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 IBERIA LÍNEAS AÉREAS DE ESPAÑA SOCIEDAD ANÓNIMA OPERADORA (IBERIA), COMPANÍA OPERADORA DE CORTO Y MEDIO RADIO IBERIA EXPRESS, S.A.U. (IBERIA EXPRESS), and AIR NOSTRUM LÍNEAS AÉREAS DEL MEDITERRÁNEO, S.A. (AIR NOSTRUM) 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) Application of COMPANÍA OPERADORA DE CORTO Y MEDIO RADIO IBERIA EXPRESS, S.A.U. (IBERIA EXPRESS) DOT-OST for exemption authority pursuant to 49 U.S.C and a statement of authorization under 14 CFR Part 212 (U.S.-Europe) Application of AIR NOSTRUM LÍNEAS AÉREAS DEL MEDITERRÁNEO, S.A. (AIR NOSTRUM) for exemption authority pursuant to 49 U.S.C and a statement of authorization under 14 CFR Part 212 (within Spain and Spain-third country codeshare with American) DOT-OST JOINT APPLICATION OF US AIRWAYS, INC., PIEDMONT AIRLINES, INC. AND PSA AIRLINES, INC. AND IBERIA LÍNEAS AÉREAS DE ESPAÑA SOCIEDAD ANÓNIMA OPERADORA (IBERIA), COMPANÍA OPERADORA DE CORTO Y MEDIO RADIO IBERIA EXPRESS, S.A.U. (IBERIA EXPRESS) AND AIR NOSTRUM LÍNEAS AÉREAS DEL MEDITERRÁNEO, S.A. (AIR NOSTRUM) FOR STATEMENTS OF AUTHORIZATION AND RELATED EXEMPTION AUTHORITY

2 Communications with respect to this document should be sent to: 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 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 Iberia, Iberia Express, and Air Nostrum 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.

3 BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Joint Application of US AIRWAYS, INC., PIEDMONT AIRLINES, INC., and PSA AIRLINES, INC. and IBERIA LÍNEAS AÉREAS DE ESPAÑA SOCIEDAD ANÓNIMA OPERADORA (IBERIA), COMPANÍA OPERADORA DE CORTO Y MEDIO RADIO IBERIA EXPRESS, S.A.U. (IBERIA EXPRESS), and AIR NOSTRUM LÍNEAS AÉREAS DEL MEDITERRÁNEO, S.A. (AIR NOSTRUM) 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) Application of COMPANÍA OPERADORA DE CORTO Y MEDIO RADIO IBERIA EXPRESS, S.A.U. (IBERIA EXPRESS) DOT-OST for exemption authority pursuant to 49 U.S.C and a statement of authorization under 14 CFR Part 212 (U.S.-Europe) Application of AIR NOSTRUM LÍNEAS AÉREAS DEL MEDITERRÁNEO, S.A. (AIR NOSTRUM) for exemption authority pursuant to 49 U.S.C and a statement of authorization under 14 CFR Part 212 (within Spain and Spain-third country codeshare with American) DOT-OST JOINT APPLICATION OF US AIRWAYS, INC., PIEDMONT AIRLINES, INC. AND PSA AIRLINES, INC. AND IBERIA LÍNEAS AÉREAS DE ESPAÑA SOCIEDAD ANÓNIMA OPERADORA (IBERIA), COMPANÍA OPERADORA DE CORTO Y MEDIO RADIO IBERIA EXPRESS, S.A.U. (IBERIA EXPRESS) AND AIR NOSTRUM LÍNEAS AÉREAS DEL MEDITERRÁNEO, S.A. (AIR NOSTRUM) 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 Iberia Líneas Aéreas de España Sociedad Anónima Operadora ( Iberia )

4 and its affiliates Companía Operadora de Corto y Medio Radio Iberia Express, S.A.U. ( Iberia Express ) and Air Nostrum Líneas Aéreas del Mediterráneo, S.A. ( Air Nostrum ) (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 Codeshare Agreement between Iberia and American Airlines, Inc. ( American ). The Carriers plan to codeshare between points in the United States and the 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. 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 Iberia, 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 Iberia in order to ensure a consistent relationship between Iberia and both US Airways and American. A copy of the Iberia-American codeshare agreement, which also covers affiliates such as Piedmont, PSA, Iberia Express and Air Nostrum, is on file with the Department. 2. US Airways and PSA request statements of authorization for blanket codeshare authority to display Iberia s IB* 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; 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. 2 Under the American Iberia 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 2

