Docket OST-97-2803 / Docket OST-97-2822 / US-Egypt / Reply of Delta / August 26, 1997
U.S.-EGYPT THIRD-COUNTRY CODE-SHARE OPPORTUNITIES
Applications of
DELTA AIR LINES, INC.
CONTINENTAL AIR LINES, INC.
REPLY OF DELTA AIR LINES, INC.
On August 21, 1997, the Department received Answers in the captioned proceeding submitted by
Continental Airlines, Inc. ("Continental"), American Airlines, Inc. ("American") and Delta Air Lines, Inc. ("Delta"). The Answers of Delta and American demonstrate that Continental is ineligible for an award at this time. Furthermore, an award to Delta would provide substantially greater service and competitive benefits than Continental, particularly with Delta's ability to provide stronger network competition against the Northwest and United alliance services to Egypt. Nothing said in Continental's Answer cures its fatally deficient application or otherwise makes up for the meager benefits of its proposal. Accordingly, the Department should promptly proceed to grant Delta's application, so that Delta can begin planning and marketing efforts immediately.
Reply of Delta Air Lines, Inc.
Page 2
There is no denying the fact that France has renounced its bilateral agreement with the United States and that there is insufficient reciprocity to support Continental's proposed code-share service with Air France. In this context, Continental's proposed services and November 1, 1997 start date are purely hypothetical and ineligible for regulatory consideration. See
Order 97-2-26 at 4.Moreover, Continental as much as concedes that it would offer inferior service and competitive benefits than Delta. With nothing else to rely on, Continental tries to advance the novel argument that because it is not a major alliance carrier and offers only limited transatlantic service, it should receive priority for an award. This false logic would deny consumers the benefit of new alliance competition between the U.S. and Egypt as well as the substantially greater service options to be offered by Delta. Once a bilateral is in place that would support such services, Continental remains free to grow its transatlantic alliance aspirations with Air France or other transatlantic operators.
Reply of Delta Air Lines, Inc.
Page 3
WHEREFORE, for all the foregoing reasons, Delta Air Lines, Inc. respectfully requests that the Department promptly grant its application for a designation to enable Delta to provide third-country code-share service between the United States and Egypt.
Respectfully submitted,
Robert E. Cohn
Alexander Van der Bellen
SHAW, PITTMAN, POTTS & TROWBRIDGE
2300 N Street, N.W.
Washington, D. C. 20037
(202) 663-8060
Counsel for DELTA AIR LINES, INC.