OST-97-2888
Home | OST Filings by Docket | OST Filings by Carrier | OST Filings by Proceeding
| OST Filings by Day
Office of Intl Aviation Filings by Carrier | Office of Intl Filings by Day
OST-97-2888
United Air Lines, Inc. Against The Government of the Russian Federation
OST-97-2888 | September 9, 1997
Complaint of United Air Lines, Inc.
With Russia's approval, United initiated code-share services with Lufthansa between the U. S. and Moscow via Frankfurt in July of 1994. Russia reaffirmed its approval of these codeshare services on October 28, 1994, by authorizing United's Winter 1994-95 code-share schedule. Strong bookings indicated that the code-share operation was a success, and United contemplated expanding its code-share services to St. Petersburg. On March 31, 1995, however, Russia refused to approve United's U.S.-Moscow Summer 1995 code-share schedule and ordered United to terminate its code sharing with Lufthansa on the basis that, under an agreement between Germany and Russia, code sharing between German and U. S. carriers is not allowed. Russia again refused to renew United's authority during the April 19-20, 1995, bilateral talks, and United was forced to terminate its code sharing following the conclusion of those talks.
Counsel: Michael Whitaker, 847 700 3955
United Air Lines, Inc. against The Government of the Russian Federation
Order 97-9-19 | OST-97-2888 | Issued September 17, 1997 | Served September 23, 1997
In order to develop the record for our consideration of this matter, we invite any interested persons to answer United's complaint in Docket OST-97-2888. Answers may be filed no later than 14 days after the date of service of this order. Answers filed should include all data, evidence, and arguments upon which the respondents rely to support their positions, and should cover all substantive and procedural issues that they wish the Department to consider. Replies to any answers should be filed no later than 7 calendar days thereafter.
By: Charles Hunnicutt
United Air Lines, Inc. against The Government of The Russian Federation
OST-97-2888 | October 7, 1997
Answer of Aeroflot Russian International Airlines
The timing of the complaint is especially suspect. United asserts that Russia's refusal to allow its code share service dates from March 31, 1995 and notes that its inability to operate that service was discussed during the U.S.-Russian bilateral talks conducted during April 19-20, 1995. Given that chronology, United's decision to wait until the U.S. and Russia agreed to bilateral negotiations before filing its complaint and then precisely timing that complaint so that the initial deadline imposed by § 41310 for DOT action falls just two days before the negotiations are scheduled to start appears calculated to disrupt the negotiating atmosphere.
Aeroflot would like nothing better than for the November negotiations to result in a mutually acceptable agreement between the United States and Russia. To the extent the Department shares that objective, Aeroflot respectfully submits that issuance of a sanctions order or an order deferring announcement of sanctions for a limited period would not foster a negotiating environment conducive to amicably negotiated agreement. Accordingly, Aeroflot respectfully requests that the Department dismiss United's complaint.
Counsel: Boros Garofalo, Don Hainbach, 202-822-9070
Delta is also being denied the bilaterally-authorized right to operate third-country code-share service to Russia via Vienna with its alliance partner Austrian Airlines ("Austrian"). Delta was designated by the U.S. Government under the terms of the U.S.-Russia agreement to operate third-country codeshare service with Austrian between Vienna and Moscow and between Vienna and St. Petersburg. Austrian was already serving both of the routes, and therefore there is no question that Austrian was authorized to serve Russia. Although Delta was able to implement the service in June 1997, soon after implementation Russia threatened action against Austrian, forcing Delta to terminate the code-share service.
Delta has been trying, so far without success, to resolve these issues through informal discussions with representatives of the Russian government. Delta requests that the U.S. delegation put these issues on the agenda for the upcoming bilateral consultations between the U.S. and Russia, which are scheduled for mid-November. If the issues are not resolved during those consultations to permit Delta to operate its third-country codeshare services with Austrian, the Department should impose proportional sanctions against Russian flag carriers.
