OST-1998-3622
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OST-1998-3622
OST-1998-3622 - Exemption - Los Angeles/San Francisco-Beijing/Shanghai Codesharing with China Eastern Airlines
March 13, 1998
Approval of the proposed arrangement will also provide American its first on-line access to the People's Republic of China, allowing American to compete with the U.S.-China services operated by Northwest Airlines, Inc. and United Air Lines, Inc. American and China Eastern are planning to implement their codeshare agreement on June 1, 1998.
Answers are due by March 30, 1998
Counsel: American, Carl Nelson, 202-496-5647, car_nelson@amrcorp.com
OST-1998-3622 - Exemption - Los Angeles/San Francisco-Beijing/Shanghai Codesharing with China Eastern Airlines
Undocketed
Filed March 13, 1998 | Action Taken May 8, 1998
Exemption for American under 49 U. S C 40109 to provide the following, service:
Scheduled foreign air transportation of persons, property, and mail between Los Angeles and San Francisco, California, on the one hand, and Beijing and Shanghai, China, on the other. American states that this authority will be used to implement a code-share arrangement between American and China Eastern Airlines Corporation Limited. American plans to begin the proposed services June 1, 1998.
Joint Undocketed Application:
Statement of Authorization for American Airlines, Inc. under Part 207 of the Department's regulations to:Permit American to display the China Eastern "MU" designator code on American's flights between Los Angeles and New York (JFK), Chicago, Dallas/Ft. Worth, and Washington (Dulles); and between San Francisco and Chicago for the carriage of China Eastern's China-U.S. traffic. The parties state that no local traffic will be carried using the China Eastern code between American's U.S. cities.
Statement of Authorization for China Eastern Airlines Corporation Limited, under Part 212 of the Department's regulations to:
Permit China Eastern to display the American "AA" designator code on China Eastern's flights between Los Angeles and Beijing/Shanghai and between San Francisco and Beijing/Shanghai. The parties state that no local traffic will be carried on China Eastern's flights between Beijing and Shanghai using the "AA" code.
Applicant Reps: Carl Nelson, 202-496-5647
| OST-98-3622 | March 3, 1999 |  Application for Renewal of
Exemption |
Los Angeles/San Francisco-Beijing/Shanghai Codesharing with China Eastern |
| Service List |
American Airlines, Inc., under 49 USC 40109, hereby applies for renewal of its exemption, granted by Notice of Action Taken in this docket on May 8, 1998, authorizing American to engage in foreign air transportation of persons, property, and mail between Los Angeles and San Francisco, California, on the one hand, and Beijing and Shanghai, China, on the other. This authority is used for a codesharing arrangement between American and China Eastern Airlines Corporation Limited, which was approved in the same Notice of Action Taken (and for an indefinite duration).
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
| OST-98-3622 | March 18, 1999 | Answer of Northwest
Airlines in Support |
Los Angeles/San Francisco-Beijing/Shanghai; Codesharing With China Eastern |  HTML |
The airlines of developing nations are generally not in a position to offer passengers seamless high-quality service between non-gateway cities in the U.S. and the foreign country. Significant investments must be made to improve customer care facilities, integrate computer systems, and otherwise coordinate operations so that passengers originating in both countries receive the same high-quality service consumers everywhere desire. The investments that U.S. carriers must make in its partner are likely to be far higher when the partner is from a developing nation than it is otherwise. Moreover, obtaining the economic returns forecasted in any particular relationship may be more uncertain as the routes in question are likely to be thinner than other international routes. The approval of exclusivity arrangements in these circumstances is clearly essential if air service to these nations is to grow in the manner desired by all.
Counsel: Northwest, Megan Rae Poldy, 202-842-3193
| OST-98-3622 | March 18, 1999 | Answer of United Air
Lines |
Los Angeles/San Francisco-Beijing/Shanghai; Codesharing With China Eastern | HTML |
United fully supports renewal of American's exemption authority. United also urges that such renewal be unconditioned with respect to the exclusivity term. As United has noted elsewhere, such exclusivity terms should be allowed in order to assure successful promotion and development of code-share arrangements such as the one between American and China Eastern. United is seriously concerned that, notwithstanding unconditional DOT approvals of code-share arrangements such as that between American and China Eastern, the Department has imposed conditions on exclusivity in the virtually contemporaneous approval of the codeshare services of United and All Nippon Airways Co. Ltd.
Counsel: United and Kirkland Ellis, Jeffrey Manely, 202-879-5161, jeffrey_manley@kirkland.com
| OST-98-3622 | March 29, 1999 | Reply of American
Airlines |
Los Angeles/San Francisco-Beijing/Shanghai Codesharing with China Eastern Airlines |
Both Northwest and United support renewal of American's exemption, but use this opportunity to state their position on exclusivity provisions in codeshare agreements between U.S. and foreign carriers. American agrees that the Department should provide clear guidance on this issue. If exclusivity provisions are to be allowed in some circumstances but not in others, the Department should set forth the competition principles that it will apply, and should promptly do so either in a pending proceeding where this issue has been raised, on in a general policy statement under 14 CFR Part 399. Moreover, the Department's policy should be applied to all codeshare arrangements, including ones that have previously been approved, and not simply to new arrangements presented after the Department adopts such a policy.
