OST Filings for March 15, 2000

OST Docket Filings for March 15, 2000

Last Updated 03/16/00 11:38 AM

Applications and Renewals:

Delta - U.S.- Vietnam | IATA | U.S.- Russia - Continental/Dormancy Waiver

Answers and Replies:

Aer Lingus/American - Consolidated Answer of Northwest/United | American/British Airways - Opposition of Pittsburgh | CRS - Response of ASTA

Drug/Alcohol Testing - Response | IATA - Letter in Opposition | TransPacific - Request for Additional Information | United/British - Joint Reply/Motion

UPS/Challenge - Letter of Daniel Diz | U.S.- Brazil - Delta Schedule Errata | Vernal/Cedar City - Community Response

Notices of Action Taken:

Aeromexico

Notices and Orders:

None

Aer Lingus Limited and American Airlines, Inc.

OST-99-6725 OST-99-6726 OST-99-6728	March 15, 2000	Consolidated Reply of Northwest Airlines HTML	New York/Baltimore- Shannon/Dublin
		Service List

Northwest Airlines has a serious interest in providing service to Ireland on a codeshare basis. In particular, Northwest wishes to offer codeshare service to Dublin without being required also to offer service to Shannon. Earlier this year, Northwest submitted a request to the Government of Ireland for authority to offer codeshare services to Dublin with a same-country carrier and with a third-country carrier or carriers (via points in third countries) on flights operated by such other carriers. The Government has not yet acted on that request, but Northwest is hopeful that the request will be favorably resolved in the near future and that Northwest will be able to offer such codeshare services. If the Irish Government does act favorably and satisfactorily on this request, Northwest does not expect that it will have a continuing basis to oppose the American and Aer Lingus applications.

For the very reasons that American and Aer Lingus consider codeshare operations to be a superior and efficient means of offering U.S.-Ireland service, so too does Northwest believe that it can best offer its own service - and new and attractive service options to consumers - in the U.S.-Ireland market on a codeshare basis. In the case of Northwest, this means codesharing with a carrier of a third country or with another U.S. carrier.

Counsel: Northwest, Megan Rae Rosia, 202.842.3193

OST-99-6725 OST-99-6726 OST-99-6728	March 15, 2000	Consolidated Reply of United Air Lines HTML	New York/Baltimore- Shannon/Dublin
		Service List

Both the Aer Lingus/American code-share application and Aer Lingus' Cities Program application, are extra-bilateral, as the applicants concede, Grant of these applications would require an affirmative finding of comity and reciprocity and, in the case of the Cities Program application, a determination that a procompetitive agreement is in place between the U.S. and Ireland, among other things. So long as the Government of Ireland declines to authorize United to code share on flights operated by British Midland between London and Dublin unless United complies with the Shannon stop requirement, which requires United to offer the same level of service to Shannon as to Dublin, the Department has no basis for a finding of adequate comity and reciprocity or the existence of a procompetitive regime necessary to approve the applications at issue

Counsel: Wilmer Cutler, Jeffery Manley, 202.663.6670, jmanley@wilmer.com

Index

Aerovias de Mexico, S.A. de C.V.

OST-96-1896

Filed February 17, 2000
Issued March 15, 2000

Notice of Action Taken

Mexico City-Austin, Texas

Exemption from 49 USC section 41301 to permit the applicant to continue to conduct scheduled, combination services between Mexico City, Mexico and Austin, Texas.

