BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

Joint Application of
AIR CANADA, THE AUSTRIAN GROUP, BRITISH MIDLAND AIRWAYS LTD., CONTINENTAL AIRLINES, INC., DEUTSCHE LUFTHANSA AG, POLSKIE LINIE LOTNICZE LOT S.A., SCANDINAVIAN AIRLINES SYSTEM, SWISS INTERNATIONAL AIR LINES LTD., : TAP AIR PORTUGAL AND UNITED AIR LINES, INC.

to Amend Order 2007-2-16 under 49 U.S.C. §§ 41308 and 41309 so as to Approve and Confer Antitrust Immunity Docket DOT-OST-2008-0234

JOINT PETITION OF AIR CANADA, THE AUSTRIAN GROUP, BRITISH MIDLAND AIRWAYS LTD., CONTINENTAL AIRLINES, INC., DEUTSCHE LUFTHANSA AG, POLSKIE LINIE LOTNICZE LOT S.A., SCANDINAVIAN AIRLINES SYSTEM, SWISS INTERNATIONAL AIR LINES LTD, TAP AIR PORTUGAL AND UNITED AIR LINES, INC. Communications with respect to this document should be sentto: David Shapiro Vice President and General Counsel AIR CANADA david.shapiro@aircanada.ca
Dr. Peter Malanik ChiefOperating Officer AUSTRIAN AIRLINES AG peter.malanik@aua.com
Mr. Wolfgang Prock-Schauer ChiefExecutive Officer BRITISH MIDLAND AIRWAYS LIMITED wps@f1ybmi.com Arthur 1. Molins General Counsel North America DEUTSCHE LUFTHANSA AG arthur.molins@dlh.de KrzysztofZiebinski Head ofAlliances and International

Cooperation Department LOT POLISH AIRLINES k.ziebinski@lot.com
Hans Ollongren Senior Vice-President-Corporate Public Affairs SCANDINAVIAN AIRLINES SYSTEM hans.ollongren@sas.seMichael Goldman SILVERBERG, GOLDMAN & BIKOFF, LLP Counsel for SCANDINAVIAN AIRLINES SYSTEM mgoldman(Q)sgbdc.com Ignazio Strano Head ofExternal Relations & Global Alliances SWISS INTERNATIONAL AIR LINES LTD. ignazio.strano@swiss.com
Hans Peter Berchtold lic. iur. Attorney at Law Deputy General Counsel SWISS INTERNATIONAL AIR LINES LTD. hanspeter.berchtold@swiss.com
Jose Guedes Dias Vice President Alliances & External

Relations TAP AIR PORTUGAL gdias@tap.pt Hershel I. Kamen Vice President-International, Regulatory

and Policy UNITED AIRLINES, INC. and CONTINENTAL AIRLINES, INC. hershel.kamen@united.com February 3, 2011 Stephen Morrissey Managing Director, Regulatory UNITED AIRLINES, INC. and CONTINENTAL AIRLINES, INC. steve.morrissey@united.com Daniel A. Weiss Managing Director, International UNITED AIRLINES, INC. and CONTINENTAL AIRLINES, INC. dan.weiss@coair.com Thomas Newton Bolling Managing Attorney, Regulatory Affairs CONTINENTAL AIRLINES, INC. thomas.bolling@coair.comBEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

Joint Application of AIR CANADA, THE AUSTRIAN GROUP, BRITISH MIDLAND AIRWAYS LTD., CONTINENTAL AIRLINES, INC., DEUTSCHE LUFTHANSA AG, POLSKIE LINIE LOTNICZE LOT S.A., SCANDINAVIAN AIRLINES SYSTEM, SWISS INTERNATIONAL AIR LINES LTD., : TAP AIR PORTUGAL AND UNITED AIR LINES, INC.

to Amend Order 2007-2-16 under 49 U.S.C. §§ 41308 and 41309 so as to Approve and Confer Antitrust Immunity

JOINT PETITION OFDocket DOT-OST-2008-0234

AIR CANADA, THE AUSTRIAN GROUP, BRITISH MIDLAND AIRWAYS LTD, CONTINENTAL AIRLINES, INC., DEUTSCHE LUFTHANSA AG, POLSKIE LINIE LOTNICZE LOT S.A., SCANDINAVIAN AIRLINES SYSTEM, SWISS INTERNATIONAL AIRLINES LTD, TAP AIR PORTUGAL AND UNITED AIR LINES, INC.

Pursuant to Ordering Paragraph 8 ofOrder 2009-7-10, Air Canada, l Austrian, British Midland, Continental, Lufthansa, LOT, SAS, Swiss, TAP and United ("Petitioners") ask the Departmentto remove New York-Geneva from the list ofcarved-out city pairs. New YorkGeneva was carved out from the full benefits ofthe antitrust immunity granted by Order 2009-7-10 because one ofthe two Star immunized alliance carriers flying the route nonstop, Swiss, was not then a party to the A++ metal neutral transatlanticjointventure agreement, which the Department approved and immunized in Order 2009-7-10. Now, however, Swiss has been

