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OST-2004-19210 - Continental Airlines, Inc. / Continental Micronesia, Inc. / Alitalia-Linee Aeree Italiane-S.p.A. / Alitalia Express - US-Italy Third Country Codeshare
http://www.continental.com/
http://www.alitalia.com/
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Continental Airlines, Inc. / Continental Micronesia, Inc. / Alitalia-Linee Aeree Italiane-S.p.A. / Alitalia Express S.p.A. OST-2004-19210 - Statement of Authorization - US-Italy Third Country Services September 24, 2004 Applications for Statements of Authorization Continental and Alitalia request statements of authorization to implement their proposed codeshare service. Specifically, Continental and Continental Micronesia seek statements of authorization permitting them to display the Alitalia AZ* code in conjunction with foreign air transportation of persons, property, and mail on Continental and Continental Micronesia flights between (1) points in the United States, (2) points in the United States and points in Italy (either nonstop or via intermediate points in third countries), (3) points in the United States and points in third countries; and (4) points in Italy and points in third countries. Alitalia and Alitalia Express seek statements of authorization permitting them to display the Continental CO* code in conjunction with foreign air transportation of persons, property, and mail on Alitalia and Alitalia Express flights between (1) points in Italy, (2) points in Italy and points in the United States (either nonstop or via intermediate points in third countries), (3) points in Italy and points in third countries, and (4) points in the United States and points in third countries. Similar blanket codeshare authority has been granted to numerous transatlantic codeshare partnerships involving U.S. and European airlines. Counsel: Crowell & Moring, Bruce Keiner, Jr., 202-624-2615 Continental and Alitalia Applications:
October 5, 2004 United requests either that the Department defer action on the pending Alitalia/Continental application until Italy authorizes United (and other U.S. carriers) to serve Milan's Linate Airport by code sharing on flights operated by partners authorized to serve Linate, or, alternatively, to approve the application subject to a condition precedent that the parties may not implement the proposed code-share services until United (and other U.S. carriers) are permitted to hold out service at Linate on a nondiscriminatory basis. The Italian government's discriminatory policy is a direct, unambiguous, and indefensible violation of the express terms of the U.S.-Italy Open Skies Agreement, and one that affords Alitalia and its partners an unfair and unjustifiable competitive advantage. United's position is straightforward: Until the Italian government honors its obligations under the Open Skies Agreement by allowing United to hold out service at Linate, the Department may authorize, but should not allow Alitalia to implement, its proposed code-share services. Counsel: Wilmer Cutler, Bruce Rabinovitz, 202-663-6960, bruce.rabinovitz@wilmerhale.com
October 5, 2004 Answer of The City of Houston and The Greater Houston Partnership Houston has substantial linkages with Italy. According to the Greater Houston Partnership's International Houston: 2003/04 International Business Directory, 397 Houston companies trade goods and services with Italy and 28 Houston companies have subsidiaries in Italy, while eight Italian companies maintain offices in Houston. Examples of the Houston companies that trade with Italy are Andarako Petroleum which has partnered for oil exploration and production projects with Eni S.p.A. of Italy, and BMC Software, which maintains a regional office in Italy. Counsel: Zuckert Scoutt, Rachel Trinder, 202-298-8660
October 13, 2004 Reply of Alitalia and Alitalia Express United has failed to show either that Italy has violated the bilateral air services agreement or that this is proper forum or proceeding for the U.S. to consider the issue. Even if there were a legitimate issue, it should be taken up between the Governments of Italy and the United States under diplomatic procedures provided for in the agreement. As asserted by United, it involves equally all other U.S. carriers, although notably only United has complained. It has been in place since January, 2001. United is asking the Department to bypass all normal procedures for dispute resolution by rushing to judgment and instant retaliation by withholding the bilaterally authorized codesharing rights sought by Alitalia and Continental. The limitations on direct and codeshared services at Linate are based on Italy's policy for development of Milan's multiple airports. It is not unreasonable or unfairly discriminatory for the policy to allow the carriers serving Linate to offer on-line connections to their systems, nor to prohibit the multitude of other carriers worldwide to offer services to Linate by codeshare or other marketing arrangements. Counsel: Zuckert Scoutt, Richard Mathias, 202-298-8660
October 15, 2004 Motion for Leave to File and Response of American Airlines to Alitalia American has complained and objected repeatedly to the Department, to the Department of State, to the European Commission, and to the Italian Government for Italy's refusal to permit American to codeshare with British Airways between London (Heathrow) and Linate. The U.K. Department of Transport has similarly lodged objections with the Italian Government in this matter on behalf of British Airways. We also take issue with Alitalia's statement that "most EU carriers and all non‑EU carriers are unable to offer services at Linate, either with their own flights or by codesharing on the flights of others". In fact, European carriers codeshare into Linate with direct connections via their European hubs to their flights to and from the United States. United is right to oppose the Continental/Alitalia codeshare application until the discriminatory and unfair treatment imposed by the Italian Government on U.S. carrier codeshare services at Linate has been resolved. American hereby joins United in objecting to the Continental/Alitalia request. Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com
October 19, 2004 Response of United Air Lines and Motion for Leave to File United has already noted examples of code‑share connections used to create online services for transatlantic passengers to Linate. These include Alitalia/Air France code shares on each others' Paris‑Milan Linate flights which connect to transatlantic services. With the expansion of the Alitalia/Air France alliance to include KLM, similar online transatlantic connections to Linate may be added via AmsterdamLinate services which are operated by KLM and Alitalia. United's partners in the Star Alliance are also allowed to code share on their intra‑Europe services to/from Linate which connect to transatlantic services, but United is not permitted to display its code on these same flights. The only service United can offer to Linate is limited to less attractive and more expensive interline connections which are more difficult to market than the online code‑share services that are offered by the European carriers, including Alitalia and its EU‑flag partners.
