AA reverse code share illegal

IrishSheepdog

Sitting in the median
"AA was under very tight scope limits in 2002. So they created a new code "AX" for American Connection. Instead of Eagle and American Connection codesharing with AA, AA codeshared with AX. A clever way around the problem, but, this suggests, illegal (at least the way AMR did it).

http://www.apapdp.org/pdpblasts/011104.php

APA Wins AX Code Arbitration

APA Wins AX Code Arbitration - Compensation Phase Underway

PDP has learned that APA has won the "AX Code" arbitration case against AMR.

The "AX Code" Arbitration concerned the use of the "AX" code on certain flights, primarily commuter frequencies into and out of STL. The arbitration case addressed other matters related to commuter operations and our Scope clause.

The arbitration has now entered the "compensation" phase. We have learned that the arbitrator has valued AMR's violation of the Scope clause at approximately 15 million dollars.

APA will now have the opportunity to ask AMR for compensation as a result of the arbitrator's award.

While we appreciate the company's weakened financial state, we hope that APA will use this leverage to obtain a significant benefit for the pilots of American Airlines."
 
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