OST Docket Filings for August 26, 1997

OST Docket Filings for August 26, 1997

Pleadings:

US-Egypt (2) | US-Poland

Notices of Action Taken:

Aero California

Notices and Orders:

Air 4000 | US-Czech Third-Country Code-Share Opportunities

Aero California S.A. de C.V. (Notice of Action Taken)

OST-97-2791 | Posted August 26, 1997

Notice of Action Taken

Exemption to conduct scheduled combination service between Zacatecas and Dallas/Ft. Worth for a period of one year.

Counsel: David Coburn, 202-429-8063

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Air 4000, Inc. (Waiver)

OST-95-965 | August 25, 1997

Letter from John Coleman to Counsel

Based on the information in the application, specifically that Air 4000 has recently undergone an ownership change and is actively working towards becoming operational, we find that it is in the public interest to grant Air 4000’s request in order to allow it additional time to complete its financing arrangements and FAA certification. We understand that additional information in support of Air 4000’s fitness will be filed in the near future.

By: John Coleman, Office of Aviation Analysis

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Air Afrique (Exemption, Abidjan-New York via Bamako)

OST-95-350 | August 26, 1997

Application for Renewal of an Exemption

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Pursuant to 49 U.S.C. §40109 (former Section 416(b) of the Federal Aviation Act of 1958 as amended), and Subpart D of the Department's Procedural Regulations, Air Afrique hereby applies for renewal of the exemption granted to it by Order 96-10-13, which authorizes Air Afrique to serve Bamako, Mali on an intermediate point basis in conjunction with the Company's existing Abidjan-Dakar-New York service. Air Afrique respectfully requests that such authority be renewed for an additional year.

Service List

Counsel: Zuckert Scoutt, William Callaway, 202-298-8660

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Air Jamaica Limited

OST-96-1881

Re: Letter from Amerijet August 13, 1997

Re: Letter from Amerijet August 18, 1997

Counsel: Seeger Potter, John Richardson

Re: Reply of Air Jamaica August 18, 1997

Counsel: Hogan Hartson, George Carneal

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American Airlines, Inc. and China Airlines, Ltd. (Exemption and Amended Statement of Authorization, US-Ho Chi Minh City via Taipei)

OST-97-2823 | Undocketed | August 26, 1997

Consolidated Reply of United Air Lines

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As the Department is aware, United has for some time sought to exercise its right to serve Vietnam under its existing certificate authority. United wants to operate service to Vietnam in its own aircraft by extending an existing transpacific flight from an intermediate point in Asia such as Tokyo or Osaka. Efforts by United to exercise these rights have, however, been unsuccessful in the absence of a bilateral agreement governing U.S.-Vietnam air services.

Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130

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Federal Express Corporation (US-Vietnam)

OST-97-2856 | August 26, 1997

US-Vietnam Cargo Service / Corrected Page 3

Federal Express and Vietnam Airlines are currently engaged in commercial discussions toward the objective of establishing a cooperative joint operating and marketing arrangement between the two carriers.

Counsel: Shaw Pittman, Nathaniel Breed

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Fine Air Services, Inc. and Southern Air Transport, Inc. / Federal Express Corporation, Arrow Air, Inc., Florida West International Airways, Inc.

OST-97-2852 | OST-97-2855 | OST-97-2548 | August 26, 1997

Joint Consolidated Answer of Federal Express, Arrow Air, and Florida West

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For the reasons discussed in this Answer and the attached and referenced Petition for Review, Federal Express, Arrow and FWIA urge the Department to issue an Order dismissing the applications of Fine Air and Southern Air, insofar as those applications request the allocation of any of the Argentina cargo frequencies at issue in Docket OST-97-2548. The Joint Applicants further respectfully urge the Department to issue an immediate Final Order approving the transfer of three Argentina cargo frequencies to Federal Express in Docket OST-97-2548.

Attachment - Joint Petition for Review dated August 21, 1997

Counsel: For Arrow Air, Allan Markham, 202 337 2149 | Federal Express, Shaw Pittman, Nathaniel Breed, Jr., 202 663 8078 | For Federal Express, A. Doyle Cloud, Jr. | For Florida West, Squire Sanders, Marshall Sinick, 202 626 6651

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US Airways, Inc. (Exemption, Philadelphhia-London Gatwick)

OST-97-2857 | August 26, 1997

Application for Expedited Grant of Exemption Authority

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US Airways is applying to restore its U.S.-London authority and resume its Philadelphia-Gatwick service beginning in the 1998 summer traffic season. As soon as access to Heathrow Airport is available, US Airways will operate exclusively to that primary London airport from its major hubs in the Eastern United States.

