ost972145 - Northwest Airlines, Inc. | United Air Lines, Inc. - Allocation of US-Philippines Route 2 All-Cargo Frequencies

OST Filings by Docket Number

Northwest Airlines, Inc. | United Air Lines, Inc. (Allocation of US-Philippines Route 2 All-Cargo Frequencies)

OST-97-2145 | OST-97-2201 | May 23, 1997

Reply of Northwest Airlines and Motion for Leave to File

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Contrary to United's allegations, Northwest will provide direct services twice weekly between Manila and the U.S. in both directions. Both Northwest and United intend to turn their aircraft at Manila. The fact that one of Northwest's freighter frequencies will stop in Thailand before arriving in Manila will not impact Northwest's ability to carry U.S.-Manila westbound traffic on that flight. A mere eight hour delay in the arrival at Manila of one of Northwest's frequencies is not significant and should not be decisional. This is particularly so given the nature of the traffic Northwest carries, bulk freight which tends not to be time sensitive. Northwest will offer U.S.-Philippines shippers B-747 aircraft with the largest available lift coupled with nose-loading capability. The Department explicitly acknowledged the demand for B-747 wide-body equipment when it selected Polar in the U.S.Philippines Route 3 Proceeding.

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

Northwest Airlines, Inc. / United Air Lines, Inc. (Allocation of All-Cargo Frequencies)

Order 97-7-35 | OST-97-2145 | OST-97-2201 | Issued and Served July 30, 1997

Order to Show Cause

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By this order we tentatively award Northwest Airlines an allocation of two weekly frequencies to provide all-cargo scheduled service in the US-Philippines market for a period of one year from October 1, 1997.

While both Northwest and United have presented proposals that would benefit the public, we tentatively find that the selection of Northwest better serves our goal of promoting competition in the U. S.-Philippine all-cargo market. Northwest would be a new entrant to that market. Not only would it offer new competition to United, but also new competition to Federal Express, Polar, and UPS. United, on the other hand, already serves the market with three weekly frequencies. While the allocation of additional frequencies to United would enable it to increase that service, the selection of Northwest will make available to the public new price, service, and aircraft options, a benefit we believe is especially important as the Philippine market develops. In these circumstances, we tentatively conclude that the competitive benefits of a new all-cargo entrant outweigh the competitive benefits of increased operations by United.

By: Patrick Murphy

Northwest Airlines, Inc./ United Air Lines, Inc. (Allocation of all-cargo frequencies US-Phillipines, Route 2)

OST-97-2145 | OST-97-2201 | August 11, 1997

Objections of United Air Lines

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As noted previously, one of Northwest's two weekly flights serves Manila in only the eastbound direction. The Department cannot reasonably conclude that that flight is in any way superior to United's roundtrip turnaround flights. At the very least, the Department should award United one of the two available frequencies based on the superiority of its service proposal and Northwest's dominant position in the U.S.-Philippines market.

Counsel: United and Ginsburg Feldman, Joel Burton, 202 637 9130

Northwest Airlines, Inc. / United Air Lines, Inc. (Allocation of All-Cargo Frequencies, US-Philippines Route 2)

OST-97-2145 | OST-97-2201 | August 15, 1997

Reply of Northwest Airlines

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The record overwhelmingly supports the Department's tentative allocation to Northwest of the two newly available U.S.-Philippines Route 2 all-cargo frequencies. United has offered no rationale for reversal of the Department's tentative decision beyond those already considered and rejected by the Department in the SCO. In these circumstances, the Department should proceed directly to a Final Order confirming its tentative selection of Northwest in this proceeding.

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

Northwest Airlines, Inc. / United Air Lines, Inc. (Allocation of All-Cargo Frequencies, Route 2)

Order 97-8-22 | OST-97-2145 | OST-97-2201 | Issued and Served August 22, 1997

Final Order

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By this order, we make final our tentative decision in Order 97-7-35 and grant Northwest Airlines an allocation of two weekly frequencies to provide all-cargo scheduled service in the US-Philippines market for a period of one year from October 1, 1997

By: Patrick Murphy