OST-01-9310

OST-01-9310

United Air Lines, Inc.

OST-01-9310	March 30, 2001	Contingent Application for Two Pendente Lite Slot Exemptions	Nonstop Beyond Perimeter Slots Washington (DCA)- L.A.
		Attachments: Proposed Service
		Service List

United proposes to operate daily roundtrip DCA-LAX service with 182seat Boeing 757-200, Stage 3 aircraft. United requests that its exemption become effective immediately upon TWA ceasing to use the two beyond-perimeter slot exemptions granted it by Order 2000-7-1 for DCA-LAX service. A pendente lite allocation of the exemption slots to United would ensure that the service benefits generated by TWA's DCA-LAX service are not only protected but substantially expanded, providing many more consumers throughout the Western United States with their first single-plane service or new competitive access to DCA.

Counsel: Wilmer Cutler, Jeffery Manley, 202.663.6670, jmanley@wilmer.com

Alaska Airlines, Inc.; America West Airlines, Inc.; Continental Airlines; TWA Airlines LLC; United Air Lines, Inc.

Order 01-4-8
OST-01-9185
OST-01-9288
OST-01-9309
OST-01-9310
OST-01-9326

Issued April 6, 2001
Served April 6, 2001

Order

Pendente Lite Authority to Continue to Operate two slots at Reagan National Airport

We have decided to grant the TWA LLC application at this time pending approval by the Federal Aviation Administration for the requisite operating authorities. We deny the applications of Continental, Alaska, United, and America West.

We agree with the parties supporting the application that the public interest is best served by granting TWA LLC's request. Without the requested relief, an abrupt service cessation is likely causing substantial inconvenience and confusion for DCA-Los Angeles passengers. While we agree that other applicants could also provide the interim service until a new carrier is selected, even in these circumstances the transition costs for passengers could be significant. For example, schedules might alter significantly, reservations would have to change, tickets reissued, and passengers informed of the changes.

We also agree with the commenters that the approval be very short-term in nature. In that regard the Department has set a very aggressive timetable: proposals are due April 16, answers are due April 30, and we fully expect to issue a final carrier selection decision in May. The authority granted here will expire 90 days after the issuance date of this order or when a replacement service is selected, whichever is earlier. Finally, we wish to make clear that our action here in no way gives American Airlines any advantage whatsoever in the long-term carrier selection decision.

By: Susan McDermott