Exhibit A – Proposed Route | Exhibit B – Annual Operating Statistics | Exhibit C – Schedule | Service List

Answers are due by September 10, 1997

Counsel: US Airways and Zuckert Scoutt, Richard Mathias, 202-298-8660

Preliminary Answer of City of Philadelphia, Division of Aviation

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On August 26, 1997, US Airways, Inc. ("US Airways") applied for an exemption authorizing it to engage in scheduled foreign air transportation of persons, property and mail between Philadelphia, Pennsylvania and London Gatwick, United Kingdom. US Airways proposes to operate double-daily service in the Philadelphia-London Gatwick market, commencing in March 1998. The City of Philadelphia, Division of Aviation ("Philadelphia") hereby files this preliminary answer in strong support of US Airways' application.

Counsel: Garland Karasch, Morris Garfinkle, 202 342 5200

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U.S.-Czech Third-Country Code-Share Opportunities / Northwest Airlines, Inc. / Delta Air Lines, Inc. and Swiss Air Transport Company, Ltd. / KLM Royal Dutch Airlines

Final Order

By this order, we make final our selection of Delta Air Lines, Northwest Airlines, and United Air Lines, to serve Prague, and we allocate seven weekly frequencies to Delta, and fourteen weekly frequencies to Northwest and United for these carriers to conduct their service under code-sharing arrangements with third-country carriers.

Experimental Certificate Route 744 for Delta Air Lines | Conditions

By: Patrick Murphy

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US-Egypt Third Country Codeshare Opportunities / Applications of Contiental Air Lines, Inc. and Delta Air Lines, Inc.

OST-97-2038 | OST-97-2822 | August 26, 1997

Consolidated Reply of Continental Airlines

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With only one designation available, the Department must, as Delta correctly suggests, give comparative consideration to both pending applications. Doing so is consistent with well-settled practice and will promote the public interest in expanding competition in the U.S.-Egypt market and among global alliances. Delta does not deny that Continental proposes more third-country service to/from Egypt than Delta does and that all of Continental's transatlantic service will be operated by Continental, while most of Delta's transatlantic service will be operated by Swissair. Another round of U.S.-France bilateral talks is scheduled for mid-October 1997. To the extent the Department is concerned that negotiation of a U.S.-France bilateral agreement will delay use of the code-share opportunity, moreover, the Department could award Delta a temporary designation on a short-term basis pending completion of negotiations with France and approval of the Continental Air France code-share arrangement.

American's opposition is clearly a red herring. The true beneficiary of a U.S.-Egypt code-share designation is Continental, since Air France already provides its own direct Egypt services. Continental will gain the right to sell U.S.-Egypt through services, and Continental will be operating the transatlantic flights involved. Moreover, as American knows, the French bilateral proposal provides for third-country codesharing by carriers of both sides, and Continental's application is contingent on successful negotiation of a new U.S.-France bilateral agreement.

Counsel: Crowell Moring, Lorraine Halloway, 202 624 2500

Reply of Delta Air Lines

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Continental as much as concedes that it would offer inferior service and competitive benefits than Delta. With nothing else to rely on, Continental tries to advance the novel argument that because it is not a major alliance carrier and offers only limited transatlantic service, it should receive priority for an award. This false logic would deny consumers the benefit of new alliance competition between the U.S. and Egypt as well as the substantially greater service options to be offered by Delta. Once a bilateral is in place that would support such services, Continental remains free to grow its transatlantic alliance aspirations with Air France or other transatlantic operators.

Counsel: Shaw Pittman, Robert Cohn, 202 663 8060

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U.S.-Poland Third-Country Codeshare Opportunities / Northwest Airlines, Inc.

OST-96-1592 | August 26, 1997

Renewal of Frequency Allocation

Renewal of Northwest's allocation of the 7 frequencies is consistent with the public interest as well as with the U.S.-Poland Air Services Agreement. Northwest has used continuously these frequencies for daily roundtrip code-share service between points in the United States and Warsaw, Poland, via Amsterdam, the Netherlands . These services are operated as an integral part of Northwest's alliance with KLM, providing substantial benefits to travelers and shippers. The Department specifically recognized these substantial benefits in Order 96-8-34, wherein the Department made its original award to Northwest of the frequencies for which renewal herein is sought. See also Order 97-2-16 (allocating 7 additional U.S.-Poland third-country codeshare frequencies to Northwest effective November 1, 1997).

Northwest plans to commence operation with KLM of up to 7 additional frequencies between the U.S. and Warsaw via Amsterdam on November 1, 1997, in accordance with the terms of the U.S.-Poland bilateral.

Counsel: Megan Poldy, 202 842 3193

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