OST Docket Filings for March 20, 1998

Aerolineas began service in the Buenos Aires-Caracas-Miami market in March 1997, operating several flights weekly with B747 aircraft. Although Aerolineas does not currently provide service on the route, it wishes to have its authority renewed so that operations may resume as soon as warranted by commercial conditions.

Counsel: Squire Sanders, Robert Papkin, 202-626-6601

Alamosa, CO; North Platte, Scottsbluff, NB; Laramie, Riverton/Lander, Rock Springs, Worland, WY

Order 98-3-21 | OST-97-2960 | OST-97-2954 | OST-97-2955 | OST-97-2958 | OST-97-2956 | OST-97-2959 | OST-97-2981 | Issued March 20, 1998 | Served March 26, 1998

Order Extending Service Obligation

By: John Coleman

Application for an Amendment to its Certificate of Public Convenience and Necessity

DHL Airways, Inc. (Certificate of Public Convenience and Exemption, Cincinnati/Austin-Mexico City/Guadalajara/Monterrey)

OST-98-3654 | March 20, 1998

Application for an Exemption

DHL plans to begin service under the exemption authority by operating between Cincinnati via Austin and Guadalajara five days per week in each direction utilizing B727 freighter aircraft having a total cargo payload capacity of 46,000 pounds. The cargoes will consist of documents, small packages, and air freight accepted for international carriage on DHL Worldwide Express. Upon arrival in Guadalajara, the cargoes will be distributed for local delivery within Mexico by DHL Internacional De Mexico, S.A. de C.V.

DHL projects first-year shipments amounting to 7,140,000 pounds (3,570,000 pounds to Mexico, and 3,570,000 pounds from Mexico) with total first-year revenues of $8,782,200 on the Cincinnati/Austin-Guadalajara service.

Exhibit DHL-Cert-1: Illustrative Schedule

Answers are due by April 17, 1998, Subpart Q

OST-98-3655 | March 20, 1998

DHL contemplates expanding the service consistent with market growth and therefore requests that the exemption authority requested herein include authority to integrate this service with services under its certificate authority between Cincinnati, Ohio/Houston, Texas, and Mexico City, Guadalajara, and Monterrey, Mexico. Designations for new operations under this integrated authority will be requested at the opportune time.

Exhibit DHL-Ex-1: Illustrative Schedule

Answers are due by April 6, 1998

Counsel: DHL and R. Tenney Johnson, 202-663-9030

Lufthansa German Airlines (Frankfurt-Chicago O'Hare)

OST-98-3552 | March 20, 1998

Reply of Lufthansa

Reply of United Air Lines and Motion for Leave to File

Failure to approve Lufthansa's application will necessarily result in fewer seats being made available to Chicago-Frankfurt local passengers, inevitably leading to higher fares for these passengers than would be the case if infrastructure constraints at O'Hare did not prevent one competitor from introducing additional capacity into the market. Moreover, and most importantly in terms of numbers of passengers affected, failure to approve the application will result in fewer seats being made available for behind- and beyond-gateway connecting passengers, resulting in fewer service alternatives for these passengers and less competition between United/ Lufthansa and other alliances and carriers offering connecting service in U.S.-Europe markets

Attachment 1: February 20, 1998 Apollo Dispaly Screens
Attachment 2: February 24, 1998 Apollo Display Screen

Counsel: Wilmer Cutler, James Campbell, 202-663-6000

American's opposition to Lufthansa's application appears, moreover, to be a belated and hollow objection to United's relationship with Lufthansa and a continuation of American's complaint about the size of its own operations at Chicago. American also threatens to leave the Chicago-Frankfurt market if slots for Lufthansa's flight are granted. As discussed below, most of this rhetoric is simply a repetition of old complaints that had no merit when they were originally made and certainly do not now offer any basis for denying Lufthansa's request.

Counsel: Untied and Ginsburg Feldman, Joel Burton, 202-637-9130

Application for Renewal of its Exemption

Northwest Airlines, Inc. (Exemption Renewal, US-Russia, Codeshare with Alaska Airlines)

OST-96-1357 | March 20, 1998

Northwest seeks renewal of its authority to engage in the transportation of persons, property and mail in foreign air transportation between points in the following U.S.-Russia markets: (1) Anchorage-Magadan; (2) Anchorage-Khabarovsk; (3) Anchorage-Vladivostok; and (4) Anchorage-Petropavlovsk--Kamchatski. Northwest's services in these markets will be limited to its codesharing relationship with Alaska under which Alaska will operate the aircraft and display Northwest's "NW" designator code

Counsel: Northwest, Megan Rae Poldy, 202-842-3193

Application for Renewal of Exemption

Pacific International Airlines, S.A. (Scheduled All-Cargo, Panama City-San Juan via Curacao)

OST-97-2232 | March 20, 1998

Pacific commenced weekly service between Panama City and San Juan via Kingston and Curacao in March 1997 utilizing B727-100 freighter aircraft. These operations have been performed without accident or incident. Pacific submits that its fitness to continue to provide these services is thus clearly established.

Counsel: Squire Sanders, Robert Papkin, 202-626-6601

Pacific International Airlines, S.A. (Notice of Action Taken)

OST-97-3085 | Filed November 4, 1997 | Action Taken March 20, 1998

Notice of Action

Exemption from 49 USC section 41301 and Statement of Authorization under 14 CFR Part 212 to permit Pacific International Airlines to wet lease B727-100 freighter equipment to Cayman Airways for all-cargo operations between the Cayman Islands and Miami, Florida, for a period of one year.

Applicant Rep: Robert Papkin, 202-626-6601

Answer of Detroit City Airport Study Committee in Opposition to Application

Pro Air, Inc. (High Density Rule, New York LaGuardia)

OST-98-3583 | March 19, 1998 (Received March 20, 1998)

Answer of The Office of The Queens Borough President, City of New York

The financial and operational viability of Pro Air at DET is highly questionable. Pro Air's passenger load factor through the end of 1997 is 17 percent (down from 20 percent through the end of the third quarter); it is unable to pay its debts; and it could not continue flying without a substantial, and perhaps inappropriate, subsidy from DET.

Attachment A | Page 2: Pro Air T-100 Data for the Third and Fourth Quarter of 1997
Attachment B: Detroit City Airport Study Committee v FAA, Case # 97-1434
Exhibit A: Letter from McGuire Woods to Pro Air, December 23, 1997
Exhibit B: Letter from McGuire Woods to Pro Air, January 6, 1998 and February 6, 1998
Exhibit C: Pro Air Letter Stating No Objection of Withdrawal of McGuire Woods as Counsel
Exhibit D: Letter from McGuire Woods to Pro Air, February 12, 1998

Counsel: Winston Strawn, Jim Burnley, 202-371-5700

Airline passengers seeking to fly between Detroit and New York City currently have a plethora of non-stop flights to choose from. Specifically, Northwest Airlines offers eight daily non-stop round-trip flights to Newark Airport and another eight daily non-stop round-trip flights to LaGuardia Airport. Continental Airlines offers six daily non-stop round-trip flights to Newark Airport, and Pro Air offers another three daily non-stop round-trip flights to Newark. Moreover, both Northwest and TWA provide three daily non-stop round-trip flights to Kennedy Airport, and Delta Airlines offers another daily non-stop round-trip flight from Kennedy.

Counsel: Queens County, David Nocenti, 718-286-2880