OST Docket Filings for March 26, 1998
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OST Docket Filings for March 26, 1998
Aspen Mountain Air | Great Lakes | Jet America (2) | Mexicana | IATA
Answers and Replies:
Northwest/KLM | Savannah/Hilton Head | US-Japan (11)
Notices of Action Taken:
Form 41 Confidentiality:
Notices and Orders:
Alaska Airlines, Inc. (Form 41, Schedule B-7)
OST-96-1637 | March 26, 1998
Motion for Confidential Treatment
Counsel: Alaska, Steven Hamilton, 206-433-3211
Community of Savannah, Georgia/Hilton Head, South Carolina (Chicago O'Hare)
OST-98-3603 | March 26, 1998
The application also poses, but does not answer, important policy questions regarding the allocation of capacity at O'Hare. Despite its desire for service to O'Hare, Savannah has not shown that this desire cannot be satisfied with service to Midway Airport or articulated a basis on which the Department can, consistent with its obligation to ensure that capacity at O'Hare allocated to its highest and best use, grant the instant request.
Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130
Compania de Transporturi Aeriene Romane - TAROM (Notice of Action Taken)
OST-98-3567 | Filed February 27, 1998 | Action Taken March 26, 1998
We approved TAROM's request to conduct operations from behind Romania, via Romania and intermediate points in Belgium, Bulgaria, the Czech Republic, Denmark, France, Germany, Hungary, Ireland, and the Netherlands, to the coterminal points New York and Chicago; at a total of seven frequencies per week, no more than five of which are to be used for operations to New York. The authority is also subject to the condition that if at any time before March 31, 1999, any airline(s) of the United States offer scheduled service to Romania with its own aircraft, TAROM shall Ire entitled to operate a total number of frequencies equal to those so operated by the U.S. airline(s). We deferred action on TAROM's request to serve Malta and Slovakia as intermediate points pending an airport site visit by FAA security personnel. To the extent not granted or deferred, we dismissed that portion of the carrier's application to conduct operations which are not currently available under the U.S.-Romania Air Transport Agreement without prejudice to refiling at a later date. We found that our actions were consistent with the public interest and the provisions of the U.S.-Romania Air Transport Agreement.
Applicant Rep: Constance O'Keefe, 202-822-9070
Compania Mexicana de Aviacion, S.A. de C.V. (Exemption, Mexico City/Guadalajara/Monterrey/Hermosillo-El Paso)
OST-98-3669 | March 26, 1998
Mexicana requests authority from the Department to provide scheduled combination service between the coterminal points Mexico City, Guadalajara, Monterrey and Hermosillo, Mexico, on the one hand, and El Paso, Texas, on the other hand. Mexicana expects to commence operations on these routes shortly after receiving authority from the Department of Transportation, and plans to conduct its services with B727-200 or A320 aircraft configured to seat 156 passengers.
Attachment: DGAC License
Answers are due by April 10, 1998
Counsel: Squire Sanders, Robert Papkin, 202-626-6601
Delta Air Lines Inc. - (Notice of Action Taken)
OST-98-3419 | Filed February 13, 1998 and amended March 25, 1998 | Action Taken March 25, 1998
We have decided to grant Delta's request for an accelerated procedural schedule to its amendment. As we stated in our decision with respect to the supplements filed by Continental Micronesia and American, the common response dates will facilitate our consideration of the revised applications, and our consideration of the U.S.-Japan proceeding in Docket OST-98-3419, without prejudicing any party's right to an opportunity to respond to the supplemented application. (Notices of Action Taken, dated March 23 and March 24, 1998). These same considerations also apply to Delta's revised application. Therefore, we will require that answers to American's March 24 supplement be filed no later than March 26, 1998, and that replies to any answers be filed no later than April 3, 1998. Parties may file such comments separately or include their comments in their responses to Order 98-3- 15. While we realize that the time period for answers is short, Delta has faxed its pleading to all parties to this proceeding and the supplement raises similar issues to those presented by the supplements filed by Continental Micronesia and American. In these circumstances, we found that the answer period provided would be sufficient for interested parties to comment on Delta's filing.
Applicant rep: Robert Cohn, 202.663.8060
Exec Express II, Inc. d/b/a Aspen Mountain Air (High Density Rule, Chicago O'Hare-Sioux City/Branson)
OST-98-3671 | March 25, 1998
Application for an Exemption from the High Density Rule
Application to commence twice-daily nonstop service in the Chicago-Sioux City, Iowa and Chicago-Branson, Missouri markets. AMA will operate these flights using 30-passenger Dornier 328 aircraft, of which it has nine in its fleet. These operations, which AMA plans to inaugurate this summer, will require four daily arrival and four daily departure slots at O'Hare.
