OST-95-765
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OST-95-765
OST-95-765 | OST-97-2693 | July 9, 1997
Northwest asks that the Department open-up an additional gateway opportunity for Minneapolis/St. Paul by switching Seattle from multiple to single designation, pursuant to the terms of the 1995 MOU. The Port of Seattle has authorized Northwest to state herein that Seattle does not intend to object to this request. Finally, Northwest asks that the Department grant this application expeditiously so that Northwest may engage in necessary advance sales and marketing activities for its exciting new Minneapolis/St. Paul-Hong Kong nonstop service.
Tomorrow, Northwest formally will announce that it intends to suspend its Seattle-Hong Kong service effective September 8, 1997. Northwest inaugurated Seattle-Hong Kong service in November 1994, and currently operates three weekly flights. Despite Northwest's best efforts, the passenger demand and loads on Northwest's Seattle-Hong Kong flights have not been sufficient for Northwest to maintain that service. There is no question that Seattle will remain an important international gateway. Indeed, Seattle is among a select number of U.S. cities that have daily nonstop service to the two largest markets in Japan.
Exhibit NW-100 – Map | NW-101 – Pacific Services Effective October 1, 1997 | NW-102 – Fuel Burn | Service List
Answers are due by July 24, 1997 – Intends to Poll
Counsel: Northwest, Megan Rae Poldy, 202-842-3193
New US-Hong Kong Gateway / Northwest Airlines, Inc.
OST-95-765 and OST-97-2693 | Served July 10, 1997
By this Notice we shorten the period for filing answers to Northwest’s application to noon, Monday July 14, 1997, and establish 3:00 pm, Tuesday, July 15, 1997, as the date for receipt of any replies to any answers filed.
By: Paul Gretch
New U.S.-Hong Kong Combination Service Opportunities / Northwest Airlines, Inc. (Selection of a New Gateway, Minneapolis/St. Paul-Hong Kong)
OST-95-765 | OST-97-2693 | July 14, 1997
Northwest's anticompetitive objective is clear. Northwest knows that when the new generation of extended range aircraft, such as the B777-200X, come into service in three years, competitors will for the first time be able to operate economically nonstop service to Hong Kong from interior U.S. points, such as Dallas/Ft. Worth. By its application, Northwest is seeking to block future competitive entry by seizing the last available new gateway opportunity under the U.S.-Hong Kong MOU.
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
Northwest's application conveniently ignores its idle Detroit authority, which was awarded last year over Delta's objection. In that proceeding, Delta urged the Department not to grant Northwest's highly speculative proposal to provide Detroit-Hong Kong service at some future date over an unproved routing. Answer of Delta, Docket OST-95-765. As Delta predicted, Northwest has failed to implement that service. Delta cautioned that "Northwest should not be permitted to stockpile for two years (or perhaps more) unused limited entry rights and by doing so preclude operation of competitive services by Delta or others to Hong Kong."
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
Answer of
the Minneapolis-St. Paul Metropolitan Airports Commission in Support
Northwest's application presents the DOT with an excellent opportunity to remedy the inefficient allocation of U.S.-Hong Kong gateway authority. By switching Seattle from a multiple-designation gateway to a single designation gateway and by designating Minneapolis/St. Paul as the seventh United States gateway, DOT would promote the use of limited, but currently underutilized, gateway authority. Northwest's proposed services would provide significant economic and cultural benefits to the Minneapolis-St. Paul area and, through the connecting services available at the MSP hub, to much of the United States. And this gain would not come at others' expense. Because the proposed services will provide so many benefits, DOT should make every effort to enable Northwest to begin operating the services as soon as possible.
Attachment – Letters in Support
By: Metropolitan Airports Commission and Spiegel McDiarmid, John Corbett, 202-879-4000
Northwest proposes to gain another exclusive U.S. carrier designation at Minneapolis by downgrading Seattle from a multiple to a single-carrier designation gateway. Northwest states that Seattle has no objection to that request. There is no explanation of why Seattle is prepared to accept this action, although in 1995 Seattle opposed any action that would have converted it from multiple to a single-carrier designation status. United has no objection to the designation of Northwest to serve Minneapolis as a U.S. gateway but does object to the conversion of Seattle to single-designation status as the means to achieve that. According to advance OAG schedules, Northwest does not, in fact, intend to start the Detroit-Hong Kong service in November 1997 that it proposed in the 1995 proceeding that led to Detroit's being named as a U.S. gateway.
Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130
New U.S.-Hong Kong Combination Service Opportunities / Northwest Airlines, Inc.
OST-95-765 | OST-97-2693 | July 15, 1997
Reply of
the Minneapolis-St. Paul Metropolitan Airports Commission in Support
In short, DOT's paramount interest should be to enable the institution of new U.S.-Hong Kong service. Northwest and Seattle (whose gateway authority will shortly become unused and which has not opposed Northwest's application) have provided DOT with a golden opportunity. Northwest's proposal offers substantial benefits to the Minneapolis-St. Paul area, the Upper Midwest and, indeed, much of the United States, without any real costs to anyone.
