BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Joint Application of UNITED AIRLINES, INC. and Docket DOT-OST-2014- ETHIOPIAN AIRLINES ENTERPRISE for statements of authorization pursuant to Part 212 (U.S.-Ethiopia) Application of UNITED AIRLINES, INC. Docket DOT-OST-2004-19148 for an exemption pursuant to 49 U.S.C. 40109 (blanket codeshare authority) JOINT APPLICATION OF UNITED AIRLINES, INC. AND ETHIOPIAN AIRLINES ENTERPRISE FOR BLANKET STATEMENTS OF AUTHORIZATION AND AMENDED EXEMPTION Communications with respect to this document should be sent to
Hershel I. Kamen Senior Vice President-Alliances, Regulatory and Policy Daniel A. Weiss Managing Director-International Affairs and Regulatory UNITED AIRLINES, INC. 233 South Wacker Drive 10th Floor HDQIZ Chicago, IL 60606 (872) 825-6828 hershel.kamen@united.com dan.weiss@united.com Steve Morrissey Managing Director-Regulatory Affairs and Policy Karine R. Faden Managing Counsel-Regulatory, Antitrust & Competition UNITED AIRLINES, INC. 1225 New York Avenue, NW Suite 1100 DCAIZ/DCALD Washington, DC 20005 (202) 521-4373 (202) 521-4363 steve.morrissey@united.com karine.faden@united.com Thomas Newton Bolling Vice President and Deputy General Counsel Abby L. Bried Associate General Counsel-Regulatory, Alliances & International UNITED AIRLINES, INC. 233 South Wacker Drive 11th Floor HDQLD Chicago, IL 60606 (872) 825-8068 (872) 825-7415 thomas.bolling@united.com abby.bried@united.com Gerald F. Murphy Steven J. Seiden CROWELL & MORING LLP 1001 Pennsylvania Avenue, NW Washington, DC 20004 (202) 624-2500 gmurphy@crowell.com sseiden@crowell.com Counsel for United Airlines, Inc. Michael F. Goldman SILVERBERG, GOLDMAN & BIKOFF, L.L.P. 1101 30th Street, NW, Suite 120 Washington, DC 20007 (202) 944-3305 mgoldman@sgbdc.com Counsel for Ethiopian Airlines Enterprise May 23, 2014 NOTICE The Joint Applicants request expedited treatment of this application. They will poll U.S. carrier representatives and inform the Department of the results.
BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. ----------------------------------------------------------------------- Joint Application of UNITED AIRLINES, INC. and Docket DOT-OST-2014- ETHIOPIAN AIRLINES ENTERPRISE for statements of authorization pursuant to Part 212 (U.S.-Ethiopia) Application of UNITED AIRLINES, INC. Docket DOT-OST-2004-19148 for an exemption pursuant to 49 U.S.C. 40109 (blanket codeshare authority) JOINT APPLICATION OF UNITED AIRLINES, INC. AND ETHIOPIAN AIRLINES ENTERPRISE FOR BLANKET STATEMENTS OF AUTHORIZATION AND AMENDED EXEMPTION United 1 and Ethiopian Airlines (the Joint Applicants ) apply pursuant to Part 212 of the Department s regulations for blanket statements of authorization to provide reciprocal United/Ethiopian Airlines codeshare services in foreign air transportation pursuant to the United 1 Common names are used for airlines.
