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OST-00-7085

United Air Lines, Inc.

United requests one of these bilaterally-agreed third-country code-share opportunities and 14 weekly frequencies to offer code-share service between the U.S. and Vietnam via Bangkok in conjunction with Thai.

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

United Air Lines, Inc.

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

United Air Lines, Inc.

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

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. / 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

United Air Lines, Inc.

Pursuant to the Department's notice dated April 5, 2000, in Docket OST 00-7194 United Air Lines,, Inc., supplements its above-captioned application as follows:  The seating configuration of Thai Airways' aircraft used for service to/from Vietnam is: A300-600 46 Business Class, 201 Economy Class / B737-40012 Business Class, 137 Economy Class

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

Thai Airways International Public Company Limited/U.S.-Vietnam Third Country Code Sharing Opportunities/United Air Lines, Inc.

Counsel:  Wilmer Cutler, Cathleen Peterson, 202.663.6000, cpeterson@wilmer.com

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