ost983329

OST-98-3329

Transaero Airlines (Exemption, Scheduled Combination, New York-Russia)

OST-98-3329 | January 14, 1998

Application for an Exemption

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By this request, Transaero requests expansion of its existing authority by asking the Department to authorize it to serve New York, via intermediate points, on a scheduled basis, pursuant to the U.S.-Russia bilateral air transport agreement, for services which are scheduled to begin on June 1, 1998. Transaero intends to utilize its DC-10-30 equipment in this market on a non-stop basis to Moscow, but may choose to use different equipment as its fleet composition changes. This service will fill a substantial need for additional service as a result of the gap created by the cessation of combination service previously provided by KrasAir, a Russian airline, which had been using DC-10-30 aircraft in the New York-Russia market.

Transaero currently holds an exemption to provide scheduled services between the U.S. coterminal points of Washington D.C., Orlando, Dallas, Chicago, Seattle, and Los Angeles, via intermediate points, on the one hand, and a point or points in Russia on the other hand, via intermediate points, as well as charter authority in accordance with Part 212 of the Department's Regulations.

Answers are due by February 29, 1998

Counsel: Hogan Hartson, George Carneal, 202-637-5683

Transaero Airlines (Exemption, New York-Russia)

OST-98-3329 | January 29, 1998

Answer of United Air Lines to Application for an Exemption

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Even if the authority requested by Transaero is encompassed by the bilateral between the United States and Russian Federation, the Department should deny Transaero's request or defer action until the U.S. and Russia have concluded negotiations on pending bilateral issues. The Russian government, since at least March of 1995, has refused to renew United's bilateral right to offer code-share services between the U.S. and Moscow via Frankfurt in conjunction with Lufthansa. These code-share services are expressly permitted under the terms of the U.S.-Russia bilateral air services agreement and in fact had been approved by the Russian Government on two previous occasions.

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

Transaero Airlines (New York-Russia)

OST-98-3329 | June 5, 1998

Motion for Expeditious Consideration

Transaero hereby requests expeditious consideration and that the Department grant its exemption application without further delay. Transaero believes that, by United's own criteria, progress has been evidenced in the form of bilateral negotiations which are progressing in good faith to resolve outstanding differences. Transaero submits that the time is right to further build bridges of trust between the government's of Russia and the United States. Moreover, Transaero believes that such efforts will be result in additional progress at the next round of talks which is scheduled to occur in Moscow in late June.

Counsel: Hogan Hartson, Glenn Wicks, 202-637-5683

Transaero Airlines (New York-Russia)

OST-98-3329 | June 15, 1998

Answer of United Air Lines to Motion of Transaero for Expeditious Consideration

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In making this answer in opposition, United repeats and renews the objections it made in this docket on January 29, 1998: the Department should deny Transaero's request for expeditious action and defer action until the U.S. and Russia have concluded negotiations on pending bilateral issues. United believes that such deferral is still required because the Russian Government continues, as it has for more than three years, to refuse to renew United's bilateral right to offer code-share services b-etween the U.S. and Moscow via Frankfurt in conjunction with Lufthansa.

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

Transaero Airlines

OST-98-3329

October 19, 1998

Notice of United Air Lines

Scheduled Combination New York-Russia

United Air Lines, Inc., hereby notifies the Department that it is withdrawing its answers dated January 29, 1998, and June 15, 1998, in the above-captioned proceeding.

Counsel: United and Kirkland Ellis, Jeffrey Manley, 202-879-5161, jeffrey_manley@kirkland.com

Transaero Airlines

OST-98-3329

Filed January 14, 1998
Action Taken October 21, 1998

Notice of Action Taken

Scheduled Russia-New York

Exemption from 49 U.S.C. § 41301 to engage in scheduled foreign air transportation of persons, property and mail between the Russian Federation and New York, New York, via intermediate points.

By: Paul Gretch