ost994963

OST-99-4963

Northwest Airlines and Continental Airlines

OST-99-4963 Undocketed	January 4, 1998	Joint Petition for Reconsideration	American and Delta for Reconsideration of Order 98-12-12	HTML
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In light of the serious regulatory and due process violations, the Joint Petitioners urge the Department to reconsider Order 98-12-12 and upon reconsideration revoke the exemption, make relevant documents available for interested parties to inspect, and institute a proceeding to consider on the public record the public interest route transfer and/or exemption Issues.

Counsels: Shaw Pittman, Robert Cohn for Delta, 202.663.8060 and Carl Nelson, Jr., for American Airlines, 202.496.5647

Northwest Airlines, Inc. and Continental Airlines, Inc.

OST-99-4963

Janaury 14, 1999

Answer of Continental Airlines to Petition for Reconsideration

Northwest/Continental Transfer of Route Certificates

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Continental's independent directors have bargained at arm's length and secured firm, enforceable commitments that Northwest will not control Continental during the 10-year period covered by their governance and supplemental agreements. With fiduciary duties owed to the holders of shares representing 86% of Continental's equity, the Continental directors will maintain Continental's independence. Continental's other stakeholders - including its employees, its customers and the cities it serves - are also counting on Continental to retain its independence. Under these circumstances, any cloud over Continental's routes, such as a proceeding to consider whether Continental's hard won routes are being "transferred" to Northwest because of its restricted ownership of 46% (fully diluted) of Continental's voting rights, would not serve the public interest. Ironically, both American and Delta cite their comments in connection with Continental's applications for Japan authority despite the fact that neither carrier is implementing fully the authority it already holds for Japan routes. The Department of Justice complaint cites no concerns about Japan routes, and it should be evident to the Department that the real American/Delta objective is to prevent Continental and Northwest from bringing the public benefits of their alliance to passengers and shippers who will now have another global network competitive with American and Delta and the ability to compete with other global networks.

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

OST-99-4963

Janaury 14, 1999

Answer of Northwest Airlines to Petition for Reconsideration

Northwest/Continental

Northwest is not acquiring routes from Continental. Unlike other airline transactions the Department has reviewed where route transfer proceedings were required because they involved complete acquisitions, the Northwest/Continental transaction involves the purchase of less than 50% of the fully diluted voting ownership of Continental and the transaction's voting trust does not allow Northwest to exercise voting control over Continental.

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

Northwest Airlines, Inc. and Continental Airlines, Inc.

OST-99-4963 Undocketed	March 3, 1999	Independent Association of Continental Pilots' Petition for Intervention	Northwest and Continenental Codeshare
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All aircraft operated by Continental over the international routes claimed by American and Delta to have been transferred de facto to Northwest are flown by the petitioners' members. Necessarily, any curtailment in that flying would limit the pilots' promotional opportunities and potentially threaten their job security. The associational tie between the IACP and its members affords the Association standing to assert its members' interest in this proceeding. Intervention is necessary to assure that any order entered will :not lead to a curtailment of flying by Continental's pilots over the routes in dispute. The interests of the IACP's members in this matter cannot realistically be protected by means other than intervention.

Nor will their interests be adequately protected by the existing parties. Obviously, American and Delta have little incentive to prevent curtailment of the Continental pilots' flying. The interests of Northwest and Continental are colored, not just by traditional competitive considerations, but by the nature of the Alliance they have entered into, as well as by the transaction between them that is the subject of this proceeding. No one can say with antsy confidence at this juncture that either carrier's interests are aligned with those of the petitioner's members.

Counsel: Baptiste Wilder, Roland Wilder, 202-223-0723

Continental Airlines, Inc. and Northwest Airlines, Inc.

OST-99-4963

October 14, 1999

Additional Information

Northwest/Continental Transfer of
Route Certificates

Counsel: Northwest Airlines, Elliot M. Seiden and Continental Airlines, Rebecca G. Cox

Continental Airlines, Inc.

OST-99-4963

October 28, 1999

Certificate of Service

American and Delta - Joint Petition for Reconsideration of Order 98-12-12