OST-98-4647
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OST-98-4647
| OST-98-4647 | October 23, 1998 |  Application for Exemption |
Chicago O'Hare Slots |
| Attachment: 12 Month REsults First Year for Greenville/Spartenburg-O'Hare | |||
| Service List |
American Eagle plans to begin this important new service in January 1999. Accordingly, we request that the Department accelerate the answer date, and issue its decision on an expedited basis, so that American Eagle can make arrangements to open a new station, and engage in advance marketing and sales activities necessary for a successful start-up. Greenville/Spartanburg presently does not have any nonstop access to O'Hare. American Eagle's proposed flights will not only provide significantly more convenient service to the public in the local market -- a 577-mile segment which suffers today from highly circuitous connecting routings -but will be integrated into American Airlines' worldwide air travel network for which O'Hare is a primary connecting hub.
Counsel: American, Carl Nelson
| OST-98-4647 | October 26, 1998 | Re: Objection of Atlantic Coast Airlines
to Accelerate Answer Date |
High Density Rule, Chicago O'Hare |
American Eagle has not made a compelling case for expeditious consideration of its application. Rather, the applicant has created its own need for expedition by claiming it seeks to commence Greenville/Spartanburg-Chicago service in January, 1999. But, the carrier has not suggested any compelling reason why it decided to startup service in January, or pointed to any specific transportation need that must be satisfied by the date selected by American Eagle. American Eagle's request for expedition is based solely on convenience of the applicant.
Counsel: Bagileo Silverberg, Robert Silverberg, 202-944-3300
| OST-98-4647 | October 29, 1998 | Spartanburg Area Chamber of
Commerce - Letter in Support |
Chicago O'Hare Slots - Greenville/Spartanburg, South Carolina |
| October 29, 1998 | BMW Manufacturing Corp. -
Letter in Support |
||
| October 30, 1998 | Greenville-Spartanburg Airport
Commision - Letter in Support |
||
| October 29, 1998 | Advance America Cash Advance
Centers - Letter in Support |
||
| October 29, 1998 | Greater Greer Chamber of
Commerce - Letter in Support |
American Eagle Airlines, Inc.
| OST-98-4647 | November 9, 1998 | Answer of Atlantic
Coast Airlines |
High Density Rule, Chicago O'Hare |  HTML |
| Exhibit 1: AA Average Fare for Non-Stop Markets | ||||
| Exhibit 2: Largest ORD Markets Without Non-Stop Service |
For several legal and policy considerations, the DOT should reject the AA Eagle application. At the same time the DOT should proceed to grant ACA's longstanding request for an exemption from the High Density Airport Rule to permit it to conduct nonstop, 50seat regional jet flights between Savannah/Hilton Head and O'Hare. See Application of Atlantic Coast Airlines, Docket OST-98-3982, June 24, 1998. Because the Savannah/Hilton Head-O'Hare market is larger than is the Greenville/Spartanburg-O'Hare market, and lacks the access to hub airports to the degree enjoyed by Greenville/ Spartanburg, more passengers will benefit from nonstop service if ACA is granted its requested slot exemption authority, and for this reason alone the AA Eagle application should be denied in view of the shortage of exemption slots available for allocation.
Counsel: Bagileo Silverberg, Robert Silverberg, 202-944-3300
| OST-98-4647 | November 9, 1998 | Answer of United Air
Lines |
High Density Rule, Chicago O'Hare | HTML |
The Department should properly dismiss American's application. As the largest holder of commuter slots at O'Hare, American is abusing the Department's slot exemption process by submitting yet another exemption application. American has amply demonstrated in another context its predisposition to abuse of these procedures.
Counsel: United and Kirkland Ellis, Jeffrey Manley, 202-879-5161, jeffrey_manley@kirkland.com
| OST-98-4647 | November 10, 1998 | Michelin North America
- Correspondence |
High Density Rule, Chicago O'Hare |
| Elizabeth G. Gower, Chairman Quality of Life/Environment Committe Greenville City Council - Correspondence |
| OST-98-4647 | November 17, 1998 | Answer of The
Community of Savannah/Hilton Head |
High Density Rule - Chicago O'Hare | HTML |
| Service List |
As demonstrated by the applications submitted by the Parties and ACA, 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. If service is to be a reality for the spring of 1999, the Parties need an answer as soon as possible.
