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Updated: Tuesday, May 13, 2008 5:03 PM


OST-2007-0021 - American - Allocation of Six Weekly Combination Frequencies - Chicago-Moscow

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American Airlines to Fly From Chicago to Moscow in 2008 - PRNewswire


American Airlines, Inc.

OST-2007-0021 - Exemption and Allocation of Six Weekly Combination Frequencies - Chicago-Moscow

October 16, 2007

Application for Exemption and Allocation of Frequencies

Applies for an exemption and the allocation of six weekly combination frequencies to engage in scheduled foreign air transportation of persons, property, and mail between Chicago, Illinois and Moscow, Russian Federation.

American proposes to begin Chicago-Moscow nonstop service on June 2, 2008 using 225-seat B767-300ER aircraft (30C/195Y).

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com



OST-2007-0007 - Baltia Air Lines - Certificate of Public Convenience - New York-St. Petersburg, Russia
OST-2007-0021 - American Airlines - Exemption and Allocation of Six Weekly Combination Frequencies - Chicago-Moscow

October 19, 2007

Consolidated Answer of United Air Lines

Both carriers assert that their proposed services are consistent with the terms of the U.S.-Russia Air Services Agreement but neither carrier offers any analysis of these assertions. Under the U.S.-Russia Agreement, the United States may designate a maximum of six carriers for combination services and may allocate a maximum of 63 weekly frequencies for such services. Non-operating combination carriers in a code-share arrangement must also be designated and have frequency allocations, with one-half frequency required for each roundtrip marketed under the code-share arrangement.

United is designated for U.S.-Russia combination services and holds an allocation of seven frequencies, as well as one of the five third-country code share arrangements, to allow it to offer code-share service on daily round trip flights operated by Lufthansa between Frankfurt and both Moscow and St. Petersburg. The dormancy conditions for United’s frequency allocation do not apply until 90 days after Russia allows United to restore its code-share service that was interrupted in 1995 when Russia refused to renew it. See, Order 1996-10-1.

United has no objection to the applications of Baltia and American so long as they do not affect the long-standing designation, frequency allocation, and third country code-share arrangement held by United. Beginning in 1994, United was offering code-share service with Lufthansa consistent with the terms of the U.S.-Russia Agreement, but Russia in 1995 unlawfully withheld authority for United to continue this service. See, Order 1998-2-3. United fully intends to restart this service as soon as the United States secures Russia’s commitment to abide by the terms of the U.S.-Russia Agreement and requires the retention of the rights it has been awarded in order to do so.

Counsel: United, Julie Oettinger, 202-296-2370, julie.oettinger@united.com



October 26, 2007

Re: Polling Results

American Airlines, Inc. has polled all U.S. carrier representatives served with the captioned application filed on October 16, 2007. No carrier objects to American's application.

On October 19, 2007, United Air Lines submitted comments stating that it has no objection to American's application so long as the frequency allocation sought by American would not affect the seven frequencies held by United for codeshare service with Lufthansa. In addition, Northwest Airlines has advised that it does not object provided that the seven codeshare frequencies historically allocated for service with KLM remain available for that purpose. Under the U.S.-Russia Air Transport Agreement, as amended, 63 weekly combination frequencies are authorized. Delta Air Lines holds 14 for own-metal operations (JFK-Moscow and Atlanta-Moscow), and other carriers hold codeshare-only frequencies (none of which are now being used). There are ample unallocated frequencies to satisfy American's request. In any event, own-metal service should have priority over codeshare service in limited-entry markets. See America West/Mesa, OST-2003-16444, Notice of Action Taken, February 13, 2004, p. 4.

Accordingly, American urges expedited approval of its application for Chicago-Moscow exemption authority and the allocation of six weekly frequencies. American needs DOT authorization as soon as possible so that it may undertake and conclude pre-launch activities and engage in advance reservations and sales for its proposed start-up on June 2, 2008.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com



Filed October 16, 2007 | Issued October 30, 2007

Notice of Action Taken | Word

Exemption for two years: Scheduled foreign air transportation of persons, property, and mail between Chicago, Illinois and Moscow, Russia.

Allocation of six weekly U.S.-Russia combination service frequencies for the scheduled foreign air transportation of persons, property and mail between Chicago, Illinois and Moscow, Russia.

By: Paul Gretch



November 8, 2007

Motion for Leave to File and Answer of Aeroflot Russian Airlines

American states that granting the authority it is requesting would be consistent with the U.S.-Russia Air Transport Agreement and would provide substantial public benefits. Those justifications for Department approval apply equally to the applications for code-share authority filed by Aeroflot and Northwest Airlines, Inc. on October 13, 2006 in Docket OST-2006-26106; by Aeroflot and Continental Airlines, Inc. on October 31, 2006 in Docket OST-2006-26257; and by Aeroflot and Delta Airlines, Inc. on January 3, 2007 in Docket OST-2007-26805. Each of those code-share applications remains pending before the Department.

Given the twelve months that have elapsed since submission of the code-share applications submitted by Aeroflot and Northwest and by Aeroflot and Continental and the ten months that have elapsed since submission of the code-share application submitted by Aeroflot and Delta, Aeroflot respectfully submits that the Department should approve the long pending applications for authority to code-share with Northwest, Delta, and Continental before acting on American's more recently filed application.

Counsel: Garofalo Goerlich, Don Hainbach, 202-776-3976, dhainbach@ggh-airlaw.com



May 7, 2008

Application for Allocation for One Additional Weekly Frequency

Hereby applies for the allocation of one additional U.5.-Russia weekly combination frequency in order to operate daily service between Chicago and Moscow starting the week of May 3, 2009. On May 6, 2008, United Air Lines, Inc. applied for the allocation of seven weekly frequencies to operate Washington (IAD)-Moscow service starting October 26, 2008 (OST-2008‑0157).

