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OST-1998-4854

1999 U.S.-Italy Combination Service Proceeding / American Airlines, Inc. / US Airways, Inc. / Delta Air Lines, Inc. / Tower Air, Inc.

Order 98-12-3 OST-98-4854 OST-98-4806 OST-98-4809 OST-98-4757 OST-98-4808	Issued and Served December 3, 1998	Order Instituting Proceeding	1999 US-Italy Combination Service Case
		Appendix A:  Evidence Request

The new rights for U.S. carriers to serve Italy become effective April 1, 1999. As we stated in our notice soliciting applications, given this date, we intend to process this case on an expedited procedural schedule to ensure that the selected carrier will be in a position to commence services as soon as the route rights become available. To this end, we will make the DOT Information Responses available immediately. We are establishing the following procedural schedule for other submissions in this case:  

• Carrier Information Responses:    December 7, 1998   
• Petitions for Reconsideration:    December 7, 1998   
• Answers to Petitions for Reconsideration:    December 9, 1998    
• Direct Exhibits:    December 16, 1998   
• Rebuttal Exhibits:    December 30, 1998   
• Briefs:    January 13, 1999

By:  Charles Hunnicutt

1999 U.S.-Italy Combination Service Case / Information Responses

Summary Chart of Carrier's Information Responses

OST-98-4854

December 7, 1998

Information Response of American Airlines

1999 US-Italy Combination

Counsel:  American, Carl Nelson, 202-496-5647

OST-98-4854

December 7, 1998

Information Response of Continental Airlines

1999 US-Italy Combination

Counsel:  Crowell Moring, Lorraine Halloway, 202-624-2538

OST-98-4854

December 7, 1998

Information Response of Delta Air Lines

1999 US-Italy Combination

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

OST-98-4854

December 7, 1998

Information Response of Trans World Airlines

1999 US-Italy Combination

Counsel:  TWA and Richard Fahy

OST-98-4854

December 7, 1998

Information Response of United Air Lines

1999 US-Italy Combination

Counsel:  Kirkland Ellis, Jeffrey Manley, 202-879-5000

OST-98-4854

December 7, 1998

Information Response of US Airways

1999 US-Italy Combination

Counsel:  US Airways and O'Melveny Myers, Joel Burton, 202-383-5300

1999 U.S. - Italy Combination Service Case

OST-98-4854

December 8, 1998

Answer of Delta Air Lines to Motion to Strike of US Airways

1999 US-Italy

Delta's answer was specifically solicited by the Department's Notice and the contents of the Answer represent legitimate adversarial comment. In any event, US Airway's motion is now moot in light of Order 98-12-3 and should be rejected.

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

U.S.-Italy Combination Service Case

By:  Aurora Area Convention & Tourism Council Sue Vos Executive Director

1999 U.S. - Italy Combination Service Case

1999 U.S.-Italy Combination Service Case

OST-98-4854

December 14, 1998

Re:  Application of Tower Air

1999 US-Italy Combination

Tower Air has decided not to persue the above-referenced application that it filed for US-Italy authority and frequency allocation.

Counsel:  Hewes Gelband, Stephen Gelband, 202-337-6200

1999 U.S.-Italy Combination Service Case

Continental and TWA Did Not File Exhibits

OST-98-4854	December 16, 1998	Direct Exhibits of American Airlines - Exhibit Index	1999 US-Italy Combination
		AA-101:  Narrative		HTML
	Added Dec 17th	American Airlines Exhibits Page

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

OST-98-4854	December 16, 1998	Direct Exhibits of The City of Chicago - Exhibit Index	1999 US-Italy Combination
		ORD-DT-1:  Testimony of Douglas Wilson		HTML
	Added Dec 17th	City of Chicago Exhibits Page

Counsel:  Chicago and Winthrop Stimson

OST-98-4854	December 16, 1998	Direct Exhibits of Delta Air Lines - Exhibit Index	1999 US-Italy Combination
		DL-T-1:  Direct Testimony of Frederick Reid		HTML
		DL-T-2:  Narrative to The Direct Exhibits		HTML
	Added Dec 17th	Delta Air Lines Exhibits Page

