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OST-98-3982

Atlantic Coast Airlines (Exemption from Subparts K and S) / The Community of Savannah, Georgia/Hilton Head, South Carolina (Non-Stop Chicago O'Hare Service)

OST-98-3982 | OST-98-3603 | June 24, 1998

Application of Atlantic Coast Airlines

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Atlantic Coast Airlines hereby requests it be exempted from Subparts K and S of Part 93 of the Federal Aviation Regulations to authorize it to conduct five operations at Chicago O'Hare International Airport in connection with nonstop Savannah/Hilton Head regional jet service, or in the alternative, to grant the application of the Communities of Savannah and Hilton Head in Docket OST-98-3606.

Answers are due July 9, 1998.

• Exhibit 1: Proposed Schedule
• Exhibit 2: Traffic, Revenue, and Expense Forecast First 12 Months of Service
• Exhibit 3: Markets Gaining Single Connecting Online Service
• Service List

Counsel: Bagileo Silverberg, Robert Silverberg, 202.944.3300

Atlantic Coast Airlines and The Community of Savannah, Georgia/Hilton Head, South Carolina - (Exemption Nonstop Service to Chicago O'Hare)

OST-98-3982 | OST-98-3603 | July 1, 1998

Response of the Community  of Savannah, Georgia/Hilton Head, South Carolina in Support

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As demonstrated by the applications, there is a significant market for Savannah/Hilton Head-O'Hare service. As the largest market without service, the Savannah/Hilton Head market will continue to grow, particularly with ACA's already successful Washington-Dulles service. The true winners from a Department action to grant this limited exemption would be the consumers and business people of the two-state region and those that obtain jobs as a result of the economic development stimulated by air service. The Administration has worked closely with communities to build economic growth. By granting this petition, the Department will generate true opportunities for economic growth in the two-state area. It is time for the Department to empower the Community of Savannah/Hilton Head and the two-state area with the ability to control its future economic growth. This can be accomplished by granting it or ACA an exemption from the high density slot regulations to allow four nonstop Savannah/Hilton Head-Chicago O'Hare roundtrips.

Counsel: Ungaretti Harris, Michelle Faust for Savannah Airport Commission

Atlantic Coast Airlines / The Community of Savannah, Georgia/Hilton Head, South Carolina - (Exemption to Permit Non-stop Service to Chicago O'Hare Airport)

OST-98-3982 | OST-98-3603 | July 9, 1998

Joint Answer of American Airlines, Inc. and American Eagle Airlines, Inc.

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The United Express and Savannah/Hilton Head applications should be denied. The Department should assign four of the remaining exemption slots at O'Hare to American Eagle, as requested in American Eagle's pending objections to Order 98-421. The Department should not allow United Express to masquerade as a "new entrant," nor should the Department award any slots to United Express to reinstate service to a well-served community. United Express has itself questioned the legality of awarding slots to a community rather than to the operating carrier.

Counsel: Carl Nelson, Jr., 202.496.5647

Contingent Answer of Exec Express II, Inc. d/b/a Aspen Mountain Air

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AMA urges that to the extent Atlantic Coast's application in Docket OST-98-3982 is considered contemporaneously with AMA's application in Docket OST-98-3671, Atlantic Coast's application should be denied.

Counsel: Boros Garofalo, Aaron Goerlich, 202.822.9070

Atlantic Coast Airlines / The Community of Savannah, Georgia/Hilton Head, South Carolina - (Exemption to Allow Non-Stop Service to Chicago O'Hare)

OST-98-3982 | OST-98-3603 | July 20, 1998

Motion for Leave to File and Consolidated Reply of Atlantic Coast Airlines

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While it is perfectly appropriate for Eagle to file its answer jointly with it parent, American Airlines, there is no regulatory or corporate reason to repeatedly refer to ACA as United Express. ACA is not a subsidiary of United Airlines. ACA is a publicly-traded company which is not owned, in whole or in part, by United Airlines. The financial results of ACA are not consolidated with those of United, as is the case with American and Eagle. The management of ACA is independent of that of United and is not under the control of United.

Attachment: Service Levels are High at High-Density Airport City-Pair Markets

Counsel: Bagileo Silverberg, Robert Silverberg, 202.944.3300

Atlantic Coast Airlines / The Community of Savannah, Georgia/Hilton Head, South Carolina (High Density Rule)

OST-98-3982 | OST-98-3603 | July 27, 1998

Motion of Savannah/Hilton Head to File Late Reply and Motion to File Unauthorized Reply

Motion of Savannah/Hilton Head for Leave to File and Consolidated Reply

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By increasing flight options to Savannah/Hilton Head, the Department will be allowing O'Hare service to the largest market without direct service which also happens to be one of the fastest growing communities in the country -- Savannah/Hilton Head. Allowing this service in an expedited manner is in the public interest.

Counsel:  Ungaretti Harris, Edward Faberman

Aspen Mountain Air, Inc.

