OST-97-2771
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OST-97-2771
Reno Air, Inc. (Exemption Amendment, Reno-Chicago O’Hare Service)
OST-97-2771 (49743) | July 30, 1997
Application
to Amend Exemption
Seeks to amend its temporary exemption to increase its Reno-Chicago O’Hare service by one daily round trip flight, requiring two additional slots, or temporary operating authority for one arriving and one departing flight
Answers are due by August 14, 1997
Counsel: Reno and Stephen Lachter, 202-862-4321
Reno Air, Inc. (Amend Exemption, Chicago O’Hare Service)
OST-97-2771 | August 14, 1997
Answer of the Reno/Tahoe Parties in Support
Without question, the termination of nonstop service between Reno and O'Hare reduced the number of Reno passengers from its largest midwest market, to the detriment of commercial interests in the community and the local economy. As a result, Senator Richard Bryan of Nevada, together with his colleague Senator Harry Reid, working with the Senate Aviation Subcommittee and members of Nevada's Congressional Delegation, inserted a provision in the Federal Aviation Administration Authorization Act of 1994 (Section 206(c)(1)) to give the Secretary of Transportation authority to grant slots to anew entrants in exceptional circumstances, such as those existing at Reno, if he found it to be in the public interest.
By: Airport Authority of Washoe County, Geno Menchetti, 702-328-6402
Western Pacific Airlines, Inc. / Reno Air, Inc. (High Density Rule, Chicago O’Hare)
OST-95-277 | OST-97-2771 | August 22, 1997
Motion for Leave to File and Consolidated Response of United
Air Lines
Capacity at O'Hare under the High Density Rule is finite. The market-based mechanism in effect to allocate most of the slots at O'Hare ensures the highest and best economic use of this resource. The exemption process represents an administrative distortion of the market that must be carefully controlled and monitored in the context of what, under the High Density Rule, is ultimately a zero-sum game. If the government, rather than the marketplace, determines that these special pleaders should receive the slots necessary to commence service at O'Hare, other deserving users ultimately will be denied access to O'Hare because of absolute constraints occasioned by the HDR. Granting the requests at issue here essentially demands a sacrifice of those slots which could eventually be put to a better and more economically rational use. Neither Reno Air nor WestPac has demonstrated the existence of circumstances "extraordinary" enough to justify grant of the exceptional relief each seeks. These applications must, therefore, be denied.
Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130
Western Pacific Airlines, Inc. and Reno Air, Inc. (Exemption Chicago O’Hare Slots)
OST-95-277 | OST-97-2771 | September 2, 1997
Answer of Western Pacific Airlines
Since United has already filed an answer in accordance with the Department's regulations and has not given any, much less a persuasive, reason why it should be permitted to file a second answer to Western Pacific's supplemental response, Western Pacific urges that the Department not permit United to file yet another answer to a pleading to which United has already responded.
Counsel: Winthrop Stimson, John Gillick, 202 775 9800
OST-97-2230 | OST-97-2442 | OST-97-2557 | OST-95-277 | OST-97-2771 | OST-97-2870 | September 4, 1997
The Air Carrier Association of America ("ACAA") hereby moves for leave to file this Reply' to respond to the various replies filed by United, US Airways, Delta and TWA regarding the Applications of Frontier Airlines, ValuJet Airlines, Inc., Air Tran Airways, Inc., Western Pacific, Inc., and Reno Air ("affordable fare carriers") to gain access to LaGuardia Airport in New York City ("LaGuardia") and O'Hare International Airport ("O'Hare").
Counsel : Edward Faberman, 202 778 4462
Reno Air, Inc. (Exemption Reno-Chicago O’Hare)
OST-97-2771 | September 4, 1997
Motion for Leave to File Late and Reply
Reno Air, Inc. ("Reno Air"), respectfully requests leave to file a late reply to the untimely Consolidated Answer of United Air Lines, Inc. (UUnited'') filed in this docket (as well as Docket OST-95-277) on August 22, 1997. (Answers to Reno Air's Application to Amend Exemption originally were due to be filed on August 14, 1997.)
Counsel: Stephen Lachter, 202 862 4321
Reno Air, Inc. (Amend Exemption, Reno-Chicago O'Hare)
OST-97-2771 | September 26, 1997
Motion for Leave to File and Response of the City of
Chicago
Chicago continues to be concerned about both the high transaction costs and uncertain standards associated with new entrant slot applications. Again, in connection with its resolution of all pending new entrant slot applications, Chicago urges the Department to fashion a more transparent, timely, efficient and effective process for the future administration of capacity at O'Hare. In granting any pending slot applications at O'Hare, however, Chicago continues to urge the Department to remain sensitive to the environmental aspects of any new operations, and expressly to condition the grant of any new slots upon the operation of quiet, Stage 3 aircraft. In approving these applications, Chicago urges the Department to base its decision solely on the facts of economic benefit, available capacity and legislative intent--all of which militate in favor of a finding of exceptional circumstances and public interest to justify a limited grant of slots in the instant application.