Counsel: Ungaretti Harris, Edward Faberman, 202-778-4460
| OST-98-4647 | November 19, 1998 | Reply of American
Eagle |
High Density Rule, Chicago O'Hare | HTML |
| Additional Exhibits Added Nov 20th | Exhibit 1: Comparison of Greenville/Spartanburg and Savannah/Hilton Head Carriers Providing Service | |||
| Exhibit 2: Comparison of Weekly On-line Connections to Chicago with Less Than 25% Circuity | ||||
| Exhibit 3: Domestic Airline Fares Consumer Report | ||||
| Exhibit 4: Chicago O'Hare Slots | ||||
| Exhibit 5: Letter Dated July 6, 1998 | ||||
| Exhibit 6: UAL's October 23, 1998 Press Release | ||||
| Exhibit 7: UAL's October 26, 1998 Press Release | ||||
| Exhibit 8: UAL's November 5, 1998 Press Release | ||||
| Exhibit 9: Map of UAL's Service of North American Cities | ||||
| Exhibit 10: Slot Management System for November 13, 1998 | ||||
| Service List |
In its zeal to increase its already formidable slot advantage at O'Hare, United goes so far as to call for American Eagle to surrender two exemption slots that the Department recently awarded for nonstop service between O'Hare and Duluth. United contends that if American Eagle can provide three slots of its own to round out its proposed service pattern for Greenville/Spartanburg, then it did not need additional exemption slots for Duluth, and obtained them under "false pretenses." The Department should reject such a preposterous argument.
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
| OST-98-4647 | December 1, 1998 | Response of United Air Lines and Motion for
Leave to File |
High Density Rule, Chicago O'Hare | HTML |
American, on the other hand, attempts to game its regional jet services so as to leverage the Department into awarding it even more exemption slots. For example, American offers three of its own slots as "bait" in the Greenville/Spartanburg application in order to obtain more exemption slots from the Department. American is willing to offer these three slots from its base, even though it could have used them to fulfill its promise to operate three daily regional jet services to O'Hare from Shreveport and Montgomery, two of the points it serves pursuant to slot exemption, awarded by Orders 98-9-24 and 98-4-21. If the United Express carriers had followed American's example. they would have demanded more exemption slots as a precondition for upgrading service to regional jets at points such as Sioux Falls, Fargo and Peoria rather than resorting to self-help measures by using existing slots. American should be required to use its three "self-help" slots to fulfill its promises to Shreveport and Montgomery before it is awarded even more slots to serve a new points.
Counsel: United and Kirkland Ellis, Jeffrey Manley, 202-879-5161, jeffrey_manley@kirkland.com
| OST-98-4647 | December 2, 1998 | Motion for Leave to File and Response of Atlantic Coast
Airlines to Reply of American Airlines |
High Density Rule, Chicago O'Hare | HTML |
The AA Eagle reply incorrectly frames the issues raised by its late filed application for O'Hare slot exemption authority as, in part, a contest between American and United for control of O'Hare slots. It does so by suggesting ACA is affiliated with United in the same way AA Eagle is affiliated with American. In doing so, AA Eagle refuses to accept the fact that ACA is neither owned nor controlled by United. The consequences of ACA's business decisions to operate to O'Hare fall squarely on the shareholders of ACA and its management. ACA is a separate legal entity that is tied to United only by a code share agreement and not by stock holdings. AA Eagle, on the other hand, is wholly owned by American's parent and its financial results are consolidated with those of American. The AA Eagle relationship with American warrants an entirely different regulatory treatment as the DOT previously concluded. Therefore, to attribute ACA's exemption slot holdings to United is fundamentally wrong. Of course, to amalgamate the slot holdings of AA Eagle with those held by American is fundamentally correct, since the air carriers are affiliates of one another under common ownership.
Counsel: Bagileo Silverberg, Robert Silverberg, 202-944-3300
| OST-98-4647 | December 2, 1998 | Answer of The Community of Savannah/Hilton Head |
High Density Rule, Chicago O'Hare | HTML |
| Exhibit Added Dec. 3rd | Exhibit: ORD Slot Management System Summary |
The Savannah/Hilton Head parties would prefer an environment in which all markets could secure access to the nation's largest airports. Unfortunately, that result is not possible at the high density airports. American Eagle's claim that it should be awarded the remaining available slots at O'Hare because it "is at a significant slot disadvantage" is disingenuous at best. American has a significant number of slots at O'Hare -- both commuter and air carrier. According to its Exhibit 10, American Eagle has 299 O'Hare commuter slots. It has so many commuter slots that some are used for jet service to larger markets.