OST-98-3982 OST-98-3603	September 14, 1998	Ex Parte Letter from Charles Hunnicutt to Senator John McCain	Sioux City-O'Hare Slot Exemption
		Re: Letter from Senator John McCain to Secretary Rodney Slater
		Attachment: Letter in Support of Siouxland Chamber of Commerce

Simmons Airlines, Inc. d/b/a American Eagle / The Community of Savannah, GA/Hilton Head, SC / Exec Express II, Inc. d/b/a Aspen Mountain Air / Atlantic Coast Airlines

Order 98-9-24 OST-97-2985 OST-98-3603 OST-98-3671 OST-98-3982

Issued and Served September 24, 1998

Order Granting in Part Petition for Reconsideration and Deferring Applications for Slot Exemptions at Chicago O'Hare Airport

Exemptions from CFR Part 93

By this order the Department is amending its action in Order 98-4-21 by increasing from 16 to 18 the number of slot exemptions granted to Simmons Airlines, dlbla American Eagle (American Eagle), at Chicago O'Hare Airport as a means of facilitating the provision of nonstop regional jet services between O'Hare and Duluth, MN, Fayetteville, AR, Montgomery, AL, and Shreveport, LA. Specifically, consistent with the action we took in Order 98-4-21, we are permitting American Eagle to reassign to those markets 18 of the slots it is currently using to perform EAS operations between O'Hare and Bloomington, IL, Champaign, IL, and La Crosse, WI, and, pursuant to our authority under 49 U.S.C. section 41714(a), we will replenish those slots with an equal number of exemptions to assure the continued provision of the Essential Air Service (EAS) operations. Grant of the 18 exemptions is conditioned on their being used solely to provide the specified EAS operations and on American Eagle's implementation of an equal number of scheduled nonstop frequencies with regional jet aircraft between O'Hare and the cities designated above. We will authorize the exemptions for an indefinite period and will thus discontinue the interim (sixmonth) limitation previously imposed on the exemptions in Order 98-4-21. We are deferring action on pending applications for O'Hare slot exemptions by Exec Express II, d/b/a Aspen Mountain Air; the Community of Savannah/Hilton Head; and Atlantic Coast Airlines.

By: Charles Hunnicutt

Atlantic Coast Airlines, Inc.

OST-98-3982

January 28, 1999

Motion of Atlantic Coast Airlines for a Decision

High Density Rule - Chicago O'Hare

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ACA makes this motion at this time because it has a narrow window of opportunity to schedule Savannah/Hilton Head flights commencing in the Spring or early summer of 1999 with one of the three regional jet aircraft that are scheduled to be delivered to ACA during this time period. As the DOT can appreciate, ACA must make immediate and efficient use of each of its newly delivered regional jet aircraft and cannot wait indefinitely to deploy its new aircraft because of the uncertainty surrounding the timing of he DOT's decision on the merits of ACA's Savannah/Hilton Heads request.

Whatever the Department's reluctance to address ACA's application has been in the past, it is the time to do so now. A total of five slots are available for award and the communities of Savannah Hilton Head, by and through their business and political leaders, have strongly supported the application of ACA. The DOT should not shirk its responsibility to further the interest of the traveling public nor allow to lay dormant the valuable opportunities represented by the five unused O'Hare slots. Accordingly, ACA moves the Department to promptly act on, and approve, ACA's request to serve the Savannah/Hilton Head market. If action is taken swiftly, ACA will be able to schedule one of its Springi Summer regional jet deliveries to serve the route. With ACA's other route commitments at its growing hub at Dulles International Airport, it may not be able to again address the Savannah/Hilton Head market until some time in the future, and certainly long after Savannah/ Hilton Head would prefer to receive service from ACA.

Counsel:  Bagileo Silverberg, Robert Silverberg, 202-944-3300

Atlantic Coast Airlines, Inc.

OST-98-3982

February 8, 1999

Answer of American Eagle Airlines to Motion of Atlantic Coast for a Decision

High Density Rule - Chicago O'Hare

By contrast, the Chicago-Savannah/Hilton Head market presently enjoys far better connections to Chicago, and one of the lowest average fares in its mileage block. In addition, Savannah is already well-connected to United's worldwide network, with regional jet service by United Express (Atlantic Coast) to United's Washington (Dulles) hub.  American's network at Chicago (American Airlines and American Eagle) is at a significant slot disadvantage compared to United's network at Chicago (United Air Lines and its United Express affiliates, including Air Wisconsin, Great Lakes Airlines, Atlantic Coast, and Trans States Airlines). United's network has a total of 1,049 O'Hare slots, while American's has 921 (including Reno Air's five exemption slots), resulting in a United network advantage of 128 daily slots. In the interest of fostering two-carrier hub competition at O'Hare, the Department should not grant any additional exemption slots to United affiliated carriers until American and American Eagle have achieved slot parity.

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

Establishment of Slot Exemptions Proceedings 

By:  Bradley Mims

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