© Copyright 2002 Airline Information Research, Inc.   All rights reserved. 

Home | OST Filings by Number | OST Orders and Notices | OST Filings by Carrier
OST Filings by Proceeding | OST Filings by Day | Office of Intl Aviation Filings by Carrier | Office of Intl Filings by Day

OST Docket Filings February 7, 2002

Last Updated 02/11/02 11:25 AM


 OST Docket Filings

Applications and Renewals: 

American - Dallas/Ft. Worth- Caracas, Venezuela Renewal

Caribbean Star - Supplement No 1

Continental - US-France Amendment | Continental Micronesia - US- France Certificate

United v EC - Waiver of Statutory Deadline | UPS - L.A.- Guadalajara Renewal

United - U.S.- Brazil Codeshare Renewal

Answers and Replies: 

Air West (2)- Request for and Additional Information | Air France - Response to Information Request

American (2)- Answers of Continental/Delta (Japan Frequencies)

CRS - Comments

Edelweiss - Passenger Manifest Plan

Freedom Airlines - Ruling on Confidential Treatment/Request for Information

Laker Airways - Answer of Dallas (Bahamas) | Mesaba - Proposal for EAS

U.S.- Turkey Third-Country Codeshare (4)- Answers of Continental/Delta/Houston/United

U.S.- U.K. Alliance - Notice of Communication

Notices of Action Taken:

None

Notices and Orders:

None

Air West Inc.

OST-01-10692 November 30, 2001 Request for Additional Information Show Low, Arizona- Sky Harbor, Arizona

In our request, we described what levels of capital we believed would be required for Air West to meet the Department's financial fitness standard. Based on the carrier's first year forecast and preoperating expenses, we determined that Air West would be required to have access to $195,649 to meet the three-month standard and $259,602 to cover preoperating costs for a total of $455,251. To meet the financial fitness test Air West has indicated that it will rely on internal funds, any subsidy that it might received if it is selected to provide the essential air service at issue, as well as bank lines-of­credit for $110,000 and $70,000. Our letter of November 26 requested that Air West provide third-party verification of access to any funding. Although the carrier submitted a letter from First International Bank and Trust indicating access to a $50,000 line-of-credit, it was not clear whether this was in addition to or in lieu of the $110,000 and $70,000 lines-of-credit. Thus, availability and access to these lines-of­credit remain uncertain. Air West should provide third-party verification of access to any funds that it intends to rely upon to meet our financial fitness test. Such verification must be provided by an official of Air West's bank or other financial institution; verification by your accountant is not sufficient.

We hope that Air West's response to this request will provide sufficient information to allow us to make a favorable fitness determination. However, since Air West has indicated that it does not intend to provide scheduled service unless selected to provide essential air service, we do not intend to proceed with a fitness finding of the carrier unless it is selected to provide the essential air service between Show Low and Phoenix, Arizona.

By:  James Lawyer

OST-01-10692 February 7, 2002 Additional Information of Air West Show Low, Arizona- Sky Harbor, Arizona

Air West Inc. has Bank lines of Credit available in the amount of 110,000. and additional lines of credit in the amount of 70,000. I have verified that these credit resources are available and debt free. Our accountant has signed this statement only after reviewing statements from each of the accounts to verify the information. AWl pays off any balances on credit cards monthly and the bank lines of credit have not been used since the October 12 statement was signed. Enclosed is a statement from First International Bank & Trust where we have a line of credit. This is the only bank we do business with that operates on a personal level and makes is possible to acquire a statement such as the one needed on short notice. AWI has the credit need as stated above and we have signed the statement pursuant to Title 18 United States Code, Section 1001.

Total Operating Expenses

350,452

Net Operating Income (Loss)

138,206

NET INCOME (LOSS)

138,206

By:  Air West, Mark Wilkison, 480.396.0688

Index

American Airlines, Inc.

OST-97-2527 February 7, 2002 Application for Renewal of Exemption Dallas/Ft. Worth- Caracas, Venezuela
    Service List  

American initiated nonstop service between Dallas/Ft. Worth and Caracas on October 7, 1997, and presently operates one daily roundtrip, using 188-seat B757 aircraft. American provides important service in the local market and in scores of beyond markets with convenient connections at the Dallas/Ft. Worth hub. Illustrative data is attached to American's initial application submitted in this docket on May 15, 1997. Ameri­can's service is an "activity of a continuing nature" under 5 USC 558(c).

