Iberia Lineas Aereas de Espana, S.A.

By Order 98-12-6, the Department confirmed action of its staff in the above-referenced proceedings with respect to code sharing by American and Iberia taken in a Notice of Action Taken dated April 30, 1998. United Air Lines, Inc., ("United") by Petition dated May 20, 1998, in Dockets OST-97-2965, OST-98-3626 and Undocketed sought review of staff action taken in the April 30, 1998, Notice as it related to the purported approval of code sharing by American between the U. S. and Italy via Spain.

The issues raised by United in its May 20 Petition are not resolved by Order 98-12-6. To the extent necessary, United adopts its May 20 Petition as well as its Reply dated June 9, 1998, in the same proceeding, as its Petition for Review of Order 98-12-6 consistent with the procedures set forth in that order.

Counsel:  Kirkland Ellis, Jeffrey Manley, 202-879-5000

American Airlines, Inc. and Iberia Lineas Aereas de Espana, S.A.

United's petition seeks review of the NOAT's award of authority to Iberia and its affiliated carriers to carry American's, "AA", code on flights between Madrid and Rome on the ground, inter alia, that the authority is outside the scope of the U.S.-Italy bilateral. In a joint answer submitted on June 1, 1998, American and Iberia opposed United's petition. Among other things, they noted the imminence of U.S.-Italy Open Skies negotiations and argued that it would be imprudent and premature to disturb the limited Madrid-Rome codeshare award before the outcome of these negotiations was known. By way of response to United's letter of December 17, American and Iberia hereby adopt their joint answer of June 1, 1998. In addition, they note a material development not mentioned by United in its letter: On November 12, 1998, the U.S. and Italy announced that they had initialed an Open Skies protocol amending the existing U.S.-Italy air transport agreement. Article 9 BIS of the amended agreement authorizes precisely the kind of third-country codesharing to which United has objected as being extra-bilateral. Although not yet in effect, the successful negotiation of the U.S.-Italy Open Skies agreement lends further strength to the previous arguments of American and Iberia against disturbing the NOAT's award of Madrid-Rome codeshare authority, recently confirmed by Order 98-12-6.

Counsel:  Steptoe Johnson, William Karas for Iberia / American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com

American Airlines, Inc.

Hereby applies for renewal of its exemption, granted by Order 98-12-6, December 7, 1998, authorizing Ameri-can to engage in foreign air transportation of persons, property, and mail between New York, Chicago, and San Juan, on the one hand, and Madrid, on the other. American uses the subject authority to conduct codesharing operations under an arrange-ment with Iberia Lineas de Espana, S.A., which was also ap-proved (and for an indefinite term) by Order 98-12-6.

Counsel:  Carl Nelson, Jr., 202.496.5647, carl_nelson@amrcorp.com

American Airlines, Inc.

Scheduled foreign air transportation of persons, property, and mail between New York, Chicago, and San Juan, on the one hand, and Madrid, Spain, on the other. American intends to operate this service under a code-share arrangement with Iberia Lineas de Espana, S.A. American has requested the authority for an indefinite duration.

By:  Paul Gretch

American Airlines, Inc. and Iberia Lineas Aereas de Espana, S.A.

American Airlines, Inc., hereby gives notice that, effective December 1, 2000, American Eagle Airlines, Inc. will cease operations between New York (JFK) and Philadelphia, and thus the designator code of Iberia Lineas Aereas de Espana, S.A. will no longer be displayed in that city-pair.

Counsel:  American, Carl Nelson, 202-496-5647, carl_nelson@aa.com

American Airlines, Inc.

Hereby applies for renewal of its exemption, initially granted by Order 98-12-6, December 7, 1998, and renewed by Notice of Action Taken in this docket on March 19, 1999, authorizing American to engage in foreign air transportation of persons, property, and mail between New York, Chicago, and San Juan, on the one hand, and Madrid, on the other. American uses the subject authority to conduct codesharing operations under an arrangement with Iberia Lineas de Espana, S.A., which was also approved (and for an indefinite term) by Order 98-12-6.

