OST-2007-28997 - Aloha Airlines - Hawaii-Japan Codeshare with United

Aloha and United have entered into a broad strategic alliance and agreed to pursue a number of initiatives designed to strengthen their respective operations to and from Hawaii, and over Hawaii's inter-island routes, and to reduce their costs. One of these initiatives is an arrangement under which Aloha will place its two letter designator code on all flights operated by United between points in Hawaii and points in Japan. Aloha hereby requests an exemption pursuant to Section 40109 to the extent necessary to permit it to codeshare with United as described in this application.

Specifically, on or about September 30, 2007, assuming that all necessary approvals have been obtained, Aloha will commence placing its two letter "AQ" designator code on the following flights to be operated by United:

As noted above, Aloha and United have agreed to codeshare on all flights to be operated by United between Hawaii and Japan. Accordingly, the precise flights on which codesharing operations are conducted may vary over time. Aloha therefore requests that it receive authority to codeshare with United between all points in Japan and all points in Hawaii so that any future changes in flight patterns will not require further action on the part of the Department.

To the extent necessary, Aloha further requests that it be designated to perform the codeshare operations described herein in accordance with the terms of Part IV (Cooperative Marketing Arrangements) of the 1998 Memorandum Of Understanding between the United States and Japan. Aloha understands that a designation is available, if needed. Since these flights will be performed by United, an incumbent carrier within the meaning of the MOU and since they will also carry the code of a Japanese carrier (All Nippon Airways), they will not be counted against the numerical limitations on same country codeshare flights established in accordance with the MOU.

Scheduled foreign air transportation of persons, property, and mail between points in Hawaii and points in Japan. The carrier proposes to operate this service under a code-share arrangement with United Air Lines, Inc.

Aloha and United have entered into an arrangement whereby Aloha will place its “AQ” code on all United flights between points in Hawaii and points in Japan.