OST Docket Filings for January 28, 1998
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OST Docket Filings for January 28, 1998
Answers and Replies:
American and TACA (7) | Delta and Aeromexico | JAL
Notices of Action Taken:
None
Notices and Orders:
American | Northwest/KLM | Tradewinds | Order Confirming Notices of Action of Various Carriers | US-Peru
American Airlines, Inc. (Emergency Exemption to Serve Cuzco, Peru)
Order 98-1-29 | OST-97-3073 | Issued and Served January 28, 1998
By this order, we grant American Airlines, exemption authority for one year to serve the New York (JFK)-Cuzco, Peru, market via Lima, Peru
By: Charles Hunnicutt
American Airlines, Inc. et. al. and The TACA Group
OST-96-1700 | January 28, 1998
Objections
of American Airlines
By tentatively rejecting the proposal by American and the TACA Group to engage in codesharing services on a free sale basis, and instead requiring that the applicants convert their contractual agreement into a blocked-space arrangement for a fixed number of seats at a fixed price in certain Miami-Central America city-pairs, the Department has acted contrary to the specific terms of the Open Skies agreements that govern this proceeding.
Counsel: American, Carl Nelson, 202-496-5647
Objections
of Continental Airlines
Rather than injecting a vaccine to halt the spread of Type AA Miami monopolization virus throughout the U.S.-Latin America aviation system, the Department has proposed the regulatory equivalent of "take two aspirins." If the Department is not prepared to develop a vaccine, it must at least prescribe stronger medicine to foster healthy competition in the U.S.-Latin America aviation system.
Counsel: Continental and Crowell Moring, Bruce Keiner
Response of
The Dallas/Ft. Worth International Airport to Order to Show Cause
The Dallas/Fort Worth International Airport (Dallas/Ft. Worth) stands to benefit immensely from implementation of proposed code-sharing between American and TACA Group carriers on the DFW-Central America routes. Therefore Dallas/Ft. Worth urges that the Department grant immediate approval for any American/TACA Group code-sharing on DFW routes while the Department reviews the responses to its Show Cause Order that address the proposed conditions on code-sharing on Miami-Central America routes.
Counsel: Bagileo Silvergerg, Michael Goldman, 202.944.3305
Delta has described in detail in its prior pleadings why the AA-TACA alliance poses a serious threat to competition in the region and why it will not produce the public benefits normally associated with cooperative alliances. The public benefits of the arrangement would be minimal and are clearly outweighed by the injurious competitive effects.
Motion of Delta
Air Lines for Confidential Treatment
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
Clearly, open skies has resulted in a surge of new interest among U.S. carriers in serving Central America, ensuring that no carrier will be able to maintain supra-competitive fares in United States -Central American markets. The inflexibility of a fixed blocked-space arrangement is inconsistent with specific language of the liberal open skies agreements in effect with each of the TACA Group carriers' homelands which specifically authorize cooperative marketing arrangements, and is wholly unnecessary in order to maintain price and service discipline in the affected markets which are already responding to the new competitive services flowing from the open-skies regime.
Counsel: Squire Sanders for LACSA / Mullenholz Brimsek for TACA, Aviateca, COPA, NICA, TACA de Honduras
Objections
of United Air Lines to Tentative Findings and Conclusions in Order
97-12-35
Throughout this proceeding, United has urged the Department to pay particular attention to the competitive issues raised by cooperation between American and the TACA Group at Miami. Because of Miami's unique geographical and economic position with respect to traffic between the U.S. and Central America and other points in the Latin America/Caribbean region, these issues were the most serious raised by the proposed American/TACA Group alliance. Miami accounts for over half the total service between the U.S. and Central America.
Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130
Delta Air Lines, Inc. (Exemption Renewal, Atlanta-Paris)
OST-96-1043 | January 28, 1998
Application
for Renewal of Exemption Authority
Delta has provided continuous service on the Atlanta-Paris route since it commenced service in this market on April 1, 1985. Delta provides year-round daily nonstop service between Atlanta and Charles de Gaulle Airport in Paris using Boeing 767-300 aircraft.
