1 Order 201 2

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- 21

- Corrected Copy Served: June 2 7 , 2012



### UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

o n the 25 th Day of June , 201 2

Joint Application of

AIR CANADA, THE AUSTRIAN GROUP, BRITISH MIDLAND AIRWAYS LIMITED, 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.

to amend Order 2007

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- 16 under 49 U.S.C. §§ 41308 and 41309 so as to approve and confer antitrust immunity Docket DOT

- OST

- 2008

- 0234

Joint Application of

THE AUSTRIAN GROUP BRITISH MIDLAND AIRWAYS LIMITED 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.

under 49 U.S.C. §§ 41308 and 41309 for approval of and antitrust immunity for Alliance Expansion Agreements and an Amended Coordination Agreement Docket OST

- 2005

- 22922

U.S.

- U.K. Alliance Case Docket OST

- 2001

- 11029

ORDER TERMINATING ANTITRUST IMMUNITY

Until recently, British Midland Airways Limited (“BD”) participated in an immunized alliance with Star Alliance members United, Lufthansa, Austrian, Brussels Airlines, Swiss, SAS, LOT,2 and TAP. 1 BD ’s antitrust immunity became effective in 2008

. 2 In 2009, Lufthansa acquired BD, but then

, in 2011, decided to s ell the unit to the International Airlines Group, which owns “oneworld” alliance member s British Airways and Iberia

.
On April 19, 2012, Lufthansa filed a notice in the docket regarding BD’s status. 3 Lufthansa states that its sale of BD has closed, and as a consequence,

... BD’s participation in all alliance agreements with the Immunized Carriers as well as its participation in the Transatlantic Joint Venture Agreement among Air Canada, Continental Airlines, United Air Lines, and Lufthansa terminates effec tive April 19, 2012. Accordingly, effective April 19, 2012, the Immunized Carriers relinquish antitrust immunity with respect to BD....

Based upon this information, it is clear that BD no longer participates in the immunized alliance. The Department will, therefore, terminate BD’s grant of antitrust immunity as a matter of record. We are placing copies of this order in all related dockets and we will serve interested parties.

A CCORDINGLY :

1. We terminate the antitrust immunity held by British Midland Airwa ys Limited:

a. By striking Ordering Paragraph 1 of Order 2009

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- 10, as amended by Order 2011

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- 16, and replacing it with the following text, including the footnote (new text is shown in bold underline; deleted text is shown as stricken):

We approve and gra nt antitrust immunity to the Alliance Agreements between and among Air Canada, The Austrian Group, British Midland Airways, Ltd., Brussels Airlines NV/SA, Continental Airlines, Inc., Deutsche Lufthansa AG, Polskie Linie Lotnicze LOT S.A., Scandinavian Airl ines System, Swiss International Air Lines Ltd., TAP Air Portugal, and United Air Lines, Inc., and the majority

- owned affiliates of the aforementioned carriers , in so far as such agreements relate to foreign air transportation; 4

1 See, e.g.

, Order 2011

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- 16 (Nov. 16, 2011), Docket DOT

- OST

- 2008

- 0234. 2 See Order 2007

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- 12 (Sept. 12, 2007) (making BD’s antitrust immunity effective on Mar. 30, 2008), Docket DOT

- OST

- 11029. 3 Letter from Arthur J. Molins, General Counsel of Lufthansa German Airlines North America, to Todd M. Homan, Director of DOT’s Office of A viation Analysis, dated April 19, 2012, filed in Docket DOT

OST

- 2008

- 0234 on April 23, 2012. 4 Alliance Agreements shall mean those agreements referred to on page 2, Footnote 2, and Exhibit JA

- 1, of the Joint Application filed on July 23, 2008, as well as those agreements referred to in Exhibit JM

- 1 of the Joint Motion filed on April 21, 2011. Effective immediately, the Department considers the term “Joint Applicants,” as used in the orders in Docket DOT

- OST

- 2008

- 0234 to apply to all carriers with effectiv e grants of antitrust immunity

. include Brussels Airlines.3 b. By striking Ordering Parag raph 11 of Order 2009

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- 10

, as amended by Order 2011

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- 16, and replacing it with the following text (deleted text is shown a s stricken) :
We direct Air Canada, The Austrian Group, British Midland Airways, Ltd., Brussels Airlines NV/SA, Continental Airline s, 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 withdraw, or to remain withdrawn, from participation in any International Air Transport Association tariff coordination activities that discuss any proposed through fares, rates, or charges applicable between the United States and any countries whose airlines have been or are subsequently granted antitrust immunity, or renewal ther eof, to participate in similar alliance activities with a U.S. airline(s);

c. By striking Ordering Paragraph 13 of Order 2009

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- 10

, as amended by Order 2011

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- 16, and replacing it with the following text, including the footnote (deleted text is shown as str icken) :

We direct Air Canada, Austrian, British Midland Airways, Ltd., Brussels Airlines NV/SA, Deutsche Lufthansa, Polskie Linie L otnicze LOT, Scandinavian Airlines System, Swiss, and TAP Air Portugal to continue to report full

- itinerary Origin

- Destination Survey of Airline Passenger Traffic for all passenger itineraries that include a U.S. point; 5

This termination shall apply to all previous grants of antitrust immunity made to British Midland Airways Limited in Dockets DOT

- OST

- 2001

- 11029, 6 DOT

- OST

2005

- 22922, and DOT

- OST

- 2008

- 0234

. By:

SUSAN L. KURLAND Assistant Secretary for Aviation and International Affairs

An electronic v ersion of this document is available at: http://www.regulations.gov

5 We treat the foreign airlines’ O&D data as confidential, do not allow U.S. airlines any access to the data, and do not allow foreign airlines any access to U.S. airline O&D Survey data. We use these data only for internal analytical purposes. 6 BD initially made its request for antitrust immunity in Docket DOT

- OST

- 2001

- 10575. However, t he Department consolidated that request with another matter into Docket DOT

- OST

- 2001

- 11029

, in which the r equest was ultimately granted.