American presently holds certificate authority to serve between Puerto Rico and Caracas (Route 542), and between New York/Miami and Caracas/Maracaibo (Route 543). American applied for renewal and amendment of its certificate authority on December 11, 1992 (Dockets 49547 and 48548), requesting a single certificate authorizing service between any point in the U.S. and any point in Venezuela. Granting country-wide certif­icate authority is consistent with the U.S. -Venezuela Air Transport Agreement, would provide maximum operating flexibili­ty, and is consistent with the public interest. Those applica­tions are pending; when they are granted, the separate exemp­tion requested here for the Dallas/Ft. Worth-Caracas route will no longer be necessary.

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

OST-02-11366 February 7, 2002 Answer of Continental Airlines

Word File

 Dallas/Ft. Worth- Tokyo

Although American has announced the institution of daily nonstop New York/Newark-Tokyo service effective April 19, 2002, American continues to hold at least seven unused frequencies which were awarded to it for Boston-Tokyo service it has never instituted, as well as frequencies it holds for Seattle-Tokyo and Dallas/Ft. Worth-Osaka service it has discontinued. Continental would not object to the use of three of American’s current Japan frequencies for Dallas/Ft. Worth-Tokyo service.

So long as American holds dormant frequencies, it should use those frequencies for the new Dallas/Ft. Worth-Tokyo services it proposes rather than being awarded frequencies which have been returned to the Department by other airlines.  American should not preempt other potential new U.S.-Tokyo services by seeking additional frequencies from the limited pool otherwise available and holding onto frequencies it is not using.  The Department should reserve the frequencies in the pool until each airline holding Japan frequencies has used its own dormant frequencies.

Counsel:  Crowell Morning, Bruce Keiner, 202.624.2615, rbkeiner@cromor.com

OST-02-11366 February 7, 2002 Answer of Delta Air Lines

Word File

 Dallas/Ft. Worth- Tokyo

There is no need or public interest rationale for American to seek a further allocation of frequencies "from the unallocated pool" (AA at 1),when American already has more than enough Japan frequencies at its disposal to operate its proposed additional DFW-Tokyo flights.  On the other hand, Delta would have no objection if American were to notify the Department of American’s intent to shift any of its previously-allocated frequencies to the DFW-Tokyo route.As stated by Delta in such a Notice filing in Docket OST-2000-7904, this type of frequency transfer “will better enable [American] to maximize the public benefits attainable from its existing U.S.-Japan authority.”

American and its now-acquired TWA entity were allocated 36 frequencies in the 1998 Japan Service Proceeding for routes including:

Of those routes, according to Spring 2002 schedules, American will operate only the seven Chicago-Tokyo frequencies, the single San Jose frequency, and three of the seven frequencies awarded for New York-Tokyo service.  American sought “indefinite” dormancy waivers for its Boston, New York and St. Louis-Tokyo frequencies as recently as this fall.  See, Applications of American and TWA Airlines, LLC, Docket OST-98-3419.  Furthermore, American is no longer flying the seven Seattle-Tokyo frequencies it operated prior to 1998.  

Counsel:  Shaw Pittman, Alexander Van der Bellen, 202.663.8060

Index

Caribbean Star Airlines, Inc.

OST-01-11164
OST-01-11198		 February 7, 2002 Supplement No. 1 to Application Certificate of Public Convenience and Necessity - Scheduled and Charter Foreign Service
    Exhibit CSA S1-1:  Resumes  
    Exhibit CSA S1-2:  Letter of Credit  
    Service List  

Caribbean Star Airlines, Inc. hereby submits this Supplement No. 1 to the two captioned applications requesting issuance of two Certificates of Public Convenience and Necessity authorizing CSA to engage in scheduled interstate (Docket OST-01-11198) and foreign (Docket OST-01-11164) air transportation. The purpose of this Supplement No. 1 is two-fold: (1) to furnish citizenship, air carrier experience and other fitness-related information pertaining to a recently-hired member of CSA's key operations management group, and (2) to provide additional information pertaining to the working capital financing arrangements of CSA.

