BEFORE THE 

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

Applications of

NATIONAL AIR CARGO GROUP, INC.

d/b/a NATIONAL AIRLINES

for amended certificates of public convenience 

and necessity pursuant to 49 U.S.C. § 41102 to 

engage in interstate and foreign air transportation 

of persons, property, and mail

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Docket DOT-OST-2012-0204

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Docket DOT-OST-2012-0205 

ANSWER OF DELTA AIR LINES, INC.

IN SUPPORT OF OBJECTIONS OF UNITED AIRLINES, INC. 

Communications with respect to this document should be sent to:

Andrea Fischer Newman

Senior Vice President, Government Affairs

Alexander Van der Bellen

Managing Director – Regulatory and 

International Affairs & Associate General 

Counsel

Christopher Walker

Regional Director – Regulatory and 

International Affairs

DELTA AIR LINES, INC. 

1212 New York Avenue, N.W. 

Washington, D.C. 20005

(202) 842-4184

sascha.vanderbellen@delta.com

chris.walker@delta.com

September 5, 2013
BEFORE THE 

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

Applications of

NATIONAL AIR CARGO GROUP, INC.

d/b/a NATIONAL AIRLINES

for amended certificates of public convenience 

and necessity pursuant to 49 U.S.C. § 41102 to 

engage in interstate and foreign air transportation 

of persons, property, and mail

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)

)

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)

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Docket DOT-OST-2012-0204

 and

Docket DOT-OST-2012-0205 

ANSWER OF DELTA AIR LINES, INC.

IN SUPPORT OF OBJECTIONS OF UNITED AIRLINES, INC. 

Delta Air Lines, Inc. (“Delta”) hereby answers in support of United Airlines, Inc. 

(“United”), which objects to the tentative grant of authority to National Air Cargo Group, 

Inc. (“National”) to provide scheduled interstate and foreign air transportation of persons, 

property, and mail.

1

 Based on new facts and evidence that have just surfaced in 

connection with the General Services Administration (“GSA”)’s FY 2014 City Pair Contract 

Awards (August 16, 2013), it is clear that National has not accurately portrayed its service 

plans to the Department. Far from the modest plan described in its fitness application, 

National actually intends to engage in extensive international codeshare service in some 

31 city-pair markets fed by Emirates-operated flights on seven long haul U.S.-Dubai trunk

routes.2

 National’s recently revealed service plans exceed the scope of the evidence and 

information considered in the DOT’s underlying fitness review; furthermore, National’s 

 1 Show Cause Order 2013-4-12. 

2 Dallas/Ft. Worth-Dubai, Houston-Dubai, Los Angeles-Dubai, New York-Dubai, San FranciscoDubai, Seattle-Dubai, and Washington DC – Dubai. 
Answer of Delta Air Lines

Page 2

GSA city pair bid is a sham transaction designed to circumvent the requirements of the Fly 

America Act, calling into question National’s compliance disposition. 

For these reasons, Delta agrees with United (i) that Show Cause Order 2013-4-12

should be set aside, (ii) that National be required to submit detailed information 

demonstrating fitness for its actual service proposal, and (iii) that interested parties have 

the opportunity to comment on that information. 

I. National’s Application Lacked Information Necessary for the Department’s 

Determination of Fitness

The Department’s tentative grant of National’s fitness application for scheduled 

passenger service was issued on the basis of an incomplete record that did not reveal the 

true extent of National’s plans. National is a small carrier that proposed very limited

scheduled passenger service between Afghanistan and Dubai on a single Boeing 757-200 

aircraft; National indicated it would offer connecting service to Washington Dulles with “a 

U.S. or foreign... codeshare partner operating the Dulles-Dubai leg.”3 It was on this basis 

that DOT issued its Show Cause determination. 

