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Continental Airlines, Inc. and Transbrasil S/A Linhas Aereas and Interbrasil Star

Continental, Transbrasil and Interbrasil Star will provide U. S./Canada - Brazil codeshare service in competition with the U.S.- Brazil codeshare service offered by American and TAM and United and VARIG.  The proposed Continental/Transbrasil codeshare will serve the public interest and should be approved expeditiously in accordance with precedents established by approvals of other U.S.-Brazil codeshare services.  Under the proposed Continental/ Transbrasil codeshare arrangement, Continental seeks authority to display the Transbrasil TR* designator code on Continental flights between (1) New York/Newark and Houston, on the one hand, and Sdo Paulo, on the other hand, and New York/Newark and Belo Horizonte via Rio de Janeiro; (2) between New York/Newark and Houston, on the one hand, and Austin, Baltimore, Boston, Calgary, Chicago, Cincinnati, Cleveland, Columbus (OH), Dallas/Fort Worth, Denver, Detroit, Honolulu, Indianapolis, Jacksonville, Las Vegas, Los Angeles, Memphis, Midland, Minneapolis/St. Paul, Nashville, New Orleans, Oklahoma City, Orlando, Philadelphia, Phoenix, Pittsburgh, Portland (OR), Raleigh/Durham, Salt Lake City, San Diego, San Francisco, San Jose, San Juan, Seattle, Toronto, Tucson, Tulsa, Vail, and Washington, on the other hand; (3) between Miami and Cleveland, Houston and New York/Newark; and (4) between Los Angeles and Honolulu and San Francisco.

Counsel:  Crowell Morning, Bruce Keiner, 202.624.2615 rbkeiner@cromor.com and Royal Daniel, 970.453.4900, daniel@danielaw.com 

Continental Airlines, Inc. and Transbrasil S/A Linhas Aereas and Interbrasil Star

Houston is a major international center for trade and commerce. For the second year running, IndustryWeek has honored Houston as its #2 World-Class Manufacturing City, recognizing Houston's long-standing importance in the energy industry as well as its growing significance in aerospace and other high-technology fields. As its economy has grown, Houston has developed a strong community of interest with South America in general, and with Brazil and Argentina in particular. Nine South American countries, including Brazil and Argentina, maintain consulates in Houston, which facilitate the City's expanding business and cultural ties with those countries. In addition, according to the Greater Houston Partnership's 2000/01 International Business Directory, 432 Houston companies trade with Brazil, 346 trade with Argentina, and more than 1,400 trade with the countries of South America as a whole. Fifty Houston companies have subsidiaries in Brazil, and 44 in Argentina. One example of these pioneering firms is the Enron Corporation, which operates Brazil's sixth largest electricity distributor, and which also is currently building a 480-megawaft, combined-cycle natural gas power plant and distribution system, worth $570 million, in the Brazilian city of Cuiab. In 2000, Brazil was Houston's largest air cargo market in South America. Brazil and Houston exchanged more than 2.03 million kilograms of goods, largely exports to Brazil. Houston also exchanged more than 1.17 million kilograms of air cargo with Argentina. Together, Brazil and Argentina account for 51.7% of Houston's air cargo trade with the region. In addition, in 2000 Continental restored daily service between Houston and Sao Paulo, laying the foundation for future growth in trade and tourism.

Counsel:  Zuckert Scoutt, Jol Silversmith, 202.298.8660, jasilversmith@zsrlaw.com 

Continental Airlines, Inc. and Transbrasil S/A Linhas Aereas and Interbrasil Star

The applicants do not specify whether the Canada-Brazil bilateral agreement permits code sharing between those two countries via the United States in conjunction with a U.S.-flag carrier or, if so, whether there are any limits on the permissible number and routings of carriers to be designated or the frequencies they may operate. Nonetheless, United does not oppose the applicants' request so long as United may be authorized to provide similar service in conjunction with its code-share partners, Varig and Air Canada, should it wish to do so. United therefore requests that the Department ascertain that the Canadian and Brazilian governments would authorize such service by United before it grants the applicants' request for such authority.

Given that the U.S.-Brazil bilateral agreement explicitly restricts the number of code-share-only points that each country may select, United requests that the Department not authorize the applicants to implement code­share services to the above points until the two governments have formally communicated their respective selection of those points to each other.

Counsel:  Wilmer Cutler, Jeffery Manley, 202.663.6670, jmanley@wilmer.com  

Continental Airlines, Inc. and Transbrasil S/A Linhas Aereas and Interbrasil Star

Continental Airlines, Inc., Transbrasil S/A Linhas Aéreas and Interbrasil Star withdraw their applications in these dockets for statements of authorization and exemption authority to provide U.S.-Brazil/Argentina codeshare service.

Counsel:  Royal Daniel for Transbrasil, 970-453-4900 / Crowell Moring, Bruce Keiner, 202-624-2500

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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