American Airlines, Inc.

June 26, 2003

OST-03-15516 - US-Israel Third-Country Codeshare Opportunity

Application for US-Israel Third-Country Codeshare Opportunity

Hereby applies for the remaining U.S. -Israel third-country codeshare opportunity that became available on April 1, 2003 under the U.S.-Israel Air Transport Agreement, as amended. American proposes codeshare service with British Airways Plc via London. American and British Airways will introduce such service as soon as all necessary regulatory approvals have been issued.

On June 17, 2003, Delta applied for the last remaining opportunity in OST-2003-15440, proposing codeshare service to Israel with Alitalia via points in Italy. American is this day filing an answer in opposition to Delta's request. Under Ashbacker Radio Corp. v FCC 326 U.s. 327 (1945), the Department is required to conduct a carrier selection proceeding. In that proceeding, American will show why its application to serve Israel with British Airways should be favored over Delta's application with Alitalia.

Counsel: Carl Nelson, 202-496-5647, carl.nelson@aa.com

July 2, 2003

OST-03-15440 - Phase 3 Israel Codeshare
OST-03-15519 - American - US-Israel Codeshare
OST-03-15516 - Continental - US-Israel Codeshare

Consolidated Answer

Delta Air Lines, Inc. hereby answers in opposition to the applications of American Airlines, Inc. and Continental Airlines, Inc. for U.S.-Israel codeshare designations. Delta opposes these applications, because they are mutually exclusive to Delta's request for the same authority. The Department is required to conduct a carrier selection proceeding to consider merits of the pending applications. See, Ashbacker Radio Corp. v. FCC, 326 U.S. 327 (1945).

Counsel: Shaw Pittman, Alexander Van de Bellen, 202-663-8060

July 11, 2003

OST-03-15516 - US-Israel Third-Country Codeshare Opportunity

Answer of Continental Airlines

Continental is the only U.S. airline currently operating its own flights between the U.S. and Israel, and Continental offers daily nonstop B-777 roundtrip service between its New York/Newark hub and Tel Aviv. To supplement and support that service by offering additional capacity and alternative routings for passengers stopping over in Europe, Continental requires the ability to offer codeshare service between Amsterdam and Tel Aviv in conjunction with KLM. In contrast, American already offers U.S.-Israel service with Swiss but seeks two of the four codeshare opportunities available, and Delta already provides service pursuant to a codeshare with El Al, the dominant airline on U.S.-Israel nonstop routes.

Continental urges the Department to deny the American and Delta applications and award Continental the U.S.-Israel third-country codeshare opportunity now available so Continental can institute new U.S.-Israel service under its codeshare agreement with KLM.

Counsel: Crowell Moring, Bruce Keiner, 202-624-2615, rbkeiner@crowell.com