Order 98-3-18 / OST-98-3615 / US Airways v UK / Issued March 18, 1998
Issued by the Department of Transportation on the 18th day of March, 1998
Served: March 18,1998
Complaint of
US AIRWAYS, INC.
against
THE GOVERNMENT OF THE UNITED KINGDOM
under 49 U.S.C. § 41310
ORDER
On March 12, 1998, US Airways, Inc., filed a complaint under 49 U.S.C. § 41310 against the Government of the United Kingdom. US Airways alleges that the United Kingdom has violated its obligations under the U.S.-U.K. aviation agreement by refusing to ensure that US Airways is provided the Gatwick Airport access it requires to operate its new Charlotte-London (Gatwick) daily service that is scheduled to commence May 7, 1998.
In support of its complaint, US Airways states that by
Order 98-2-20, issued February 20, 1998, the Department awarded it Charlotte-London (Gatwick) authority and at the same time withdrew Laker Airways' unused designation to serve the Ft. Lauderdale-London (Gatwick) route, but that US Airways has not received the necessary slots to operate the service from the Gatwick slot coordinator. US Airways argues that while the United States has the right under the U. S.-U.K. aviation agreement to switch U. S. gateway points, the actions of the United Kingdom effectively deny US Airways the ability to use that authority and have precluded it from planning, promoting, and selling the new service. At the same time, however, US Airways maintains that British Airways continues to operate its monopoly Charlotte-London service without interruption. In these circumstances, US Airways argues that the United Kingdom has violated its obligations under the United States-United Kingdom Air Transport Agreement and related understandings by denying US Airways a fair and equal opportunity to compete under Article 11 of the Agreement.
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US Airways maintains that in these circumstances immediate countermeasures by the United States are fully justified. US Airways requests that the Department (1) require answers to this complaint by March 17, 1998, and (2) issue, on an expedited basis, an order approving US Airways' complaint and providing that, unless the United Kingdom immediately agrees to provide timely and competitive access at Gatwick to support US Airways' new Charlotte-London (Gatwick) nonstop service, the U. S. authority held by British Airways to operate one daily flight on the New York-London (Gatwick) route, a service US Airways argues is comparable to its Charlotte-London nonstop service, will be suspended on May 7, 1998. /1
Section 41310 provides that the Department shall approve, deny, dismiss, or set a complaint for hearing, or institute other procedures proposing remedial action, within 60 days after receipt of the complaint. We may extend the period for taking action up to 90 days from the date of the complaint if we conclude that it is likely that the complaint can be resolved satisfactorily through negotiations. Y/e may further extend the action deadline up to 180 days from receipt of the complaint, in 30-day increments, if we find that intergovernmental negotiations have progressed to a point that a satisfactory resolution of the complaint appears imminent.
In order to develop the record for our consideration of this matter, we invite interested persons to answer US Airways' complaint in Docket OST-98-3615. We will require that answers be filed no later than March 23, 1998. Answers filed should include all data evidence, and arguments upon which the respondents rely to support their positions, and should cover all substantive and procedural issues that they wish the Department to consider. Replies to any answers should be filed no later than March 25, 1998. /2 While US Airways has requested a somewhat more accelerated procedural schedule, we believe that the expedited procedural schedule we are establishing properly balances the need of providing all interested parties with an adequate period of time for comment while still ensuring prompt consideration of US Airways' complaint.
After receipt and consideration of responsive pleadings and any supporting evidence submitted, we will issue a further order in this proceeding.
ACCORDINGLY
1. We invite interested persons to file answers to the complaint of US Airways, Inc., in Docket OST-98-3615, no later than March 23, 1998, and if answers are filed, replies to those answers should be filed no later than March 25, 1998. /3 Answers to the complaint and replies, if any, should be served upon the persons named in ordering paragraph 3, below;
1/ US Airways states that although British Airways operates monopoly service between Charlotte and London (Gatwick), US Airways is not requesting that British Airways' U.S. authority for that route be suspended in order not to inconvenience passengers in the Charlotte-London market.
2/ We assign to the Director, Office of International Aviation, the authority to dispose of all procedural questions arising in this proceeding, except for requests for oral evidentiary hearing, until further Department order.
3/ The original submission is to be unbound and without tabs on 8 1/2" x ll" white paper using dark ink (not green) to facilitate use of the Department's docket imaging system.
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2. If timely and properly supported answers are filed, we will give full consideration to the matters and issues raised by the answers before we take further action; and
3. We will serve this order on Air Transport International LLC; American Airlines, Inc.; American Trans Air, Inc.; Amerijet International, Inc.; Challenge Air Cargo, Inc.; Continental Airlines, Inc.; Delta Air Lines, Inc.; DHL Airways, Inc.; Emery Worldwide Airlines, Inc.; Evergreen International Airlines. Inc.; Federal Express Corporation; Florida West International Airways, Inc.; Laker Airways, Inc.; Northwest Airlines, Inc.; Polar Air Cargo, Inc.; Southern Air Transport, Inc.; Tower Air, Inc.; Trans World Airlines, Inc.; United Air Lines, Inc.; United Parcel Service Company; US Airways, Inc.; World Airways, Inc.; Air U. K. Limited; British Air Limited; British Airways Plc; Virgin Atlantic Airways Limited; the Ambassador of the United Kingdom of Great Britain and Northern Ireland in Washington, D.C.; the U.S. Department of State (Office of Aviation Negotiations); the Assistant U. S. Trade Representative (Office of the United States Trade Representative); the U.S. Department of Commerce (Office of Service Industries); and the Air Transport Association.
By:
CHARLES A. HUNNICUTT
Assistant Secretary for Aviation and International Affairs
(SEAL)