Counsel: Wilmer Cutler, Jeffrey Manley, 202-663-6670, jeffrey.manley@wilmerhale.com October 18, 2004 Motion for Leave to File and Response of US Airways to Alitalia US Airways currently serves Rome nonstop from its international gateway at Philadelphia and Milan-Malpensa through its codeshare with Lufthansa. US Airways understands that it would be limited to serving Malpensa if it decided to serve Milan with its own aircraft. That, however, does not mean that US Airways or any other U.S. carrier should be barred from serving Linate via a codeshare with a European partner. Indeed, the situation in Milan is akin to the situation here in Washington, D.C. Transatlantic flights to/from Washington generally serve Washington Dulles International Airport on a nonstop basis. Passengers, however, may prefer to arrive closer to a downtown Washington destination by connecting through a U.S. gateway such as Philadelphia, Charlotte, New York's JFK International Airport, or some other airport for service to Reagan Washington National. Counsel: US Airways, Elizabeth Lanier, 703-872-5230
Filed September 24, 2004 | Approved July 27, 2005 United Air Lines, American Airlines, and US Airways filed in opposition to the application. The opposing parties based their opposition solely on Italian Government policies affecting U.S. carriers code‑share access to Milan's Linate Airport. Alitalia and Alitalia Express filed a reply. United filed a response. On November 24, 2004, American Airlines and United Air Lines filed a Joint Complaint under Section 2(b) of the International Air Transportation Fair Competitive Practices Act, as amended, against Alitalia and the Government of Italy on the Linate access issue. See Docket OST-2004-19790. On July 25, 2005, the Department issued an order dismissing the Joint Complaint. Order 2005-7-22. Against this background, we are granting the Statement of Authorization. By: Gerald Caolo
January 23, 2006 Notice of Additional Codeshare By Notice of Action Taken dated July 27, 2005, the Department granted the applications of Continental, Continental Micronesia, Alitalia and Alitalia Express for codeshare authority. Continental notifies the Department, pursuant to condition (c) of that Notice of Action Taken, that Continental, Alitalia and Alitalia Express intend to begin codeshare service on the following additional route segments, on or after thirty days from today:
Milan-Mumbai/Bombay service is operated by Alitalia itself, and Milan-Belgrade service is operated by Alitalia Express. Continental has FAA approval for codesharing on Alitalia, and Continental will not offer Milan-Belgrade codeshare service on Alitalia Express flights until FAA approval of Continental's Alitalia Express audit is received. Counsel: Crowell & Moring, Bruce Keiner, 202-624-2615, rbkeiner@crowell.com
July 26, 2006 Notice of Codesharing Services By Notice of Action Taken dated July 27, 2005, the Department granted the applications of Continental, Continental Micronesia, Alitalia and Alitalia Express for codeshare authority. In the original application and previous notices, Continental said it would not offer codeshare service on Alitalia Express flights pending FAA approval of Continental's Alitalia Express audit, and Continental has not done so. Now that such approval has been received, Continental will begin placing its code on Alitalia Express flights on segments for which notice has already been submitted indicating that Continental would place its code on Alitalia (which includes Alitalia Express) flights. Counsel: Crowell & Moring, Bruce Keiner, 202-624-2615, rbkeiner@crowell.com
March 13, 2007 Continental and Alitalia intend to begin codeshare service on the following additional route segment, on or after thirty days from today:
Continental holds authority to provide foreign air transportation between points in the United States and Budapest (see Notice of Action Taken, Docket OST-98-4929, November 21, 2006) and between the United States and points in Italy and beyond to points in third countries (see Continental's certificate for Route 792), and Continental understands that Milan has already been designated as a U.S. intermediate point for U.S. -Hungary service. Although Continental indicated when it renewed its Budapest authority that it did not then currently plan to initiate its own U.S.-Hungary services, it is now planning to institute U.S.-Hungary codeshare service with Alitalia. Counsel: Crowell & Moring, bruce Keiner, 202-624-2615
March 7, 2008 By Notice of Action Taken dated July 27, 2005, the Department granted the applications of Continental, Continental Micronesia, Alitalia and Alitalia Express for codeshare authority. Continental notifies the Department, pursuant to condition (b) of that Notice of Action Taken, that Continental and Alitalia will cease codeshare service on the following route segments due to Alitalia's schedule changes at Milan as of March 30, 2008:
In addition, Continental and Alitalia have ceased codesharing on the following route segments:
Counsel: Crowell & Moring, Bruce Keiner, 202-624-2615, rbkeiner@crowell.com |
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