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OST-98-4824

Air France

Air France requires two slots by March 28, 1999, the first being a 12:25 p.m. (UTC) arrivals and the second, a departure, at 22:45 UTC. Those UTC times are the equivalent of, respectively, 11:25 a.m. and 4:45 p.m., local times.  Air France's new service will provide increased competitive capacity for the Chicago market as well as promote international commerce between the two nations. Each airport involved is at the top or very near the top of its nation's list of most popular airports with excellent access for passenger and other traffic.

Counsel:  V. Michael Straus, P.C. for Air France, 202.785.2242

Air France

An entity known as Airport Coordination Paris is in charge of the slot coordination process at the Paris airports. The head of slot coordination (presently, Mr. Eric Herbane) is appointed by the DGAC, the French Government agency that has a role analogous to that of DOT in the United States.  On October 19, 1998, American requested a daily arrival slot at Orly at 0945 UTC (1145 local time), and a daily departure slot at 0800 UTC (1000 local time), effective June 2, 1999 and through the end of the summer 1999 traffic season on October 30, 1999, to operate its planned Los Angeles-Paris service On November 13, 1998, the head of slot coordination informed American that Orly's total annual limitation of 250,000 movements had been reached for 1999, and that no slots could be allocated for American's Los Angeles-Paris flights.

The Department should also take into account the fact that Air France is now closely allied with three U.S. carriers -- Delta Air Lines, Continental Airlines, and Northwest Airlines.  American and other independent U.S. carriers in the U.S.-France market are already at a considerable competitive disadvantage to the dominant position that Air France is consolidating through its various alliances. For these reasons as well, it is contrary to the public interest for the Department to assist Air France with exemption slots at Chicago O'Hare, and particularly when the Government of France has yet to take action to ensure that American receives its requested slots at Orly.

Counsel:  American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com

Air France

If the Department were to grant American's request to deny Air France's application, it would put Air France at a considerable competitive disadvantage in the Paris-Chicago market. American and United both operate from their strong Chicago hubs, with American operating one daily flight and United (starting with Summer 1999) operating 2 daily flights. Those combined services offer a significant level of service to Air France's Paris hub, while from Paris Air France operates one-third as much Chicago service as U.S. flag carriers will offer, starting with the Summer of 1999. In conclusion, Air France's legitimate request to the Department for exemption relief is consistent with that which has been granted to other foreign air carriers, at an airport which has the available physical capacity. American's opposition is, therefore, misplaced and the department should not refuse to grant the Air France exemption application.

Counsel:  V. Michael Straus, 202.785.2242

Air France

Moreover, while Air France asserts that "it is neither involved in, nor does it have any control over, the slot allocation procedure at Orly Airport" (p. 2), that is not accurate. The slot allocation process in France is in fact controlled. by Air France, which is wholly owned by the Government of France. The Orly slot coordinator, Mr. Eric Herbane, is a former Air France employee, and is expected to return to Air France when he completes his assignment as coordinator. Membership on the slot coordination committee is limited to Air France (which provides the lion's share of the committee's budget), TOM French Airlines, Air Liberte, the Airline Representative Council, general aviation, ATC, Military Air Navigation, the airport, and the coordinator. Contrary to Air France's statement, the committee is not "open to all carriers serving the Paris airports". It is without question dominated and controlled by Air France.

Counsel:  American, Carl Nelson, 202-496-5647

Air France

Air France is confident that, should the Department consider it necessary, it can obtain confirmation of the consistency of the slot allocation process for Paris airports, with EC regulations, from the relevant authorities. Finally, Air France wishes again to state that its legitimate request for exemption relief is consistent with that which has been granted to other foreign air carriers at U.S. airports with available capacity. Any action granting American's request would contradict that settled Department slot allocation policy.

Counsel:  V. Michael Straus, P.C. for Société Air France, 202.785.2242

US Airways believes that when access is denied to U.S. carriers to operate service which the Department has awarded and which is authorized under an existing air services agreement, the Department should deny, on a proportional basis, U.S. access to foreign carriers who otherwise receive landing rights free of charge and ground facilities on reasonable terms and conditions.  It is fundamental U.S. aviation policy that an award of route rights to a U.S.-flag carrier must be accompanied by commercially viable access. Any Department action that would even suggest an erosion of this principle would have immediate, serious, and detrimental effects on U.S.-flag carriers. American has made its case for swift and proportional relief and the Department should act accordingly. By acting as American suggests, the Department will send a strong and unequivocal message to all foreign aviation trading partners that the U.S. Government will not countenance the abridgement of U.S.-flag carrier rights.

