OST-95-768 / OST-96-1381 / OST-97-2877 / Asiana Airlines / Korean Airlines / Intermodal Cargo / Seoul-Denver / Motion and Further Response of World Airways / November 5, 1997

Application of

for an amendment to exemption authority to conduct intermodal cargo services

Application of

for an exemption from 49 U.S.C. S 41301 (Seoul - Denver)

Application of

for an exemption from 49 U.S.C. 5 41301 and 14 C.F.R. Part 222

(intermodal cargo service)

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("Asiana") seek authority from the Department to authorize them to conduct operations to and within the U.S. which they are not presently authorized to conduct. World Airways, Inc. ("World") hereby respectfully files this motion for leave to file a response to KAL and the Georgia parties to ensure that the Department is fully informed with respect to World's position on these matters and to comment briefly on the presentations made by KAL and the Georgia parties. If the Department is disposed to consider the unauthorized documents tendered by World's opponents, it should also, in fairness, consider World's further response submitted herewith.

As noted, the applications pending in these dockets request authority from the Department which neither of the applicants has at the present time. No party denies that fact. Further, these applications seek authority which is extra-bilateral, and no party denies that fact. Since the Government of Korea continues to bar World from exercising operating authority clearly provided for and authorized under the U.S.-Korea bilateral agreement, world submitted answers in opposition to these applications and asked that the Department not approve them unless and until the Government of Korea comes into compliance with its bilateral obligations. In its answer to the KAL applications, world contended that

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For reasons that are not altogether clear, KAL and the Georgia parties now seem to believe it would be productive for them to reargue matters which have been the subject of prior briefing. Both KAL and the Georgia parties sing a similar song but use slightly different words. They do not even contend with World's principal contention, repeated above. Rather, they try to avoid it. Both suggest that although KAL and Asiana presently lack the authority they seek in these proceedings, neither carrier is really seeking new authorizations which should be evaluated as such. Both parties assert that since the carriers have authority similar to the authority at issue here, the new authority being requested is not really new authority at all. Not surprising, these strange contentions are not supported by precedent or even extended discussion.

It is almost as if the parties believe that if they say something often enough, it will become a reality. They even seem to think they benefit by disparaging World's contrary position. Indeed, the Georgia parties even contend that World's contention

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"is cute, but factually inaccurate and inappropriate." World is not certain as to how the Georgia parties justify the use of any of these three adjectives -- and the Georgia parties do not even try. obviously, if the Georgia parties were correct, they would be able to offer something more than the conclusory recitations they have offered in their unauthorized document.

Returning to the essentials, we have here a situation where World has been denied bilateral authority by the Government of Korea for over eighteen months, and the Korean carriers are seeking to implement authority which is clearly and indisputably extra-bilateral. World has previously asked the Department to impose sanctions against Korean carriers as a result of the Government of Korea's actions. World has also contended that it would be fair and balanced for the Department to(suspend or revoke the bilateral authority presently held and exercised by the Korean carriers as long as the Government of Korea is denying similar authority to World. So far, the Department has. not been willing to impose sanctions and, similarly, it has not even been willing to revoke extra-bilateral authority presently being exercised by the Korean carriers. But, at World's urging, it has generally refused to approve an application of KAL or Asiana which involved the exercise of the extra-bilateral authority.

Neither KAL nor the Georgia parties has offered any reason for the Department to deviate from its policy toward Korea and Korean carriers. The arguments these parties advance could be persuasive if there were any reason for the U.S. Government to be

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tolerant of the present position of the Government of Korea or optimistic that that position might change. But there is no apparent reason to be tolerant, and there is certainly no sign that a change in the Government's position is to be expected. On the contrary, we are now in the nineteenth month of intransigence on the part of the Government of Korea -- with no relief in sight. It would be far more productive for the Korean carriers and their allies to expend their energy trying to convince the Government of Korea to abide by its bilateral obligations rather than trying to convince the Department to overlook or ignore those transgressions.

Accordingly, World respectfully requests that the Department remain firm in denying to the Korean carriers any new or different extra-bilateral authority until such time as the Government of Korea permits World to operate in a manner consistent with the bilateral rights the U.S. Government has secured for it.

Respectfully submitted,

John L. Richardson

SEEGER POTTER RICHARDSON LUXTON JOSELOW & BROOKS

2121 K Street, N.W.

Suite 700

Washington, D.C. 20037

(202) 496-1234

November 5, 1997