BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

Transcription

1 BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Joint Application of US AIRWAYS, INC., PIEDMONT AIRLINES, INC., and PSA AIRLINES, INC. and BRITISH AIRWAYS PLC and OPENSKIES SAS DOT-OST for blanket Statements of Authorization under 14 C.F.R. Part 212 and related exemption authority pursuant to 49 U.S.C (Reciprocal Codesharing) JOINT APPLICATION OF US AIRWAYS, INC., PIEDMONT AIRLINES, INC. AND PSA AIRLINES, INC., AND BRITISH AIRWAYS PLC AND OPENSKIES SAS FOR STATEMENTS OF AUTHORIZATION AND RELATED EXEMPTION AUTHORITY Howard Kass Vice President Regulatory Affairs Abigail Donovan Director, Congressional and Federal Affairs US Airways, Inc H Street, NW, Suite 1075 Washington, DC (202) howard.kass@aa.com abigail.donovan@aa.com Robert A. Wirick Managing Director, Regulatory and International Affairs US Airways, Inc. P.O. Box , MD 5635 DFW Airport, Texas (817) robert.wirick@aa.com Richard Mendles General Counsel, Americas James B. Blaney Senior Counsel, Americas 2 Park Avenue, Suite 1100 New York, New York richard.mendles@ba.com jim.blaney@ba.com Don H. Hainbach Jason E. Maddux Garofalo Goerlich Hainbach PC 1200 New Hampshire Ave, NW, Suite 590 Washington, DC (202) dhainbach@ggh-airlaw.com jmaddux@ggh-airlaw.com Counsel for British Airways Plc and OpenSkies SAS March 28, 2014 NOTICE: Answers to this Application are due April 14, However, the Joint Applicants request expedited treatment of this application. The Joint Applicants will poll the U.S. carrier representatives served with this application and notify the Department promptly of the results of the poll.

2 BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Joint Application of US AIRWAYS, INC., PIEDMONT AIRLINES, INC., and PSA AIRLINES, INC. and BRITISH AIRWAYS PLC and OPENSKIES SAS DOT-OST for blanket Statements of Authorization under 14 C.F.R. Part 212 and related exemption authority pursuant to 49 U.S.C (Reciprocal Codesharing) JOINT APPLICATION OF US AIRWAYS, INC., PIEDMONT AIRLINES, INC. AND PSA AIRLINES, INC., AND BRITISH AIRWAYS PLC AND OPENSKIES SAS FOR STATEMENTS OF AUTHORIZATION AND RELATED EXEMPTION AUTHORITY US Airways, Inc. ( US Airways ) and its affiliates Piedmont Airlines, Inc. ( Piedmont ) and PSA Airlines, Inc. ( PSA ) and British Airways Plc ( British Airways ) and its affiliate OpenSkies SAS ( OpenSkies ) (collectively, the Carriers ) jointly apply for issuance of blanket statements of authorization under 14 C.F.R. Part 212 and related exemption authority pursuant to 49 U.S.C to the extent necessary to implement codesharing arrangements provided for in the Code Share Agreement between British Airways and American Airlines, Inc. ( American ). US Airways and British Airways plan to codeshare between points in the United States and points in the European Union (EU), both nonstop and via intermediate points, and beyond to third country points. They request expedited treatment for this Joint Application, that the requested exemption authorities be granted for a period of at least two years, and that the requested statements of authorization be granted for an indefinite period. 1 In support of this Joint Application, the Carriers submit the following: 1 To the extent necessary, the Carriers request a waiver of the 45-day advance filing requirement specified in Part 212 to enable the codeshare service for which authorization is requested to begin without delay.

3 1. Following the merger of US Airways Group, Inc. and AMR Corp. on December 9, 2013, US Airways and American share the same ultimate corporate parent, American Airlines Group, Inc. and, pursuant to the existing codeshare agreement between American and British Airways, US Airways qualifies as an affiliate of American for the purposes of the existing codeshare arrangement. 2 US Airways and American have elected to include US Airways in the already-existing codeshare arrangement with British Airways in order to ensure a consistent relationship between British Airways and both US Airways and American. A copy of the British Airways-American codeshare agreement, which also covers affiliates such as Piedmont, PSA, and OpenSkies, is on file with the Department. 2. US Airways and PSA request statements of authorization for blanket codeshare authority to display British Airways BA* designator code on flights operated by US Airways and PSA (i) between any point or points in the United States and any point or points in the EU (either non-stop or via third country intermediate points); (ii) between any point or points in the EU and any point or points in third countries; (iii) between U.S. points; and (iv) between any point or points in the U.S. and any point or points in third countries. Piedmont requests a statement of authorization for blanket codeshare authority to display British Airways BA* designator code on flights it operates between points in the United States, The specific routes that are initially covered by the above codesharing arrangement are described in Appendix A. 3. British Airways and OpenSkies request statements of authorization for blanket codeshare authority to display US Airways US* designator code on flights operated by British Airways and OpenSkies (i) between any point or points in the United States and any point or points in the EU (either non-stop or via third country intermediate points); (ii) between any point or points in the United States and any point or points in third countries; (iii) between EU points; and (iv) between any point or points in 2 Under the American British Airways Code Share Agreement, Affiliate means, with respect to any person or entity, any other person or entity, directly or indirectly, Controlling, Controlled by, or under Common Control with, such person or entity (4) any other airline in which, and for so long as, AMR maintains beneficial ownership, directly or indirectly, of at least fifty-one percent (51%) of the outstanding capital stock (or other equity interests) of such airline 2

