ost983515

OST-98-3515

Kenya Airways Limited and Northwest Airlines, Inc. (Exemptions and Statements of Authorization, US-Amsterdam-Nairobi-Beyond)

OST-98-3515 | February 18, 1998

Joint Application for Exemptions and Statements of Authorization

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Joint Applicants initially intend to code-share on Northwest's flights connecting to Kenya Airways' Nairobi-Amsterdam-Lilongwe flights. Kenya Airways will operate its segment using A310-300 and B737-300 aircraft.

Exhibit JE-1: Aircraft Fleet
Exhibit JE-2: Fleet Maintenance and ICAO Declaration
Exhibit JE-3: Certified Copy of Operating Authority
Exhibit JE-4: Officers, Directors, and Key Management Personnel
Exhibit JE-5: Financial Data Summaries
Exhibit JE-6: Certificate of Insurance
Exhibit JE-7: Waivers of Warsaw Convention on Liability Limits
Exhibit JE-8: KLM Holdings and Subsidiaries

Service List

Counsel: Zuckert Scoutt, James Devall, 202-298-8660 for Kenya / Northwest, Megan Rae Poldy, 202-842-3193

Kenya Airways Limited and Northwest Airlines, Inc. (US-Amsterdam-Nairobi-Beyond)

OST-98-3515 | Undocketed | March 5, 1998

Answer of Delta Air Lines

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By letter dated September 22, 1997, Delta requested permission from the Kenya civil aviation authorities to implement third-county code-share service to Nairobi, in conjunction with Delta's alliance partner, Sabena. When authorization was not forthcoming, Delta's representatives met in person with the Kenyan authorities in October, 1997, and on several occasions thereafter. While Delta has been told that Kenya was considering the request, nearly six months later Delta still does not have permission to operate to Kenya. Accordingly, in light of this clear failure of reciprocity, the Department should refrain from granting the Joint Application until Delta's request to serve Kenya is honored.

Counsel: Delta and Shaw Pittman, Robert Cohn, 202-63-8060

Answer of United Air Lines

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United urges the Department to grant Kenya Airways and Northwest the authority they seek with respect to the specific services on which they propose to code share immediately. The government of Kenya has approved code sharing by United and Lufthansa German Airlines ("Lufthansa") on services operated by Lufthansa between Germany and Kenya. In these circumstances, approval of the Kenya Airways/Northwest services in markets where immediate implementation is proposed (Amsterdam-U.S. and Amsterdam-Nairobi-Lilongwe) are supported under principles of comity and reciprocity. To the extent that these carriers seek blanket authority at this time to support future expansion into other markets, approval would be inconsistent with Department policy, and those portions of their joint application should be deferred or dismissed without prejudice.

The precise scope of the code-share services that are proposed to be implemented immediately by Kenya Airways and Northwest is not entirely clear from the text of their application. While this might be clarified by a review of their cooperation agreement, that document has not, so far as United is aware, been filed with the Department.

Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130

Kenya Airways Limited and Northwest Airlines, Inc. - (US-Amsterdam-Nairobi-Beyond)

OST-98-3515 | Undocketed | March 16, 1998

Reply of Kenya Airways and Northwest Airlines

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Kenya Airways and Northwest believe the procedure recommended above would address the concerns of United relative to future service in markets where United or other carriers might express an interest. At the same time, the procedure would provide the flexibility for Kenya Airways and Northwest to implement new services in U.S.-Africa markets without the lengthy delays, and additional costs, involved in repeated applications filed with the Department.

Counsel: Zuckert Scoutt, James Devall, 202-298-8660 for Kenya / Northwest Airlines, Megan Rae Poldy, 202-842-3193

Kenya Airways Limited and Northwest Airlines, Inc.