The City of Chicago urges the Department to grant forthwith Reno's application for two additional slots to accommodate an additional daily round trip between Reno and O'Hare.
Counsel: Chicago and Winthrop Stimson, Kenneth Quinn, 202-775-9800
Simmons Airlines, Inc. d/b/a American Eagle / Trans States Airlines, Inc. / Reno Air, Inc. (Exemption from High Density Rule, Chicago O'Hare)
Order 97-10-16 | OST-95-368 | OST-97-2368 | OST-97-2771 | Issued and Served October 24, 1997
Order Granting and Denying Applications for Slot Exemptions at
Chicago O'Hare Airport
After considering the applications for exemptions from 14 CFR Part 93, Subparts K and S. for slots at Chicago's O'Hare Airport filed by Reno Air, Trans States, and Simmons, the Department has decided to grant two additional slot exemptions to Reno Air for service in the Reno, NV-O'Hare market; and eight slot exemptions to Trans States Airlines ("Traps States") on an experimental basis. We find that granting these slot exemptions is in the public interest and meets the statutory "exceptional circumstances" test. Grant of the exemptions is conditioned on their being used solely for the markets designated in the carriers' applications. The Department has also decided to deny the application of Simmons Airlines d/b/a American Eagle ("Simmons") for six slot exemptions to serve the London, Ontario-Chicago O'Hare market, and the balance of Trans States' application for an additional 24 Chicago O'Hare slot exemptions, for the reasons set out below
By: Charles Hunnicutt
Simmons Airlines d/b/a American Eagle / Trans States Airlines, Inc. / Reno Air, Inc. (High Density Rule, Chicago O'Hare)
OST-95-368 | OST-97-2368 | OST-97-2771 | November 13, 1997
Petition of American Airlines and American
Eagle for Reconsideration of Order 97-10-16
It is particularly astonishing for the Department to have seemingly embraced United's opportunistic and self-serving position on "corporate affiliates" in the same order in which United Express received eight of the 10 slots that were awarded. Indeed, in Order 97-10-16, the Department demonstrated that it will award O'Hare exemption slots to non-incumbent carriers such as Reno Air, as well as to carriers operating as part of the United group such as Great Lakes Airlines d/b/a United Express. The Department therefore appears to be suggesting that there is only one carrier category that it will not favorably consider -- "American and its corporate affiliates." The only other "airline group with large slot holdings" at O'Hare is the United group, which has received 56 O'Hare exemption slots from the Department in the Cast three years. Excluding only American and its affiliates from obtaining O'Hare exemption slots under 49 USC 41714 has no basis in law, and would be arbitrary, capricious, and an abuse of discretion.
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
Petition of United Air Lines for
Reconsideration
The Department's new criteria ignore O'Hare's unique role as an international airport, and the need to preserve capacity there to permit growth in international services. The criteria also ignore O'Hare's critical role as a primary link for small communities to the nation's air transportation system. Instead, the new criteria are clearly designed to favor new entrants that intend to use Chicago as a spoke from their own hubs, or in point-to-point domestic operations, over these other uses, even though new entrants can always serve Midway.
Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130
Simmons Airlines, Inc. d/b/a American Eagle / Trans States Airlines, Inc. / Reno Air, Inc. (Exemptions, High Density Rule, O'Hare)
OST-95-368 | OST-97-2368 | OST-97-2771 | November 24, 1997
There is good cause to allow American to amend its petition, and to ask that the award of exemption slots to Trans States by Order 97-10-16 be vacated. As American explains in its answer to Trans States' petition, submitted today in OST-97-2368 and incorporated herein by reference, it would be an affront to orderly administrative procedures, and to the due process rights of interested parties, for the Department to permit an applicant to present a new service proposal on reconsideration. The Department should vacate the award of exemption slots to Trans States, as the evidentiary basis for that decision no longer exists. We are not aware of any precedent where the Department has permitted an applicant to present a new proposal in a petition for reconsideration, and yet to retain the award made by the initial order.
