OST-98-3901
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OST-98-3901
Northwest Airlines, Inc. and Air China International Corp. (Exemptions and Statements of Authorization)
OST-98-3901 | Undocketed | June 2, 1998
Joint Application for an Exemption and Statements of Authorization
On May 12, 1998, Northwest and Air China entered into a Commercial Cooperation Agreement to, among other things, offer comprehensive U.S.-China code-share services. Pursuant to the agreement, Air China plans to extend its online service to points in the United States by placing its code on Northwest transpacific flights and on Northwest domestic service between U.S. gateways and between U.S. gateways and interior U.S. points. Northwest, in turn, plans to expand its U.S.-China presence by placing its code on Air China's transpacific flights and domestic flights between Chinese gateways. As the U.S.-China bilateral relationship expands to allow code-sharing beyond those limited points currently available, the parties intend to continue expanding their code-sharing relationship.
Exhibit A: Flight Sectors Behind US Gateways
Answers are due by June 9, 1998 - Shortened Answer Period
Counsel: Northwest, Megan Rae Poldy / Air China, Zhang Lan
Northwest Airlines, Inc. and Air China International Corporation
OST-98-3901 | June 10, 1998
Re: Application for an Exemption and Statements of Authorization
Northwest has polled various air carriers included in the service list for the application. In light of objections that have been made, Northwest hereby withdraws its request for a shortened answer period. Requests, though, that the Department expedite processing of the application immediately after the answer period expires.
Counsel: Northwest, Megan Rae Poldy
Northwest Airlines, Inc. and Air China International Corp. (US-China Codesharing)
OST-98-3901 | Undocketed | June 17, 1998
Delta urges the Department to pursue with China an expansion of the number of code-share only points available for service in the United States,so that the requests of all three U.S.-Chinese carrier partnerships can be accommodated. Such an approach would be consistent with the Department's successful efforts last year to secure additional code-share only points from the Brazilian authorities, thereby enabling Delta/Transbrasil, United/Varig and American/TAM to implement all of their proposed U.S.-Brazil services without the need to resort to carrier selection proceedings.
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
Northwest Airlines, Inc. and Air China International Corporation (Codeshare, US-China)
OST-98-3901 | Undocketed | June 22, 1998
Northwest agrees with the statement in Delta's Answer that the Department should pursue with China an expansion of the service opportunities available to U.S. carriers. As discussed below, however, Delta's Answer provides no proper basis for the Department to delay awarding the beyond U.S. gateway authority that Northwest and Air China have requested.
Counsel: Northwest, Megan Rae Poldy, 202-842-3193
Northwest Airlines, Inc. and Air China International Corp.
| OST-98-3901 Undocketed |
Filed June 2, 1998 Approved October 16, 1998 |
Notice of Action | China - U.S. Codeshare |
We found that grant of this authority is consistent with the public interest. The Memorandum of Understanding, initialed December 23, 1995, between the United States and the People's Republic of China provides that designated Chinese airlines may code share between named gateway points and a total of ten additional points in the United States to be selected by the Government of China, as well as between named gateway points. It also provides that the People's Republic of China may name additional gateway points. On August 4, 1998, we were notified of the Chinese Government's selection of code-share only points as well as three additional U. S. gateway cities for Chinese carrier services. All of the points requested by the Northwest/Air China application are encompassed by either the code-share only points selected or gateway points specified under the aviation agreement. In light of the Chinese Government's selections, we found no basis to withhold approval of the Northwest/Air China application as proposed by Delta. At the same time, in taking our action we were cognizant that the points selected by the Chinese Government were not reserved exclusively for the Northwest/Air China code share, but in fact could be used by other Chinese and U.S. code-share partners.
Applicant Reps.: Megan Poldy, 202.842.3193 and Linda Senese, DOT, 202.366.2367
By: Charles Hunnicutt
Northwest Airlines, Inc. and Air China International Corp.
| OST-98-3901 Undocketed |
October 23, 1998 | Petition of Northwest Airlines, Inc. for Review of Staff Action | Exclusivity Provision | HTML |
| Service List |
On October 16, 1998, Department staff attached a condition to its approval of this application that limits the enforcement of an already limited exclusivity provision. The staff's action will expose the parties to free-riders who have not made the investments that underlie this arrangement. The staff's action will harm the public interest by discouraging investment in improved air service. Moreover, because the exclusivity provision as drafted by the parties is extremely narrow, there is no chance that it would produce any harm to competitors or in any way restrict access by U.S. carriers to the U.S.-China market.
