OST Filings for March 8, 2000

American Airlines, Inc., under 14 CFR 302.39, hereby moves that the Department withhold certain proprietary and commercially sensitive confidential information from public disclosure. Specifically, American is submitting a revised response to Item 7 (traffic and revenue forecast) of the Department's evidence request of December 14, 1999, as modified by Order 2000-1-8, January 7, 2000. The revision is necessary to correct certain anomalies in the original submission that American made on behalf of both applicants on January 19, 2000.

Counsel: American, Carl Nelson, 202.496.5647, carl_nelson@amrcorp.com

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Aviones Are, S.A. de C.V.

OST-96-2038

Filed February 18, 2000
Issued March 8, 2000

Notice of Action Taken

U.S.- Mexico Charters

Exemption from 49 USC section 41301 to permit the applicant to continue to conduct passenger charter operations between Mexico and the United States, and other passenger charter operations in accordance with 14 CFR Part 212, using small equipment.

By: Paul Gretch

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Computer Reservations System (CRS) Regulations

OST-97-2881	March 8, 2000	Supplemental Reply Comments of United Air Lines HTML	CRS Regulations
		Service List

In urging the Department to retain the current mandatory participation rule and definition of the term "system owner," Amadeus principally relies on the argument that the rule is needed to prevent airlines with more than a de minimis equity interest in a system from distorting airline and CRS competition by discriminating in favor of the CRS in which they hold an interest over other CRSs. See e.g., Amadeus Supplemental Reply at 3. Amadeus also argues that a new five-year technology agreement between United and Galileo announced on December 13, 1999, demonstrates that United should continue to be subject to the mandatory participation rule as a system owner. Finally, Amadeus contends that the Department rejected a control test for defining the term "system owner" when it adopted the mandatory participation rule in 1992, and argues that the changes in system ownership discussed in United's Supplemental Comment provide no basis for changing the definition.

Amadeus's defense of the mandatory participation rule and support for the current definition of the term system owner are both predictable and unpersuasive. Amadeus supports these rules, not because they are currently needed to protect airline competition, but because they limit the need for CRS vendors, including Amadeus, to compete with each other over the terms they offer for system participation, including booking fees.

Counsel: United and Wilmer Cutler, Bruce Rabinovitz, 202-663-6960

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Continental Airlines, Inc.

OST-00-6996	March 8, 2000	Answer of JetBlue Airways Scanned Copy	Houston-New York JFK
		Service List

While JetBlue vigorously supports increased competition in the airline industry, especially by other low fare new entrants, the application of Continental for two new entrant exemption slots at JFK for flights to and from Houston, Texas is neither supported nor opposed by JetBlue. JetBlue does have reservations, however, about applications for JFK exemption slots not necessarily based on the particular merits of a specific request, but rather based upon both the operational availability of exemptions and full compliance with all environmental laws and regulations. The Department’s grant of this, or any other application for an exemption at JFK, without first requiring that the appropriate operational and environmental work be performed, including the assumption that JetBlue’s operations will utilize all 75 slots granted in Order 99-9-11, would set a disturbing precedent.

JetBlue’s EA was based on the phase-in of an entire fleet consisting of thirty-two brand-new, state-the-art Airbus A-320s with the most environmentally friendly engines available. Emission and noise assumptions contained in the EA were based upon JetBlue’s specific operating proposal. According to Continental’s application, their proposed service is to be provided with Stage 3 B-737 aircraft, with engines that are different from those used by JetBlue and analyzed in the EA. The environmental analysis performed to support the introduction of the A-320 into JFK is not equivalent to an analysis that assumes the introduction of a B-737 aircraft. Even though Continental’s request is only for two slots at JFK, the Department should not grant the application solely by relying on the environmental work performed by JetBlue, especially in such a noise and emissions sensitive region as Queens, New York.

Counsel: Dow Lohnes, Jonathan Hill, 202.776.2000

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Delta Air Lines, Inc.

OST-98-3740	March 8, 2000	Application for Renewal of Exemption Scanned Copy	U.S.- France
		Service List

Delta Air Lines, Inc. hereby applies for renewal of an exemption under 49 U.S.C. § 40109 to allow Delta to continue to provide scheduled foreign air transportation of persons, property, and mail between any point or points in the United States and any point or points in France, either directly or via intermediate points, and beyond France to any point or points in third countries; and to allow Delta to continue to integrate this authority with Delta’s existing certificate and exemption authority.

Counsel: Delta and Shaw Pittman, Alexander Van der Bellen, 202-663-8060

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Delta Air Lines, Inc. and Aerovias de Mexico, S.A. de C.V.

OST-00-7022	March 8, 2000	Re: Notification of No Impact on Delta's CRAF Commitments Scanned Copy	Las Vegas- Hermosillo
		Service List

Counsel: Delta and Shaw Pittman, Alexander Van der Bellen, 202-663-8060

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Northwest Airlines, Inc.

OST-98-3760

March 8, 2000

Application for Renewal of Exemption

US-France

Northwest seeks renewal of its exemption to engage in scheduled foreign air transportation of persons, property, and mail between any point or points in the United States, and any point or points in France, directly and via intermediate points, and beyond France to any point or points in third countries, and to integrate this authority with Northwest's other certificate and exemption authority. Northwest operates daily Detroit-Paris flights, and provides code-share service in the U.S.-France market in conjunction with its tripartite alliance with KLM Royal Dutch Airlines and Alitalia-Linee Aeree Italiane-S.P.A., via Amsterdam, the Netherlands and Rome and Milan, Italy, respectively.

