OST-98-4328
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OST-98-4328
American Airlines, Inc. (Exemption, Chicago-Moscow)
OST-98-4328 | August 14, 1998
American proposes to institute nonstop Chicago-Moscow service on June 1, 1999, using 204-seat B767-300ER aircraft. So that American may complete preparations for opening a station in Moscow, and to facilitate advance marketing and sales, American requests expedited action on this application.
Answers are due August 31, 1998
Re: Application of American, Proposed Start-Up Date is
June 1, 1999
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
American Airlines, Inc. (Chicago-Moscow)
OST-98-4328 | August 31, 1998
Should the Department grant American exemption authority to operate Chicago-Moscow service, there is no basis for the Department to take any of Delta's frequencies to fund American's service in light of the fact Delta has been prevented from operating its frequencies by the RMOT and was granted a waiver by the Department from the dormancy provisions.
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
United takes no position on American's application so long as any frequency award made to American by the Department in connection with grant of an exemption authorizing Chicago-Moscow service does not affect the seven frequencies United currently holds. Contrary to American's statement, United's seven frequencies are not dormant.
Counsel: United and Kirkland Ellis, Jeffrey Manley, 202-879-5161
American Airlines, Inc. (Exemption, Chicago-Moscow)
OST-98-4328 | September 10, 1998
Tthe Department should promptly grant American an exemption, and award 7 weekly combination frequencies, for service between Chicago and Moscow, which American plans to commence on June 1, 1999.
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
| OST-98-4328 | Filed September 14, 1998 Action Taken September 18, 1998 |
Notice of Action Taken |
Chicago, Illinois, and Moscow, Russia |
Scheduled foreign air transportation of persons, property and mail between Chicago, Illinois, and Moscow, Russia.
Applicant Rep.: Carl Nelson, Jr., 202.496.5647
| OST-98-4328 | February 2, 1999 | Motion of American Airlines to Amend Exemption
and Frequency Allocation |
Chicago-Moscow |  HTML |
American Airlines, Inc. hereby moves to amend its exemption and allocation of seven weekly U.S.-Russia combination frequencies for Chicago-Moscow service, granted by Notice of Action Taken in this docket on September 18, 1998, so as to enable American to serve Moscow from U.S. points, and to use the frequencies for third-country codesharing to Moscow and St. Petersburg via Helsinki, Finland, under an arrangement with Finnair Oy.
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
American Airlines, Inc. / Continental Airlines, Inc.
| OST-98-4328 OST-99-5049 |
Febraury 10, 1999 | Consolidated Answer of Delta Air Lines |
Chicago-Moscow US-Russia Codesharing w/ Air France |
Delta currently operates third-country code-share service to Russia, and, as the Department is well aware, Delta has been seeking to expand its third-country codeshare offerings to Russia. Those expansion efforts have been blocked, until recently, by the Federal Aviation Authority of Russia's refusal to authorize additional third-country code-share operations. Delta's existing and planned future services that will be announced in accordance with the Department's scheduling notice for the new U.S.-Russia third-country code-share opportunities are entitled to contemporaneous consideration with other applications. Delta will demonstrate that its U.S.-Russia third-country code-share service proposal will maximize service and competitive benefits and should be granted in favor of other carrier applications. Accordingly, Delta opposes the applications of Continental and American to the extent that an award to either or both carriers would foreclose the full grant of Delta's application.
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
American Airlines, Inc. / American Airlines, Inc. and Finnair Oyj
| OST-98-4328 OST-98-4522 |
February 11, 1999 | Consolidated Answer of Continental Airlines |
Chicago-Moscow US-Riga; Taillin; St. Petersburg via Helsinki Codeshare |
HTML |
Continental and Air France would introduce an entirely new network competing for traffic between the U.S. and Russia and advance the Department's goal of promoting meaningful new competition between the U.S. and Russia. Online service through Continental's hubs at Newark and Houston, on the one hand, and Russia, on the other hand, will result in more service options, new network competition throughout the United States, and strong competition with U.S. and foreign airlines and alliances offering U.S.-Russia service. Because of the public benefits from Continental's proposal, Continental should receive at least one of the newly available U.S.-Russia code-share opportunities, and American's application should be denied to the extent it could preclude the award of authority to Continental.