5 (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 Iberia s IB* 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. Iberia requests a statement of authorization for blanket codeshare authority to display US Airways US* designator code on flights operated by Iberia (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 the EU and any point or points in third countries. Iberia Express and Air Nostrum request statements of authorization for blanket codeshare authority to display US Airways US* designator code on flights they operate between EU points, and beyond the EU to any point or points in third countries. The specific routes that are initially covered by the above codesharing arrangement are described in Appendix B 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 Iberia Express and Air Nostrum will carry traffic under the US* code only as part of a through transatlantic service. 3

6 6. 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. Iberia currently 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 the European Common Aviation Area (Order , p.3.) By Notice of Action Taken dated March 13, 2008, in docket DOT-OST , the Department granted Iberia a Statement of Authorization to display American s AA* designator code on flights operated by Iberia between (1) points in Spain; (2) points in Spain and points in the United States (either nonstop or via intermediate points in third countries); (3) points in Spain and points in third countries; and (4) points in the United States and points in third countries. 4 Pursuant to the Department s Notice in the Matter of Blanket Notification of Codeshare Service to Open-Skies Partners and Points, February 9, 2009, American and Iberia provided blanket notification on May 27, 2010, in docket DOT-OST 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 non-open skies countries. 8. Iberia Express currently holds exemption authority to engage in foreign air transportation of persons and property to the extent necessary to display the AA* code of American Airlines, Inc. (American) on Iberia Express flights within the EU and between the EU and third countries. It also holds a corresponding Statement of Authorization under Part 212 permitting it to display the AA* designator code of American on flights operated by Iberia Express within the EU and between the EU and third 4 By Order , the Department transferred the Statement of Authorization previously issued to Iberia Líneas Aéreas de España, S.A. (old Iberia) to Iberia Líneas Aéreas de España Operadora (new Iberia). 4

7 countries (Notice of Action Taken (NOAT), July 19, 2012, DOT-OST ). Iberia Express respectfully requests extension of its existing exemption authority and codeshare authorization to the extent necessary to also enable it to display the US* designator code of US Airways on flights operated by Iberia Express within the EU and between the EU and third countries. Iberia Express further requests that its existing exemption authority granted in connection with its request to display the AA* designator code be made coterminous with the exemption authority to list the US* designator code requested here. 9. Air Nostrum was previously granted exemption authority to the extent necessary to permit Air Nostrum to display the AA* designator code of American Airlines, Inc. (American) on flights within Spain, and between Spain and third countries pursuant to the codeshare agreement between American and Iberia. It was also granted a statement of authorization to permit Air Nostrum to display the AA* designator code of American on flights within Spain, and between Spain and third countries pursuant to Iberia s codeshare agreement with American (NOAT, May 24, 2010, DOT-OST ). Although Air Nostrum s statement of authorization was granted for an indefinite period, its exemption authority was granted for a two-year period, and due to an administrative oversight, was not renewed prior to expiration. Air Nostrum respectfully requests reinstatement of the exemption authority previously granted in Docket DOT-OST , and extension of that exemption authority, and of its codeshare authorization, to the extent necessary to enable it to display the US* designator code of US Airways as well as the AA* designator code of American on flights operated by Air Nostrum within the EU and between the EU and third countries. Air Nostrum requests that the exemption authority granted in connection with its request to display the AA* designator code be made coterminous with the exemption authority to list the US* designator code requested here Aviation relations between the United States and Spain 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 5 To the extent necessary, Air Nostrum hereby incorporates by reference the exemption application it submitted in Docket DOT-OST The information stated in that application remains accurate. 5

8 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.) 11. 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 Iberia and their respective affiliates are fully consistent with the public interest and DOT policy. As the Department has noted: 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 ) 12. 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) 6

9 days in advance of any new codeshare operation 6 and to notify the Department of any codeshare operation the carriers have agreed to discontinue. 7 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. 13. US Airways has completed a review of the IATA Operational Safety Audits ( IOSA ) performed on Iberia, Iberia Express, and Air Nostrum, and 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 September 24, 2013, for Iberia; August 14, 2013, for Iberia Express; and January 6, 2014, for Air Nostrum. 14. The Carriers intend to begin operating the proposed codeshare service 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. 6 To the extent necessary, US Airways and Iberia and their respective affiliates 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. 7 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 Iberia, Air Nostrum, Iberia Express, US Airways, Piedmont, or PSA, should be deemed notice given for each of the carriers. 7

