OST-2001-10417 - Delta and Alitalia - US-Italy Blanket Statements of Authorization

Delta requests a statement of authorization to display Alitalia's "AZ" designator code on flights operated by Delta (1) between any point or points in the United States and any point or points in Italy (either nonstop or via intermediate points), (2) between any points in the United States in conjunction with foreign air transportation services held out by Alitalia, and (3) between any point or points in the United States or Italy and any point or points in any third country;

ASA requests a statement of authorization to display Alitalia's "AZ" designator code on flights operated by ASA (1) between any points in the United States in conjunction with foreign air transportation services held out by Alitalia, and (2) between any point or points in the United States and any point or points in any third country;

Comair requests a statement of authorization to display Alitalia's "AZ" designator code on flights operated by Comair (1) between any points in the United States in conjunction with foreign air transportation services held out by Alitalia, and (2) between any point or points in the United States and any point or points in any third country;

Alitalia requests a statement of authorization to display Delta's "DL" designator code on flights operated by Alitalia (1) between any point or points in Italy and any point or points in the United States (either nonstop or via intermediate points), (2) between any points in Italy, and (3) between any point or points in Italy or the United States and any point or points in any third country;

Alitalia Team requests a statement of authorization to display Delta's "DL" designator code on flights operated by Alitalia Team (1) between any point or points in Italy and any point or points in the United States (either nonstop or via intermediate points), (2) between any points in Italy, and (3) between any point or points in Italy or the United States and any point or points in any third country;

Alitalia Express requests a statement of authorization to display Delta's "DL" designator code on flights operated by Alitalia Express (1) between any points in Italy, and (2) between any point or points in Italy and any point or points in any third country; and

Eurofly requests a statement of authorization to display Delta's "DL" designator code on flights operated by Eurofly (1) between any point or points in Italy and any point or points in the United States (either nonstop or via intermediate points), (2) between any points in Italy, and (3) between any point or points in Italy or the United States and any point or points in any third country.

The agreement contemplates that the Joint Applicants would seek to implement future codeshare services to Cairo, Istanbul and Tel Aviv. The Joint Applicants recognize that services to any countries where codeshare opportunities are restricted would be contingent upon future carrier selection proceedings, and that the instant application affords them no priority or advantage.

Counsel: Zuckert Scoutt, Richard Mathais, 202.298.8660 and Shaw Pittman, Alexander Van der Bellen, 202.663.8060

United points out that the joint application seeks authority to authorize codeshare services to points in France on Alitalia via connections at points in Italy. Open skies negotiations between the United States and France will be held in September and the joint applicants anticipate that an open skies agreement between the United States and France will shortly be consummated. When the open skies agreement becomes effective, there would no longer be any limitations with respect to third country codeshare services and therefore, the authority requested in the joint application with respect to third country codeshare service to France via Italy would be fully authorized under both the Italy and France bilateral agreements.

In the interim, Northwest and Alitalia have announced that effective October 28, 2001, they will terminate their alliance and the codeshare relationship. The DOT could switch the Northwest-Alitalia April 1999 selection with United-SAS, freeing up the April 2001 designation for an additional (i.e. fourth) U.S. carrier, which would permit Delta to conduct third country code share service to France under its codeshare arrangement with Alitalia.' However, to the extent that the DOT determines that the termination of the Northwest-Alitalia third country codeshare service does not provide an opportunity for Delta-Alitalia to offer third country codeshare France service, then the Department should defer action on that portion of the Joint Application until the open skies agreement becomes effective or the third country codeshare issue is otherwise resolved.

Counsel: Zuckert Scoutt, Richard Mathais, 202.298.8660 and Shaw Pittman, Robert Cohn, 202.663.8060

Counsel: Zuckert Scoutt, Richard Mathais, 202.298.8660 and Shaw Pittman, Alexander Van der Bellen, 202.663.

Hereby notify the Department that the carriers plan to offer additional Delta-operated codeshare services. (1) Delta and Alitalia plan to utilize Alitalia's additional U.S. gateways of Chicago, Los Angeles, Miami, Newark and San Francisco to offer alternative routings to the previously authorized connecting service points listed in Exhibit A to the Joint Application; (2) the Joint Applicants also plan to offer Delta-operated connecting service to Honolulu, Hawaii, as an additional U.S. service point.

