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OST-00-7628

U.S.-France Combination Service Frequency Allocation; United Air Lines, Inc.; Tower Air, Inc. Delta Air Lines, Inc., and American Airlines, Inc

By this order, we institute a proceeding for allocation of 15 weekly frequencies for combination services in the U.S.-France market (eight frequencies are available immediately, and seven frequencies are available April 2001). We also dismiss the request of Tower Air, Inc. (Tower), for a waiver of the dormancy condition with respect to its eight weekly frequencies for U.S.-France combination services.

Tower has confirmed on the record of this case that it ceased operating its U.S.-France services on February 18, 2000, and at no time since resumed that service. Under the 90day dormancy condition applicable to its frequency allocation, these frequencies became dormant and automatically reverted to the Department on May 18, 2000. As Tower's request for waiver was filed after the 901h day of dormancy, Tower's request for a waiver cannot be considered retroactively. 18 We are unpersuaded by Tower's arguments that, because it operated service on an irregular basis, the dormancy period should apply with respect to each frequency based on the historic pattern of its service. The dormancy conditions are imposed to ensure that valuable route rights become available promptly if the carrier authorized ceases to use them for a period of 90 days. Although, the Department was prepared to accept Tower's irregular pattern of service in the U.S.-France market while the carrier actively served the market, that flexibility in no way relieved Tower of the applicable dormancy conditions once the carrier ceased all of its airline services in the market. 19 To apply the dormancy condition otherwise would be contrary to the purpose and intent of the condition. We, therefore, will dismiss, as moot, Tower's request for a dormancy waiver in this matter. As discussed below, we are instituting in this order a proceeding to allocate the seven April 2001 frequencies as well as the eight frequencies previously allocated to Tower. Tower, or its successor, will be free to compete for reallocation of the frequencies in the instituted proceeding, should it be in a position to do so.

By:  Bradley Mims

U.S.- France Frequency Allocation Proceeding; United Air Lines, Inc.

American will operate its proposed San Jose-Paris and Chicago-Paris services with B767-323ER aircraft from its existing fleet. These aircraft are operated on American's international and domestic routes, and comply with FAR 36. As of April 1, 2001, American will have 49 13767-323ER aircraft in its fleet.

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

United has proposed to use B767-300 aircraft to operate its daily New York JFK-Pan's CDG nonstop services. United has allocated an aircraft from its current fleet for this service. United has obtained slots through IATA procedures at CDG to meet its proposed startup date. Under those procedures, United has already received sufficient arrival and departure slots to operate its proposed daily services. United has also taken the steps necessary to obtain the slots at JFK needed to perform the proposed operations at that airport consistent with FAA's international slot allocation procedures.

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

U.S.- France Frequency Allocation Proceeding; United Air Lines, Inc.

Counsel:  Shaw Pittman, Robert Cohn, 202.663.8312

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

Counsel:  United and Wilmer Cutler, Jeffrey Manley, 202-663-6670, jmanley@wilmer.com 

U.S.-France Frequency Allocation Proceeding

Counsel:  Delta and Shaw Pittman, Robert Cohn

Counsel:  Chicago and Winthrop Stimson, Kenneth Quinn

U.S.-France Frequency Allocation Proceeding / Delta Air Lines, Inc. / American Airlines, Inc. / United Air Lines, Inc.

Order 2000-7-28 grants the Motion of Delta Air Lines, Inc., to amend its application in the above-captioned proceeding; and deny the motions of American Airlines, Inc. and United Air Lines, Inc. to strike or dismiss the amended application. We also confirm our oral action of July 21, 2000, extending the period for filing answers to the applications in this proceeding until July 31 and for filing replies to answers until August 3.

By:  Bradley Mims

U.S.-France Frequency Allocation Proceeding

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

Counsel:  Chicago and Winthrop Stimson, Kenneth Quinn, 202-775-9898

Counsel:  Delta and Shaw Pittman, Robert Cohn

Counsel:  Shaw Pittman, Nathaniel Breed, 202-663-8078

Counsel:  Myers Alterman, Theodore Seamon, 202.466.8270

Counsel:  Port Authority, Bradley Rubinstein, 212.435.3623

Counsel:  United and Wilmer Cutler, Jeffrey Manley, 202-663-6670

U.S.-France Frequency Allocation Proceeding

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

Counsel:  Chicago and Winthrop Stimson, Kenneth Quinn, 202-775-9898, quinnk@winstim.com 

Counsel:  Shaw Pittman, Alexander Van der Bellen, 202.663.8060

Counsel:  Shaw Pittman, Alexander Van der Bellen, 202.663.8060

Counsel:  Shaw Pittman, Nathaniel Breed, 202-663-8078

Counsel:  Myers Alterman, Theodore Seamon, 202.466.8270

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

U.S.- France Frequency Allocation Proceeding

American argues that United's analysis of Chicago-Paris seasonality be "disregarded because it is replete with errors and is inadequately sourced." In fact, there are no material errors in United's analysis and it used the same source for traffic data from CRS bookings as did American.

