	

                    UNITED STATES OF AMERICA

            DEPARTMENT OF TRANSPORTATION

                    OFFICE OF THE SECRETARY

                             WASHINGTON, DC

Docket:  OST-2002-12496							Served: June 13, 2002  	 

NOTICE

U.S.-Vietnam Third-Country Code-Share Opportunity 

By this notice we invite all U.S. certificated air carriers interested
in using seven weekly frequencies and a third-country code-share
opportunity in the U.S.-Vietnam market to file applications as specified
below in the captioned docket.  

The Memorandum of Discussions (MOD) signed in March 2000 by the United
States and Vietnam, states the intent of the respective authorities to
allow, inter alia, third-country code-sharing of passenger air
transportation in the U.S.-Vietnam market (via intermediate points) on
the basis of comity and reciprocity.  Specifically, the MOD provides
that up to three cooperative marketing arrangements “between any
number of U.S. airlines and any number of third-country airlines” may
be authorized.  The code-share arrangements may serve between any points
in the United States, on the one hand, and up to three Vietnamese points
selected by the United States (via any intermediate points), on the
other hand.  The MOD provides for a total of 21 weekly round-trip
frequencies for use by U.S. carriers to operate these services.

By Order 2001-8-21, served August 23, 2001, the Department awarded Delta
Air Lines, Inc., Northwest Airlines, Inc. and United Air Lines, Inc.
seven weekly frequencies each for U.S.-Vietnam third-country
code-sharing services and granted the necessary regulatory authority for
the carriers to conduct their respective code-share services.  Each
allocation of frequencies was subject to the condition that the
frequencies would revert automatically to the Department if unused for a
period of 90 days and the dormancy period began on the date of service
of the order (i.e., August 23, 2001).  Subsequently, by Order
2001-11-15, the carriers were granted dormancy waivers due to the
circumstances of September 11, 2001, but that order noted that any
dormant limited-entry route authorities not resumed by April 1, 2002,
would revert automatically to the Department.  Northwest Airlines did
not begin services to Vietnam by that date; thus, its frequencies have
reverted to the Department, and the designation as well as the
frequencies formerly held by Northwest are at issue before the
Department.

On May 9, 2002, American Airlines submitted an application for six
frequencies for third country services to Vietnam via Tokyo, Japan, with
Japan Airlines Company, Ltd.  Subsequently, additional applications for
some or all of the available frequencies were filed in Docket 2000-7194,
the Docket for the previous allocation of frequencies in 2001, by Delta
Air Lines (with code-share partner Korean Airlines seeking six
frequencies), Northwest Airlines, Inc. (with code-share partner Malaysia
Airlines for reallocation of seven frequencies), and United Air Lines,
Inc. (with code-share partners All Nippon Airways Co. Ltd, and Thai
Airways International Public Co. Ltd. seeking seven frequencies). 
Inasmuch as there are more requests for frequencies than there are
frequencies available, we will consolidate these requests (and related
pleadings thereto) into a new docket (noted in the heading of this
notice) to consider these requests as well as any other applications
that may be filed in response to this notice.  We will allow carriers
with the pending requests to supplement their applications to provide
the information we are requiring for consideration.

We request by this notice that all U.S. air carriers interested in
making use of the code-share opportunity and related frequencies
described above file applications (or supplemented applications) with
the Department in the newly established docket no later than June 27,
2002.  Answers to such applications should be filed no later than July
8, 2002.  Replies to answers should be filed no later than July 15,
2002.

Carriers without the requisite operating authority should file
exemption/designation applications and requests for statements of
authorization to serve the affected markets in conjunction with the
foreign code-share carrier(s) involved.  Carriers with the requisite
underlying authority and statements of authorization need only file
requests for the available code-share opportunity.  All applications
should include, at a minimum, the following information:  (a) the
proposed startup date; (b) the markets to be served, including the
number and identity of U.S. cities that would receive nonstop-to-nonstop
connections in the U.S.-Vietnan market, and the total elapsed travel
time (including layover time) for each flight between each initial point
of origin and each final destination in both directions (i.e. provide a
total elapsed round-trip travel time for each city pair and break-out
subtotals for the elapsed times on the U.S. to Vietnam flights and the
Vietnam to U.S. flights); (c) the number of frequencies to be provided
between the U.S. and Vietnam and the duration of service if not provided
on a year-round basis for each leg of the flights;  (d) type of
aircraft, including the number of seats, to be used between the U.S. and
the intermediate point(s) and between the intermediate point(s) and
Vietnam; (e) the foreign code-share carrier involved, the country and
the specific intermediate point(s) over which the services will be
provided, and which carrier would be operating each leg of the flights;
(f) existing authority held to conduct the operations, if applicable;
and (g) assurance that the U.S. air carrier applicant has provided or
will provide the Department with the Compliance Statement referred to in
Section IV of the DOT Code-Share Safety Program Guidelines (issued
February 29, 2000) concerning a safety audit of the foreign air
carrier(s) involved.  In addition, carriers must provide as a part of
their applications, copies of the relevant cooperative service
arrangements, if not already on file with the Department.  Applicants
are free to submit any additional information that they believe will
help us in making our decision.

Except for the procedural dates, exemption applications should conform
to Part 302, Subpart C of our regulations (14 CFR Part 302).  All
applications (for operating authority and/or designation) should be
filed with the Department of Transportation in the established docket,
Dockets and Media Management, Room PL-401, 400 Seventh Street, SW,
Washington, DC 20590.  

We intend to allocate the available opportunities at issue based on the
applications and responsive pleadings filed in response to this notice. 
We intend to make our decision using written, show-cause procedures in
accordance with Part 302 of our regulations (14 CFR Part 302).   

We will authorize service of documents by facsimile and by electronic
mail.  Carriers that are interested in such service, however, should
state if they want service by email and should provide interested
parties with their fax number and/or email address.  

We will serve this notice on all U.S. certificated air carriers
operating large aircraft.

By:

							PAUL L. GRETCH

							         Director

						     Office of International Aviation

(SEAL)

Dated:  June 13, 2002 

An electronic version of this document is available on the World Wide
Web at

http://dms.dot.gov//reports/reports_aviation.asp

 The MOD does not contemplate direct service between the United States
and Vietnam.

 The United States has selected the Vietnamese cities of Hanoi, Ho Chi
Minh City, and DaNang.  The three points selected by the United States
may be changed subject to a 30-day advance notice requirement.

 Delta’s code-share partner was Air France; Nortwest’s partners were
Malaysia Airlines and KLM Royal Dutch Airlines; and United’s partners
were All Nippon Airways Co., Ltd., Thai Airways International, and
Lufthansa German Airlines.

 See Docket OST-2002-12301.

 See Docket OST-2000-7194.

The original submission is to be unbound and without tabs on 8 ½" x 11"
white paper using dark ink (not green) to facilitate use of the
Department's docket imaging system.  In the alternative, filers are
encouraged to use the electronic submission capability available through
the Dockets/DMS Internet site (  HYPERLINK "http://dms.dot.gov" 
http://dms.dot.gov ) by following the instructions at the web site). 

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