OST Filings for February 21, 2001

OST Docket Filings for February 21, 2001

Last Updated 02/22/01 11:26 AM

Applications and Renewals:

Aero Ejecutiva Nieto- U.S.- Mexico Taxi Renewal | In the Matter of American/US Airways/United - Complaint of AirTran

In the Matter of American/TWA - Complaint of AirTran | TWA/Kuwait - U.S.- Kuwait/Abu Dhabi/Dubai/Muscat

Answers and Replies:

Delta/Aeromexico - Notice of Codesharing | IATA - Supplement | U.S.- Turkey - Revision of United

Wendell Ford - Response in Opposition of Queens Borough to America West

Notices of Action Taken:

Aero Laguna

Notices and Orders:

None

Aero Ejecutiva Nieto, S.A. de C.V.

OST-96-1566	February 21, 2001	Application for a Renewal of an Exemption	U.S.- Mexico Charters
		Attachment 1: Operations
		Attachment 2: Flight Routes
		Attachment 3: Airports
		Attachment 4: Aircraft Type and Model
		Attachment 5: DGAC License
		Attachment 6: Financials
		Attachment 7: Insurance

Counsel: Aero Ejecutiva Nieto, Eugene Smith, 210.590.1630

Index

Aero Laguna, S.A. de C.V.

OST-99-5900

Filed January 31, 2001
Issued February 20, 2001

Notice of Action Taken

U.S.- Mexico

By: Paul Gretch

Index

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

OST-97-3289

February 21, 2001

Re: 30-Day Notice Regarding Codesharing

Atlanta- New Orleans, Las Vegas Codesharing

Pursuant to Order 99-6-6, Delta and Aeromexico hereby notify the Department that, beginning on or about April 1, 2001, Delta will display Aeromexico's "AM" designator code on flights operated by Delta between Atlanta, on the one hand, and New Orleans and Las Vegas, on the other hand.

Counsel: Verner Liipfert, William Evans, 202.371.6030 and Shaw Pittman, Robert Cohn, 202.663.8060

Index

In the Matter of American Airlines, Inc., US Airways, Inc. and United Air Lines, Inc.-- Unfair Methods of Competition in Violation of 49 U.S.C. $ 41712

OST-01-8948	February 21, 2001	Third-Party Complaint of AirTran Airways and Request to Commence Enforcement Proceeding HTML	Unfair Methods of Competition in Violation of 49 U.S.C. Section 41712
		Attachment: Docket Complaint OST-01-8949
		Service List

Pursuant to Rule 404(a), AirTran Airways, Inc. submits this formal complaint against American Airlines, Inc., United Airlines, Inc., and US Airways, Inc. for engaging in unfair methods of competition in violation of 49 U.S. C. § 41712, and respectfully requests that the Assistant General Counsel promptly commence an expedited formal Rule 407(a) enforcement proceeding to prevent respondents from carrying out their scheme to jointly monopolize and divide the Washington area business traffic market. Unless ameliorated by vigorous corrective action, the arrangements in place between United and US Airways, and now including American, will: (1) eliminate US Airways as a viable competitor, whether or not they are permitted to ripen into actual acquisitions; (2) permit United, which already controls more than 85 % of the flights at Washington Dulles International Airport (" IAD "), to continue to accrue monopoly rents in the Washington area business traffic market; and (3) ensure that the public assets - take-off and landing slots -- essential to competitive entry at Washington Reagan National Airport ("DCA") and the possible limitation of monopoly rents, are locked away from AirTran Airways, and other bonafide competitors, either by being vested in a United-American duopoly, or left with a crippled, non-competitive US Airways. If the United-US Airways-American deal closes, time-sensitive business travelers and public officials using DCA and IAD will be forced to provide hundreds of millions of dollars per year in supra-competitive prices to fund the monopoly premium United (now in combination with American) is offering to US Airways. Even if the pending review at the Department of Justice forecloses these anticompetitive acquisitions, Washington area business travelers still may be forced to pay supra-competitive prices in tribute to United's ingenuity in putting the bulk of DCA slots out of competitive play.

Counsel: Wiley Rein, Bert Rein, 202.719.7045

Index

In the Matter of American Airlines, Inc. and Trans World Airlines, Inc.--Unfair Methods of Competition in Violation of 49 U.S.C. $ 41712

OST-01-8949	February 21, 2001	Third-Party Complaint of AirTran Airways and Request to Commence Enforcement Proceeding HTML	Unfair Methods of Competition in Violation of 49 U.S.C. Section 41712
		Attachment: Docket Complaint OST-01-8948
		Service List