Counsel: Megan Rae Poldy for Northwest, 202.842.3193
Northwest Airlines, Inc. and Air China International Corp.
| OST-98-3901 Undocketed |
November 5, 1998 | Petition of United Air Lines for Reconsideration | US-China Reciprocal Codesharing | HTML |
Like Northwest, United has requested review and reconsideration of the condition the Department imposed on the exclusivity clause included in its code-share agreement with ANA. Assuming that the condition imposed on Northwest/Air China is removed, it must follow fortiori that the condition imposed on United/ANA be removed. The U.S.-Japan market is substantially more competitive than the U.S.-China market. If there is no need to impose conditions on the exclusivity clause negotiated between Northwest and Air China, there is certainly no need to impose an even more restrictive limitation on the exclusivity clause negotiated between United and ANA. And, if the condition on the United/ANA exclusivity clause is removed, United would have no objection to the relief requested by Northwest. On the other hand, if the Department declines to reconsider the condition it imposed on the United/ANA agreement, then the narrower condition it imposed on Northwest/Air China is inconsistent and must be reconsidered and conformed to the broader condition imposed on the United/ANA agreement. United discusses below that inconsistency and its apparently unintended impact on United.
Counsel: United and Kirkland Ellis, Bruce Rabinovitz, 202-879-5116, bruce_rabinovitz@kirkland.com
Proposed Policy Shift on Approving Code-Share Agreements Containing "Exclusivity" Provisions
We understand that the Department is considering a significant policy shift in this area - one that could effectively prohibit "exclusivity" in code-sharing arrangements on an across-the-board basis. We are concerned that such an approach would be inconsistent not only with established antitrust principles dealing with nonprice vertical restraints, but also would undermine fundamental competition policies, DOT's own international aviation policy, and the ability of international air carriers to garner important pro-consumer efficiencies.
Because the policy proposals that appear to be pending at DOT would implicate issues fundamental to the concerns of the Department of Justice, as well as the State Department, and because these issues have already been analyzed by those Departments in other contexts, we respectfully urge that each of you coordinate together any shift in policy or practice in this area. To assist in your consideration, we attach a paper describing in general terms the substantive and procedural issues, and legal principles, involved. We believe these should be carefully considered by all of the affected Departments before any action is taken to revise DOT's practice of approving exclusivity in the great majority of code-share applications.
Counsels: Megan Rae Poldy for Northwest, and Kirkland & Ellis, Jeffrey Manley for United
Northwest Airlines, Inc. and Air China International Corp.
| OST-98-3901 Undocketed |
October 15, 1999 | Application for Renewal of Exemption | U.S.- China |
| Service List |
Hereby applies for renewal of an exemption from 49 U.S.C. § 41301 to engage in the scheduled foreign air transportation of persons, property, and mail between Beijing, Shanghai, and Guangzhou, on the one hand, and Anchorage, Atlanta, Boston, Dallas/Ft. Worth, Detroit, Fairbanks, Houston, Las Vegas, Miami, Minneapolis/St. Paul, Philadelphia, Phoenix, Seattle, and Washington, D.C., on the other, under a code-share arrangement with Northwest Airlines, Inc. By Notice Of Action Taken dated October 16, 1998, the Department granted to Air China the above exemption authority for a one-year period, and simultaneously granted Statements of Authorization of indefinite duration to Northwest and Air China to display each other's designator codes on their respective flights operated in the U.S.-China market.
Counsel: Northwest Airlines, Megan Rae Poldy, 202.842.3193 and Air China, Nie Ying
| OST-98-3901 Undocketed |
Filed October 15, 1999 Issued September 8, 2000 |
Notice of Action Taken | U.S.- China |
Renew exemption to conduct scheduled foreign air transportation of persons, property and mail between Beijing/Shanghai/Guangzhou and Anchorage/Atlanta/Boston/Dallas-Ft. Worth/Detroit/ Fairbanks/Houston/Las Vegas/Miami/Minneapolis-St. Paul/Philadelphia/Phoenix/Seattle/Washington, D.C., under a code-share arrangement with Northwest Airlines, Inc.
By: Paul Gretch
Northwest Airlines, Inc. and Air China International Corp.
| OST-98-3901 OST-99-5443 OST-00-6806 OST-00-6819 OST-00-6909 OST-01-10172 OST-01-10603 |
September 10, 2001 | Joint Application of Northwest and Air China for Renewal and Consolidation of Exemptions and Statements of Authorization | U.S.- People's Republic of China Codeshare - Consolidation of Dockets |
| Service List |
Northwest requests that the Department renew and consolidate three exemptions from 49 U.S.C. § 41101, which permit Northwest to engage in scheduled foreign air transportation as specified below. The Department granted these exemptions in three separate dockets, authorizing:
Northwest also requests that the Department consolidate two separate statements of authorization granted to Northwest under 14 C.F.R. § 212.9, which permit Northwest to display the "CA" code on Northwest flights, as specified below. The Department granted these authorizations by:
In addition, Northwest requests that the Department integrate the above exemption authority with Northwest's existing certificate and exemption authority, to the extent consistent with applicable bilateral air transport agreements.. Air China requests that the Department consolidate and renew the exemption granted to Air China from 49 U.S.C. § 41301, which permits Air China to engage in scheduled foreign air transportation of persons, property, and mail between Beijing, Shanghai, and Guangzhou on the one hand and Anchorage, Atlanta, Boston, Dallas-Fort Worth, Detroit. Fairbanks, Houston, Las Vegas, Miami, Minneapolis-St. Paul, Philadelphia, Phoenix. Seattle, and Washington, D.C. on the other hand, under a code-share arrangement with Northwest. (NOAT, OST-98-3901 (issued Sept. 8, 2000)). This exemption authority expires on September 8, 2001. By this Application, Air China respectfully requests that the Department renew this exemption for a two-year period and consolidate it with the authorities specified in this docket.