Counsel: Zuckert Scoutt, Richard Mathais, 202.298.8660 and Shaw Pittman, Robert Cohn, 202.663.8060

Pursuant to the blanket statements of authorization, notifying the Department that, beginning on or about January 13, 2002, the carriers plan to offer connecting codeshare service displaying Alitalia's "AZ" designator code on Delta/Delta Connection flights to additional U.S. points.

Hereby notify the Department that on or about May 2, 2002, the carriers plan to begin third-country codeshare service to India by displaying Delta's "DL" designator code on flights operated by Alitalia Team between Milan, Italy and Mumbai, India.

Counsel: Zuckert Scoutt, Richard Mathais, 202.298.8660 and Shaw Pittman, Robert Cohn, 202.663.8060

Delta plans to list its "DL" designator code on flights operated by Alitalia’s approved wet lease subsidiaries between Milan/Rome/Venice and the following points in third countries:

Delta is concurrently applying for exemption authority to serve Algiers and will defer implementation of that service until its exemption is approved. Delta already holds underlying economic authority for the other 30-day notice points.

Pursuant to an authorization issued on April 13, 2001, Docket OST-2001-9224, all Alitalia services to North America were operated under a wet lease with Alitalia Team. Subsequently, in granting the blanket statements of authorization for codesharing between Alitalia, and its affiliates, on the one hand, and Delta Air Lines, Inc. and its affiliates, on the other, the Department limited Alitalia's codeshare authority to operations performed on a wet lease basis by Alitalia Team or Alitalia Express. The basis for that restriction was that the parent company was not at that time performing the operations. Alitalia has now changed its corporate structure to eliminate the Alitalia Team subsidiary by merging it into the parent company. Alitalia itself has resumed its role as the operating company and, accordingly, the restriction should be removed.

Beginning or about April 1, 2003, Delta plans to display Alitalia's code on the following routes:

Counsel: Zuckert Scoutt, Richard Mathias, 202-298-8660 for Alitalia / Shaw Pittman, Robert Cohn, 202-663-8060 for Delta

Beginning or about July 17, 2003, the carriers plan to display Delta's designator code on flights operated by Alitalia between Milan, Italy and Tel Aviv, Israel.

Beginning on or about October 1, 2003, the carriers plan to display Delta's designator code on flights operated by Alitalia between Rome, Italy and Tel Aviv, Israel.

Counsel: Delta and Shaw Pittman, Robert cohn, 202-663-8060 / Zuckert Scoutt, Richard Mathias, 202-298-8660

Accordingly, the Department is required to hold a carrier-selection proceeding to choose between American/BA and Delta/Alitalia. See Department Action, OST-2001-10417, October 26, 2001, granting blanket codesharing authority to Delta and Alitalia but stating, in condition (C), that nothing in that award should be construed as conferring upon Delta any limitedentry rights "unless and until the Department has completed any necessary carrier selection procedures to determine which carrier(s) should be authorized to exercise such rights." In that proceeding, American will show why it should be chosen over Delta for the remaining third-country codeshare opportunity to serve Israel. Delta already serves Israel under an extensive and reciprocal codesharing arrangement with El Al. In addition, Delta is closely allied with Northwest Airlines, which serves Israel via Amsterdam under a codeshare arrangement with KLM. American operates from five U.S. gateways (Boston, Chicago, Los Angeles, Miami, and New York) to its proposed connect point at London Heathrow for onward service to Israel on BA, whereas Delta operates from only two U.S. gateways (Atlanta and New York) to Italy for onward connections on Alitalia. Because American does not codeshare with BA on transatlantic segments, all of the transatlantic long-haul flying on AA/AA* routings to Israel via London will be operated by American, thus maximizing the benefits of this opportunity for U.S. interests.

Pursuant to the blanket statement of authorization approved by Department Actions on Application in the above-captioned docket, Delta and Alitalia hereby notify the Department of additional Alitalia-operated codeshare services to begin on or about August 15, 2003, between Alitalia's Italy gateways of Rome, Venice and Milan, on the one hand, and Paris, France, on the other hand.