Here, it is sufficient to say that, unless the Department takes prompt and firm corrective action, American's acquisition of the TWA slots will: (1) allow American to aggregate and control over one- half of the slots at DCA and, together with United, control over two-thirds of the slots and scheduled passenger operations at that vital airport; (2) allow American, working together with United, which already operates more than 85% of the flights at gate-limited Washington Dulles International Airport ("IAD"), to combine their dominance over the Washington area business traffic market at both IAD and DCA; (3) enable American, and its partner, United, to extract monopoly rents from the time-sensitive passengers in that market; and (4) ensure that the public assets - take-off and landing slots -- essential to competitive entry at DCA and the possible limitation of monopoly rents, are locked away from AirTran Airways, and other bona fide competitors, in a vested United-American duopoly. If the United-US Airways-American and American-TWA deals close, without the timely and curative intervention of the Department, business travelers and public officials using DCA and IAD will likely be forced to pay hundreds of millions of dollars in tribute annually to American and United in the form of supra-competitive fares.

American's proposed acquisition of the TWA slots is thus part of a bold, "in-your-face," plan by the nation's two largest air carriers that requires, for its implementation, anti-competitive abuse and manipulation of the FAR Part 93.221 slot "buy-sell" process by both the slot sellers and acquirers involved. Over the years, that process has always favored the wealthiest air carriers, with no one first inquiring how that wealth was obtained. This economic dynamic has made it virtually impossible for new, low-fare air carriers, such as AirTran Airways, to gain more than marginally competitive entry at the restricted-access airports (or, in AirTran Airways' case, no entry whatsoever at DCA). However, the American-United plan to lock up both major Washington airports used by business travelers through coordinated "buy-sell" deals involving concurrent actions by four air carriers (American, United, US Airways and TWA), as well as DC Air, a non-air carrier DCA slot-holder to be controlled by American, radically distorts even the questionable fairness of that process and would, if allowed, effectively foreclose any hope of competitive new entry by low-fare air carriers at DCA.

Counsel: Wiley Rein, Bert Rein, 202.719.7045

Index

Trans World Airlines, Inc. and Kuwait Airways Corporation

OST-99-5590	February 21, 2001	Joint Application for Statement of Authorization	U.S.- Kuwait, Abu, Dhabi, Dubai and Muscat
		Service List

Kuwait Airways provides transatlantic service between Kuwait City and both Frankfurt and Amsterdam, as well as service between Kuwait and various points in Europe and the Middle East. It presently operates flights between New York and Kuwait, Chicago and Kuwait, and both Frankfurt and Amsterdam and Kuwait.

Pursuant to an. existing code-share agreement; NOAT issued June 21, 1999; TWA currently lists its designator code on Kuwait Airways's services between New York/Chicago and Kuwait, and on the New York- Amsterdam market, as well as on Kuwait Airways's connecting service to Abu Dhabi, Dubai, and Muscat. Pursuant to an additional code-share agreement NOAT issued March 24, 2000, TWA lists its designator code on Kuwait Airways's services in the local New York-Frankfurt and Chicago -Amsterdam market as well as on Amsterdam -Kuwait and Frankfurt- Kuwait sectors.

TWA already has authority to serve Amsterdam from Chicago under Segment 3 of its certificate for Route 147, and it has provided service from New York to Frankfurt under Segment I of the same certificate. Its Amsterdam and Frankfurt- Amman service is based on Route 147 and its authority to integrate operations of various segments granted by NOAT, dated February 17, 1999 (Docket No. 99-5066)

Counsel: TWA, Glenn Wicks, 202.457.4754 and Dickstein Shapiro, Henry Cashen, 202.785.9700

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The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

OST-00-7176	February 21, 2001	Motion for Permission to File Late Response and Proposed Response in Opposition to Application of America West Airlines for Slot Exemptions	New York, LaGuardia (LGA)- Phoenix, Arizona (PHX)/Las Vegas, Nevada (LAS)
		Service List

It is important to preserve the status quo for now., and to ensure that LaGuardia continues to operate smoothly and efficiently, pending the implementation by the FAA of a permanent market-based system to replace the lottery system, scheduled for mid-September 2001. This also means keeping the perimeter rule in place, to preserve LaGuardia's role as a business traveler’s airport and an airport serving all kinds of short and medium-range travellers.

Counsel: Queens Borough President's Office, Hugh Weinberg, 718.286.2880

Index

U.S.- Turkey Combination Service Third-Country Code-Share Opportunities

OST-01-8781	February 21, 2001	Re: Revision of the Reply of United Air Lines	U.S.- Turkey
		Attachment: Pages 6 & 7 and Exhibit 2
		Service List

Enclosed for filing in the above-referenced docket are revised pages 6 and 7 and Exhibit UA-Rep.-2 of the Consolidated Reply of United Air Lines, Inc., which was filed on February 20, 2001. Copies of this letter and the enclosure have been served today upon all persons listed on the service list attached to United's application.

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

Index

International Air Transport Association

OST-01-8931

February 21, 2001

Supplement to Application for Approval of Agreements

PAC/Reso/410

By: David O'Connor

Index