ost983418

OST-98-3418

U.S.-Japan Combination Services

OST-98-3418 | OST-98-3419 | Posted and Served February 3, 1998

Notice

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By this notice, we invite all US carriers interested in serving the US-Japan market, to file applications with the Department as set forth in this notice no later than February 10, 1998, to operate new services in the US-Japan market.

By: Charles Hunnicutt

1998 US-Japan Interim Frequency Allocation Proceeding / 1998 Japan Combination Services Proceeding

OST-98-3418 | OST-98-3419 | February 9, 1998

Motion of Hawaiian Airlines to Stay Procedural Dates

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Because of Hawaiian's physical location, its route structure and its extensive and long history of experience with the Japanese market, Hawaiian, under the right circumstance, is able to mount an attractive and winning application for service to Japan from the mainland or Honolulu, either directly or on a code-share basis. But to do so requires some reasonable time period for an experienced and able, but limited staff, to respond in a thoughtful and organized manner.

Counsel: Dow Lohnes, Jonathan Hill, 202.776.2000

Continental Airlines, Inc.

OST-98-3418 | February 10, 1998

Application of Continental Airlines for Pendente Lite Exemtpion Authority and for a Frequency Allocation

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Continental therefore applies for a pendente lite exemption from 49 U.S.C. § 41101 and an allocation of 14 frequencies to operate daily Houston-Tokyo and Newark-Tokyo service pending the Department's decision on Continental's Certificate Applications for such authority. Continental states as follows in support of its application. Continental plans to institute daily B-777 service between Newark and Tokyo and between Houston and Tokyo in November and December 1998.

Counsel: Continental and Crowell Moring, Bruce Keiner

1998 US-Japan Interim Frequency Allocation Proceeding / 1998 Japan Combination Service Proceeding

American Airlines, Inc.

OST-98-3418 | OST-96-1091 | OST-96-1126 (49527) | February 10, 1998

Application of American Airlines for Long-Term US-Japan Certificate Authority, Frequency Allocation, and Same-Country Codesharing

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Between Chicago and Tokyo (seven weekly frequencies);
Between New York (JFK) and Tokyo (seven weekly frequencies);
Between Boston and Tokyo (seven weekly frequencies);
Between Dallas/Ft. Worth and Osaka (seven weekly frequencies);
Same-country codesharing with US Airways, Inc. between Dallas/Ft. Worth and Tokyo, originating and terminating at Charlotte (seven weekly frequencies), and between Dallas/Ft. Worth and Osaka, originating and terminating at Philadelphia (seven weekly frequencies).

Exhibit: Map of Proposed Service

Exhibit: Proposed Service Schedule

Exhibit: Annual Operating Statistics

Exhibit: MD-11 Pacific Configuration

Exhibit: Map of Chicago Feed

Exhibit: Map of New York JFK Feed

Exhibit: Map of Dallas/Ft. Worth Feed

Application of American Airlines for Pendente Lite Exemption - Chicago-Tokyo

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American proposes to begin Chicago-Tokyo service on May 1, 1998, using 238-seat MD-11 aircraft.

Exhibit: Proposed Chicago-Tokyo Service
Exhibit: Proposed Schedule
Exhibit: Annual Operating Statistics
Exhibit: Chicago Hub Feed

Motion of American Airlines to Consolidate

American Airlines, Inc., under the Department's Notice of February 3, 1998 setting forth procedures for awarding new rights made available by the agreement of January 30, 1998 between the United States and Japan, hereby moves to consolidate the Chicago-Tokyo and New York-Tokyo portion of its application of February 21, 1996 for certificate authority in OST-96-1091, and the Dallas/Ft. Worth-Osaka portion of its application of April 26, 1994 for certificate authority in Docket 49527 (OST-96-1126), into the .1998 U.S.-Japan Combination Service Proceeding, OST-98-3419.

Counsel: American, Carl Nelson, 202-496-5647

Delta Air Lines, Inc.