Counsel: Crowell Moring, Bruce Keiner, 202-624-2615
| OST-98-4328 OST-98-4522 Undocketed |
February 11, 1999 | Consolidated Answer of United Air Lines |
Chicago-Moscow US-Riga; Taillin; St. Petersburg via Helsinki Codeshare |
HTML |
| Attachment 1: Northwest's System Timetable |
American is seeking immediate authority to offer code-share services to Russia via Helsinki in lieu of the direct Chicago-Moscow service it has so often proposed but never operated. American would, therefore, require one of the three third-country code-share opportunities available immediately to U. S. carriers. United opposes the grant of American's request to the extent it would prejudice United's ability to exercise its existing third-country codeshare authority with Lufthansa. If the Department determines that carrier selection is necessary involving incumbent third-country code shares as well as those involving new arrangements, United's service with Lufthansa is far superior to that offered by American and Finnair. United and Lufthansa offer nonstop-to-nonstop connections at Frankfurt to Russia from eleven U.S. gateways, as opposed to the single U. S. gateway that would be served by American/Finnair. Moreover, United would operate nonstop connections in its own equipment between Frankfurt and its hubs at Chicago O'Hare and Washington Dulles, whereas all of the U. S.-Russia flying under the American/Finnair code share would be on services operated by Finnair. In addition, under the new U.S./Russia agreement, United and Lufthansa will expand their services to include other eligible gateways in Russia such as St. Petersburg and Nizhnyi Novgorod to the extent consistent with the new agreement.
Counsel: United and Kirkland Ellis, Jeffrey Manley, 202-879-5161, jeffrey_manley@kirkland.com
American Airlines, Inc. / American Airlines, Inc. and Finnair Oyj
| OST-98-4328 OST-98-4522 Undocketed |
February 17, 1999 | Supplemental Consolidated Answer of United Air Lines
and Motion for Leave to File |
Chicago-Moscow; US-Riga/Tallin/St. Petersburg |
In its application, United referred to the current code-share services to Moscow operated by Northwest and KLM and attached a schedule showing 10 weekly flights. United has been advised by Northwest that, in light of the provisions of the new U.S./Russia MOU which limit such code-share services to no more than 7 flights per week in any city pair, Northwest has amended its code-share schedule accordingly. Thus, United now understands that in Northwest's current schedule that carrier is holding out only 7 weekly code-share flights between Amsterdam and Moscow. In these circumstances, given the schedule changes implemented by both Northwest and Delta (see footnote 4 of United's Consolidated Answer), it appears that neither carrier intends to seek the right to continue operations in excess of those allowed under the new U. S./Russia MOU. There may be no need, therefore, to address the issue raised in section 4 of United's Consolidated Answer since that issue has apparently already been addressed and resolved by Northwest and Delta.
Counsel: United and Kirkland Ellis, Jeffrey Manley, 202-879-5161, jeffrey_manley@kirkland.com
Alaska Airlines, Inc.
| OST-99-5286 | March 29, 1999 | Response of Alaska
Airlines |
Russian Far East Codeshare with Reeve Aleutian |
In its notice of March 18, 1999 in this docket, the Department appears to be taking the position that Alaska's single frequency should now be open to reallocation. Alaska submits that it should be permitted to retain that frequency not only because the same reasons that lead to the issuance of a waiver last year continue to apply fully, but also because Alaska has now reached an agreement with Reeve, and expects to begin codesharing operations with that carrier soon. These operations will fully utilize the single frequency that Alaska currently has. Alaska therefore submits that withdrawal of its only frequency and complete removal of its presence from the market in inappropriate. Alaska would also note that the demands for frequencies between the United States and the Russia of which it is aware could readily be accommodated without removing Alaska's only remaining foothold in this market.
