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OST-99-5959

American Eagle Airlines, Inc.

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

American Eagle Airlines, Inc.
Mobile Airport Authority-Atlantic Coast Airlines
Huntsville-Madison County Airport Authority
Greater Baton Rouge Airport District
Charleston County Aviation Authority-Atlantic Coast Airlines
National Airlines, Inc.

By this order the Department is amending its actions in Orders 98-4-21 and 98-9-24 by reallocating eight of the Chicago O'Hare Airport slot exemptions that were authorized to American Eagle in those orders. Specifically, slot exemptions that were previously designated for American Eagle to provide nonstop regional jet service to Montgomery, AL, and Shreveport, LA, are withdrawn and are redesignated for implementation of nonstop regional jet service between O'Hare and Baton Rouge, LA (two slot exemptions for American Eagle), Huntsville, AL (three slot exemptions for American Eagle) and Mobile, AL (three slot exemptions for Atlantic Coast Airlines). The reallocation of these slot exemptions is conditioned on their being used solely for implementation of service in the designated markets.

By:  Brad Mims

American Eagle Airlines, Inc.

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

American Eagle Airlines, Inc. / Charleston County Aviation Authority/Atlantic Coast Airlines

We have already determined in Order 99-7-17 that we would reallocate the three remaining slot exemptions at O'Hare to a carrier to serve Charleston, SC. In summary, we did so on the basis that Charleston is the largest O'Hare market without nonstop service and that the Charleston-O'Hare market is clearly large enough to support nonstop jet service. We affirm those findings here. Thus the only decision at issue in this order is the designation of the air carrier applicant for the reallocation of those exemptions.

ACA's proposal, the only one now pending for Charleston-O'Hare operations, meets our guidelines for exceptional circumstances. It would introduce new nonstop service in a market where none now exists; it would use Stage 3 jet aircraft; and it reasonably appears to be financially and operationally viable. ACA has also assured us that it will use self-help means of supplementing the requested exemptions in order to provide a full service pattern of at least two round trips a day in the market. Such commitments are a critical consideration under our slot exemption policy goal of striving for the maximum public benefit through the use of our slot exemption powers. We will therefore amend Order 99-7-17 to reallocate an additional three slot exemptions to ACA to be used to provide at least two round trips a day between O'Hare and Charleston, SC. ACA may use these exemptions only for the provision of nonstop regional jet service in that city-pair market.

By:  Bradley Mims

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