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OST-98-4832

Northwest Airlines, Inc.

Northwest seeks authority so it can provide scheduled foreign air transportation of persons, property and mail on all Continental flights between Newark, on the one hand, and Cancun and Cozumel, on the other hand; and between Houston, on the one hand, and Cozumel, Mexico City, Acapulco, Los Cabos, Guadalajara, Leon, Mazatlan, Merida, Monterrey, Puerto Vallarta, Tampico, Veracruz and Zibuatanejo, on the other hand. Northwest intends to commence the proposed code-sharing with Continental as soon as possible, and Northwest asks that the Department grant Northwest exemption authority on an expedited basis to enable Northwest to seek foreign authority and engage in advance sales anti marketing activities.

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

Northwest Airlines, Inc.

Until the impasse between the U.S. and Mexico on codesharing has been resolved through an amendment to the Air Transport Agreement, and until the Department has lifted its moratorium on new codesharing authorizations, the Department should not grant Northwest's application in this docket for exemption authority needed to engage in U.S.-Mexico codesharing with Continental.

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

OST-98-4832

December 16, 1998

Answer of United Air Lines

US-Mexico Codeshare with Continental

As Northwest must be aware, code sharing between the U.S. and Mexico is restricted by the designation limits imposed under the U.S./Mexico bilateral agreement. The two countries are engaged in a dialogue aimed at relieving code shares from those limits. As of yet, however, no agreement has been reached. As a result, the DOT has effectively imposed a moratorium on any expansion of U.S. carrier code shares to Mexico pending a resolution of these bilateral issues.

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

Northwest Airlines, Inc.

OST-98-4832

December 28, 1998

Consolidated Reply of Northwest Airlines

US-Mexico Codeshare with Continental

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Rather than heeding the pleas of American, the U.S. airline which already captures the largest percentage of U.S.Mexico traffic, or United, which is partnered with one of the two affiliated Mexican carriers which dominate the Mexican-flag market, to defer action on the Northwest application for authority to expana competition between the U.S. and Mexico, the Department should grant immediately Northwest's request for underlying exemption authority to level the U.S.-Mexico playing field. Thus, Northwest urges the Department to grant its application for U.S.-Mexico authority immediately.

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

Northwest Airlines, Inc.

OST-98-4832	February 3, 1999	Amendment to Application for an Exemption	US-Mexico Codeshare with Continental	HTML
		Service List

Pursuant to the U.S.-Mexico annex on cooperative marketing agreements concluded on January 26, 1999, four code-share authorizations are available between New York/Newark and Mexico.  The New York/Newark-Mexico City and Houston-Cancun codeshare service will offer all the same benefits as code-sharing on the other U.S.-Mexico routes for which Northwest has sought authority in this docket without precluding any other U.S. carriers from code-sharing on these routes.

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

Northwest Airlines, Inc.

OST-98-4832

February 18, 1999

Answer of United Air Lines

US-Mexico Codeshare with Continental

Northwest requests exemption authority in two additional U.S.-Mexico transborder city pairs served by Continental, New York/Newark-Mexico City and Houston-Cancun. Northwest also urges the Department to promptly grant all outstanding U.S.-Mexico code-share applications, including the applications filed by United and Compania Aviacion de Mexicana ("Mexicana"), pursuant to the new U.S.-Mexico annex on cooperative marketing agreements concluded January 26, 1999. United does not oppose grant of the authority sought by Northwest so long as the outstanding United/Mexicana applications are granted no later than that of Northwest. United has been seeking to expand its code-share operations with Mexicana for over three years, but the majority of United's application pending in Docket OST-97-3237 and a portion of its application pending in Docket OST-96-1988 have been deferred pending resolution of bilateral code-share issues.

United concurs with Northwest that the Department should promptly act on all pending U.S.-Mexico code-share applications. Because transborder code-share designations remain limited to four under the new agreement, however, the Department should approve United's long-outstanding applications no later than it acts on any other U.S.-Mexico code-share application. It would be both unfair and potentially prejudicial if the Department were to grant other outstanding requests before approving the United/Mexicana applications, particularly where, as here, several of the applicants request authority for the same transborder city pairs. United would be competitively disadvantaged if the Department were to enable other competitors to introduce new services in the U.S.-Mexico market before the Department grants the pending United/Mexicana applications.