Counsel:  American, Carl Nelson, 202.496.5647, carl_nelson@aa.com

American Airlines, Inc.

Scheduled foreign air transportation of persons, property, and mail between New York, Chicago, and San Juan, on the one hand, and Madrid, Spain, on the other. American intends to operate this service under a code-share arrangement with Iberia Lineas de Espana, S.A. American has requested the authority for an indefinite duration.

By:  Paul Gretch

American Airlines, Inc.

American Airlines, Inc. hereby applies to amend its statements of authorization under 14 CFR Part 212 to engage in codesharing services with the foreign air carriers listed in the above caption' so as explicitly to include affiliates TWA Airlines LLC, American Eagle Airlines, Inc., and Executive Airlines, Inc. d/b/a American Eagle. This amendment would allow each affiliate to display the respective foreign carrier designator code on authorized domestic and transborder code-share routes' where service is operated by the affiliate. Effective December 2, 2001, TWA Airlines LLC will hold itself out to the traveling public as American Airlines. As of that date, the two-letter "TW" designator code will no longer be displayed, and all flights operated by TWA will be shown as "AA*" in computer reservations systems. American Eagle and Executive have long operated exclusively as "AA*."

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

American Airlines, Inc.; Continental Airlines, Inc. and Transbrasil S/A Linhas Aereas and Interbrasil Star; Continental Airlines, Inc.; Continental Airlines, Inc. and Hawaiian Airlines, Inc.; American Airlines, Inc.; Iberia Lineas Aereas de Espana, S.A., Air Nostrum, and Aviaco; United Parcel Service; United Air Lines, Inc., US Airways, Inc. and Allegheny Airlines, Inc.; United Air Lines, Inc., US Airways, Inc. and Allegheny Airlines, Inc.; America West Airlines, Inc.; Delta Air Lines, Inc.

OST-97-2081 - American Airlines, Inc., filed January 17, 1997. Exemption authority to operate scheduled combination services between the United States and several cities in Colombia under a code-sharing arrangement with Aerovias Nacionales de Colombia (AVIANCA). By letter dated March 2, 200 1, American withdrew the exemption application.

OST-01-9950 Continental Airlines, Inc., filed June 18, 2001. Exemption authority to operate scheduled combination services between the United States and several cities in Brazil, Argentina, and Canada under a code-sharing arrangement with Transbrasil S/A Linhas Aereas and Interbrasil Star. The City of Houston and the Greater Houston Partnership and United Air Lines filed pleadings. By letter dated August 17, 2001, Continental withdrew the exemption application.

OST-96-1648 Continental Airlines, Inc., filed October 18, 200 1. Renew for five years certificate authority (Route 733) authorizing scheduled combination services between the United States and the United Kingdom, excluding London's Heathrow and Gatwick airports. On October 23, 200 1, Continental withdrew the application because its certificate authority for Route 733 had in fact been granted for an indefinite duration.

OST-01-10705 Continental Airlines, Inc. and Hawaiian Airlines, Inc. filed September 25, 2001. Allocation of U.S.-France same-country code-share opportunity to display Continental's designator code on Hawaiian's flights between Honolulu and Papeete, Tahiti. On September 27, 2001, Continental and Hawaiian withdrew their joint application.

OST-97-2965 / OST-98-3626 / OST-98-3640 United Air Lines, Inc., filed May 20, 1998. Petition for review of staff action and request that the Department reverse the award of code-share authority to American Airlines and Iberia Lineas Aereas de Espana to the extent that it permitted code-share service between Madrid and Rome (See Notice of Action dated April 30, 1998, in Dockets OST-97-2965 and 98-3626, and Order 98-12-6). United stated that American's proposed service in this market was not consistent with the aviation agreement between the United States and Italy. American and Iberia filed a response. Subsequent to the petition, the United States and Italy signed an open-skies agreement, and U.S. carrier service, including American's service at issue here, is now covered by this more liberal arrangement. United's petition, therefore, is now moot.

OST-00-7633 United Parcel Service Co., filed July 12, 2000. Allocation of five (5) one-way weekly Russia overflight frequencies transiting Tashkent in order to operate freighter service over a Cologne, Germany - Mumbai, India - Singapore - Taipei, Taiwan routing. On July 21, 2000, UPS withdrew the application.

