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OST-99-5155

Alaska Airlines

OST-99-5155

February 25, 1999

Application for Exemption

San Diego - Mexico City

Service options in the San Diego-Mexico City market are currently limited to one-stop and no-stop flights offered by Aeromexico. Effective April 11, Continental and Alaska will institute codeshare service offering the only scheduled nonstop flights available between the two cities. Alaska's proposed service will therefore increase the options available to the travailing and shipping public by adding a second U.S. carrier marketing presence in the market and providing a greater choice of fares, frequent flyer programs and branding. Alaska currently serves five cities in Mexico, having first inaugurated service in November 1988. Alaska already has a sizeable infrastructure in Mexico including central offices in Mexico City. . Alaska proposes to operate seasonal daily roundtrip service by placing its two-letter designator code on flights operated in the San Diego-Mexico City market by Continental.

Counsel: Squire Sanders, Marshall Sinick, 202.626.6651

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

OST-98-4832 OST-99-5164 OST-99-5154 OST-99-5155

March 11, 1999

Consolidated Answer of United Air Lines

US-Mexico; San Diego-Mexico City

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

Alaska Airlines, Inc.

Exemption for two years under 49 U.S.C. 40109 to provide the following service: Scheduled foreign air transportation of persons, property, and mail between the terminal point San Diego, California, and the terminal point Mexico City, Mexico. Alaska proposes to serve the markets pursuant to a code-share arrangement with Continental Airlines, Inc., whereby Alaska will place its designator code on Continental flights in the San Diego-Mexico City market. (Continental provides seasonal service in this market.)

By:  Paul Gretch

Alaska Airlines, Inc.

On behalf of Alaska Airlines, Inc., I am requesting a three month postponement of the dormancy deadline, currently September 2, applicable to the exemption authority Alaska received authorizing Alaska to place its code on Continental Airlines, Inc.'s flights in the San Diego, CA-Mexico City, Mexico market.  Alaska has not yet received the requisite approval from the Mexican DGAC and implementation of the Alaska-Continental codeshare will likely be delayed for several months. Accordingly, grant of a three month postponement would be in the public interest.

Counsel:  Squire Sanders, Marshall Sinick, 202.626.6651, msinick@ssd.com

Alaska Airlines, Inc.

Counsel: Squire Sanders, Marshall Sinick, 202.626.6651, msinick@ssd.com

Alaska Airlines, Inc.

Alaska Airlines, Inc. joins in the just submitted requests of both Continental Airlines, Inc. and Northwest Airlines, Inc. asking the Department to extend, once again, the dormancy deadline from December 1, 1999 until at least March 1, 2000 for these two carriers, as well as Alaska's U. S.-Mexico codeshare authority. In Alaska's case, Alaska's codeshare authority is limited to just the San Diego-Mexico City market in which Continental operates on a seasonal basis. As with Continental's and Northwest's request, this extension request is occasioned by continuing delays in the Mexican DGAC approval process. Alaska fully intends to implement its codeshare service with Continental as soon as both carriers have received the requisite approvals and no other carrier would be prejudiced by the requested extension. Accordingly, grant of the dormancy waiver until March 1, 2000 would be in the public interest.

Counsel:  Squire Sanders Dempsey, Marshall Sinick, 202.626.6600

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