Counsel:  Shaw Pittman, Nathaniel Breed, 202.663.8078

Index

Computer Reservation System Regulations

OST-97-2881 February 7, 2002 Comments of Uniglobe Forest Lake Travel Computer Reservation System (CRS) 

As you have becoming aware most of the domestic airlines based United States are engaging in unfair and discriminatory practices against the American Travel Agency Community. These practices include price fixing and excluding agency CRS systems from obtaining certain price options. In "plane" terms they are selling tickets from their own web sites and certain selected web sites for less than the agencies can sell them through their computer reservation systems. This practice is not only unfair restriction of free trade, but designed to eliminate the travel agency community from the equation. When the agency system is no longer there who will protect the consumer from these monopolies?

Most airfare rates are governed by rules. These rules are set up by the airlines themselves and they pick the criteria. They include advance purchases requirements, routing restrictions, and capacity controlled inventory. In other words if a fare meets all other criteria but the number of seats allotted to be sold at this fare has been reached, the passenger must pay a higher fare based on the next lowest class of service that is applicable. This difference can be in excess of hundreds of dollars. If an agency should issue a ticked in contrary to an airlines rules they are fined heavily and coerced into paying under the threat of losing their ARC accreditation and ability to sell airline tickets. However there are no rules for the airlines. They can waive their advance purchases requirement and decide to add inventory to a restricted class of service at a whim. And now they even invent new classes of service and new fares which the agencies don't have any chance of obtaining and offering to their clients.

By:  Uniglobe Forest Lake Travel, Ronald Capone, 813.855.4488

Index

Continental Airlines, Inc.

OST-98-4686 February 7, 2002 Amendment to Application for a Certificate of Public Convenience and Necessity

Word File

 U.S.- France

Specifically, Continental amends its original application to request the authority to engage in the scheduled foreign air transportation of persons, property and mail over the following segments: From points behind the United States via the United States and intermediate points to a point or points in France, the French Departments of America, French Polynesia, Saint-Pierre and Miquelon and beyond From points behind the United States via the United States to New Caledonia and/or Wallis and Futuna

Continental currently holds U.S.-France exemption authority see Notice of Action Taken, March 29, 2000 in Docket OST-98-3744) and operates New York/Newark-Paris and Houston-Paris service, as well as serving points in France through its codeshare with KLM.2 Granting Continental's application as amended will allow Continental to continue operating its current flights as well as offering new and innovative U.S.-France service both on its own and with its codeshare partners. Continental also requests authority to integrate its U.S.-France certificate authority with Continental's existing exemption and certificate authority.

Counsel:  Crowell Morning, Bruce Keiner, 202.624.2615, rbkeiner@cromor.com

Index

Continental Micronesia, Inc.

OST-02-11528 February 7, 2002 Application for Certificate of Public Convenience and Necessity

Word File

 U.S.- France

Specifically, Continental Micronesia requests authority to engage in the scheduled foreign air transportation of persons, property and mail over the following segments: From points behind the United States via the United States and intermediate points to a point or points in France, the French Departments of America, French Polynesia, Saint-Pierre and Miquelon and beyond From points behind the United States via the United States to New Caledonia and/or Wallis and Futuna. Continental Micronesia currently holds exemption authority to provide service between Guam and Noumea, New Caledonia see Notice of Action Taken, August 1, 2001 in Docket OST-97-2920), and Continental Micronesia requests broad U.S.-France certificate authority under the open skies bilateral so it will have the flexibility to institute service wherever demand arises, particularly in the South Pacific.

Continental Micronesia requests a certificate of public convenience and necessity authorizing it to provide scheduled foreign air transportation of persons, property and mail from points behind the United States via the United States and intermediate points to a point or points in France, including the French territories, and beyond to the full extent authorized by the recently-signed U.S.-France "open skies" agreement. Continental Micronesia also requests authority to integrate its U.S.-France certificate authority with its existing exemption and certificate authority.

Counsel:  Crowell Morning, Bruce Keiner, 202.624.2615, rbkeiner@cromor.com

Index

Edelweiss Air, Ltd.

OST-98-3305 February 7, 2002 Edelweiss Air:  Submitting its Passenger Manifest Policy Passenger Manifest Information

Counsel:  Zuckert Scoutt, Rachel Trinder, 202.298.8660

Index

Freedom Airlines, Inc.

OST-01-11206 February 7, 2002 Ruling on Motion for Confidential Treatment of Documents and Request for Information Scheduled Interstate Air Transportation

It is not the Department's practice to withhold from public disclosure information regarding an applicant's pre-operating and first-year operating cost forecasts. Nor is it our practice to withhold all information regarding the applicant's proposed operating plan and related statistics. The Department has stated however that, if requested, we will generally grant confidential treatment to information regarding an applicant's revenue forecast, including information on its estimated revenue passenger miles, available seat miles, and projected load factor. While the majority of the information contained in Exhibit 15 is of the type that is usually released to the public, some of it is provided at a level of detail exceeding the norm and, hence, release of this information in its current form could well cause substantial harm to the competitive position of Freedom Airlines.