The only "error" cited by American is a minor mathematical miscalculation in the average monthly bookings for the Atlanta-Paris market in Exhibit UA- 100. The correct monthly average for that market should be 10,606 rather than 10,320, a difference of less than three percent. This difference is immaterial and, contrary to American's suggestions, changes none of United's conclusions. For the sake of accuracy, United has revised its exhibits to correct this calculation.

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

U.S.- France Frequency Allocation Proceeding; United Air Lines, Inc.

United Air Lines, Inc. ("United') hereby submits this motion to withdraw its pending application for an allocation of U.S.-France frequencies in Docket OST-00-7628. United, however, continues to request that the Department grant it a designation and exemption authority to serve the New York-Paris market.

Although United remains fully committed to the introduction of nonstop service between New York and Paris at the earliest possible date, United has determined that, in order to ensure the reliability of its existing domestic and international scheduled services and to fulfill its commitments to passengers relative to those schedules, it is necessary for United to reduce its system-wide scheduled block hours of aircraft operations. This will facilitate United's efforts to maintain a reserve of equipment available on a stand-by basis in the event that any of its aircraft are rendered unavailable to provide scheduled services for any reason.

Counsel:  Wilmer Cutler, Bruce Rabinovitz, 202.663.6670, brabinovitz@wilmer.com 

U.S.- France Frequency Allocation Proceeding

By:  Paul Gretch

U.S.-France Frequency Allocation Proceeding

Counsel:  American, Carl Nelson, 202.496.5647, carl_nelson@aa.com, and Shaw Pittman, Robert Cohn, 202.663.8060

U.S.- France Frequency Allocation Proceeding

American Airlines, Inc. (American), Delta Air Lines, Inc. (Delta), and United Air Lines, Inc. (United), filed applications for the subject authority. American sought 14 weekly frequencies to operate a daily flight between San Jose, California, and Paris, France; and to add a second-daily flight between Chicago, Illinois, and Paris, France. Delta sought 14 weekly frequencies to expand its services in both the Atlanta-Paris and New York-Paris markets. United sought seven weekly frequencies for services in the New York-Paris market, including the necessary underlying exemption authority to provide services on the route. In addition, United sought one of the five designations available for U.S. carrier services in the New York-Paris market.

By:  Paul Gretch

United Air Lines, Inc.

By this application, United seeks to renew each of the above-detailed exemption authorities for a minimum period of two years or until the Department grants United's corresponding applications for a certificate of public convenience and necessity, as amended, currently pending in Dockets OST-95-625, OST-98-3853 and OST-99­6385. United also requests that the Department give each of the above-detailed exemption authorities a common expiration date so there will not be a need for multiple renewals.  In the case of United's exemption in Docket OST-99-5097 to serve Windhoek, Namibia, via points in Germany, United requests an amendment to include the right to operate via any intermediate points in third countries which United is authorized to serve. Such an amendment would give United additional flexibility to serve Windhoek consistent with its broad exemptions in other markets.

Counsel:  Wilmer Culter, Jeffrey Manley, 202.663.6670, jmanley@wilmer.com

United Air Lines, Inc.

United wishes to clarify its renewal request with respect to Dockets OST­99-5097 (U.S.-Namibia) and OST-99-6720 (U.S.-Accra, Ghana, and U.S.-Lagos, Nigeria). United seeks renewal and amendment of the authority to operate these services pursuant to authorized code-share arrangements with any of its foreign code-share partners, not just Lufthansa. In Notice of Action Taken dated July 13, 2000 (Docket OST-99-6720) and Notice of Action Taken dated February 7, 2001 (Docket OST-99­5097), exemption authority was granted to perform the above services. Both notices state that United intends to operate or will operate this service under a code-share arrangement with Lufthansa. United believed that this wording describing its initial plans for providing these services was merely illustrative and did not restrict United's ability to code share with any of its foreign partners. United wishes to clarify for the record its intention in the renewal and amendment application dated January 23, 2002, to seek the flexibility to offer services to these points in conjunction with any of its authorized code­share partners.

In addition, United also wishes to clarify that it seeks authority to integrate its U.S.-Lagos/Accra exemption authority in Docket OST-99-6720 with other outstanding certificate and exemption authority. The Notice dated July 13, 2000 in that docket refers to route integration authority "by virtue of either the present action or other action of the Department." Because that Notice itself contained no specific route integration authority, United urges that the U.S.-Lagos/Accra authority, as renewed, specifically contain the Department's standard route integration provision applicable to exemption authority.

Counsel:  United and Wilmer Cutler, Jeffrey Manley, 202-663-6670, jmanley@wilmer.com

United Air Lines, Inc.

Renew for two years exemptions to provide the following services: Docket OST-98-3732: Scheduled foreign air transportation of persons, property, and mail between any point or points in the United States and any point or points in France (excluding New York-Paris), directly and via intermediate points, and beyond France to any point or points in third countries, and to integrate this authority with United’s existing certificate and exemption authority. Docket OST-2000-7628: Scheduled foreign air transportation of persons, property, and mail between New York, New York, and Paris, France.

By:  Linda Lundell

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