Counsel:  Delta and Shaw Pittman, Robert Cohn, 202-663-8000, robert_cohn@shawpittman.com

OST-98-4854	December 16, 1998 Added Dec 17th	Direct Exhibits of Metro Atlanta Chamber of Commerce, The City of Atlanta and The State of Georgia - Exhibit Index	1999 US-Italy Combination
		ATL-100:  Introduction and Summary
		Georgia and Atlanta Parties Exhibits Page

OST-98-4854	December 16, 1998	Direct Exhibits of The City of Philadelphia - Exhibit Index	1999 US-Italy Combination
		Philadelphia T-1:   Testimony of Gov Thomas Ridge		HTML
		Philadelphia T-2:  Testimony of Lynn Fields		HTML
		Philadelphia 100:  Narrative to 100 Series Exhibits		HTML
	Added Dec 17th	City of Philadelphia Exhibits Page

Counsel:  GKMG, Morris Garfinkle

OST-98-4854	December 16, 1998	Direct Exhibits of US Airways - Exhibit Index	1999 US-Italy Combination
		US-T-1:  Testimony of Stephen Wolf, Chairman		HTML
		US-T-2:  Testimony of N Bruce Ashby, Sr VP Planning		HTML
	Added Dec 17th	US Airways Exhibits Page

Counsel:  US Airways and O'Melveny Myers, Joel Burton

1999 U.S.-Italy Combination Service Case

OST-98-4854	December 18, 1998	City of Philadelphia Motion for Leave to File and Unauthorized Document	1999 US-Italy
		Philadelphia T-3:  Testimony of Edward G. Rendell, Mayor of Philadelphia		HTML
		Revised Table of Contents

No party is prejudiced by the late or acceptance of the Mayor's testimony. The Mayor's testimony does not contain any information that is not already addressed in Philadelphia's Direct Exhibits.

Wherefore, the City of Philadelphia, Division of Aviation respectfully requests that pursuant to Part §302.18, the Department grant the motion to file an unauthorized document and accept Mayor Rendell's testimony.

Counsel:  GKMG Consulting Services, Inc., Howard Kass, 202.342.5201

1998 US-Italy Combination Service Case

OST-98-4854

December 23, 1998

Re:  US-Italy

Letters in Support of Delta from Members of Congress

Enclosed for filing in the captioned proceeding are letters from members of the Georgia Congressional Delegation and from Congressman Bill McCollum in support of the selection of Delta Air Lines, Inc.

Counsel:  Shaw Pittman, Kathreine Aldrich, 202.663.8007

1999 U.S.-Italy Combination Service Case

All Rebuttal ExhibitsAdded January 4th

OST-98-4854	December 30, 1998	Rebuttal Exhibits of American Airlines	1999 US-Italy Combination Service Case
	Exhibits Added 1/4/99	Service List
		Index to Exhibits
		Exhibits

Counsel:  American, Carl Nelson, 202-496-5647

OST-98-4854	December 30, 1998	Rebuttal Exhibits of The City of Chicago	1999 US-Italy Combination Service Case
		Exhibit ORD-100R - Chicago is Served by More Carriers Than Atlanta or Philadelphia
		Exhibit ORD-121R - Delta Air Lines Estimates That the Chicago-Rome Market is Fully Seven Times Larger Than Atlanta-Rome
		Exhibit ORD-125 - Catchment Area Analysis
		Exhibit ORD-126 - Incremental Impact of DL ATL-FCO Versus AA ORD-FCA

Counsel:  Chicago and Winthrop Stimson

OST-98-4854	December 30, 1998	Rebuttal Exhibits of Delta Air Lines	1999 US-Italy Combination Service Case
	Exhibits Added 1/4/99	Service List
		Index to Exhibits
		Exhibit DL-RT-1	Rebuttal Testimony
		Exhibit DL-R-101 thru DL-R-115
		Exhibit DL-R-117 thru DL-R-152
		Exhibit DL-R-153 thru DL-R-156
		Re:  Letters in Support from Various State and Local Government Officials and Civic Parties pt.1 | pt. 2	DL 500 Series

