OST-98-3333 / US Airways / Charlotte-London Gatwick / Reply of Continental Airlines and Motion for Leave to File / February 6, 1998
Application of
US AIRWAYS, INC.
Docket OST-98-3333for an exemption pursuant to 49 U.S.C. § 40109 (Charlotte-London (Gatwick))
REPLY OF
CONTINENTAL AIRLINES, INC.
AND MOTION FOR LEAVE TO FILE
Continental /1 has no objection whatever to the US Airways application for authority to provide service between Charlotte and London (Gatwick) using the designation abandoned by Laker when it terminated its Fort Lauderdale -London scheduled service and announced that it was becoming a charter-only airline. Continental does object strongly, however, to Laker's suggestion that Continental's Cleveland designation should be transferred to US Airways instead of Laker's designation. Continental states as follows in reply to Laker and in support of Continental's motion for leave to file this reply.
1/ Common names of carriers are used.
Reply of Continental and Motion for Leave to File
Page 2
1. Although Laker now claims it "intends" to operate Ft. Lauderdale-London scheduled service some time "in the 1998 summer season," Laker has announced far and wide that it has become a charter airline and abandoned its scheduled services. (
See the US Airways Reply at 2, n.1, and "Laker Airways May Find Identity in Charter Service," Aviation Daily, January 5, 1998 at 3) Whether Laker plans to operate the twice-weekly flights it proposed as an "initial" service pattern when it first secured Fort Lauderdale -London authority in 1996 or three weekly flights, it could offer the very same service on the very same aircraft as a charter carrier. When Laker applied for renewal of its Fort Lauderdale -London, Miami-London and Fort Lauderdale/Miami/Orlando-Manchester/Glasgow (Prestwick) authority in December, it carefully avoided saying it intended to reinstitute service on any of these routes. (See Laker's December 15, 1997, application in Docket OST-97-2089) If Laker is serious about providing scheduled service between southern Florida and the U.K., it can provide such service between Miami and London, Manchester or Glasgow and between Fort Lauderdale and Manchester or Glasgow. Laker today provides no scheduled service in any of these markets, however, and it has not suggested it intends to provide scheduled service in any of these markets except Fort Lauderdale -London. Under these circumstances, Laker's dog-in-the -manger request to keep its Fort Lauderdale-London scheduled-service authority should be denied.
Reply of Continental and Motion for Leave to File
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2. When the Department awarded Laker Fort Lauderdale-London authority it "put Laker on notice (as we did when we recently granted Laker exemption authority to serve the Miami-London market) that should another U.S. carrier seek to serve U.S. Route I with a proposal that offers a superior level of service" the Department would "revisit the issue and ... reconsider our award to Laker." (Order 96-5-36 at 4) Clearly, both the Continental plan to introduce daily nonstop service between its hub at Cleveland and London and the US Airways plan to introduce daily nonstop service between its Charlotte hub and London will provide far greater benefits than two or three weekly Laker flights between Fort Lauderdale and London which could be operated just as well in charter service. Continental's Cleveland- London service will provide Cleveland's only nonstop U.S.-Europe service and offer additional connecting opportunities to passengers throughout the network of 60 cities Continental serves through Cleveland. In contrast, Fort Lauderdale currently receives nonstop or single-plane service to three European cities and a total of 21 foreign points, and Laker would provide only local gateway-to-gateway service more suited to charter operations.
3. Continental is finalizing its plans to inaugurate daily nonstop Cleveland London service, and the institution of such service is an important component of Continental's plan for further development of its Cleveland hub. Cleveland London service is a critical element of Continental's development plan for its Cleveland hub, which requires the cross-feed between additional domestic spokes
Reply of Continental and Motion for Leave to File
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and Cleveland- London service to support both domestic expansion and nonstop service between Cleveland and Europe. Clearly, Continental and Cleveland should not be deprived of the opportunity to offer this valuable public service so that an avowed charter airline can offer two or three weekly flights as scheduled service rather than as charter service. To assure Continental's ability to institute Cleveland-London service as proposed and develop its Cleveland hub further, Continental must retain its designation for Cleveland-London service.
4. Continental requires leave to file this reply since Continental is not the applicant in this proceeding. US Airways applied for Charlotte -London authority using the Fort Lauderdale designation Laker had abandoned, and the first suggestion that Continental's Cleveland designation should be substituted appeared in Laker's answer to the US Airways application. Although no application for utilization of Continental's Cleveland designation is pending before the Department, Continental should be permitted to respond to Laker's contention that Continental's Cleveland designation should be transferred to US Airways. Since Continental's reply is being filed in advance of the due date for replies, no delay will result from acceptance of Continental's reply.
Reply of Continental and Motion for Leave to File
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For the foregoing reasons, Continental urges the Department to deny Laker's suggestion that Continental's Cleveland- London designation should be transferred to US Airways and to grant Continental leave to file this reply.
Respectfully submitted,
CROWELL & MORING LLP
R. Bruce Keiner,
Counsel for Continental Airlines, Inc.