OST-00-8355/OST-00-8356 United Air Lines, Inc.; US Airways, Inc.; and Allegheny Airlines, Inc., filed November 17, 2000. Joint application for (a) approval of a transfer of the international certificate authority held by US Airways and Allegheny to United; and (b) an interim exemption to facilitate the transfer, pending final consummation of the merger of United, US Airways and Allegheny. Continental Airlines, Delta Air Lines, America West Airlines, American Airlines, the Communications Workers of America/AFL-CIO/CLC, and the US Airways Master Executive Council of the Air Line Pilots Association filed answers. On July 27, 2001, the Joint Applicants announced the termination of their merger agreement, and on July 30, 2001, the Joint Applicants filed ajoint motion to withdraw the applications. We grant the motion.

OST-00-7880 America West Airlines, Inc., filed August 31, 2000. Renew statement of authorization to code share with Eva Airways Corporation. On October 30, 1998, the Department granted the application of America West to display EVA's designator code on America West's domestic flights for the carriage of EVA's transpacific traffic (undocketed). The Department granted the application for an indefinite duration, subject to attached conditions. In these circumstances, the renewal application is moot.

OST-97-2803 Delta Air Lines, Inc., filed July 21, 1999. Renew authorization to provide third- country code-share service to Egypt. By Order 2000-10-14, the Department determined that Delta's authorization was available for allocation since Delta proposed to change its code-share partner from Swissair to Air France. Subsequently, by Order 2000-11-2, we selected Delta and Air France for the available authorization (Docket OST-2000-6982). Against this background, Delta's application to renew its authorization in Docket OST-97-2803 is now moot.

By:  Paul Gretch

American Airlines, Inc.

By:  Teresa Bingham

American Airlines, Inc. and Iberia Lineas Aereas de Espana, S.A.

American Airlines, Inc., under 14 CFR Part 212, hereby applies to amend its statement of authorization, granted by Order 98-12-6, December 9, 1998, in order to allow display of the "IB*" designator code of Iberia Lineas Aereas de Espana, S.A. on flights operated by American between New York (JFK) and St. Louis. The proposed implementation date for this addition­al codesharing service is December 9, 2001.

Counsel:  American, Carl Nelson, 202-496-5647, carl_nelson@aa.com

American Airlines, Inc. and Iberia Lineas Aereas de Espana, S.A.

Counsel:  American, Carl Nelson, 202-496-5647, carl_nelson@aa.com

American Airlines, Inc. and Iberia Lineas Aereas de Espana, S.A.

Counsel:  American, Carl Nelson, 202-496-5647, carl_nelson@aa.com

American Airlines, Inc. and Iberia Lineas Aereas de Espana, S.A.

Counsel:  American, Carl Nelson, 202.496.5647, carl_nelson@aa.com

American Airlines, Inc. and Iberia Lineas Aereas de Espana, S.A.

In two recent applications submitted by American Airlines, Inc. for expanded codesharing authorization with Iberia, we inadvertently failed to name TWA Airlines LLC, American Eagle Airlines, Inc., and Executive Airlines, Inc. d/b/a American Eagle as joint applicants. The two applications were in OST-2001-11037 (JFK/ORD-IAD), approved November 29, 2001, and in OST-1997-2965 and undocketed (JFK-STL), approved November 16, 2001.

We hereby request that the referenced approvals be deemed to include American as well as its three affiliates named above, consistent with Department Action in OST-2000-7057, et al. on November 8, 2001, which added the three affiliates to each of American's codesharing authorizations on a blanket basis.

Counsel:  American, Carl Nelson, 202.496.5647, carl_nelson@aa.com

American Airlines, Inc. and Iberia Lineas Aereas de Espana, S.A.