Counsel:  Delta and Shaw Pittman, Robert Cohn

OST-98-4854	December 30, 1998	Revised Direct Exhibits and Rebuttal Exhibits of The Georgia & Atlanta Parties -- Narrative	1999 US-Italy Combination Service Case
	Exhibits Added 1/4/99	Index to Exhibits
		Exhibit ATL-R-100 Series
		Exhibit ATL-R-200 Series
		Exhibit ATL-R-300 Series
		Exhibit ATL-R-400 Series

By:  Kimberly Conroy, Metro Atlanta Chamber of Commerce

OST-98-4854

December 30, 1998

Rebuttal Exhibits of The City of Philadelphia, Division of Aviation (pt1) | (pt2)

1999 US-Italy Combination Service Case

Counsel:  GKMG, Morris Garfinkle, 202-342-5263

OST-98-4854	December 30, 1998	Rebuttal Exhibits of US Airways -- Index to Exhibits	1999 US-Italy Combination Service Case
	Exhibits Added 1/4/99	Exhibit US-RT-1	Rebuttal Testimony
		Exhibit US-R-100 Series
		Exhibit US-R-200 Series
		Exhibit US-R-300 Series
		Exhibit US-R-400 Series

Counsel:  US Airways and O'Melveny Myers, Joel Burton

1999 US-Italy Combination Service Case

OST-98-4854

January 4, 1998

Supplement to DL-500

Additional Letters in Support from Government Officials

Counsel:  Shaw Pittman, Robert Cohn, 202.663.8000

1999 U.S.-Italy Combination Service Case

OST-98-4854	January 12, 1999	Re:  Letters in Support of Delta's Service Proposal	1999 US-Italy Service Case
	Letters in Support Added 1/13	Letters in Support

Counsel:  Delta and Shaw Pittman, Robert Cohn, 202-663-8060, robert_cohn@shawpittman.com

1999 U.S.-Italy Combination Service Case

OST-98-4854

January 13, 1999

Brief of American Airlines Scanned Version

1999 US-Italy Combination Service Case

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

OST-98-4854

January 13, 1999

Brief of The City of Chicago Microsoft Word 97 Format

1999 US-Italy Combination Service Case

Counsel:  Chicago and Winthrop Stimson, Kenneth Quinn

OST-98-4854	January 13, 1999	Brief of Delta Air Lines Scanned Version Microsoft Word 97 Format	1999 US-Italy Combination Service Case
		Attachment A:  Delta Will  Carry More Passengers from the Underserved Southeast than An Other Applicant
		Attachment B:  Delta Will Carry More Passengers from the Underserved Southern Tier Than Any Other Applicant

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

OST-98-4854

January 13, 1999

Brief of The Georgia & Atlanta Parties Microsoft Word 97 Format

1999 US-Italy Combination Service Case

Counsel:  Bill Alberger

OST-98-4854

January 13, 1999

Brief of The City of Philadelphia Division of Aviation Scanned Version Microsoft Word 97 Format

1999 US-Italy Combination Service Case

Counsel:  Philadelphia and GKMG

OST-98-4854	January 13, 1999	Brief of US Airways Scanned Version	1999 US-Italy Combination Service Case
		Appendix A:  Delta Air Lines Announces Expansion of Service to Europe in Summer 1999 - Press Release

Counsel:  US Airways and O'Melveney Myers, Joel Burton

1999 U.S.-Italy Combination Service Case

OST-98-4854	January 19, 1999	Re:  Letters in Support of US Airways' Service Proposal	1999 US-Italy Combination Service Case
	Letters Added 1/21	Letters in Support:  Pt.1 | Pt.2

Counsel:  O'Melveney Myers, Joel Burton

1999 U.S.-Italy Combination Service Case

OST-98-4854

February 2, 1999

Re:  Letters in Support of Delta Air Lines' Service Proposal

1999 US-Italy Combination Service Case

Enclosed for filing in the captioned proceeding are letters in support of the selection of Delta Air Lines, Inc. from Sen. Trent Lott; Sen. John Breaux; Senators Bob Graham and Connie Mack; James H. Hodges, Governor of South Carolina; Glenda E. Hood, Mayor of Orlando, FL; Jim Marshall, Mayor of Macon, GA; and John C. Gunny M.D., Honorary Consul of Italy for the States of Georgia and South Carolina.

