OST-95-926 - Delta Air Lines, Inc. - Exemption Renewal, US-London, Property & Mail

OST-95-926

Delta Air Lines, Inc. (Exemption Renewal, US-London, Property & Mail)

OST-95-926 | December 16, 1997

Application for Renewal of Exemption Authority

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Delta was initially granted its U.S.-London exemption authority in conjunction with its code-share arrangement with Virgin Atlantic Airways Limited ("Virgin Atlantic"), whereby Virgin Atlantic listed Delta's "DL" designator code on U.S.-London flights operated by Virgin Atlantic. By mutual agreement, Delta and Virgin Atlantic have determined to cease code-sharing on passenger and general cargo operations, and Delta is not herein seeking renewal of that code-sharing authority. However, Delta is in the process of establishing a limited code-share agreement that would allow Delta to continue to offer scheduled foreign air transportation of mail only on certain U.S.-London routes. The public interest would be well served by the continuation of Delta's exemption authority granted by Order 96-2-54, to the extent that it applies to the transportation of mail, since such renewal will enable Delta to continue services to the United States Postal Service on U.S.-London routes.

Service List

Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060

Delta Air Lines, Inc. (Exemption, US-London, Property and Mail)

OST-95-926 | December 23, 1997

Answer of Northwest Airlines

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Northwest questions how, in these circumstances, the Department could make the public interest findings necessary to support affirmative regulatory action. The U.S.-U.K. air transport regime is not yet open skies, and the Department's response to a particular application therefore can have a significant impact on the overall competitive landscape. For instance, Northwest and other U.S. airlines have expressed their strong desires for access to London's Heathrow Airport but, to date, have been unsuccessful in obtaining access. Grant of the application in question would confer Heathrow authority on Delta while Northwest and others remain waiting.

Counsel: Northwest, Megan Rae Poldy, 202-842-3193

Delta Air Lines, Inc. (US-London)

OST-95-926 | December 31, 1997

Answer of Continental Airlines to Delta Airlines' Renewal Application

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Delta has filed an unprecedented application seeking to renew exemption authority it secured solely for purposes of code-sharing with Virgin Atlantic despite the fact that its code-sharing relationship with Virgin Atlantic has been terminated and replaced by Continental's code-sharing relationship with Virgin Atlantic. Although Delta requires a code-share partner to utilize the authority for which it seeks renewal, Delta admits it has no such partner but claims to be "in the process of establishing a limited code-share agreement that would allow Delta to continue to offer scheduled foreign air transportation of mail only on certain U.S.-London routes.

Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2500

Answer of Trans World Airlines

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With respect to one of Delta's code share points -- Los Angeles -- TWA will soon file a an application for exemption authority and approval of a code share agreement that will provide superior service to Delta's mail-only proposal. On December 18, 1997, TWA signed a cargo code share agreement with Air New Zealand which includes, inter alia, service between Los Angeles and London Heathrow. Air New Zealand currently operates five weekly frequencies in that market and will increase to daily service during the peak season. The necessary applications will be filed within the next two weeks. TWA's proposal is clearly superior to Delta's because it includes both cargo and mail. Unless the United Kingdom indicates that it will accept both the TWA and Delta code shares, the Department must grant TWA contemporaneous consideration with Delta under the Ashbacker doctrine.

Counsel: TWA and Richard Fahy, 202-457-4764

Delta Air Lines, Inc. (Exemption Renewal, US-London, Property and Mail)

OST-95-926 | January 14, 1998

Withdrawal of Renewal Application

Hereby withdraws its application for renewal of US-London exemption authority to engage in mail-only code-share service.

Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060

American Airlines, Inc., Carnival Air Lines, Inc., China Airlines, Ltd., Delta Air Lines, Inc., Eva Airways Corporation, Federal Express corporation, Gemini Air Cargo LLC, Northwest Airlines, Inc., Tower Air, Inc., Trans World Airlines, Inc., and United Air Lines, Inc. (certificates, exemptions or other authorities or relief)

Order 98-08-27 | OST-97-2891 | OST-96-1424 | OST-96-1425 | OST-95-426 | OST-95-926 | OST-95-727 | OST-98-3856 | OST-95-704 | OST-96-1089 | OST-97-3152 | 48074 | OST-96-1475 | OST-96-1717 | OST-98-3732 | Issued August 21, 1998 | Served August 27, 1998

Order Dismissing Applications

By: Paul Gretch