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
We understand that the Department is considering a significant policy shift in this area - one that could effectively prohibit "exclusivity" in code-sharing arrangements on an across-the-board basis. We are concerned that such an approach would be inconsistent not only with established antitrust principles dealing with nonprice vertical restraints, but also would undermine fundamental competition policies, DOT's own international aviation policy, and the ability of international air carriers to garner important pro-consumer efficiencies.
Because the policy proposals that appear to be pending at DOT would implicate issues fundamental to the concerns of the Department of Justice, as well as the State Department, and because these issues have already been analyzed by those Departments in other contexts, we respectfully urge that each of you coordinate together any shift in policy or practice in this area. To assist in your consideration, we attach a paper describing in general terms the substantive and procedural issues, and legal principles, involved. We believe these should be carefully considered by all of the affected Departments before any action is taken to revise DOT's practice of approving exclusivity in the great majority of code-share applications.
Counsels: Megan Rae Poldy for Northwest, and Kirkland & Ellis, Jeffrey Manley for United
| OST-98-3622 | June 9, 1999 | Notice of Action Taken | Los Angeles/San Francisco-Beijing/Shanghai Codeshare with China Eastern |
By: Paul Gretch
| OST-98-3622 | April 5, 2001 | Application for Renewal of Exemption | Los Angeles/San Francisco- Beijing/Shanghai Codesharing with China Eastern |
| Service List |
Counsel: American, Carl Nelson, 202.496.5647, carl_nelson@aa.com
| OST-98-3622 | Filed April 5, 2001 Issued May 3, 2001 |
Notice of Action Taken | Los Angeles/San Francisco- Beijing/Shanghai Codesharing with China Eastern |
Scheduled foreign air transportation of persons, property, and mail between Los Angeles and San Francisco, California, on the one hand, and Beijing and Shanghai, China, on the other. American states that this authority is used for services provided under a code-sharing arrangement with China Eastern Airlines Corporation on flights operated by China Eastern. American seeks renewal of this exemption for an indefinite duration.
Consistent with our standard practice for this type of application, we granted American exemption authority for a period of two years, and dismissed its request for longer-term authority.
By: Paul Gretch
| OST-98-3622 | February 26, 2003 | Application for Renewal of Exemption | Los Angeles/San Francisco - Beijing/Shanghai Codeshare with China Eastern |
Hereby applies for renewal of its exemption, initially granted by Notice of Action Taken in this docket on June 9, 1999, and renewed for a two-year term on May 3, 2001, authorizing American to engage in scheduled foreign air transportation of persons, property, and mail between Los Angeles and San Francisco, California, on the one hand, and Beijing and Shanghai, China, on the other. This authority is used for a codesharing arrangement between American and China Eastern Airlines Corporation Limited, which was approved by Notice of Action Taken (undocketed) on May 8, 1998 for an indefinite term.
Counsel: Carl Nelson, 202-496-5647, carl.nelson@aa.com
| OST-98-3622 | Filed February 26, 2003 Issued March 17, 2003 |
Notice of Action Taken | Los Angeles/San Francisco - Beijing/Shanghai - Codeshare with China Eastern |
Renew exemption under 49 U.S.C. 40109 to provide the following service: Scheduled foreign air transportation of persons, property, and mail between Los Angeles and San Francisco, California, on the one hand, and Beijing and Shanghai, China, on the other. American states that this authority is used for services provided under a code-sharing arrangement with China Eastern Airlines Corporation on flights operated by China Eastern. American seeks renewal of this exemption for an indefinite duration.
By: Paul Gretch
January 10, 2005
Application for Renewal of Exemption
Hereby applies for renewal of its exemption, most recently renewed by Notice of Action Taken in this docket on March 17, 2003, authorizing American to engage in scheduled foreign air transportation of persons, property, and mail between Los Angeles and San Francisco, California, on the one hand, and Beijing and Shanghai, China, on the other. This authority is used for a codesharing arrangement between American and China Eastern Airlines Corporation Limited which was approved by Notice of Action Taken (undocketed) on May 8, 1998 for an indefinite term.
Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com
Filed January 10, 2005 | Issued May 3, 2005
Scheduled foreign air transportation of persons, property, and mail between Los Angeles and San Francisco, California, on the one hand, and Beijing and Shanghai, China, on the other. American intends to operate this service under a code‑share arrangement with China Eastern Airlines Corporation Limited on flights operated by China Eastern. American has requested the authority for an indefinite duration.
By: Brian Hedberg
February 23, 2007
Application for Renewal of Exemption
American Airlines, Inc., under 49 USC 40109, hereby applies for renewal of its exemption, most recently renewed by Notice of Action Taken in this docket on May 3, 2005, authorizing American to engage in scheduled foreign air transportation of persons, property, and mail between Los Angeles and San Francisco, California, on the one hand, and Beijing and Shanghai, China, on the other. This authority is used for a codesharing arrangement between American and China Eastern Airlines Corporation Limited (AA* on MU), which was approved by Notice of Action Taken (undocketed) on May 8, 1998 for an indefinite term.
In response to the Department's Notice of August 23, 2005 on streamlining regulatory procedures (OST-2005-22228), American has requested corresponding certificate authority. 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
Filed February 23, 2007 | Issued March 19, 2007
Renewal of scheduled foreign air transportation of persons, property, and mail between Los Angeles and San Francisco, California, on the one hand, and Beijing and Shanghai, China, on the other. American states that this authority is used for services provided pursuant to its code-share arrangement with China Eastern Airlines Corporation Limited on flights operated by China Eastern.
By: Paul Gretch
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