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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
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