It appears that Freedom Airlines intends to rely solely on funding provided by Mesa Air Group. Therefore, please provide a copy of Mesa Air Group's income statement for its fiscal year ended September 30, 2001, and for the 4' quarter of 2001. In addition, provide balance sheets for Mesa Air Group as of September 30 and December 31, 2001. On page 1 of Exhibit 18, the applicant states that Mesa Air Group has on hand over $74.5 million in cash and cash equivalents; has total assets of almost $423.4 million; total liabilities of $321 million; and stockholders equity of approximately $102.4 million. However, the most recent data provided (as of June 30, 2001) reflects differing numbers. Therefore, please indicate the source of the figures cited on page 1 of Exhibit 18.  

 According to the June 30, 2001, balance sheet, Mesa Air Group is currently in a negative working capital position (negative $25.4 million) with a current assets to current liabilities ratio of 0.89:1. This raises the question as to Mesa Air Group's ability to cover all of Freedom Airlines' pre-operating costs and provide other financial support that may be necessary in light of its own financial obligations. Therefore, please summarize all lines-of­credit or other loans currently available to Mesa Air Group, including the amount undrawn and the terms and conditions under which Mesa Air Group may use such funds. Further, please provide a copy of the contract between America West and Freedom Airlines that establishes the method and amount of America West's payments to Freedom Airlines for the services at issue.

Part 215 of the Department's regulations provides that an applicant for certificate or commuter authority must register its name and any trade names it wishes to use with the Department. The rule further states that the Department may register such name/trade name after the carrier gives notification to similarly named carriers of the applicant's proposed use of the name/trade name. In the case of an applicant for new certificate or commuter authority, the Part 215 registration is considered to be part of the application. However, this does not alleviate the need for an applicant to provide notice to similarly named air carriers. In this case, Aviation Services, Ltd., located in Guam (P.O. Box 1578. Hagatna, GU 96932) operates under the trade name of Freedom Air. As this trade name is similar to the applicant's corporate name, Freedom Airlines must provide notice of its name to Aviation Services and file evidence that it has done so in Docket OST-01-11206.

By:  Patricia Thomas

Index

Laker Airways (Bahamas) Limited

OST-95-477
OST-02-11401		 February 7, 2002 Consolidated Answer of the Dallas/Fort Worth International Airport U.S.- Bahamas Scheduled Combination
    Service List  

Laker proposes to operate DFW-Nassau/Freeport flights with B-727-200 aircraft "as soon as possible," and DFW Airport strongly supports its request. Laker's proposed flights would fill a void in DFW's current service pattern: DFW today lacks nonstop service to the Bahamas. Laker proposes to fill that void. Laker currently operates nonstop service from a number of U.S. cities to Nassau and Freeport, including Baltimore, Pittsburgh, and Cincinnati. There is no reason to believe that Laker would not inaugurate a comparable pattern of Nassau/Freeport service from DFW. The aviation regime between the United States and the Bahamas is very liberal. While there is no bilateral agreement in place, both governments have authorized services by U.S. and Bahamian carriers in the past expeditiously and without restriction. DFW Airport can perceive no reason why Laker's application should not be accorded similar expeditious and favorable treatment by the Department.

Counsel:  Silverberg Goldman, Michael Goldman, 202.944.3305

Index

Mesaba Aviation, Inc. d/b/a Mesaba Airlines

OST-01-10642
OST-01-10644
OST-01-10682
OST-01-10684		 February 7, 2002 Proposal of Mesaba Aviation, Inc. d/b/a Mesaba Airlines to Provides EAS Service (a) Fort Dodge-Mason City-Minneapolis/St. Paul; (b) Mason City-Minneapolis/St. Paul; (c) Watertown­ Minneapolis/St. Paul; and (d) Thief River Falls-Bemidji/Grand Forks- Minneapolis/St. Paul.

