<B> Washington Wire</B>
By Barbara Cook, Washington Correspondent
<B>DOT Studies CO/NW Stock </B>
The U.S. Department of Transportation said it will study whether the acquisition of Continental Airlines stock by Northwest Airlines constitutes a de facto international route transfer, which would come under DOT jurisdiction. But it gave the carriers an exemption for one year while it studies the route transfer question, and said the pending case of the U.S. Department of Justice against the equity transfer may make moot its need to issue a ruling.
<a name="2"><B>DOT: Federal Preempts Local Law In Dallas</B>
DOT has ruled that federal law preempts local restrictions proposed by the city of Fort Worth on air service at Dallas Love Field. DOT said airlines may operate flights within Texas and to Alabama, Arkansas, Kansas, Louisiana, Mississippi, New Mexico and Oklahoma as specified by federal law, but may not operate beyond those states. When Dallas/Fort Worth International Airport opened in 1974, the cities of Dallas and Fort Worth attempted to prohibit interstate flights out of Love Field, but Congress in 1979 and 1997 enacted amendments to allow service between Love Field and the states listed above. Fort Worth sued in Texas state court in 1998 to prevent the additional services.
<a name="3"><B>Open Skies Talks To Resume</B>
The United States and Argentina, concluding aviation talks, plan to hold another round in Buenos Aires in March in an attempt to reach an open skies accord.
<a name="4"><B>New Flight Recorder Policy Issued</B>
The Federal Aviation Administration has issued a new policy to encourage airlines to use information gathered on digital flight data recorders to spot trends that could lead to accidents. The agency said it will not use this information in most enforcement cases. The new policy follows a three-year test of the tracking concept with Alaska Airlines, Continental, United and US Airways. Information gained during this test already has been used to improve the safety of approaches at more than a dozen airports worldwide, and documented unusual autopilot disconnects, Ground Proximity Warning System warnings, excessive takeoff angles and unstable landing approaches.
<a name="5"><B>New Federal Per Diems</B>
The new per-diem allowances for federal government business travelers in the continental United States that took effect Jan. 1 for the first time offer more than one rate for New York City, so that a government traveler who stays in Manhattan will be allowed more leeway on hotel charges than one who stays in Queens. The General Services Administration also will no longer include taxes as part of the per diem room rate.
<a name="6"><B>DOT Begins Airport Study</B>
DOT will be studying 13 airports in its review of airport practices and airline competition to learn what they have done to discourage or encourage new entry, including whether they have used passenger facility charge money to enhance competition. DOT teams will visit Atlanta, Baltimore, Charlotte, Cincinnati, DFW, Denver, Detroit, Houston, Minneapolis/St. Paul, Phoenix, Pittsburgh, Salt Lake City and San Jose. Meanwhile, airports nationwide have been filing comments with DOT as part of the review. Many stated that funding constraints on expansion programs have served to deter new entry since the airports have no available space. Several also called the federal slot rules that restrict takeoffs and landings at four major airports another barrier.