OST-98-3418 | February 10, 1998

Application of Delta Air Lines for a Pendente Lite Exemption, Allocation of Frequencies, and a Waiver to Permit Advance Sales and Marketing

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Delta plans to operate its new Atlanta-Tokyo service using McDonnell Douglas MD-11 aircraft configured with 18 first class, 40 business and 200 coach seats, for a total of 258 seats

Application of Delta Air Lines for a Pendente Lite Allocation of Frequencies and a Waiver to Permit Advance Sales and Marketing

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Delta has been operating Los Angeles-Tokyo service since 1991, subject to a restriction which limits the number of frequencies Delta can operate between Los Angeles and Tokyo to only six weekly flights. Delta is the only U.S. carrier on that route that has been prevented from operating daily service. Delta's inability to operate daily service in this important city-pair has placed Delta at a significant competitive disadvantage against the entrenched incumbents on that route. This competitive disadvantage will be exacerbated under the new U.S.-Japan Agreement, which eliminates all restrictions on incumbent U.S. and Japan carriers giving them the flexibility to substantially increase service between Los Angeles and Tokyo. Delta needs the ability to operate daffy nonstop service on this route to prevent an erosion of its competitive position in the wake of the new agreement.

Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060

1998 US-Japan Interim Frequency Allocation Proceeding / 1998 Japan Combination Service Proceeding

OST-98-3418 | OST-98-3419 | Served February 10, 1998

Notice Denying Motion

We have decided to deny Hawaiian's motions We fully discussed in our Notice the need for expedition with respect to the newly available U. S. -Japan authorities. Specifically, we noted that given that the new route opportunities became available upon the signing of the MOC, and the fact that "incumbent" U.S. and Japanese carriers could expand their U.S.Japan services immediately, expedited procedures were necessary to award the new rights promptly and to facilitate operations by other U.S. carriers as quickly as possible. Also, information about the potential availability of these new route opportunities was available during the negotiation process to all U. S. carriers and/or their representatives. Hawaiian has presented no arguments that convince us the overall public interest warrants delay in these dates.

By: Charles Hunnicutt

OST-98-3418 | OST-98-3419 | February 10, 1998

Answer of Delta Air Lines to Petition for Reconsideration

Hawaiian's Petition raises no issues that have not been thoroughly considered by the Department in the Notice denying Hawaiian's Motion. Contrary to Hawaiian's position, national transportation policy compels the expedited consideration of applications by non-incumbent carriers to utilize the new U.S.-Japan bilateral opportunities involving proposals to begin service this calendar year. As the Department correctly observed, the new route opportunities are available immediately and incumbent U.S. and Japanese carriers can expand their U.S.-Japan services without delay.

Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060

Hawaiian Airlines Petition for Reconsideration to the Secretary of Transportation

Hawaiian Airlines, Inc. herewith files this Petition for Reconsideration for the Secretary to review the denial of Hawaiian's request for a 20 day stay of procedural dates in the captioned dockets]/. Hawaiian's original request included alternative relief, that if the whole proceeding were not stayed, the selection of the carrier for the year 2000 be stayed.Hawaiian believes this Petition raises serious issues of national transportation policy indeed basic fairness to all carriers.

The issue presented is whether as a matter of policy smaller carriers are going to be given a reasonable opportunity to apply for and realistically compete with larger carriers when valuable and scarce bilateral rights become available. The problem is particularly acute in the present Japan Combination Service proceeding where many, if not most, of the carrier's seeking authority are already in the Japan market.

Counsel: Dow Lohnes, Jonathan Hill, 202-776-2000

1998 US-Japan Combination Service Proceeding / 1998 US-Japan Interim Frequency Allocation Proceeding

OST-98-3419 | OST-98-3418

Amendment No. 2 to Application of Delta Air Lines, Inc.

Delta hereby amends its applications in the above-captioned dockets to change the start-up date for its proposed Atlanta-Tokyo service to June 3, 1998.

Counsel: Shaw Pittman, Robert Cohn, 202.663.8060

Amended Application of Trans World Airlines

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The grant of 28 weekly same-country code share frequencies to TWA to enable Delta and TWA to implement their code share proposal would maximize new entrant service and competitive benefits between the U.S. and Japan. An award to TWA will enable it to immediately inject new entrant competition between the U.S. and Japan, and to develop a market presence in Japan. Code sharing with Delta will enable TWA to offer St Louis online service to Japan immediately while it prepares for its inauguration of its St Louis-Narita nonstop service in 1999. TWA's traffic support will also be useful to Delta as it expands service in the Japan market The award will enhance Delta's traffic flow and strengthen its ability to be an effective competitor against the entrenched incumbent airlines, who have the ability to operate on a completely unrestricted basis under the new agreement with Japan. No other same- country code share proposal would produce such significant competition and market structure benefits.