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
While the Civic Parties do not dispute the importance of insisting upon the exercise of bilateral rights like third-country code-sharing, the proposed sanction, especially at this time, does not meet the test of proportionality. The Civic Parties urge the Department to refrain from taking any remedial retaliatory action that would entail the cessation of Aeroflot's existing and valuable service to and from O'Hare, San Francisco and Dulles, on the one hand, and Moscow, on the other; instead, the Civic Parties urge the Department either to extend its action deadline on the Complaint by 45 days or to find a violation and defer the issue of sanctions pending bilateral air service negotiations between the United States and Russia on November 11-13, 1997.
Counsel: Chicago and Winthrop Stimson, Kenneth Quinn, 202-775-9800 / San Francisco, Mara Rosales, 650-794-5065 / MWAA, Edward Fagan, 703-417-8615
United Air Lines, Inc. against The Government of the Russian Federation
OST-97-2888 | October 9, 1997
Answer and Motion of Alaska Airlines
For its part, Alaska has encountered any number of instances in which the Russian Government has inexplicably either denied or delayed approval of what Alaska sincerely believed were routine requests. Alaska would urge the Department in the strongest possible terms to require in the upcoming negotiations nothing less than an attitudinal change on the part of the Russian Government. That is the only way in which the U.S. Government and its carriers can be reasonably assured that existing relationships will not be disrupted and that what should be routine approvals Alaska's experiences have included extraordinary delays in the approval of its code-share arrangement with Northwest as well as with its initiation of service to Petropavlovsk. On many occasions, Alaska's schedules are not approved until the absolute last tnoment. While Alaska has persevered in serving what is now five cities in the Russian Far East, the delays Alaska has encountered at the hands of the Russian Government have imposed heavy financial costs on Alaska. The proverbial playing field is far from level and Alaska would hope that one of the United States' priority objectives in the upcoming negotiations would be obtaining specific and enforceable assurances that U.S. carriers will no longer be subjected to arbitrary delays, much less abrupt terminations of existing approved operations.
A perfect example of the unexpected roadblocks which U.S. carriers are facing is the recently-issued Order No. 503 of the Russian Central Bank, which provides that international tickets sold in Russia may not be purchased with hard currency on and after January 1, 1998. Alaska is currently in the process of trying to obtain clarification of this Order. If, however, this Order in fact means what it appears to state and is permitted to stand, Alaska will be foreclosed--from a financial standpoint--from selling Russian-originating tickets, a market which Alaska has worked assiduously to develop.
Counsel: Alaska and Squire Sanders, Marshall Sinick, 202-626-6651
United Air Lines, Inc. v. The Government of The Russian Federation
OST-97-2888 | October 14, 1997
Aeroflot Withdrew its Answer - Expected to be filed 10/15
Consolidated Reply of Continental Airlines
As the answers of Alaska, Delta and the Civic Parties indicated, aviation authorities of the U.S. and Russia are meeting in early November to discuss the precise issues for which United seeks redress in its complaint. Continental agrees with Delta and the Civic Parties that in view of this upcoming meeting, the Department should either defer action on United's complaint until after the negotiations take place or dismiss it immediately.
Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2500
Consolidated Reply of United Air Lines
The only new development on this issue is the German government's letter dated July 1, 1997, which is attached to United's complaint. In that letter, Germany disputes Russia's unilateral interpretation of the Germany/Russia agreement as authorizing Russia to withhold approval of United's code-share service. Indeed, Russia's approval of the United/Lufthansa codeshare service on two separate occasions after the Germany/Russia agreement was signed would tend to indicate that Russia itself harbors some doubt as to the validity of its current interpretation of that agreement.
Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130
United Air Lines, Inc. v The Government of the Russian Federation
OST-97-2888 | October 23, 1997
Response of United Air Lines and Motion for
Leave to File
Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130
United Air Lines, Inc. against The Government of the Russian Federation
Order 97-11-3 | OST-97-2888 | Issued November 4, 1997 | Served November 7, 1997
We are very concerned over the issues raised in United's complaint. Indeed, even before the filing of the complaint we had made clear our view that these important issues should be addressed directly with the Russian Government through diplomatic channels . Importantly, this regard, we have bilateral negotiations scheduled for November 12-14, 1997, in Moscow. We fully intend to address the issue of third-country code-sharing, including the specific issues raised in United's complaint, during those negotiations. Against this background, we believe the public interest is best served by extending the deadline for action on United's complaint for 30 days to provide additional time to reach a negotiated resolution of this matter.
