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OST-2002-13958

http://www.airfrance.com/
http://www.alitalia.com/


Societe Air France and Alitalia-Linee Aeree Italiane-S.P.A.

OST-2002-13958 - Blanket Statements of Authorization November 26, 2002 Joint Application for Statements of Authorization US-Italy and US-France Codeshare
    Appendix A:  Codeshare Points  
    Service List  

Seeking blanket statements of authorization that allow the Air France code to be placed on certain Alitalia U.S.-Italy transatlantic flights, and the Alitalia code to be placed on certain Air France U.S.-France transatlantic flights for carriage of the carriers' respective U.S.-Italy/France passengers.  All Air France and Alitalia code-share passengers will have a U.S.-Italy or U.S.-France routing such as Los Angeles-Paris-Rome for an Alitalia passenger. The code-sharing contemplated by the carriers is encompassed by the Alliance Coordination Agreement which the Department granted antitrust immunity to by Order 02-1-6 in Docket OST-01-10429.

Counsel:  Zuckert Scoutt, Richard Mathias, 202-298-8660 for Alitalia / Silverberg Goldman, Michael Goldman, 202-944-3305 for Air France


Societe Air France and Alitalia-Linee Aeree Italiane-S.P.A.

OST-02-13958 December 6, 2002 Answer of United Air Lines US-Italy and US-France Codeshare
    Service List  

United has no objection to approval of this reciprocal code share so long as the governments of France and Italy are prepared to allow United and Lufthansa to engage in similar code shares to the U.S. via points in either France or Italy. Under this arrangement, Lufthansa would code share on United flights operated between, for example, Paris and the U.S. that connected to Lufthansa flights between Paris and points in Germany.

Effective January 21, 2003, United will suspend nonstop service between the U.S. and Milan, Italy, the only point in Italy served by United with its own aircraft. At such time, however, as United resumes service between the U.S. and Italy, it would want to be able to offer the same type of code share service to Lufthansa as that described herein via France.

Counsel:  United and Wilmer Cutler, Jeffrey Manley, 202-663-6670, jeffrey.manley@wilmer.com


Societe Air France and Alitalia-Linee Aeree Italiane-S.P.A.

OST-02-13958 December 6, 2002
Docketed December 9, 2002
Polling Letter US-Italy and US-France Codeshare
    Service List  

With the exception of United Airlines, Inc., which filed an Answer today, the Joint Application is unopposed. Accordingly, Air France and Alitalia request that the Department expedite consideration of their Joint Application so that the carriers may commence the codeshare services described therein by December 23, 2002.

Counsel: Silverberg Goldman, Michael Goldman, 202 944-3300


Societe Air France and Alitalia-Linee Aeree Italiane-S.P.A.

OST-02-13958 December 9, 2002
Docketed December 10, 2002
Reply of Air France and Alitalia US-Italy and US-France Codeshare
    Service List  

French authorities have already approved United/Lufthansa codeshares under the U.S.-France Open Skies Agreement's third country carrier codeshare provision (For example, the United code is carried on Lufthansa's Frankfurt-Nice flights for the carriage of United's U.S.-Nice traffic via Frankfurt). Notice of Action Taken,  Docket OST-98-3732,  May 8, 1998. Air France knows of no reason why approval would not be accorded the specific third-country carrier codeshare service described by United in its answer. 

Of course, Air France would expect that German authorities would approve a comparable codeshare by Air France with its U.S. partner Delta under the U.S.-Germany bilateral, e.g., placing the Air France code on Delta's U.S.-Frankfurt flights for the carriage of Air France U.S.-France passengers via Frankfurt. Since United's answer presents no basis to withhold approval of the Air France/Alitalia Joint Application, and since the parties desire to begin the immediate marketing and sale of the proposed codeshare flights, Air France and Alitalia request that the Department grant the Joint Application promptly.

