Order 2010 - 8 - 5 UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Is sued by the Department of Transportation on the 10 th day

of August , 2010 Served: August 13 , 2010 Jo int 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

ORDE R 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 It al y. The Joint Complainants allege d that the Government of Italy was in violation of its obligations under the U.S. - It aly A ir Transport Agreement, because the Government of It aly

h ad failed to authorize the Joint Complainants to engage in third - country c ode sharing with their respective European airline partners, v ia European intermediate points, between the United States and Milan’s Li nate airport. S pecifically , the Joint Complainants argue d that the Italian carrier Alitalia serve d the U.S. - Li nate market in three way s: (1) by on - line service between Li nate and th e U.S. with its own flights from Linate to a European gateway s uch 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 one stop connections via Rome; and (3) by di splaying the code of Air France on Alitalia - operated Linate Paris services, connecting to Air France - operated transatlantic segments. The Joint Complainants argued that , under these circumstances, they h ad be en placed at a substantial disadvantage in competing for U. S. - Ital y traffic. In July 2 005, by O rder 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. - Ital y Air Transport Agreement but, rather, invo lved the rights of carriers operating under other air service regimes. The Department stated that, in the circumstances U N I T E D S T A TE S O F A M E R I C A D E P A R T M E N T O F T R

A N S P O R T A T I O Npresented, 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 It aly has now implemented new practices permitting U.S. carriers to engage in third country code - sharing at Linate . W ith 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. ACCORDI

NGLY, 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.