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OST-97-2987

Ukraine International Airlines (Exemption, New York/Chicago-Ukraine, Codeshare with TWA)

OST-97-2987 | October 9, 1997

Application for an Exemption

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Service between the Kiev and New York/Chicago, for a period of two years, to be served on a code share basis with Trans World Airlines. This will enable Ukraine International to provide through code share service with TWA on a Kiev - Paris - New York/Chicago routing.

UIA currently operates two 108—seat Boeing 737-200 aircraft. A third Boeing 737200 is operated under a wet lease that terminates in October 1997. The airline has signed a letter of intent to lease one Boeing 737-300 aircraft for delivery in November 1997 and a second Boeing 737-300 for delivery in March 1998. In addition, UIA has entered into a purchase agreement with Boeing for the purchase of a new Boeing 737-300 for delivery in April 1999.

• UIA - 100 - Directors and Key Management
• UIA - 200 - Ownership of UIA
• UIA - 300 - Ukraine Permits for Current Operations
• UIA - 400 - Ukraine Designation to Serve United States
• UIA - 500 - Certificate of Insurance
• UIA - 600 - Waiver of Warsaw Liability Limit
• UIA - 700 - Financial Statements (Audited as of 12/96 and 12/95)

Service List

Answers are due by October 24, 1997

Counsel: Richard Fahy, 703-684-4422, rfahy@ibm.net

Trans World Airlines, Inc. and Ukraine International Airlines (Reciprocal Codesharing)

Undocketed | OST-97-2986 | OST-97-2987 | October 20, 1997

Answer of Tower Air

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Tower Air does not oppose the proposed code-sharing services of TWA and Ukraine International as such. It does strongly oppose, however, the intertwined request of TWA that Tower Air not be designated to serve Ukraine under the U.S.-Ukraine Bilateral Air Transport Agreement so that TWA can, instead, be given that designation. There are four, very strong public interest reasons why this request of TWA must not be granted.

Counsel: Hewes Gelband, Stephen Gelband, 202-337-6200

Trans World Airlines, Inc. and Ukraine International Airlines (Exemptions and Statements of Authorization, Codeshare)

OST-97-2986 | OST-97-2987 | Undocketed | October 24, 1997

Consolidated Answer of United Air Lines

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

Trans World Airlines, Inc. and Ukraine International Airlines (Statements of Authorization and Exemptions, Codesharing)

Undocketed | OST-97-2986 | OST-97-2987 | October 28, 1997

Reply of TWA and Ukraine International Airlines

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Trans World Airlines and Ukraine International hereby reply to the answers of Tower Air and United Airlines to their joint application for statements of authorization for code share service between the U.S. and Ukraine. Tower Air has exemption authority, which will soon become dormant, to operate New York-Kiev service, and proposes to extend such dormant route rights even though they deprive other airlines of the opportunity to serve the U.S.-Ukraine market. United already provides code share service to Ukraine, but has determined to use the vehicle of this application to begin a campaign for additional third country code share frequencies. TWA and Ukraine International request that the arguments of both carriers be rejected, and that the Department authorize them to provide the proposed code share service.

• Attachment 1: Tower Press Release, October 21, 1997, Lease Out B-747 Equipment
• Attachment 2: Letter from Ukraine Intl to TWA

Counsel: Richard Fahy, 703-684-4422

Ukraine International Airlines (Notice of Action Taken)

OST-97-2987 | Filed October 9, 1997 | Issued June 1, 1998

Notice of Action

Exemption from 49 U.S.C. § 41301 to engage scheduled foreign air transportation of persons, property and mail between Kiev & Donetsk, Ukraine, and New York, New York, and Chicago, Illinois, via Paris, France, under a code share arrangement with Trans World Airlines (TWA), for a period of two years.

Applicant Rep:  Richard Fahy, 703-684-4422

Ukraine International Airlines

While Ukraine International has not yet instituted service pursuant to its code share agreement with TWA, it is still working with that carrier to implement the code share operation. If the parties decide ultimately not to proceed with the code share Ukraine International wild immediately advise the Department.