Counsel: Silverberg Goldman, Michael Goldman, 202 944-3300

OST-02-13958 December 10, 2002 Response of United Air Lines US-Italy and US-France Codeshare
    Service List  

United requests leave to file this response to the reply of Air France and Alitalia in order to inform the Department in greater detail of the reciprocal rights sought by Lufthansa to code share on United flights between Paris, France, and points in the U.S. United's response is timely and will not delay the Department's action in this proceeding.

Counsel:  United and Wilmer Cutler, Jeffrey Manley, 202-663-6670, jeffrey.manley@wilmer.com 


Societe Air France and Alitalia-Linee Aeree Italiane-S.p.A.

OST-02-13958 December 13, 2002 Supplemental Reply of Air France and Alitalia Statements of Authorization

Due to a miscommunication, the third and fourth paragraphs of the Air France/Alitalia Reply contain erroneous statements and should be replaced by the following paragraphs:

Counsel:  Silverberg Goldman, Michael Goldman, 202-944-3305 for Air France / Zuckert Scoutt, Richard Mathias, 202-298-8660 for Alitalia


Societe Air France and Alitalia-Linee Aeree Italiane-S.p.A.

OST-02-13958 December 20, 2002 Supplemental Response of United Air Lines Statements of Authorization

Air France and Alitalia now claim that, while France has approved all United/Lufthansa code shares that are consistent with the third-country code-share terms of the U.S./France bilateral air services agreement, the services proposed by United, whereby Lufthansa will place its code on United's France-U.S. service, are not consistent with the U.S./France ASA. The reason for this, according to Air France, is that Lufthansa does not hold the underlying route rights for such service under the France/Germany ASA.

This, of course, begs the question as to the source of Alitalia's underlying route rights to operate between Italy and the U.S. via France by code sharing on Air France's France-U.S. services. The supplemental reply is curiously silent on this issue.21 The Italy/France ASA is in all likelihood of the same generation and general teens as that between France and Germany. These agreements were concluded before the concept of third-country carrier code sharing had developed, and it is highly unlikely that France and Italy entered into any agreement that would contain the precise underlying authority needed to support Alitalia's code-share services between Italy and several points in the U.S. via France.

United urges the U.S. government to raise this issue as one of utmost importance and urgency with the government of France. United's proposal to carry Lufthansa code-share traffic on its France-U.S. services is an essential element in their alliance and the effort to return United's transatlantic services to profitability. The apparent attempt of France to discriminate between Air France and United in the discretionary approvals of such third-country code shares by their respective partners is inconsistent with the U.S./France ASA and is not, as Air France would have it, merely an internal EU matter.

Counsel:  United and Wilmer Cutler, Jeffrey Manley, 202-663-6670


Societe Air France and Alitalia-Linee Aeree Italiane-S.P.A.

OST-02-13958 January 8, 2003 Approval of Application US-France

We have decided to grant the joint application of Air France and Alitalia for blanket statements of authorization to engage in reciprocal code-sharing services. The code-share services are fully consistent with our open-skies aviation agreements with France and Italy and in the public interest.  While we share United's concerns regarding its ability to implement the code share in question with Lufthansa and have supported with the French the United/Lufthansa request for authority, we have reviewed the record before us and our agreement with France and find that we do not have a right under the U.S.-France Agreement for the Lufthansa services in question. In these circumstances, we do not believe it is in the public interest to withhold the requested authority which falls squarely within rights available in our open-skies agreements with Italy and France.

By: Barbara Schools


OST-2002-13958 - Statement of Authorization - US-France

September 28, 2006

Notice of Additional Codesharing

Pursuant to the blanket statements of authorization granted to Societe Air France and Alitalia-Linee Aeree Italiane-S.P.A. by the Notice of Action Taken dated January 8, 2003, the Joint Applicants hereby notify the Department that, beginning no earlier than 30 days from today, Alitalia’s “AZ” designator code will be displayed on flights operated by Air France between Paris, France and Washington, DC (IAD).