Hereby applies to amend its statement of authorization, granted by Order 98-12-6, December 9, 1998, so as to allow display of the "IB*" designator code of Iberia Lineas Aereas de Espana, S.A. on flights operated by American between Buenos Aires, Argentina and Montevideo, Uruguay. American and Iberia propose to implement such service as soon as all necessary regulatory approvals have been granted. Under this arrangement, passengers traveling between Madrid and Montevideo will connect from Iberia's flights between Madrid and Buenos Aires (under the "IB" code) to American's flights between Buenos Aires and Montevideo (under the "IB*" code). To the extent required, American also seeks authorization to commingle blind sector traffic on its Buenos Aires-Montevideo service.

Counsel:  American, Carl Nelson, 202.496.5647, carl_nelson@aa.com

American Airlines, Inc. and Iberia Lineas Aereas de Espana, S.A.

United requests the deferral of this application until such time as government of Spain grants reciprocal approval to United to operate code-share services over routes other than those agreed in the U.S.-Spain bilateral air services agreement. More specifically, United is interested in code sharing on services operated by Spanair between Paris and Madrid and, separately, on services operated by bmi British midland between London and Madrid. United seeks to place its two-letter "UA" designator code on flights operated by Spanair and bmi, which will connect to United's transatlantic flights between points in the U.S. and London and Paris.

Neither Paris nor London is included in the U.S. carrier route description of the U.S.-Spain bilateral agreement. The Spanish authorities in the past have indicated that they were not prepared to grant extrabilateral approvals for code sharing over such points. See United Consolidated Answer, dated October 17, 1997, in Dockets OST-97-2965/2966, attaching in Exhibit UA-1 a letter from Spain's DGAC dated August 1, 1995, denying United's request to codeshare on bmi services between London and Palma de Mallorca because London was not an intermediate point on the bilaterally agreed U.S. carrier route. The Department in the past recognized this lack of reciprocity when it dismissed similar applications for extrabilateral code-share authority filed by American

Neither Buenos Aires nor Montevideo is a point on the Spanish carrier routes of the U.S.-Spain bilateral. In fact, both of those points are located in countries that are specifically excluded from Spanish carrier routes.

On December 14, 2001, United lodged an application with the government of Spain to allow it to code share on the aforementioned services of Spanair and bmi. If the Spanish authorities approve United's application, United will withdraw its objection to the above-captioned application of American. Absent Spanish government approval of United code shares with Spanair between Paris and Madrid and with bmi between London and Madrid, however, the Department cannot find that reciprocity exists to support the approval of extrabilateral application of American to code share for Iberia between Buenos Aires, Argentina, and Montevideo, Uruguay, and should dismiss this application for the same reason it dismissed applications of American and Iberia for similar extrabilateral authority in Order 98-12-6.

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

American Airlines, Inc. and Iberia Lineas Aereas de Espana, S.A.

In its application, American is seeking authorization to display the "IB*" code of Iberia Lineas Aereas de Espana, S.A. on flights operated by American between Buenos Aires, Argentina and Montevideo, Uruguay for the carriage of passengers in the Madrid-Montevideo market. Such passengers will travel on Iberia between Madrid and Buenos Aires, where they will connect to American's flights between Buenos Aires and Montevideo.

United contends that American's application is extra-bilateral to the U.S.-Spain Air Transport Agreement, and should be deferred until the Government of Spain grants certain extra-bilateral codeshare authority to United, specifically to display the "UA*" code on flights operated by Spanair between Paris and Madrid and on flights operated by British Midland bmi between London and Madrid, both for the purpose of connecting United's transatlantic passengers from U.S. points to Madrid via Paris and London. United thus presents the false premise that because the Government of Spain has not authorized United to engage in extra-bilateral codeshare operations in U.S.-Spain market, there is a failure of reciprocity to support American's request to engage in codeshare operations with Iberia in the Spain-Uruguay market. Spanair, like Iberia, serves between Madrid and Buenos Aires, and United, like American, serves between Buenos Aires and Montevideo. If United had been denied the opportunity to codeshare in the Spain-Uruguay market, its concern would be legitimate. But extra-bilateral codesharing between the U.S. and Spain is not reciprocal to codesharing in a non-U.S. market such as Spain-Uruguay.

