ost995392

OST-99-5392

Continental Airlines, Inc.

OST-99-5392	March 18, 1999	Application for an Exemption HTML	US-Saudi Arabia Codeshare with Air France
		Service List

Once approved, the proposed Continental/Air France service between the United States and Saudi Arabia will provide significant benefits to the public. Continental will be able to offer U.S.-Saudi Arabia service for the first time and increase the travel options available to the U.S. traveling public. The U.S.-Saudi Arabia market is presently dominated by foreign flag carriers, and Continental's service will give U.S. passengers an additional option for service to Saudi Arabia. Benefits of the code-share will include one-stop check-in, frequent flyer program enhancements, improved interline services for baggage and more convenient, coordinated connections for U.S.-Saudi Arabia passengers at Continental's Newark and Houston hubs. In sum, the new travel options Continental can offer through this arrangement, combined with the efficiency of code-sharing on Air France operations, will introduce Continental as a new competitor on U.S.-Saudi Arabia routes. Continental asks the Department to grant itsapplication for an exemption under 49 U.S.C. § 40109 and Rule 401 of the Department's Rules of Practice so Continental can offer code-share services between Houston/Newark and Jeddah/Riyadh through Paris in cooperation with Air France.

Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2615, rbkeiner@cromor.com

Continental Airlines, Inc.

OST-99-5392

April 2, 1999

Answer of Northwest

US-Saudi Arabia Codeshare with Air France

Northwest has no objection to the granting of Continental's exemption application to offer third country codeshare service to Saudi Arabia so long as such approval does not prejudice Northwest's ability to offer code-share service in that market. Northwest urges the U.S. Government to continue to pursue sufficient liberalization of the U.S.-Saudi Arabia Air Transport Agreement to satisfy the service needs of all U.S. carriers in the U.S.-Saudi Arabia market.

Counsel: Megan Rae Poldy for Northwest, 202.842.3193

OST-99-5392

April 2, 1999

Answer of United Air Lines

US-Saudi Arabia Codeshare with Air France

United has no objection to the grant of Continental’s application so long as that does not prejudice United’s ability to implement its long-deferred code-share service to Saudi Arabia with Lufthansa. As Continental correctly notes, United is serving Saudi Arabia under a blocked-space/code-share arrangement with Saudi Arabian Airlines. That service, however, involves connections only in the U.S., with Saudia operating the transatlantic portion of the flights. United would prefer to offer connections in Europe as well, to services of both Lufthansa and Saudia. Until an expansion of the U.S./Saudi Arabian bilateral agreement has been agreed, however, such European connections will remain problematic.

Counsel: Kirkland & Ellis, Jeffrey Manley

Continental Airlines, Inc.

OST-99-5392

August 19, 1999

Application for Leave to Withdrawal

U.S.-Saudi Arabia

Continental moves for leave to withdraw its application for U.S.-Saudi Arabia exemption authority to codeshare with Air France.

Counsel: Continental, Crowell Moring, Bruce Keiner, 202.624.2500

American Airlines, Inc./ American Trans Air, Inc./ Continental Airlines, Inc./ Delta Air Lines, Inc./ DHL Airways, Inc./ Gemini Air Cargo, Inc.

Order 00-1-19 OST-95-520 OST-97-2944 OST-97-3289 OST-97-3218 OST-99-5463 OST-99-5392 Docket 48574	Issued January 24, 2000 Served January 26, 2000	Order Dismissing Application	New York-Shannon-Riga; U.S. - Los Mochis, Mexico; Atlanta/New York-South America; U.S.- Mexico; Bahrain via Brussels, Belgium; Los Angeles- Honolulu-Nadi- Sydney;
		Appendix: Descriptions of Applications

By: Paul Gretch