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OST-2008-0157 - United - US-Russia Frequency Allocation
OST-2007-0021 - American - Allocation of Six Weekly Combination Frequencies - Chicago-Moscow
OST-2008-0181 - Alaska, American, Continental, Delta, Northwest, United and US Airways - Temporary Blanket Dormancy Waiver
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OST-2008-0157 - Frequency Allocation - US-Russia May 6, 2008 Application for a Frequency Allocation United applies for an allocation of seven weekly frequencies under the US-Russia Air Services Agreement to operate daily scheduled nonstop combinations services between Washington, DC and Moscow, Russia. United will operate its Washington-Moscow service from its hub at Washington Dulles International Airport. In Moscow, United will serve Domodedovo Airport. United is already authorized to operate services between Washington and Moscow under its Certificate of Public Convenience and Necessity for Route 603. United proposes to start its daily nonstop service between Washington and Moscow on October 26, 2008. It will initially use B767-300 equipment from its existing fleet configured with 193 seats (10F 32C 151Y). The schedule is as follows:
Counsel: United, Jeffrey Manley, 301-229-8571, jeffrey.manley@united.com
May 7, 2008 American does not object to United's request, provided that the Department simultaneously grants our application, filed today in OST-2007-0021, for allocation of one additional frequency for Chicago-Moscow service effective next spring. In its application, United states that "according to information from the Department, there are currently 15 frequencies still remaining for allocation. The grant of United's request will, therefore, leave an additional eight frequencies unallocated." There are ample frequencies available to meet the requests of American and United, and the Department should simultaneously grant both applications. Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com
OST-2008-0157 - United Air Lines - US-Russia Frequency Allocation
May 8, 2008 Consolidated Answer of Aeroflot Russian Airlines Aeroflot does not dispute that the United and American requests are consistent with the Agreement. However so are the applications for code-share authority filed by Aerotlot and Northwest Airlines, Inc. on October 13, 2006 in Docket OST-2006-26106; by Aerotlot and Continental Airlines, Inc. on October 31, 2006 in Docket OST- 2006-26257; and by Aerotlot and Delta Airlines, Inc. on January 3, 2007 in Docket OST-2007-26805. Each ofthose code-share applications remains pending before the Department. The bilateral code-share authority requested in each ofthe three code-share applications would be at least as consistent with the U.S.-Russia Air Transport Agreement as the services proposed by United and American. Given the eighteen months that have elapsed since submission of the code-share applications submitted by Aerotlot and Northwest and by Aeroflot and Continental and the sixteen months that have elapsed since submission of the code-share application submitted by Aeroflot and Delta, Aeroflot respectfully submits that the Department should approve the long pending applications for authority to code-share with Northwest, Delta, and Continental before acting on United and American's more recently filed applications. Counsel: Garofalo Goerlich, Don Hainbach, 202-776-3976
OST-2008-0157 - United Air Lines - US-Russia Frequency Allocation May 10, 2008 Re: Combined Answer of Baltia Air Lines Baltia opposes United’s application for an additional 7 frequencies and American’s application for an additional one frequency on the grounds that United does not need additional frequencies and American is banking the frequency, not intending to use it for more than a year. In principal, Baltia opposes the holding of frequencies for an indefinite period. Baltia has no opposition to United commencing daily scheduled nonstop service between Washington, D.C., and Moscow provided it uses the seven frequencies it has been holding unused for the past 13 years, provided further that if United does not commence operations on the stated date, those frequencies held for past 13 years expire for dormancy. Baltia has no opposition to American reapplying next year for a frequency to increase its service but applying more than one year prior to initiating an increase of one day’s service seems unreasonable. It appears that American may be concerned that there may not be a frequencies available next year. Obviously, U.S. airlines have not developed the U.S.-Russia market. The benefit and value of the Russian market have gone to foreign carriers. If frequencies are neither used nor available, U.S. carriers will not be the ones who develop, and enjoy the benefits of, the market in the future. Baltia has overcome odds in raising the capital for a start-up airline to enter this market. After having established its initial operations, Baltia has an interest to develop daily service to St. Petersburg, daily service to Moscow and to other cities in Russia. Baltia does not want to be precluded from developing this market because carriers have banked the US-Russia frequencies. The Department of Transportation is the depository of frequencies, not private carriers. The Department’s stated policy is to use frequencies or loose them. Counsel: International Business Law Firm, Steffanie Lewis, 202-296-1111, slewis@iblf.com
OST-2007-0021 - American Airlines - Allocation of Six Weekly Combinaiton Frequencies - Chicago-Moscow
