OST-2003-14397 - KLM - Netherlands-Points in Third Countries Codeshare with Northwest

Application of KLM Cityhopper B.V. pursuant to 14 CFR 212 and Subpart C, requesting a statement of authorization and an exemption from 49 USC 41301 permitting KLM Cityhopper to transport persons, property and mail under the designator codes of Northwest and Continental Airlines, Inc. between points in the Netherlands and points in Third Countries.

KLM Cityhopper will not sell seats in its name for travel to or from the United States and will not operate its aircraft to any U.S. point. Similarly, neither Northwest nor Continental will sell seats in their names on KLM Cityhopper's flights for travel in local Netherlands-third country markets.

KLM Cityhopper already holds a statement of authorization permitting it to display Continental's designator code on KLM Cityhopper's flights operated between points in The Netherlands and points in third countries. See, Notice of Action Taken, Docket OST-2001-10880, November 29, 2001. KLM Cityhopper was established in 1991 through the merger of two regional airlines: NLM cityhopper, owned by KLM, and Netherlines, a 100%-owned subsidiary company of Nedlloyd. Subsequently, KLM Cityhopper began operations on Amsterdam/Rotterdam-Europe routes, initially with F27 aircraft. Since its founding in the early 1990s, KLM Cityhopper's business has continued to expand and grow. As of November 2002, KLM Cityhopper's fleet consisted of 15 Fokker 100, 20 Fokker 70 and 19 Fokker 50 aircraft, seating 100, 80 and 50 passengers, respectively. The majority of the passengers traveling on KLM Cityhopper's intra-Europe flights connect in Amsterdam with KLM's worldwide service. KLM Cityhopper employs 1,500 persons. KLM Cityhopper transported approximately 2.8 million passengers in 2002, expects to serve 5.2 million passengers in 2003 and intends to further expand its route network in the next few years focusing on operations from European regional airports to Amsterdam enabling KLM Cityhopper to continue to feed passengers to KLM and its codeshare partners. KLM Cityhopper also expects to operate directly into major European industrial cities and to other regional airports, carrying local traffic.

Hereby submits this supplement to its pending application in Docket OST-2003-14397. In addition to the routes identified in Exhibit B to Cityhopper s application, Cityhopper will begin codeshare service with Northwest Airlines, Inc. between Amsterdam, The Netherlands, and Trondheim, Norway, on March 30, 2003. Cityhopper understands Northwest already holds underlying authority permitting it to serve Norway.

Cityhopper's pending application in this docket requests a blanket exemption and statement of authorization permitting it to engage in codeshare operations with Northwest between The Netherlands and third countries (as well as a blanket exemption permitting codesharing with Continental Airlines, Inc. between The Netherlands and third countries). Cityhopper is submitting this supplement to satisfy any prior notification requirement the Department might attach to its approval of Cityhopper's blanket statement of authorization.

Cityhopper will also begin codeshare service on this route with Continental on March 30, 2003. Continental and Cityhopper are submitting notice of their Amsterdam-Trondheim codeshare service separately in Docket OST-2001-10880.

Relief requested: (1) Exemption from 49 U.S.C. 41301 to conduct scheduled foreign air transportation of persons, property and mail by displaying the airline designator codes of Northwest Airlines, Inc., and Continental Airlines, Inc., on flights operated by KLM Cityhopper between points in The Netherlands and points in third countries; (2) Statement of authorization pursuant to 14 CFR 212 of the Department’s regulations to display Northwest’s airline designator code on KLM Cityhopper-operated flights between points in The Netherlands and points in third countries.

KLM Cityhopper already holds a statement of authorization permitting it to display Continental’s code on KLM Cityhopperoperated flights between The Netherlands and third countries (see Notice of Action Taken dated November 29, 2001, in Docket OST2001-10880).

Northwest Airlines, Inc. hereby notifies the Department that Northwest intends to display the "NW" designator code on new flights to be operated by KLM Cityhopper B.V. between Amsterdam and Marseille, France. KLM Cityhopper will implement new Amsterdam‑Marseille service effective June 1, 2004. Northwest wishes to being codesharing on such flights upon commencement, and to the extent necessary requests waiver from the 30‑day advance notice requirement set forth in the referenced Notice of Action Taken.