If United wishes to codeshare with Spanair between Spain and Montevideo by connecting passengers at Buenos Aires, it should seek to do so, and American would not object. United should not be heard to link its proposal for U.S.-Spain code sharing with American's proposal here. The Department should encourage U.S. carriers in international markets to enter into arrangements that provide traffic support for their services. By gaining codeshare passengers from Iberia for American's Buenos Aires-Montevideo, American will achieve additional revenue and enhance its viability on this segment, thus benefiting passengers in the U.S.-Uruguay market. Accordingly, United's opposition is unwarranted. The Department should grant American's request on an expedited basis.

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

American Airlines, Inc. and Iberia Lineas Aereas de Espana, S.A.

United contingently requests leave to respond in the event that the Department grants American's motion for leave to file its reply. United wishes to respond to American's unprecedented and eccentric notion of what constitutes reciprocity in the context of U.S./Spain international aviation relations. Receipt of United's response will offer the Department a more balanced and complete record on this concept which was raised for the first time in American's unauthorized reply.

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

American Airlines, Inc. and Iberia Lineas Aereas de Espana, S.A.

In its application, American is seeking authorization to display the "IB*" code of Iberia Lineas Aereas de Espana, S.A. on flights operated by American between Buenos Aires, Argentina and Montevideo, Uruguay for the carriage of passengers in the Madrid-Montevideo market. Such passengers will travel on Iberia between Madrid and Buenos Aires, where they will connect to American's flights between Buenos Aires and Montevideo.

United continues to assert that because it has been unable to secure extra-bilateral authority to engage in codesharing services between the U.S. and Madrid via third-country points in Europe, American's application to engage in codeshare operations with Iberia in a non-U.S.-Spain market -between Madrid and Montevideo, Uruguay via Buenos Aires -should be denied.

The Department should reject United's attempted linkage. American's application is entirely unrelated to the U.S.-Spain market which United is seeking to serve via points in Europe. Far from being "unprecedented" and "eccentric" (United response, p. 2), American's position is firmly based on the very different nature of its request and United's. There is no sound reason for the Department to prevent American and Iberia from codesharing in a non-U.S.-Spain market because of issues surrounding United's wholly unrelated proposal to codeshare to Madrid via London and Paris.

As we stated in our reply to United on December 21, 2001, the Department should encourage U.S. carriers in international markets to enter into arrangements that provide traffic support for their services. By gaining codeshare passengers from Iberia for American's Buenos Aires-Montevideo tag, American will achieve additional revenue and enhance its viability on this segment, thus benefiting passengers in the U.S.-Uruguay market.

Counsel:  American, Carl Nelson, 202.496.5647, carl_nelson@aa.com

American Airlines, Inc.

Hereby applies for renewal of its exemption, initially granted by Order 98-12-6, December 7, 1998, and last renewed by Notice of Action Taken in this docket on February 1, 2001, authorizing foreign air transportation of persons, property, and mail between New York, Chicago, and San Juan, on the one hand, and Madrid, on the other. American uses this authority to conduct codesharing operations under an arrange­ment with Iberia Lineas de Espana S.A., which was also approved (for an indefinite term) by Order 98-12-6.

Counsel:  American, Carl Nelson, 202-496-5647, carl.nelson@aa.com

American Airlines, Inc. and Iberia Lineas de Espana, S.A.

Hereby give notice that, effective May 1, 2003, it is terminat­ing display of the "IB*" designator code of Iberia Lineas de Espana, S.A. on flights operated by American Eagle Airlines, Inc. between New York (JFK) and Pittsburgh.

Counsel:  American, Carl Nelson, 202-496-5647, carl.nelson@aa.com

American Airlines, Inc.

Scheduled foreign air transportation of persons, property, and mail between New York, Chicago, and San Juan, on the one hand, and Madrid, Spain, on the other. American intends to operate this service under a code-share arrangement with Iberia Lineas de Espana, S.A. American has requested the authority for an indefinite duration.

