OST-1996-1672
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OST-1996-1672
U.S. – Russia Combination Service Frequency Allocation
June 4, 1997
Continental Air Lines, Inc. (Continental) does not object to the award of 4.5 Russia frequencies to Delta for code-sharing purposes so long as Continental's request for seven frequencies to operate its own daily Newark-Moscow service is also granted. For the reasons explained in Continental's reply in Docket OST-972493 (copy attached), if the Department must choose between Continental's request and Delta's, Continental's request should be granted and Delta's should be denied.
Counsel: Crowell Moring, Bruce Keiner, 202-628-2500
June 25, 1997
Allocation of additional 4.5 weekly combination frequencies for: U.S.-Russian Federation services to increase Delta's overall total combination frequencies to 23.S weekly frequencies. With the additional allocation, Delta stated that it would use the frequencies in the following manner: 7 weekly frequencies in the New York (JFK)-Moscow market using its own aircraft and the remaining 16.5 weekly frequencies in code-share arrangements with Austrian, Swissair, or Sabena. Those frequencies would be operated by Delta's code-share partners as follows: 3.5 weekly frequencies in the Vienna-Moscow market and 2 weekly frequencies in the Vienna-St. Petersburg market operated by Austrian; 5.5 weekly frequencies in the Zurich-Moscow market and 2 weekly frequencies in the Zurich-St. Petersburg market operated by Swissair; and 3.5 weekly frequencies in the Brussels-Moscow market operated by Sabena Delta stated that it intends to implement the code-share services as soon as possible on a year-round basis, but requested a waiver of the Department's standard 90-day dormancy provision with respect to its code-share services to the extent that such operations are not approved by the Russian government, consistent with the relief granted United in Order 96-10-1.
By: Paul Gretch / Counsel: Robert Cohn, 202-663-8060
Issued July 30, 1997 | Served August 5, 1997
September 18, 1997
Delta submits that good cause exists for the Department to waive the dormancy provisions contained in Orders 96-10-1 and 97-7-33 with respect to 9.25 weekly Russia frequencies. Delta plans to quickly implement its codeshare services for 3.5 frequencies under its code-share arrangement with Sabena, 5.5 frequencies under its code-share arrangement with Austrian upon receiving approval by the Russian government, and 0.25 frequency for use in conjunction with the 1.5 frequencies recently allocated to Delta to operate Moscow to Zurich service with Swissair. Delta is fully committed to utilize all of its frequencies and enhance its existing U.S.-Russia services with its code-share partners. For all of the reasons set forth herein, grant of the waiver to Delta is entirely justified.
Counsel: Delta and Shaw Pittman, Robert Cohn
September 24, 1997
Baltia respectfully suggests that Delta is not being unduly penalized. Prior to making the decision to exchange its actual flights to Russia for marketing agreements, Delta had full knowledge that Russia did not accept United's use of frequencies in connection with its marketing agreement with Lufthansa. Delta had full knowledge of, and approved of, the Department's dormancy policy. The Department should question whether frequencies obtained through the Agreement which are allocated to enable third country air carriers to transport passengers and freight between Russia and third countries, for which the Russian government is not providing approval, should be allocated indefinitely.
Counsel: International Business Law Firm, Steffanie Lewis, 703-522-1198
September 26, 1997
The essence of Baltia's answer is that cooperative marketing agreements do not provide "U.S.-Russia uplift" and therefore do not produce meaningful public benefits. Baltia's indictment of code-sharing is in complete contravention of the Department's well-settled policy, as embodied in the International Policy Statement and countless orders affirming the numerous and important public benefits stemming from U.S. carrier code-share services. It is unnecessary and superfluous for Delta to repeat all of the Department's findings here. Baltia neglects the fact that Delta is the only U.S. carrier now providing nonstop transatlantic service between the United States and Russia. Delta's code-share services are designed to augment its pattern of direct service and to more effectively compete for U.S.-Russia traffic against Aeroflot and large foreign-flag carriers such as British Airways, Lufthansa and KLM offering transatlantic service to Russia via their large European hubs.