By: Charles Hunnicutt
United Air Lines, Inc. against The Government of The Russian Federation
Order 97-12-6 | OST-97-2888 | Issued December 5, 1997 | Served December 10, 1997
On September 9, 1997, United Air Lines, Inc., filed a complaint under 49 U.S.C. section 41310 against the Government of The Russian Federation (Russia). United alleges that Russia is in violation of the 1993 Air Transport Agreement between the United States and the Russian Federation because Russia forced United to terminate its U.S.-Moscow code-sharing services via Frankfurt with Lufthansa German Airlines (Lufthansa), and that such action places unjustifiable and unreasonable restrictions on United, requiring retaliatory action by the Department.
We extend through January 7, 1998, the deadline for taking action on the complaint of United Air Lines, Inc., in Docket OST-97-2888.
By: Charles Hunnicutt
United Air Lines, Inc. against The Government of the Russian Federation
Order 98-1-5 | OST-97-2888 | Issued January 6, 1998 | Served January 12, 1998
We extend through February 6, 1998, the deadline for taking action on the complaint ofnUnited Air Lines.
By: Charles Hunnicutt
United Air Lines, Inc. against the Government of the Russian Federation
Order 98-2-3 | OST-97-2888 | Issued February 4, 1998 | Served February 10, 1998
By this order we approve the complaint of United Air Lines, Inc. (United), against the Government of the Russian Federation (Russia). We have decided to defer a decision on the issue of appropriate sanctions. We find that the complaint filed by United Air Lines, Inc., against the Government of the Russian Federation, in Docket OST-97-2888, establishes an unjustifiable and unreasonable discriminatory practice against an air carrier and imposes an unjustifiable and unreasonable restriction on the market access of United Air Lines, Inc., with respect to its U.S.-Frankfurt-Moscow services pursuant to a code-share arrangement with Lufthansa German Airlines.
By: Charles Hunnicutt
United Air Lines, Inc. against The Government of Russia
| OST-97-2888 | February 10, 1999 | Motion of United Air Lines to Dismiss
Complaint |
United against Russia |
hereby requests the Department to dismiss its Complaint dated September 9, 1997, in the above-captioned docket and to issue an order terminating this proceeding. In view of the recent agreement between the governments of the Russia Federation and the German Federal Republic amending their agreement of July 14, 1993, relating to codeshare services involving third-country carriers, United expects the Russian Federation to restore its authority to codeshare on the flights of Lufthansa German Airlines between Frankfurt and Moscow. It was the Russian Federation's refusal to renew United's authority to code share on those flights that gave rise to United's instant complaint. The Russian Federation relied upon the terms of the July 14, 1993 Germany/Russia agreement as the basis for its action. The recent modification of those terms eliminates the basis for the Russian Federation's objection to United's code share. In these circumstances, United's IATFCPA Complaint in this docket is now moot.
Counsel: United and Kirkland Ellis, Jeffrey Manley, 202-879-5161
United Air Lines, Inc. against The Government of the Russian Federation
| Order 99-2-29 OST-97-2888 |
Issued February 26, 1999 Served March 3, 1999 |
Order Dismissing Complaint and
Terminating Proceeding |
U.S. - Frankfurt - Moscow (Codesharing w/Lufthansa) |
We dismiss, without prejudice, the complaint of United Air Lines, Inc., against the Government of the Russian Federation.
By: Charles Hunnicutt
Home | OST Filings by Docket | OST Filings by Carrier | OST Filings by Proceeding
| OST Filings by Day
Office of Intl Aviation Filings by Carrier | Office of Intl Filings by Day
