OST-2005-22645 - US Airways - US-Mexico Codeshare with America West

OST-2005-22645 - Exemption - Various US-Mexico City-Pairs Codesharing with America West

Hereby applies for an exemption and, to the extent necessary, designations in order to engage in scheduled foreign air transportation of persons, property, and mail in certain U.S.-Mexico city-pairs, pursuant to the US Airways-America West code-share agreement. To the extent warranted, US Airways also seeks integration authority to combine this exemption authority with US Airways' other authorities

Scheduled foreign air transportation of persons, property, and mail between (1) the terminal point Phoenix, Arizona, on the one hand, and the terminal points Mexico City, Mazatlan, Puerto Vallarta, San Jose del Cabo, Acapulco, Guadalajara, Guaymas, Hermosillo, Ixtapa/Zihuatanejo, Manzanillo, and Cancun, Mexico, on the other hand; (2) the terminal point Las Vegas, Nevada, on the one hand, and the terminal points Puerto Vallarta and San Jose del Cabo, Mexico, on the other hand; and (3) the terminal point Los Angeles, California, on the one hand and the terminal points Acapulco and Puerto Vallarta, Mexico, on the other hand. US Airways also requests authority to combine this exemption authority with all of US Airways’ existing certificate and exemption authority, consistent with applicable international agreements.

US Airways states that it requests this authority in order to expand services under a code-share arrangement with America West and/or Mesa Airlines operating as America West Express, whereby US Airways will place its “US” code on flights operated by America West in the respective city-pair markets.

US Airways states that on September 27, 2005, America West Holdings Corporation merged with US Airways Group, Inc. As a result, America West became a subsidiary of US Airways Group.

This Erratum has been issued to reflect city-pair markets that were inadvertently left out of the Notice of Action Taken issued November 2, 2004.

Scheduled foreign air transportation of persons, property, and mail between (1) the terminal point Phoenix, Arizona, on the one hand, and the terminal points Mexico City, Mazatlan, Puerto Vallarta, San Jose del Cabo, Acapulco, Guadalajara, Guaymas, Hermosillo, Ixtapa/Zihuatanejo, Manzanillo, and Cancun, Mexico, on the other hand; (2) the terminal point Las Vegas, Nevada, on the one hand, and the terminal points Puerto Vallarta and San Jose del Cabo, Mexico, on the other hand; (3) the terminal point Los Angeles, California, on the one hand and the terminal points Acapulco, Puerto Vallarta, and Mazatlan, Mexico, on the other hand; (4) the terminal point San Diego, California, on the one hand, and the terminal points Puerto Vallarta and San Jose del Cabo, Mexico, on the other hand; and (5) the terminal point Oakland, California, and the terminal point San Jose del Cabo, Mexico. US Airways also requests authority to combine this exemption authority with all of US Airways’ existing certificate and exemption authority, consistent with applicable international agreements.

US Airways states that it requests this authority in order to expand services under a code-share arrangement with America West Airlines, Inc. whereby US Airways will place its “US” code on flights operated by America West and/or Mesa Airlines operating as America West Express in the respective city-pair markets.

America West holds exemption authority and is designated to provide direct-carrier (own-aircraft) services in the following markets: Phoenix-Mexico City/Mazatlan/Puerto Vallarta/San Jose del Cabo/Acapulco/ Ixtapa/Zihuatanejo/Manzanillo/Cancun, Los Angeles-Acapulco, and Oakland-San Jose del Cabo. Mesa Airlines holds exemption authority and is designated to provide direct-carrier services in the following markets: Phoenix-Mazatlan/Guadalajara/Guaymas/Hermosillo, Las Vegas-Puerto Vallarta/San Jose del Cabo, Los Angeles-Puerto Vallarta/Mazatlan, and San Diego-Puerto Vallarta/San Jose del Cabo.

US Airways applies for renewal of its exemption authority to engage in scheduled foreign air transportation of persons, property and mail. By Notice of Action Taken (November 4, 2005), the Department granted US Airways a two-year exemption from 49 U.S.C. 41101 to engage in scheduled foreign air transportation of persons, property, and mail between "(1) the terminal point Phoenix, Arizona, on the one hand, and the terminal points Mexico City, Mazatlan, Puerto Vallerta, San Jose del Cabo, Acapulco, Guadalajara, Guaymas, Hermosillo, Ixtapa/Zihuatanejo, Manzanillo, and Cancun, Mexico, on the other hand; (2) the terminal point Las Vegas, Nevada, on the one hand, and the terminal points Puerto Vallerta and San Jose del Cabo, Mexico, on the other hand; (3) the terminal point Los Angeles, California, on the one hand, and the terminal points Acapulco, Puerto Vallerta, and Mazatlan, Mexico, on the other hand; (4) the terminal point San Diego, California, on the one hand, and the terminal points Puerto Vallerta and San Jose del Cabo, Mexico, on the other hand; and (5) the terminal point Oakland, California, and the terminal point San Jose del Cabo, Mexico."

US Airways currently provides scheduled air service between the coterminal points listed in Exhibit A pursuant to code-share relationships with America West Airlines, Inc. and Mesa Airlines, Inc. d/b/a America West Express.

