ost983322

OST-98-3322

United Air Lines, Inc. and Compania Mexicana de Aviacion, S.A. de C.V. (US-Mexcio-Central/South America Codesharing)

OST-98-3322 | January 12, 1998

Joint Application

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United and Mexicana now wish to extend their codeshare services to additional markets in Central and South America served by Mexicana beyond Mexico City. United plans to code share on Mexicana's services operated between Mexico City and Guatemala City, San Jose (Costa Rica), Panama City, Bogota, Caracas, Lima, Santiago, and Buenos Aires.

Service List

Counsel: Squire Sanders, Robert Papkin, 202-626-6601 for Mexicana / United and Ginsburg Feldman, Joel Burton, 202-637-9130

United Air Lines, Inc. and Compania Mexicana de Aviacion, S.A. de C.V. (US-Mexico-Central/South America Codesharing)

OST-98-3322 | January 22, 1998

Re: Continental Intends to Answer on January 27, 1998

Counsel: Crowell Moring, Steven Mirmina, 202-624-2817

United Air Lines, Inc. and Compania Mexicana de Aviacion, S.A. de C.V. (US-Mexico-Central/South America Codesahring)

OST-98-3322 | January 27, 1998

Answer of American Airlines

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On May 7, 1997, American and Aero California filed applications for authority (OST-97-2477, OST-97-2481, and undocketed) to engage in codeshare services in various U.S.-Mexico city-pair markets. By Order 97-7-31, July 29, 1997, the Department granted those applications in part (as well as certain codeshare requests by United/Mexicana and Delta/Aeromexico), but deferred action where U.S. carrier designations are mutually exclusive with other pending applications and "while we attempt to obtain additional designations for the proposed code-share services" (p. 7). On September 30, 1997, American and Aero California filed a joint application (undocketed) for an amended statement of authorization for additional U.S.-Mexico codeshare city-pairs. That application is also pending.

In these circumstances, the latest United/Mexicana application should be considered after the Department has granted the American/Aero California applications submitted in May and September.

Counsel: American, Carl Nelson, 202-496-5647

Answer of Continental Airlines

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The Department should: (1) issue a notice soliciting applications for beyond-Mexico authority where third-country codesharing is expressly permitted; (2) hold a comparative carrier selection proceeding to award the Mexico-Central America authority; and (3) dismiss the United/Mexicana requests to code-share at the South American countries which have no bilateral provisions authorizing third-country code-sharing in force.

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

United Air Lines, Inc. and Compania Mexicana de Aviacion, S.A. de C.V. (US-Mexico-Central/South America Codesharing)

OST-98-3322 | February 5, 1998

Reply of United Air Lines

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There is, in fact, no mutual exclusivity so far as the United/Mexicana application is concerned. United is already designated on U.S. carrier Route l.c of the U.S./Mexico agreement which allows services beyond Mexico City to all points in Central America. The Department has previously concluded that the U.S./Mexico "agreement does not limit the number of carriers that can be designated for beyond service over Route l.c. provided that no more than one airline is designated for each city-pair segment." Order 92-5-16 at 4. United is already authorized and designated on that route for services beyond Mexico City in conjunction with the Los Angeles-Mexico City and Washington-Mexico City city pairs. The other U.S. gateways cited by Continental (Chicago, Miami and San Francisco) are not named points on Route 1.c that are eligible for service beyond Mexico City. Nor, to the extent it may be relevant, are they named points on Route l.b which contains more limited beyond rights.

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