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OST-99-6686

Chattanooga Metropolitan Airport Authority and American Eagle Airlines, Inc.

In order to avoid the loss of this valuable service to O'Hare, the Chattanooga Metropolitan Airport Authority and American Eagle have agreed that, contingent upon favorable DOT action regarding the transfer of slot exemptions requested herein, that Eagle will provide three daily regional jet roundtrip flights between Chattanooga and O'Hare, just as Trans States has provided the community for nearly 2 years. Toward this end, we ask the Department to transfer six slot exemptions to Eagle that are as close to, or identical with, the times operated by Trans States so that the Chattanooga community can continue to enjoy the thrice daily regional jet service pattern that it has had.

Counsel:  Chattanooga Airport, Hugh Davis, 423.855.2200 and American Eagle, William Ris

American Eagle Airlines, Inc. Atlantic Coast Airlines, and Air Wisconsin

On December 17, 1999, letters, which the Department is treating as applications, were submitted in these dockets by Chattanooga/American Eagle Airlines, and jointly by Atlantic Coast Airlines, Air Wisconsin, and TransStates Airlines, seeking the reallocation of certain Chicago O'Hare slot exemptions that were previously allocated in Order 98-4-21 to TransStates to serve Chattanooga, TN, Roanoke, VA, and Tri Cities, TN/VA. Under these proposals, TransStates' services would be replaced by American Eagle at Chattanooga, by Atlantic Coast at Roanoke, and by Air Wisconsin at Tri-Cities. In all cases the applicants seek to be enabled to maintain the same frequencies and departure and arrival times currently operated by TransStates to the extent possible.

In previously making the allocations to TransStates, the Department noted that the communities' lack of nonstop service to O'Hare was an exceptional circumstance justifying the grant of slot exemptions to the carrier under 49 U.S.C. 41714. TransStates has indicated that it will redeploy the aircraft that serve these three points after February 8, 2000. Atlantic Coast and Air Wisconsin have requested that approval be given to their transfer requests by December 22,1999, in order to ensure that service to Roanoke and Tri-Cities can be continued without interruption, since it will take some time to arrange for new crew and aircraft schedules. The Chattanooga/American Eagle letter requested that DOT exercise its authority on the matter "as expeditiously as possible" to ensure continued service to Chattanooga.

Under our Rules of Practice, the Department in its discretion may set appropriate time periods for responsive pleadings, see 14 C.F.R. Part 302.18(c). The requests for expedition in this matter are considered well-founded. Answers to the Applications are due December 22, 1999; should there be answers, replies shall be due December 23, 1999.

By:  Bradley Mims

Trans States Airlines, Inc., Atlantic Coast Airlines, Air Wisconsin Airlines Corp., Chattanooga Metropolitan Airport Authority and American Eagle Airlines, Inc.

We will reallocate five of the 16 O'Hare slot exemptions previously granted to.Trans States to American Eagle for service at Chattanooga, six to Air Wisconsin for service at Tri-Cities, and five to ACA for service at Roanoke. By reallocating the slot exemptions in this fashion, we are enabling the replacement carriers to maintain the same frequencies and comparable departure and arrival times that are currently operated by Trans States with little or no hiatus in service.

We affirm the findings we made in Order 98-4-21 that important transportation benefits would be realized by the grant of slot exemptions for direct service between O'Hare and the three designated communities. Trans States' planned cessation of service in the subject markets does not reflect a lack of traffic response. Rather, it is prompted by the decision reached mutually between Trans States and United to discontinue their codesharing relationship, which will necessitate a redeployment of Trans States' aircraft fleet. The proposed replacement operations by ACA at Roanoke, Air Wisconsin at TriCities, and American Eagle at Chattanooga are enthusiastically endorsed by all of the civic parties, and we are satisfied that those carriers' proposals are operationally and financially viable. In addition, we note that no answers were filed in opposition to the proposed reallocation of the exemptions.

By:  Bradley Mims

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