Application for Exemption Authority
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OST Docket Filings for January 13, 1999 |
Last Updated Jan 14, 1999 12:30 P.M.
Philadelphia US-Italy Brief Available in FastPDF
Applications and Renewals:
Air Jamaica - Montego-Houston | Continental Micronesia - Route 171 | HeavyLift
Answers and Replies:
US-Brazil Combination | US-Italy - Briefs | United and Mexicana
Notices of Action Taken:
None
Notices and Orders:
1998 US-South Africa Third-Country Codeshare Opportunities
| OST-99-5001 | January 13, 1999 | Application for Exemption Authority |
Scheduled Combination Service between Montego Bay and Houston | HTML |
| Service List |
Counsel: Air Jamaica and Hogan Hartson, George Carneal, 202-637-6547
| OST-99-5002 | January 13, 1999 | Application for Renewal |
Certificate of Public Convenience and Necesity for Route 171 |
| Service List |
Continental Micronesia has continued to provide service between Guam/Saipan and Osaka, although United, which was awarded authority at the same time, has discontinued its service. Continental Micronesia is furnishing an important service to Guam/Saipan and the traveling and shipping public. This route is important to Continental Micronesia s Asian services.
Counsel: Crowell Moring, Bruce Keiner, 202-624-2615
| OST-99-5000 | January 12, 1999 | Application for Emergency Exemption |
Wichita-Boeing Field, Seattle |
| Boeing's Letter in Support | |||
| Service List |
These shipments, in all respects, are identical to those approved in Docket OST 98-4794 for operation of identical charter flights between November 25 and December 15, 1998.
Counsel: Miller Hamilton, Lester Bridgeman, 334.432.1414
United Air Lines, Inc. and Compania Mexicana de Aviacion, S.A. de C.V.
| OST-97-3237 | January 13, 1999 | Joint Motion of United Air Lines and Mexicana
for Immediate Action |
US-Mexico Codesharing | HTML |
The Department has imposed an informal moratorium on the expansion of U.S.-Mexico transborder code shares involving U.S. and Mexican carriers pending bilateral resolution of code-share issues between the two governments. However, the Department recently granted a similar request by Delta and Aeromexico stating that, "in deferring action on pending requests, it was never our intent to affect adversely existing services that we had already found to be in the public interest." The instant motion for immediate action does not involve any expansion of United's transborder code-share services, but only a continuation of such services for which United already holds a designation. Unless this motion is granted, United will be forced to discontinue services to Huatulco which the Department has already determined to be in the public interest. To avoid that result, United and Mexicana urge the Department to grant their pending joint application in this proceeding to the limited extent requested above. Because United is already designated for both the Chicago-Huatulco and Los Angeles-Huatulco city pairs, there is no mutual exclusivity and no other pending applicant for authority to serve these markets would be prejudiced by grant of the instant motion.
Counsel: Squire Sanders, Robert Papkin, 202-626-6601 / Kirkland Ellis, Jeffrey Manley, 202-879-5161
1998 U.S.-Brazil Combination Service Case
| OST-98-3863 | January 13, 1999 | Answer of Continental Airlines to Objections |
1998 US-Brazil Combination Service Case | HTML |
Over the longer term, the public benefits of nonstop Houston-Sao Paulo service clearly outweigh any benefits from United's Los Angeles-Sao Paulo service. Continental's Houston-Sao Paulo service will strengthen Continental's growing international gateway at Houston, allow Continental to compete effectively with American for traffic between the U.S. and points throughout Brazil, offer alternatives to American's Miami and Dallas/Ft. Worth hubs, Delta's Atlanta hub and United's Miami and Los Angeles gateways and Chicago hub and provide enhanced competition between the U.S. and Brazil. Continental serves more destinations nonstop via its Houston hub than any other applicant serves nonstop via its proposed gateway and provides many more daily departures at Houston than any other applicant provides at its proposed gateway. Continental's successful entry into Houston-South America markets, including the Houston-Lima, Houston-Caracas and Houston-Bogota routes, shows the importance of expanding Houston as a gateway for South America. United is already serving the Los Angeles-Sao Paulo route with its partner Varig, so United's interim service can be provided without a major investment. If United's interim Brazil service is successful, United has the possibility of code-sharing on additional flights by its Star Alliance partner, Varig, if additional Brazil frequencies do not become available through bilateral negotiations.
Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2500
| OST-98-3863 | January 13, 1999 | Answer of The City of Houston and The Greater Houston
Partnership |
1998 US-Brazil Combination Service Case | HTML |
Delta and United have failed to raise any arguments or issues that warrant any action by the Department other than the finalization, without amendment, of its tentative decision. Those objections completely fail to undermine the substance of the Department's detailed and thoroughly well reasoned decision recognizing the superiority of Continental's Houston proposal.
