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Updated: Wednesday, September 9, 2009 2:25 PM

OST-03-16530 - American and SN Brussels - Antitrust Immunity

Related Dockets:

American Airlines, Inc. and Delta Air Transport, NV d/b/a SN Brussels Airlines

OST-03-16530 - Antitrust Immunity

November 13, 2003

Joint Application for Antitrust Immunity

The proposed American/SN Brussels alliance is a particularly suitable candidate for antitrust immunity because it will not substantially reduce competition in any relevant market. SN Brussels does not currently serve the United States. The only nonstop U.S. -Belgium market served nonstop by American is Chicago-Brussels. Three other U.S. carriers operate nonstop service to Brussels from U.S. gateways - Delta from Atlanta and New York (JFK), Continental from New York (Newark), and United from Washington (Dulles). In addition, the Delta/Air France immunized alliance offers multiple daily on-line routings to Brussels via Paris; the United/Lufthansa immunized alliance offers multiple daily on-line routings to Brussels via Frankfurt; and the Northwest/KLM immunized alliance offers multiple daily on-line routings to Brussels via Amsterdam. The Department should have no concerns that the arrangement proposed here will harm competition in any market.

Exhibit JA-1: Alliance Agreement
Exhibit JA-2: American-SN Brussels Nonstop Routes between the US and Belgium
Exhibit JA-3: All Route between the US and Belgium
Exhibit JA-4: Points Served by American and SN Brussels/Birdy Airlines
Exhibit JA-5: Points Served by American and SN Brussels/Birdy Airlines
Exhibit JA-6: Top 50 European Airports Ranked by Total Originating Passenger Bookings
Exhibit JA-7: US-Europe Annual Passenger Bookings by Carriers
Exhibit JA-8: US-Belgium Annual Passenger Bookings by Carrier
Exhibit JA-9: US-Belgium Alliance Shares

Counsel: AA, Carl Nelson, 202-496-5647, carl.nelson@aa.com for American / Condon Forsyth, Evelyn Sahr, 202-298-0500, esahr@condonlaw.com



November 17, 2003

Joint Motion for Confidential Treatment Under 14 CFR 301.12

Counsel: Condon & Forsyth, Thomas Whalen, 202-289-0500 for SN Brussels / American, Carl Nelson, 202-496-5647



Served November 25, 2003

Notice Providing Access to Documents | Word

On November 13, 2003, American Airlines and its affiliates TWA Airlines LLC, American Eagle Airlines, Inc., and Executive Airlines, Inc. d/b/a American Eagle and Delta Air Transport, NV d/b/a SN Brussels Airlines filed a joint application requesting approval of and antitrust immunity for an alliance agreement. On November 17, 2003, the applicants filed a joint Motion under 14 C.F.R. 302.12 (Rule 12) of our regulations seeking confidential treatment for supporting documents and information.  They state that this material is proprietary, commercially sensitive, and confidential in nature which qualifies for being withheld from public disclosure.  The applicants ask that access to this material be limited to counsel and outside experts for interested parties.

By: Michael Reynolds



December 10, 2003

Joint Supplement of American and SN Brussels

Hereby jointly supplement their application for antitrust immunity, submitted in this docket on November 13, 2003, as follows: American plans to institute daily nonstop service between New York (JFK) and Brussels on May 16, 2004, using B767-300 aircraft with 212 seats (30C/182Y). See attached Press Release issued on December 10, 2003. American's entry in the New York-Brussels market will provide significant consumer benefits by bringing competition to existing services in that market presently operated by Continental Airlines, Inc. (via Newark) and by Delta Air Lines, Inc. (via JFK).

Counsel: AA, Carl Nelson, 202-496-5647, carl.nelson@aa.com for American / Condon Forsyth, Thomas Whalen, 202-289-0500, esahr@condonlaw.com for SN Brussels


December 10, 2003

Joint Motion of American and SN Brussels for Confidential Treatment

Counsel: AA, Carl Nelson, 202-496-5647, carl.nelson@aa.com for American / Condon Forsyth, Thomas Whalen, 202-289-0500, esahr@condonlaw.com for SN Brussels



Served December 23, 2003

Notice Establishing Procedural Dates

We have finished our initial review. We find that the application is now substantially complete. We will require that answers to the application be filed no later than 21 calendar days from the issue date of this Notice, and that replies be filed no later than 7 business days after the last day for filing an answer.

By: Karan Bhatia



Order 2004-04-10
OST-03-16530 -American and SN Brussels - Antitrust Immunity

Issued April 15, 2004

Order Granting Approval and Antitrust Immunity for an Alliance Agreement

By this Order, we grant final approval of and antitrust immunity for an alliance agreement between American Airlines, Inc. and Delta Air Transport, NV d/b/a SN Brussels Airlines under 49 U.S.C. §§ 41308 and 41309. The Department’s action is subject to conditions, as explained further in this Order.

We find that the proposed alliance would provide important public benefits. We have determined that the pro‑competitive effect of global alliances is particularly evident in the case of the behind-gateway and beyond‑gateway markets where integrated alliances with coordinated connections, marketing, and services can offer competition well beyond mere interlining. Integrated alliances can, in short, offer a multitude of new on‑line services to thousands of city‑pair markets, on a global basis. In this case, the record shows that American serves 255 points worldwide and SN Brussels serves 50. There are only four points served by both carriers. Importantly, the record indicates that the integration of their two networks will create up to 11,730 new on‑line markets. Thus, the proposed alliance will benefit consumers by increasing international service options and enhancing competition between airlines, particularly for traffic to or from cities beyond and behind major gateways. Our evaluation of international alliances shows that they stimulate traffic in these connecting markets and thereby increase competition and service options in the overall international market and increase overall opportunities for the traveling public and the aviation industry. The proposed alliance should also allow the Joint Applicants to improve the efficiency of their operations and to otherwise work together to improve service between the U.S. and Belgium, and between the U.S. and other international destinations.

By: Karan Bhatia



September 8, 2009

Re: Termination of Alliance Agreement and Relinquishing of Antitrust Immunity

American Airlines, Inc. and Brussels Airlines N.V. hereby notify the Department that, effective October 24, 2009, they are terminating their alliance agreement and relinquishing antitrust immunity granted by Order 2004-4-10.

Counsel: Eckert Seamans, Evelyn Sahr, 202-659-6622 for Brussels Airlines / Carl Nelson, 202-496-5647 for American



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