Air One S.p.A. / US Airways, Inc.

OST-2005-22809 - Air One - Exemption and Statement of Authorization - Italy-Europe-US
OST-2008-0225 - US Airways - Exemption and Statement of Authorization - US-Italy-Europe

July 15, 2008

Application of Air One for Amendment of Exemption and Statement of Authorization and Application of US Airways for an Exemption and Statement of Authorization - Bookmarked

Hereby seek Department authorization for expanded codeshare activities. Air One, an Italian combination air carrier, hereby seeks to amend the exemption authority and Statement of Authorization granted to it in Docket OST-2005-22809 in order to expand its scheduled foreign and domestic air transportation of persons, property and mail pursuant to a codeshare agreement with US Airways by allowing the placement of US Airways' US* designator code on Air One's transatlantic and European flights and amending Air One's exemption authority to allow Air One to place its AP* designator code on US Airways' transatlantic and connecting domestic flights. US Airways, meanwhile, seeks an exemption and statement of authorization allowing it to place its designator code on Air One's transatlantic and European flights, and to carry Air One's designator code on US Airways' transatlantic flights and connecting domestic flights.

On February 25, 2008, Air One filed in Docket OST-2008-0073 an application for exemption authority to engage in scheduled foreign air transportation of persons, property, and mail, using its own aircraft, (i) between Milan, Italy (Malpensa Airport) and Boston, Massachusetts; and (ii) between Milan, Italy (Malpensa Airport) and Chicago, Illinois. This application was granted by Notice of Action Taken dated March 17, 2008.

On March 27, 2008, US Airways and Air One entered into a new Code Share Agreement, replacing an earlier codeshare agreement dated September 1, 2005. One June 26-27, 2008, Air One inaugurated transatlantic service between Milan and Chicago and Milan and Boston.

Air One now seeks an expansion of its exemption authority to allow it to place its AP* designator code on flights operated by US Airways between Europe and the United States, and on domestic flights connecting with transatlantic service operated by either US Airways or Air One. Air One further seeks an amendment of its Statement of Authorization to allow it to display US Airways' US* designator code on its flights within Europe and flights between Europe and the United States.

Air One has subsequently received, in dockets 2005-22809 and 2008-0001, expanded exemption authority and a statement of authorization to allow codesharing with United Airlines. Air One contemporaneously applied, in Docket OST-2008-0072, for a foreign air carrier permit. That application is currently pending.

US Airways requests a statement of authorization to display the AP* designator code of Air One on flights operated by US Airways between Europe and the United States, and on domestic flights connecting with transatlantic service operated by either US Airways or Air One. US Airways further seeks an exemption to enable it to place its US' designator code on Air One flights within Europe and flights between Europe and the United States.

Counsel: US Airways, Howard Kass, 202-326-5153 / Sher & Blackwell, Mark Atwood for Air One