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11 Appendix A Iberia Codeshare on US Airways Operated Flights ROUTING To/From Charlotte, North Carolina (CLT): Barcelona, Spain (BCN) Boston, Massachusetts (BOS) Brussels, Belgium (BRU) Chicago, Illinois (ORD) Dublin, Ireland (DUB) Frankfurt, Germany (FRA) Lisbon, Portugal (LIS) London, England (LHR) Madrid, Spain (MAD) Manchester, England (MAN) Miami, Florida (MIA) New York, New York (JFK) Paris, France (CDG) Rome, Italy (FCO) To/From Boston, Massachusetts (BOS): New York, New York (LGA) Phoenix, Arizona (PHX) Washington, DC (DCA) To/From Phoenix, Arizona (PHX): Chicago, Illinois (ORD) Los Angeles, California (LAX) New York, New York (JFK) To/From Philadelphia, Pennsylvania (PHL): Amsterdam, Netherlands (AMS) Athens, Greece (ATH) Barcelona, Spain (BCN) Boston, Massachusetts (BOS) Brussels, Belgium (BRU) Chicago, Illinois (ORD) Dublin, Ireland (DUB) Edinburgh, Scotland (EDI) Frankfurt, Germany (FRA) Glasgow, Scotland (GLA) Lisbon, Portugal (LIS) London, England (LHR) Los Angeles, California (LAX) Madrid, Spain (MAD) Manchester, England (MAN) Miami, Florida (MIA) Munich, Germany (MUC) Paris, France (CDG) Rome, Italy (FCO) Shannon, Ireland (SNN) Venice, Italy (VCE) Zurich, Switzerland (ZRH)

12 To/From Madrid, Spain (MAD): Alicante, Spain (ALC) Arrecife, Spain (ACE) Barcelona, Spain (BCN) Bilbao, Spain (BIO) Boston, Massachusetts (BOS) Chicago, Illinois (ORD) Granadilla de Abona/Tenerife-South (TFS) La Coruna, Spain (LCG) La Laguna/Tenerife-North (TFN) Las Palmas, Spain (LPA) Lisbon, Portugal (LIS) Los Angeles, California (LAX) Malaga, Spain (AGP) Miami, Florida (MIA) New York, New York (JFK) Oviedo, Spain (OVD) Palma de Mallorca, Spain (PMI) Fuerteventura (Puerto del Rosario), Spain (FUE) Santa Cruz de la Palma (SPC) Santiago de Compestela, Spain (SCQ) Vigo, Spain (VGO) Appendix B US Airways Codeshare on Iberia Operated Flights ROUTING

13 CERTIFICATE OF SERVICE I certify that, on March 28, 2014, I caused to be served a copy of the foregoing Joint Application of US Airways, Piedmont and PSA and Iberia, Iberia Express and Air Nostrum for Statements of Authorization by upon those addressees listed below: urskr@state.gov (Department of State) cristinasa@state.gov (Department of State) esta.rosenberg@dot.gov (Department of Transportation) brian.hedberg@dot.gov (Department of Transportation) todd.homan@dot.gov (Department of Transportation) peter.irvine@dot.gov (Department of Transportation) laura.remo@dot.gov (Department of Transportation) brett.kruger@dot.gov (Department of Transportation) john.s.duncan@faa.gov (Federal Aviation Administration) dan.weiss@united.com (United) steve.morrissey@united.com (United) karine.faden@united.com (United) gmurphy@crowell.com (Counsel for United) sascha.vanderbellen@delta.com (Delta) jhill@cooley.com (Counsel for JetBlue and Hawaiian) perkmann@cooley.com (Counsel for JetBlue and Hawaiian) robert.land@jetblue.com (JetBlue) msinick@ssd.com (Counsel for Alaska) jyoung@yklaw.com (Counsel for Spirit) dkirstein@yklaw.com (Counsel for Spirit) bob.kneisley@wnco.com (Southwest) leslie.abbott@wnco.com (Southwest) ethan.blank@rjet.com (Republic) robert.cohn@hoganlovells.com (Counsel for Republic) patrick.rizzi@hoganlovells.com (Counsel for Republic) john.fredericksen@suncountry.com (Sun Country) thomas.ting@suncountry.com (Sun Country) rpommer@atlasair.com (Atlas) anita.mosner@hklaw.com (Counsel for UPS) jennifer.nowak@hklaw.com (Counsel for UPS) cefelts@fedex.com (FedEx) nssparks@fedex.com (FedEx) kevin.montgomery@polaraircargo.com (Polar) Vanessa C. Krasniewicz