Counsel: Silverberg Goldman, Michael Goldman, 202-944-3305 for Air France / Zuckert Scoutt, Richard Mathias, 202-298-8660 for Alitalia


OST-2002-13958 - Statement of Authorization - US-France

October 6, 2006

Comments of United Air Lines

In their notice Air France proposes to display Alitalia's designator code on Air France flights operated between Paris and Washington, D.C. They do not say what traffic Alitalia will sell on these code-share flights but it will presumably be traffic moving between Italy or points behind Italy and the U.S. via Paris. Normally, United would support such a code-share expansion by carriers from open skies countries since this type of code share offers recognized benefits for consumers. However, both Italy and France have taken actions that have precluded United from offering unrestricted code-sharing. For the reasons set forth below, United urges the Department to use the occasion of this notice to take actions aimed at opening this type of code-share opportunity in France and Italy to United and other U.S. carriers.

While Italy gave assurances that U.S.-Italy code-share services by Alitalia to Linate would be terminated, pleadings filed in Docket OST-2006-24809 demonstrated that these services had been allowed to continue under code shares with Air France via Paris. In that proceeding, United joined in a request to condition the authority of Alitalia and all other Italian flag carriers specifically to prohibit such code shares for services between the U.S. and Linate. Thus far, DOT has prohibited one carrier from doing so (Order 2006-5-4) and certain other carriers have agreed to accept the condition. Only Alitalia has opposed the condition against code-share service between the U.S. and Linate.

Whether or not Alitalia has voluntarily suspended its U.S.-Linate service, DOT should not authorize Alitalia to expand its code-share service to the U.S. via Paris until it has issued an order in response to the pleadings in Docket OST-2006-24809 to prohibit such services in the future by all Italian flag carriers. Failure to impose this condition could result in Alitalia marketing Washington-Linate services via Paris as it has in the past from other U.S. gateways in circumstances where United is prohibited from offering online service to Linate by code sharing with Lufthansa. Such a discriminatory result can be precluded only if DOT grants the relief already requested in Docket OST-2006-24809 before Alitalia is allowed to implement its expanded code-share service via Paris.

Counsel: Wilmer Hale, Jeffrey Manley, 202-663-670, jeffrey.manley@wilmerhale.com


OST-2002-13958 - Statement of Authorization - US-France

October 16, 2006

Answer of Air France and Alitalia to Comments of United

  1. United raises two objections to Alitalia's planned codeshare on Air France's Washington-Paris flights: (1) the alleged discriminatory refusal by France to allow United to display the Lufthansa code on United's U.S.-France flights, and (2) the alleged past offering of online U.S.Milan/Linate services by Alitalia while Italy denies comparable Linate rights to United and other U.S. carriers. Neither United concern is credible.
  2. As to the first ground of objection, the Department has previously acknowledged that "we do not have a right under the U.S.-France Agreement for the Lufthansa services in question." The absence of U.S. bilateral rights at this stage disposes of this objection.
  3. As for the Linate question, Alitalia does not hold out or offer U.S.-Linate services on its current U.S-Paris codeshare services on Air France (see Order 2005-7-22), and Alitalia confirms to the Department and Air France that, in compliance with the Italian Government's traffic distribution rules for Linate Airport, Alitalia will not be holding out or offer Washington-Linate service on the Washington-Paris codeshare service operated by Air France. To be clear and contrary to United's allegations, Alitalia will not be "marketing Washington-Linate services via Paris..."

United's bases for objecting to the planned Alitalia codeshare are groundless, and should be disregarded by the Department.

Counsel: Zuckert Scoutt, Richard Mathias, 202-298-8660 for Alitalia / Silverberg Goldman, Michael Goldman, 202-944-3305 for Air France



January 8, 2009

Joint Application for Blanket Statements of Authorization and Waiver

Initially, Air France will display the AZ* designator code of CAT (replacing Alitalia) on the following transatlantic routes operated by Air France: 

Washington (Dulles) - Paris
Los Angeles - Paris
San Francisco - Paris

Air France currently displays the AZ* code on the following transatlantic routes operated by Air France: Washington (Dulles) - Paris, Los Angeles - Paris, and San Francisco - Paris. In order to allow these codeshare services to continue after CAI closes on the Alitalia transaction, with CAI replacing Alitalia on these services, the Joint Applicants request immediate action on this joint application and a waiver of the Department's 45-day advance filing requirement.