OST-98-3515 | Undocketed | March 19, 1998

Re: Codeshare Agreement

Cooperative Marketing Agreement, March 19, 1998 (Exhibits Redacted)

Counsel: Zuckert Scoutt, James Devall, 202-298-8660

Kenya Airways Limited and Northwest Airlines, Inc. (US-Amsterdam-Nairobi-Beyond)

OST-98-3515 | Undocketed | March 25, 1998

Motion for Leave to File and Surreply of Delta Air Lines

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The Joint Applicants erroneously contend that because Kenya has selectively approved certain U.S. carrier code-share services, Kenya Airways should be granted extrabilateral authority while Delta arbitrarily should be denied access. Under well-settled principles of comity and reciprocity, Kenya has no right to pick and choose which U.S. carriers will be afforded access to Kenya, and which will not. The Joint Applicants do not deny that the Northwest/Kenya Airways proposal has been given preferential treatment by the Kenyan civil aviation authorities because it involves an alliance including their flag carrier and its major foreign investor (KLM). Furthermore, if, contrary to established policy and precedent, Kenya Airways was granted extrabilateral code-share authority in these circumstances, the Department would lose all negotiating leverage to secure fair treatment for Delta, and there would be even greater incentive for Kenya to withhold Delta's authority.

Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060

Kenya Airways Limited and Northwest Airlines, Inc.

OST-98-3515 | Undocketed | April 30, 1998

Re: Joint Application

Pursuant to the request of Mr. Tourtellot, enclosed is a copy of the code-share agreement which is the subject of the above-referenced proceeding. In this copy of the agreement, the only items redacted are those pertaining to inter-carrier pricing, due to the proprietary nature of that information, and matters not relevant to the code-share agreement (frequent flyer program and staff contact names and phone numbers). While the agreement shows an Exhibit F as a general sales agency agreement, in fact no such agreement exists between the parties.

Codeshare Agreement - Redacted Copy
Table of Contents
Cooperative Marketing Agreement
Exhibit A - Codeshare Markets
Exhibit B - Frequent Flyer Agreement (Redacted)
Exhibit C - Bilateral Protae Agreement
Exhibit D - Schedule File Information
Exhibit E - Irregular Operations Rule 80B
Exhibit F - General Sales Representation Agreements
Exhibit G - CRS and DCS Objectives and Seamless Service
Exhibit H - Staff Contacts by Area of Responsibility (Redacted)

Counsel: Zuckert Scoutt, James Devall, 202.298.8660

Kenya Airways Limited and Northwest Airlines, Inc.

OST-98-3515 | Undocketed | May 21, 1998

Re: Joint Application - Revised Pages from Exhibit C of Codeshare Agreement

Pursuant to the request of Mr. Tourtellot of the Office of the General Counsel, enclosed are revised pages from Exhibit C in the above- referenced matter.

Counsel: Zuckert Scoutt

Northwest Airlines, Inc. and Kenya Airlines Limited (US-Amsterdam-Nairobi-Beyond)

OST-98-3515 | Undocketed | June 17, 1998

Supplemental Joint reply of Northwest Airlines and Kenya Airways and Motion for Leave to File

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Northwest and Kenya Airways filed a Joint Reply in this Docket on March 15, 1998, in which they demonstrated that the circumstances of this case warrant the granting of "blanket" code-share authority, subject to the requirement that the parties notify the Department before entering any new markets. Northwest and Kenya Airways continue to believe that the unique circumstances presented here justify a deviation from the Department's general policy against granting blanket code-share authority other than in open skies markets. Nevertheless, in an effort to expedite the Department's action on this Joint Application, the parties hereby notify the Department that they are willing to accept the limited authority urged by United, e.q. authority only in those markets in which the parties intend to implement service immediately. Under these compelling circumstances, Northwest and Kenya Airways respectfully urge the Department to take immediate action on their Joint Application and grant the parties the requisite exemption and statement of authorization to enable Northwest to provide code-share service in the U.S.-Africa market by displaying the "NW" designator code on Kenya Airways' flights in the following markets: (1)Amsterdam-Nairobi; (2) Nairobi-Mombasa; and (3) Nairobi-Lilongwe.