Attachment – Letters in Support
Counsel: Metropolitan Airport Commission and Speigel McDiarmid, Jon Corbett, 202-879-4000
Consolidated
Reply of Northwest Airlines
Northwest remains interested in serving Detroit-Hong Kong. Unfortunately, securing a feasible air navigation routing and/or production of new generation aircraft is taking longer than Northwest anticipated. Despite this setback, Northwest's intentions with respect to Detroit-Hong Kong service have not changed. The city of Detroit and the State of Michigan should not be penalized just because Northwest is able to implement Minneapolis/St. Paul-Hong Kong authority now. Indeed, it would violate the due process rights of Northwest and Detroit for the Department to reverse its decision with respect to Detroit's designation when the facts are substantially the same today as they were when the Department selected Detroit just one year ago.
Counsel: Northwest, Megan Rae Poldy, 202-842-3193
The Wayne County parties strongly object to the opposing parties' suggestion that the gateway authority needed for the new service be taken from Detroit. Detroit strongly desires Hong Kong service, which would significantly strengthen its commercial and other ties to southern China and Southeast Asia, and Northwest intends to provide the service as soon as that is technically feasible. Removing Detroit's gateway designation would make that impossible. In sum, the only issue here is whether to obtain authority for MSP-Hong Kong service by withdrawing a designation for which there is a concrete proposal (Detroit), or one for which there is not only no concrete proposal but no likelihood of any in the foreseeable future (the second designation at Seattle). Clearly it makes much more sense to withdraw the Seattle authority.
Counsel: Kurth & Co., Samuel Keiter, 202-342-1691
New U.S.-Hong Kong Combination Air Service Opportunities / Northwest Airlines, Inc. (New Gateway of Minneapolis-St. Paul)
Order 97-7-25 | OST-95-765 | OST-97-2693 | Issued and Served July 24, 1997
Order
Authorizing Hong Kong Services
By this order we select Minneapolis/St. Paul, Minnesota, as a new gateway for U.S.-Hong Kong services. To enable us to implement the new gateway selection, we will also withdraw the existing designation of Detroit as single-designation gateway. We will forward these recommendations to the Department of State for implementation.
By: Charles Hunnicutt
US-Hong Kong Service Opportunities / Northwest Airlines, Inc. (New Gateway, Minneapolis-St. Paul)
OST-97-2693 | OST-95-765 | July 23, 1997
Letters in
Support from City of South St. Paul, State of Minnesota, Minnesota World Trade
Corporation, Bismarck Municipal Airport, Minnesota Trade & Economic Development
New U.S.-Hong Kong Combination Service Opportunities
OST-95-765 | December 8, 1997
Application of United Air Lines for Renewal of
Frequency Allocation
United has created valuable public benefits through the use of these frequencies for nonstop Chicago-Hong Kong service. United operates its major worldwide system hub at Chicago with over 400 daily departures, serving 94 points (including nine foreign destinations). United Express operates 114 flights, serving 30 points from Chicago. Having Hong Kong as a nonstop destination has improved service to the local passenger by reducing his flying time by at least three hours and by eliminating a stop at another U.S. or overseas point. These nonstop flights have also improved service to Hong Kong for passengers from those cities on United's system who now have nonstop to nonstop connections for the first time.
Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130
U.S.-Hong Kong Combination Air Service Opportunities / United Air Lines, Inc.
OST-95-765 | January 12, 1998
Supplement
to Application of United Air Lines for Renewal of Frequency Allocation
In its December 8, 1997, renewal application United indicated that under its then current plans, it would be using its allocation of Chicago-Hong Kong frequencies to operate three flights per week on a seasonal basis between June and October 1998. United has now finalized its plans for future Chicago-Hong Kong services. Effective June 10, 1998, United will operate a daily service between Chicago and Hong Kong and will continue services at that level throughout the year.
Renewal of the seven (7) frequencies presently allocated to United as requested in its December 8, 1997, application will be sufficient to support the Chicago-Hong Kong services United plans to operate. United will advise the Department's staff if there are any changes in its level or seasonality of nonstop services in the Chicago-Hong Kong market after June 10, 1998.
Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130
United Air Lines, Inc. - (Renew Notice of Action Taken)
OST-95-765 | Filed December 8, 1997 and Supplemented January 12, 1998 | Action Taken January 23, 1998
United requests the renewal to extend for a period of two years from its current expiration date of February 14, 1998, or until January 1, 2000, when the bilaterally agreed limit on Chicago-Hong Kong frequencies expires. It originally stated that it planned to continue to use the frequency allocation on a seasonal basis from June through October. United subsequently supplemented its application to indicate that the carrier's plans had changed, and that effective June 10, 1998, United will operate a daily service between Chicago and Hong Kong and will continue that level of services throughout the year.
Applicant rep.: Joel Stephen Burton 202.637.9130
Order 98-3-1 | Issued March 2, 1998 | Served March 6, 1998
By: Paul Gretch
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