<B>WashingtonWire</B>
By Barbara Cook
<B>UAL Files For Approval</B>
United Airlines officially has filed with the U.S. Department of Transportation for the approval of the certificate transfer that would result from UAL Corp.'s acquisition of both US Airways and Allegheny Airlines. United and US Airways also applied for an interim exception to ease the transfer of US Airways' international service to United once all necessary permissions have been obtained, and requested that DOT approve the final transfer of international authority that would result when the merger is complete. United further requested route integration authority to enable it to integrate its services on the transferred routes with its existing service on international routes. "The transfer of US Airways' and Allegheny's international authority to serve these countries does not give rise to any international aviation policy concerns and will not impair the access of other U.S. carriers to any of those international markets," United said in its filing. The carrier added that United, US Airways and Allegheny operate no overlapping nonstop international service and noted that Open Skies agreements with many of the countries involved allow for unlimited expansion opportunities by U.S. carriers.
<A NAME="2"><B>DOT Okays US Airways' Merger Subsidiary</B>
US Airways received clearance from the U.S. Department of Transportation to operate a new subsidiary carrier that will play a key role in the proposed US Airways-United merger. DOT issued a show-cause order proposing to transfer the commuter authority of the former Paradise Island Airlines to Potomac Air, a new subsidiary of US Airways. Paradise served points in the Bahamas from Florida until it ceased operations in May 1999. DOT noted that if the UA-US Airways merger is completed, Potomac Air will be sold to investor Robert Johnson and become DC Air. DC Air will assume US Airways' slots and other assets at Reagan Washington National. DOT cautioned, however, that its findings with respect to Potomac Air's fitness "should in no way be taken as a prejudgment of the fitness of DC Air." Initially, however, US Airways said Potomac Air would operate regional, short-haul service from Washington National.