4 the EU and any point or points in third countries. The specific routes initially covered by the above codesharing arrangement are all routes on which British Airways and OpenSkies already display the American AA* designator code. 4. US Airways currently holds all underlying authority necessary to operate these flights. US Airways is authorized to engage in the scheduled domestic air transportation described in Appendix A pursuant to Certificate of Public Convenience and Necessity for Interstate Air Transportation issued by Order US Airways also holds certificate authority to serve all open skies partners (Order , April 18, 2007, Dockets DOT-OST and DOT-OST ) 5. PSA currently holds all underlying authority necessary to operate these flights. PSA is authorized to engage in the scheduled domestic air transportation described in Appendix A pursuant to Certificate of Public Convenience and Necessity for Interstate Air Transportation issued by Order PSA also holds a Certificate of Public Convenience and Necessity for Foreign Air Transportation issued by Order Piedmont currently holds all underlying authority necessary to operate these flights. Piedmont is authorized to engage in the scheduled domestic air transportation described in Appendix A pursuant to an Air Carrier Certificate issued by the Federal Aviation Administration dated August 5, 1989 and reissued July 7, 1993, and numbered as HNAA001A. Piedmont is registered as an Air Taxi Operator and Commuter Air Carrier under part 298 of the Regulations of the Department of Transportation. 7. British Airways currently holds all underlying authority necessary to operate these flights. British Airways holds a Foreign Air Carrier Permit authorizing it to provide scheduled service 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 [and] between any point or points in the United States and any point or points in any member of the European Common Aviation Area (Order , p.3.) Moreover, by Order , the Department inter alia authorized American and British Airways to engage in blanket reciprocal open-skies codesharing. Pursuant to the Department s Notice in the Matter of Blanket Notification of Codeshare Service to Open- 3

5 Skies Partners and Points, February 9, 2009, American and British Airways provided blanket notification on August 6, 2010, of their intent to engage in reciprocal codeshare services subject to notifying the Department no later than 30 days before commencing any additional codeshare services to or from nonopen skies countries. 8. OpenSkies also currently holds all underlying authority necessary to operate these flights. OpenSkies holds a Foreign Air Carrier Permit authorizing it to provide scheduled service 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 [and] between any point or points in the United States and any point or points in any member of the European Common Aviation Area (Order (Apr. 22, 2009)). OpenSkies also holds a statement of authorization enabling it to display the AA* designator code of American on flights operated by OpenSkies to and from the United States (Order (Jul. 20, 2010), as amended by Order (Mar. 10, 2011) and Order (Nov. 17, 2011)). 9. Aviation relations between the United States and the United Kingdom are governed by the Air Transport Agreement between the United States of America and the European Community and Its Member States ( U.S.-EU Agreement ). The U.S.-EU Agreement expressly permits designated airlines of one Party to enter into cooperative marketing arrangements such as blocked-space or code-sharing arrangements, with a) an airline or airlines of the Parties (U.S.-EU Agreement Article 10, 7.) 10. The Carriers seek permission to engage in these codesharing arrangements in order to more effectively compete by offering better and more fully integrated services to their respective customers. Codesharing allows two carriers to create and market new services together when economic or regulatory obstacles would prevent either from developing those products independently. Such services not only enable the carriers to more effectively compete in the marketplace, but they also have specific benefits for consumers. The codeshare services proposed by US Airways and British Airways are fully consistent with the public interest and DOT policy. As the Department has noted: 4

