OST-2004-19964 - American Airlines, Lan Peru and Lan Airlines

Updated: Thursday, May 3, 2007 3:39 PM

OST-2004-19964 - American Airlines, Lan Peru and Lan Airlines - Antitrust Immunity

OST-2004-19965 - Statements of Authorization (Blanket Codesharing)
OST-1997-3285 - American Airlines and Lan Chile Antitrust

American Airlines, Inc., Lan Peru, S.A. and Lan Airlines, S.A.

OST-2004-19964 - Approval of and Antitrust Immunity for Agreements

December 22, 2004

Joint Application for Approval and Antitrust Immunity

By this application, American and Lan Peru seek approval of their bilateral Alliance Agreement and antitrust immunity in order that they may conduct the types of joint activities that immunized carriers generally engage in pursuant to grants of antitrust immunity and provide coordinated and seamless service between the U.S. and Peru and other points. Lan Peru is a successful Peruvian carrier licensed and designated by the Government of Peru to conduct U.S.-Peru and other services. Lan Peru was incorporated in 1997 and began domestic operations in July 1999.

The American/Lan Peru alliance is the first but not the sole focus of this application. As stated above, American has an existing immunized alliance with Lan Airlines and now seeks immunity for a new alliance with Lan Peru. In order to maximize the efficiencies, service improvements and consumer benefits available through the two alliances, it is likely that the three applicant carriers will find it necessary and desirable to coordinate activities of the American/Lan Peru alliance (for which immunity is requested), on the one hand, with activities of the already‑immunized American/Lan Airlines alliance, on the other, as contemplated by the Alliance Coordination Agreement.

Counsel: Lan Peru and Squire Sanders, Marshall Sinick, 202-626-6651, msinick@ssd.com / Lan Airlines and Zuckert Scoutt, Charles Simpson, 202-973-7926, cjsimpson@zsrlaw.com / American, Carl Nelson, 202-496-5647, carl.nelson@aa.com

December 29, 2004

Joint Application for Confidential Treatment Under 14 C.F.R. 302.12

Served January 18, 2005

Notice Providing Access to Documents

In order to afford interested parties prompt access to the documents under conditions agreed to by the Joint Applicants and imposed by the Department under similar recent circumstances, we will grant immediate interim access to all documents covered by the Rule 12 Motion to counsel and outside experts for interested parties who file appropriate affidavits with the Department in advance. Moreover, Parties will be permitted to make copies of the exhibits, at the Dockets facility, for use by persons who have filed confidentiality affidavits. We also find it appropriate to grant interim access to any subsequent materials that may be filed in this case under a Rule 12 Motion to counsel and outside experts for interested parties who file appropriate affidavits with the Department in advance, unless the party filing the Motion objects.

We expect all affidavits to state, at a minimum, that (1) the affiant is counsel for an interested party or an outside independent expert providing services to such a party; (2) the affiant will use the information only for the purpose of participating in this proceeding; and (3) the affiant will disclose such information only to other persons who have filed a valid affidavit in Docket OST-2004-19964. Affiants and interested parties must understand and agree that any pleading or other filing that includes or discusses information contained in the covered documents must itself be accompanied by a Rule 12 Motion requesting confidential treatment. Affidavits must be filed in Docket OST-2004-19964 with the Department of Transportation, Dockets, Room PL-401, 400 Seventh Street, S.W., Washington, D.C. 20590.

Affiants having filed affidavits may examine the documents at the Department of Transportation at the Dockets location. Affiants must present a stamped copy of the affidavit filed with the Department of Transportation before examination of the documents. Immediately after the completion of any judicial review of our final decision in this docket or the expiration of the 60-day period within which a person may petition for judicial review, all persons who have filed confidentiality affidavits in this proceeding are hereby directed to file a further affidavit stating that all copies of the applicants’ confidential materials have been destroyed or returned to the applicants.

Finally, when we have determined that the record of this case is complete, we will announce an appropriate procedural schedule.

By: Karan Bhatia

January 19, 2005

Re: Confidentiality Affidavits of Andrea Newman, Peter Kenney, Jr., Megan Rae Rosia, James Denvir III, Ronald Brower

Counsel: Northwest, Ronald Brower, 202-842-4184, ron.brower@nwa.com

February 28, 2005

Joint Motion for Confidential Treatment Under 14 CFR 302.12

The joint applicants are submitting supplemental confidential information in connection with their captioned joint application for approval of and antitrust immunity for alliance agreements. The confidential documents are identified and described in the attached supplemental index. We request that access to these documents be limited to counsel and outside experts for interested parties for all the reasons stated in our initial joint motion for confidential treatment submitted in this docket on December 29, 2004, which we incorporate herein by reference.

Served April 4, 2005

Notice Establishing Procedural Dates

We have now finished our initial review. We find the application is now substantially complete. We will require that answers to the application be filed no later than 21 calendar days from the issue date of this Notice, and that replies be filed no later than 7 business days after the last day for filing an answer.

By: Karan Bhatia

Order 2005-10-8
OST-2004-19964 - Approval of and Antitrust Immunity for Alliance Agreements

Issued and Served October 13, 2005

Order Granting Approval and Antitrust Immunity for Alliance Agreements

We find that it is unlikely that the alliance agreements would substantially reduce or eliminate competition in any relevant market, subject to our standard "carve‑out" condition to preserve competition in the Miami‑Lima market for time‑sensitive passengers.

The Joint Applicants state that the proposed arrangement is intended to create a framework that will allow them to cooperate in order to improve efficiency, expand the benefits available to the traveling and shipping public, and enhance their ability to compete in the global marketplace. They state that, while retaining their separate corporate identities, they frilly intend to cooperate to the extent necessary to create a seamless air transport system. Accordingly, the alliance agreements' intended commercial and business effects are similar to those resulting from a combination of the three airlines' international operations.

By: Karan Bhatia