American is separately answering United's application in OST-2008-0157, advising that we do not object, provided that American's request here for one additional frequency is simultaneously granted. Such allocations - seven to United and one to American - will leave seven weekly frequencies unallocated and available.

The Department's policy is to grant limited entry authority to carriers with firm service plans. See Notice of Action Taken, OST-2007-28057, June 29, 2007. American has firm plans to operate daily Chicago-Moscow service starting next spring. Our request is consistent with the public interest, and should be granted at the same time the Department acts in United's docket.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com



OST-2008-0157 - United Air Lines - US-Russia Frequency Allocation
OST-2007-0021 - American Airlines - Allocation of Six Weekly Combination Frequencies - Chicago-Moscow


May 8, 2008

Consolidated Answer of Aeroflot Russian Airlines

Aeroflot does not dispute that the United and American requests are consistent with the Agreement. However so are the applications for code-share authority filed by Aerotlot and Northwest Airlines, Inc. on October 13, 2006 in Docket OST-2006-26106; by Aerotlot and Continental Airlines, Inc. on October 31, 2006 in Docket OST- 2006-26257; and by Aerotlot and Delta Airlines, Inc. on January 3, 2007 in Docket OST-2007-26805. Each ofthose code-share applications remains pending before the Department.

The bilateral code-share authority requested in each ofthe three code-share applications would be at least as consistent with the U.S.-Russia Air Transport Agreement as the services proposed by United and American. Given the eighteen months that have elapsed since submission of the code-share applications submitted by Aerotlot and Northwest and by Aeroflot and Continental and the sixteen months that have elapsed since submission of the code-share application submitted by Aeroflot and Delta, Aeroflot respectfully submits that the Department should approve the long pending applications for authority to code-share with Northwest, Delta, and Continental before acting on United and American's more recently filed applications.

Counsel: Garofalo Goerlich, Don Hainbach, 202-776-3976


OST-2007-0021 - American Airlines - Allocation of Six Weekly Combinatoon Frequencies - Chicago-Moscow


May 12, 2008

Re: Polling Results

American Airlines, Inc. has completed its poll of interested parties in connection with our application of May 7, 2008 in the captioned docket. We are seeking the allocation of one additional U.S.-Russia weekly combination frequency to increase service between Chicago and Moscow effective the week of May 3, 2009.

Continental, Delta, and Northwest do not object, provided that fulfillment of American's request does not disturb their respective holdings of dormant codeshare frequencies. United does not object provided that its application for seven U.S.-Russia frequencies, filed on May 6, 2008 in OST-2008 0157, is immediately granted.

On May 7, 2008, Baltia Air Lines, a non-operating start-up applicant in OST-2007-0007, advised by email that it objects to American's application "to bank any frequency until next year." We question the standing of Baltia to object. Founded in 1989, Baltia was granted certificate authority and frequencies by Order 1996-2-51, February 26, 1995, but did not start service. That authority remained dormant for almost five years and was revoked by Order 1999-12-6, December 8, 1999.

Nearly eight years later, on October 3, 2007, Baltia filed another application, in OST-2007-0007, which remains pending. Baltia has made no showing that grant of one additional weekly frequency to American would jeopardize the allocation of one weekly frequency required by Baltia to commence its proposed service, since seven weekly frequencies will remain unallocated even after the award of seven to United and one to American. In these circumstances, the Department should grant American's application in this docket at the same time it grants United's application in OST-2008-0157.

Counsel: American, Carl Nelson, 202-496-5647


May 12, 2008

Answer of United Air Lines

By its application American seeks the allocation of one additional frequency under the U.S.‑Russia ASA in order to start a seventh weekly flight between Chicago and Moscow on May 3, 2009. American will start six weekly flights next month under a previously granted allocation.

United has also filed an application for an allocation of seven weekly U.S.-Russia frequencies to start daily Washington-Moscow service in October 2008. See OST-2008-0157. Pursuant to polling, United has determined that no carrier objects to United's application. United has no objection to the grant of American's application so long as that does not affect the immediate grant of United's application. As United noted in its application, there are sufficient frequencies available to grant both of these applications.

Counsel: United, Jeffrey Manley, 301-229-8571


OST-2008-0157 - United Air Lines - US-Russia Frequency Allocation

May 12, 2008

Re: Polling Results

This is to advise you that, pursuant to a polling, United has determined that none of the carriers served with United's referenced application for seven additional U.S.‑Russia frequencies will object to that application.

One carrier, Baltia Air Lines, Inc., urged that United's frequencies not remain "in effect for an indefinite period [to be] available to other carriers who wish to provide service, if United is not operating on those frequencies." The Department relies upon dormancy conditions, rather than temporary allocations, to accomplish the goal stated by Baltia. United has consented to the imposition of dormancy conditions on the seven new frequencies. To the extent that Baltia may be referring to United's existing allocation of seven frequencies, for which dormancy conditions have been waived, it should submit its comments in OST-1996‑1672.

American has applied for one additional frequency to start an additional weekly service next summer and urges that grant of United's allocation not delay the allocation of that frequency to American. Grant of United's application will leave eight frequencies unallocated, one of which will be available for the allocation that American is seeking. In these circumstances, United urges the Department to grant United's unopposed application for seven additional frequencies without further delay and without awaiting the answer date of May 21, 2008. United urgently needs this authority to begin marketing these services immediately.

Counsel: United, Jeffrey Manley, 301-229-8571


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