Counsel:  Shaw Pittman, Robert Cohn, 202-663-8000

Editor's Note: There are numerous other Letters in Support for all the other carriers - please refer to the DOT's DMS Web Site for letters not contained here.

http://dms.dot.gov/search/

1999 U.S.-Italy Combination Service Case

Order 99-2-27 OST-98-4854	Issued and Served February 23, 1999	Order to Show Cause Scanned Version	US-Italy Combination Service Case	HTML
		Appendix A:  Summary of US-Italy Proposals

By this Order, we tentatively select Delta Air Lines to operate seven weekly frequencies in the Atlanta-Rome market beginning April 1, 1999, and tentatively select US Airways for backup authority.  Against this background, the record supports a tentative finding that we can derive major public benefits from an award in this case by providing for new gateway services to Italy. This consideration strongly supports Delta's Atlanta-Rome application because only Delta would open a new gateway to Italy, and only Delta would permit the Southern region of the country to enjoy the benefits of U.S.-carrier gateway services. Delta would also provide the most significant behind gateway service benefits and enhance competition in the U.S.-Italy market. In these circumstances, we have tentatively determined that Delta's proposal offers the best use of the route authority at issue. While American and US Airways have submitted attractive proposals, their proposals do not match the public benefits that would be available under Delta's

By:  Patrick Murphy

U.S. - Italy Combination Service Case

OST-98-4854

Docketed February 24, 1999

Ex Parte Letter to Marvin E. Strong, Jr.

U.S. - Italy

Ex Parte Letter to Marvin E. Strong, Jr. from Charles A. Hunnicutte re Support of Delta's application for Atlanta,
Georgia-Rome, Italy service.

By:  Charles Hunnicutt

Note:  See DOT's Site for Numerous Other Letters in this Docket

1999 U.S. - Italy Combination Service Case

OST-98-4854

February 25, 1999

Comments of US Airways, Inc.

1999 US-Italy Combination Service Proceeding

This case has been processed on an expedited basis so as to enable the selected carrier to commence operations as soon as possible in order to operate a successful summer season. In these circumstances, US Airways believes that it is important to-maximize the value of these scarce transitional rights that the U.S. Government has secured from Italy. The most effective way to do this, consistent with the needs of the travelling public and Delta's ability to operate a viable summer service in competition with foreign flag carriers, is for the Department to grant the authority immediately to Delta to initiate Atlanta-Rome service. By granting final authority to Delta without further delay, the Department will enable Delta to begin marketing its service, thus maximizing the public benefits of the new Italy route authority.

Counsel:  O'Melveny & Meyers L.L.P., Joel Stephen Burton, 202.383.5300

OST-98-4854

February 25, 1999

Emergency Motion of Delta Air Lines for Pendente Lite Authority Scanned Version

1999 US-Italy Combination Service Proceeding

There is substantial Department precedent to support Delta's request  for pendente lite authority. Thus, in the U.S.-Lima Combination Service Proceeding, the Department granted Miami-Lima authority on a pendente litebasis finding 'special circumstances" based on '`the imminent peak travelseason". Order 95-7-23. It is noteworthy that the Lima award was made at theinception of the proceeding and before a show cause order issued. In the U.S.London 1993 Route Proceeding (Order 93-11-13), the Department granted American pendente lite exemption authority to serve Nashville-London and Raleigh/Durham-London, at the same time it issued a show cause order. Seealso, Order 98-2-12, U.S.-Japan Interim Frequency Allocation Proceeding, granting pendente lite authority to Delta, Continental, and American to implement new U.S.-Japan nonstop service; Order 95-2-52 (U.S.-Toronto), Order 95-2-53 (U.S.-Vancouver), Order 95-2-54 (U.S.-Montreal); Order 96-245 (U.S.-Toronto Second Year Service Proceeding); Order 96-5-21, (U.S.Toronto); Order 96-11-11 (U.S.-Toronto Third Year Service proceeding)

