OST-95-969 / Northwest Airlines (renewal of experimental certificate US-China) / November 21, 1997

Application of

under 49 U.S.C. S 41101 for renewal of Segment 1 of its Experimental Certificate of Public Convenience and Necessity for Route 378 (U.S.-China)

Northwest Airlines, Inc. ("Northwest"), pursuant to 49 U.S.C. S 41101, 14 C.F.R. S 302.1750(a)(3) and 14 C.F.R. Part 377, hereby applies for renewal of Segment 1 of its Experimental Certificate of Public Convenience and Necessity for Route 378, which authorizes Northwest to engage in foreign air transportation of persons, property and mail between the terminal point Chicago, the intermediate points Los Angeles, San Francisco, Seattle or Honolulu, an intermediate point in Japan, and the coterminal points Shanghai, Guangzhou, and Beijing, China. Segment 1 of Northwest's Route 378 Certificate was last renewed by Order 93-4-39, effective through May 20, 1998. 1/ By this Application, Northwest requests

1/ Northwest's Route 378 Certificate was amended by Order 96-10-44 to add Segment 2 authorizing Northwest to serve Detroit-Beijing. Segment 2 of Northwest's Certificate does not expire until December 5, 2001. Northwest herein seeks renewal of Segment 1 of its Route 378 Certificate only.

renewal of Segment 1 of its Route 378 Certificate for a period of five years. 2/

In support of this Application, pursuant to section 302.1704 of the Department's Rules, Northwest submits the following:

1. Applicant. Northwest is a Minnesota corporation with its principal place of business located at the Minneapolis-St. Paul International Airport in St. Paul, Minnesota 55111.

2. U.S. Citizenship. Northwest is a citizen of the United States within the meaning of 49 U.S.C. S 40102(15), as its president and two-thirds of its board of directors and other managing officers are U.S. citizens and at least 75 percent of its voting stock is owned or controlled by U.S. citizens.

3. Authority Requested. Northwest seeks renewal of Segment 1 of its Experimental Certificate of Public Convenience and Necessity for Route 378, which authorizes Northwest to engage in foreign air transportation of persons, property and mail between the terminal point Chicago, the intermediate points Los Angeles, San Francisco, Seattle or Honolulu, an intermediate point in Japan, and the coterminal points Shanghai, Guangshou, and Beijing, China. Northwest's services described herein are fully consistent with the terms of the U.S.-Japan and the U.S.-Peoples Republic of China bilaterals.

2/ In making this Application, Northwest invokes the automatic extension provisions of the Administrative Procedure Act, 5 U.S.C. S 558(c), as implemented in Part 377 of the Department's Rules.

4. Fitness. Northwest is an air carrier holding certificates of public convenience and necessity and exemptions authorizing it to engage in scheduled air transportation of persons, property and mail between the United States and various foreign points. The Department has previously found that Northwest is fit to provide such foreign air transportation; and Northwest is fit, willing and able to perform the foreign air transportation proposed in this application. Northwest hereby requests that the Department take official notice, pursuant to Rule 24 of its procedural regulations, of all data previously filed to establish Northwest's fitness and all prior determinations made by the Department concerning Northwest's fitness. 3/

5. Service Proposal. A map of Northwest's Los Angeles-Tokyo-Beijing/Shanghai services is attached as Exhibit A. Northwest's illustrative schedule for its Los Angeles-Tokyo-Beijing/Shanghai services effective January 1, 1998 is attached as Exhibit B. Northwest's fuel burn projection for these services is set forth in Exhibit C. Northwest does not anticipate any difficulty in obtaining fuel.

6. Environmental Waiver. Pursuant to 14 C.F.R. S 302.1704(b), Northwest hereby requests that the Department waive the requirement of an Environmental Evaluation, given the limited nature and environmental significance of the proposed service.

3 See, e.q., Order 96-10-44 (finding Northwest fit to serve Detroit-Beijing).

7. Expedited Non-hearing Procedures. Northwest requests that the Department process this Application pursuant to the simplified procedures under Subpart Q. 14 C.F.R. S 302.1750(a)(3).

8. Opening Argument. Renewal of Segment 1 of Northwest's Route 378 Certificate clearly is in the public interest. Northwest's Los Angeles-Tokyo-Beijing/Shanghai services provide substantial consumer benefits and serve as an important competitive alternative to other U.S. and foreign flag services between the United States, on the one hand, and Beijing and Shanghai, China, on the other hand.

WHEREFORE, Northwest Airlines, Inc. respectfully requests, pursuant to 49 U.S.C. S 41101, that the Department renew Segment 1 of its Experimental Certificate of Public Convenience and Necessity for Route 378 for a period of five years.

Respectfully submitted,

Megan Rae Poldy
Associate General Counsel
NORTHWEST AIRLINES, INC.

November 21, 1997