Now, however, in its GSA City-Pair proposal, National purports to offer a much 

more expansive scheduled international network with codesharing on seven daily 

Emirates-operated flights between the U.S. and Dubai. The Development of this 

expansive new service proposal was likely known to National during the pendency of its 

fitness review; yet National failed to supplement its application. Lacking this important 

information the Department acted, tentatively granting National’s application. Further, it 

appears that National and Emirates may have violated the Department’s prohibition on 

advertising and sales by participating in the City Pair bidding without having the necessary 

economic authority. 

 3 Application of National at 4.
Answer of Delta Air Lines

Page 3

As pointed out in United’s objections, National must be able to demonstrate to the 

Department that it would have the wherewithal to manage an extensive codeshare 

relationship with Emirates, something far beyond the scope of its current operations. 

National’s application to the Department anticipates little, if any, additional investment in 

reservations and ticketing that would be necessary to prepare for broad codesharing 

operations. Additionally, using codeshares does not relieve an airline of responsibility to 

the passenger being carried by a partner, and it is unclear that National would be able to 

ensure compliance with (1) its partner under the Air Carrier Access Act; (2) rules 

governing disclosure of codeshare services; (3) customer complaints and notification 

requirements; and (4) credit card transaction rules. Nothing in National’s fitness 

application record supports National’s ability to meet these important requirements.

II. National’s Codesharing with Emirates Violates the Fly America Act

National’s codesharing proposal with Emirates, put forward in its GSA bid, is a 

blatant attempt to circumvent the Fly America Act. National would be doing little or no 

flying in the city-pair markets at issue, but instead would be renting its code to Emirates 

and acting as little more than a booking agent for Emirates to capture Fly America traffic 

on its U.S.-Dubai service. As a U.S. carrier, National is allowed to bid on U.S. 

Government contracts such as the City Pair Program, but Emirates is prohibited from 

doing so. 

To be sure, codesharing arrangements can be an effective way for U.S. carriers to 

extend the reach of their networks and improve the attractiveness of their bids – but 

National’s role is so de mininimus there is no doubt that Emirates would be the true

beneficiary of the City Pair contract, violating the purpose and intent of the Fly America 

Act. Indeed, the GSA has expressed its “understanding that the U.S. carrier [in such 

codeshare arrangements] receives a substantial portion of the revenue [and] does not act 
Answer of Delta Air Lines

Page 4

as a mere booking agent on behalf of the foreign carrier.” 70 Comp. Gen 713, B-240956 

at 717-718.

III. Conclusion

National has not yet been found fit to offer scheduled international transportation, 

and its far-reaching bid with Emirates to engage in extensive codesharing is a transparent 

attempt to circumvent the Fly America Act. For the reasons detailed above, Show Cause 

Order 2013-4-12 should be set aside and National’s fitness record reopened to receive 

additional evidence and comment concerning the extensive new international service

plans revealed in its GSA bid. 

Respectfully submitted,

Alexander Van der Bellen 

Managing Director – Government Affairs 

& Associate General Counsel

DELTA AIR LINES, INC.
CERTIFICATE OF SERVICE

A copy of the foregoing document has been served this 5th day of September, 2013, upon 

the following persons via email:

MAtwood@cozen.com

EWadsworth@cozen.com

francis.heil@aa.com 

robert.wirick@aa.com 

jrichardson@johnlrichardson.com 

russell.pommer@atlasair.com 

esauer@ssd.com 

sam.white@evergreenairlines.com 

kevin.montgomery@polaraircargo.com 

agoerlich@ggh-airlaw.com 

anita.mosner@hklaw.com 

jennifer.nowak@hklaw.com 

howard.kass@usairways.com 

benjamin.slocum@usairways.com 

mbenge@zsrlaw.com 

psanderlin@kalittaair.com 

john.allen@faa.gov

hershel.kamen@united.com 

dan.weiss@united.com 

steve.morrissey@united.com 

karine.faden@united.com 

thomas.bolling@united.com 

doug.kelley@united.com 

lhalloway@crowell.com 

gmurphy@crowell.com