Attachment: Letter Agreement between Northwest and Kenya, 6/9/98

Counsel: Northwest, Megan Rae Poldy, 202-842-3193 / Zuckert Scoutt, James Devall, 202-298-8660 for Kenya

Kenya Airways Limited and Northwest Airlines, Inc. - (Notice of Action Taken)

OST-98-3515 | Undocketed | Filed February 18, 1998 | Action Taken July 6, 1998

Notice of Action

Kenya Airways requested (1) an exemption from 49 U S.C. 41301 to conduct foreign air transportation of persons, property and mail between the United States, via the intermediate point Amsterdam, and Nairobi and beyond, pursuant to a code-share arrangement with Northwest Airlines under which Kenya Airways will place its airline designator code on flights operated by Northwest between the United States and Amsterdam; and (2) a statement of authorization pursuant to 14 CFR 212 of the Department's regulations to permit it to display Northwest's designator code on flights operated by Kenya Air,vays between Amsterdam and Nairobi and beyond.

Northwest Airlines requested (1) an exemption from 49 U.S.C. 41101 to conduct foreign air transportation of persons, property and mail between the United States, via the intermediate point Amsterdam, and Kenya, and beyond, pursuant to a code-share arrangement with Kenya Airways under which Northwest will place its airline designator code on flights operated by Kenya Airways between Amsterdam and Nairobi and beyond; and (2) a statement of authorization pursuant to 14 CFR 212 of the Department's regulations to permit it to display Kenya Airways' designator code on flights operated by Northwest between the United States and Amsterdam.

Applicant Rep(s).: James Devall, 202.298.8660; Megan Rae Poldy, 202.842.3193

Kenya Airways Limited and Northwest Airlines, Inc.

OST-98-3515 Undocketed	September 14, 1998	Supplemental Joint Application for Exemptions and Statements of Authorization	Codesharing: US-Amsterdam-Nairobi- Beyond
		Re: Letter of Agreement on Codeshare Routes Service List

Kenya Airways and Northwest request in this Supplemental Joint Application the necessary exemption and statement of authorization authority to enable Kenya Airways to place Northwest's designator code on Kenya Airways flights between Nairobi, Kenya and: (1) Seychelles, Seychelles Islands; (2) Zanzibar. Tanzania; (3) Dar Es Salaam, Tanzania; (4) Harare, Zimbabwe; (5) Lusaka, Zambia; (6) Kigali. Rwanda; and (7) Entebbe, Uganda.

Answers are due by September 29, 1998.

Counsel: Zuckert Scoutt, James Devall for Kenya Airways, 202.298.8660; Megan Poldy for Northwest Airlines, 202.842.3193

Kenya Airways Limited & Northwest Airlines, Inc.

OST-98-3515 Undocketed	Filed September 14, 1998 Action Taken October 30, 1998	Notice of Action	Nairobi, Kenya and Seychelles, Seychelles Islands/Zanzibar, Tanzania/Dar Es Salaam, Tanzania/Harare, Zimbabwe/Lusaka, Zambia/Kigali, Rwanda/Entebbe, Uganda
		Appendix A: Foreign Air Carrier Conditions of Authority

Relief requested: Amend exemption from 49 U.S.C. 41301 and statement of authorization pursuant to 14 CFR 212 of the Department's regulations granted July 6, 1998, to add authority to permit Kenya Airways to display Northwest's designator code on flights operated by Kenya Airways between Nairobi, Kenya, and (1) Seychelles, Seychelles Islands; (2) Zanzibar, Tanzania; (3) Dar Es Salaam, Tanzania; (4) Harare, Zimbabwe; (5) Lusaka, Zambia; (6) Kigali, Rwanda; and (7) Entebbe, Uganda.

Applicant Reps.: James Devall for for Kenya, 202.298.8660, Megan Rae Poldy for Northwest, 202.842.3193

By: Paul Gretch

Kenya Airways Limited and Northwest Airlines, Inc.

OST-98-3515	May 7, 1999	Joint Application for Renewal of Exemptions and Statements of Authorization	US-Amsterdam-Nairobi-Beyond
		Service List

Counsel: Northwest and Zuckert Scoutt, James Devall, 202-298-8660