Joint Application of United and Ethiopian Airlines Page 2 States-Ethiopia open-skies agreement. 2 United also applies, pursuant to 49 U.S.C. 40109 and Rule 302 of the Department s Rules of Practice, for amendment of its blanket exemption from 49 U.S.C. 41101 to authorize United to provide codeshare services on flights operated by Ethiopian Airlines to points neither in open-skies countries nor listed in United s certificate or exemption authority upon 30 days notification to the Department, as United has been allowed to do with its other codeshare partners. See Notice of Action Taken dated May 12, 2014 in Docket DOT-OST-2004-19148, at n. 1. The Joint Applicants request that the codeshare statements of authorization be granted for an indefinite period, and United requests that its exemption authority be granted for a period of at least two years. The Joint Applicants urge the Department to act promptly on this application 3 so that they can secure foreign authority, make final operating plans and begin marketing the proposed codeshare services, which they plan to commence on or about August 1, 2014, provided all necessary approvals have been secured. 4 The Joint Applicants state as follows in support of their application 1. The Joint Applicants request authority to provide valuable U.S.-Ethiopia and third-country codeshare services which will serve the public interest. United and Ethiopian Airlines codeshare service will enhance airline competition on international routes to benefit passengers and shippers and expand the United and Ethiopian Airlines networks. Moreover, the blanket codeshare statements of authorization requested will give the applicants flexibility to 2 See Air Transport Agreement between the Government of the United States of America and the Government of the Federal Democratic Republic of Ethiopia (signed May 17, 2005). 3 The Joint Applicants will conduct a poll of all carrier representatives listed on the service list and advise the Department of the results. 4 The Joint Applicants are submitting a redacted copy of their Codeshare Agreement in these dockets under separate cover.
Joint Application of United and Ethiopian Airlines Page 3 meet marketplace demands and... enable them to maximize the rights available under... openskies agreement[s], as the Department has concluded in approving other blanket codeshare applications. Order 1998-4-8 at 3. 2. The Joint Applicants request blanket statements of authorization to implement their proposed codeshare services and notify the Department that, upon grant of this application, they intend to provide open-skies codeshare services in accordance with the Department s Notice In the Matter of Blanket Notification of Code-Share Service to Open-Skies Partners and Points dated February 9, 2009. Specifically, the Joint Applicants seek statements of authorization permitting United to display the ET* designator code on United flights and Ethiopian Airlines to display the UA* designator code on Ethiopian Airlines flights in conjunction with foreign air transportation of persons, property and mail (i) between any point(s) in the United States and any point(s) in Ethiopia (on a nonstop basis and on routings via intermediate points); (ii) between U.S. points; (iii) between Ethiopian points; (iv) beyond Ethiopia to any point(s); and (v) beyond the U.S. to any point(s). The Joint Applicants initial codeshare notices appear in Appendices A and B, 5 and they will notify the Department no later than 30 days before commencing any codeshare services covered by this application to/from non-open-skies points or on routes for which they do not otherwise hold authority. 6 5 Initially, United s UA* designator code will be placed on Ethiopian Airlines flights between Ethiopian Airlines North American gateways and Addis Ababa and beyond to, N Djamena, Chad; Mombasa, Kenya; Victoria, Seychelles; Dar es Salaam, Kilimanjaro and Zanzibar, Tanzania; Ndola, Zambia; Brazzaville, Lumumbashi and Pointe Noire, Congo; Djibouti, Djibouti; and Blantyre and Lilongwe, Malawi, and Ethiopian Airlines ET* designator code will be placed on United s flights between Washington (Dulles) and Chicago; Tampa; Orlando; Boston; San Francisco; Las Vegas; San Diego; Denver; Los Angeles; Seattle; Atlanta; Charlotte; Indianapolis; Cleveland; Knoxville; New York; Columbus; Raleigh/Durham; Newark; Pittsburgh; Philadelphia; and Honolulu. 6 The Joint Applicants accept the Department s standard conditions on limitedentry third-country codeshare services
Joint Application of United and Ethiopian Airlines Page 4 3. Similar blanket codeshare authority has been granted to numerous U.S. and foreign airline codeshare partners. See, e.g., Notices of Action Taken dated June 11, 2012 in Dockets DOT-OST-2012-0088 and DOT-OST-2004-19148 (United/EVA) and March 2, 2010 in Dockets DOT-OST-2010-0024 and DOT-OST-2004-19148 (United/Brussels Airlines). The Joint Applicants are fit, willing and able to provide the proposed codeshare services and already hold underlying route authority to offer such services on open-skies routes as well as on routes for which they hold specific authority. See, e.g., United Order 2013-4-11 (reissuing United/Continental authorities to United), Order 2007-4-19 (blanket open skies), and Notice of Action Taken dated May 12, 2014 in Docket DOT-OST-2004-19148 (blanket worldwide codesharing); and Ethiopian Airlines Order 2007-5-3 (foreign air carrier permit). 7 Accordingly, the Joint Applicants only require statements of authorization to institute most of the proposed codeshare services. 4. United, however, also requires supplemental exemption authority to fully implement the proposed codeshare agreement and maximize its flexibility to provide global codeshare services by placing its code on Ethiopian Airlines flights serving points for which United does not otherwise hold authority. United has worldwide blanket exemption authority to codeshare on a third-country basis with other foreign carriers. See Notice of Action Taken dated May 12, 2014 in Docket DOT-OST-2004-19148, at n. 1. United asks the Department to amend this exemption authority to permit similar United codeshare services on flights operated by Ethiopian Airlines. 7 Pursuant to Rule 24 of the Department s Rules of Practice, the Joint Applicants request that the Department take official notice of all information and data that have been filed to establish their fitness.