Counsel: American, Carl Nelson, 202-496-5647
United has requested that the Department should defer acting on American's pending application in Docket OST 97-2985 until United Express carriers have had an opportunity to file competing applications to provide 50-seat regional jet service to a comparable list of small communities. Last week, United's pilots completed the process to ratify a new contract that will enable these applications to move forward. Deferring action on American's application until the Department has alternative proposals before it will enable the Department to ensure that service to these small local communities will be operated in a manner that best serves the public interest.
Counsel: United and Ginsburg Feldman, Joel Burton
Simmons Airlines, Inc. d/b/a American Eagle / Trans States Airlines, Inc. / Reno Air, Inc. (O'Hare Slots)
OST-95-368 | OST-97-2368 | OST-97-2771 | December 4, 1997
Motion for
Leave to File and Response of American Airlnes and American Eagle
HTML -
Attachment
United's answer essentially repeats the arguments that United made in its motion and response, also filed on November 24, 1997, to the application by Simmons Airlines, Inc. d/b/a American Eagle for O'Hare exemption slots under 49 USC 41714 (OST-97-2985). Simmons has responded to United's arguments in its motion and response of December 4, 1997, which is attached hereto and incorporated by reference. For the reasons stated therein, the Department should reject United's position that Simmons, as a corporate affiliate of American, should not receive exemption slots. To the contrary, Simmons (and other American Eagle carriers) should be considered on an equal footing with United Express carriers such as Trans States Airlines, Great Lakes Airlines, and Air Wisconsin with respect to exemption slots at O'Hare and other high density airports.
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
Simmons Airlines, Inc. d/b/a American Eagle / Trans States Airlines, Inc. / Reno Air, Inc. / Atlantic Coast Airlines / Great Lakes Aviation, Inc. d/b/a United Express (High Density Rule, Chicago O'Hare)
OST-95-368 | OST-97-2368 | OST-97-2771 | OST-97-3259 | OST-97-3153 | December 30, 1997
Motion for
Leave to File and Comments of Comair
At the outset, two aspects of these O'Hare slot requests have become quite clear. First, except for Reno Air (which has had a close relationship with American), all the applicants are controlled by either American or United in terms of O'Hare operation (none is really a new entrant) and the requests simply constitute a battle between the two carriers which dominate the hub and an effort by both carriers to expand that hubs dominance in the nations Second, the enormous requests for slot allocations and the likelihood of an almost endless stream of subsequent requests make it apparent that an ad hoc market by market approach to the problem will not work. Instead, the Department needs to step back, look at the entire picture and make a determination based on solid facts and nationwide impact.
Counsel: Steptoe Johnson, Richard Taylor, 202-429-6459
Simmons Airlines, Inc. d/b/a American Eagle, et al.
OST-95-368 | OST-97-2368 | OST-97-2771 | OST-97-3259 | OST-97-3153 | January 6, 1998
Re:
Corrections to Comments filed by Comair
Comair, Inc. respectfully requests that two corrections be made to the Comments filed by it herein on December 30, 1997. The first correction is to change the word "sold" to "solid" on page 2, line 6 from the bottom. The second correction is to change "80" to "25". on page 3, line 9 from the bottom. Corrected pages 2 and 3 are attached hereto and have been served on all parties.
Counsel: Steptoe Johnson, Richard Taylor, 202-429-3000
Simmons Airlines, Inc. d/b/a American Eagle / Trans States Airlines, Inc. d/b/a United Express / Reno Air, Inc. / Atlantic Coast Airlines d/b/a United Express / Great Lakes Aviation Ltd. d/b/a United Express (High Density Rule, Chicago O'Hare)
OST-97-2985 | OST-97-2368 | OST-97-2771 | OST-97-3259 | OST-97-3153 | January 9, 1998
Motion for
Leave to File and Response of American Airlines and American Eagle to
Comments of Comair
Comair and Delta, and their hub services at Cincinnati, have no special claim to protection from competition. Indeed, American and American Eagle are at a decided competitive disadvantage at O'Hare in competing with nearby hubs, such as Cincinnati, for national traffic flows because O'Hare is the only slot-controlled hub airport in the United States. The additional slots that the Department has been asked to make available at O'Hare cannot begin to redress the overwhelming advantage enjoyed by Delta and Comair in operating at an unconstrained airport.
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
Motion for
Leave to File and Reply of Atlantic Coast Airlines to Comments of Comair
Comair's arguments for rejecting the current O'Hare slot exemption applications lack both merit and substance. To credit Comair's position would be tantamount to reverting to the policies embodied in the pre-deregulation Federal Aviation Act. Moreover, Comair is asking the Department to ignore the Congressional directive to expand service opportunities between non-hub cities and O'Hare. Finally, Comair has mischaracterized ACA's motives for seeking O'Hare slots. Accordingly, the DOT must reject the selfserving and protectionist arguments of Comair and promptly proceed to decide the issues raised by the competing slot applications of ACA and Simmons.
