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Updated: Friday, August 15, 2008 8:29 AM


OST-2007-0095 - American and El Al Israel - US-Israel Reciprocal Codesharing

http://www.elal.com/
http://www.aa.com/


American Airlines, Inc. and EL AL Israel Airlines Ltd.

OST-2007-0095 - Statements of Authorization - US-Israel Reciprocal Codesharing

December 4, 2007

Joint Application for Statements of Authorization - Includes Codeshare Agreement and US-Israel Air Transport Agreement

American Airlines and El Al Israel Airlines hereby jointly apply for statements of authorization under 14 CFR Part 212 and for related exemptions under 49 USC 40109 in order to engage in reciprocal codeshare services between the United States and Israel and beyond.

American holds underlying route authority to serve between U.S. points and Tel Aviv (certificate for Route 137, segment 5, Order 1996-5-9, May 6, 1996). By this application, American seeks any additional exemption authority as required to display AA* on El Al-operated flights consistent with the governing Protocol.

El AL holds underlying route authority to serve between Israel and the U.S., both directly and via intermediate points. See Order 1986-3-58, March 19, 1986. By this application, El Al seeks any additional exemption authority as required to display LY* on American-operated flights consistent with the governing Protocol.

Counsel: Zuckert Scoutt, John Gillick, 202-973-7939, jegillick@zsrlaw.com for El Al / American, Carl Nelson, 202-496-5647, carl.nelson@aa.com



December 18, 2007

Answer of United Air Lines

To the extent that the carriers are proposing services that are fully consistent with the U.S.-Israel Agreement, United has no objection to their joint application. However, the Agreement strictly limits El Al to a restricted number of points in the United States (a total of 28 - 17 points plus New York and the 10 points allowed for direct service) and named points in Canada. The carriers have given notice of at least one point—Vancouver, Canada—which is beyond the scope of the Agreement. Without knowing what U.S. cities Israel has named as code-share points within the allowed limits, United cannot say whether the other code-share services proposed are consistent with the Agreement. Given the anti-competitive limits that have been agreed to protect Israeli carriers from competition with U.S. carriers under third country code-share arrangements, United urges the Department to adhere to the limits of the Agreement unless Israel adopts a more pro-competitive stance on the Agreement, especially as it relates to code-share authority for U.S. carriers.

United urges the Department to approve the instant application only to the extent that they are consistent with the terms of the Agreement and, before granting any such approvals, to resolve the issues relating to third-country code-share services pending in Docket OST-2002-12192 so that United and other U.S. carriers may proceed with their plans to offer additional third-country code-share services to Israel.

Counsel: United, Julie Oettinger, 202-296-2370, julie.oettinger@united.com



December 26, 2007

Joint Reply of American and El Al Israel

The Department should reject United's attempt to link approval of the American-El Al codeshare application with a ruling that agrees with United's interpretation of Article 1, Section 3 of the U.S.-Israel Agreement. There is no proper basis for action in this docket to be held hostage to approval of United's theory. In any event, the Department rejected United's position in 2001.

The short answer to United's "creative," but nonetheless erroneous, interpretation of Section 3 is that the Department got it right in Show-Cause Order 2001-4-24, issued a little over three months after the U.S.-Israel consultations were concluded on January 10, 2001, in describing the proper operation of Section 3 of Article 1. The U.S.-Israel Agreement has worked for nearly seven years in providing codesharing opportunities for airlines of both Parties, and United has not provided any, much less a compelling, reason for the Department to change its previously-expressed interpretation

Counsel: Zuckert Scoutt, John Gillick, 202-973-7939, jegillick@zsrlaw.com for El Al / Carl Nelson, 202-496-5647, carl.nelson@aa.com for American



Filed December 4, 2007 | Issued March 28, 2008

Notice of Action Taken | Word

Exemptions under 49 USC §40109 and statements of authorization pursuant to 14 CFR 212 of the Department’s regulations to engage in reciprocal code-share services between the United States and Israel and beyond.

American currently holds underlying route authority to serve between U.S. points and Tel Aviv (see Order 1996-5-9).  In the instant docket, American seeks any additional exemption authority as required to display American’s “AA*” code on El-Al-operated flights consistent with the Protocol between the United States and Israel dated July 11, 2001, as most recently extended by an Exchange of Notes dated March 30, 2007.  El Al currently holds underlying route authority to serve between Israel and the United States, both directly and via intermediate points (see Order 1986-3-58).  In the instant docket, El Al seeks any additional exemption authority as required to display El Al’s “LY*” code on American-operated flights consistent with the governing protocol.

By: Paul Gretch



August 14, 2008

30-Day Notice of Additional Codesharing

American Airlines, Inc. and El Al Israel Airlines Ltd., under Notice of Action Taken in this docket on March 27, 2008, Appendix D, condition (b), hereby notify the Department that no sooner than 30 days from now the additional codeshare services listed below will be implemented. All LY* passengers carried on American-operated flights will originate, terminate, or connect in Israel.

LY* on American:

Dallas/Ft. Worth-Toronto
Los Angeles-St. Louis
Newark-Indianapolis
Newark-Miami
JFK-Barcelona
JFK-Milan
JFK-Las Vegas
JFK-Orlando
JFK-Pittsburgh
JFK-San Juan
JFK-Tampa

Counsel: Zuckert Scoutt, John Gillick, 202-973-7939 for El Al / Carl Nelson, 202-496-5647 for American


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