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

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Taxi Aereo de Veracruz, S.A. de C.V.

OST-96-1909

Filed December 3, 1999
Issued March 8, 2000

Notice of Action Taken

U.S.- Mexico Charters

Exemption from 49 USC section 41301 to permit the applicant to continue to conduct passenger charter operations between Mexico and the United States, and
other passenger charter operations in accordance with 14 CFR Part 212, using small equipment, for a period of one year.

By: Paul Gretch

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United Air Lines, Inc.

OST-98-3732	March 8, 2000	Application for Renewal of Exemption	U.S.-France
		Service List

By Order 98-6-5, the Department granted United's exemption authority to operate scheduled combination services between, inter alia, any point or points in the United States, and any point or points in France, directly and via intermediate points, and beyond France to any point or points in third countries. The exemption authority was granted May 8, 1998, for a period of two years, and is currently set to expire on May 8, 2000. Renewal of United's authority is clearly in the public interest. This expanded U.S.-France route authority allows United to offer service code-share service between the U.S. and additional points in France pursuant to its alliance with Lufthansa. Such alliances offer additional online service choices to points in France and provide important competition with other alliances serving the U.S.-France market, particularly that of Delta and Air France.

Counsel: United and Wilmer Cutler, Jeffrey Manley, 202-663-6670

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United Parcel Service Co. and Challenge Air Cargo, Inc.

Order 00-3-2 OST-96-1379 OST-98-4277 OST-99-5046 OST-99-6345	Issued March 7, 2000	Order to Show Cause HTML	Transfer of Route Authority - US-Latin America All-Cargo Service
		Certificate of Public Convenience and Necessity
		Attachment: Terms, Conditions and Limitations

We tentatively find that the route transfer meets our standards for approval. Specifically, the introduction of UPS' service will provide new service options to the shipping public, more fully use our bilateral route opportunities and enhance competition in the U.S.-Latin America all-cargo market. In these circumstances, we tentatively conclude that approval of the transfer will benefit the public and will not conflict with our international aviation objectives.

We also tentatively find that both carriers will remain fit to provide their authorized services and that the transfer of Challenge's Latin America route authority to UPS will have a positive impact on the viability-of both carriers- Challenge will benefit from the, infusion of new capital to support its future plans. UPS will benefit from the ability to expand its operations to new markets, improving its competitive posture. The improvement in each carrier's viability will enable each carrier to compete more effectively and thereby enhances competition in the airline industry.

Furthermore, we tentatively find that there will be a positive impact on the U.S. trade position in the international air transportation market as a result of this transfer. Since UPS has a much more extensive route network and worldwide infrastructure than Challenge, UPS will able to provide more effective competition to both foreign carriers and other U.S. carriers in the U.S.-Latin America market. In these circumstances, air commerce between the United States and Latin America should increase, improving the U.S. trade position.

By: Bradley Mims

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U.S. Airways, Inc.

OST-97-3034	March 8, 2000	Application for Renewal of Exemption	Pittsburgh- Paris
		Service List

US Airways currently provides daily, nonstop widebody service between Pittsburgh and Paris, as well as between Philadelphia and Paris. In April, US Airways will inaugurate Charlotte-Paris service. US Airways' Pittsburgh-Paris service has been well received and strongly supported by local and connecting traffic.

Counsel: O'Melveny Myers, Joel Burton, 202.383.5300

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U.S.-China Air Services (2001)

OST-99-6323	March 8, 2000	Re: Revised Exhibits for United Parcel Service	U.S.-China Air Services 2001
		Errata Sheet for Exhibits
		Exhibits (Revised): UPS-1150, 1203 to 1215, 1250, 1251, 1260, 1301

Counsel: UPS and Kelly Drye, David Vaughan, 202-955-9600

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Winnport Logistics Ltd.

OST-00-7055	March 8, 2000	Application for Exemption Authority Scanned Copy	U.S.- Canada Charters
		Exhibit 1: Information for Department
		Exhibit 2: Web Page Description of Application
		Exhibit 3: Balance Sheet
		Exhibit 4: Projected Income Statement
		Exhibit 5: Affidavit

Winnport is a flag carrier of Canada, headquartered in Winnipeg, Manitoba, and is substantially owned and effectively controlled by Canadian nationals. It currently operates a Boeing 727- 100 freighter aircraft within Canada to provide ad hoc and program charters. Winnport also desires to expand its operations into the United States, initially providing on-demand, weekend service between Canada and the United States.

Counsel: Verner Liipfert, John Meitus, 202.371.6000

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International Air Transport Association

OST-00-7043	March 8, 2000	Application for Approval of Agreements	PTC12 NMS-AFR 0078
		Memorandum: PTC12 NMS-AFR 0078
		Memorandum: Part 2
		Service List

By: David O'Connor

OST-00-7044	March 8, 2000	Application for Approval of Agreements	PTC2 EUR-AFR 0099
		Memorandum: PTC2 EUR-AFR 0099
		Memorandum: Part 2
		Memorandum: Part 3
		Memorandum: Part 4
		Memorandum: Part 5
		Service List

By: David O'Connor

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