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OST-99-5454

New US-Russia Opportunities

Alaska Airlines, Inc.

OST-99-5286 March 29, 1999 pdficon.gif (881 bytes)Response of Alaska Airlines Russian Far East Codeshare with Reeve Aleutian

In its notice of March 18, 1999 in this docket, the Department appears to be taking the position that Alaska's single frequency should now be open to reallocation. Alaska submits that it should be permitted to retain that frequency not only because the same reasons that lead to the issuance of a waiver last year continue to apply fully, but also because Alaska has now reached an agreement with Reeve, and expects to begin codesharing operations with that carrier soon. These operations will fully utilize the single frequency that Alaska currently has. Alaska therefore submits that withdrawal of its only frequency and complete removal of its presence from the market in inappropriate. Alaska would also note that the demands for frequencies between the United States and the Russia of which it is aware could readily be accommodated without removing Alaska's only remaining foothold in this market.

Alaska and Reeve reached an understanding concerning codesharing services between Anchorage, on the one hand, and Petropavlosk-Kamchatski and Yuzhno-Sakhalinsk on the other hand within the past few days. The parties intend to implement this understanding as soon as possible after the necessary notifications are given to the various CRS's. The markets to be served on a codeshare basis are those between Anchorage, Alaska on the one hand, and Petropavlovsk-Kamchatski and Yuzhno-Sakhalinsk, Russia on the other hand. This will permit Alaska to resume service between the various points on its system and the Russian Far East. Alaska anticipates codesharing with Reeve on both of the two frequencies that it currently operates in these markets.

Counsel:  Alaska and Squire Sanders, Marshall Sinick, 202-626-6651

American Airlines, Inc.

OST-99-5454
OST-98-4522
OST-98-4328
March 29, 1999 pdficon.gif (881 bytes)Application of American Airlines US-Russia via Helsinki Codesharing with Finnair; US-St. Petersburg Codesharing with Finnair; Chicago-Mosco
    Service List  

American Airlines, Inc., pursuant to the Department's Notice of March 18, 1999 (New U.S.-Russia Opportunities), hereby applies for a third-country codesharing designation and an allocation of seven weekly combination service frequencies in order to serve between U.S. points, on the one hand, and St. Petersburg and Moscow, Russia, on the other, under a codesharing arrangement with Finnair Oyj. In addition, American seeks underlying route authority to serve St. Petersburg (OST-98-4522), and amendment of its Chicago-Moscow exemption granted by Notice of Action Taken, September 18, 1998 in OST-98-4328) so as to enable American to serve Moscow from U.S. points.  American and Finnair will operate daily service to each Russian point, thus requiring the allocation of seven weekly frequencies, since codesharing services count as one half of a frequency for a U.S. carrier placing its code on flights in the U.S.-Russian market operated by another airline. The American/Finnair service to Russia will operate on a year-round basis.

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

Continental Airlines, Inc.

OST-99-5286 March 29, 1999 pdficon1.gif (224 bytes)Amendment to Application of Continental Airlines

Microsoft Word 97 Format
Scanned Version

Houston/Newark/Miami-Moscow/St. Petersburg Codeshare with Air France
    Service List  

Continental will place its code on seven weekly Air France flights between Paris and Moscow and seven weekly Air France flights between Paris and St. Petersburg. Continental will offer Houston/Newark/Miami-Moscow/St. Petersburg on-line service using Air France's Paris-Moscow B-737-300 and A-320 service with seat configurations of 18 First/102 Coach and 21 First/144 Coach respectively and Paris-St. Petersburg B-737-300 and B-737-500 service with seat configurations of 18 First/102 Coach.  Continental will be operating Houston/Newark-Paris service using DC-10-30 and B-777-200 aircraft with a DC-10-30 seat configuration of 38 BusinessFirst/204 Coach and a B-777-200 seat configuration of 48 BusinessFirst/235 Coach. Continental will also be code-sharing on Houston/Newark/Miami-Paris flights operated by Air France using B-777-200, B-747-100 and A-340-300 aircraft with a B-777-200 seat configuration of 12 First/56 Business/202 Coach, a B-747-100 configuration of 6 First/41 Business/332 Coach and an A-340-300 configuration of 6 First/38 Business/212 Coach.

Counsel:  Continental and Crowell Moring, Bruce Keiner, 202-624-2500

Delta Air Lines, Inc.

