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OST-97-3209

Air Liberte S.A. (Exemption and Statement of Authorization, Intra-France Codeshare Operations)

OST-97-3209 | Undocketed | December 8, 1997

Application

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Given that Air Liberté is requesting only limited authority to place American's code on Air Liberté flights within France and not requesting any authority to operate services to or from the United States, Air Liberté submits that there is no basis to apply the Department's policy that a foreign carrier applicant be substantially owned and effectively controlled by citizens of its homeland

Answers are due by December 23, 1997

Service List

Counsel: Boros Garofalo, Don Hainbach, 202-822-9070


Air Liberte S.A. (Exemption, Intra-France Codeshare Operations with American)

OST-97-3209 | Undocketed | December 23, 1997

Joint Answer of Continental Airlines and Continental Micronesia

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Continental and Continental Micronesia oppose the requests of Air Liberté, a second-tier British Airways subsidiary, for authority to code-share with British Airways' mega-alliance partner American. The Department should deny this latest piecemeal attempt by American to build a pre-emptive empire with British Airways, particularly in view of the Department's recent dismissal of three Continental requests for authority to code-share with Air France for want of a new U.S.-France bilateral agreement providing for code-sharing and France's failure to grant Continental Micronesia Guam-Noumea authority.

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

Answer of Delta Air Lines

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The Air Liberté application should be deferred or dismissed until a new bilateral aviation agreement with France is reached authorizing U.S. carriers to engage in same-country and third-country code-share services.

Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060

Answer of Northwest Airlines

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While many, including Northwest, probably would disagree with Air Liberté's positive description of the last round of U.S.-France negotiations, the more important points are that the negotiations are far from being concluded and that the resolution of code-share issues is key to the success of those still ongoing negotiations. Moreover, for several years, Northwest has wanted to provide code-share service to points in France with its third country partner, KLM, but has been blocked by the French government. In view of the historical French attitude to code sharing, the current negotiation of code-share rights and the absence of an intergovernmental agreement governing even the most basic aviation rights, it would be totally inappropriate to provide valuable new code-share authority to a French airline.

Counsel: Northwest, Megan Rae Poldy, 202-842-3193

Answer of United Air Lines

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Air Liberté's application cannot be granted under principles of comity and reciprocity. The government of France has refused to approve code shares involving U.S. carriers. United has applied to code share with Lufthansa German Airlines to points in Germany via France as well as to points in France via Germany. France has refused to approve these services. In addition, United has code share agreements with Thai Airlines International that involve connections in France to points in Thailand and with British Midland Airways that involve connections in the U.K. to points in France. Aside, however, from its code share with British Midland to a single point in France (Nice), which was approved prior to termination of the U.S./France bilateral agreement, United has been unable to obtain approval by France of these code-share services.

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

Answer of US Airways

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US Airways has an application pending for exemption authority to operate a single daily roundtrip flight between Pittsburgh and Paris. US Airways, like Air Liberté, seeks approval on the basis of comity and reciprocity pending conclusion of a new bilateral agreement. Thus, US Airways requests the Department to ascertain whether the Government of France is prepared to grant reciprocal approval of US Airways' pending proposal for one additional flight pending a new bilateral. Absent such willingness on the part of France, there is no basis of comity and reciprocity on which to grant early approval of Air Liberté's application.

Counsel: US Airways and Zuckert Scoutt, Richard Mathias, 202-298-8660


Air Liberte S.A. (Exemption and Intra-France Codeshare Operations with American)

OST-97-3209 | Undocketed | January 6, 1998

Joint Consolidated Answer of Air Liberte and American Airlines

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In contrast to the services described above, the authority requested by Air Liberté is extraordinarily limited. Air Liberté is not requesting authority to serve the United States. Neither is it requesting authority to operate international code share service or authority to place its designator code on flights operated by a U.S. carrier within the United States. Air Liberté, a French carrier, is requesting only the right to place American's "AA" designator code on domestic flights already operated by Air Liberté entirely within France. Air Liberté respectfully submits that the objecting carriers' inability to inaugurate the third country code share or third and fourth freedom services described in their respective answers does not compel the conclusion that comity and reciprocity do not support the more limited Air Liberté request for authority to place America's designator code on domestic flights operated by Air Liberté within its home country. That is especially true given the significant benefits that would accrue to Air Liberté's U.S. carrier code share partner -- American Airlines.

Counsel:  Boros Garofalo, Don Hainbach, 202-822-9070 for Air Liberte / American, Carl Nelson, 202-496-5647


Air Liberte S.A. (Exemption and Statements of Authorization, Intra-France Codeshare with American)

OST-97-3209 | Undocketed | January 15, 1998

Joint Surreply of Continental and Continental Mircronesia and Motion for Leave to File and Unauthorized Document

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The Department should halt American's divide and conquer strategy of empire-building through interrelated code-shares and consider simultaneously American's pending applications to code-share in U.S.-Europe markets with Air Liberté and its parent British Airways or dismiss Air Liberté's application immediately. There is no basis for approving the requests of American and Air Liberté in any event unless the Department also permits Continental and Air France to conduct similar intra-France and third-country code sharing and France permits Continental Micronesia to operate Guam-Noumea flights.