Common names are used for airlines.Joint Petition ofAir Canada, Austrian, British Midland, Continental, Lufthansa, LOT, SAS, Swiss, TAP and United Page 2 designated as a participant in the A++joint venture, thereby satisfying the Department's prerequisite for removing the New York-Geneva carve out. Petitioners state as follows in support oftheir request: 1. The Department has repeatedly emphasized the public benefits of jointventures. When the Department has approved and immunized alliance agreements which contemplated joint ventures, it has said consumers benefit "from new direct routes, increased frequencies, greater capacity on hub-to-hub and other routes linking the airlines' networks, and associated increases inpassenger volumes" and that "the efficiencies that could be achieved by bringing all the capacity within the JV, including additional cost savings for consumers, would be unlikely with carve outs." (Order 2009-7-10 at 14, 19) Thus, the Department has eliminated pre-existing
carve-outs injoint venture markets because it concluded that "where an integrated 'metalneutral'jointventure is present, carve outs inhibit the realization ofefficiencies and thereby the

consumer benefits resulting from those efficiencies." (Order 2009-7-10 at 20, citing Order 2008-5-32 at 3-4) In granting antitrust immunity to the Petitioners, the Department noted that the carve outs it imposed were "anticipated to be temporary" and invited petitions to terminate

carve outs when the carved out- routes became part of"any integratedjoint venture" or to provide notice when "anew entrant enter[s] a 'carved-out' market with nonstop service" and

secure automatic relief. (Order 2009-7-10 at 18,19,21-22) 2. Air Canada, Continental, Lufthansa, and United have implemented the A++ agreement and provided for participation in the A++jointventure by Swiss and other carriers that are "Controlled Entities" ofLufthansa. Pursuant to those provisions, Lufthansa has designated Swiss as a participant in the A++jointventure. 3. The addition ofSwiss to the A++ arrangement - ajoint venture agreement that the Department has already found to be integrated and metal neutral- satisfies the Department'sJoint Petition ofAir Canada, Austrian, British Midland, Continental, Lufthansa, LOT, SAS, Swiss, TAP and United Page 3 prerequisite for removal ofthe New York-Genevaroute from the carve outs. Therefore, the Petitioners ask the Department to grant this petition to remove the New York-Geneva carve out effective immediately. Prompt action by the Department is necessary to enable the carriers to

move forward withpreparations for full participation by Swiss in the A++jointventure arrangement, including the sharing ofcompetitively sensitive information and other coordination activities regarding services inthe New York-Geneva city pair. Respectfully submitted,

# cJ)~~**~ ~t~'** **%J~N~~~** David Shapiro Michael

### Goldma~ Vice President and General Counsel SILVERBERG, GOLDMAN & BIKOFF, LLP AIR CANADA Counsel for

# ~~**ft7~ ~** **-v~.** Dr. Peter Malanik**~** ChiefOperating Officer AUSTRIAN AIRLINES AG

# ~~6ta--;;7~-S~ Mr. Wol gang Prock-Schauer 

# /l..lj

# 171-

. ChiefExecutive Officer BRITISH MIDLAND AIRWAYS LIMITED

# ~~)?~~"ff> Arthur 1. MoliO General Counsel, North America DEUTSCHE LUFTHANSA AG

Head ofAlliances and International

Cooperation Department LOT POLISH AIRLINES

## ~o~**~~.** Hans Ollongren

# ~ 

# t 0 Senior Vice-President-Corporate Public Affairs SCANDINAVIAN AIRLINES SYSTEM February 3, 2011 14235802 SCANDINAVIAN AIRLINES SYSTEM

# ---=--~**~~** A.o /l

# ~~**~-~ ~~~~:.=..::....:-:.,--------,4'----7'1-~·** **I~** OCl Head ofExternal Relations & Global Alliances SWISS INTERNATIONAL AIR LINES LTD.

# fI-~?~**73A-~eJ<t~~·** Hans Peter Berchtold

### ~ 

# I lic. iur. Attorney at Law Deputy General Counsel SWISS INTERNATIONAL AIR LINES LTD.

I

# --.4-----h----"---'---~----==-=~::....=..-.=D----'----.L=-------=~~i!~· ice President Alliances & External Relations TAP AIR PORTUGAL 

# j.4.LL..J;-**;f~** f, 

# t**~.** Hershel!. Kamen

## ~ t1 Vice President-International, Regulatory

and Policy UNITED AIR LINES, INC. and CONTINENTAL AIRLINES, INC.Joint Petition ofAir Canada, Austrian, British Midland, Continental, Lufthansa, LOT, SAS, Swiss, TAP and United Page 4 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 ofPractice: msinick@ssd.com cdonley@ssd.com carl.nelson@aa.com rpommer(a),atlasair.com sascha.vanderbellen(a),delta.com jeff.morgan@delta.com sametta.c.bamett@delta.com kquinn@pillsburywinthrop.com jennifer.trock@pillsbury.com bob.kneisley@wnco.com charters@evergreenairlines.com ben.graves@evergreenairlines.com jhill@dowlohnes.com 

## irichardson@johnlrichardson.com dkirstein@yklaw.com jyoung@yklaw.com cjsimpson@zsrlaw.com pmurphy@lopmurphy.com anolik@travellaw.com lhayes@CWTVacations.com howard.kass@usairways.com benjamin.slocum@usairways.com

February 3, 2011 michael.deluce@flyporter.com loma.counsell@flyporter.com recohn@hhlaw.com rsilverberg@sgbdc.com nssparks@fedex.com anbird@fedex.com dvaughan@kelleydrye.com efaberman@wileyrein.com mcmillin@woa.com robert.land@jetblue.com matwood@cozen.com kevin.montgomery@polaraircargo.com rbtrinder@zsrlaw.com 

## iasilversmith@zsrlaw.com pruden@asta.org russell.bailey@alpa.org john.allen@faa.gov william.stallings@usdoj.gov dwight.moore@ustranscom.mil