OST-00-6788

Legend Airlines, Inc.

Legend has invested a significant amount of resources in anticipation of its start-up of passenger operations in February 2000. The initiation of Legend's operations has been delayed by an unprecedented assault on its proposed operations before the Department; and in state and federal courts. Despite federal law and clear Departmental rulings on its right to operate, Legend has had to counter those opposed to any level of competition in multiple forums. Legend has hired and trained the personnel necessary to operate, and has the requisite operational personnel and plans in place to begin its service. Further, in preparation for advertising and selling tickets, Legend has: (a) made arrangements to list and sell tickets through the Sabre, Galileo and Worldspan computer reservations systems; (b) staffed and initiated training of its reservations center; (c) retained an advertising agency; (d) contracted for web-site development and online ticketing capabilities; and (e) hired an in-house marketing staff, headed by Lisa Bauer, Senior Vice President of Sales, Marketing and Customer Service. Ms. Bauer was previously with Midwest Express Airlines. In light of the extraordinary efforts to stop Legend from operating, it is imperative that Legend be permitted to begin advance ticket sales for its initial flights and thereby increase the likelihood of success of its start-up service.

Counsel:  Ungaretti Harris, Edward Faberman, 202.639.7053

Legend Airlines, Inc.

By:  Randall Bennet

Legend Airlines, Inc.

Despite its protestations to the contrary, Legend has no way of knowing how-the Fifth Circuit will decide the petitions for review before it. Legend states that it will "advise each customer that Legend does not currently possess full authority to operate . . . until such time as it is issued by the Department." [Application, p. 4]. Legend does not, however, state that it will caution the buying public that it is the subject of a binding state court final judgment or that the Fifth Circuit may decide that its flights are unlawful. For these reasons, Fort Worth does not believe the Department should permit Legend to begin selling tickets. Although Legend states that an exemption is necessary to increase the likelihood of success for its start-up service, any harm that Legend sustains as a result of a delay in service is self-inflicted. Legend has known since the Final Judgment was entered on December 16, 1998 that it cannot commence its proposed service at Love Field. Yet, Legend has set a reckless course for itself in the face of two pending appeals. The Department should refrain from aiding Legend in its unlawful actions.

Counsel:  Kelley Hart, Dee Kelly

Legend Airlines, Inc.

Counsel:  Andrews Kurth, Alan Harris

Legend Airlines, Inc.

In view of Legend's acceptance of the consumer-protection conditions that we have prescribed, its demonstration of continuing fitness, and affirmation by the FAA of the carrier's satisfactory progress toward certification, we find that it is in the public interest to grant Legend's request for a waiver of the pre-operational sales prohibitions of section 201.5.

By:  Bradley Mims

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