By: Paul Gretch

January 10, 2005

Application for Renewal of Exemption

Hereby applies for renewal of its exemption, initially granted by Order 98-12-6, December 7, 1998, and last renewed by Notice of Action Taken in this docket on March 20, 2003, authorizing scheduled foreign air transportation of persons, property, and mail between New York, Chicago, and San Juan, on the one hand, and Madrid, on the other. American uses this authority to conduct codesharing operations under an arrangement with Iberia Lineas de Espana S.A., which was also approved (for an indefinite term) by Order 98-12-6.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com

OST-1997-2965 - Exemption - US-Spain Codesharing with Iberia
OST-2001-11037 - U.S.- Spain Beyond Reciprocal Codesharing Services; Buenos Aires- Montevideo

March 10, 2005

Application of American Airlines for Amended Statement of Authorization

Hereby applies to amend its statement of authorization, initially granted by Order 98-12-6, December 9, 1998, so as to allow display of the designator code of Iberia Lineas Aereas de Espana, S.A. on flights operated by American or its affiliates American Eagle Airlines, Inc. or Executive Airlines, Inc. d/b/a American Eagle between New York and San Juan and between Miami and San Juan, connecting to flights operated by American or Iberia between the United States and Spain. American and Iberia propose to implement such service as soon as all necessary regulatory approvals have been granted.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com

OST-1997-2965 - Exemption - US-Spain Codesharing with Iberia
OST-2001-11037 - U.S.-Spain Beyond Reciprocal Codesharing Services; Buenos Aires-Montevideo

Filed March 10, 2005 | Approved March 23, 2005

Department Action on Application

By: Gerald Caolo

Filed January 10, 2005 | Issued April 14, 2005

Notice of Action Taken

Scheduled foreign air transportation of persons, property, and mail between New York, Chicago, and San Juan, on the one hand, and Madrid, Spain, on the other. American intends to operate this service under a code‑share arrangement with Iberia Lineas de España, S.A. American has requested the authority for an indefinite duration.

By: Paul Gretch

February 7, 2007

Application for Renewal of Exemption

American Airlines, Inc., under 49 USC 40109 and 14 CFR Part 377, hereby applies for renewal of its exemption, last renewed by Notice of Action Taken in this docket on April 14, 2005, authorizing scheduled foreign air transportation of persons, property, and mail between New York, Chicago, and San Juan, on the one hand, and Madrid, on the other. American uses this authority to conduct codeshare operations under an arrangement with Iberia Lineas de Espana S.A., which was approved (for an indefinite term) by Order 1998-12-6, December 3, 1998.

In response to the Department's Notice of August 23, 2005 on streamlining regulatory procedures (OST-2005-22228), American has requested corresponding certificate authority for its U.S.-Spain exemption. See Supplement to Application for Renewal of Route 602, August 26, 2005 (OST-2000-8516). We urge expedited approval of that application to avoid the need for successive renewals in exemption dockets.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com

OST-2001-11037 - American - U.S.-Spain Beyond Reciprocal Codesharing Services with Iberia
OST-1997-2965 - American - Exemption - US-Spain Codesharing with Iberia
OST-2007-27202 - Iberia - Statement of Authorization - Codesharing with American
OST-1998-3626 - Iberia - Exemption - US-Spain Codesharing with American

Filed February 2 and 7, 2007 | Issued March 9, 2007

Notice of Action Taken

American:

• Exemption Renewal of scheduled foreign air transportation of persons, property, and mail between New York, New York; Chicago, Illinois; and San Juan, Puerto Rico, on the one hand, and Madrid, Spain, on the other. American states that it uses the authority to engage in code-sharing services with Iberia Lineas Aéreas de Espana, S.A.
• Amended Statement of Authorization to display Iberia's "IB" designator code on flights operated by American (or its affiliate American Eagle Airlines, Inc.) between Boston, Massachusetts, and Dallas/Ft. Worth, Texas; Los Angeles, California; San Diego, California; San Francisco, California; San Juan, Puerto Rico; St. Louis, Missouri; and Washington, DC (DCA).

Iberia:

• Amended Exemption for scheduled foreign air transportation of persons, property, and mail between any point or points in Spain and Dallas/Ft. Worth, Texas; Los Angeles, California; San Diego, California; San Francisco, California; San Juan, Puerto Rico; and St. Louis, Missouri via its U.S. gateway of Boston, Massachusetts. Iberia states that it will use the authority to code share with American on flights operated by American (or its affiliate American Eagle) between Boston and these other U.S. points.
• Amended Statement of Authorization to Display American's "AA" designator code on Iberia's flights between Madrid, Spain and Boston, Massachusetts.

