ost983814

OST-98-3814

Continental Airlines, Inc. (Certificate of Public Convenience, Houston/Newark-Buenos Aires)

OST-98-3814 | May 5, 1998

Application for a Certificate of Public Convenience and Necessity and Frequencies

HTML

Continental proposes to operate daily flights in each market with its own DC-10-30 aircraft already in its fleet or B-777 aircraft which are on order when sufficient frequencies are available to permit both Newark and Houston-Buenos Aires service. So long as only seven frequencies are available, Continental would offer daily Newark-Buenos Aires service. Continental believes adequate fuel supplies will be available for its proposed flights.

Awarding Continental authority between its Newark and Houston hubs and Buenos Aires, Argentina and seven frequencies to operate daily nonstop Newark-Buenos Aires service would serve the public interest. Although American, Aerolineas Argentinas and United now provide nonstop New York (JFK)-Buenos Aires service, none of those carriers operates a hub in the New York area. Thus Continental's nonstop Newark-Buenos Aires service would provide competition for local New York/Newark-Buenos Aires passengers and introduce an entirely new network into the competition for U.S.-Argentina traffic as soon as Continental is awarded seven frequencies to operate daily Newark-Buenos Aires service. As soon as additional frequencies become available, daily Continental service between Houston and Buenos Aires would provide comparable benefits. No nonstop Buenos Aires service is operated today from any point west of the Mississippi, and Continental's Houston hub would provide convenient access between points throughout the western United States and Buenos Aires.

Answers by June 2, 1998, Subpart Q

Service List

Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2500

Continental Airlines, Inc. - (Certificate of Public Convenience and Necessity Houston/Newark-Buenos Aires)

OST-98-3814 | June 2, 1998

Answer of the Dallas/Fort Worth International Airport

HTML

With Houston Continental's second choice after Newark for a new route to Buenos Aires, DFW-Buenos Aires service offered by American would also be a better choice for the Department in any gateway/carrier selection case. The Department in past cases has consistently favored the applicant proposing nonstop service at a new gateway over additional service at an existing U.S. gateway. Dallas/Fort Worth requests that the Department deny Continental's application for Houston/Newark-Buenos Aires certificate authority.

Counsel: Bagileo Silverberg, Michael Goldman, 202.944.3305

Answer of Delta Air Lines

Delta should be the Department's first choice for the award of any available U.S.-Argentina frequencies. Delta has pursued an aggressive strategy to become a major U.S. competitor to Latin America. Last year, Delta began service to Brazil, which was followed in April, 1998 by a host of new U.S. -Latin America services. On July 1, 1998, Delta will being flying between Atlanta and Lima, Peru.

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

Answer of United Air Lines

United urges that Continental's instant application be dismissed without prejudice to its being refiled at such time as additional U.S.-Argentina combination service frequencies may become available for allocation.

Attachment: United's Reply in OST-98-3764 filed May 12, 1998

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

Continental Airlines, Inc. (Certificate of Public Convenience, Houston/Newark-Buenos Aires)

OST-98-3814 | June 9, 1998

Motion for Leave to File of The City of Houston and The Greater Houston Partnership

Reply of The City of Houston and The Greater Houston Partnership

Until now, Houston has refrained from comment in this proceeding, pending the Department's ruling on the availability of new frequencies. In light of some of the answers filed in response to Continental's application, however, Houston feels compelled to provide the Department with a brief explanation of the basis for Houston's interest in obtaining Argentina service. In the event that the Department determines that allocable frequencies are available for new U.S. carrier service to Argentina, Continental and Houston stand ready to provide such service.

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

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)

HTML

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