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Iberian Lineas Aereas de Espana, S.A. (Exemption, US-Spain Codesharing with American)
OST-97-2966 | October 2, 1997
Applies for exemption authority, pursuant to 49 USC § 40109, in order to engage in the foreign air transportation of persons, property and mail from Spain to Baltimore/Washington, D.C. International Airport ("BWI") via New York ("JFK"). This authority is needed to implement fully the codeshare agreement between Iberia and American Airlines, Inc.
Answers are due by October 17, 1997
Counsel: Steptoe Johnson, William Karas, 202-429-6223
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 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
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.
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
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
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
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
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