Order970735 - Northwest Airlines, Inc. / United Air Lines, Inc.

OST Filings by Docket Number

Northwest Airlines, Inc. / United Air Lines, Inc. (Allocation of All-Cargo Frequencies)

Order 97-7-35 | OST-97-2145 | OST-97-2201 | Issued and Served July 30, 1997

Order to Show Cause

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By this order we tentatively award Northwest Airlines an allocation of two weekly frequencies to provide all-cargo scheduled service in the US-Philippines market for a period of one year from October 1, 1997.

While both Northwest and United have presented proposals that would benefit the public, we tentatively find that the selection of Northwest better serves our goal of promoting competition in the U. S.-Philippine all-cargo market. Northwest would be a new entrant to that market. Not only would it offer new competition to United, but also new competition to Federal Express, Polar, and UPS. United, on the other hand, already serves the market with three weekly frequencies. While the allocation of additional frequencies to United would enable it to increase that service, the selection of Northwest will make available to the public new price, service, and aircraft options, a benefit we believe is especially important as the Philippine market develops. In these circumstances, we tentatively conclude that the competitive benefits of a new all-cargo entrant outweigh the competitive benefits of increased operations by United.

By: Patrick Murphy