OST-98-3419 / 1998 US-Japan Combination / Answer of Georgia & Atlanta / February 17, 1998
1998 U.S.-JAPAN COMBINATION SERVICE PROCEEDING
ANSWER OF THE GEORGIA AND ATLANTA PARTIES
TO APPLICATIONS FOR U.S.-JAPAN SERVICE
The Georgia and Atlanta Parties (the State of Georgia, the City of Atlanta, Hartsfield Atlanta International Airport, and the Metro Atlanta Chamber of Commerce) strongly support the applications of Delta Air Lines, Inc. ("Delta") for new services between Atlanta and Japan. Delta has applied for Atlanta-Tokyo and Atlanta-Osaka service.
The newly proposed services would be a major economic boost in the long-term growing relationship between Georgia and Japan. Japanese companies invested more than $3 billion in Georgia through the end of 1996. Japanese company investment in Georgia is larger than foreign investment from any other country. The Georgia Department of Industry, Trade and Tourism maintains data on foreign investment, and it shows that Japanese investment is about 23 percent of all foreign investment in the State.
During 1996, the latest year for which complete data is currently available, nine Japanese companies announced plans for significant expansions of manufacturing facilities in Georgia, and a tenth company announced plans for an entirely new plant in the State. More current information is being gathered and will appear in Exhibits for the Georgia and Atlanta Parties.
There is absolutely no question that additional air service, particularly by Delta, the major hub carrier at Atlanta, will fuel additional significant investment developments. Air service provides a powerful stimulus for economic development, particularly in high technology industries, which extensively utilize combination carrier services to ship air cargo.
Hartsfield Atlanta International Airport, ("ATL") is one of the largest airports in the world. The Delta hub at ATL is the largest carrier hub in the world. Delta flights blanket Georgia and the entire Southeast region with excellent connecting service to and from Atlanta. The addition of better online service to Japan will be a major plus for the Southeast region and Georgia cities outside of Atlanta, as well as a further stimulus for development in Atlanta.
Atlanta has enjoyed nonstop service to Tokyo three days per week on Japan Airlines for several years. Additionally, Delta has provided one-stop single plane service to Tokyo over Portland, Oregon. Delta is proposing daily nonstop service to Tokyo immediately (and thanks to the Department's excellent decision to authorize pendente lite exemptions, that service will begin in June) and next year to Osaka. We have no doubt that Atlanta will support this proposed new service.
We have reviewed other applications for new service in this proceeding as well. It appears clear that the Atlanta-Tokyo service proposal is far superior to other Tokyo proposals, as we note below:
Chicago, which today has 20 nonstop flights per week to Tokyo and will receive 8 more from United beginning in April, has an American Airlines, Inc. ("American") application for 7 more weekly flights. That is 15 new weekly flights proposed to begin within 3 months.
Newark, which usually argues it is part of New York so as to include all positive New York economic data and traffic, was specifically defined in this U.S.-Japan agreement as NOT being New York. Continental proposes daily service, but not until late Fall of this year. It is not clear what Continental intends to do with the seven pendente lite frequencies it was given by the Department for new Tokyo service, since the startup dates for both its Houston and Newark proposals are too late to allow any use for that new authority.
New York JFK Airport currently has 32 weekly nonstops to Tokyo, and American proposes another seven.
Boston is another American proposal for new nonstop service, and it currently has none. American does not operate a hub at Boston.
We would argue that the Delta proposal for Atlanta-Tokyo service in 1998 is clearly superior to any- proposals for new Tokyo service in 1999 or 2000. Likewise, we believe Delta's proposal for Atlanta-Osaka service for 1999 would be clearly superior to any Osaka proposal in 2000.
We urge you to give final approval as soon as possible for Delta's Atlanta-Tokyo and Atlanta-Osaka proposals. The travelling and shipping public will benefit enormously from these proposed new air services.
Respectfully submitted,
Bill Alberger
BALL JANIK, LLP
1455 F Street N.W.
Suite 225
Washington, D.C. 20005
(202) 638-3307
Counsel to the GEORGIA & ATLANTA PARTIES
February 17, 1998