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

Northwest Airlines, Inc.

Requests authority to provide scheduled foreign air transportation of persons, property and mail between Cleveland and Cancun and between San Antonio and San Diego, on the one hand, and Mexico City, on the other hand. In addition, Northwest amends its application by removing the city pair Houston-Mazatlan, which Continental is no longer operating.

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

Northwest Airlines, Inc. / Continental Airlines, Inc. / Alaska Airlines, Inc.

United objects to any action being taken on these other applications in advance of its joint application in Docket OST-97-3237. It would be both unfair and potentially prejudicial if the Department were to grant other outstanding requests before approving the United/Mexicana application, particularly where, as here, several of the applicants request authority for the same transborder city pairs. In addition, United and Mexicana would be competitively disadvantaged if the Department were to enable other competitors to introduce new services in U. S.-Mexico markets before the Department grants the pending United/Mexica.na applications, enabling United and Mexicana to do so.

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

Northwest Airlines, Inc.

In sharp Contrast to United, which already has U.S.-Mexico code-share operations with Mexicana, Northwest's codeshare services with Continental will introduce a new competitive alliance on U.S.-Mexico routes. In addition, Northwest will be an entirely new entrant on the U.S.-Mexico routes now served only by Alaska, Continental and other carriers, bringing new network competition and service options to those routes.

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

Northwest Airlines, Inc.

Enclosed for filing in the above-referenced proceedings a corrected copy of the cover of the Reply of Northwest Airlines, Inc. filed on March 22, 1999. This correction reflects an incorrect docket number contained on the cover of Northwest's March 22 Reply. Specifically, Northwest's March 22 Reply contained in the caption referencing "Docket OST-99-6164." The correct Dockets in which Northwest's March 22 Reply should be filed are OST-98-4832 and OST-99-5164

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

Northwest Airlines, Inc.

Northwest Airlines, Inc. hereby amends its application by deleting its request for authority to serve the city-pair Houston-Mazatlan since Continental Airlines, Inc. is no longer operating service on that route.

Counsel:  Northwest, Megan Rae Poldy

Northwest Airlines, Inc.

Scheduled foreign air transportation of persons, property, and mail between (1) the terminal point Newark/New York, on the one hand, and the coterminal points Cancun, Cozumel, and Mexico City, Mexico, on the other hand; (2) the terminal point Houston, Texas, on the one hand, and the coterminal points Acapulco, Cancun, Cozumel, Guadalajara, Leon, Merida, Mexico City, Monterrey, Puerto Vallarta, San Jose del Cabo, Tampico, Veracruz, and Ixtapa/Zihuatanejo, Mexico, on the other hand; and (3) the terminal point Cleveland, Ohio, and the terminal point Cancun, Mexico; (4) the terminal point San Antonio, Texas, and the temnial point Mexico City, Mexico; and (5) the terminal point San Diego, California, and the terminal point Mexico City, Mexico. Northwest proposes to serve the markets pursuant to a code-share arrangement with Continental Airlines, Inc., whereby Northwest will place its designator code on Continental flights in the subject markets. 1 Northwest requests that the authority be granted for an indefinite term.

Northwest Airlines, Inc.

Northwest Airlines, Inc. respectfully requests that the Department extend the dormancy conditions on starting U.S.-Mexico code-share services with Alaska Airlines, Inc. and Continental Airlines, Inc. through December 1, 1999, and shorten the time period for answers to this extension request to August 27, 1999.

Counsel:  Northwest, Megan Rae Poldy, 202.842.3193

Northwest Airlines, Inc.

Counsel: Northwest, Megan Rae Poldy, 202.842.3193

Northwest Airlines, Inc.

Counsel:  Northwest, Megan Rae Poldy, 202.842.3193

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