May 12, 2008 American Airlines, Inc. has completed its poll of interested parties in connection with our application of May 7, 2008 in the captioned docket. We are seeking the allocation of one additional U.S.-Russia weekly combination frequency to increase service between Chicago and Moscow effective the week of May 3, 2009. Continental, Delta, and Northwest do not object, provided that fulfillment of American's request does not disturb their respective holdings of dormant codeshare frequencies. United does not object provided that its application for seven U.S.-Russia frequencies, filed on May 6, 2008 in DOT-OST-2008 0157, is immediately granted. On May 7, 2008, Baltia Air Lines, a non-operating start-up applicant in DOT-OST-2007-0007, advised by email that it objects to American's application "to bank any frequency until next year." We question the standing of Baltia to object. Founded in 1989, Baltia was granted certificate authority and frequencies by Order 1996-2-51, February 26, 1995, but did not start service. That authority remained dormant for almost five years and was revoked by Order 99-12-6, December 8, 1999. Nearly eight years later, on October 3, 2007, Baltia filed another application, in DOT-OST-2007-0007, which remains pending. Baltia has made no showing that grant of one additional weekly frequency to American would jeopardize the allocation of one weekly frequency required by Baltia to commence its proposed service, since seven weekly frequencies will remain unallocated even after the award of seven to United and one to American. In these circumstances, the Department should grant American's application in this docket at the same time it grants United's application in DOT-OST-2008-0157. Counsel: American, Carl Nelson, 202-496-5647
May 12, 2008 By its application American seeks the allocation of one additional frequency under the U.S.‑Russia ASA in order to start a seventh weekly flight between Chicago and Moscow on May 3, 2009. American will start six weekly flights next month under a previously granted allocation. United has also filed an application for an allocation of seven weekly U.S.-Russia frequencies to start daily Washington-Moscow service in October 2008. See Docket DOT-OST-2008-0157. Pursuant to polling, United has determined that no carrier objects to United's application. United has no objection to the grant of American's application so long as that does not affect the immediate grant of United's application. As United noted in its application, there are sufficient frequencies available to grant both of these applications. Counsel: United, Jeffrey Manley, 301-229-8571
OST-2008-0157 - United Air Lines - US-Russia Frequency Allocation This is to advise you that, pursuant to a polling, United has determined that none of the carriers served with United's referenced application for seven additional U.S.‑Russia frequencies will object to that application. One carrier, Baltia Air Lines, Inc., urged that United's frequencies not remain "in effect for an indefinite period [to be] available to other carriers who wish to provide service, if United is not operating on those frequencies." The Department relies upon dormancy conditions, rather than temporary allocations, to accomplish the goal stated by Baltia. United has consented to the imposition of dormancy conditions on the seven new frequencies. To the extent that Baltia may be referring to United's existing allocation of seven frequencies, for which dormancy conditions have been waived, it should submit its comments in Docket DOT-OST-1996‑1672. American has applied for one additional frequency to start an additional weekly service next summer and urges that grant of United's allocation not delay the allocation of that frequency to American. Grant of United's application will leave eight frequencies unallocated, one of which will be available for the allocation that American is seeking. In these circumstances, United urges the Department to grant United's unopposed application for seven additional frequencies without further delay and without awaiting the answer date of May 21, 2008. United urgently needs this authority to begin marketing these services immediately. Counsel: United, Jeffrey Manley, 301-229-8571
OST-2008-0157 - United Air Lines - Frequency Allocation - US-Russia Filed May 6, 2008 and May 7, 2008 | Issued May 23, 2008 United - Allocation of seven (7) weekly U.S.-Russia combination service frequencies for scheduled foreign air transportation of persons, property and mail between Washington, D.C. and Moscow, Russia. United states that it already holds a designation and allocation of frequencies to support a twice-daily U.S.-Russia code-share service but that it requires this additional allocation so that it can begin daily direct nonstop service using its own aircraft. American - Allocation of one (1) weekly U.S.-Russia combination service frequency for scheduled foreign air transportation of persons, property and mail between Chicago, Illinois and Moscow, Russia. American states that it already holds an allocation for six weekly frequencies for its Chicago-Moscow service and that by this application it seeks to round out its service pattern to daily effective May 2009. On January 24, 2008, the United States and the Russian Federation agreed, ad referendum, to revised Annexes to the U.S.-Russia Air Transport Agreement and stated that, pending their entry into force, their respective aeronautical authorities intend to implement the provisions of those Annexes on the basis of comity and reciprocity. We have decided to grant the requests of United and American. Under the U.S.-Russia aviation agreement, U.S. carriers may operate 63 weekly scheduled combination frequencies. Those frequencies are currently undersubscribed, with sufficient frequencies available to satisfy the United and American requests. The proposed services of United and American would offer travelers new and/or additional U.S. carrier service options in the restricted U.S.-Russia market. Accordingly, we have determined that grant of the pending requests, as conditioned below, is consistent with the public interest. With regard to Baltia, taking into account all the elements of record, we see no persuasive basis to deny the requested authority. Similarly, with respect to Aeroflot, we are not persuaded to withhold the authority sought here by United and American; we will instead address Aeroflot’s concerns separately. Finally, we also note that our action here does not affect the current U.S.-Russia authority of Continental, Delta, or Northwest. By: Paul Gretch