Counsel: Bagileo Silverberg, Robert Silverberg, 202-944-3300
| OST-97-2771 49743 |
January 7, 1999 | Motion of United Air Lines to Reopen the
Record |
High Density Rule - Chicago O'Hare | HTML |
| Service List |
Not only is Reno Air ineligible to retain the slot awards under §41714(c), but many of the premises underlying the slot exemptions have been undermined by American's acquisition. In awarding O'Hare slots to Reno Air, the Department noted that Reno Air was an "advertised low-fare" carrier and a new entrant in the Chicago market. As such, the Department believed that Reno Air could offer the low-fare service needed for the leisure-oriented Chicago O'Hare-Reno market. The Department noted American's failure to sustain viable service in the city pair, presumably due to American directing its capacity toward the higher yield and more potentially profitable markets. After being acquired by American Airlines, there is no reason to believe that Reno Air will continue to direct its efforts toward the low-fare leisure travelers that were of particular concern to the Department in awarding new entrant slot exemptions to Reno Air. This is not to say, however, that the Chicago-Reno market is not deserving of service. American may, in fact, decide to continue Reno Air's service in the market. But if it does, American can readily obtain slots from its own substantial slot holdings. It is also possible that another new entrant, low-fare carrier may seek the slots for Reno-Chicago service now operated by Reno Air under the exemption it is no longer eligible to hold.
Counsel: United and Kirkland Ellis, Jeffrey Manley, 202-879-5161, jeffrey_manley@kirkland.com
| OST-97-2771 49743 |
January 19, 1999 | Answer of American Airlines to Motion of
United Air Lines to Reopen the Record |
High Density Rule - Chicago O'Hare | HTML |
| Attachment: Letter from Nevada Delegation to Secy Slater |
United's effort to destroy the City of Reno's critically important service link to O'Hare is simply one more episode in United's unrelenting campaign to maintain and advance its slot advantage at O'Hare. The compelling needs of the City of Reno and other Nevada interests for continued nonstop access to the Chicago hub should not be sacrificed to United's agenda for continued slot dominance at O'Hare.
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
| OST-97-2771 49743 |
January 19, 1999 | Answer of Reno Air to Motion of United Air
Lines to Reopen the Record |
High Density Rule - Chicago O'Hare | HTML |
By acquiring Reno Air, American will be able to continue to provide service over the Reno-Chicago route with the dedicated O'Hare exemption slots. While the Department retains the authority to modify the exemption, no action should be taken if American continues, as it has pledged, to serve the Reno-Chicago O'Hare market. The Department also should proceed very cautiously since profound and serious effects on the communities, the State of Nevada, businesses and the traveling and shipping public obviously would result from the kind of precipitous action urged by United.
Counsel: Reno and Stephen Lachter, 202-862-4321
| OST-97-2771 49743 |
January 19, 1999 | Answer of The Reno/Tahoe Parties in Opposition
to Motion of United Air Lines to Reopen the Record |
High Density Rule - Chicago O'Hare | HTML |
| Exhibit 1: Reno Air's Entry into the Reno-O'Hare Market Dramatically Reversed Several Years of Market Decline | ||||
| Exhibit 2: The Reno-O'Hare Local O&D Market Doubled in Size Immediately After Reno Air's Entry in Late 1994 and is Now Three Times its Previous Level | ||||
| Exhibit 3: Reno Air Departures, Passengers, and Load Factors in the Reno-O'Hare Market | ||||
| Exhibit 4: American's Operation of the Reno-O'Hare Service will Generate Almost $300 Million of Economic Benefits to the Reno/Tahoe Region |
On all counts, United is wrong. United's assertions that the Department should reallocate slots dedicated to the Reno market is without legal foundation, is contrary to the public interest, and should be rejected summarily by the Department. Most importantly, United apparently has lost sight of the compelling public interest factors that support the retention of all Reno Air O'Hare slots by American to be used for Reno-Chicago O'Hare service. The withdrawal of slots and the resulting elimination of Reno-Chicago O'Hare service, would have severe adverse economic consequences and would be contrary to the public interest.
