OST-98-3419 / 1998 US-Japan Combination / Consolidated Answer of Delta to Amended Applications of American and Continental / March 26, 1998

 

1998 U.S.-JAPAN COMBINATION SERVICE PROCEEDING / Docket OST-98-3419

 

CONSOLIDATED ANSWER OF DELTA AIR LINES, INC.

TO AMENDED APPLICATIONS OF AMERICAN AND CONTINENTAL

FOR ADDITIONAL 1998 FREQUENCY ALLOCATIONS

 

Three carriers have submitted amended applications for additional 1998 frequency awards: (1) on March 19, 1998, Continental Micronesia, Inc. ("Continental") amended its U.S.-Japan application, requesting five Honolulu-Tokyo frequencies for service to begin December 15, 1998; (2) American Airlines, Inc. ("American") amended its application on March 24, 1998, requesting an additional frequency for San Jose-Tokyo service; and (3) by amendment dated March 25, 1997, Delta Air Lines, Inc. ("Delta") has requested an allocation of six frequencies to begin Honolulu-Tokyo service on December 15, 1998. The Department issued Notices establishing an accelerated procedural schedule, with common answer dates for all three applications.

Provided that Delta's amendment is accepted, Delta has no objection to the Department's consideration of the Continental and American amended applications for

 

Consolidated Answer of Delta Air Lines, Inc.

Page 2

 

additional 1998 service. However, as pointed out in Delta's concurrently-filed Objections, Northwest Airlines, Inc. ("Northwest"), the dominant carrier between the United States and Japan, has obtained control over Continental through its substantial equity holding, its ability to veto significant corporate decisions, its representation on Continental's Board of Directors, and its ability to control business decisions in the context of the Northwest/Continental Alliance Agreement. Because Continental has become, in effect, the alter-ego of Northwest, the Department should not award any limited-entry frequencies to Continental/Northwest. Delta takes no position on the merits of American's amended application.

In light of the high priority the Department has placed on the immediate implementation and utilization of the extremely valuable U.S.-Japan rights and the important public interest benefits that would result from such services, it makes eminent sense to limit consideration of the award of available frequencies to proposals involving service in 1998. The number of frequencies requested for 1998 services does not exceed the number of frequencies available under the U.S.-Japan MOU.

 

Consolidated Answer of Delta Air Lines, Inc.

Page 3

 

WHEREFORE, Delta Air Lines, Inc. urges the Department to grant Delta certificate authority and allocate six frequencies to enable Delta to operate six weekly flights between Honolulu, Hawaii and Tokyo, Japan.

Respectfully submitted,

Robert E. Cohn

Alexander Van der Bellen

SHAW PITTMAIN POTTS & TROWBRIDGE

2300 N Street, N.W.

Washington, D.C. 20037

(202) 663-8060

Counsel for DELTA AIR LDIES, INC.