UNITED AIR LINES, INC. / Docket OST-98-3624

NORTHWEST AIRLINES, INC. / Docket OST-98-3653

Yesterday, Delta objected to the applications of Northwest and United for interim blanket exemption authority pursuant to the terms of the recently executed Memorandum of Understanding between the United States and Japan ("MOU"). In its objection, Delta claims, wrongly, that Northwest's and United's requests for blanket U.S.-Japan exemption authority are inconsistent with Department policy. Delta instead urges the Department to require Northwest and United to file a separate exemption application for each new U.S.Japan service contemplated. Apparently Delta has failed to read the Department's multiple Notices and Orders relating to the new MOU, wherein the Department has made it crystal clear that it intends to grant both U.S. and Japanese incumbent carriers broad economic authority consistent with

the new MOU, and on an expedited basis to enable prompt utilization of these valuable new aviation rights. /1 Indeed, as both Northwest and United pointed out in their original applications, the Department already has granted both Federal Express and Japan Airlines blanket exemption authority similar to the authority now sought by Northwest and United. See Notice of Action Taken in Docket OST-98-3436, dated March 5, 1998; Notice of Action Taken in Docket OST-98-3449, dated February 9, 1998.

1/ See Notice in Dockets OST-98-3418 and OST-98-3419, served February 3, 1998, at 2 (noting that "the U.S.-Japan rights for incumbent carriers would be unrestricted" and inviting both U.S. and Japanese incumbent carriers to file applications for authority they do not currently hold "which we will process on an expedited basis"); Notice in same Dockets served February 10, 1998 (denying Hawaiian Airlines' Motion to extend certain procedural dates in the U.S.-Japan Services Proceeding); and Order 98-2-11 in same dockets (denying Hawaiian Airlines' petition for reconsideration).