OST-2005-22645 - US Airways - Exemption - Various US-Mexico City-Pairs Codesharing with America West
OST-2005-22646 - Exemption - Various US-Mexico City-Pairs Codesharing with US Airways
OST-2004-19546 - America West - Exemption - Phoenix-Guadalajara
OST-2003-16735 - America West - Exemption - Los Angeles-Puerto Vallarta Codeshare with Mesa Airlines
OST-2003-16529 - Mesa Air - Exemption - Phoenix-Mazatlan, Mexico
OST-2003-16444 - America West and Mesa - Exemption - Phoenix-Los Cabos/Puerto Vallarta
OST-2004-18440 - America West and Mesa - Exemption - Various US-Mexico City-Pairs
OST-2005-22649 - America West - Exemption - Boston; Charlotte; Ft. Lauderdale; New York; Orlando; Philadelphia; Washington, DC-Bermuda Codesharing with US Airways
OST-2005-22831 - America West - Exemption - US-France/Germany/Italy/Netherlands

On November 4, 2005, the Department authorized US Airways, Inc. to code-share on flights operated by America West Airlines, Inc. and Mesa Airlines, Inc. between various points in the United States and Mexico. (See Erratum, Docket OST-2005-22645). On September 26, 2007, America West and US Airways combined their operations under US Airways' Operating Certificate, and all international air service is now being conducted pursuant to certificate and exemption authority previously granted to US Airways.

Accordingly, US Airways hereby requests that the Department cancel its exemption authority to codeshare on flights previously operated by America West in the markets listed:

US Airways intends to continue to place its code on Mesa-operated flights in these markets, as evidenced by its renewal application. (See Application of US Airways for Renewal of Exemptions, September 6, 2007, Docket OST-2005-22645).

US Airways timely filed its initial application for renewal of exemption authority to codeshare in various U.S.-Mexico markets on September 6, 2007. Subsequent to its filing, the Department granted US Airways exemption authority to operate its own flights between "Phoenix, Arizona, on the one hand, and Acapulco, Ixtapa/Zihuatanejo, Manzanillo, Mazatlan, Mexico City, Puerto Vallarta, and San Jose del Cabo, Mexico, on the other hand." (Notice of Action Taken, September 21, 2007, Docket OST-2007-29308.) This grant of exemption authority rendered US Airways' Initial Application moot with respect to these markets. Accordingly, the attached Exhibit A contains an amended list of U.S.-Mexico city-pairs for which US Airways seeks renewal of its exemption authority to provide codeshare service.

US Airways' request to provide service between Phoenix, Arizona and Cancun, Mexico, pursuant to a codeshare with America West Airlines, Inc. is also now moot in light of the September 26, 2007, operational consolidation of America West and US Airways. US Airways separately holds exemption authority to operate its own aircraft in this market. (See Notice of Action Taken, May 26, 2006, Docket OST-2006-24613.)

US Airways currently provides scheduled air service between the coterminal points listed in Exhibit A pursuant to a code-share relationship with Mesa Airlines, Inc. d/b/a US Airways Express. Renewal of US Airways' exemption will enable US Airways to continue developing its presence in Mexico.

Renewal of scheduled foreign air transportation of persons, property, and mail between (1) the terminal point Phoenix, Arizona, and the terminal point Guadalajara, Mexico; (2) the terminal point Phoenix, Arizona, and the terminal point Guaymas, Mexico; (3) the terminal point Phoenix, Arizona, and the terminal point Hermosillo, Mexico; (4) the terminal point Las Vegas, Nevada, and the terminal point Puerto Vallarta, Mexico; (5) the terminal point Las Vegas, Nevada, and the terminal point San Jose del Cabo, Mexico; (6) the terminal point Los Angeles, California, and the terminal point Puerto Vallarta, Mexico; (7) the terminal point San Diego, California, and the terminal point Puerto Vallarta, Mexico; and (8) the terminal point San Diego, California, and the terminal point San Jose del Cabo, Mexico. US Airways states that it will continue to provide these services on a code-share basis with Mesa Airlines, Inc. d/b/a US Airways Express.

In its September 6, 2007, application US Airways included, among other things, requests for renewal of exemption authority to provide code-share services in certain U.S.-Mexico city-pair markets where US Airways has subsequently obtained exemption authority to serve the markets in its own right. The October 4, 2007, amendment provides a revised listing of the requested authority.

Previously, in Docket OST-2005-22645, US Airways was also granted exemption authority to provide certain code-share services in the Phoenix-Mexico City, Phoenix-Mazatlan, Phoenix-Puerto Vallarta, Phoenix-San Jose del Cabo, Phoenix-Acapulco, Phoenix-Ixtapa/Zihuatanejo, Phoenix-Manzanillo, Phoenix-Cancun, Los Angeles-Acapulco, Los Angeles-Mazatlan, and Oakland-San Jose del Cabo markets. US Airways now holds exemption authority to serve the following markets with its own aircraft: Phoenix-Mexico City, Phoenix-Mazatlan, Phoenix-Puerto Vallarta, Phoenix-San Jose del Cabo, Phoenix-Acapulco, Phoenix-Ixtapa/Zihuatanejo, and Phoenix-Manzanillo (see Notice of Action Taken dated September 21, 2007, in Docket OST-2007-29308); the Phoenix-Cancun market (see Notice of Action Taken dated May 26, 2006, in Docket OST-2006-24613); and the Phoenix-Guadalajara market (see Notice of Action Taken dated November 1, 2007, in Docket OST-2007-0025). US Airways advises that it will not seek to renew the now dormant authority previously granted in this docket for the following markets: Los Angeles-Mazatlan, Los Angeles-Acapulco, and Oakland-San Jose del Cabo (see dormancy notices dated September 27, 2006, November 14,2006, and October 2, 2007, respectively, in this docket).