OST-96-1131 / United Air Lines / Amendment to Certificate, US-Japan / February 6, 1998

NOTICE: United requests that this application, as amended, be processed under expedited show-cause procedures pursuant to Subpart Q of 14 CFR Part 302. Any person who wishes to support or oppose this application, as amended, must file an answer by March 6, 1998 and must serve that answer on United Air Lines, Inc., and all persons served with this amendment.

Application of

UNITED AIR LINES, INC. / Docket OST-96-1131

for a Certificate of Public Convenience and Necessity, pursuant to 49 U.S.C. §41101) (U.S.-Japan)

United Air Lines, Inc. ("United"), pursuant to 49 U.S.C. § 41101, and Rule 5 and Subpart Q of the Department's Procedural Regulations, hereby amends its above-captioned application dated March 4, 1996, to request that its Certificate of Public Convenience and Necessity for Route 130 be amended to add a new segment authorizing United to offer scheduled foreign air transportation of persons, property and mail between any point or points behind the U.S., any point or points in the U.S., any intermediate point or points, any point or points in Japan, and any point or points beyond Japan. United also requests authority to integrate its new services described above with other authorized services consistent with outstanding international agreements. Because United proposes to begin Chicago-Osaka services pursuant to this authority in early July 1998, expedited action on this application is requested consistent with the

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In support of its application, as amended, United submits the following:

1. Certificate Authority. United hereby applies for an amendment to its Certificate of Public Convenience and Necessity for Route 130 to authorize foreign air transportation of persons, property and mail over a new segment to be described as follows:

United also requests authority to integrate services on this new segment with United's other existing route authorizations consistent with outstanding international agreements. Such route integration will enable United to serve points in third countries intermediate to and beyond Japan to the fullest extent such service is consistent both with its existing authority to serve such points and with applicable international agreements.

1/ United requests leave to file this amendment after the due date for answers has passed. United's amendment is consistent with the Department's Notice dated February 3, 1998, relating to "U.S.-Japan Combination Services" where the Department invited carriers which had filed applications prior to the conclusion of the MOC to update and amend these applications to be consistent with the MOC. (Notice at 4) Interested parties will be afforded an additional period to answer and will not be prejudiced by United's amendment of its application.

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2. Service Proposal. United has previously submitted illustrative service proposals demonstrating how it would use its new U.S.-Japan authority. See Exhibits UA-2 and UA-3 attached to United's original application. United has amended its Chicago-Osaka service proposal. These services will now operate at different times and with differently configured aircraft. The new Chicago-Osaka services are illustrated in Exhibit UA-6. United plans to start these new Chicago-Osaka flights in early July 1998.

3. Maps. A map illustrating United's proposed new U.S.Japan services is attached to its original application as Exhibit UA- 1.

4. Fuel. United's estimated additional fuel consumption for its illustrative U.S.-Japan services is set forth in Exhibit UA-5 attached to its original application. /2 United currently has fuel suppliers at all points at issue and anticipates no difficulty in obtaining fuel for the flights at issue.

5. Fitness. United holds various certificates of public convenience and necessity and exemptions authorizing it to engage in scheduled foreign air transportation of persons, property and mail. United is fit, willing, and able to perform, and currently

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is performing such scheduled foreign air transportation and is well-suited to provide such service in the future. See, e.g., Order 97-10-8 (U.S.-Japan All Cargo, et al.); 97-10-14 (U.S.-South Africa); and 97-4-2 (U.S.-Mexico). United requests that the Department take official notice pursuant to Rule 24 of its Procedural Regulations of all data filed to establish such fitness.

6. Bilateral Authority. United's proposed service is fully consistent with the provisions of the U.S./Japan bilateral aviation agreement, dated August 11, 1952, as amended, and with the U.S.-Japan Memorandum of Consultations, dated January 30, 1998, "MOC") relating to U.S.-Japan combination services. United is already designated to serve Japan pursuant to the 1952 agreement and the additional services proposed herein are consistent with that designation.

7. Frequency Allocation. United withdraws its request for an additional frequency allocation to support its proposed services. Under the January 30, 1998 MOC, United as an incumbent carrier no longer requires a frequency allocation for such services.

8. Opening Argument. United's requested U.S.-Japan combination authority will offer the opportunity to introduce

2/ The fuel consumption for Chicago-Osaka has been modified to reflect certain schedule and equipment changes. That modified fuel consumption is contained in Exhibit UA-6.

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important new U.S. carrier competition for U.S.-Asia combination services. United acquired combination service authority to operate to points in Japan and Asia from Pan American World Airways. See Pacific Division Transfer Case, Order 85-12-1. That authority is limited to specific named gateway points in the U.S and Japan. The recent U.S./Japan MOC, however, allows United to serve any U.S. point and any point in Japan, notwithstanding the terms of its present certificate. Any intermediate and beyond points may also be served in conjunction with U.S.-Japan services.

The proposed amendment will afford United the flexibility to operate its service to any point in Japan and points beyond from any point in the U.S. and via any intermediate point. This will produce valuable service benefits by affording United the flexibility to add new gateways in both the U.S. and Japan such as those illustrated in United's exhibits.

The first new service United will operate pursuant to this expanded U.S.-Japan authority is a nonstop flight connecting its Chicago O'Hare hub with Osaka. United plans to start that service in early July 1998. Consistent with the Department's Notice dated February 3, 1998, relating to "U.S.-Japan Combination Services" United requests that this application be processed on an expedited basis to facilitate the marketing and

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sale of those services.

United is requesting that its new combination authority be issued as a new segment in its Certificate of Public Convenience and Necessity for Route 130. United is requesting authority co-extensive with that described for "incumbent carriers" in Tab A of the January 30, 1998, U.S./Japan MOC.

United is also authorized to serve points in third countries intermediate to and beyond Japan in its Certificate of Public Convenience and Necessity for Route 130 as well as in other outstanding certificates of public convenience and necessity and exemption authorizations. United requests the right to integrate its new U.S.-Japan authority with its other existing U.S. authority to serve points in foreign countries besides Japan in conjunction with its services to and from Japan.

WHEREFORE, on the basis of the foregoing, as well as the information in United's original application dated March 4, 1996, United Air Lines, Inc., requests that its Certificate of Public Convenience and Necessity for Route 130 be amended as described herein and that the Department grant United such other

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and different relief as it deems to be consistent with the public convenience and necessity.

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: February 6, 1998