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Northwest Airlines, Inc.

As a result of the tragic terrorist attacks on September 11, the airline industry is experiencing a significant reduction in traffic and increased costs due to heightened security measures. Northwest already has announced the need to reduce schedules by 20% and furlough as many as 10,000 employees. In light of these events, Northwest is seeking a temporary waiver from any DOT dormancy conditions applicable to its international operating authority (e.g., frequency allocations and designations or other international operating rights, including codeshare operating rights). Northwest requests that this temporary waiver be applicable through March 30, 2002, the end of the 2001/2002 Winter Season. The applicable dormancy periods would begin to run again on March 31, 2002, the first day of the 2002 Summer Season. Northwest agrees to notify DOT as soon as it decides to discontinue for 90 days or longer any service that is subject to a dormancy condition.

United Airlines already filed for a temporary waiver on September 25, 2001 in Docket OST-01-10699. Northwest believes that DOT should grant the applications of Northwest and United, and any other U.S. carrier that seeks similar relief. Granting U.S. carriers a blanket waiver for the 2001/2002 Winter Season would relieve the carriers and the DOT of the expense and delay of processing multiple individual waiver requests. In the present emergency circumstances, the resources of the Department's and airlines' staffs can be better devoted to more critical issues.

Counsel:  Northwest, Megan Rae Rosia, 202-842-3950, megan.rosia@nwa.com

Northwest Airlines, Inc. and United Air Lines, Inc.

Counsel:  Shaw Pittman, Alexander Van der Bellen, 202.663.8060

Northwest Airlines, Inc./United Air Lines, Inc./American Airlines, Inc. and Continental Air Lines, Inc.

Counsel:  FedEx, Thomas Donaldson, 901.434.8586, tfdonaldson@fedex.com 

Northwest Airlines, Inc./United Air Lines, Inc./American Airlines, Inc. and Continental Air Lines, Inc.

Continental and United oppose the additional conditions urged by Delta and request the Department to act expeditiously to issue the blanket dormancy waivers they are seeking subject only to the conditions they have proposed. If Delta's conditions were adopted, the administration of blanket dormancy waivers would actually subject the recipients to more procedural requirements and more stringent reporting rules than would be the case if they simply sought ad hoc waivers under normal procedures. Such burdensome conditions would negate the purpose underlying the blanket waivers. Continental and United jointly urge that the Department issue blanket waivers subject only to the conditions originally proposed by the applicants and do so as far in advance of the sort of one-time report of dormancy utilization and startup proposed by Delta is adopted.

Counsel:  Crowell Morning, Bruce Keiner, 202.624.6215, and Wilmer Cutler, Jeffery Manley, 202.663.6670, jmanley@wilmer.com  

Northwest Airlines, Inc./United Air Lines, Inc./American Airlines, Inc./Continental Air Lines, Inc./US Airways, Inc. and Delta Air Lines, Inc.

Delta would not oppose the grant of blanket temporary waivers with respect to dormant international services as requested by United, American, Northwest, Continental, and other airlines, under which the 90-day dormancy provision would begin to run on March 31, 2002 and terminate on June 30, 2002. Delta's blanket waiver should have the same duration.

American, Continental, and United would not oppose the grant of Delta's application for the temporary allocation of four U.S.-Brazil combination frequencies for Atlanta-Rio service through March 31, 2002 and thereafter, subject to recall not less than 90 days after the carrier proposing to reinstitute U.S.-Brazil service using the last four dormant U.S.-Brazil frequencies gives the Department and Delta written notice of its intent to use such frequencies.

If any U.S.-Brazil frequencies are withdrawn for dormancy, any carrier may seek permanent allocation of those frequencies at the appropriate time.

Counsel:  Shaw Pittman, Robert Cohn, 202.663.8060

Waiver of Dormancy Conditions on Limited Entry Route Authority; Delta Air Lines, Inc., United Air Lines, Inc., American Airlines, Inc., Continental Air Lines, Inc., Northwest Airlines, Inc., US Airways, Inc. and U.S.- Brazil Frequencies

We have decided to grant the captioned carriers temporary blanket relief from the dormancy conditions on their limited-entry route authorities, subject to certain conditions, described below. We will also grant such relief to all other U.S. carriers holding limited-entry international authority that is subject to our standard dormancy conditions. As the carriers have noted in their applications and other responsive pleadings, airline services have been in a temporary period of adjustment since the events of September 11. Given these circumstances, we find that temporary blanket relief from the dormancy conditions is warranted and in the public interest, and will serve to afford the carriers needed flexibility to resume their international services on a phased-in basis, without risk that they will lose their route awards for nonuse. All of the parties filing applications and comments support the award of temporary relief.

At the same time, we recognize the value of limited-entry route awards and the importance of ensuring that services in restricted markets are available to consumers to the full extent possible. Taking these factors into consideration, we have decided to grant carriers a waiver of the dormancy conditions through March 31, 2002, i. e., through the 2001/2002 -winter traffic season. Under the terms of this waiver, any limited-entry authorities that have not been used for the applicable dormancy period prior to April 1, 2002, will be deemed dormant as of that date. We will also require all U.S. carriers to notify the Department, in writing, no later than February 15, 2002, of the limited-entry route rights that they will not be using beginning April 1.

While the applicants in this case have offered a somewhat different proposal for the duration of the dormancy relief and attendant conditions, we believe that our decision here best balances our objectives to provide the carriers needed flexibility in resuming their international airline services, while at the same time encouraging the use of valuable route rights to the benefit of the traveling and shipping public. In this regard, we note that the waiver would afford carriers over six months since September 11 to resume services in their authorized limited-entry markets. The February 15 notice requirement will provide all interested carriers notice of any authorities that will be dormant after expiration of the blanket waiver, and sufficient time to plan for services during the summer traffic season, including receipt of the necessary regulatory authorities.

Moreover, we recognize that specific cases may call for relief going beyond that which we have deemed justified on a blanket basis. In this regard, carriers are free to seek extension of the dormancy waiver beyond March 31 for specific city-pair limited-entry services where they can demonstrate that circumstances warrant. However, carriers should file such requests in sufficient time for other interested carriers to comment and for the Department to make a decision in a timely manner with respect to disposition of the authority at issue.

Finally, we will entertain applications from other carriers for temporary reallocation of limited-entry route authorities that are not being used during the blanket waiver period. This will facilitate greater use of the rights available and the potential for more services to the public in important international markets during the blanket waiver period.

We have decided to deny the balance of Delta's request for allocation of the frequencies beyond March 31, 2002. For the reasons stated above, we have granted all U.S. carriers blanket dormancy relief for their international services, including Brazil, through March 31, 2002. In these circumstances, we are not persuaded that granting a longer-term Brazil allocation to Delta at this time is in the public interest. Should one of the other authorized carriers seek a further extension of the dormancy waiver for its Brazil services, Delta, at that time, can seek a further extension of its frequency allocation. We remind all carriers of the need to ensure a smooth transition of services in circumstances involving temporary reallocation of limited-entry route authorities.

By:  Read Van De Water

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