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Updated: Monday, July 9, 2007 8:13 PM

OST-2003-16468 - Aerolineas Baleares - Intra-Spain Codeshare with US Airways


Aerolineas Baleares

OST-2003-16468 - Exemption - US-Spain Codeshare with US Airways

November 4, 2003

Application for an Exemption

Hereby requests an exemption from 40 U.S.C. § 41301 and from any other provisions of Title 40 and the Economic Regulations of the Department of Transportation to the extent necessary to engage in code-share operations with US Airways, Inc. and Spanair over certain domestic-Spain segments of US Airways' and Spanair's U.S.-originating and U.S.-destined scheduled code-share flights. Spanair and US Airways, along with AeBal, filed a joint application on September 23, 2003 for a Statement of Authorization to implement a code-sharing agreement between Spanair and US Airways. (Docket OST-03-16219). AeBal requests that any exemption granted by the Department remain in effect for a period of at least two years.

AeBal was established in December 1999 and began operations on July 4, 2000. As a commonly owned affiliate of Spanair, AeBal is dedicated to operating a portion of Spanair's domestic routes within the Spanair network. The routes to be operated by AeBal are determined at the beginning of each operating season. AeBal's current fleet consists of four Boeing B-717-200 aircraft. Each aircraft has a capacity of 115 seats. AeBal transported 578,512 passengers in 2002 and expects to serve over 592,000 passengers in 2003. Revenues were Euro 29.18 million in 2002 and are expected to be Euro 25.89 million in 2003.

Under the code-share agreement between US Airways and Spanair/AeBal, AeBal will, pursuant to its wet-lease agreement with Spanair, operate the Madrid-domestic Spain segments of certain U.S.-originating and U.S.-destined US Airways and Spanair code-share flights. US Airways will operate the U.S.-Madrid segments and AeBal will operate some, but not all, of the Madrid-domestic Spain segments. AeBal 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. Madrid-domestic Spain flights operated by AeBal will continue to carry Spanair's "JK" code, and, under the code-share agreement with US Airways, will carry the "US" code. A complete description of the routes and frequencies operated by AeBal is included in Exhibit B to this application. AeBal will operate each of these segments with its Boeing B-717-200 aircraft with 115 seats.

Exhibit A: Board of Directors & Key Management Officials
Exhibit B: Route Description
Exhibit C: Homeland Operating License
Exhibit D: Insurance Certificate
Exhibit E: Balance Sheets FY 2001, 2003

Counsel: Mayer Brown, John Schmitz, 202-263-3000, jschmitz@mayerbrownrowe.com



November 5, 2003

Correspondence of Aerolineas Baleares

The exemption requested by Aerolineas Baleares is limited to the routes that would be served under US Airways and Spanair's code-share agreement, approval of which is currently pending before the Department (OST-03-16219). Specifically, the requested exemption is limited to the following destinations to and from Madrid: Barcelona, Malaga, and Palma de Mallorca.

Counsel: Mayer Brown, John Schmitz, 202-263-3000, jschmitz@mayerbrownrowe.com



November 12, 2003

Re: Polling Letter

Counsel: Mayer Brown, John Schmitz, 202-263-3000, jschmitz@mayerbrownrowe.com



November 14, 2003

Re: Request for Name Change on Application

Aerolineas Baleares would like to change the name on its application to its commercially registered name, "Aerolineas de Baleares, S.A.".

Counsel: Mayer Brown, Carl Summers, 202-263-3247, csummers@mayerbrownrowe.com



Filed November 4, 2003 | Issued November 17, 2003

Notice of Action Taken

Exemption from 49 U.S.C. § 41301 and statement of authorization under 14 CFR Part 212 to the extent necessary to permit AeBal to wet lease aircraft to Spanair, S.A., a foreign air carrier of Spain, for use by Spanair on Spanair flights between Madrid, Spain, on the one hand, and Barcelona, Malaga, and Palma de Mallorca, Spain, on the other hand (limited to the carriage of US Airways' and Spanair's U.S.-Spain traffic).

Based on the record in this case, we found that AeBal is financially and operationally qualified to perform the services authorized above. However, we are unable to conclude that AeBal is substantially owned and effectively controlled by citizens of Spain. In that regard, we note that AeBal, a commonly owned affiliate of Spanair, is 51% owned by Spanair Holding and 49% by Scandinavian Airlines System.

On November 17, 2003, we granted a related request of US Airways and Spanair for statements of authorization to engage in code-share services in the U.S.-Spain market (Docket OST-2003-16219).