Joint Application of United and Ethiopian Airlines Page 5 5. The proposed United and Ethiopian Airlines codesharing is consistent with the U.S.-Ethiopia open-skies agreement, which authorizes liberal codesharing between airlines from the U.S. and Ethiopia. Granting this application is in the public interest because it will provide substantial consumer benefits by enhancing the service options available to the U.S. traveling public for travel between the U.S. and Ethiopia, including the online connections via United's extensive North American route network and Ethiopian Airlines' hub at Addis Ababa. 6. The Joint Applicants will conduct their codesharing activities in compliance with Part 257 of the Department's regulations and any other applicable conditions, rules and regulations. The codesharing authority requested here will have no impact on United's Civil Reserve Air Fleet commitments. Ethiopian Airlines is IOSA-certified, and United will coordinate with the Federal Aviation Administration on the safety audit process. WHEREFORE, the Joint Applicants urge the Department to grant immediately the requested statements of authorization and amended exemption authority and any other relief the Department may deem necessary or appropriate. Respectfully submitted, SILVERBERG, GOLDMAN & BIKOFF, L.L.P. Michael F. Goldman imizoldm.an.(4)sgbdc.com. Counsel for Ethiopian Airlines Enterprise be-e-s24 CROWELL & MORING LLP Steven J. Seiden gmurphva,crowell.com sseiden(a),crowell.com Counsel for United Airlines, Inc. May 23, 2014
APPENDIX A INITIAL CODESHARE NOTICE (OPEN-SKIES) The Joint Applicants provide blanket notice to engage in reciprocal open-skies codeshare services as follows beginning on or about August 1, 2014, provided all necessary approvals have been secured Between any point(s) in the United States and any point(s) in Ethiopia, on a nonstop basis and intermediate routings via open-skies points; Between points in the United States; Between points in Ethiopia; Beyond Ethiopia to any open-skies point(s); and Beyond the United States to any open-skies point(s)
APPENDIX B INITIAL CODESHARE NOTICE (NON-OPEN-SKIES) The Joint Applicants plan to begin codeshare service on the following non-open-skies route segments on or about August 1, 2014, provided all necessary approvals have been secured. Route Segments Marketing/Operating Carrier Addis Ababa - Brazzaville, Congo Addis Ababa - Lumumbashi, Congo Addis Ababa - Pointe Noire, Congo Addis Ababa - Djibouti, Djibouti Addis Ababa - Blantyre, Malawi Addis Ababa - Lilongwe, Malawi
CERTIFICATE OF SERVICE I certify that I have this date served the foregoing document on the following persons in accordance with the Department's Rules of Practice msinick@ssd.com howard.kass@aa.com robert.wirick@aa.com sascha.vanderbellen@delta.com sametta.c.barnett@delta.com chris.walker@delta.com jrichardson@johnlrichardson.com jcanny@amerijet.com jhill@cooley.com perkmann@cooley.com nssparks@fedex.com sllunsford@fedex.com gbleopard@fedex.corn mlbenge@zsrlaw.com jhfoglia@zsrlaw.com jyoung@yklaw.com dkirstein@yklaw.com anita.mosner@hklaw.com jennifer.nowak@hklaw.com john.s.duncan@faa.gov dwight.moore@ustranscom.mil urskr@state.gov May 23, 2014