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OST-98-4509

Continental Airlines, Inc.

OST-98-4509 September 28, 1998 Application of Continental Airlines, Inc. for a Certificate of Public Convenience and Necessity and a Designation U.S. Romania Third-Country Code-Share Services

Counsel:  Bruce Keiner and Lorraine Halloway


U.S.-Romania Third-Country Codeshare / Continental Airlines, Inc/Delta Air Lines, Inc./Northwest Airlines, Inc./United Air Lines, Inc.

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OST-98-4508
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October 7, 1998 pdficon.gif (87 bytes)Consolidated Answer of Continental Airlines US-Romania Codeshare document.gif (123 bytes)HTML

Counsel:  Continental and Crowell Moring, Bruce Keiner, rbkeiner@cromor.com

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October 7, 1998 pdficon.gif (87 bytes)Consolidated Answer of Delta Air Lines US-Romania Codeshare document.gif (123 bytes)HTML
    DL-R-1:  Delta Offers the Second Largest Number of Weekly Same Day Round Trip Connections to Romania    
    DL-R-2:  Delta Has the Most Gateways Receiving Same Day Round Trip Connecting Service Six or More Days Per Week    
    DL-R-3:  Continental Does Not Have Any Same Day Connections to the U.S. from Bucharest    
    DL-R-4:  Delta Will Provide Service from Three Times as Many U.S. Gateways to Romania as Continental    
    DL-R-5:  Delta Will Provide the Second Larges Number of Weekly Frequencies to Bucharest from a European Gateway    
    DL-R-6:  Delta's Atlanta Hub is the Largest Hub in Terms of Daily Departures    
    DL-R-7:  Delta's Atlanta Hub is the Largest Hub in Terms of Nonstop Citypairs Served    
    DL-R-8:  Delta's Atlanta Hub is the Largest Hub in Terms of Enplanements    
    Service List    

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

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October 7, 1998 pdficon.gif (87 bytes)Consolidated Answer of Northwest Airlines US-Romania Codeshare document.gif (123 bytes)HTML
    NW-1:  Comparison of Carrier's
U.S. - Bucharest Codeshare Proposals
   

Counsel:  Northwest, Megan Rae Poldy, 202-842-3193

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October 7, 1998 pdficon.gif (87 bytes)Consolidated Answer of United Air Lines US-Romania Codeshare document.gif (123 bytes)HTML
    Exibit UA-2  
    Service List  

Counsel:  United and Kirkland Ellis, Jeffrey Manley, 202-879-5161, jeffrey_manley@kirkland.com


U.S.-Romania Third Country Codeshare

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October 9, 1998 pdficon.gif (87 bytes)Re:  Revised Exhibit UA-2 of United Air Lines Answer of October 7, 1998 US-Romania Codeshare
    Revised Exhibit UA-2:  United will Offer 210 Weekly Same Day Nonstop to Nonstop Connections to Romania  
    Revised Page 2 of Answer  

Attached please find a revision of Exhibit UA-2 in the referenced pleading. A revised page 2 is also attached which reflects the new totals in revised Exhibit WA-2.

Counsel:  United and Kirkland Ellis, Jeffrey Manley, 202-879-5161, jeffrey_manley@kirkland.com


U.S.-Romania Third Country Codeshare Opportunities / United Air Lines, Inc. / Delta Air Lines, Inc. / Continental Airlines, Inc. / Northwest Airlines, Inc.

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Undocketed
October 15, 1998 pdficon.gif (87 bytes)Consolidated Reply of Continental Airlines US-Romania Third-Country Codeshare document.gif (123 bytes)HTML

Delta and United say Continental's service with Air France is less preferable because the schedule would "require all of its U.S.-Bucharest passengers . . . to spend the night in Paris on their westbound journeys." (United Answer at 5, see also Exhibit DL-R-3) That is not all bad, however. To some of Continental's passengers, an opportunity to spend the night in Paris has definite advantages. Nonetheless, for those passengers who cannot stay overnight in Paris, Continental's service with CSA via Prague is an efficient westbound same-day alternative.

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

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Undocketed
October 15, 1998 pdficon.gif (87 bytes)Consolidated Reply of Delta Air Lines US-Romania Third-Country Codeshare document.gif (123 bytes)HTML
    Re:  Revised Pages of Rebuttal Exhibits DL-R-1
The exhibits have been revised to reflect the fact that Swissair has just changed its Spring 1999 schedule, increasing service in the Zurich-Bucharest market from 13 to 14 weekly frequencies. As a result, Delta will provide 14 weekly Zurich-Bucharest frequencies, 75 weekly same day roundtrip connections and daily roundtrip connections at eight U.S. gateways.
   

As all but one carrier will receive an award, the Department need only determine which proposal is weakest. By every comparison, Continental's proposal is the weakest, offering the fewest service and competitive benefits of any applicant. Because Delta will provide more weekly roundtrip connections to and from more gateways than any other applicant, Delta's proposal is also superior to United's and Northwest's.