In response to the Department's Order 2001-12-26, Mesaba Aviation, Inc. d/b/a Mesaba Airlines (Mesaba), submits proposals to provide essential air service, with subsidies, at the above-captioned points. Mesaba has been prohibited from terminating unsubsidized service at these points by Order 2001­12-26. Mesaba's service proposals, requests for subsidies and related information are set forth in the attached exhibits. As indicated, Mesaba proposes to provide subsidized service as follows (a) Fort Dodge-Mason City-Minneapolis/St. Paul; (b) Mason City-Minneapolis/St. Paul; (c) Watertown­ Minneapolis/St. Paul; and (d) Thief River Falls-Bemidji/Grand Forks- Minneapolis/St. Paul. Mesaba will provide the service as "Northwest Airlink" service.

As to each point, Mesaba has proposed subsidized service at a level of two or three round trip flights per day. It is Mesaba's preference, however, to provide service at a level of three round trip flights per day at the subsidy levels stated in the attached exhibits showing that level of service. Mesaba proposes to operate the service using 30 or 34-seat Saab 340 aircraft, as it does currently.

By:  Mesaba Aviation, Robert Weil

Index

Societe Air France

OST-99-6076 February 7, 2002 Response to Information Request Amendment of Air France's
Foreign Air Carrier Permit

Subsequent to the filing of the Application, Air France experienced a fatal accident on July 25, 2000 when an Air France Concorde aircraft crashed on takeoff at Paris Charles de Gaulle Airport (CDG). The French Accident Investigation Bureau concluded that the cause of the accident that led to the loss of the aircraft and fatalities was the presence of a metal strip on the runway that led to a burst tire and the rupture of the fuel tank and the resulting fire. Air France Concorde aircraft were re-certificated by French Authorities and returned to scheduled service on November 7, 2001.

Counsel:  Silverberg Goldman, Michael Goldman, 202.944.3300, 

Index

United Air Lines, Inc.

OST-96-1346
 OST-97-2358		 February 7, 2002 Application for Renewal of Exemptions U.S.- Brazil Air Services and Codesharing
    Service List  

Renewal of these exemption authorities, as requested herein, is clearly in the public interest as it will ensure the continuation and further development of these services, both with United's own aircraft and on a code-share basis. The exemptions enable United to provide online service in conjunction with its code-share partner, VARIG, between the U.S. and a number of South American points that do not generate sufficient traffic to support direct U.S. carrier service. In addition, they provide United authority to operate its own aircraft between the U.S. and the above-named points in Brazil and beyond to Argentina, Uruguay, Paraguay and Chile. United presently serves Rio de Janeiro and Sao Paulo, Brazil, and is offering code-share service to those and other points in Brazil, pursuant to, inter alia, the exemption authority which it seeks to renew. United also relies on the exemption authority to operate its Chicago-Sao Paulo nonstop services in circumstances where Chicago is not a named U.S. point on United's U.S.-Brazil route in its Certificate of Public Convenience and Necessity for Route 632.

Counsel:  United and Wilmer Cutler, Jeffrey Manley, 202.663.6670, jmanley@wilmer.com

Index

United Air Lines, Inc. against The European Commission and National Implementing Authorities

OST-98-4030 February 7, 2002 Limited Waiver of Statutory Deadline Complaint - United Air Lines, Inc. against The European Commission and National Implementing Authorities
    Service List  

United/Lufthansa/SAS and the Commission are engaged in a dialog to resolve all outstanding issues concerning the remedies that the carriers offered to address the Commission's antitrust concerns. United understands that the Commission also has continued to negotiate with certain EU Member States changes to their national laws that the Commission believes will enhance the effectiveness of the private remedies offered by the parties. United, however, does not expect that those discussions will be complete before the March 3, 2002 expiration of the currently-applicable waiver of the statutory deadline. Therefore, United hereby offers a further 90-day limited waiver of the statutory deadline attached to its complaint in order to afford the Commission and the parties additional time in which to reach an amicable settlement of this proceeding.

Although it is important to underscore the U.S. government's resolve to reach a satisfactory resolution of this matter that preserves U.S. carrier rights under existing bilateral aviation agreements, United continues to hope that the Commission may be willing to adopt a position that will accomplish that end. Accordingly, United respectfully requests that the Department extend the deadline for acting on United's complaint in this matter to June 2, 2002.

Counsel:  United and Wilmer Cutler, Jeffrey Manley, 202.663.6670, jmanley@wilmer.com

Index

United Parcel Service Co.