Counsel: Shaw Pittman, Robert Cohn, 202-663-8060
September 30, 1997
In the circumstances of this particular case, we found that approval of Delta's request was in the public interest. In a comparable situation, we granted a waiver to a U.S. carrier (United, in Order 96-10-1), awaiting Russian government permission to perform third-country code-sharing services. Baltia has restated arguments discussed in a recent Department order addressing Russia frequency issues (Order 97-9-12) and has presented no new arguments that persuade us to adopt a new policy here. Furthermore, nothing in our action here will affect Baltia's access to frequencies should it commence service consistent with the terms recently prescribed by the Department. See Order 97-9-11. Consistent with the policy established in Order 96- 10- 1, the 90-day dormancy period on Delta's frequency allocation for the 9 frequencies proposed for service with Austrian and Sabena will begin on the date(s) that the Government of the Russian Federation permits these third-country code-share operations.
With respect to the .25 frequency to be operated in conjunction with Delta's services with Swissair, Delta states that it will use it in the near future in conjunction with the additional frequency allocation granted by Order 97-9-12. The additional 1.5 frequencies granted by that order will not be dormant until December 9, 1997. Given Delta's representations that the .25 frequency will be implemented shortly, we will extend the dormancy period for that frequency to be coextensive with the 1.5 frequencies granted by Order 97-9-12, i.e., through December 9, 1997.
Counsel: Robert Cohn, 202-663-8060
April 24, 1998
Application for Renewal of Frequency Allocation
Delta Air Lines, Inc. ("Delta") hereby applies for renewal of its allocationof four and one-half (4.5) weekly U.S.-Russia combination frequencies grantedby Notice of Action Taken dated June 25, 1997, as confirmed by Order 97-7-33.This frequency allocation expires on June 25, 1998. Delta requests that thefrequency allocation, as renewed, remain in effect for a period of indefiniteduration, provided that Delta continues to hold the necessary underlying U.S.-Russia authority, consistent with recent Department practice.
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
| OST-1996-1672 | April 11, 2001 | Application of Delta Air Lines | U.S.- Russia Combination Service Frequency Allocation |
In order to maintain its established level of service, Delta requires fourteen U.S.-Russia frequencies – seven for Delta’s own JFK-Moscow service, and seven frequencies to provide daily third-country codeshare service to Moscow and St. Petersburg. Delta began its third-country Russia services in conjunction with Swissair. However, by Order 2000-1-9, the Department authorized Delta “to operate third-country codeshare services in the U.S.-Russia market with either Air France or Swissair.”
Delta’s planned transition to Air France codeshare services was scheduled to take place at the commencement of the 2001 Winter Season on October 29, 2000. Delta had listed schedules and was making final implementation plans when it was advised by the Government of the Russian Federation that the new service would not be authorized. Delta inadvertently did not request a waiver of the dormancy period applicable to its seven codeshare frequencies. Delta hereby seeks reinstatement of those seven frequencies, so that Delta can maintain its longstanding third country services to Moscow and St. Petersburg, once the regulatory restrictions imposed by the Government of the Russian Federation are lifted.
It is Delta’s understanding that Russia has now refused to permit any U.S. carrier to operate third-country code-share services between the United States and Russia. Delta is fully prepared promptly to recommence third-country code-share service as soon as the Government of Russia issues Delta the necessary authority. To the extent that any of Delta’s U.S.-Russia frequencies have been unused, that circumstance is due entirely to the actions of the Russian Government, and not to any voluntary decision on Delta’s part.
Counsel: Delta and Shaw Pittman, Robert Cohn
| OST-1996-1672 | Filed April 11, 2001 Issued May 3, 2001 |
Notice of Action Taken | U.S.- Russia Combination Service |
Delta intends to use seven frequencies to provide scheduled combination service between the United States and Moscow and St. Petersburg, Russia, on a third-country code-share basis with Air France.
