OST Filings for March 8, 1999

The Government of Aruba has been actively seeking investors for Air Aruba since it acquired a majority interest in the airline. Until Air Aruba is able to form a strategic partnership and receive the capital necessary to further develop its operations and route system, the airline will continue to struggle. Fortunately, the Government of Aruba has successfully negotiated a transaction that will offer Air Aruba the resources it needs, while at the same time preserving its status and route structure as the national flag carrier of Aruba. This is no small feat. Consummation of the transaction, however, is dependent on the Department's prompt affirmation that Air Aruba will continue to be authorized to utilize its U.S. operating authority. If the Department were to delay action here, it would unnecessarily threaten Air Aruba's future, putting at risk important airlinks between the United States and Aruba, a U. S. open skies partner. Such a delay would threaten substantial harm to Air Aruba, the Government of Aruba, and Aruba's tourist-based economy.

Counsel: Kirkland Ellis, Bruce Rabinovitz, 202-879-5116, bruce_rabinovitz@kirkland.com

OST-96-1250
OST-96-1146
OST-95-110
Undocketed

March 8, 1999

Motion for Leave to File an Otherwise Unauthorized Document and Reply of The Hillsborough County Aviation Authority

Reissuance of an Exemption / US-Aruba Codesharing

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Last month, Air Aruba and Continental submitted two applications that by all reasonable measure should be deemed non-controversial. Aviation relations between the United States and Aruba are governed by an open skies agreement under which airlines of both countries have virtually unrestricted operating and code-share rights in third, fourth and fifth freedom markets. In that procompetitive environment, the U.S. interest lies in assisting Air Aruba regain financial strength through privatization; indirect Venezuelan investment in Air Aruba should not be of U.S. concern. Moreover, a code-share arrangement between Air Aruba and a U.S. airline is expressly authorized by the U.S. Aeropostal makes several invalid arguments in an attempt to raise U.S. policy concerns. The first involves timing -- specifically, that the Department should not grant the applications until such time as it also grants a pending Aeropostal/American application for code-share authority in the U.S.-Venezuela market. We respectfully submit that this 'me too' approach should not guide U.S. policy, at least in situations where, as here, the applications deal essentially with different country-pair markets.'' Here, two airlines have proposed a code-share arrangement that is contemplated by the applicable aviation bilateral and is in the public interest. The arrangement should be evaluated and authorized on its own merits.

Counsel: Verner Liipfert, Michael Roberts, 202-371-6000

Continental and Air Aruba Filed an Undocketed Answer on March 5th

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America West Airlines, Inc. and Air China

OST-99-5215	March 8, 1999	Application for a Statement of Authorization	US-China Codesharing
		Commercial Cooperation Agreement >>

America West requests the issuance of a statement of authorization on or before April 1, 1999. This will enable the two carriers to initiate code share operations between Air China's gateways of Los Angeles and San Francisco and the following points on America West's system: Atlanta/Boston /Chicago/ Dallas/Ft. Worth/Houston/Las Vegas/Miami/ Minneapolis/St. Paul/New York/Philadelphia/ Phoenix and Washington. America West plans its initial code-share service to Phoenix and Las Vegas connecting from Air China's service from China through its Los Angeles and San Francisco gateways on or about June 1, 1999. America West further requests that the statement of authorization be made effective for an indefinite period.

Counsel: Baker Hostetler, Joanne Young for Air China

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Atlantic Air Transport Limited

OST-99-5206	March 8, 1999	Application for Exemption	United Kingdom-United States-Beyond Ad Hoc Charters
		Attachment: Foreign Air Carriers Certificate of Insurance
		Attachment: Letter from Windsor Insurance Brokers
		Attachment: British Embassy Diplomatic Note, 9/11/98
		Attachment: OST Form 4523
		Attachment: Air Operator's Certificate
		Attachment: Air Navigation Dangerous Goods Regulations Agreement
		Service List

Engage in foreign air transportation of persons and property between any point or points in the United Kingdom and a point or points in the United States, either directly or via intermediate or beyond points in other countries, with or without stopovers; between any point or points in the Ignited States and any point or points not in the United Kingdom or the United States; and any other charter flights authorised pursuant to Part 212 of the Department's regulations. Atlantic Airlines requests that this application receive expedited treatment in accordance with the 1989 U.S.-U.K. Note regarding Reciprocal Recognition Determinations. Atlantic Airlines respectfully requests that the Department grant Atlantic Airlines the requested authority 23 March 1999 possible to allow commencement of ad-hoc charter services.

By: Atlantic Airlines, Russell Ladkin, 44-1203-882626, opsatlantic@msn.com

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Delta Air Lines, Inc. and Aer Lingus Limited

OST-99-5214	March 8, 1999	Joint Application for Renewal of a Statement of Authorization Scanned Version Microsoft Word 97 Format	New York-Shannon/Dublin
		Service List

Pursuant to the Delta/Aer Lingus Statement of Authorization, Delta currently lists its "DL" designator code on (1) nonstop flights operated by Aer Lingus between New York (JFK) and Shannon, (2) nonstop flights operated by Aer Lingus between New York (JFK) and Dublin, and (3) one-stop service operated by Aer Lingus between Newark, on the one hand, and Shannon and Dublin, on the other hand.