OST-00-7282 February 7, 2002 Application for Renewal of Exemption  Los Angeles- Guadalajara All-Cargo
    Service List  

Requesting renewal of its exemption from Section 41101 of the Act authorizing UPS to provide certain scheduled non-stop all-cargo service between Los Angeles, California, and Guadalajara, Mexico, as more specifically described in the Notice of Action Taken in the captioned docket granting the original exemption.  UPS currently provides the service and has been providing the service, since the grant of the exemption. In lieu of the other information required by the Department's regulations, UPS relies on the history of its service in the market. The service has been, and remains, consistent with the U.S.-Mexico bilateral air services agreement

Counsel:  Kelley Drye, David Vaughan, 202.955.9864

Index

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

OST-02-11273 February 7, 2002 Answer of Continental Airlines

Word File

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

Among the applicants for new U.S.-Turkey codeshare frequencies, only Continental' would be a new entrant on U.S.-Turkey routes and initiate U.S.­Turkey service at two additional U.S. hubs, introducing an entire U.S. route network to the U.S.-Turkey market for the first time. Both Delta and United would duplicate the double daily frequencies they are already authorized to offer between the U. S. and Turkey without introducing any new airlines or U. S. networks to U.S.­Turkey routes. Continental urges the Department to grant its application for 14 U.S.-Turkey frequencies and to deny the applications by Delta and United.

Continental is the only new entrant in this proceeding. Instead of duplicating the existing Delta and United Turkey service, the Department should authorize Continental's daily New York/Newark-Istanbul and Houston-Istanbul service with its codeshare partner KIM and bring an additional domestic network online for service between the United States and Turkey. The codeshare service proposed by Delta and United would simply duplicate domestic networks already serving Turkey, but awarding Continental 14 weekly U.S. -Turkey frequencies will increase competition among the carriers and alliances providing service between the United States and Turkey. Only by designating a new carrier for U.S.-Turkey service can the Department take full advantage of the new opportunities available under the U.S.-Turkey bilateral aviation agreement.

United is requesting seven U.S.-Turkey frequencies so it can provide a second, duplicative daily flight between Frankfurt and Istanbul with its codeshare partner Lufthansa. As it stands now, United already holds 14 U.S.-Turkey third-­country codeshare frequencies, more than any other applicant. If United's request in this proceeding is approved, United would hold more U.S.-Turkey codeshare frequencies than any other U.S. carrier. The Department must provide Continental, which has no U.S.-Turkey frequencies, an opportunity to initiate new service between the United States and Turkey before allowing United to offer redundant connecting codeshare service.

Counsel:  Crowell Morning, Bruce Keiner, 202.624.2615, rbkeiner@cromor.com

OST-02-11273 February 7, 2002 Consolidated Answer of Delta Air Lines U.S.-Turkey Combination Service Third-Country Code-Share Opportunities

This is the last year remaining under the third-country codeshare phase-in restrictions of the U.S.-Turkey open skies agreement. It is also a year of unique challenges for carriers such as Delta, that have pioneered service to the middle east region. The grant of additional third-country codeshare frequencies to Delta will optimize the public benefits attainable from these valuable opportunities and is critical to Delta's ability to maintain and expand service to Turkey. Delta has submitted one of the strongest U.S.-Turkey service proposals. In conjunction with Alitalia, Delta would offer convenient and efficient nonstop- to-nonstop round-trip Istanbul connections from six U.S. cities - more than any other applicant.

Significantly, by authorizing codeshare service with Delta's new SkyTeam partner, the Department would bring the benefit of an entirely new transatlantic network to bear on U.S.-Turkey service. By contrast, United already operates fourteen U.S.-Turkey frequencies with Lufthansa, and Continental proposes to codeshare on exactly the same KLM flights as its domestic partner, Northwest. There are substantially greater untapped opportunities available through the Delta/Alitalia network, than the already well­funded Turkey codeshare networks operated by KLM and Lufthansa. In addition, it would be unfair to exclude Italy's flag carrier from enjoying the benefit of a single codeshare opportunity to Turkey with its U.S. partner, while conferring triple or quadruple Turkey codeshare frequencies to the flag carriers of Germany and the Netherlands.

So long as Delta receives an award of seven frequencies, Delta takes no position on which carrier receives the second daily codeshare opportunity. While Delta's proposal surpasses Continental's in terms of service benefits, Delta nonetheless considers it likely that the Department will award Continental seven frequencies. However, as demonstrated herein, all of the benefits of Continental's proposal can be attained with a single award of seven frequencies. Awarding Continental an entire additional traunch of Turkey frequencies to fund a single poorly-timed Houston connection would be a waste of a valuable bilateral opportunity. Delta should also receive priority for its second Turkey codeshare opportunity (its first with Alitalia), before United receives its third opportunity with Lufthansa.

