OST-97-3034 / US Airways / Pittsburgh-Paris / Answer of United Air Lines / November 5, 1997
Application of
US AIRWAYS, INC.
for exemption pursuant to 49 U.S.C.) §40109
(Pittsburgh - Paris)
ANSWER OF UNITED AIR LINES, INC.
United Air Lines, Inc. ("United") submits the following answer to the above-captioned application of US Airways, Inc.:
1.
By its application US Airways seeks exemption authority to operate a daily flight in scheduled service between Pittsburgh and Paris. US Airways proposes to begin this service in April 1998.2. US Airways cites the "positive direction" taken at the last round of talks and urges grant of its exemption is consistent with "immediate opportunities" for new U.S. carrier services next year. These opportunities, however, are not so immediately available as US Airways claims. Indeed, in the very next phrase, US Airways admits that these opportunities will arise "either as a result of a final or interim agreement or simply as the product of reciprocity and comity."
US Airways Application at 1.3. US Airways is hardly unique in wishing that new opportunities to increase services to France were "immediately" available. United also has plans to increase services to Paris
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in the Summer 1998 season. In addition, United has plans which have been deferred for over three years to expand code-share services both to points in France and via France to points in third countries.
Unlike the other major U.S. transatlantic carriers, United lacks access to the New York-Paris market, one of the most important markets between the U.S. and France. Although United has been seeking entry to the New York-Paris market for over 6 1/2 years, the Department has refused to take action on United's pending exemption application. 1/ Meanwhile, American, Continental, Delta, TWA and Tower are all operating New York-Paris service. Air France is also a major competitor at New York, but United is unable to respond with its own service offering at that important U.S. gateway.
Because of its inability to compete at the major U.S. gateway to Paris, United has been unable to realize its full potential as a competitor for U.S.-France traffic. Moreover, it appears that there will be no opportunity for United to introduce service between New York and Paris under the interim bilateral framework now being negotiated between the U.S. and France. Indeed, as a result of France's denunciation of the U.S./France bilateral air services agreement, United has had to reduce its service between the U.S. and France while Air France has actually
1/ See Docket 47513.
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increased its level of service. Under these circumstances, United's only alternative is to introduce additional services to Paris from its hubs. This is precisely what United plans to do next summer.
4. US Airways' aspirations to increase US-France service are also no doubt shared by carriers other than United. These aspirations-cannot, however, be met until the US and France have reached some agreement or understanding to allow new services to be implemented. France has refused to allow new services such as those now proposed by US Airways under principles of comity and reciprocity since it denounced the bilateral agreement.
5. United fully shares US Airways' hopes and expectations that new services such as those proposed by US Airways and United can be implemented next spring. There is, however, the possibility that whatever agreement is reached between the US and France will impose limits on new U.S. carrier services for an interim period. These limits may or may not require the Department to choose among the U.S. carrier services that are proposed for introduction next year. /2
6. United hopes that there will be sufficient new opportunities to meet all carriers' needs. Until the scope of
2/ It is at least possible that in addition to its exemption authority, US Airways will require an allocation of frequencies for its proposed Pittsburgh-Paris services. If that is the case, United and other carriers proposing new services to France would also need frequency allocations.
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these new opportunities have been defined, however, it would be premature for the Department to grant US Airways instant application. US Airway certainly has no priority over United in gaining additional access to Paris given the subordinate position to which United has been relegated by the French denunciation of the agreement. 3/ If the Department is prepared to entertain such applications in advance of an agreement, then United reserves the right to submit detailed information regarding its own proposed services to France for contemporaneous consideration.
Respectfully submitted,
JOEL STEPHEN BURTON
GINSBURG, FELDMAN and BRESS CHARTERED
1250 Connecticut Avenue, N.W.
Suite 800
Washington, D.C. 20036
(202) 637-9130
Counsel for UNITED AIR LINES, INC.
DATED: November 5, 1997
3/ US Airways, unlike United, has been able to increase services to Paris from its principal transatlantic gateway at Philadelphia notwithstanding French denunciation. Thus, US Airways now operates two daily flights between Philadelphia and Paris.