Counsel: TWA and Richard Fahy, 202-457-4764, rfahy@ibm.net

1998 US-Japan Interim Frequency Allocation Proceeding

OST-98-3418 | February 11, 1998

Motion of American Airlines to Reject Application of Continental Airlines for Pendente Lite Award of Frequencies (Houston/Newark-Tokyo) as Non-Response to the Department's Notice

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American Airlines, Inc. hereby moves the Department to reject as non-responsive the application submitted on February 10, 1998 by Continental Airlines, Inc. seeking pendente lite authority to serve two U.S.-Tokyo routes (Houston and Newark) with 14 weekly frequencies

Motion of American Airlines to Reject Application of Delta Air Lines for Pendente Lite Award of Frequencies (Los Angeles-Tokyo) as Non-Response to the Department's Notice

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American Airlines, Inc. hereby moves the Department to reject as non-responsive the application submitted on February 10, 1998 by Delta Air Lines, Inc. seeking a pendente lite award of one weekly frequency between Los Angeles and Tokyo, which is in addition to Delta's separately-filed exemption application for Atlanta-Tokyo authority with seven weekly frequencies.

Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com

1998 US-Japan Interim Frequency Allocation Proceeding

OST-98-3418 | February 12, 1998

Consolidated Answer of The City of Chicago in Support of the Motions of American Airlines

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Continental has chosen a strategy of delay and non-compliance, no doubt hoping to throw sand in the gears of others in light of (i) an inability to obtain suitable aircraft, and (ii) its new partnership with Northwest Airlines, Inc. ("Northwest"), which operates 145 weekly flights between the United States and Japan and has 316 slots at Narita. Apparently, Continental will not receive its B-777s until the end of the year. Other MOU carriers' service plans should not be delayed, however, for Continental's lack of planning. Nor should service be delayed to protect Northwest, which will soon be facing formidable competition on its Chicago-Tokyo route, as well as to its Detroit-Tokyo and Minneapolis-Tokyo routes. Continental alone opposed American's efforts to begirt promotion and sales of American's Chicago-Tokyo route, rather than seek the same flexibility that both American and Delta are seeking to launch successfully their new pendente lite service to Tokyo. Instead of complying with the Department's mandate to prioritize routes and identify seven frequencies to Tokyo, Continental told the Department that it "requires" and "must" have "immediate authority" for fourteen frequencies for Newark/HoustonTokyo service that would not even begin until November and December 1998.

Counsel: Chicago and Winthrop Stimson, Kenneth Quinn, 202-775-9898

1998 US-Japan Interim Frequency Allocation Proceeding / 1998 US-Japan Combination Service Proceeding

Order 98-2-11 | OST-98-3418 | OST-98-3419 | Issued and Served February 13, 1998

Order Denying Petition

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By this order we deny the petition of Hawaiian Airlines for reconsideration of our decision of February 9, denying its request for a delay in the procedural dates in the above-captioned proceedings.

By: Charles Hunnicutt

1998 US-Japan Interim Frequency Allocation Proceeding / Application of American Airlines, Inc.

Order 98-2-12 | OST-98-3418 | OST-98-3431 | Issued and Served February 13, 1998

Order Granting Pendente Lite Authorization

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By this order we award, on a pendente fire basis, authority for new services to Japan, as describedin this order, to American Airlines, Inc., Continental Airlines, Inc., and Delta Air Lines, Inc. Wealso allocate to each of these carriers a total of seven weekly frequencies for these services. Theexemption authority and frequency allocations will be effective immediately for a period of oneyear, or until 90 days after a final decision in the 1998 U.S.-Japan Combination ServiceProceeding in Docket OST-98-3419, whichever occurs earlier.

By: Patrick Murphy

1998 US-Japan Combination Service Proceeding

February 13, 1998

OST-98-3418 | OST-98-3419 | OST-96-1213

Answer of The City of Houston and The Greater Houston Partnership in Support of Applications of
Continental Airlines

Counsel: Zuckert Scoutt, Raymond Rasenberger, 202-298-8660

Answer of Kansas City, Missouri

Counsel: Walter O'Toole, City Atty., 816.274.1111