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OST-99-5581

Mobile Airport Authority and Atlantic Coast Airlines, Inc.

OST-99-5581	April 22, 1999	Joint Application for an Exemption WordPerfect Scanned Copy	High Density Rule - Chicago O'Hare
		Exhibit 1: Top O&D Market from Chicago O'Hare without Nonstop Service (Under 1500 Miles)
		Exhibit 2:  Markets Gaining Single Connecting Online Service
		Exhibit 3:  Markets Gaining Service
		Exhibit 4:  UAL vs. AAL RJ Status Summary
		Exhibit 5:  Traffic, Revenue and Expense Forecast First 12 Months of Service
		Service List

Despite Mobile's economic strength and growth, its air service is dominated by a single carrier -- Delta Airlines. Eighty five percent of Mobile's O&D traffic is captured by Delta, with the majority moving over the Atlanta hub. Continental is a distant second with 9% of the market (flowing traffic over Houston) and Northwest with 6% (with nonstop service to Memphis). Domination of the Mobile market for air service by a single carrier has limited Mobile's access to the air transport market and produced only very limited competition in the Mobile market for air service. ACA's offer to provide twice daily regional jet service to Chicago's O'Hare Airport is pro-competitive and will open the Mobile market to United's network of domestic and international destinations.

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

Mobile Airport Authority and Atlantic Coast Airlines
Charleston County Aviation Authority and Atlantic Coast Airlines
Community of Savannah/Hilton Head

OST-99-5581 OST-99-5583 OST-98-3603

May 6, 1999

Consolidated Answer of American Eagle Airlines

High Density Rule - Chicago O'Hare

As we pointed out in our application in OST-99-5587, American's network at Chicago (American Airlines and American Eagle) is at a significant slot disadvantage compared to United's network at Chicago (United Air Lines and its United Express affiliates, including Air Wisconsin, Great Lakes Airlines, Atlantic Coast, and Trans States Airlines). United's network has access to a total of 1,052 O'Hare slots, while American's network has access to 916, resulting in a United network advantage of 136 daily slots, or 68 daily roundtrip services. In the interest of fostering two-carrier hub competition at O'Hare, the Department should not grant any additional exemption slots to use by United-affiliated carriers at O'Hare until American and American Eagle have achieved slot parity

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

Charleston County Aviation Authority and Atlantic Coast Airlines
Mobile Airport Authority and Atlantic Coast Airlines

OST-99-5583 OST-99-5581

May 12, 1999

Consolidated Reply of the Joint Applicants

High Density Rule - Charleston/Mobile-Chicago O'Hare

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It is compelling that Eagle virtually ignores these considerations in its answer to the joint applications. In these applications, the parties noted the fact that the Charleston and Mobile markets lacked nonstop O'Hare service and that these markets were logical candidates for the grant of slot exemptions based on their respective size and market potential. */ In addition, ACA presented a traffic forecast and profit and loss statement. Eagle made no attempt to rebut these facts and arguments. Its only response was to incorrectly focus on hub carrier competition at O'Hare. Perhaps Eagle is distracted by this competition issue and for this reason it failed to successfully market its O'Hare Shreveport and O'Hare-Montgomery service for which slots were awarded to it by exemption. Whatever the reason for Eagle's termination of Shreveport and Montgomery service, it is no answer to the ACA/Charleston/Mobile applications to ask that they be denied on grounds that are irrelevant to the DOT's consideration of the joint requests.

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

Mobile Airport Authority and Atlantic Coast Airlines, Inc.

Letter regarding a meeting discussing Mobile's need for Chicago service and its Chicago O'Hare slot exemption application

By:  G. Bay Haas, Executive Director

American Eagle Airlines, Inc.
Mobile Airport Authority-Atlantic Coast Airlines
Huntsville-Madison County Airport Authority
Greater Baton Rouge Airport District
Charleston County Aviation Authority-Atlantic Coast Airlines
National Airlines, Inc.

By this order the Department is amending its actions in Orders 98-4-21 and 98-9-24 by reallocating eight of the Chicago O'Hare Airport slot exemptions that were authorized to American Eagle in those orders. Specifically, slot exemptions that were previously designated for American Eagle to provide nonstop regional jet service to Montgomery, AL, and Shreveport, LA, are withdrawn and are redesignated for implementation of nonstop regional jet service between O'Hare and Baton Rouge, LA (two slot exemptions for American Eagle), Huntsville, AL (three slot exemptions for American Eagle) and Mobile, AL (three slot exemptions for Atlantic Coast Airlines). The reallocation of these slot exemptions is conditioned on their being used solely for implementation of service in the designated markets.

By:  Brad Mims

Atlantic Coast Airlines

Counsel:  Silverberg Goldman, Robert Silverberg, 202.944.3300

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