Counsel:  US Airways and O'Melveny Myers, Joel Burton, 202-383-5300

Air France

Air France reiterates its firm position simply by incorporating herein, by reference, its responses to American's various filings in this docket. In addition, it responds to the USA request by urging the Department to reject that far-fetched scenario, aimed at pressuring the United Kingdom, a third party government, by denying legally required slots to the flag carrier of France.

Counsel:  V. Michael Straus, P.C., 202.785.2242

AIR FRANCE / SCANDINAVIAN AIRLINE SYSTEM / LUFTHANSA GERMAN AIRLINES / JAPAN AIRLINES CO., LTD. / ALL NIPPON AIRWAYS CO., LTD. /  COMPANIA MEXICANA DE AVIACION, S.A. DE C.V. / IBERIA LÍNEAS AÉREAS DE ESPAÑA, S.A. / CZECH AIRLINES (CSA) 

Counsel:  Chicago and Winthrop Stimson, Kenneth Quinn, (202) 775-9898, quinnk@winstim.com

Air France

American Airlines, Inc. hereby moves for leave to withdraw its pleadings, submitted on December 10, 1998 and December 17, 1998, in opposition to the captioned application of Air France for Chicago O'Hare exemption slots to serve Paris.

Counsel:  American, Carl Nelson, Jr., 202.496.5647, carl_nelson@amrcorp.com

Societe Air France

We will grant Air France an exemption to enable it to perform one daily Paris (Charles de Gaulle)-Chicago scheduled flight arrival and one daily departure at O'Hare during the 1999 summer season. We find that grant of this exemption authority is consistent with the public interest.

By:  Charles Hunnicutt

Air France

Continue to be allocated slots at O'Hare International Airport for a daily round trip combination flight, which was inaugurated in March of 1998.11 That round trip operates between Paris and Chicago. The flight is operated with Stage 3, B-767 aircraft.  Air France filed a timely application for the slots, with the Federal Aviation Administration ("FAA') on May 12, 1999. At the recent IATA schedule coordinating meeting, the FAA indicated that Air France's request would likely be denied. Because the FAA has a statutory duty to provide the slots, Air France has continued to prepare its customers, as well as crews and equipment, for continuation of its schedules.   

Counsel:  Michael V. Straus

Air France/Japan Airlines/Scandinavian Air Services/All Nippon Airways

Counsel:  Kenneth P. Quinn Winthrop Stimson

Chicago O'Hare International Airport/All Nippon Airways/Air France/Compania Mexicana de Aviacion, S.A. de C.V./Iberia Lineas Aereas De Espana/Scandinavian Airlines/Japan Airlines Co., Ltd.

Order 99-10-25 (1) dismisses applications of Japan Airlines, Co., Ltd. in Docket OST-99-5893; All Nippon Airways Co., Ltd. in Docket OST-99-5892; Societe Air France in Docket OST-98-4824; Scandinavian Airlines System in Docket OST-99-5916; and Iberia Lineas Aereas de Espana, S.A. in Docket
OST-99-6008. and (2) dismisses that portion of the application of Compania Mexicana de Aviacion, S. A. de C.V. in Docket OST-99-6080 requesting temporary exemption from 14 C.F.R. Part 93, Subparts K and S under 49 U.S.C. 41714(b)(1) to the extent necessary to enable it to operate daily scheduled arrival at Chicago's O'Hare International Airport between 11:15 A.M. and 11:44 A.M. (local time) and one daily scheduled departure at Chicago's O'Hare International Airport between 2:15 P.M. and 2:44 P.M. (local time), for round trip service between Chicago's O'Hare International Airport and Mexico City, Mexico.

During the period June 25, 1999 through August 6, 1999, the above captioned air carriers requested slot exemptions from 14 C. F. R. Part 93, Subparts K and S, under 49 U. S. C. § 41714(b)(1), to the extent necessary to enable them to continue nonstop, round-trip flights between various foreign gateways and Chicago, Illinois (O'Hare International Airport). In all but one case, the Department had previously granted slot exemption authority for the requested services on a seasonal basis. The instant applications seek to renew the same exemption authority for the 1999-2000 winter season.

By:  Bradley Mims

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