By: Paul Gretch

Index

Airline Partner Associates, Inc. d/b/a TransPacific Airlines

OST-00-7069

March 15, 2000

U.S. DOT/OST - Letter Requesting Additional Information

Interstate Scheduled Air Transportation

By: Air Carrier Fitness Division , Patricia Thomas

Index

American Airlines, Inc. and British Airways Plc

OST-99-6507

March 6, 2000
Docketed March 14, 2000

Pittsburgh International Airport/Allegheny County Airport Authority- Letter in Opposition

U.S.-U.K. Reciprocal Code-Sharing

Our position is driven by the British Government's failure to support the award of a route for US Airways between Pittsburgh and London (Gatwick). No further competitive benefits should be given to British Airways, or to any other British carrier, until such time as a more equal, competitive environment is established for US-UK air service. Mr. Secretary, you have attempted valiantly to resolve the inequities contained in the Bermuda 2 Accord, and we deeply appreciate your efforts. The failure of the British Government to take the necessary action to restore air service between Pittsburgh and London in the face of your persistent efforts, makes it imperative that the U.S. Government take a strong and unambiguous position in all matters involving US-UK air service. The denial of the British Airways/American Airlines code share request is one of a number of actions the US government should take to demonstrate its resolve.

By: Pittsburgh International, Kent George, 412.472.3500

Index

Delta Air Lines, Inc.

OST-00-7078	March 15, 2000	Application for Exemption Scanned Copy	U.S.- Vietnam
		Service List

On March 3, 2000, the United States and Vietnam signed a Memorandum of Discussions stating that the two sides’ respective aeronautical authorities would permit carriers of each country to engage in bilateral and third-country U.S.-Vietnam codeshare services. The MOD provides, inter alia, that up to three U.S. carriers may offer service between the United States and up to three points in Vietnam, via any intermediate points, through codeshare arrangements with carriers of third countries, operating a combined maximum of 21 weekly roundtrip frequencies. Delta hereby applies for one of the three available third-country codeshare designations for service to Vietnam and an allocation of seven weekly U.S.-Vietnam frequencies. Delta requests that the United States select Ho Chi Minh City and Hanoi as two of the three Vietnamese points that U.S. carriers may serve on a third-country codeshare basis, and hereby applies for an exemption authorizing it to provide service between the United States and these points. Delta initially proposes to use such authority to operate U.S.-Vietnam services in conjunction with its alliance partner, Societé Air France. Specifically, Delta will display its "DL" designator code on flights operate by Air France between (a) Paris and Ho Chi Minh City, via Singapore (four weekly roundtrip flights), and (b) Paris and Hanoi, via Bangkok, Thailand (three weekly roundtrip flights). Delta proposes to commence these services promptly following the Department’s grant of the requested authority.

Air France operates, on alternating days, one stop service between Paris and Ho Chi Minh City using Boeing 777 aircraft (four days per week), and one stop service between Paris and Hanoi using Boeing 747-400 aircraft (three days per week). As a result of the approval of this application, Delta’s passengers and cargo traffic moving between the United States and Paris would be able to make convenient online connections to the daily U.S.-Vietnam services operated by Air France.

Counsel: Shaw Pittman, Robert Cohn, 202.663.8060, robert.cohn@shawpittman.com

Index

Essential Air Service at Vernal and Cedar City, Utah

OST-97-2706

March 15, 2000

Cedar City Corporation- Community Response to Essential Air Service

Essential Air Service at Vernal and Cedar City, Utah

By: Mayor, Harold Grant Shirley

Index

New U.S.-Russia Opportunities

OST-99-5286	March 15, 2000	Application for Dormancy Waiver of Continental Airlines	New U.S.-Russia Opportunities
		Service List

Continental and CSA have been working with Russian aviation officials to obtain approval for their U.S.-Prague-Russia codeshare, but, as of this date, Russian aviation authorities have not granted the authorizations necessary for initiation of the proposed services. Despite Continental's efforts to obtain Russian approval for its codeshare with CSA, it is unlikely that foreign authorization will be granted on or before April 22, 2000, when Continental's U.S.-Russia frequency allocation will terminate. On March 3, 2000, the other recipient of U.S. -Russia frequencies in this proceeding, American, filed a request for waiver of the dormancy provision applicable to its frequencies since it has been unable to obtain Russian approval for its proposed codeshare services with Finnair.