Delta states that it previously provided third-country code-share service to Russia in conjunction with Swissair, and that it had planned to switch its code-share carrier to Air France on October 29, 2000, consistent with Department Order 2000-1-9, which authorized Delta to operate with either Swissair or Air France. However, Delta indicates that it was unable to implement its plans because the Government of the Russian Federation has not yet authorized Delta's services. Delta further states that it inadvertently did not request a waiver of the dormancy condition applicable to the seven code-share frequencies it had planned to use. Thus, Delta seeks an allocation of seven code-share frequencies and, consistent with Department precedent, an indefinite waiver of the 90-day dormancy condition, until the Russian Federation authorizes its third-country code-share services.
By: Paul Gretch
October 26, 2007
Application of Northwest for a Dormancy Waiver or Frequency Reinstatement
Northwest Airlines, Inc. hereby requests a dormancy waiver, or, in the alternative reinstatement of seven U.S.-Russia frequencies which Northwest has historically used for U.S.-Russia codeshare services with KLM. Northwest requests that the dormancy condition be waived until 90 days after the Russian civil aviation authorities permit such services to be operated.
Northwest fully utilized these frequencies prior to the involuntary suspension of its third country codeshare services under order of the Russian civil aviation authorities. The dormancy relief requested by Northwest is in the public interest and is identical to the relief previously afforded to American Airlines, United Airlines, and Delta Air Lines -- each of which holds seven dormant Russia frequencies for third-country codeshare services with its respective European partner.
The Department previously allocated and has subsequently acknowledged Northwest’s historic interest in seven U.S.-Russia frequencies for codeshare services with KLM. Most recently, when the Department allocated frequencies to Delta for nonstop Atlanta-Moscow service, Northwest noted its non-objection to Delta’s request as long as it would not affect Northwest’s third-country allocation for services with KLM. The Department confirmed that “we do not see our action here as affecting the interests of United or Northwest.” (Notice of Action Taken dated February 5, 2005, Docket OST-2005-20116).
Through this Motion, Northwest merely seeks clarification of its longstanding frequency allocation for codeshare services with KLM through an express dormancy waiver. To the extent Northwest may have inadvertently omitted to seek a waiver, the Department has established a clear precedent supporting the reinstatement of such frequencies. See, Notice of Action Taken dated May 3, 2001 (OST-1996-1672), reallocating seven frequencies to Delta and waiving the 90 day dormancy condition until such time as Russia permits third-country codeshare operations. (“Delta indicates that it was unable to implement its plans because the Government of the Russian Federation has not authorized Delta’s services. Delta further states that it inadvertently did not request a waiver of the dormancy condition applicable to the seven codeshare frequencies it had planned to use.”).
Counsel: Northwest, Alexander Van der Bellen, 202-842-4184, sascha.vanderbellen@nwa.com
October 26, 2007
Re: Polling Results of Northwest
This letter is to confirm that Northwest Airlines, Inc. has polled all carriers included on the service list to the above referenced application and there are no objections. In these circumstances, Northwest urges that its request be granted as soon as possible.
Counsel: Northwest, Alexander Van der Bellen, 202-842-4184, sascha.vanderbellen@nwa.com
Filed October 26, 2007 | Issued October 30, 2007
Northwest states that it has historically used the frequencies for U.S.-Russia code-share services with KLM. However, the Government of the Russian Federation has not allowed Northwest to continue its U.S.-Russia third-country code-share services. Northwest states that it may have inadvertently omitted to seek a waiver of the dormancy condition applicable to the seven frequencies. Thus, Northwest seeks an allocation of seven frequencies and, consistent with Department precedent, an indefinite waiver of the 90-day dormancy condition, until the Russian Federation authorizes its third-country code-share services.
Based on the waiver granted by this notice, the 90-day dormancy period will begin on the date that the Government of the Russian Federation permits the services to begin.
By: Paul Gretch
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