July 2, 2008 United requests that the start-up date of its Washington, DC-Moscow services be deferred by one season to the beginning of the summer 2009 season. This deferral is necessary due to scheduling changes that have been implemented to address the continuing, unprecedented increases in fuel prices and softening of the domestic economy since the Department's May 23 decision. At the time United applied for the right to serve the Washington, DC-Moscow route oil costs were approximately $115/barrel. Oil costs now exceed $140/barrel. As a result, United now expects significantly higher operating costs if it were to institute its first ever non-stop service to Moscow in October than it anticipated at the time of application. If granted, the deferral will have the additional advantage of permitting United to begin Washington, DC-Moscow services at the beginning of the season when demand is highest. The Department previously granted a similar request by United to defer the start date of its San Francisco-Guangzhou service to June 30, 2009. See, Department Approval dated April 25, 2008 in Docket OST-2007-28567. Deferral of United's Washington, DC-Moscow services will not adversely affect any other carrier. There are additional frequencies that remain unallocated should another carrier propose new services. Moreover, no other carrier has proposed to start services within the time-frame relevant to United's request except American Airlines, Inc. which was also allocated an additional U.S.-Russia frequency by the May 23, 2008 Notice. American's new service is subject to a condition that it must start within 10 days of May 3, 2009. Counsel: United, Julie Oettinger, 301-229-8571
July 3, 2008 Re: US Airways Does Not Object to Motion of United US AirWays does not object to the Motion of United, and indeed considers that the relief requested by United is justified. However, US Airways' May 22 Motion remains pending and ripe for a decision. US Airways' Motion seeks relief similar to that requested by United, is supported by virtually identical circumstances, and is unopposed. US Airways urges the Department to grant, either prior to, or contemporaneously with the Motion of United, the Motion of US Airways. Counsel: US Airways, Howard Kass
July 9, 2008 Re: Polling Results and Request for Delayed Start-Up Date This is to advise that United has completed its poll of carrier representatives in the attached service list for the above-referenced motion, filed on July 2, 2008. United is requesting to delay the start date of its Washington, D.C.-Moscow services by one traffic season to March 29, 2009. The Department recognizes that carriers face an increasingly difficult economic environment as a result of escalating fuel costs and has recently granted similar requests to delay the start date of some international service. With the exception of Baltia Air Lines, carrier representatives stated they had no objection to the approval of United's July 2 motion. On July 7, Baltia, a non-operating start-up applicant, advised by-mail that it objected to United's request to delay the start date of its Washington, D.C.-Moscow services. United questions Baltia's standing to object to its request given that Baltia has yet to start the U.S.-Russia service it has been pursuing since 1995 and is still addressing issues related to its latest certificate application. Moreover, even if Baltia successfully completes the Department's certification process in the near future, the Department could still approve United's July 2 Motion without limiting Baltia's ability to inaugurate its long deferred New York-St. Petersburg service since seven weekly frequencies remain unallocated. In any event, Baltia made the same objection to the Department's recent allocation of an additional U.S.-Russia frequency to American Airlines to add new service starting next May, which is more than a month later than United's deferred start-up date. The Department should grant United the brief extension it seeks for the same reasons that it allocated American the additional frequency over Baltia's objection. Finally, contrary to Baltia's assertions, United is prepared to start its Washington, D.C.-Moscow services next summer and will actively promote and sell the service through the intervening months. Counsel: United, Julie Oettinger, 202-296-2370
Filed July 2, 2008 | Approved July 10, 2008 We will grant United's request to defer, for one traffic season, its startup deadline for its Washington, D.C.-Moscow service, Consistent with United's request, we will require the carrier to institute service no later than March 29, 2009. We note that US Airways filed an answer in support of United's motion. We note further the objection of Baltia Air Lines, Inc.; however, taking into account all the elements of record, we see no persuasive basis to deny the request of United. By: Robert Finamore |
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