Air China also requests that the Department consolidate five separate statements of authorization granted to Air China under 14 C.F.R. § 212.9, which permit Air China to display the "NW" code on the Air China flights, as specified below. The Department granted this code- share authority in five separate dockets by:
Counsel: Northwest, Megan Rae Rosia, 202.842.3193
Northwest Airlines, Inc. and Air China International Corp.
| OST-98-3901 OST-99-5443 OST-00-6806 OST-00-6819 OST-00-6909 OST-01-10603 OST-02-11808 |
April 2, 2003 | Re: Notice of Termination of Codeshare Agreement | US-China Codeshare |
Pursuant to condition (2) or (b) of the Department's statements of authorization granted to Northwest Airlines, Inc. and Air China International Corp. in the above-referenced dockets, Northwest hereby provides notice that the codeshare agreement between Northwest and Air China is being terminated and all codesharing and related commercial cooperation under such agreement will be discontinued as of June 30, 2003. In addition, Northwest and Air China withdraw their joint application currently pending in Docket OST-01-10603.
Counsel: Northwest, Megan Rae Rosia, 202-842-3193, megan.rosia@nwa.com
June 27, 2003
OST-98-3901
OST-99-5443
OST-00-6806
OST-00-6819
OST-00-6909
OST-01-10172
OST-01-10603
OST-02-11808
Re: Notice of Continuation of Codesharing with Air China
On April 2, 2003, Northwest Airlines, Inc. notified the Department in the abovereferenced dockets that Northwest and Air China International Corp. intended to terminate all codesharing effective June 30, 2003. This letter is to advise that Northwest and Air China intend to continue codesharing for purposes of carriage of mail only. The carriers therefore do not withdraw their application in Docket OST-01-10603 to renew and consolidate, and ask the Department to otherwise maintain their existing authority in the above-referenced dockets to enable the carriers to continue to codeshare for purposes of carriage of mail.
Counsel: Northwest, Megan Rae Rosia, 202-842-3193
July 18, 2003
OST-01-10603 - US-China Codeshare
OST-98-3901 - Exemptions and Statements of Authorization - US-China Codeshare
OST-99-5443 - US-China
OST-00-6806 - US-China
OST-00-6819 - US-China Codshare
OST-00-6909 - US-China Codeshare
OST-01-10172 - 2001 China Codeshare Points
OST-02-11808 - 2002 China Codeshare Points
Amendment to Joint Application
Joint Applicants request consolidation in Docket OST-01-10603 of two statements of authorization granted to Air China under 14 C.F.R. § 212.9 in separate dockets, which permit Air China to display the “NW” code on Air China flights: (i) between San Francisco and Los Angeles, on the one hand, and Beijing and Shanghai on the other hand (NOAT, OST-98-3901, issued Oct. 16, 1998); and (ii) between Chicago and New York, on the one hand, and Beijing and Shanghai on the other hand (mail only) (NOAT, OST-99-5443, issued March 6, 2001). With respect to the remaining exemptions and statements of authorization issued to Northwest and Air China in Dockets OST-98-3901, 99-5443, 00-6806, 00-6819, 00-6909, 01-10172 and 02-11808, Joint Applicants do not object to the Department’s dismissal upon approval of this consolidation request.
Counsel: Megan Rae Rosia for Northwest / Zhu Yongsheng for Air China
OST-01-10603 - US-China Codeshare
OST-98-3901 - Exemptions and Statements of Authorization - US-China Codeshare
OST-99-5443 - US-China
OST-00-6806 - US-China
OST-00-6819 - US-China Codshare
OST-00-6909 - US-China Codeshare
OST-01-10172 - 2001 China Codeshare Points
OST-02-11808 - 2002 China Codeshare Points
Filed July 18, 2003 | Issued October 6, 2003
Consolidate into Docket OST-01-10603 the statements of authorization granted to Air China in Docket OST-98-3901, issued October 16, 1998 and in Docket OST-99-5443, issued March 6, 2001 so as to permit Air China to display the “NW” code on Air China flights, for purposes of carriage of mail only: (i) between San Francisco and Los Angeles, on the one hand, and Beijing and Shanghai on the other hand; and between Chicago and New York, on the one hand, and Beijing and Shanghai, on the other hand.
Dismiss, upon approval of consolidation request, the remaining exemptions and statements of authorization issued to Northwest and Air China in Dockets OST-98-3901, 99-5443, 00-6806, 00-6819, 00-6909, 01-10172, and 02-11808.
By: Paul Gretch
Home
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