Counsel: Zuckert Scoutt, Richard Mathias, 202-298-8660 for Alitalia / Shaw Pittman, Robert Cohn, 202-663-8060 for Delta

Pursuant to the blanket statement of authorization approved by Department Action on Application in the above‑captioned docket (October 26, 2001), Delta and Alitalia hereby notify the Department of additional Alitalia operated codeshare services. Beginning or about May 1, 2004, Alitalia plans to display Delta's code on the Milan (MXP) ‑ Washington (lAD) route. In addition, the carriers may also codeshare on Delta flights to previously authorized service points beyond/behind the new Washington gateway.

Counsel: Zuckert Scoutt, Richard Mathias, 202-298-8660 for Alitalia / Delta and Shaw Pittman, Robert Cohn, 202-663-8060

Pursuant to the blanket statement of authorization approved by the Department in the above‑captioned docket, Delta and Alitalia hereby inform the Department that, due to the planned temporary closure of the Bologna (BLQ) airport, Delta plans to begin offering codeshare service on Alitalia flights to Rimini, Italy (RMI) in lieu of BLQ on or about May 2, 2004. The carriers intend to resume service to BLQ upon completion of the scheduled construction activities at that airport.

Counsel: Zuckert Scoutt, Richard Mathias, 202-298-8660 for Alitalia / Delta and Shaw Pittman, Robert Cohn, 202-663-8060

Hereby notify the Department that the carriers plan to display Delta's designator code on flights operated by Alitalia between Delta's authorized gateways in Italy and the following points: Budapest, Hungary Delhi, India Zagreb, Croatia. The Joint Applicants plan to begin offering the new codeshare services no earlier than 30 days from the date of this notice.

Counsel: Zuckert Scoutt, Richard Mathias, 202-298-8660 for Alitalia / Delta and Hogan & Hartson, Robert Cohn, 202-637-4999

The Department has deferred action on the Joint Applicants' August 14, 2001 application to the extent that it requested authority to provide third-country codeshare service to Belgrade, Serbia and Montenegro. The Joint Applicants hereby request that the Department take immediate action on that deferred portion of the Joint Application to allow Delta's designator code to be displayed on Alitalia flights between Milan and Belgrade.

The deferral of action on the Joint Applicants' request to serve Belgrade was based on the Department's "current policy concerning authorization of services involving Belgrade." The Department's policy concerning Belgrade, however, has clearly changed. At least two other U.S. air carriers, in conjunction with their foreign partners, have subsequently notified the Department of their plans to introduce third-country codeshare service to Belgrade under blanket codeshare statements of authorization, and the Department has not taken any action to prohibit the implementation of such services. See United/Lufthansa letter dated August 20, 2003 (Undocketed), and American/British Airways letter dated January 29, 2004 (Docket OST-2002-13861). Moreover, the Department has authorized Jugoslovenski Aerotransport (JAT) to engage in scheduled foreign air transportation between Belgrade and New York pursuant to a codeshare arrangement with Uzbekistan Airways. See Notice of Action Taken dated October 2, 2003 (Docket OST-1996-1182).

It would be unfair for the Department to continue to prohibit Delta and Alitalia from providing service to Belgrade, while allowing other U.S. carriers and the flag carrier of Serbia and Montenegro to provide codeshare service to this point. Accordingly, the Joint Applicants urge the Department to take immediate action to remove the restriction on service to Belgrade (and all other points in the former Yugoslavia), so that Delta may promptly introduce its proposed new competitive U.S.-flag service.

Counsel: Zuckert Scoutt, Richard Mathias, 202-298-8660 for Alitalia / Delta and Hogan & Hartson, Robert Cohn, 202-637-4999

Delta Air Lines, Inc. and Alitalia-Linee Aeree Italiane S.p.A. hereby notify the Department that the carriers plan to display Alitalia's designator code on new flights operated by Delta between Atlanta, GA and Venice, Italy beginning on or about June 6, 2005.