By Statement of Authorization issued February 19, 2003, in this docket, KLM was granted authority to code share with Northwest Airlines, Inc., subject to the condition that it notify the Department no later than 30 days before it begins any new code-share service under the code-share services authorized. KLM has applied for a waiver of this requirement to enable it to begin service June 1, 2004. KLM polled all carriers served with its application and states that none objects to the requested waiver. Under these circumstances, we find it in the public interest to grant the requested waiver.

KLM Cityhopper B.V. hereby requests renewal of the exemption authority granted to it by the Department of Transportation in the above-captioned docket permitting cityhopper to display the designator codes of Northwest Airlines, Inc. and Continental Airlines, Inc. on flights operated by Cityhopper between points in The Netherlands and points in third countries.

Under the codeshare agreement among Cityhopper, Northwest and Continental, Cityhopper conducts flights between The Netherlands and third countries on which Cityhopper displays the codes of Northwest and Continental. These flights connect with the U.S.-Netherlands flights of Northwest and Continental for the purpose of transporting both carriers' U.S.-originating and U.S.-destined traffic. Cityhopper does not offer transportation in its name to any U.S. point and does not operate its aircraft to any U.S. point.

Cityhopper also holds in this docket a statement of authorization of indefinite duration permitting it to display Northwest's designator code and holds a statement of authorization in Docket OST-2001-10880 permitting it to display Continental's designator code.

Renew exemption from 49 U.S.C. § 41301 to conduct scheduled foreign air transportation of persons, property and mail by displaying the airline designator codes of Northwest Airlines, Inc., and Continental Airlines, Inc., on flights operated by KLM Cityhopper between points in The Netherlands and points in third countries.

Pursuant to condition (b) of the Department’s Notice of Action Taken dated February 19, 2003 in this docket, Northwest Airlines, Inc. hereby notifies the Department of Northwest’s intent to display the "NW" designator code on new flights to be operated by KLM Cityhopper B.V. between Amsterdam, the Netherlands, and Tallinn, Estonia. KLM Cityhopper is scheduled to commence new daily Amsterdam-Tallinn service, utilizing Fokker F-70 aircraft, effective March 27, 2005. Northwest intends to begin codesharing upon commencement of the new KLM Cityhopper service, and therefore requests waiver from the 30-day advance notice requirement set forth in the referenced Notice of Action Taken.

OST-2003-14397 - KLM - Exemption and Statement of Authorization Permitting Codeshare Operations
OST-2004-19214 - SkyTeam - Approval of and Antitrust Immunity for Alliance Agreements
OST-2005-20145 - Delta - Exemption - Blanket Codeshare Authority

Delta and CityHopper hereby apply for a statement of authorization and exemptions to permit the Joint Applicants to engage in codesharing on flights operated by CityHopper within, beyond and outside the Netherlands to the full extent permitted by the U.S.-Netherlands open skies agreement. The Joint Applicants are requesting this authority to introduce certain new codesharing services within Europe as soon as possible, and other codesharing services in the future.

Specifically, the Joint Applicants request prompt approval of the following authorities:

The Joint Applicants request that this application be approved as soon as possible, that the statement of authorization remain in effect indefinitely that CityHopper's amended exemption be granted through February 15, 2007 (coextensive with its existing exemption in Docket OST-2003-14397) and that Delta's amended exemption be granted through February 6, 2008 (coextensive Delta's existing exemption in Docket OST-2005-20145).

Counsel: KLM - Squire Sanders, Charles Donley, 202-626-6840 / Delta - Hogan & Hartson, Robert Cohn, 202-637-4999

Statement of authorization for blanket code-share authority for Cityhopper under CFR Part 212 to: Permit Cityhopper to display the"DL" code of Delta on flights operated by Cityhopper between (1) any points in the Netherlands; (2) any point or points in the Netherlands and any point or points in any third country; and (3) any points in third countries.