Counsel: Ungaretti Harris, Edward Faberman, 202-778-4460
| OST-98-4647 | December 4, 1998 | Motion for Leave to File and Response of American Eagle
Airlines |
High Density Rule, Chicago O'Hare | HTML |
Certainly the most telling aspect of United's pleading is the mere fact United has chosen to make yet another submission in a proceeding in which O'Hare slots are being contested between American Eagle and United Express. This once again confirms that the O'Hare slot holdings of United and its United Express carriers should be aggregated for competitive purposes, and once again belies any notion that the United Express carriers operate independently of United's worldwide network. As United's recent activities make clear -- involving various United Express services at Decatur, Sioux Falls, Fargo, and Peoria -- United calls the shots. United should no longer be heard to contend that it and United Express are "independent" operators at O'Hare.
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
| OST-98-4647 | December 9, 1998 | Motion of Reno Air to Strike United's
Response and Motion for Leave to File |
High Density Rule - Chicago O'Hare Slots | HTML |
| Exhibit 1: Total O&D Traffic, RNO-ORD Market | ||||
| Exhibit 2: Reno Air, RNO-ORD O&D Traffic | ||||
| Service List |
United's attempt to carve up Reno Air and reallocate its O'Hare slots in this proceeding is a denial of Reno Air's due process rights. Apparently, United needs to be reminded that Reno Air is still an independent operating carrier that offers four daily round trip flights between Reno and Chicago O'Hare. None of Reno Air's O'Hare slots have been Transferred to American. Moreover, this proceeding involving American Eagle's request for two slots to serve Greenville/Spartanburg is not the appropriate proceeding in which to consider Reno-Chicago O'Hare. If the Department ever needs to reconsider its decisions awarding O'Hare slots to Reno Air, that action must be taken only in a proceeding involving Reno Air and in which Reno Air is afforded full due process protections. In any event, obvious public interest reasons compel the total rejection of United's arguments.
Counsel: Stephen Lachter for Reno Air, Inc., 202.862.4321
| OST-98-4647 | December 9, 1998 | Objections of the Reno/Tahoe Parties and
Motion for Leave to File |
High Density Rule - Chicago O'Hare Slots | HTML |
| Service List |
In the four years since Reno Air instituted daily nonstop service, the Reno-O'Hare market has more than tripled, increasing from approximately 56,890 annual O&D passengers in 1994 to 166,740 annual O & D passengers in 1997. At present, Reno Air offers a seasonally adjusted three round trips a day between Reno and Chicago O'Hare. According to its schedule, Reno Air once again intends to offer four daily round trips, commencing February, 1999. While Reno Air has not used the two additional exemption slots granted by Order 97-10-16, October 24, 1997, it has been able to offer the proposed level of four daily round trips, using five temporary exemption slots, with three of the eight operations performed outside the slot controlled times.
The implications of the American acquisition, if completed, remains speculative. The Reno/Tahoe Parties, political interests in the community and the State, and Nevada's Congressional delegation will be seeking commitments from American concerning future service. There is every reason to believe that American will continue to operate, under the Reno Air franchise or otherwise, multiple Reno-Chicago O'Hare flights. Indeed, the Reno/Tahoe Parties are prepared to support strongly the retention by American (under the Reno Air franchise or otherwise) of all Reno Air exemption slots.
Counsel: Stephen Lachter for the Reno/Tahoe Parties, 202.862.4321
| OST-98-4647 | December 18, 1998 | Answer of United Air Lines And Contingent
Motion for Leave to File |
High Density Rule, Chicago O'Hare | HTML |
Both Reno Air and the Reno Parties also concede that a proceeding is needed to consider the disposition of Reno Air's exemption slots. United agrees with Reno Air and the Reno Parties that the issues relating to the five O'Hare slots which Reno Air continues to use need not be resolved in this particular proceedings As United stated in its December I response. Once the American/Reno Air acquisition agreement has been consummated, it will become subject to DOT review, and at that time the disposition of the Reno Air slot exemptions must be addressed. There is nothing to bar Reno Air from continuing its Chicago O'Hare-Reno services pending completion of that review. It may even be the case that another new entrant, low fare carrier eligible :for exemptions under §41714(c) will seek those slots to continue Chicago O'Hare-Reno service. American Airlines is not such a carrier however. Contrary to the apparent beliefs of Reno Air and the Reno Parties, American cannot continue Chicago O'Hare-Reno services pursuant to the §41714(c) slot exemption awarded to Reno Air in circumstances where American simply is not eligible for an exemption under that provision.
