OST-98-3758 / OST-98-3760 / OST-98-3759 / Undocketed / OST-98-3732 / OST-98-3739 / US-France / Answer of Northwest / April 22, 1998

Application of

NORTHWEST AIRLINES, INC. / Docket OST-98-3758

for a Certificate of Public Convenience and Necessity Authorizing Scheduled Foreign Air Transportation of Persons, Property, and Mail

(U.S.-France)

Application of

NORTHWEST AIRLINES, INC. / Docket OST-98-3760

for an exemption from 49 U. S. C. § 41101

(US-France)

Application of

NORTHWEST AIRLINES, INC. and KLM ROYAL DUTCH AIRLINES

/ Docket OST-98-3759 and Undocketed

for Designation and for Statement of Authorization to Code-Share (U.S. -Netherlands-France)

Application of

UNITED AIR LINES, INC. / Docket OST-98-3732

for exemption pursuant to 49 U.S. C. § 40109

(U. S. -France)

Application of

COMPANGIE NATIONALE AIR FRANCE / Docket OST-98-3739

for exemption pursuant to 49 U.S. C. § 40109

(U.S.-France All Points Authority)

Northwest Airlines, Inc., United Air Lines, Inc., and Compangie Nationale Air France each have applied for authority to provide expanded combination air transportation service between the United States and France. Northwest respectfully requests that the Department promptly grant Northwest's and United's applications and defer granting Air France's application until the Department grants Northwest's and United's applications.

Pursuant to the Department's April 13, 1998 Notice inviting U.S. carriers to apply for new U.S. -France authority, Northwest applied on April 17, 1998 for exemption and certificate authority to provide expanded U.S.-France service, for designation to provide third-country code-share service via the Netherlands in conjunction with KLM Royal Dutch. Airlines, and for a statement of authorization permitting such code-share service. United Air Lines also requested on April 17 a designation to provide third-country code-share service between the U.S. and France via Germany in conjunction with Lufthansa German Airlines. The Department should promptly grant by a final order the designation and other authority sought by Northwest and United because (1) the requested authority is consistent with the new Memorandum of Consultations between the U.S. and France, (2) the requested authority is not oversubscribed (only two carriers have applied for the two third-country code-share designations), and (3) an immediate grant of the authority sought by Northwest and United will help ensure the earliest possible use of new valuable bilateral rights.

Northwest Airlines, Inc.

Consolidated Answer

-3 -

Northwest does not oppose Air France's April 14, 1998 application for exemption authority. However, Northwest is concerned that Air France might be permitted to initiate its new U.S.-France services before U.S. carriers are afforded an

opportunity to compete. Accordingly, Northwest respectfully requests that the Department not grant Air France's exemption application until the Department grants Northwest's and United's applications.

WHEREFORE, Northwest Airlines respectfully requests that the Department designate Northwest to provide third-country code-share U.S.-France service, grant Northwest's application for exemption authority, and grant KLM a statement of authorization permitting it to carry Northwest's designator code on flights between the Netherlands and France. Northwest further requests that the Department defer granting Air France's application for expanded U.S. -France authority until the Department grants Northwest's and United's applications.

Respectfully submitted,

Megan Rae Poldy

Associate General Counsel

NORTFIWEST AIRLINES, INC.

901 15th Street, N.W. - Suite 310

Washington, D.C. 20005

(202) 842-3193

April 22, 1998