Alaska and Reeve reached an understanding concerning codesharing services between Anchorage, on the one hand, and Petropavlosk-Kamchatski and Yuzhno-Sakhalinsk on the other hand within the past few days. The parties intend to implement this understanding as soon as possible after the necessary notifications are given to the various CRS's. The markets to be served on a codeshare basis are those between Anchorage, Alaska on the one hand, and Petropavlovsk-Kamchatski and Yuzhno-Sakhalinsk, Russia on the other hand. This will permit Alaska to resume service between the various points on its system and the Russian Far East. Alaska anticipates codesharing with Reeve on both of the two frequencies that it currently operates in these markets.
Counsel: Alaska and Squire Sanders, Marshall Sinick, 202-626-6651
American Airlines, Inc.
| OST-99-5454 OST-98-4522 OST-98-4328 |
March 29, 1999 | Application of American
Airlines |
US-Russia via Helsinki Codesharing with Finnair; US-St. Petersburg Codesharing with Finnair; Chicago-Mosco |
| Service List |
American Airlines, Inc., pursuant to the Department's Notice of March 18, 1999 (New U.S.-Russia Opportunities), hereby applies for a third-country codesharing designation and an allocation of seven weekly combination service frequencies in order to serve between U.S. points, on the one hand, and St. Petersburg and Moscow, Russia, on the other, under a codesharing arrangement with Finnair Oyj. In addition, American seeks underlying route authority to serve St. Petersburg (OST-98-4522), and amendment of its Chicago-Moscow exemption granted by Notice of Action Taken, September 18, 1998 in OST-98-4328) so as to enable American to serve Moscow from U.S. points. American and Finnair will operate daily service to each Russian point, thus requiring the allocation of seven weekly frequencies, since codesharing services count as one half of a frequency for a U.S. carrier placing its code on flights in the U.S.-Russian market operated by another airline. The American/Finnair service to Russia will operate on a year-round basis.
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
Continental Airlines, Inc.
| OST-99-5286 | March 29, 1999 |  Amendment to Application
of Continental Airlines |
Houston/Newark/Miami-Moscow/St. Petersburg Codeshare with Air France |
| Service List |
Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2500
Delta Air Lines, Inc.
| OST-99-5286 | March 29, 1999 | Application of Delta
Air Lines |
Moscow/St. Petersburg Codeshare with Air France |
| Service List |
Delta currently operates fourteen weekly codeshare flights to Moscow and three weekly codeshare flights to St. Petersburg with Swissair. Since the MOC limits the number of codeshare flights in any city-pair to no more than seven per week, Delta will be required to cut its current Moscow service in half, a result contrary to Delta’s longstanding objectives to increase U.S.-Russia codeshare service. The Department is well aware of Delta’s plans to increase third-country codeshare service to Russia. Indeed, the Department allocated to Delta additional frequencies to implement expanded service, but Delta’s plans were blocked by Russia’s refusal to allow Delta to conduct additional codeshare flights. In light of Delta’s inability to operate its planned service increases due to the actions of the Russian Federation, the Department granted Delta waivers of the dormancy requirements applicable to Delta’s frequencies. The new rights under the MOC now give the Department the important opportunity to allow Delta to achieve its long planned objective to expand its U.S.-Russia service. An award to Delta of a year-2000 designation would enable it to preserve existing Moscow service levels that Delta has provided in the marketplace for over two years. As the Department has stated, "it is in the public interest . . . to facilitate continuation of the existing incumbent carrier services in the market." Order 94-9-1 at 6. It would also allow Delta to increase service to St. Petersburg from three weekly flights to seven weekly flights.
Delta currently operates fourteen weekly flights between Frankfurt and Mumbai (seven in each direction). Delta has determined that it could operate to Mumbai over a more advantageous routing via Russia airspace, without overflying Afghanistan, and desires to do so immediately. Delta submits that there are at least nineteen weekly overflights that should be subject to allocation in this proceeding, not five as suggested by the Department’s Notice. United terminated all direct services to India and is not using any of its fourteen weekly frequencies. United’s only service to India involves a codeshare operation in conjunction with flights operated by Lufthansa.
