OST-97-3237 / United and Mexicana / Joint Motion for Immediate Action / January 13, 1999

 

Joint Application of

UNITED AIR LINES, INC. and COMPANIA MEXICANA DE AVIACION, S.A. DE C.V.

Docket OST-97-3237

for an exemption under 49 U.S.C. §40109 and a Statement of Authorization under 14 CFR §212 (U.S.-Mexico Code Sharing)

 

JOINT MOTION OF UNITED AIR LINES, INC.

AND COMPANIA MEXICANA DE AVIACION, S.A. DE C.V.

FOR IMMEDIATE ACTION

 

United Air Lines, Inc. ("United") and Compania Mexicana de Aviacion, S.A. de C.V. ("Mexicana") hereby jointly request immediate action on their above-captioned joint application to the extent that ( 1 ) United requests exemption authority to hold out service between Los Angeles and (Chicago, on the one hand, and Huatulco, Mexico, on the other hand, via Mexico City and (2) Mexicana requests a statement of authorization to display United's designator code on Mexicana flights between Mexico City and Huatulco. In support of their request, United and Mexicana respectfully submit the following:

United is designated to serve Huatulco via Mexico City from both the Los Angeles and (Chicago gateways. United has been offering code-share service in these city pairs

 

Joint Motion of United and Mexicana

Page 2

 

via connections at Mexico City in conjunction with services operated by Transportes Aeromar in the Mexico City-Huatulco market. Effective January 11, 1999, Transportes Aeromar terminated its Mexico City-Huatulco service.

2. Mexicana also operates nonstop service between Mexico City and Huatulco. By substituting Mexicana's service for that formerly operated by Transportes Aeromar, United can continue to offer online connecting services for its Huatulco passengers.

3. United's service to Huatulco has up to now been offered on commuter-sized aircraft operated by Transportes Aeromar. Those services were operated pursuant to the blanket exemption in 14 CFR §206.5. Because Mexicana's MEX-HUX services are operated in large aircraft, United will require a specific exemption authorization to offer these services to Huatulco in conjunction with Mexicana. United has applied for an exemption to offer services in its application in Docket OST-97-3237. Because United is already designated to offer service in the LAX-MUX and ORD-HIJX city pairs and has been offering code-share service in conjunction with Transportes Aeromar, immediate grant of United's exemption is warranted in order to continue United's code-share service offering in these city pairs.

4. Mexicana is authorized by the government of Mexico to operate and is operating nonstop services between Mexico City and Huatulco. Mexicana has filed an application dated December 12, 1997, in Docket OST-97-3237 requesting a statement of authorization to code

 

Joint Motion of United and Mexicana

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share for United over the MEX-HUX routing, inter alia. Immediate grant of Mexicana's pending application for a statement of authorization to the limited extent of allowing it to display United's code on the Mexico City-Huatulco sector should be granted to enable United to continue to offer service to I luatulco passengers pursuant to its existing city-pair designations.

5. The Department has imposed an informal moratorium on the expansion of U.S.-Mexico transborder code shares involving U.S. and Mexican carriers pending bilateral resolution of code-share issues between the two governments. However, the Department recently granted a similar request by Delta and Aeromexico stating that, "in deferring action on pending requests, it was never our intent to affect adversely existing services that we had already found to be in the public interest." Order 98-12-23 at 3?4. The instant motion for immediate action does not involve any expansion of United's transborder code-share services, but only a continuation of such services for which United already holds a designation. Unless this motion is granted, United will be forced to discontinue services to Huatulco which the Department has already determined to be in the public interest. To avoid that result, United and Mexicana urge the Department to grant their pending joint application in this proceeding to the limited extent requested above. Because United is already designated for both the Chicago-Huatulco and Los Angeles-Huatulco city pairs, there is no mutual exclusivity and no other pending applicant for authority to serve these markets would be prejudiced by grant of the instant motion. United and

 

Joint Motion of United and Mexicana

Page 4

 

Mexicana, therefore, urge that their joint application in Docket OST-97-3237 be granted immediately to the extent requested herein.

 

Respectfully submitted,

 

ROBERT D. PAPKIN

SQUIRE, SANDERS & DEMPSEY for Mexicana

 

JEFFREY MANLEY

KIRKLAND & ELLIS for United

DATED: January 13, 1999