ost983764

OST-98-3764

United Air Lines, Inc. (Route Integration, Chicago-Buenos Aires)

OST-98-3764 | April 20, 1998

Notice of Route Integration and Contingent Application for Grant of an Exemption

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The U.S.-Argentina market is fast growing and currently no carrier offers nonstop service between Chicago and Buenos Aires. United proposes to operate nonstop service between Chicago and Buenos Aires beginning September 9, 1998. United will use the frequencies now used for a second daily Miami-Buenos Aires flight to operate its proposed Chicago-Buenos Aires services. United will continue its daily New York-Buenos Aires flights along with a single daily Miami-Buenos Aires flight.

Exhibit UA-1: Current and Proposed Service in the US-Argentina Market
Exhibit UA-2: Map of Current and Proposed Service in the US-Argentina Market

Answers are due by May 5, 1998

Service List

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

United Air Lines, Inc. (Chicago-Buenos Aires)

OST-98-3764 | May 5, 1998

Answer of Continental Airlines

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Now that United is proposing to provide service on an entirely different U.S.-Argentina route than it proposed when it was awarded route authority and frequencies for U.S.-Argentina service, the Department should institute a comparative route proceeding to consider the far more important objective of authorizing a new entrant to serve the U.S.-Argentina market and award Continental authority to serve the U.S.-Argentina market and seven frequencies to operate daily nonstop Newark-Buenos Aires service.

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

United Air Lines, Inc. (Chicago-Buenos Aires, Route Integration)

OST-98-3764 | May 12, 1998

Reply of United Air Lines

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Continental is improperly seeking to use the occasion of United's introduction of new Chicago-Buenos Aires service pursuant to existing United authority to advertise Continental's desire for its own new authority to enter the U.S.-Argentina market. Continental attempts to seize seven frequencies from United in order to support its plans. Continental has, however, failed to grasp a fundamental fact. United is not seeking additional frequencies for its new Chicago-Buenos Aires service. Nor is United reducing any service in the New York/Miami-Buenos Aires markets to obtain frequencies to support its Chicago schedules.

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

United Air Lines, Inc. / Continental Airlines, Inc. / Delta Air Lines, Inc. (US-Buenos Aires)

OST-98-3764 | OST-98-3814 | OST-97-3218 | June 2, 1998

Contingent Motion of Delta Air Lines to Consolidate

Delta and Continental have both submitted certificate applications for U.S.-Argentina certificate authority, and United has requested to transfer a portion of its U.S.-Argentina frequencies for use on the Chicago-Buenos Aires route. In the event the Department determines that there are allocable frequencies available for U.S. carrier services to Argentina, Delta moves the Department to consolidate the above-captioned applications and to establish a carrier selection proceeding to determine the award of U.S. -Argentina frequencies. The requests of Delta, Continental and United are mutually exclusive and must receive contemporaneous consideration under the Ashbacker doctrine.

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

United Air Lines, Inc. / Continental Airlines, Inc. / Delta Air Lines, Inc. (US-Buenos Aires)

OST-98-3764 | OST-98-3814 | OST-97-3218 | June 11, 1998

Answer of United Air Lines

United urges the Department to deny Delta's contingent motion. There is no basis for a comparative carrier selection case in circumstances where the U.S./Argentina bilateral air services agreement does not provide any opportunity for expanding U.S. carrier services at the present time. There can be no finding of mutual exclusivity where there is no authority to award. The appropriate remedy in this instance is to deny Delta's motion and dismiss its application in Docket OST-98-3218 insofar as it requests U.S.-Argentina authority. Such dismissal should be without prejudice to Delta's resubmission of its application at such time as additional economic opportunities become available under the U.S./Argentina bilateral agreement.

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

United Air Lines, Inc. [Notice of Route Integration (Chicago-Buenos Aires)] / Continental Airlines, Inc. [Certificate and Frequencies (Houston/Newark-Buenos Aires)] / Delta Air Lines, Inc. [Certificate (Atlanta-Buenos Aires)]

Order 98-9-3 | OST-98-3764 | OST-98-3814 | OST-97-3218 | Issued September 3, 1998 | Served September 9, 1998

Order (Corrected Copy)

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By this order, we determine that United Air Lines, Inc. (United) holds all the economic authority needed to operate its proposed Chicago-Buenos Aires combination services and that no further award of authority or carrier selection procedures are necessary for United to operate this service.

We also will dismiss the requests of Continental Airlines, Lnc., and Delta Air Lines, Lnc., for certificate authority in the U.S.-Argentina market. While Delta's application includes requests for authority to serve various Atlanta/New York-South America and U.S.-Belize markets, this order deals with its specific request for AtlantalNew York-Buenos Aires authority only. The remaining portions of the application will be handled separately.

By: Charles Hunnicutt