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OST-98-3640

Air Nostrum (Lineas Aereas del Mediterraneo, S.A.) / Aviacon y Comercio, S.A. (Codeshare, Spain-US, with American)

OST-98-3640 | March 18, 1998

Joint Application for an Exemption

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Apply for exemption from 49 U.S.C. § 41301 to enable them to bear the "AA" designator code of American Airlines, Inc. on their flights between Madrid, on the one hand, and, on the other, the points in Spain and the European points listed below. AN and AV would provide such codeshare service on American's behalf only as part of a through transatlantic service offering by American between Madrid and the United States.

• Exhibit 1:  Spanish Operating Licenses
• Exhibit 2:  Current Aircraft Fleets
• Exhibit 3:  Current Schedules
• Exhibit 4:  Ownership
• Exhibit 5:  Officers, Directors, and Key Management
• Exhibit 6:  Air Nostrum Annual Report for 1996 | Aviaco Annual Report for 1996
• Exhibit 7:  Certificates of Insurance
• Exhibit 8:  Montreal Agreement Counterparts

Answers are due by April 2, 1998

Service List

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

Iberia Lineas Aereas de Espana, S.A. / Air Nostrum, Lineas Aereas Mediterraneo, S.A. / Aviacion y Comerico, S.A.

OST-98-3626 | OST-98-3640 | March 30, 1998

Consolidated Answer of Delta Air Lines

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The American/Iberia alliance is an integral part of American's strategy to dominate Latin America by consolidating traffic of its code-share partners moving among the United States, Europe and Latin America. Iberia provides service not only between the U.S. and Spain, but also between the United States and Central America. Iberia currently serves six Miami-Central America routes, including Panama City, Managua, Guatemala City, San Jose, San Pedro Sula and San Salvador. These are the same city-pairs in which America plans to form a code-share alliance with the TACA Group.

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

Consolidated Answer of United Air Lines

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United urges the Department to withhold approval of Iberia's request for exemption authority to offer code-share service to Tampa or Washington (DCA). United also urges similar action with respect to any exemption or statement of authorization being granted to Air Nostrum or Aviaco that would allow American to offer code-share service to extrabilateral points in or beyond Spain.

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

Iberia Lineas Aereas de Espana, S.A. / Air Nostrum, Lineas Aereas del Meditterraneo / Aviacion y Commercio, S.A. (Codesharing with American)

OST-98-3626 | OST-98-3640 | April 6, 1998

Consolidated Reply of Iberia, Air Nostrum and Aviaco

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United's position confuses Third/Fourth Freedom codesharing, which is bilaterally authorized under the U.S.-Spain agreement, and "third-country" codesharing, which is not. The extrabilateral authority at issue here involves services that will be operated as an incident to Third and Fourth Freedom services, which constitute the primary subject matter of the bilateral. The extrabilateral aspects are de minimis. Iberia seeks to serve only two additional U.S. points on a Third and Fourth Freedom basis. American seeks to serve eight additional Spanish points on a Third/Fourth Freedom basis and two additional points beyond Spain but only in conjunction with its Third/Fourth Freedom services on agreed routes between the U.S. and Spain.

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

Iberia Lineas Aereas de Espana, S.A. / Air Nostrum, Lineas Aereas del Mediterraneo, S.A. / Aviacion y Comercio, S.A. (Codesharing with American)

OST-98-3626 | OST-98-3640 | April 15, 1998

Response of United Air Lines and Motion for Leave to File

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Iberia has wholly failed to address the issue of reciprocity for the type extrabilateral code sharing authority it requests. It merely repeats its erroneous assertions that thirdcountry carrier code sharing is not covered by the bilateral, an assertion United has already refuted in documents which were served on Iberia. In these circumstances, Iberia's request for extrabilateral code-share authority should be denied for the reasons already cited by United.

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

Air Nostrum, Lineas Aereas del Mediterraneo, S.A. and Aviacion y Comercio, S.A. - (Notice of Action Taken)

OST-98-3640 | Filed March 18, 1998 | Action Taken April 30, 1998

Notice of Action

Exemption from 49 U.S.C. § 41301 to the extent necessary to allow Air Nostrum, Lineas Aéreas del Mediterráneo, S.A (Air Nostrum) and Aviacion y Comercio, S.A. (Aviaco) to display the American Airlines, Inc. (AA) designator code on Air Nostrum's and Aviaco's regional services (a) between Madrid, Spain, on the one hand, and Alicante, Bilboa, Jerez de La Frontera, La Coruna, Las Palmas, Seville, Valencia and Vigo, Spain on the other hand; and (b) between Madrid, Spain, and the European points Geneva, Switzerland; Lisbon and Porto, Portugal; Marseilles and Nice, France; Rome, Italy; and Vienna, Austria.

We granted Air Nostrum and Aviaco authority to display the American Airlines, Inc. (AA) designator code on their regional services between Madrid, Spain, and the European points Lisbon, Portugal; and Rome, Italy.

Applicant representative: William Karas, 202.429.6223

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

Air Nostrum, Lineas Aereas del Mediterraneo, S.A. and Aviacion y Comercio, S.A. (Notice of Action Taken)

OST-98-3640 | Filed May 18, 1998 | Action Taken May 19, 1998

Notice of Action

Exemption from 49 U.S.C. 541301 to the extent necessary to allow Air Nostrum, Lineas .Néreas del Mediterráneo, S.A. (Air Nostrum) and Aviacion y Comercio, S.A. (Aviaco) to display the American Airlines, Inc. designator code on Air Nostrum's and Aviaco's intra-Spain regional services between Madrid, on the one hand, and Barcelona, Malaga, and Palma de Mallorca, on the other.

Applicant Rep:  Benjamin Achenbach

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

Iberia Lineas Aereas de Espana, S.A., Air Nostrum, and Aviaco

Counsel:  Steptoe & Johnson LLP, William Karas for Iberia, 202.429.6223

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

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