OST-96-1603 / Northwest Airlines / June 4, 1997

NOTICE: Any person wishing to support or oppose this application must file an answer by June 19, 1997, and must serve that answer on Northwest Airlines, Inc. and all persons served with this application.

Application of

for an exemption pursuant to 49 U.S.C. § 40109 to code-share (U.S.-U.K.)

Northwest Airlines, Inc. ("Northwest"), pursuant to 49 U.S.C. § 40109 and 14 C F.R. § 302.400 et seq., hereby requests consolidation and renewal of its various exemptions from 49 U.S.C. § 41101 to enable Northwest to continue to provide scheduled foreign air transportation of persons, property and mail between points in the United States and points in the United Kingdom, via Amsterdam and London (Gatwick), pursuant to a codeshare arrangement with Air U.K. Limited ("Air U.K."). By this application, Northwest seeks consolidation of its existing exemption authority and renewal for a two year period. /1

1/ In submitting this renewal application, Northwest invokes the automatic extension provisions of the Administrative Procedure Act, 5 U.S.C. § 558(c), as implemented in Part 377 of the Department's Rules, 14 C.F.R. Part 377.

In support of this Application, Northwest states as follows:

1. Northwest seeks consolidation and renewal of its existing authority to provide scheduled foreign air transportation of persons, property and mail between the United States and the United Kingdom pursuant to Northwest's codesharing arrangement with Air U.K. Northwest provides these services by displaying its two letter designator code on Air U.K. flights between, on the one hand, Amsterdam and London (Gatwick) and, on the other hand, points in the United Kingdom. Northwest does not hold out service in the local Amsterdam-U.K. or London (Gatwick)-U.K. markets but rather sells transportation between points in the United States and points in the United Kingdom only.

2. The Department has granted Northwest authority to codeshare on Air U.K.'s Amsterdam-U.K. and London (Gatwick)-U.K. flights on three separate occasions.

(a) By Notice of Action Taken dated August 4, 1995, effective through August 4, 1997 (Docket OST-95-325), the Department granted Northwest exemption authority to provide codeshare service in conjunction with Air U.K. between: (1) points in the United States, on the one hand, and Edinburgh and Glasgow, via London (Gatwick), on the other, and (2) between points in the United States, on the one hand, and Aberdeen, Belfast, Birmingham, Bristol, Cardiff, Edinburgh, Glasgow, Humberside, Leeds/Bradford, London (Stansted), Manchester, Newcastle, Norwich, Southampton and Teeside, via Amsterdam.

(b) By Notice of Action Taken dated August 15, 1996, effective through July 24, 1998 (Docket OST-96-1603), the Department granted Northwest exemption authority to provide codeshare service in conjunction with Air U.K. between: (1) points in the United States and London City Airport, via Amsterdam.

3. By this application, Northwest requests consolidation and renewal of the foregoing exemptions for a two-year period to enable Northwest to continue to provide U.S.-U.K. scheduled foreign air transportation by code-sharing on Air U.K.'s Amsterdam-U.K. and London (Gatwick)-U.K. flights.

4. The considerations that promoted the Department to grant the initial exemptions set forth above now support their renewal. Approval of this application is fully consistent with the terms of the U.S.-U.K. Air Transport Services Agreement ("Agreement"), as amended by the Memorandum of Consultations dated June 5, 1995 ("MOC"). Furthermore, renewing Northwest's exemption authority will serve the public interest, for the same reasons of passenger convenience and enhanced competition discussed in Northwest's and Air U.K.'s initial applications in Dockets OST-95-324 and OST-95-325. Approval of this renewal application also is consistent with Department precedent and policy with respect to code-share services. See U.S. International Air Transportation Policy Statement, April 4, 1995, pp. 4-5.

5. Northwest requests approval of this application for a period of two years, to avoid unnecessary submission and review of non-controversial requests for authority. Northwest's request for a renewal for two years is consistent with the MOC, which adds to the Agreement a new paragraph 13 of Section 5 of Annex 1 discussing U.S. approval of new applications for economic authority to permit a U.K. airline to implement code-sharing arrangements, which paragraph states that "[A]ny applications submitted in accordance with this paragraph shall be for a period of no less than two years." (MOC, p. 3).

6. Northwest and Air U.K. will continue to conduct their code-share operations in accordance with the Department's regulations, including the requirements contained in 14 C.F.R. §399.88. In addition, as required by the Department, Northwest and Air U.K. will continue to ensure that the foreign air transportation in question shall be sold by the carrier holding out the service and that the carrier selling the transportation shall accept all obligations established in its contract of carriage with the passenger for the entire through service.

7. Pursuant to the Department's letter to CRAF participants dated June 1, 1995, Northwest hereby states that this application will have no impact on Northwest's CRAF commitments.

WHEREFORE, Northwest Airlines, Inc. requests that the Department consolidate and renew for a two-year period Northwest's exemptions from 49 U.S.C. § 41101 to permit Northwest to provide U.S.-U.K. scheduled foreign air transportation by code-sharing on Air U.K.'s Amsterdam-U.K. and London (Gatwick)U.K. flights.

Respectfully submitted,

Megan Rae Poldy

Associate General Counsel

NORTHWEST AIRLINES, INC.

901 15th Street, N.W.

Suite 310

Washington, D.C. 20005

(202) 842-3193

June 4, 1997