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

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Undocketed
October 15, 1998 pdficon.gif (87 bytes)Consolidated Reply of Northwest Airlines US-Romania Third-Country Codeshare document.gif (123 bytes)HTML

Only four carriers have submitted applications. Under the circumstances, it is not necessary for the Department to determine which carrier has proposed the "best" service.) Rather, the Department need only determine which three carriers' service proposals are superior. Northwest's service proposal is unquestionably among the three best: proposals in this proceeding. No carrier has attempted to argue to the contrary. Northwest plainly should be allocated one of the three designations available effective April 1, 1999.

Counsel:  Northwest, Megan Rae Poldy, 202-842-3193

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October 15, 1998 pdficon.gif (87 bytes)Consolidated Reply of United Air Lines US-Romania Third-Country Codeshare document.gif (123 bytes)HTML

Continental offers no reasonable basis for the Department to change its selection criteria to enable it to choose Continental at the expense of other carriers whose alliances offer more public benefits. The Department has reasonably adopted a policy which assures that limited code-share opportunities are awarded to those carriers that will offer more competitive choices to consumers. The public would be seriously shortchanged if Continental were selected to operate one of the three U.S.-Romania opportunities.

Counsel:  United and Kirkland Ellis, Jeffrey Manley, 202-879-5161, jeffrey_manley@kirkland.com


U.S.-Romania Third Country Codeshare Opportunities

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October 16, 1998 pdficon.gif (87 bytes)Re:  Corrected Page 4 of Continental's Reply of 10/15/98 US-Romania Codeshare

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


U.S.-Romania Third-Country Code-Share Opportunities

Order 99-2-9
OST-99-5096
OST-98-4509
OST-98-4508
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OST-98-4506
Issued February 9, 1999
Served February 12, 1999
pdficon.gif (87 bytes)Order to Show Cause U.S.-Romania Third-Country Code-Share Opportunities document.gif (123 bytes)HTML

By this order, we tentatively select (1) Delta Air Lines, Inc., Northwest Airlines, Inc., and United Air Lines, Inc., to serve Bucharest, Romania, under code-share arrangements with third-country carriers beginning April 1, 1999, and (2) Continental Airlines, Inc., to serve Bucharest, Romania, under code-share arrangements with third-country carriers beginning November 1, 1999.

By:  Patrick Murphy


U.S. - Romania Third-Country Code-Share Opportunities

OST-98-4509
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Undocketed
February 22, 1999 pdficon.gif (87 bytes)Objections of Continental Airlines US - Romania

Awarding limited U.S.-Romania code-share authority available April 1, 1999, to the airlines offering the maximum number of U.S. gateways, as proposed in this proceeding, would perpetuate the dominance of the largest airlines and the largest alliances and inhibit the immediate entry of a new competitor between the U.S. and Eastern Europe. Since U.S.-Romania code-sharing is new, the Department has an extraordinary opportunity to authorize Continental and Air France to start service at the same time as other, larger alliances which have already blanketed Eastern Europe with code-share service. Thus, Continentals objects to the Department's tentative decision awarding Delta, Northwest and United the three U.S. carrier designations now available April 1, 1999. Continental urges the Department to reverse its tentative decision and award Continental U.S.-Romania code-share authority effective April 1, 1999, for the reasons set forth in its application, consolidated answer and consolidated reply.

Counsel:  Crowell & Moring, Bruce Keiner, 202.624.2615


U.S.- Romania Third-Country Code-Share Opportunities

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March 1, 1999 pdficon1.gif (224 bytes)Answer of Delta Air Lines

Scanned Version

US-Romania

The Department has fully considered and rejected Continental's arguments and correctly determined that Continental's proposal will provide the fewest service and competitive benefits of any applicant. Collectively, the proposals of Delta, United and Northwest will offer 41 weekly flights to Romania, providing online connecting service to 16 different U.S. gateways. No combination that includes Continental's proposal would match this level of service benefits.

Counsel:  Shaw Pittman, Robert Cohn for Delta, 202.663.8060

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March 1, 1999 pdficon.gif (87 bytes)Answer of United Air Lines US-Romania

Continental objects to its slightly deferred start-up on the basis of the alleged benefits it would bring by adding an additional code-share network for services between the U.S. and Eastern Europe to compete with the networks which carriers such as United, Delta and Northwest already have in place. There is no analysis offered as to why service to Romania is essential to Continental's establishment of this regional code-share network. Continental already offers code-share service to the Czech Republic and is eligible to do so to Poland and Hungary. There is no suggestion that Continental requires access to Bucharest as a means of serving other countries in this region. Indeed, Bucharest is poorly located to provide such access, and Continental proposes to serve it as an end-point, not a hub.

Counsel:  Kirkland & Ellis, Jeffrey Manley, 202.879.5161


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