ost995671

OST-99-5671

British Midland Airways Limited

OST-99-5671	May 10, 1999	Application for Exemption	London (Heathrow) - New York (JFK)	HTML
		Exhibit A: Corporate Structure
		Exhibit B: Board of Directors/Key Management Officials
		Exhibit C: Biographies
		Exhibit D: Operating License
		Exhibit E: Financial Data
		Service List

British Midland intends to commence scheduled service between London (Heathrow) and New York (JFK) in the spring of 2000, utilizing B-767, A-330 or other suitable aircraft.

Counsel: Squire Sanders, Robert Papkin for British Midland, 202.626.6600

British Midland Airways Limited

OST-99-5671

May 21, 1999

Answer of US Airways

London-New York

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

British Midland Airways Limited

OST-99-5671

May 25, 1999

Answer of Continental Airlines

Scanned Copy

Exemption - London Heathrow-New York

Continental strongly believes the Department must focus its current efforts on achieving a comprehensive agreement which would bring effective competition to U.S.-Heathrow routes. Awarding limited extrabilateral authority now to the second largest holder of Heathrow slots, British Midland, would enhance the dominance of U.K. carriers on U.S.-Heathrow routes, increase the competitive imbalance between U.K. and U.S. carriers, allow another U.K. carrier to exploit its slots and facilities at Heathrow without opening it to more U.S. carriers and send the wrong signal to the U.K. government on the U.S. commitment to achieving effective competition through truly open skies.

Counsel: Continental and Crowell Moring

OST-99-5671

May 25, 1999

Answer of Delta Air Lines

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Exemption - London Heathrow-New York

As British Midland correctly observed, JFK-London is the largest and most important transatlantic route. Although British Midland would provide a modicum of much-needed competitive relief on this route, which is heavily dominated by American and British Airways, Delta is the only carrier capable of marshaling a meaningful competitive challenge to the entrenched JFK-Heathrow incumbents. Delta is the largest transatlantic carrier at JFK, and JFK is Delta's largest international gateway. Given Delta's strong presence in New York and supporting feed at the JFK gateway from numerous domestic cities, Delta is in the best position to maximize competition.

Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060

OST-99-5671

May 25, 1999

Answer of Trans World Airlines

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Exemption - London Heathrow-New York

Like British Midland, TWA strongly believes that it is essential to open Heathrow to new competition if there is to be a new bilateral agreement. The present situation, limiting Heathrow access to only two U.S. and two British carriers', deprives consumers in both countries of adequate service and low fares. TWA strongly supports the attempt of the US government to gain greater access to Heathrow in the current bilateral negotiations. Unlike British Midland, TWA does not believe that the British government has provided adequate comity and reciprocity to justify grant of British Midland's exemption application. While the United Kingdom has provided Open Skies for service between the US and points other than London, these cities account for an insignificant proportion of U.S.-U.K. traffic. The extra-bilateral authority made available by the United Kingdom does not justify grant of an additional U.K. Heathrow - U.S. application.

Counsel: TWA and Richard Fahy, 202-457-4754, rfahy@ibm.net

British Midland Airways Limited

OST-99-5671

June 4, 1999

Consolidated Reply of British Midland

London (Heathrow) - New York (JFK)

Consistent with the objective of "open-skies," British Midland believes that the Department's favorable consideration of British Midland's limited exemption request as well as one of the various pending U.S. carrier extra-bilateral requests would send the important and valuable message from the U.S. Government that the United States is committed irrevocably to .. open-skies" and is prepared to work tirelessly to achieve it. To be sure. it is highly unlikely that any of the U.S. carriers or, for that matter, British Midland would be prepared to forsake its interest in "open-skies" in return for the very limited extra-bilateral. requests now pending. Grant of British Midland's request would merely bolster its support for an expanded transatlantic service pattern which could only be achieved under an "open-skies" regime. British Midland is confident this is almost certainly the case with respect to a number of the U.S. carrier pending requests.

Counsel: Squire Sanders, Marshal Sinick, 202.626.6600