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
Federal Express Corporation
| OST-99-5286 | March 29, 1999 | Application of Federal
Express for Allocation of Overflight Frequencies |
US-Russia Overflight Frequencies |
| Service List |
Federal Express Corporation hereby applies, in response to the Notice of the Department of Transportation (the Department), served March 18, 1999 in the captioned proceeding, for grant of twelve (12) one-way Russia overflight frequencies so as to authorize Federal Express to operate six (6) scheduled all-cargo flights a week in each direction between Paris, France, and Subic Bay, Philippines, over the Tashkent overflight routing. Federal Express requests that the foregoing frequency allocation be granted for a period of two years. Federal Express urges the Department to establish a further opportunity for competing applicants for any ``over-subscribed" opportunity to submit additional factual evidence and carrier-selection arguments in support of their applications.
Counsel: Federal Express and Shaw Pittman, Nathaniel Breed, 202-663-8078
Kitty Hawk International, Inc.
| OST-99-5286 OST-99-5456 |
March 29, 1999 | Application of Kitty
Hawk for an Exemption |
US-Moscow/St. Petersburg |
| Service List |
Engage in scheduled foreign air transportation of property and mail between anile point or points in the United States vi a intermediate points to Moscow and St Petersburg, Russia. KHI seeks the right to conduct three weekly round trips scheduled all-cargo flights on the requested route KHI also requests authority integrate this exemption authority with all services KHI is otherwise authorized.
Counsel: Bagileo Silverberg, Robert Silverberg, 202-944-3300
| OST-99-5286 OST-98-4522 OST-98-4328 |
March 30, 1999 | Corrected Cover Page |
US-Russia via Helsinki Codeshare with Finnair; Chicago-Moscow |
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
| OST-99-5286 OST-98-4522 OST-98-4328 |
April 5, 1999 | Answer of American
Airlines |
New US-Russia Opportunites / Codeshare with Finnair / Chicago-Moscow |
American presently has no on-line access to the Russian market. By conducting codesharing operations via Helsinki, American and Finnair will offer a highly convenient service, and with virtually no geographic circuity, between New York (JFK) and the two principal cities of Russia, Moscow and St. Petersburg. The American/Finnair arrangement will also serve a number of major U.S. cities which have nonstop service on American or American Eagle to New York (JFK), as shown in American's application of March 29, 1999. Continental and Delta are in the untenable position of seeking parallel codesharing designations with the same foreign partner, Air France. It is unthinkable that the Department would allow Air France to take up both of the two remaining U.S.-Russia third-country codeshare opportunities, particularly given the absence of an open skies agreement between the U.S. and France. The Department should not permit double-dipping by Air France, and thereby deprive American and Finnair of their only access to the U.S.-Russia codeshare market.
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
| OST-99-5286 OST-98-4522 OST-98-4328 |
April 12, 1999 | Reply
of American Airlines |
US-Russia Opportunities |
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
New U.S.-Russia Opportunities / American Airlines, Inc. and Finnair Oyj
| OST-99-5286 OST-98-4522 OST-98-4328 |
April 15, 1999 | Supplement
to Reply of American Airlines and Motion for Leave to File | Cover Page |
New US-Russia Opportunities / Codeshare with Finnar / Chicago-Moscow |
On April 14, 1999, Bloomberg News Service reported that "AOA Aeroflot, Russia's national airline, and Delta Air Lines, Inc., the third-largest U.S. carrier, said they plan to sign a codesharing agreement, a move that would for the first time give the U.S. and Russian air carriers access to hundreds of destinations to each other's home countries, the Moscow Times reported. The agreement, which may be implemented as early as his fall, would allow passengers to take advantage of the routes and frequent flyer programs of both airlines." If Delta and Aeroflot now enter into a codesharing agreement, Delta will have three opportunities to access the U.S.-Russia market. The Department should not award Delta a fourth opportunity -- to codeshare with Air France via Paris -- to the exclusion of American's request to codeshare with Finnair via Helsinki, which will represent American's only on-line access to Russia. In these circumstances, to grant Delta's application would be contrary to the public interest in maximizing competitive options for passengers and shippers in the U.S.-Russia market.
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
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