Counsel:  Shaw Pittman, Alexander Van der Bellen, 202.663.8060

OST-02-11273 February 7, 2002 Answer of Houston and the Greater Houston Partnership U.S.-Turkey Combination Service Third-Country Code-Share Opportunities
    Service List  

Houston has developed important economic ties with Turkey, founded on the City's preeminent position in the energy industry. Houston-based companies, such as Conoco, Inc., are actively engaged in the distribution of natural gas and electrical power generation in Turkey. Overall, more than 160 Houston-based companies trade goods and services with Turkey and eleven have subsidiaries in Turkey. In 2000 (the most recent year for which data is available), Houston exchanged nearly 200,000 kilograms of air cargo with Turkey, despite the lack of any direct air services. That same year, the seaborne trade between the Port of Houston and Turkey was valued at more than $507 million, of which more than 71 % consisted of exports from Houston; Turkey was Houston's sixth-largest seaborne export market in Western Europe. In addition, Turkey is among the more than 70 nations that maintain a consulate in Houston; Houston is home to a chapter of the Turkish American Businessmen's Association; and Houston and Istanbul are official sister cities, further solidifying the economic and cultural ties between Turkey and Houston.

Continental would provide a new air bridge between Houston and Istanbul. In addition, it is the only carrier in this proceeding that would be a new entrant in the U.S.­Turkey market. The Department long has recognized the importance of authorizing new competition in limited-entry international markets, including by means of third-country code-share opportunities. In the U.S.-Ukraine Third-County Code-Share Opportunities case, the Department awarded the available frequencies to American Airlines on the basis that it "would increase the number of competitors in the most significant Ukraine market and would enhance competition among the code-share partnerships serving that city." Order 2000-8-11, at 4 (Aug. 10, 2000). In this proceeding, the selection of Continental, which does not now serve Turkey, would accomplish a similar purpose.

Counsel:  Leftwich Douglas, Rebecca Taylor, 202.434.9100, rltaylor@ldpllc.com 

OST-02-11273 February 7, 2002 Consolidated Answer of United Air Lines U.S.-Turkey Combination Service Third-Country Code-Share Opportunities
    Exhibits:  U.S.- Turkey Service  
    Service List  

The current competitive structure of the U.S.-Turkey market is as follows: two carriers operate daily nonstop service using their own aircraft: Delta and Turkish Airlines. American Airlines, Inc. code shares with THY on an unrestricted-frequency basis. Third-country code-share service, which is subject to frequency restrictions, is provided by United, Northwest Airlines, Inc., and Delta (in conjunction respectively with Lufthansa, KLM, and Air France). Delta is the only carrier that operates both nonstop and third-country code-share services.

In response to the Department's January 7, 2002 notice, three carriers have applied for a total of 28 frequencies to support the following services:

United

7 frequencies

US - Istanbul via Frankfurt with Lufthansa

Delta

7 frequencies

US - Istanbul via Milan with Alitalia

Continental

14 frequencies

7 x Newark - Istanbul via Amsterdam with KLM

 

 

7 x Houston - Istanbul via Amsterdam with KLM

United's application for seven frequencies should be granted on the basis of the superior public benefits its proposed services would offer compared to the other applicants. United would use seven frequencies to offer a second daily U.S.-Istanbul service in conjunction with Lufthansa via Frankfurt; each of the other applicants also proposes daily code-share service to Istanbul, but United would use its second daily service to offer more total benefits than the others.

Counsel:  United and Wilmer Cutler, Jeffrey Manley, 202.663.6670, jmanley@wilmer.com

Index

U.S.- U.K. Alliance Case

OST-01-11029 February 7, 2002 Notice of Communication in Case Between Michael Jackson, Deputy Secretary and Dick Armey, Majority Leaders U.S.- U.K. Alliance Case

By:  Michael Jackson

Index

Home | OST Filings by Number | OST Orders and Notices | OST Filings by Carrier
OST Filings by Proceeding | OST Filings by Day | Office of Intl Aviation Filings by Carrier | Office of Intl Filings by Day

© Copyright 2002 Airline Information Research, Inc.   All rights reserved.