Counsel: Continental, Crowell Moring, Bruce Keiner, 202.624.2500

Index

Third Extension of Computer Reservation System Rules

OST-00-6984

March 14, 2000

Response of The American Society of Travel Agents

Third Extension of CRS Rules

We have reexamined all of the historical justifications for the data sharing rule, going back to 1984. The sole basis for it appears to be that any attempt to restrict the use of the data by a system owner would be unenforceable and, therefore, the conclusion was to compel the sharing of the data with all carriers with the resources to pay for it. The effect of the rule is to provide competing airlines with information that, in the absence of airline ownership of CRS vendors (a condition toward which the industry appears to be moving), carriers would not be able to obtain lawfully in direct exchanges with each other.

Imagine a scenario in which representatives of the major airlines sit in a room together and pass across the table nearly current information about each transaction initiated by a common agency, such that each carrier then learns, in near real-time, what the agent is selling on each carrier in the room. This data includes identity of the customer, the class of service, price paid, date of purchase and the route selected. Can there be any doubt that such an information exchange would be viewed as unlawful as price-fixing, in that its main, perhaps sole, purpose and effect is to stabilize and/or eliminate price competition among the participants in the data exchange? Companies engaged in competitive bidding usually do not know all the details of their competitors' business transactions. Airlines should be in the same position.

Why then mandate the opposite outcome on an industry-wide basis? The only clearly stated reason that appears in the historical record is that a prohibition on the data exchange would be "unenforceable." Why this should be so is not apparent. The rationale is repeated throughout the evolution of the regulations but never really explained. Why, for example, would it not be possible to enforce a rule that prohibits the generation of information for any CRS owner-airline except information about transactions to which that airline is a party? Violations would be detected when an airline possessed of inappropriate information surfaced a marketing campaign around it. The changes occurring in the distribution of information warrant an immediate look at this rule whose sole effect appears to be the elimination of uncertainty that normally characterizes competitive operations. ASTA therefore asks the Department to schedule an expedited review of section 255.10 while the rest of the proceeding on the overall CRS regulations goes forward.

By: ASTA, Paul Ruden

Index

Procedures for Transportation Workplace Drug and Alcohol Testing Programs

OST-99-6578

March 15, 2000

U.S. DOT/OST- Letter in Response

Workplace Drug and Alcohol Testing Programs

By: Office of Drug and Alcohol Policy and Compliance, Mary Bernstein, Director

Index

United Air Lines, Inc. and British Midland Airways Ltd.

OST-00-6842 OST-00-6954	March 15, 2000	Joint Reply of United and British Midland and Motion for Leave to File HTML	U.S.- U.K.- Code Sharing
		Service List

United and British Midland share the concern Continental and Delta express in their answers about the continuing inability of the U.S. and U.K. governments to reach agreement on amendments to the Bermuda 2 Agreement that would permit meaningful expansion of service at London's Heathrow and Gatwick Airports. Nonetheless, denying British Midland and United the limited authority to code share they are seeking in their Amended Application will do nothing to redress the current impasse between the U.S. and U.K. governments. On the contrary, the failure of the U.S. and U.K. governments to reach agreement on further amendments to the Bermuda 2 Agreement liberalizing access to those airports has already led to United and British Midland scaling back the application they originally filed to code share on U.S.-U.K. services by eliminating a request for authority for British Midland to display its designator code on United's U.S.-Heath row services. Those code-sharing operations would have materially enhanced United's and British Midland's ability to compete with British Airways and American on key U.S.-Heathrow routes where the oneworld alliance partners already hold a commanding 61% market share.

Counsel: Squire Sanders Dempsey, Marshall Sinick, 202.626.6651, and Wilmer Cutler, Bruce Rabinovitz, 202.663.6960, brabinovitz@wilmer.com

Index

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

OST-99-6345

March 13, 2000

Re: Letter of Daniel Diz

Transfer of Route Authority

By: Daniel Diz

Index

1999 U.S.- Brazil Combination Service Case