Counsel: Stephen Lachter, 202-862-4321
| OST-97-2771 49743 |
January 28, 1999 | Motion for Leave to File and Reply of Atlantic Coast
Airlines to Answer of American Airlines |
High Density Rule - Chicago O'Hare | HTML |
Finally, to the extent American Eagle has regrettably pitted the communities of Savannah/Hilton Head and Greenville/Spartanburg against one another by the filing of its unexplained late application and thereby trying to turn the ACA application into a carrier/city selection proceeding, the comparative merits favor an award to ACA for all of the reasons set forth by ACA's prior pleadings referenced above.
Counsel: Bagileo Silverberg, Robert Silverberg, 202-944-3300
| OST-97-2771 49743 |
January 28, 1999 | Consolidated Reply of United Air Lines and
Motion for Leave to File |
High Density Rule - Chicago O'Hare | HTML |
Not only does American not qualify as a new entrant, it does not make any commitment to continue the low-fare services which the Department found were necessary to produce the public benefits on which the issuance of slot exemptions for Reno-Chicago service was premised. The Department concluded that, absent low fares, frequent nonstop services could not be sustained in a leisure market such as Reno-Chicago. American itself failed to sustain nonstop Reno-Chicago nonstop service and has provided no basis on which to conclude that it will be able to do so as a result of its acquisition of Reno Air. There is, for example, no demonstration that Reno Air, under American's ownership, can continue to maintain the lower costs that are needed to offer low-fare services and still show a profit. Indeed, American does not even suggest that it intends to maintain Reno Air's existing low cost structure, let alone seek to demonstrate that it could do so under the terms of its various collective bargaining agreements.
Counsel: United and Kirkland Ellis, Jeffrey Manley, 202-879-5161, jeffrey_manley@kirkland.com
| OST-97-2771 49743 |
February 8, 1999 | Motion for Leave to File and Response of American
Airlines to Reply of United Air Lines |
High Density Rule - Chicago O'Hare |
United has an obvious agenda for continued slot dominance at O'Hare, and is asking the Department to sacrifice the needs of the City of Reno and Nevada to further that agenda. Withdrawal of Reno Air's five exemption slots, as urged by United, would result in the termination of nonstop service in the Chicago-Reno market.
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
| OST-97-2771 49743 |
February 8, 1999 | Motion for Leave to File and Response of American Eagle
to Reply of Atlantic Coast |
High Density Rule - Chicago O'Hare |
At issue in this docket is the succession by American Airlines, Inc. to five O'Hare exemption slots awarded to Reno Air, Inc. to operate nonstop service between Chicago and Reno. United Express's pleading rehashes the arguments it has made in support of its application in OST-98-3982 for O'Hare exemption slots to serve Savannah/Hilton Head. Those arguments have already been thoroughly answered by American Eagle in OST-98-3982, as well as in OST-98-4647, a related proceeding in which American Eagle is seeking O'Hare exemption slots to serve Greenville/Spartanburg. To avoid burdening this docket with the comparative selection issues raised by the competing applications of American Eagle and United Express, we hereby adopt and incorporate by reference our pleadings in OST-98-3982 and OST-98-4647.
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
| OST-97-2771 49743 |
February 5, 1999 | Motion for Leave to File and Surreply of Reno Air
to Consolidated Reply of United Air Lines |
High Density Rule - Chicago O'Hare |
United would have the Department withdraw the slots, resulting in the elimination of nonstop Chicago O'Hare-Reno service to the detriment of the community, the State and the traveling public. United would have the Department take action contrary to the express findings in Order 94-9-30 that the exemption is necessary to allow the institution of Chicago O'Hare-Reno service. Whether United accepts American's characterizations or not, the simple fact is that United's arguments, if accepted, will eliminate Reno's critically important link to Chicago O'Hare and the midwest.
Counsel: Stephen Lachter, 202-862-4321
Reno Air, Inc. / America West Airlines, Inc.
| Order 99-2-26 OST-97-2771 OST-99-5030 |
Issued and Served February 23, 1999 | Order on Motion to Reopen the Record |
High Density Rule - Chicago O'Hare | HTML |
By this Order, we are denying the motion of United Air Lines to reopen the record in Docket OST-97-2771 and reallocate to another qualified airline the slot exemptions now held by Reno Air. We dismiss the America West Airlines' application for slot exemptions in the Reno-Chicago-O'Hare market. Whether the Department exercises its discretion to rescind an award of slot exemptions depends on public interest considerations. Our public interest assessment of this case weighs in favor of allowing Reno Air to continue these operations. Among other things, the record indicates that withdrawal of these services by the Department would have a severe and adverse impact on the economy of Reno/Tahoe and the State of Nevada.
By: Charles Hunnicutt
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