 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

                          						Served: August 22, 2003

NOTICE

Docket OST-2003-15993

U.S.-ISRAEL THIRD-COUNTRY CODE-SHARE OPPORTUNITIES

By this notice we invite U.S. certificated air carriers interested in
using third-country code-share opportunities in the U.S.-Israel market
to file applications as specified below in the captioned docket.

Under a Memorandum of Consultations (MOC) signed on January 10, 2001,
representatives of the United States and Israel reached an ad referendum
agreement on the text of a Protocol amending the 1950 U.S.-Israel Air
Transport Agreement, as amended.  Under the terms of the Protocol, the
U.S. may authorize, on a phased-in basis, up to four code-share
arrangements between U.S. and third-country airlines for service between
the U.S. and Israel.  Authorized U.S.-third country code-share
arrangements may provide services in the U.S.-Israel market in phases as
follows:  Phase 1 – Up to two arrangements until March 31, 2002; Phase
2 – Up to three arrangements from April 1, 2002, through March 31,
2003; and Phase 3 – Up to four arrangements from April 1, 2003,
through March 31, 2004.  The limitations on the number of third-country
code-share arrangements will not apply to any code-share arrangement in
which airlines of the United States, Israel, and a third country are all
participants.  The Protocol provides that, until March 31, 2004,
designated U.S. airlines may serve Tel Aviv, plus seven additional
points to be selected by the United States on a code-share basis, only,
without local traffic rights between third-country points and points in
Israel when the U.S. airline is not the operating carrier.

Based on actions we took to award the available third-country code-share
opportunities during Phases 1 and 2, Northwest Airlines, United Air
Lines, and American Airlines now hold authority to serve the U.S.-Israel
market via intermediate points with their respective code-share
partners, KLM, Lufthansa, and Swiss.  We request that all U.S. air
carriers interested in making use of the one available third-country
code-share arrangement under 

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Phase 3, as described above, file applications with the Department no
later than 

August 29, 2003.  Answers to such applications should be filed by
September 5, 2003.  Replies to answers should be filed by September 9,
2003.

Carriers without the requisite operating authority should file
exemption/designation applications and requests for statements of
authorization to serve the affected markets in conjunction with the
foreign code-share carrier(s) involved.  Carriers with the requisite
underlying authority and statements of authorization need only file
requests for the available code-share opportunity.  All applications
should include, at a minimum, the following information:  (a) the
proposed startup date; (b) the markets to be served, including the
number and identity of U.S. cities that would receive nonstop-to-nonstop
connections in the U.S.-Israel market, and the total elapsed travel time
(including layover time) for each flight between each initial point of
origin and each final destination in both directions (i.e., provide a
total elapsed round-trip travel time for each city pair and break-out
subtotals for the elapsed times on the U.S. to Israel flights and the
Israel to U.S. flights); (c) the number of frequencies to be provided
between the U.S. and Israel and the duration of service if not provided
on a year-round basis for each leg of the flights; 

(d) type of aircraft, including the number of seats to be used between
the U.S. and the intermediate point(s) and between the intermediate
point(s) and Israel; (e) the foreign code-share carrier involved, the
country and the specific intermediate point(s) over which the services
will be provided, and which carrier would be operating each leg of the
flights; (f) existing authority held to conduct the operations, if
applicable; and 

(g) assurance that the U.S. air carrier applicant has provided or will
provide the Department with the Compliance Statement referred to in
Section IV of the DOT Code-Share Safety Program Guidelines (issued
February 29, 2000) concerning a safety audit of the foreign air
carrier(s) involved.  In addition, carriers must provide as a part of
their applications, copies of the relevant cooperative service
arrangements, if not already on file with the Department.  Applicants
are free to submit any additional information that they believe will
help us in making our decision.

Except for the procedural dates, exemption applications should conform
to Part 302, Subpart C of our regulations (14 CFR Part 302).  All
applications (for operating authority and/or designation) should be
filed with the Department of Transportation in the established docket,
Dockets Operations, M-30, Room PL-401, 400 Seventh Street, SW,
Washington, DC  20590.

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We intend to allocate the available code-share opportunity based on the
applications and responsive pleadings filed previously or in response to
this notice.  Should comparative selection procedures be necessary, we
intend to make our decision using written, show-cause procedures in
accordance with Part 302 of our regulations (14 CFR Part 302).

We will authorize service of documents by facsimile and by electronic
mail.  Carriers that are interested in such service, however, should
state if they want service by email and should provide interested
parties with their fax number and/or email address.

We will serve this Notice on all U.S. certificated air carriers
operating large aircraft, the Air Transport Association, and the
National Air Carrier Association.

By:

						PAUL L. GRETCH

					  	         Director         

					   Office of International Aviation

(SEAL)

Dated:  August 22, 2003

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

  HYPERLINK "http://dms.dot.gov//reports/reports_aviation" 
http://dms.dot.gov//reports/reports_aviation  asp.

                       .

 

 The Protocol provides that the frequency of such code-share operation
shall be limited only by the number of frequencies that the operating
airline is entitled to use on the relevant segments, consistent with
relevant bilateral agreements.

 A code-share arrangement between a U.S. carrier and a third-country
carrier that entails code-share services on more than one route would be
counted as one arrangement.  A code-share arrangement between two U.S.
carriers and a third-country carrier would be counted as two
arrangements.

 Selection of points to be served on a code-share basis only may be made
or changed with 30-day notice to the Government of Israel.

 We note that American, Continental and Delta filed applications in
Dockets OST-2003-15516, 2003-15519, and 2003-15440, respectively, for
Phase 3.  We will consolidate these applications and responsive
pleadings already received into the proceeding established by this
Notice.  These carriers, however, are free to supplement or amend their
applications by the date specified in this Notice for new applications. 


 The original submission is to be unbound and without tabs on 8 ½ x 11
white paper using dark ink (not green) to facilitate use of the
Department’s docket imaging system.  In the alternative, filers are
encouraged to use the electronic submission capability available through
the dockets/DMS Internet site (  HYPERLINK "http://dms.dot.gov" 
http://dms.dot.gov ) by following the instructions at web site.

