Order 2010-8-5

 

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

 Issued by the Department of Transportation

 on the 10th day of August, 2010

Served: August 13, 2010

Joint Complaint of

 AMERICAN AIRLINES, INC.

 UNITED AIR LINES, INC.

 against

ALITALIA-LINEE AEREE ITALIANE-S.p.A.

 and

THE GOVERNMENT OF ITALY

under Section 2(b) of the International Air Transportation

Fair Competitive Practices Act, as amended

 Docket DOT-OST-2004-19790

ORDER DISMISSING PETITION FOR RECONSIDERATION

By this Order, we dismiss, as moot, the Petition for Reconsideration of Order 2005-7-22 filed by 

American Airlines, Inc. (American) and United Air Lines, Inc. (United) in the captioned proceeding.

On November 24, 2004, American and United (Joint Complainants) filed a complaint under 

Section 2(b) of the International Fair Competitive Practices Act, as amended, 49 U.S.C. 41310, against 

Alitalia and the Government of Italy. The Joint Complainants alleged that the Government of Italy 

was in violation of its obligations under the U.S.-Italy Air Transport Agreement, because the 

Government of Italy had failed to authorize the Joint Complainants to engage in third-country code 

sharing with their respective European airline partners, via European intermediate points, between the 

United States and Milan’s Linate airport. Specifically, the Joint Complainants argued that the Italian 

carrier Alitalia served the U.S.-Linate market in three ways: (1) by on-line service between Linate and 

the U.S. with its own flights from Linate to a European gateway such as Rome or Paris, connecting to 

code-share flights to the U.S. operated by Delta or Air France; (2) by its own aircraft service with onestop connections via Rome; and (3) by displaying the code of Air France on Alitalia-operated LinateParis services, connecting to Air France-operated transatlantic segments. The Joint Complainants

argued that, under these circumstances, they had been placed at a substantial disadvantage in 

competing for U.S.-Italy traffic.

In July 2005, by Order 2005-7-22, the Department dismissed the joint complaint, finding that the first 

of the three asserted advantages of Alitalia no longer existed, and that plans were under way, through 

diplomatic exchanges with the Italian Government, to eliminate the second form of asserted Alitalia 

service advantage. The Department found that the third asserted Alitalia advantage involved services 

that were not operated under the U.S.-Italy Air Transport Agreement but, rather, involved the rights of 

carriers operating under other air service regimes. The Department stated that, in the circumstances 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION
presented, it could not make a public interest finding for the Joint Complainants based on the 

remaining issue raised in the complaint and accord them relief. In dismissing the joint complaint, the 

Department stated that it would, instead, pursue the remaining issue in the context of ongoing 

discussions with the European Union (EU). 

On August 15, 2005, the Joint Complainants filed a petition for reconsideration of Order 2005-7-22. 

The Department deferred action on the petition, and continued to address the remaining issue in the 

context of U.S.-EU talks.1

As a result of the Department’s continued efforts under the U.S.-EU Air Transport Agreement, the 

Government of Italy has now implemented new practices permitting U.S. carriers to engage in thirdcountry code-sharing at Linate. With these new practices, the remaining issue raised in the captioned 

complaint has now been fully resolved. Under these circumstances, we will dismiss, as moot, the 

petition for reconsideration in this matter and terminate the proceeding in Docket DOT-OST-2004-

19790.

ACCORDINGLY,

1. We dismiss, as moot, the Petition for Reconsideration of Order 2005-7-22 filed by American 

Airlines, Inc., and United Air Lines, Inc., in Docket DOT-OST-2004-19790;

2. We terminate the proceeding in Docket DOT-OST-2004-19790; and

3. We will serve this order on all parties listed in the captioned docket in this matter.

By:

PAUL L. GRETCH

Director, Office of International Aviation

An electronic version of this document is available on the World Wide Web at:

www.regulations.gov

 

1

 U.S.-Italy air transportation services are now governed under the provisions of the U.S.-EU Air Transport Agreement.