On November 20, 2008, CAI and Alitalia filed a joint application requesting the transfer and reissuance of Alitalia's foreign air carrier permit and exemption authority to CAI, in light of the purchase by CAI of certain of the assets of Alitalia, scheduled to close on or about January 12, 2009. See Joint Application of CAI and Alitalia, dated November 20, 2008, Docket DOT-OST-2007-28728.

Counsel: Zuckert Scoutt, Richard Mathias, 202-973-7917 for Alitalia / Air France and Hogan & Hartson, Robert Cohn, 202-637-4999



January 9, 2009

Re: Polling Results

We have concluded our polling of the U.S. carrier representatives served with the above-referenced Joint Application (dated January 8, 2009), and no carrier representative has objected to the relief sought therein. Accordingly, the Joint Applicants respectfully urge that the requested authority be granted as soon as possible.

Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999



January 9, 2009

Department Action on Application

Joint application of Societe Air France and C.A.I. Compagnia Aerea Italiaua S.p.A. d/b/a Alitalia for reissuance of blanket statements of authorization to permit them to display their respective designator codes on each other's transatlantic flights. The Joint Applicants also request waiver of the 45-day advance filing requirement under 14 CFR Part 212.

The joint appl icants note that CAl Alitalia will purchase certain assets from Alitalia-Linee Italiane S.p.A. on January 12, 2009, with CAl Alitalia assuming operations as Alitalia on January 13, 2009. The joint applicants state that their instant request will enable them to continue code-share services for which authorization was initially granted to Air France and Alitalia in the referenced docket on January 8, 2003. The joint applicants further state that Air France will initially display the "AZ" designator code of CAl Alitalia (replacing Alitalia) on flights operated by Air France in the Washington (Dulles)-Paris, Los Angeles-Paris, and San Francisco-Paris markets.

By: Robert Finamore



May 18, 2009

Notice of Additional Codesharing and Request for Waiver

Air France and Alitalia hereby notify the Department that Alitalia's "AZ" designator code will be displayed on flights operated by Air France between Paris, France, and Philadelphia, Pennsylvania.

Counsel: Zuckert Scoutt, Richard Mathias, 202-973-7917 for Alitalia / Air France and Hogan & Hartson, Robert Cohn, 202-637-4999

Notice In the Matter of Blanket Notification of Code-Share Service



May 21, 2009

Comments of United Air Lines

By their May 18, 2009 Notice, Alitalia and Air France seek to expedite the effectiveness of Alitalia/Air France code-share services in the Paris-Philadelphia market. Normally, such a request would be granted as a matter of course since both carriers are from Open-Skies countries. In this case, however, one of the parties (Alitalia) is the flag carrier of a country that, for over nine years, has discriminatorily denied access to Milan’s Linate Airport to U.S. carriers seeking to offer code-share services to U.S. origin & destination (O&D) traffic on flights operated by their code-share partners between Linate and connecting points in Europe. United is uncertain when this problem will be resolved and is concerned that United continues to be denied code-share access to an otherwise Open-Skies point while its competitors make full use of rights available under the U.S.-EU Open-Skies Agreement.

In fact, during the US-EU Joint Committee meetings held in February, the EU and Italy were unable to offer a resolution of this issue by the March 30, 2009 deadline set by the United States. In a letter dated March 30, 2009, the EU suggested that a resolution would be forthcoming under which U.S. carriers would be able to offer code-share service to Linate for U.S. O&D traffic, but not until the end of June 2009 at the earliest, due to the need of Italy for more time to formulate such a resolution. A Joint U.S.-EU Committee meeting has been scheduled on June 24, 2009, to resolve this long-standing issue of discriminatory treatment.