Counsel: Zuckert Scoutt, Rachel Trinder, 202-298-8660
| OST-98-3863 | January 13, 1999 | Answer of The City of Los Angeles |
1998 US-Brazil Combination Service Case | HTML |
Los Angeles joins with United in urging the Department to reverse its tentative decision and allow United to implement its nonstop Los Angeles-Sao Paula service. Los Angeles is a better choice than Houston or New York, particularly where the carriers proposing to service those cities have decided for their own corporate purposes to delay service until much later in the year. At the very least, Los Angeles urges that United be given a temporary license for a longer period than the Department has proposed. United says that it is willing to start service if it is given a two-year temporary award. Los Angeles urges that the Department make such an award in its final order.
Counsel: Los Angeles, Raymond Ilgunas, 310-646-5252
| OST-98-3863 | January 13, 1999 | Consolidated Answer of United Air Lines |
1998 US-Brazil Combination Service Case | HTML |
United again urges the Department to select United as the primary carrier or, at tile very least modify the interim allocation to United as described above and in United's Objections. United opposes any reopening of the record to the extent that such action would delay either a final decision awarding the frequencies to United as primary carrier or an order modifying the interim allocation to United as proposed herein. United would have no objection to the reopening of the record, however, as Delta urges, if that action is accompanied by an immediate modification of the interim allocation to allow United to operate Los Angeles-Sao Paulo service for a two-year period.
Counsel: United and Kirkland Ellis, Jeffrey Manley, 202-879-5161
1999 U.S.-Italy Combination Service Case
| OST-98-4854 | January 13, 1999 |  Brief of American
Airlines |
1999 US-Italy Combination Service Case |
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
| OST-98-4854 | January 13, 1999 | Brief of The City
of Chicago |
1999 US-Italy Combination Service Case |
Counsel: Chicago and Winthrop Stimson, Kenneth Quinn
| OST-98-4854 | January 13, 1999 | Brief of Delta Air
Lines |
1999 US-Italy Combination Service Case |
| Attachment A: Delta Will Carry More Passengers from the Underserved Southeast than An Other Applicant | |||
| Attachment B: Delta Will Carry More Passengers from the Underserved Southern Tier Than Any Other Applicant |
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
| OST-98-4854 | January 13, 1999 | Brief of The
Georgia & Atlanta Parties |
1999 US-Italy Combination Service Case |
Counsel: Bill Alberger
| OST-98-4854 | January 13, 1999 | Brief of The City
of Philadelphia Division of Aviation |
1999 US-Italy Combination Service Case |
Counsel: Philadelphia and GKMG
| OST-98-4854 | January 13, 1999 | Brief of US Airways |
1999 US-Italy Combination Service Case |
| Appendix A: Delta Air Lines Announces Expansion of Service to Europe in Summer 1999 - Press Release |
Counsel: US Airways and O'Melveney Myers, Joel Burton
1998 US-South Africa Third-Country Codeshare Opportunities
| Order 99-1-5 OST-98-4755 |
Issued December 18, 1998 Served January 15, 1999 |
Final Order |
Delta to Codeshare with Air France Serving Johannesburg |
As stated above, Continental has concentrated on two principal areas in opposing our tentative decision. First, Continental argues that we failed to give sufficient decisional weight to its proposed service from its Newark hub. In fact, we fully recognized the public benefits of Continental’s proposed service at Newark in our show-cause order. However, we tentativelymconcluded that this factor did not afford Continental a decisional advantage in the context of this proceeding and Continental has not now persuaded us otherwise. The fact is, both Continental and Delta proposed service from New York, with Continental serving from Newark and Delta from JFK. Both of these airports currently receive South Africa service from two other U.S. carriers. Although Newark is a hub for Continental, Delta also proposed service from two of its hubs, in addition to its service at JFK, as well as service to five other cities, including one community that does not now receive U.S. carrier on-line service. In these circumstances, while Continental’s service from its Newark hub is certainly a positive feature of its proposal, we do not find that it outweighs the combined attributes of Delta’s overall proposal. Second, Continental argues that its selection in this case would stimulate competition by facilitating service by two new hub networks and, thus, would produce greater public benefits than would the selection of Delta. We agree with Continental that maximizing the number of network services competing in the U.S.-South Africa market is an important public interest consideration. Indeed, we included that factor along with the important service factors noted above in tentatively determining that Delta was the better choice in this case. Like Continental, Delta would provide a competing network service to the existing services of Northwest and United, and its proposal presents the additional benefit of offering competing service at a number of communities that would not receive service under Continental’s proposal. Thus, we maintain our view that Delta’s proposal offers the best combination of service and competitive benefits and warrants its selection in this case.
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