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Updated: Wednesday, May 14, 2008 8:19 AM


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

http://www.united.com/


United Air Lines, Inc.

OST-2008-0157 - Frequency Allocation - US-Russia

May 6, 2008

Application for a Frequency Allocation

United applies for an allocation of seven weekly frequencies under the US-Russia Air Services Agreement to operate daily scheduled nonstop combinations services between Washington, DC and Moscow, Russia. United will operate its Washington-Moscow service from its hub at Washington Dulles International Airport. In Moscow, United will serve Domodedovo Airport.

United is already authorized to operate services between Washington and Moscow under its Certificate of Public Convenience and Necessity for Route 603.

United proposes to start its daily nonstop service between Washington and Moscow on October 26, 2008. It will initially use B767-300 equipment from its existing fleet configured with 193 seats (10F 32C 151Y). The schedule is as follows:

  • Flt. # UA 964 - dep IAD 1645 / arr DME 1030 (next day)
  • Flt. # UA 965 - dep DME 1220 / arr IAD 1535 (same day)

Counsel: United, Jeffrey Manley, 301-229-8571, jeffrey.manley@united.com



May 7, 2008

Answer of American Airlines

American does not object to United's request, provided that the Department simultaneously grants our application, filed today in OST-2007-0021, for allocation of one additional frequency for Chicago-Moscow service effective next spring.

In its application, United states that "according to information from the Department, there are currently 15 frequencies still remaining for allocation. The grant of United's request will, therefore, leave an additional eight frequencies unallocated."

There are ample frequencies available to meet the requests of American and United, and the Department should simultaneously grant both applications.

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

May 10, 2008

Re: Combined Answer of Baltia Air Lines

Baltia opposes United’s application for an additional 7 frequencies and American’s application for an additional one frequency on the grounds that United does not need additional frequencies and American is banking the frequency, not intending to use it for more than a year. In principal, Baltia opposes the holding of frequencies for an indefinite period.

Baltia has no opposition to United commencing daily scheduled nonstop service between Washington, D.C., and Moscow provided it uses the seven frequencies it has been holding unused for the past 13 years, provided further that if United does not commence operations on the stated date, those frequencies held for past 13 years expire for dormancy.

Baltia has no opposition to American reapplying next year for a frequency to increase its service but applying more than one year prior to initiating an increase of one day’s service seems unreasonable. It appears that American may be concerned that there may not be a frequencies available next year.

Obviously, U.S. airlines have not developed the U.S.-Russia market. The benefit and value of the Russian market have gone to foreign carriers. If frequencies are neither used nor available, U.S. carriers will not be the ones who develop, and enjoy the benefits of, the market in the future.

Baltia has overcome odds in raising the capital for a start-up airline to enter this market. After having established its initial operations, Baltia has an interest to develop daily service to St. Petersburg, daily service to Moscow and to other cities in Russia. Baltia does not want to be precluded from developing this market because carriers have banked the US-Russia frequencies. The Department of Transportation is the depository of frequencies, not private carriers. The Department’s stated policy is to use frequencies or loose them.

Counsel: International Business Law Firm, Steffanie Lewis, 202-296-1111, slewis@iblf.com


OST-2007-0021 - American Airlines - Allocation of Six Weekly Combinaiton 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 DOT-OST-2008 0157, is immediately granted.

On May 7, 2008, Baltia Air Lines, a non-operating start-up applicant in DOT-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 99-12-6, December 8, 1999.

Nearly eight years later, on October 3, 2007, Baltia filed another application, in DOT-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 DOT-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 Docket DOT-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 Docket DOT-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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