BA European Ltd. t/a OpenSkies / British Airways

OST-2008-0064 - Foreign Air Carrier Permit and Exemption - EU-US

February 15, 2008

Application for a Foreign Air Carrier Permit and Exemption Authority

Motion to Withhold Information from Public Disclosure

OpenSkies is a start-up carrier and was incorporated in 2007. The carrier intends to provide services linking the European Union with the United States. Initially, OpenSkies will focus on service from Paris to New York. OpenSkies intends to subsequently expand its service to other European points such as Amsterdam, Brussels, Frankfurt, and Milan as well as other U.S. points.

OpenSkies initially intends to operate service between Paris and New York, carrying British Airways' code (BA*) on its flights in addition to the OpenSkies EC code. As OpenSkies expands its services between Europe and the United States, it intends to carry British Airways' code on those flights as well. British Airways holds authority to offer service between Europe and the United States pursuant to its foreign air carrier permit issued by Order 2007-10-1 on July 23, 2007.

The name "OpenSkies" is intended to be a metaphor for expanded opportunities in the aviation industry and to reflect new service made available by the new US-EC Agreement. OpenSkies intends to pursue those new opportunities, as well as additional possibilities resulting from expanded liberalization.

OpenSkies intends to expand its service to connect other European points such as Amsterdam, Brussels, Frankfurt and Milan with New York as well as other US points. OpenSkies will initially operate one B-757 aircraft and it anticipates operating a second B-757 later this year. OpenSkies intends to increase its fleet to six B-757 aircraft by the end of 2009.

Counsel: Garofalo Goerlich, Don Hainbach, 202-776-3970, dhainbach@ggh-airlaw.com

May 9, 2008

Supplement No. 1

By application dated February 15, 2008, BA European Ltd t/a OpenSkies requested (1) issuance of a foreign air carrier permit and interim exemption authority and (2) a statement of authorization to the extent necessary to enable OpenSkies to display the BA* designator code of British Airways on flights operated by OpenSkies between Europe and the United States.

OpenSkies is now submitting its Scheduled Route License No. 8/062 issued by the Civil Aviation Authority on May 9, 2008 and authorizing OpenSkies to operate aircraft on scheduled flights for the carriage of passengers and/or cargo and/or mail between any combination of points anywhere in the world. This will also serve to advise the Department that OpenSkies will rely on the British Airways Family Assistance Plan previously submitted in Docket OST-1998-3304.

OpenSkies has now submitted all information required to enable the Department to issue the requested foreign air carrier permit and corresponding exemption authority as well as the requested statement of authorization to display the BA* designator code.

Counsel: Garofalo Goerlich, Don Hainbach, 202-776-3970, dhainbach@ggh-airlaw.com

Order 2008-5-19
OST-2008-0064 - Foreign Air Carrier Permit and Exemption - EU-US

Issued and Served May 15, 2008

Order Granting Exemption and Statement of Authorization and to Show Cause

We grant the request of BA European Ltd. t/a OpenSkies for an exemption under 49 U.S.C. §40109 to permit it to conduct: (a) foreign scheduled and charter air transportation of persons, property and mail from any point or points behind any Member State of the European Union, via any point or points in any Member State and via intermediate points to any point or points in the United States and beyond; (b) foreign scheduled and charter air transportation of persons, property and mail between any point or points in the United States and any point or points in any member of the European Common Aviation Area; (c) foreign scheduled and charter cargo air transportation between any point or points in the United States and any point or points; (d) other charters pursuant to the prior approval requirements set forth in 14 CFR Part 212 of the Department’s regulations; and (e) transportation authorized by any additional route rights made available to European Community carriers in the future.

We grant the request of BA European Ltd. t/a OpenSkies for confidential treatment of its financial submissions.

We grant, for an indefinite duration, the request of BA European Ltd. t/a OpenSkies for a statement of authorization under 14 CFR Part 212 to the extent necessary to display the designator code of British Airways Plc on flights operated by OpenSkies to and from the United States.

With respect to the applicant’s request for a foreign air carrier permit in this proceeding, we direct all interested persons to show cause why our tentative decision on that application, set forth above, should not be made final. Any interested person objecting to the issuance of an order making final our tentative findings and conclusions with respect to the applicant’s request for a foreign air carrier permit shall, no later than twenty-one calendar days after the date of service of this order, file with the Department.

By: Paul Gretch