OST-96-1381 / OST-97-2877 / Korean Air Lines / Seoul-Denver / Intermodal Cargo / Answer of World Airways / September 18, 1997

Application of

KOREAN AIR LINES CO., LTD. | Docket OST-96-1381

for an exemption from 49 U.S.C. § 41301

(Seoul - Denver)

 

Application of

KOREAN AIR LINES CO., LTD. | Docket OST-97-2877

for an exemption from 49 U.S.C. § 41301 and 14 C.F.R. Part 222 )

(intermodal cargo service)

 

ANSWER OF WORLD AIRWAYS. INC.

 

On September 3, 1997, Korean Air Lines Co., Ltd. ("KAL") filed applications in the captioned dockets requesting amendments to two exemptions awarding extra-bilateral authority to it. World Airways, Inc. ("World") hereby submits its consolidated answer in opposition to approval of either of the applications.

The Department and KAL are fully informed regarding the failure and refusal of the Government of Korea to abide by its bilateral obligations and permit World to provide service it is authorized and designated to provide. The status of this matter was last described by World in an answer it filed in opposition to renewal of two KAL extra-bilateral exemptions, one of which

 

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KAL seeks to amend in this proceeding. 1/ Unfortunately, while some of the times, places and details have changed, the larger problem remains unresolved, and there is no visible sign of significant movement by the Government of Korea -- despite the ongoing efforts of World and the U.S. Government. 2/ With few exceptions, the Department has consistently supported U.S. carriers in their disputes with foreign governments at least by refusing to grant applications for extrabilateral authority to designated carriers of the foreign government when those applications have been opposed by the U.S. carrier denied bilateral rights by the foreign government involved. KAL has offered no reason why the Department should deviate from that policy in this case, and there is no such reason. Accordingly, the Department should continue to adhere to its established policy, support World in this forum as it has in direct communications with the Government of Korea, and refuse to approve either of the KAL applications pending in these dockets. While the Department's supportive policy does not create complete fairness for World or balance in the U.S.-Korea aviation trade

1/ Presumably because of World's opposition, the Department has refused to act on either of the renewal applications.

2/ World respectfully requests that the evidence and argument contained in its answer dated July 7, l997 in Dockets OST-95-234, OST-96-1380 and OST-96-1381 be incorporated herein by reference. For the convenience of the Department and all parties, World has appended to this answer a copy of its July 10, 1997 answer in Dockets OST-95-234, OST-96-1380 and OST-96-1381.

 

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sector, 3/ a refusal to support a seriously disadvantaged U.S. carrier at least to this extent would constitute a very serious breach of discretion by the Department for no valid purpose.

Accordingly, World respectfully requests that the Department refuse to act on either of the pending applications.

Respectfully submitted,

 

John L. Richardson

SEEGER POTTER RICHARDSON

2121 K Street, N.W.

Suite 700

Washington, D.C. 20037

(202) 496-1234

September 18, 1997

3/ Korean carriers retain access to and revenues from unfettered access to bilateral and extra-bilateral markets while World is deprived of access to markets clearly covered by the bilateral agreement.