6 Code sharing and other cooperative marketing arrangements can provide a cost-efficient way for carriers to enter new markets, expand their systems and obtain additional flow traffic to support their other operations by using existing facilities and scheduled operations. Because these cooperative arrangements can give the airline partners new or additional access to more markets, the partners will gain traffic, some stimulated by the new service, and some diverted from incumbents. In this way, cooperative arrangements can enhance the competitive positions of both partners in such a relationship. Increased international code sharing and other cooperative arrangements can benefit consumers by increasing international service options and enhancing competition between carriers, particularly for traffic to or from cities behind major gateways. By stimulating traffic, the increased competition and service options should expand the overall international market and increase overall opportunities for the aviation industry. (U.S. International Air Transportation Policy Statement, April 1995, at 4.) The Department has also recognized that codesharing results in increased passenger convenience by permitting single-carrier reservations and ticketing. (See Continental-SAS, Order ) 11. The Carriers agree to accept the conditions normally applicable to blanket codeshare authority such as requested herein. This includes the requirement to notify the Department thirty (30) days in advance of any new codeshare operation 3 and to notify the Department of any codeshare operation the carriers have agreed to discontinue. 4 The carriers will also ensure compliance with all other applicable Department regulations and policies, including the codeshare disclosure regulations of Part 257. The Carriers also request that the statements of authorization be issued for an indefinite period, so long as their Code Share Agreement continues in effect. Should the Code Share Agreement cease to be effective, the Carriers will notify the Department. Finally, the terms of the Code Share Agreement are fully consistent and do not interfere with US Airways commitment to the Civil Reserve Air Fleet. 3 To the extent necessary, US Airways and British Airways hereby provide blanket notification of their intent to engage in reciprocal codeshare services i) between points in the United States and points in the EU (both nonstop and intermediate routings via open skies points); ii) between points in the United States and points in the European Common Aviation Area where open skies applies; iii) between points in the United States; iv) between points in the EU; v) beyond the EU to open skies points; and vi) beyond the United States to open skies points. 4 For the administrative convenience of the Department and the carriers, and to allow routine schedule changes as may be necessary between mainline and affiliated carrier equipment, notice of specific codeshare routes given to the Department by British Airways, OpenSkies, US Airways, Piedmont or PSA, should be deemed notice given for each of the carriers. 5

7 12. US Airways has completed a review of the IATA Operational Safety Audits ( IOSA ) performed on British Airways and OpenSkies in accordance with the requirements of the DOT/FAA Codeshare Safety Program Guidelines issued December 21, The results of the IOSA audits have been submitted to the FAA for review and were accepted on August 21, 2013, for British Airways, and on January 14, 2014, for OpenSkies. 13. The Carriers intend to begin operating the proposed codeshare arrangements for which authority is requested here upon receipt of all necessary governmental approvals. The Carriers request that the Department act upon this application as expeditiously as possible, and to the extent necessary request a waiver of the 45-day advance filing requirement specified in Part 212 to enable the codeshare service for which authorization is requested to begin without delay. WHEREFORE, on the basis of the foregoing, US Airways, British Airways and their respective affiliates jointly request that the Department grant them the exemption authorities and blanket statements of authorization requested herein to the extent necessary to enable the Carriers to fully implement the codeshare arrangements described above. The Carriers further request that the Department grant them such other relief as it considers to be consistent with this Joint Application and otherwise in the public interest. 6

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9 Appendix A British Airways Codeshare on US Airways Operated Flights ROUTING To/From Boston, Massachusetts (BOS): Pittsburgh, Pennsylvania (PIT) To/From Charlotte, North Carolina (CLT): Barcelona, Spain (BCN) Brussels, Belgium (BRU) Dublin, Ireland (DUB) Fort Myers, Florida (RSW) Frankfurt, Germany (FRA) Jacksonville, Florida (JAX) Las Vegas, Nevada (LAS) Lisbon, Portugal (LIS) London, England (LHR) Madrid, Spain (MAD) Manchester, England (MAN) New Orleans, Louisiana (MSY) Paris, France (CDG) Philadelphia, Pennsylvania (PHL) Rome, Italy (FCO) To/From Philadelphia, Pennsylvania (PHL): Amsterdam, Netherlands (AMS) Athens, Greece (ATH) Atlanta, Georgia (ATL) Baltimore, Maryland (BWI) Barcelona, Spain (BCN) Brussels, Belgium (BRU) Buffalo, New York (BUF) Cancun, Mexico (CUN) Charlotte, North Carolina (CLT) Cincinnati, Ohio (CVG) Cleveland, Ohio (CLE) Columbus, Ohio (CMH) Denver, Colorado (DEN) Dublin, Ireland (DUB) Edinburgh, Scotland (EDI) Fort Lauderdale, Florida (FLL) Fort Myers, Florida (RSW) Frankfurt, Germany (FRA) Glasgow, Scotland (GLA) Greensboro, North Carolina (GSO) Houston, Texas (IAH) Indianapolis, Indiana (IND) Jacksonville, Florida (JAX) Kansas City, Missouri (MCI)

10 Las Vegas, Nevada (LAS) Lisbon, Portugal (LIS) London, England (LHR) Los Angeles, California (LAX) Madrid, Spain (MAD) Manchester, England (MAN) Miami, Florida (MIA) Minneapolis, Minnesota (MSP) Munich, Germany (MUC) Nashville, Tennessee (BNA) New Orleans, Louisiana (MSY) Orlando, Florida (MCO) Paris, France (CDG) Phoenix, Arizona (PHX) Pittsburgh, Pennsylvania (PIT) Portland, Oregon (PDX) Raleigh Durham, North Carolina (RDU) Richmond, Virginia (RIC) Rome, Italy (FCO) San Diego, California (SAN) San Francisco, California (SFO) San Juan, Puerto Rico (SJU) Seattle, Washington (SEA) Shannon, Ireland (SNN) St. Louis, Missouri (STL) Tampa, Florida (TPA) Venice, Italy (VCE) Washington, DC (DCA) West Palm Beach, Florida (PBI) Zurich, Switzerland (ZRH) To/From Phoenix, Arizona (PHX): San Diego, California (SAN)

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