Counsel: Alitalia - Zuckert Scoutt, Richard Mathias, 202-692-8660;
Delta - Hogan & Hartson, Robert Cohn, 202-637-4999/8382

Delta Air Lines, Inc., Comair, Inc., Atlantic Southeast Airlines, Inc. and Alitalia-Linee Aeree Italiane-S.p.A. hereby notify the Department that the carriers plan to display Alitalia's designator code on flights operated by Delta, Comair and ASA between Alitalia's authorized gateways in the United States and the following points:

The Joint Applicants plan to begin offering the new codeshare services no earlier than 30 days from the date of this notice.

Counsel: Alitalia - Zuckert Scoutt, Richard Mathias, 202-298-8660 / Delta - Hogan & Hartson, Robert Cohn, 202-637-4999

Delta Air Lines, Inc., Comair, Inc., Atlantic Southeast Airlines, Inc. and Alitalia-Linee Aeree Italiane-S.p.A. hereby notify the Department that on or after 30 days from the date of this notice Alitalia's "AZ" designator code will be displayed on flights operated by Delta between Atlanta and San Pedro Sula, Honduras.

Counsel: Alitalia - Zuckert Scoutt, Richard Mathias, 202-298-8660 / Delta - Hogan & Hartson, Robert Cohn, 202-637-4999

By notice of action taken dated October 26, 2001, in the above docket, we deferred action on this application to the extent it requested authority to provide code-share services involving Serbia and Montenegro (formerly Yugoslavia). By motion filed March 30, 2005, the joint applicants request, based on changed circumstances since the time of our deferral, that we act on the deferred portion of the application. Their motion was unopposed. We hereby grant the motion and approve the application to the extent that it includes code-share services involving Serbia and Montenegro (formerly Yugoslavia), under assigned authority.

This action is subject to the conditions attached. Persons entitled to petition the Department for review of this action under the Department's regulations, 14 CFR 385.30, should file their petitions within seven days of the date of this action. This action is effective immediately, and the filing of a petition for review will not alter its effectiveness.

We continue to defer action on the application to the extent that it includes code-share services involving Syria.

Delta Air Lines, Inc., Comair, Inc., Atlantic Southeast Airlines, Inc. and Alitalia-Linee Aeree Italiane-S.p.A. hereby notify the Department that the carriers plan to display Alitalia's designator code on flights operated by Delta, Comair and/or ASA between Alitalia's authorized gateways in the United States and Montreal, Canada. The Joint Applicants plan to begin offering codeshare services to Montreal no earlier than 30 days from the date of this notice.

Counsel: Zuckert Scoutt, Richard Mathias, 202-298-8660 for Alitalia / Hogan & Hartson, Robert Cohn, 202-637-4999 for Delta

Hereby notify the Department that the carriers plan to display Alitalia's designator code on flights operated by Delta between New York, NY (JFK) and Pisa/Florence, Italy (PSA) beginning on or about May 31, 2007.

Delta and Alitalia further notify the Department that the carriers will no longer display Delta's designator code on flights operated by Alitalia between Milan, Italy (MXP) and Washington, D.C. (IAD).

Counsel: Zuckert Scoutt, Richard Mathias, 202-298-8660 for Alitalia / Delta and Hogan & Hartson, Robert Cohn, 202-637-4999

Pursuant to the blanket statements of authorization approved in the above-captioned docket, Delta Air Lines, Inc. and Alitalia-Linee Aeree Italiane-S.p.A. hereby notify the Department that the carriers plan to display Delta's designator code on flights operated by Alitalia between Milan and Rome (FCO), on the one hand, and the following points in Spain, on the other hand:

Counsel: Zuckert Scoutt, Richard Mathias, 202-298-8660 for Alitalia / Hogan & Hartson, Robert Cohn, 202-637-4999 for Delta

Pursuant to the blanket statements of authorization approved in the above-captioned docket, Delta Air Lines, Inc., the Delta Connection Carriers, and Alitalia-Linee Aeree Italiane-S.p.A. hereby notify the Department that the carriers shall cease to display Alitalia's designator code on flights operated by Delta/Delta Connection to Bangor, Maine.