Counsel:  Richard Fahy, Jr., 703.684.4422, rfahy@ibm.net

Ukraine International Airlines

Counsel:  Glenn Wicks, 202.457.7790 

Trans World Air Lines, Inc. and Ukraine International Airlines

American Airlines, Inc. hereby answers in strong opposition to the captioned applications submitted on August 18, 2000 by Trans World Airlines, Inc. and Ukraine International Airlines seeking authorization to engage in codesharing services between the Ukraine and points in the United States via London and Paris.  These applications should be summarily dismissed as untimely. By Show-Cause Order 2000-8-11, August 10, 2000 in U.S.-Ukraine Third-Country Codeshare Opportunities, OST-00-7784, the Department tentatively assigned the last remaining U.S.-Ukraine codesharing opportunity to American to engage in services between the U.S. and Kiev via Zurich with Swissair. For more than four months, TWA and Ukraine Airlines failed to show any interest. The Department should immediately finalize Order 2000-8-11 so that American and Swissair may implement their proposed codesharing services without further delay.

Counsel:  American, Carl Nelson, 202.496.5647, carl_nelson@aa.com 

Trans World Air Lines, Inc. and Ukraine International Airlines

TWA urges the Department to reject American's Answer in this proceeding as wholly inapplicable. Specifically, TWA again asserts that there is no need to deny TWA and Ukraine International exemption authority on the grounds that American urges the grant to it of a third country code-share Designation. The narrow legal issue presented to the Department is whether to make final its tentative decision to grant a Designation currently belonging to TWA to American in Docket OST 00-7784. Exemption authority in the instant proceeding is a wholly separate matter. Specifically, the Department may choose to grant TWA and Ukraine International's requests for exemption and statement of authorization subject to the requirement that the separate grant of a Designation is required. Indeed, TWA again points out that there may be extra-bilateral remedies that do not implicate the Designation sought in this proceeding by both TWA and American.

Counsel:  Glenn Wicks, 202.457.7790 

Notice of Action Taken Dismissing Applications:  American Airlines, Inc. and Aerolineas Argentinas, S.A.; Russia Airlines; Ukraine International Airlines;; Ansett New Zealand Limited; Kendell Airlines, (AUST) Pty. Limited; North East Cargo Airlines, , Ansettt Australia Limited

American Airlines, Inc. and Aerolineas Argentinas, S.A., filed September 14, 1999. Joint applications of American and Aerolineas Argentinas seeking exemption authority and statements of authorization to conduct reciprocal code-share services between the United States and Argentina. On October 3, 2001, American and Aerolineas Argentinas filed ajoint motion requesting that we dismiss the applications.

Russia Airlines, filed August 7, 1998. Initial foreign air carrier permit to engage in scheduled foreign air transportation of persons, property and mail between the Russian Federation and specified points in the United States. Information available to the Department indicates that Russia Airlines has no plans to prosecute this application.

Ukraine International Airlines, filed May 26, 1999. Renew exemption authority, last granted June 1, 1998, in this docket, to engage in scheduled foreign air transportation of persons, property and mail between Ukraine and New York and Chicago, via Paris, France, pursuant to a code share arrangement with Trans World Airlines. Also, by
application filed August 18, 2000, Ukraine International requested that we amend its existing exemption authority to include authority to serve St Louis in addition to New York and Chicago. Information available to the Department indicates that Ukraine International has no plans to prosecute this application.

Ansett New Zealand Limited, filed April 15, 1996. Renew exemption authority and statement of authorization, last granted April 25, 1995, and confirmed by Order 95-5-5, to continue operating code-share services for United Airlines, Inc. between Auckland, New Zealand, on the one hand, and Wellington and Christchurch, New Zealand, on the other hand, in conjunction with United's U.S.-Auckland services. Information available to the Department indicates that Ansett New Zealand has no plans to prosecute this application.

Kendell Airlines (Aust) Pty. Limited, filed June 29, 2000. Renew underlying exemption to allow it to display the designator code of United Air Lines, Inc., on flights operated by Kendell between Sydney and Canberra, Australia, and between Melbourne and Canberra/Hobart, Australia. By letter dated September 24, 200 1, United informed the Department that the code share had been terminated.

North East Cargo Airlines, filed August 17, 1995. Initial foreign air carrier permit to engage in charter foreign air transportation of property and mail between the Russian Federation and the United States; and authority to conduct other all-cargo charters in accordance with Part 212. Information available to the Department indicates that North East Cargo has no plans to prosecute this application.

By:  Paul Gretch

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