OST-00-6724 - Northwest Airlines - Minneapolis, Minnesota- London/Heathrow and Detroit, Michigan- London/Heathrow

OST-00-6724

Northwest Airlines, Inc.

OST-00-6724	January 4, 2000	Application for Designation HTML	Minneapolis, Minnesota- London/Heathrow and Detroit, Michigan- London/Heathrow
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Hereby requests designation, or such other authority as may be deemed necessary, to enable Northwest to launch nonstop service to London's Heathrow Airport from Northwest's Detroit, Michigan and Minneapolis/St. Paul, Minnesota hubs. Northwest recognizes that under the highly restrictive U.S.-U.K. bilateral status quo, only two U.S. carriers may be designated to operate to Heathrow Airport, and currently those airlines are United Airlines and American Airlines. A new round of U.S.-U.K. bilateral consultations is scheduled to begin in Washington, D.C. this morning, however, and it is Northwest's understanding that the two governments will consider entering into a limited new accord. Northwest urges the Department to ensure that any incremental accord with the U.K.

It remains Northwest's considered opinion that overall U.S. objectives would best be served by U.S. negotiators holding steadfast in their demand for open skies with the U.K., and refusing to engage in incremental negotiations. In the event U.S. negotiators reach a different conclusion, Northwest asks, at a minimum, that the Heathrow entitlements of the cities of Detroit and Minneapolis/St. Paul be addressed in any incremental agreement address the unsatisfied Heathrow entitlements of the cities of Detroit and Minneapolis/St. Paul; and that the Department promptly award Northwest whatever new authority it deems necessary to enable Northwest to implement nonstop Detroit-Heathrow and Minneapolis/St. Paul Heathrow service at the earliest possible opportunity.

Counsel: Northwest, Megan Rae Rosia, 202.842.3193

Northwest Airlines, Inc.

OST-00-6724	January 13, 2000	Answer of Delta Air Lines	Minneapolis, Minnesota- London/Heathrow and Detroit, Michigan- London/Heathrow
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The most recent round of U.S.-U.K. negotiations ended last week without reaching an agreement that would permit any new U.S. carrier services to operate at Heathrow. Accordingly, there is no bilateral basis to support Northwest's request. If and when additional opportunities become available for U.S. carriers to serve Heathrow, Delta will submit an application for Heathrow services. To the extent such Heathrow opportunities are limited, the Delta and Northwest requests would be mutually exclusive. Northwest's tiling here gives it no precedence in any comparative selection proceedings. The Department's long-term goal with respect to U.S.-U.K. bilateral negotiations has been the achievement of a comprehensive open skies agreement that accommodates the Heathrow service objectives of all U.S. carriers. Delta supports this long term objective. However, should the Department conclude a more limited agreement in the near term, there is no basis to support Northwest's claim of special "Heathrow entitlements" for Detroit and Minneapolis/St. Paul (Northwest application, p. 1, fn. 2). The Department would need to consider the needs and merits of all competing carrier/gateway proposals, and, should such opportunities actually arise, Delta will demonstrate the superiority of its Heathrow proposal.

Counsel: Shaw Pittman, Alexander Cohn, 202.663.8060

OST-00-6724	January 13, 2000	Answer of United Airlines	Minneapolis, Minnesota- London/Heathrow and Detroit, Michigan- London/Heathrow
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Northwest itself has stated that it believes that the "U.S. Government must maintain its focus on obtaining a comprehensive, fully-liberalized agreement" rather than "pursuing piecemeal openings of the U. S.-U.K. market." Answer of Northwest, Docket OST-99-5725. United agrees and reiterates its consistent support for the efforts of the U. S. Government to negotiate a comprehensive, open skies bilateral with the United Kingdom.

Counsel: Kirkland Ellis, Jeffery Manley, 202.879.5161, jeffery_manley@kirkland.com