Counsel: Zuckert Scoutt, Richard Mathias, 202-298-8660 for AVIANCA / Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com for Delta

Delta Air Lines, Inc., Alitalia-Linee Aeree Italiane-S.p.A. and Alitalia Express S.p.A. hereby notify the Department that the carriers plan to display Delta's designator code: a) on flights between Delta's gateways in Italy, on the one hand, and Verona, Italy, and Vienna, Austria, on the other hand, operated by Alitalia, Alitalia Express, or both; and b) on flights between Delta's gateways in Italy, on the one hand, and points in Italy and third countries for which notice has previously been given, on the other hand, with the flexibility for the operating carrier to be Alitalia, Alitalia Express, or both, and for the flights to operate via any Delta gateway in Italy. Such flexibility is consistent with DOT precedent in similar codesharing dockets involving multiple international gateways and affiliated carriers.

Counsel: Zuckert Scoutt, Richard Mathias, 202-298-8660 for Alitalia / Hogan & Hartson, Robert Cohn, 202-637-4999 for Delta

Hereby notify the Department that the carriers plan to display Alitalia's designator code on flights operated by Comair and ASA between Alitalia's authorized gateways in the United States and the following beyond points: Indianapolis, Nashville, Buffalo, Little Rock, HuntsviIle, Philadelphia, Greensboro, and Sarasota. In addition, Alitalia gives notice that it intends to display Delta's designator code on flights operated by Alitalia and/or Alitalia Express between Rome (FCO) and Istanbul. The Joint Applicants plan to begin offering codeshare services on these segments no earlier than 30 days from the date of this notice.

In addition, Delta, hereby notifies the Department that notice given for a service point by Delta or either of its connection carriers ASA or Comair should be deemed notice given for all three carriers. This will assist Delta in maintaining the most efficient allocation of flying between mainline and connection carriers, without undue administrative burdens. The Department has previously granted Delta and other carriers similar flexibility. See, e.g., Department Action on Delta/ASA/Comair Application in Docket OST-1999-6556 (August 27, 2001).

Corrects notice issued October 26, which inadvertently omitted the date of the notice of action taken (October 26, 2001) granting authority to Alitalia Express as shown in footnote 2.

As indicated in a 30-day Notice filed on May 4, 2008, in Docket OST-2001-10417, and as orally confirmed by the carriers, the carriers have requested that notice given by either Delta, ASA or Comair be deemed notice given by all three carriers. Having received no objection to the 30-day Notice, we will grant the carriers' request, subject to compliance by the filing carrier with the terms of condition (c), attached.

Hereby notify the Department that, commencing no earlier than 30 days from the date of this notice, Delta's DL* designator code will be displayed on flights between Delta's gateways in Italy, on the one hand, and Parma, Athens and Thessaloniki, on the other hand, operated by Alitalia, Alitalia Express, or both.

Counsel: Zuckert Scoutt, Richard Mathias, 202-298-8660 for Alitalia / Delta and Hogan & Hartson, Robert Cohn, 202-637-4999

OST-2001-10417 - Blanket Statements of Authorization - US-Italy Codeshare	August 14, 2001	Joint Application for Blanket Statements of Authorization	Blanket Statements of Authorization - U.S.- Italy Open Skies
		Exhibit A: Codeshare City Pairs
		Attachment: Codesharing Agreement
		Service List

OST-01-10417	August 23, 2001	Answer of United Air Lines and Contingent Thirty-Day Notice	Blanket Statements of Authorization - U.S.- Italy Open Skies
		Service List

OST-01-10417	August 27, 2001	Motion for Leave to File Joint Reply of Delta, ASA, Comair, Alitalia, and Eurofly	Blanket Statements of Authorization - U.S.- Italy Open Skies
		Service List

OST-01-10417	August 28, 2001	Motion for Confidential Treatment	Blanket Statements of Authorization - U.S.- Italy Open Skies
		Attachment: Confidential Treatment Requested
		Service List

OST-01-10417	October 24, 2001	Re: Subsidiary Codeshare Agreement	Blanket Statements of Authorization - U.S.- Italy Open Skies
		Subsidiary Codeshare Agreement

OST-01-10417	December 14, 2001	Notice	Blanket Statements of Authorization - U.S.- Italy Open Skies
		Exhibit: Connection Flights

OST-01-10417	October 7, 2002	Letter of Aliatlia Linee Aeree Italiane	U.S.-Italy Open Skies Codesharing
		Service List