Given Italy’s continued delay in allowing nondiscriminatory U.S. carrier code-share access to Linate Airport, DOT should decline to allow Alitalia and Air France to expedite implementation of their Paris-Philadelphia code-share service. Moreover, before allowing that service to take effect on the full 30 days’ notice, DOT should ensure that neither Alitalia nor Air France will use that or any other code-share service to carry Linate-Philadelphia traffic under either carrier’s designator code.

Counsel: United, Jeffrey Manley, 301-229-8571



May 26, 2009

Reply of Alitalia and Air France

On May 20, United Air Lines, Inc. filed "Comments" to the Joint Carrier's Notice (No other party has indicated an objection to grant of the requested waiver and commencement of code-sharing services.) urging the Department to "decline to allow Alitalia and Air France to expedite implementation" due to "Italy's continued delay in allowing nondiscriminatory U.S. carrier code-share access to Linate airport." Also, United urges that "before allowing that service to take effect on the full 30 days' notice," the Department should ensure that no Linate-Philadelphia traffic is carried on the code-shared Paris-Philadelphia service, or any other Alitalia/Air France code-share service.

There is no merit to United's claims and the Department should promptly grant the requested 30-day waiver. The Notice and requested waiver have nothing to do with Linate service, nor have the Joint Carriers proposed any Linate code-sharing service. United has again attempted to insert a completely extraneous issue into an element of Alitalia/Air France cooperation. The planned code-share service does not involve holding out or sale of service by Alitalia to or from Linate. Alitalia continues to abide by its voluntary policy of not doing so on any code-share services to the U.S. Therefore, as the Department found in Order 2005-7-22, Alitalia is not and will not be operating with an unfair advantage, and there is no basis to charge Italy with unlawful discrimination.

United's stated motive for requesting that the Department defer action is simply retribution against the government of Italy ("[g]iven Italy's continued delay...", United Comments at 2). But United admits that the "EU suggested that a resolution would be forthcoming" at the June 24 U.S.-EU Joint Committee meeting. Under these circumstances, denial of a routine waiver to commence code-share services on 13 days notice - instead of 30 days notice - would accomplish nothing except to disrupt the operational plans of carriers from Open Skies countries and would deny the traveling public the benefits associated with such services.

Counsel: Zuckert Scoutt, Richard Mathias for Alitalia / Hogan & Hartson, Robert Cohn for Air France

OST-2006-24809 - Motion of American and United to Prohibit All Carriers of Italy from Offering Services Between the US and Milan Linate Airport - May 12, 2006


 

Filed May 18, 2009 | Approved May 28, 2009

Department Approval

We will grant the request of the joint applicants for a waiver of the 30-day prior notice requirement for institution of their proposed Paris-Philadelphia code-share services. We have taken into consideration the comments of United Air Lines, Inc. regarding U.S.-carrier code-share access at Linate. However, we note that the code-share service at issue here does not involve the holding out or sale of service by Alitalia to or from Linate, and Alitalia states that it is not doing so on any codeshare services to the United States. In addition, the proposed code-share service is provided for in the U.S.-EU Air Transport Agreement. Under these circumstances, we find it in the public interest to grant the requested waiver.

By: Robert J. Finamore



July 29, 2009

Re: Notice of Withdrawal of Codesharing

Pursuant to the blanket statements of authorization granted to Societe Air France and Alitalia-Compagnia Aerea Italiana S.p.A. by the Notice of Department Action on Application in this Docket, dated January 9, 2009, Air France and Alitalia hereby notify the Department that, as of October 4, 2009, Alitalia's "AZ" designator code will not be displayed on flights operated by Air France between Paris, France, and Philadelphia, Pennsylvania, as Air France will discontinue service with its own aircraft, and on or about October 7, 2009, Alitalia will list its code on Delta-operated flights to Philadelphia.

