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OST-00-7078

Delta Air Lines, Inc.

On March 3, 2000, the United States and Vietnam signed a Memorandum of Discussions stating that the two sides’ respective aeronautical authorities would permit carriers of each country to engage in bilateral and third-country U.S.-Vietnam codeshare services. The MOD provides, inter alia, that up to three U.S. carriers may offer service between the United States and up to three points in Vietnam, via any intermediate points, through codeshare arrangements with carriers of third countries, operating a combined maximum of 21 weekly roundtrip frequencies. Delta hereby applies for one of the three available third-country codeshare designations for service to Vietnam and an allocation of seven weekly U.S.-Vietnam frequencies. Delta requests that the United States select Ho Chi Minh City and Hanoi as two of the three Vietnamese points that U.S. carriers may serve on a third-country codeshare basis, and hereby applies for an exemption authorizing it to provide service between the United States and these points. Delta initially proposes to use such authority to operate U.S.-Vietnam services in conjunction with its alliance partner, Societé Air France. Specifically, Delta will display its "DL" designator code on flights operate by Air France between (a) Paris  and Ho Chi Minh City, via Singapore (four weekly roundtrip flights), and (b) Paris and Hanoi, via Bangkok, Thailand (three weekly roundtrip flights). Delta proposes to commence these services promptly following the Department’s grant of the requested authority.

Air France operates, on alternating days, one stop service between Paris and Ho Chi Minh City using Boeing 777 aircraft (four days per week), and one stop service between Paris and Hanoi using Boeing 747-400 aircraft (three days per week). As a result of the approval of this application, Delta’s passengers and cargo traffic moving between the United States and Paris would be able to make convenient online connections to the daily U.S.-Vietnam services operated by Air France.

Counsel:  Shaw Pittman, Robert Cohn, 202.663.8060, robert.cohn@shawpittman.com

Delta Air Lines, Inc.

Counsel:  Shaw Pittman, Robert Cohn, 202.663.8000

Delta Air Lines, Inc. / United Air Lines, Inc.

Northwest plans to apply for one of the three available U.S. carrier designations and an allotment of six frequencies. Northwest has long held an interest of serving the U.S.-Vietnam market.  Northwest would utilize one of the newly available third-country Vietnam service opportunities on a codeshare basis under its Commercial Cooperation Agreement with Malaysia Airlines ("MAS"). See Docket OST-2000-6792. Under the arrangement, MAS would carry Northwest's designator code on flights operated by MAS between Hanoi and Ho Chi Minh City, on the one hand, and Kuala Lumpur, on the other, connecting with Northwest service from Detroit and MAS service from Los Angeles. Northwest anticipates filing an application for a designation, an allotment of six roundtrip weekly frequencies and exemption authority within the next few days following further coordination with MAS.

The Delta and United applications account for all 21 of the frequencies made available under the MOD. Hence, as soon as Northwest (or any other U.S. carrier) applies for the third available designation and any number of frequencies, the combined applications will have requested more frequencies than are currently available under the MOD. Under the Ashbacker Doctrine, the Department is required to give contemporaneous consideration to such mutually exclusive applications.

Counsel:  Northwest, Meghan Rae Rosia, 202.842.3193

Delta Air Lines, Inc.

The Department should not countenance an indefinite delay of U.S. carrier code sharing to Vietnam manufactured by Northwest for its own purposes. The final date for answering the pending applications is April 5, 2000, based on the additional service of their applications made by United and Delta on March 21, 2000. The Department should direct Northwest to file any application it may wish to present for Vietnam third-country code-share authority no later than April 5, 2000. If no such application is filed by that deadline, the Department should immediately thereafter grant in full the uncontested applications of United and Delta.

Counsel:  Wilmer Cutler, Jeffery Manley, 202.663.6670, jmanley@wilmer.com

Delta Air Lines, Inc. / United Air Lines, Inc.

Under the Memorandum of Discussions of March 3, 2000 between the Governments of the United States and Vietnam, up to three U.S. carriers may offer service between the U.S. and Vietnam, via intermediate points, through codesharing arrangements with third-country carriers. There is a limit of 21 weekly codesharing frequencies. Delta has requested one designation and seven weekly frequencies to engage in codesharing services to Vietnam with Air France via Paris, and United has requested one designation and 14 weekly frequencies to engage in such services with Thai Airways International via Bangkok. In addition, on March 27, 2000, Northwest Airlines, Inc. submitted a consolidated answer in the captioned dockets indicating an interest in codesharing to Vietnam with Malaysia Airlines via Kuala Lumpur.

The Delta, United, and American applications are seeking in excess of the 21 frequencies available under the MOD. Counting the prospective application by Northwest, these four requests are also in excess of the three available designations. Under Ashbacker Radio Corp. v. FCC, 326 U.S. 327 (194S), the Department is required to give contemporaneous consideration to such mutually exclusive applications. The Department should grant American's application. By codesharing with Swissair via Zurich, American will achieve its first on-line access to the U.S.-Vietnam market, and will provide important competitive benefits to passengers and shippers. American opposes the applications of Delta and United (and prospectively of Northwest) to the extent that they would preclude the proposed codesharing service by American and Swissair, via Zurich, between the U.S. and Vietnam

Counsel:  Carl Nelson, Jr., 202 496 5647, carl_nelson@amrcorp.com

U.S.-Vietnam Third Country Code Sharing Opportunities

On March 3, 2000, the United States and Vietnam signed a Memorandum of Discussions (MOD) that states the intent of the respective aeronautical authorities to allow, inter alia, third-country code-sharing of passenger air transportation services in the U.S.-Vietnam market (via intermediate points) on the basis of comity and reciprocity. Specifically, the MOD provides that up to three cooperative marketing arrangements between any number of U.S. airlines and any number of third-country airlines may be authorized.' The U.S. third-country code-share arrangements may serve between any points in the United States, on the one hand, and up to three Vietnamese points selected by the United States (via any intermediate points) on the other hand.' The MOD provides for a total of 21 weekly round-trip frequencies for use by U.S. carriers to operate these services.

Two U.S. carriers -- United Air Lines and Delta Air Lines -- have filed applications with the Department to serve the U.S.-Vietnam market under code-sharing arrangements with Thai Airways International and Air France, respectively. It is our desire to enable. interested carriers to use these opportunities as soon as possible. Before we decide how to award the available opportunities, to ensure that we have applications from all interested carriers, we request that all other U.S. carriers interested in making use of the available third-country code-share opportunities file applications as specified below with the Department no later than April 10, 2000. Answers to applications should be filed no later than April 14, 2000. Replies to answers should be filed no later than April 18, 2000.

The MOD does not contemplate direct service between the United States and Vietnam.

By:  Paul Gretch

American and Northwest Applications from April 5th

U.S.-Vietnam Third Country Code Sharing Opportunities

Counsel:  American, Carl Nelson, 202.496.5647, carl_nelson@amrcorp.com

Counsel:  Shaw Pittman, Alexander Van der Bellen, 202.663.8060

Counsel:  Northwest, Megan Rae Rosia, 202.842.3193

Counsel:  Wilmer Cutler, Jeffery Manley, 202.663.6670, jmanley@wilmer.com 

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