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
Delta Air Lines, Inc. and Aerovias de Mexico, S.A. de C.V. (US-Mexico Codesharing)
OST-97-3289 and Undocketed | January 28, 1998
Joint
Answer of American Airlines and Aero California to Motion of Delta and
Aeromexico
American and Aero California remain of the view that the Department should continue to encourage the Mexican aeronautical authorities to liberalize the availability of codeshare authority, so that designations would not need to be issued on each of thousands of city-pairs for which U.S. and Mexican carriers seek codeshare authority. While we understand that no immediate progress was made in recent bilateral discussions, the Department should make clear that, in granting codeshare authority on a limited number of city-pairs on an incremental basis. the Department is not effectively adopting the Mexican views on this matter. The Department should continue to seek a final resolution of the codeshare issues that separate the United States and Mexico, so that a more orderly and appropriate means of attaining codeshare authority, satisfactory to both governments, may be employed in this market.
Counsel: American, Carl Nelson, 202-496-5647 / Steptoe Johnson, David Coburn, 202-429-8063 for Aero California
Japan Airlines Company, Ltd. (Sendai-Honolulu Combination Service)
OST-95-662 | January 28, 1998
Answer of The
State of Hawaii in Support
Renewal of JAL's Sendai-Honolulu exemption authority will continue to benefit the economic interests of the State of Hawaii and the United States. The promotion and development of Japanese tourism to Hawaii continues to be one of the State's most important economic objectives. Hawaii is the largest U.S. market for Japanese visitors, attracting over 40% of such visitors annually. Japanese visitors contribute billions of dollars each year to the State's economy. It is axiomatic that Hawaii's air travel market is heavily dependent on the availability of efficient, economical and convenient air services. JAL's Sendai-Honolulu service has opened a new region of Japan for nonstop service to Hawaii, and, as a result, has contributed to an increase in Japanese visitors to the State
Counsel: Hawaii and Shaw Pittman, Robert Cohn, 202-663-8060
In the Matter of Northwest/KLM Antitrust Immunity
OST-98-3341 | Served January 28, 1998
On January 20, 1998, American Airlines, Inc. (hereafter "American") filed a petition in Docket OST-98-3341 requesting that the Department institute a public proceeding to review whether the antitrust immunity granted to Northwest Airlines, Inc. (hereafter "Northwest") and KLM Royal Dutch Airlines (hereafter "ALMS') should continue. American also urges the Department to direct Northwest and KLM to make their agreements available to interested parties, and that the Department make public "any agreements it has entered into with Northwest and/or KLM with respect to procedures." Finally, American asks the Department to direct Northwest and KLM to provide information about "slot constraints" at Amsterdam's Schiphol Airport. On January 23, 1998, Northwest and KLM filed a joint motion requesting that the Department extend the period of time for the filing of answers in this matter to February 10, 1998. We grant the motion.
By: Charles Hunnicutt
Northwest Airlines, Inc. (Exemption Renewal, Detroit-Paris)
OST-96-1089 | January 28, 1998
Application
for Renewal of Exemption
Northwest seeks renewal of its authority to provide scheduled foreign air transportation of persons, property and mail between Detroit, Michigan, and Paris, France, on a nonstop basis, and via Frankfurt, Federal Republic of Germany, as an intermediate and/or beyond point with no local traffic rights. Northwest presently provides daily DC-10-40 nonstop service between Detroit and Paris.
Answers are due by February 12, 1998
Counsel: Northwest, Megan Rae Poldy, 202-842-3193
Order 98-1-28 | OST-97-2794 | OST-97-2795 | Issued and Served January 28, 1998
By this order, we confirm our oral action taken on January 23, 1998, granting Tradewinds Airlines, Inc. (Tradewinds) a waiver from the requirements of section 201.5 of the Department's Aviation Economic Regulations.
Attachment A - Service List
By: John Coleman
U.S.-Peru Combination Services
Posted January 28, 1998 | Served January 30, 1998
By this notice, we invite application from all US carriers interested in providing scheduled combination services in the US-Peru market.
By: Paul Gretch
Order Confirming Notices of Action Taken
Order 98-1-23 | Issued January 26, 1998 | Served January 29, 1998
By: Charles Hunnicutt
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