Counsel: Zuckert Scoutt, Richard Mathias for Alitalia / Hogan & Hartson, Robert Cohn, 202-637-4999 for Air France



March 21, 2011

Notice of Additional Codesharing and Request for Waiver

Air France and CAI by Notice of Department Action on Application in this Docket dated January 8, 2009, Air France and Alitalia hereby notify the Department of their intent to display Alitalia's "AZ" designator code on flights operated by Air France between Paris, on the one hand, and Atlanta, Detroit, Seattle and Houston, on the other hand. Air France and Alitalia would like to begin displaying the "AZ" code on such flights as soon as possible and thus request a waiver of the 30-day advance notification requirement under condition (b) of the Notice of Department Action.

Counsel: Hogan Lovells, Robert Cohn, 202-637-4999


 

Order 2014-12-16
OST-2014-0210 - Exemption and Foreign Air Carrier Permit - EU-US Open-Skies
OST-2002-12482 - Exemption and Statement of Authorization - US-Mexico/Italy Codesharing
OST-2002-12896 - Statement of Authorization - US-Mexico/Itlay Cdoesharing
OST-2002-13958 - Statements of Authorization - US-Italy/France Codesharing
OST-2001-10417 - Blanket Statements of Authorization - US-italy Open-Skies
Undocketed - Alitalia Long-Term Wet-Lease to CAI First

Issued and Served December 29, 2014

Order Granting Exemption and To Show Cause

By this order we (1) grant the request of Alitalia – Società Aerea Italiana S.p.A. for an exemption under 49 U.S.C. §40109, subject to conditions; (2) grant the request of Alitalia Società for transfer and reissuance of statements of authorization previously granted to Alitalia – Compagnia Aerea Italiana S.p.A. to conduct certain code-share operations with Aerovías de Mexico, S.A. de C.V. (, Société Air France, S.A. , and Delta Air Lines, Inc.; (3) grant the request of Alitalia Società for transfer and reissuance of the statement of authorization previously granted to Alitalia to engage in long-term wet lease operations to Alitalia subsidiary C.A.I. First, S.p.A. ; and (4) tentatively grant the application of Alitalia and Alitalia Società for the transfer of Alitalia’s foreign air carrier permit to Alitalia Società.

The Joint Applicants state that, effective immediately upon completion of the transaction implementation agreement between Alitalia and Etihad Airways P.J.S.C. , a foreign air carrier of the United Arab Emirates, most of Alitalia's assets and liabilities related to Alitalia's air transport services will be transferred to Alitalia Società through a contribution process under Italian law, which effectively entails the continuation by Alitalia Società of Alitalia' s business operations without interruption. The Joint Applicants further state that upon the closing of the Transaction, Alitalia, which is majority owned by EU Member State interests, will ultimately hold a 51% controlling equity stake in Alitalia Società. The Alitalia-Etihad Airways Transaction will close on or about December 31, 2014, at which time Alitalia Società will assume Alitalia's air transport services.

Alitalia Società requested that we grant it, in addition to authority currently contained in the U.S.-EU Agreement, authority to conduct scheduled and charter transportation authorized by any additional route rights made available to EU carriers in the future. We are granting the request of Alitalia Società for this authority by exemption. We are requiring Alitalia Società, before it commences any new service under this authority, to provide us with evidence that it holds a homeland license for that new service, unless it has already provided such evidence.

By: Paul Gretch


 

Order 2014-12-16
OST-2014-0210 - Exemption and Foreign Air Carrier Permit - EU-US Open-Skies
OST-2002-12482 - Exemption and Statement of Authorization - US-Mexico/Italy Codesharing
OST-2002-12896 - Statement of Authorization - US-Mexico/Italy Codesharing
OST-2002-13958 - Statements of Authorization - US-Italy/France Codesharing
OST-2001-10417 - Blanket Statements of Authorization - US-Italy Open-Skies
Undocketed - Alitalia Long-Term Wet-Lease to CAI First

Issued and Served December 29, 2014

Order Granting Exemption and To Show Cause - Corrected Copy

This corrected copy reflects action in Docket OST-2002-13958 rather than OST-2002-13985 and reissuance of statements of authorization to Alitalia Società’s codeshare partners.

By: Paul Gretch



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