OST-99-5286 March 29, 1999 pdficon1.gif (224 bytes)Application of Delta Air Lines

Microsoft Word 97 Format
Scanned Version

Moscow/St. Petersburg Codeshare with Air France
    Service List  

Delta hereby applies for a year-2000 designation to provide third-country codeshare service between the United States and Russia in conjunction with Air France via Paris, France. Delta also requests seven weekly combination frequencies to provide the proposed third-country codeshare service.  Delta proposes to offer seven weekly roundtrip codeshare flights to Moscow and seven weekly roundtrip codeshare flights to St. Petersburg on flights operated by Air France to and from Paris, beginning January 22, 2000. Air France operates Boeing 737 aircraft between Moscow and Paris and Boeing 737 and Airbus 320 aircraft between St. Petersburg and Paris. Air France’s Boeing 737 aircraft is configured with 24 business seats and 78 economy seats. Air France’s A-320 aircraft has 18 business seats and 132 economy seats.

Delta currently operates fourteen weekly codeshare flights to Moscow and three weekly codeshare flights to St. Petersburg with Swissair. Since the MOC limits the number of codeshare flights in any city-pair to no more than seven per week, Delta will be required to cut its current Moscow service in half, a result contrary to Delta’s longstanding objectives to increase U.S.-Russia codeshare service. The Department is well aware of Delta’s plans to increase third-country codeshare service to Russia. Indeed, the Department allocated to Delta additional frequencies to implement expanded service, but Delta’s plans were blocked by Russia’s refusal to allow Delta to conduct additional codeshare flights. In light of Delta’s inability to operate its planned service increases due to the actions of the Russian Federation, the Department granted Delta waivers of the dormancy requirements applicable to Delta’s frequencies. The new rights under the MOC now give the Department the important opportunity to allow Delta to achieve its long planned objective to expand its U.S.-Russia service. An award to Delta of a year-2000 designation would enable it to preserve existing Moscow service levels that Delta has provided in the marketplace for over two years. As the Department has stated, "it is in the public interest . . . to facilitate continuation of the existing incumbent carrier services in the market." Order 94-9-1 at 6. It would also allow Delta to increase service to St. Petersburg from three weekly flights to seven weekly flights.

Delta currently operates fourteen weekly flights between Frankfurt and Mumbai (seven in each direction). Delta has determined that it could operate to Mumbai over a more advantageous routing via Russia airspace, without overflying Afghanistan, and desires to do so immediately.  Delta submits that there are at least nineteen weekly overflights that should be subject to allocation in this proceeding, not five as suggested by the Department’s Notice. United terminated all direct services to India and is not using any of its fourteen weekly frequencies. United’s only service to India involves a codeshare operation in conjunction with flights operated by Lufthansa.

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

Federal Express Corporation

OST-99-5286 March 29, 1999 pdficon.gif (881 bytes)Application of Federal Express for Allocation of Overflight Frequencies US-Russia Overflight Frequencies
    Service List  

Federal Express Corporation hereby applies, in response to the Notice of the Department of Transportation (the Department), served March 18, 1999 in the captioned proceeding, for grant of twelve (12) one-way Russia overflight frequencies so as to authorize Federal Express to operate six (6) scheduled all-cargo flights a week in each direction between Paris, France, and Subic Bay, Philippines, over the Tashkent overflight routing. Federal Express requests that the foregoing frequency allocation be granted for a period of two years. Federal Express urges the Department to establish a further opportunity for competing applicants for any ``over-subscribed" opportunity to submit additional factual evidence and carrier-selection arguments in support of their applications.

Counsel:  Federal Express and Shaw Pittman, Nathaniel Breed, 202-663-8078

Kitty Hawk International, Inc.

OST-99-5286
OST-99-5456
March 29, 1999 pdficon.gif (881 bytes)Application of Kitty Hawk for an Exemption US-Moscow/St. Petersburg
    Service List  

Engage in scheduled foreign air transportation of property and mail between anile point or points in the United States vi a intermediate points to Moscow and St Petersburg, Russia. KHI seeks the right to conduct three weekly round trips scheduled all-cargo flights on the requested route KHI also requests authority integrate this exemption authority with all services KHI is otherwise authorized.

Counsel:  Bagileo Silverberg, Robert Silverberg, 202-944-3300


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