ost984740

OST-98-4740

Alaska Airlines, Inc.

OST-98-4740

November 10, 1998

Application for Waiver of Dormancy

Russian Far East

Alaska must also say that it is disappointed by Delta's and United's answers in Docket 98-4602 to Reeve Aleutian's application. Both Delta's and United's answers seek to preserve more than 10 long-dormant frequencies for those two carriers' respective code-share arrangements with Austrian Airlines and Lufthansa -- arrangements which the Russian Government has steadfastly refused to approve. While it is understandably the prerogative of every carrier to seek to hold on to frequencies and slots for as long as possible and Alaska could have similarly attempted to do so for all three of its frequencies, Delta's and United's attempts to "babysit" their unused frequencies belie reality. For reasons which need not be reiterated here, Delta and United surely know that the Russian Government will not approve these two particular third-country code-share arrangements until a new overall bilateral understanding has been reached. More significantly, that understanding will certainly include an increased number of frequencies -- making Delta's and United's concerns wholly academic. - For this reason, had the Department allocated to Reeve Aleutian on a temporary basis either Delta's or United's frequencies -- or Baltia's for that matter, it would have made absolutely no difference whatsoever.

Counsel: Alaska and Squire Sanders

Alaska Airlines, Inc.

OST-98-4740

Filed November 10, 1998
Issued November 23, 1998

Notice of Action Taken

US-Russia

By Order 96-1-1 the Department allocated Alaska Airlines three weekly combination frequencies to provide service in the U.S.-Russia market. The frequencies are subject to the condition that they will expire automatically and revert to the Department for reallocation if they are not used for a period of 90 days. Alaska recently suspended its U.S.-Russia service on October 8, 1998, and returned two of its three frequencies. Alaska seeks a waiver of the 90-day dormancy condition for its one remaining frequency for a period of 12 months. Alaska states that it wants to maintain a code-share presence in the U.S.-Russia Far East market and is discussing code-sharing with other carriers.

By: Paul Gretch