Counsel: Shaw Pittman, Robert Cohn, 202.663.8060

1999 U.S.-Italy Combination Service Case

OST-98-4854

Served February 26, 1999

Notice Shortening Answer Period

Delta's Pendente Lite Emergency Motion

By:  Paul Gretch

1999 U.S.-Italy Combination Service Case

OST-98-4854

March 3, 1999

Joint Statement of Ojections of City of Chicago and American Airlines Microsoft Word 97 Format

1999 US-Italy Combination Service Proceeding

Counsel:  Winthrop Stimson, Kenneth Quinn, quinnk@winstim.com for Chicago / American, Carl Nelson, 202-496-5647, carl_nleson@amrcorp.com

OST-98-4854

Dated March 2, 1999 Filed March 3, 1999

Answer of the Georgia and Atlanta Parties Microsoft Word 97 Format

1999 US-Italy Combination Service Proceeding

We appreciate and applaud the filing last week by US Airways, Inc., indicating that in order to maximize the value of these scarce transitional rights, the Department should move quickly to grant the authority to Delta to initiate the Atlanta-Rome service. US Airways recognized that this would allow Delta to begin marketing its new service, thus maximizing the public benefits of the new Italy service.

By:  Bill Alberger

Delta Air Lines, Inc.

OST-98-4854

Filed February 25, 1999 Issued March 4, 1999

Notice of Action Taken

Atlanta - Rome

Exemption under 49 U.S C. 40109 to the extent necessary for pendente lite authority to permit Delta to commence the sale and marketing of Atlanta-Rome nonstop service, pending final award of Department authority to serve the Atlanta-Rome market.

By Order 99-2-27, the Department tentatively selected Delta to provide nonstop service between Atlanta and Rome in the 1999 U.S. -Italy Combination Service Case. Delta requests immediate issuance of pendente lite authority to enable Delta to continence the sale and marketing of Atlanta-Rome nonstop service for the coming summer season, pending issuance of a final order in this proceeding. Delta maintains that special circumstances warrant the issuance of pendente lite authority' saying that awaiting issuance of a final decision in this case would place Delta at a competitive disadvantage because other U.S.-Italy carriers are currently selling their peak travel season U.S.-Italy services.

By:  Paul Gretch

1999 U.S.-Italy Combination Service Case

OST-98-4854

March 8, 1999

Answer of The Georgia and Atlanta Parties to Joint Statement of Objections of American Airlines and The City of Chicago Scanned Version Microsoft Word 97 Format

1999 US-Italy Combination Service Case

As a last gasp, Chicago and American attempt to rely on language from the 1996 U.S.-Italy Proceeding to the effect that it is somehow inconsistent with the Department's reasoning in Order 99-2-27. In 1996, the other two applicants were "new entrant" carriers. Neither US Air (its name at the time) nor Northwest had service to Italy. Both other applicants today already serve Italy, so the issues are far from similar. Further, the Delta proposal in this case is quite different from its proposal in 1996. Like all of the other arguments offered by Chicago and American, this one does not work either. The Department has already fairly considered all of these matters, and need only confirm the wisdom of its tentative decision in the Show Cause Order and award Delta daily nonstop service between Atlanta and Rome.

Counsel:  Bill Alberger, 703-461-3791

1999 U.S.-Italy Combination Service Case

OST-98-4854

March 10, 1999

Answer of Delta Air Lines to Objections Microsoft Word 97 Format Scanned Version

1999 US-Italy Combination Service Case

The Objectors try to distract attention away from the superiority of Delta's service proposal by arguing that Chicago allegedly has a larger catchment area than Atlanta. This argument is misplaced. The size of Chicago's catchment area, however large it may be, does not accurately reflect, to use the Objectors' own words, "the real measure of public benefits" because it does not establish "how many passengers will actually use the service."

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

1999 U.S.-Italy Combination Service Case

Order 99-4-21 OST-98-4854

Issued April 27, 1999 Served May 4, 1999

Final Order

1999 US-Italy Combination Service Case

By:  Bradely Mims

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