Counsel: Kirkland Ellis, Jeffrey Manley for UAL, 202.879.5161
| OST-98-4647 | December 28, 1998 | Second Motion of Reno Air to Strike and Motion
for Leave to File |
High Density Rule - Chicago O'Hare | HTML |
| Service List |
Under these circumstances, Reno Air moves to strike those portions of United's pleadings dealing with Reno Air's Reno-Chicago O'Hare slots. Reno Air also respectfully puts the Department on notice that it does not intend to answer any additional United pleadings in this regard, preferring to put an end to any further abuse by United of the Department's process. Therefore, the absence of any further response by Reno Air should not be taken as acquiescence to United's irrelevant, erroneous, and misplaced arguments.
Counsel: Setphen Lachter for Reno Air, 202.862.4321
| OST-98-4647 | January 7, 1999 | Answer of United Air Lines and Contingent
Motion for Leave to File |
High Density Rule - Chicago O'Hare |
Counsel: United and Kirkland Ellis, Jeffrey Manley, 202-879-5161, jeffrey_manley@kirkland.com
| OST-98-4647 | February 8, 1999 | Motion of American Eagle for Leave to Amend
Application |
High Density Rule - Chicago O'Hare |
In these circumstances, the Department should grant American Eagle's motion to amend its application so as to seek five exemption slots for O'Hare-Greenville/Spartanburg service. That will take account of the Department's recent action withdrawing two of Reno Air's exemption slots and returning them to the unassigned pool, and will place the competing applications by American Eagle and United Express on an equal footing.
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
| OST-98-4647 | February 8, 1999 | Motion of American Eagle for a Decision |
High Density Rule - Chicago O'Hare |
As American Eagle has shown in numerous pleadings, both in this docket and in OST-98-3982, the public interest will best be served by awarding O'Hare exemption slots to American Eagle to serve Greenville/Spartanburg. The Greenville/Spartanburg-Chicago market presently suffers not only from inferior connecting service, but has the highest average fare in its mileage block, as shown by the Department's domestic air fare consumer report. American Eagle's service will represent South Carolina's only on-line access to American's worldwide network.
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
| OST-98-4647 | February 18, 1999 | Consolidated Answer of United Air Lines |
High Density Rule - Chicago O'Hare |
United Air Lines, Inc. ("United") submits the following consolidated answer to the two Motions of American Eagle Airlines, :lnc. ("American") dated February 8, 1999, in the above captioned proceeding:
By its Motions, American seeks to amend its application for exemption slots to serve Chicago O'Hare-Greenville/Spartanburg in order to increase its request from three to five slots. In a separate motion, American also seeks an immediate decision granting its application as amended. American offers no new arguments in favor of either of its motions but merely repeats those which it has already made in its previous pleadings. United has consistently opposed American's request for exemption slots to serve Greenville/Spartanburg and has instead urged the Department to grant the competing application of Atlantic Coast Airlines, Inc., ("ACA") in Docket OST-98-3982 in which ACA seeks the same five exemption slots to serve the larger Chicago O'Hare-Savannah/Hilton Head market. United opposes American's February 8, 1999, motions for the same reasons already stated in its previous pleadings in this proceeding as well as in Docket OST-98-3982. United will not burden the record by repeating those arguments but adopts these previous pleadings by reference.
Counsel: United and Kirkland Ellis, Jeffrey Manley, 202-879-5161, jeffrey_manley@kirkland.com
Establishment of Slot Exemptions Proceedings
| OST-95-277 OST-97-3086 OST-98-4647 OST-98-3603 OST-98-3982 OST-98-4424 OST-98-3550 OST-98-4346 OST-98-3603 OST-98-4604 OST-99-5153 OST-99-6731 OST-99-4979 OST-99-6683 OST-99-6547 OST-99-6654 OST-99-5532 OST-99-5533 OST-99-5475 OST-99-5614 OST-00-6957 OST-00-6996 OST-00-6970 OST-00-6838 OST-00-7175 OST-00-7176 OST-00-7177 OST-00-7178 OST-00-7179 OST-00-7180 OST-00-7181 OST-00-7182 |
Served April 14, 2000 | Notice | Slot Exemptions |
By: Bradley Mims
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