Amended exemption for Cityhopper under 49 U.S.C. 40109 to provide the following service: Scheduled foreign air transportation of persons, property, and mail by displaying Delta's designator code on flights operated by Cityhopper between (1) any points in the Netherlands; (2) any point or points in the Netherlands and any point or points in any third country; and (3) any points in third countries. The applicants request that the exemption authority be granted for a period co-extensive with its exemption granted previously in the instant docket (through February 15, 2007).

Amended exemption for Delta under 49 U.S.C. 40109 to include Cityhopper as an additional authorized foreign code-share partner and permit Delta to display its designator code on flights operated by Cityhopper on the following services: Scheduled foreign air transportation of persons, property, and mail between the United States and points worldwide on a third-country code-share basis pursuant to the blanket code-sharing statement of authorization with Cityhopper. The applicants request that the exemption authority be granted for a period co-extensive with its exemption granted previously in the instant docket (through February 6, 2008).

CODE-SHARE ROUTES: Amsterdam-Hamburg / Amsterdam-Oslo / Amsterdam-Hanover / Amsterdam-Nuremburg / Amsterdam-Newcastle / Amsterdam-Bremen / Amsterdam-Luxembourg / Amsterdam-Riga

KLM Cityhopper BV hereby requests renewal of the exemption authority granted to it by the Department of Transportation in the above-captioned docket permitting Cityhopper to display the designator codes of:

Cityhopper requests amendment of its exemption to permit it to display the designator codes of Northwest and Continental on flights operated by Cityhopper between: (i) any points in The Netherlands; and (ii) any point or points in third countries. Cityhopper also requests amendment of its existing statement of authorization to allow it to display Northwest's designator code on domestic Netherlands flights, and to display the designator codes of Northwest and Continental on flights between any points in third countries. Cityhopper requests further that its authority to codeshare with Continental and Northwest be administered jointly with the existing Continental/KLM and Northwest/KLM statements of authorization in Dockets OST-2001-10880 and OST-2003-15191, respectively, and that future notices given for points served by KLM be deemed notice given for points served by Cityhopper, and vice versa, via all authorized gateways.

Cityhopper's current exemption is valid through February 15. 2007, and its statement of authorization is valid indefinitely. Cityhopper requests renewal of its amended exemption for an additional two-year period, and requests that its amended statement of authorization continue in effect indefinitely.

Renew exemption from 49 U.S.C. § 41301 to conduct scheduled foreign air transportation of persons, property and mail by displaying the airline designator codes of (1) Northwest Airlines, Inc., and Continental Airlines, Inc., on flights operated by KLM Cityhopper between points in The Netherlands and points in third countries; (2) Delta Air Lines, Inc. on flights operated by KLM Cityhopper between (a) any points in The Netherlands, (b) any point or points or points in The Netherlands and any point or points in any third countries, and (c) any points in third countries.

The applicant requests that the Continental, Northwest and KLM Cityhopper codesharing authority be administered with the existing Continental/KLM and Northwest/KLM statement of authorizations in the instant docket, and Dockets OST-2001-10880 and OST-2003-15191, and that future notice given for points served by KLM be deemed notice given for points to be served by KLM Cityhopper, and vice versa, via all authorized gateways.

Pursuant to the terms of the codeshare statement of authorization granted by the Department in this docket, Northwest Airlines, Inc. hereby notifies the Department of Northwest’s intent to display the “NW” designator code on new flights to be operated by KLM Cityhopper B.V. between Amsterdam, the Netherlands and Linkoping, Sweden, on or after thirty days from today.

OST-2003-14397 - Exemption - Netherlands-US Codesharing with Northwest	January 28, 2003 Released to Public January 29, 2003. Dockets Was Staffed by Only One Person on Jan 28th.	Application for Exemption and Statement of Authorization	Netherlands-Points in Third Countries
		Exhibit A: Board of Directors and Key Personnel
		Exhibit B: Route Description
		Exhibit C: Operating License
		Exhibit D: Certificate of Insurance and Warsaw Agreement
		Exhibit E: Financial Data
		Service List