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Order 2006-1-12 - US-Ukraine Frequencies - Final Order
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US-Ukraine Frequencies Order 2006-1-12 Issued and Served January 18, 2006 By this order, we make final our tentative findings and conclusions set forth in Order 2005-12-6 and allocate Delta Air Lines four weekly frequencies to provide scheduled combination nonstop U.S.-Ukraine services. We do not agree with United’s argument that the record in this case is inadequate. The materials we needed to reach a decision were either provided by the parties or were officially noticeable and thus already available to the Department during the show-cause stage of this proceeding. As to Delta’s frequency needs, Delta has indicated that it requires four additional frequencies, in combination with one of its existing frequencies currently used for code sharing, to operate its proposed five-times-a-week nonstop service. Finally, Delta has confirmed that it will fully utilize its remaining 2.5 frequencies to operate five-times-a-week code-share service with Air France under the frequency conversion provisions of the agreement. The existing record of this case shows that Delta would introduce the first and only U.S.-flag nonstop service to Ukraine while United would not; that, to the extent United would use any frequencies awarded, it would use them to provide additional services of the same type it already provides, i.e., third-country code-share services; that Delta has proposed using all four available frequencies; and that United currently has seven frequencies - the most of any U.S. carrier now serving Ukraine - whereas Delta currently has only 3.5. Thus, an award of four frequencies to Delta would result in these two carriers each holding a level of frequencies that would promote competition and greater consumer choice, whereas an alternative award would not. Based on these facts of record, we conclude that selecting Delta would provide the greatest public benefits in this case. We will require that Delta inaugurate service by June 1, 2006. Any frequency not inaugurated by the deadline will revert to the Department. Should Delta conclude that because of unforeseen circumstances it needs additional time to start up, it must seek our leave in the form of a timely-filed formal request for waiver of the start-up condition. Such a request must be served on all parties to this proceeding. By: Michael Reynolds |
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