ost983431

OST-98-3431

American Airlines, Inc. (Waiver to Permit Advance Advertising and Sales of Chicago-Tokyo Service)

OST-98-3431 | February 4, 1998

Application for a Waiver of 14 CFR 201.5 (Chicago-Tokyo)

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As authorized by the Memorandum of Consultations signed by delegation of the United States and Japan on January 30, 1998, American intends to begin such service on or before May 1, 1998, using 238-seat MD-11 aircraft. In order to ensure a successful start-up of this new service, American needs to begin promoting and selling it now.

On February 10, 1998, in accordance with the Department's Notice, American will submit an application for a pendente lite Chicago-Tokyo exemption, as well as additional applications for U.S.-Japan authority, including a request for additional rights at Dallas/Ft. Worth. American already has a Chicago-Tokyo certificate application on file, submitted on February 21, 1996 (OST-96-1091).

Attachment: United Press Release of Jan 30th

Service List

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

American Airlines, Inc. (Chicago-Tokyo, Advance Advertising and Sales)

OST-98-3431 | February 5, 1998

Answer of Continental Airlines

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American has asked the Department to prejudge American's application and answers to it by granting American authority to start selling Chicago-Tokyo service before its own exemption application has even been filed, much less considered and granted. If the Department were to permit American to begin advertising and selling its services now, the Department would be depriving other interested parties of an effective opportunity to answer American's forthcoming Chicago-Tokyo applications.2 If the potential applicants for Japan authority seek only routes requiring new service which they actually plan to operate, the Department may well find that no further route case is required. In that event, the Department could award authority to all applicants immediately, and all of the applicants could commence sales activities immediately at the same time without jeopardizing the due process rights of other parties, as American would do.

Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2615

American Airlines, Inc. - (Waiver for Advance Advertising Chicago-Tokyo)

OST-98-3431 | February 6, 1998

Reply of American Airlines and Motion for Leave to File

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We are utterly puzzled by Continental's response, and can only conclude that Continental does not understand the Department's Notice of February 3, 1998. In that Notice, the Department explicitly stated that it will allocate seven weekly frequencies to each of the existing MOU carriers for services between the United States and Tokyo on a pendente lite basis.

If, on the other hand, Continental does understand the Department's Notice, there are two possible explanations for Continental's behavior. One is that Continental has no interest in proposing its own service to Japan on a timely basis, and simply wants to thwart the interest of the City of Chicago and American in their desire for immediate of new Japan rights the United States has finally achieved

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

Answer of the City of Chicago in Support

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American's new service will stimulate both intra-gateway and inter-gateway competition. American's new service at O'Hare will compete directly with that of Northwest, United and Japan Air Lines, each of which has served the market for years and now enjoys unlimited beyond rights, which American will not enjoy. United has signaled its intent to increase its Chicago-Tokyo service to double daily - a move Chicago warmly welcomes. But denying American the ability to promote and sell its Chicago-Tokyo tickets now will place American at a competitive disadvantage, as incumbent carriers may begin promoting and selling any expanded service immediately, without government approval. O'Hare passengers will now be able to travel to Tokyo on either of the airport's hub carriers.

Counsel: Winthrop Stimson, Kenneth Quinn, 202.775.9898

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