By: Paul Gretch



November 17, 2004

Application for Renewal of Exemption Authority

Under the code-share agreement between US Airways and Spanair/AeBal, as approved by the Department by Notice of Action Taken dated November 17, 2003, AeBal has in the past, pursuant to its wet-lease agreement with Spanair, operated the Madrid-domestic Spain segment of certain U.S.-originating and U.S.-destined US Airways and Spanair code-share flights. US Airways continues to operate the U.S. Madrid segments, and although AeBal does not currently operate any Madrid-domestic Spain segments, it may do so in the future. AeBal would not sell seats in its name for travel to or from the United States and would not operate its aircraft to any U.S. point. Madrid-domestic Spain flights operated by AeBal would continue to carry Spanair’s JK code, and, under the code-share agreement with US Airways, would carry the US code. When it resumes service on the Madrid-domestic Spain segments, AeBal will likely operate each of these segments with its Boeing B-717-200 aircraft with 115 seats.

Counsel: Mayer Brown, Carl Summers, 202-263-3000, csummers@mayerbrownrowe.com



Filed November 17, 2004 | Issued December 16, 2004

Notice of Action Taken | Word

Renew exemption from 49 U.S.C. § 41301 and statement of authorization under 14 CFR Part 212 to the extent necessary to permit AeBal to wet lease aircraft to Spanair, S.A., a foreign air carrier of Spain, for use by Spanair on Spanair flights between Madrid, Spain, on the one hand, and Barcelona, Malaga, and Palma de Mallorca, Spain, on the other hand (limited to the carriage of US Airways’ and Spanair’s U.S.-Spain traffic).

By: Paul Gretch



December 15, 2005

Application for Renewal of Exemption Authority

AeBal hereby requests renewal of its exemption from 49 U.S. C. § 41301 and from any other provisions of Title 49 and the Economic Regulations of the Department of Transportation to the extent necessary to engage in code-share operations with US Airways, Inc. and Spanair over certain domestic-Spain segments of US Airways' and Spanair's U.S.-originating and U.S-destined scheduled code-share flights. AeBal was granted an exemption from 49 U.S.C. § 41301 for one year by Notice of Action Taken dated December 16, 2004 in this Docket; that authority is set to expire December 16, 2005. AeBal therefore requests that its exemption authority, which is currently set to expire on December 16, 2005, be renewed for an additional period of at least two years.

Under the code-share agreement between US Airways and Spanair/AeBal, as approved most recently by the Department by Notice of Action Taken dated January 26, 2005. (Docket OST-2003-16219), AeBal has in the past, pursuant to its wet-lease agreement with Spanair, operated the Madrid-domestic Spain segment of certain U.S.-originating and U.S.-destined US Airways and Spanair code-share flights. AeBal does not sell seats in its name for travel to or from the United States and does not operate its aircraft to any U.S. point. Madrid-domestic Spain flights operated by AeBal would continue to carry Spanair's "JK" code, and, under the code-share agreement with US Airways, would carry the "US" code.

Counsel: Silverberg Goldman, Michael Goldman



Filed December 15, 2005 | Issued June 23, 2006

Notice of Action Taken | Word

Renewal of exemption from 49 U.S.C. § 41301 and statement of authorization under 14 C.F.R. Part 212 to the extent necessary to permit AeBal to wet lease aircraft to Spanair, S.A., a foreign air carrier of Spain, for use by Spanair on Spanair flights between Madrid, Spain, on the one hand, and Barcelona, Malaga, and Palma de Mallorca, Spain, on the other hand (limited to the carriage of US Airways’ and Spanair’s U.S.-Spain traffic).

By: Paul Gretch



June 22, 2007

Application for Renewal of Exemption Authority

AeBal hereby requests renewal of its exemption from 49 U.S.C. 41301 and from any other provisions of Title 49 and the Economic Regulations of the Department of Transportation to the extent necessary to engage in code-share operations with US Airways, Inc. and Spanair over certain domestic-Spain segments of US Airways’ and Spanair’s U.S.-originating and U.S.-destined scheduled code-share flights. AeBal was granted an exemption from 49 U.S.C. 41301 for one year by Notice of Action Taken dated June 23, 2006, in this Docket; that authority is set to expire June 23, 2007. AeBal therefore requests that its exemption authority, which is currently set to expire on June 23, 2007, be renewed for an additional period of at least two years.

Counsel: Silverberg Goldman, Michael Goldman



Filed June 22, 2007 | Issued July 9, 2007

Notice of Action Taken | Word

Renew exemption from 49 U.S.C. § 41301 and statement of authorization under 14 C.F.R. Part 212 to the extent necessary to permit AeBal to wet lease aircraft to Spanair, S.A., a foreign air carrier of Spain, for use by Spanair on Spanair flights between Madrid, Spain, on the one hand, and Barcelona, Malaga, and Palma de Mallorca, Spain, on the other hand (limited to the carriage of US Airways’and Spanair’s U.S.-Spain traffic).

By: Paul Gretch


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