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


Air Liberte S.A. (Exemption and Statement of Authorization, Intra-France Codeshare with American)

OST-97-3209 | Undocketed | January 27, 1998

Joint Answer of Air Liberte and American Airlines

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Air Liberté S.A. and American Airlines, Inc. urge the Department to deny the motion for leave to file an unauthorized document submitted by Continental and Continental Micronesia. The joint surreply primarily repeats and restates arguments already made in the Continental/Continental Micronesia answer filed on December 23 and its acceptance would serve no useful purpose.

In the interest of avoiding further repetitive pleadings, Air Liberté and American will not file a response to the joint surreply. However, that decision should not be construed as reflecting agreement with any portion of the surreply and Air Liberté and American rely on § 302.6(b) of the Department's procedural regulations for the proposition that "Where a reply to an answer, or any further responsive document is not fileable, all new matter contained in such answer [or further responsive document] shall be deemed controverted."

Counsel:  American, Carl Nelson, 202-496-5647 / Boros Garofalo, Don Hainbach, 202-822-9070 for Air Liberte


Air Liberte S.A. (Exemption, Intra-France Codeshare with American)

OST-97-3209 | February 18, 1998

Comments of British Midland and Motion for Leave to File

British Midland has an interest in the outcome of the Department's action on Air Liberté's application and requests leave to file its comments after the due date has expired in circumstances where it was not served with official notice and its failure to file on a timely basis is due to excusable neglect.

Attachment:  Letter from British Midland to DOT

Counsel:  Ginsburg Feldman, Jeffrey Manley, 202-637-9057


Air Liberte S.A. (Notice of Action Taken)

OST-97-3209 | Filed December 8, 1997 | Action Taken April 29, 1998

Notice of Action

we concluded that waiver of our standard requirement that substantial ownership and effective control of a foreign carrier rest in the hands of citizens of its homeland was warranted. We further determined that the concerns raised by CO/CMI regarding other alliances involving American Airlines did not, in the circumstances presented, warrant our undertaking the review it proposed or otherwise delaying award of the requested authority. Regarding CMI's concern about its proposed Guam-Noumea services, we noted that services between the United States and French territories are the subject of ongoing negotiations with the Government of France, and we found that it would not be consistent with the public interest to withhold the already bilaterally-agreed authority at issue here pending completion of that process. Finally, regarding approval of a CO-Air France code share, and any other code-share applications, we noted that we are aware of the MOC provisions on code sharing and we made clear that we fully intend to act consistently with them.

Applicant Rep:  Don Hainbach, 202-822-9070


Various Foreign Air Carriers (Order Confirming Notices of Action Taken)

Order 98-7-13 | Issued July 21, 1998 | Served July 27, 1998

Order

By:  Paul Gretch


Air Liberte, S.A.

OST-97-3209 April 28, 1999 Renewal Application Exemption and Statement of Authorization - Intra-France Codeshare Operations with American Airlines
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Permit Air Liberte to continue to display the "AA" designator code of American Airlines on flights operated by Air Liberte between Paris and Bordeaux, Montpellier, Nice, Strasbourg, Toulouse, Annecy, Brive, Carcassonne, Figari, La Rochelle, Lannion, Metz/Nancy/Lorraine, Nantes, Perpignan, Rodez, and Toulon/Hyers.

Counsel:  Boros Garofalo, Don Hainbach, 202-822-9070

Air Liberte S.A., Continental Airlines, Inc. & KLM uk Limited, Royal Air Maroc, Van Gaever & Co. N.V. d/b/a VG Airlines

Issued April 22, 2003

OST-97-3209 - Air Liberte Codeshare with American
OST-02-12520 - Continental and KLM uk - Netherlands-Third Countries Codeshare
OST-98-4294 - Royal Air Maroc - Morocco-US Codeshare with TWA
OST-02-12135 - VG Airlines - Belgium-US

Notice of Action Taken

OST-97-3209 Air Liberté S.A., filed April 28, 1999. Renew exemption from 49 U.S.C. 41301 and statement of authorization pursuant to 14 CFR 212 of the Department's regulations to display the airline designator code of American Airlines, Inc., on certain intra-France flights operated by Air Liberté. Information available to the Department indicates that the applicant has no plans to prosecute the application.

OST-2002-12520 Continental Airlines, Inc., & KLM uk Limited, filed June 13, 2002. Exemption from 49 U.S.C. 41301 and statement of authorization pursuant to 14 CFR 212 of the Department's regulations to to display the airline designator code of Continental on flights operated by KLM uk between the Netherlands and third countries. On March 5, 2003, the applicants withdrew their application.

OST-98-4294 Royal Air Maroc, filed October 14, 1999. Renew exemption from 49 U.S.C. 41301 to conduct scheduled foreign air transportation of persons, property and mail between Morocco and named U.S. points pursuant to a code-share agreement with Trans World Airlines, Inc. Information available to the Department indicates that the applicant has no plans to prosecute the application.

OST-2002- 12135 Van Gaever & Co. N.V. d/b/a VG Airlines, filed April 16, 2002. Foreign air carrier permit pursuant to 49 U.S.C. 41302 to conduct charter foreign air transportation between Belgium and the United States, and other charters pursuant to 14 CFR 212 of the Department's regulations. Information available to the Department indicates that the applicant has no plans to prosecute the application.

By: Paul Gretch


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