Counsel: Crowell Moring, Lorraine Halloway, 202-624-2538 for Aer Lingus / Delta and Shaw Pittman, Robert Cohn, 202-663-8060

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Delta Air Lines, Inc. and Malev Hungarian Airlines

OST-99-5213	March 8, 1999	Joint Application for Renewal of a Statement of Authorization Scanned Version Microsoft Word 97 Format	New York-Budapest; Frankfurt Badapest
		Service List

As a result of the codeshare/blocked-space arrangement, Delta has been able to maintain its service between New York and Budapest and between Frankfurt and Budapest. Renewal of the Statement of Authorization will allow the traveling public to continue to receive the benefits of Delta's competitive service on these important U.S.-Hungary routes.

Counsel: Hill Betts, Frank Loomis, 212-839-7000 for Malev / Delta and Shaw Pittman, Robert Cohn, 202-663-8060

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Greenville/Spartanburg Airport Commission

OST-99-5130

March 8, 1999

Answer of United Air Lines

High Density Rule - Chicago O'Hare

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The relief GSP proposes, however, is intended to award exemption slots directly to the community in an apparent effort to put the community in control of the carrier selection process. Instead of the type of cooperation which has proved successful in the past, such a proposal would inevitably lead to competition and conflict among carriers and communities over who is to operate these services. The disinterested participation of the Federal government, taking into account the interests of consumers and the service offerings of the carriers as well as broader competitive and policy considerations, would be lacking from the type of procedure envisaged by GSP. In these circumstances, United is constrained to oppose GSP's request for allocation of exemption slots to communities. A different case might be presented if the community were to seek the joint award of slots in conjunction with a carrier eligible to operate them or if the exemptions were allocated to a carrier designated by the Department of Transportation to operate the services for the benefit of a specific community. To award the slots to the community directly for it to dispose of at its own discretion would, however, be both unlawful and unwise.

Counsel: United and Kirkland Ellis, Jeffrey Manley, 202-879-5161, jeffrey_manley@kirkland.com

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Northwest Airlines, Inc.

OST-95-668	March 8, 1999	Application for Renewal of Exemption Authority	Minneapolis/St. Paul-Acapulco
		Exhibit NW-1: Map of Service
		Exhibit NW-2: Service Schedule
		Exhibit NW-3: Fuel Burn
		Service List

By this Application, Northwest requests renewal of its Minneapolis exemption authority for an additional two year period. Northwest is the only carrier providing scheduled service on this route. By Notice of Action Taken on May 16, 1997 in this docket, the Department also granted Northwest authority to operate Detroit, Michigan-Cozumel, Mexico and Detroit, MichiganManzanillo, Mexico service. Northwest's authority on these routes has become dormant and Northwest does not intend to operate these services in the upcoming winter season. Northwest therefore does not seek to renew its exemption authority for the Detroit-Cozumel and Detroit-Manzanillo markets.

Counsel: Northwest, Megan Rae Poldy, 202-842-3193

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Scandinavian Airlines System and Lufthansa German Airlines

OST-99-5212 97-637	March 8, 1999	Re: Joint Application for Amendment of Statements of Authorization	US-Scandinavia/Germany Codesharing
		Appendix A: Designator Displayed on Operated Flights
		Service List

" SK" Designator Displayed on Lufthansa Operated Flights

IAH-FRA

"LH" Designator Displayed on SAS Operated Flights

ORD-ARN

Counsel: Wilmer Cutler, James Campbell, 202-663-6000 for Lufthansa / Bagileo Silverberg, Michael Goldman, 202-944-3305 for SAS

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1999 U.S.-Italy Combination Service Case

OST-98-4854

March 8, 1999

Answer of The Georgia and Atlanta Parties to Joint Statement of Objections of American Airlines and The City of Chicago

Scanned Version
Microsoft Word 97 Format

1999 US-Italy Combination Service Case

As a last gasp, Chicago and American attempt to rely on language from the 1996 U.S.-Italy Proceeding to the effect that it is somehow inconsistent with the Department's reasoning in Order 99-2-27. In 1996, the other two applicants were "new entrant" carriers. Neither US Air (its name at the time) nor Northwest had service to Italy. Both other applicants today already serve Italy, so the issues are far from similar. Further, the Delta proposal in this case is quite different from its proposal in 1996. Like all of the other arguments offered by Chicago and American, this one does not work either. The Department has already fairly considered all of these matters, and need only confirm the wisdom of its tentative decision in the Show Cause Order and award Delta daily nonstop service between Atlanta and Rome.

Counsel: Bill Alberger, 703-461-3791

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