The above action granting exemption authority to American was effective when taken: March 9, 2007, through March 9, 2009, or until 90 days after final Department action on American's corresponding application for a certificate of public convenience and necessity in Docket OST-2000-8516, whichever occurs earlier.

The above action granting amended exemption authority to Iberia was effective when taken: March 9, 2007, through March 9, 2008.

The above action granting amended statements of authorization to American and Iberia was effective when taken: March 9, 2007, and will remain in effect indefinitely.

By: Paul Gretch

American Airlines, Inc.

March 31, 2008

Re: List of Certificates and Exemptions Superseded by US-EU Open-Skies

American Airlines, Inc., in light of the March 30, 2008 effective date of U.S.-EU open skies, and American's open skies certificate for Route 835, Order 2007-4-2, April 1, 2007, hereby provides a list of its certificates and exemptions that have been superseded and are no longer required. The entries with asterisks have pending renewal applications that can be dismissed.

Certificates:

Route 137, segments 4 (Costa Rica, El Salvador, Guatema Honduras, Nicaragua, Panama); 5 (Manchester U.K., Belgium, Netherlands, Luxembourg, Germany, Switzerland, Finland, Jordan, Denmark, Norway, Sweden); 7 (Korea, Taiwan, Thailand, Singapore, Malaysia, Indonesia); 8 (Chile); Docket 50348
*Route 147, segments 1 (London); 2 (France); 3 (Ireland, Switzerland, Greece, Jordan, Kuwait, Bahrain, Qatar, United Arab Emirates, Oman, Sri Lanka, India, Thailand, Spain, Morocco, Austria, Turkey); 4 (Belgium, Netherlands, Luxembourg, Germany, Sweden); 6 (Denmark and Norway); 7 (Switzerland); DOT-OST-2001-9027
*Route 370 (DFW-London), DOT-OST-1997-2914
*Route 487 (Miami-London), Docket 49861
Route 571 (San Francisco/Los Angeles/Honolulu-Sydney), Docket 49538
Route 576 (Chicago-Prestwick/Glasgow), Docket 49372
*Route 602, segments 1 (Ireland, London, France, Germany, Switzerland, Italy, Greece, Jordan, Kuwait, Bahrain, Qatar, United Arab Emirates, Oman, Sri Lanka, India, Thailand, Portugal, Spain); 2 (London); 3 (Spain, Morocco, Turkey, Austria, Bahrain, Qatar, United Arab Emirates);
unnumbered (Portugal, Spain); DOT-OST-2000-8516
Route 605 (New York-Manchester U.K.), DOT-OST-1995-856
*Route 648 (Raleigh/Durham-London), DOT-OST-1998-3964
Route 658 (U.S.-Canada), Docket 50157
Route 722 (Chicago-Birmingham U.K.), DOT-OST-1996-989
Route 788 (U.S.-Italy), DOT-OST-1999-6085
Route 807 (U.S.-France), DOT-OST-1998-3742

Exemptions:

*U.S.-Belfast/Edinburgh/Leeds/Teesside, Docket 50281
*Chicago-Budapest, DOT-OST-1996-1355
*U.S.-Aberdeen, DOT-OST-1998-4147
*U.S.-Cyprus, DOT-OST-2000 7734
*U.S.-Georgia, DOT-OST-2000 7736
*U.S.-Riga/Tallin, DOT-OST-1998-4522
*U.S.-U.K. (excluding LHR and GTW) , DOT-OST-2005-22198
New York-Budapest (mail), DOT-OST-2006-25399
U.S.-Australia, DOT-OST-2002-12190
U.S.-Peru, DOT-OST-2004-19965
U.S.-Spain, DOT-OST-1997-2965
U.S.-Jordan, DOT-OST-2006-26716
U.S.-Hungary, DOT-OST-2006-26737

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com

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