Answers are due by April 10, 1998
Counsel: Boros Garofalo, Aaron Goerlich, 202-822-9070
Great Lakes Aviation, Ltd. (EAS)
OST-97-2785 | March 26, 1998
Notice to Terminate Essential Air Service at Fairmont,
MN
Both Minneapolis/St. Paul and Sioux Falls are located within a close proximity to the Fairmont area and both are accessible entirely via interstate highways. With the recently approved higher speed limits, both airports provide convenient access to jet service to many destinations. Minneapolis/St. Paul also serves as a major hub for Northwest Airlines.
By: Great Lakes, Douglas Voss, 712-262-1000
OST-96-1661 | March 24, 1998
Re: Letter from DOT to Jet American | Letter from DOT to Jet America dated January 7, 1998
On February 25, 1998, Jet America filed a request for an exemption from the one year "use or lose" requirements of section 204.7. The carrier stated that its original financial plan had not materialized and that it was actively pursuing new financing which it hoped to have in place within the next few months. On March 3, 1998, we orally granted that motion and gave the carrier until September 9, 1998, to commence operations under its certificate authority. We confirm that action here.
By: John Coleman
Kiwi International Airlines, Inc. and Kiwi International Holdings, Inc.
Order 98-3-25 | Issued and Served March 25, 1998
This consent order concerns reporting delinquencies by Kiwi International Airlines, Inc. (Kiwi) that constitute violations of 49 U.S.C. §41708 and the accounting and reporting requirements specified in 14 CFR Part 241 of the Department's regulations. This order runs as well against Kiwi International Holdings, Inc. (KIH) (collectively "KIWI") because of KIH's acquisition of the certificate of Kiwi. This order directs KIWI to cease and desist from future violations and to pay a compromise civil penalty. KIWI has failed to file required reports on time on numerous occasions in the past year. During this period, the Department's staff sent KIWI numerous warning letters about its delinquencies. Since that time, KIWI has become delinquent in filing other reports. KIWI consents to the issuance of an order to cease and desist from future violations of 49 U.S.C. § 41708 and Part 241 of the Department's regulations and to the assessment of $40,000 in compromise of potential civil penalties.
By Counsel: Rosalind Knapp
Northwest/KLM Antitrust Immunity
OST-98-3341 | March 26, 1998
Since there is no nonstop transatlantic city-pair route overlap between Continental and Northwest or KLM, since even the combined transatlantic share of Continental (6.5%) and Northwest/KLM (7.5%) would be only 14%, and since no alliance agreement between Continental, Northwest and KLM has been reached, the Department has no reason to consolidate consideration of a potential Continental alliance with Northwest/KLM into the review of the Northwest/KLM relationship or to expand that review to incorporate voluminous documentation related to the relationship between Continental and Northwest. As the attachments to American's unauthorized response demonstrate, code-sharing between Continental and Northwest is clearly pro-competitive.
Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2615
Southwest Airlines Co. (Form 41, Schedule B-7)
OST-96-1640 | March 23, 1998
Motion to Withhold Information from Public Disclosure
Counsel: Southwest, Donald Hood, 214-792-4049
1998 US-Japan Combination Service Proceeding
OST-98-3419 | OST-96-1091 | OST-96-1126 | OST-96-1199 | March 26, 1998
Comments of American Airlines in Support of
Order 98-3-15
The Department was also correct in concluding the restricted-entry MOU carriers, like American, must be able to implement their new services promptly. Otherwise, the incumbent carriers -- which have unlimited rights to mount new U.S.Japan operations -- would further lengthen their lead in the marketplace, to the detriment of competition.
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
Objections and Consolidated Answer of Continental and
Continental Micronesia
Since Continental and Continental Micronesia alone are seeking 16 frequencies for service starting after 1998, it is not "too early to say" sufficient numbers of frequencies will be unavailable. Clearly, they will not. Under these circumstances, the Department's decision to award authority based solely on start-up dates without full comparative consideration is unlawful, particularly when the result will be an award of large numbers of frequencies to American, JAL's partner, for Tokyo service at non-hub U.S. gateways and to Delta for small Japan markets.
Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2615
Consolidated Response and Answer of The Dallas/Fort
Worth International Airport
Dallas/Fort Worth supports grant of the American, Continental and Delta supplemental requests so long as such grants do not delay the prompt finalization of Order 98-3-15 by April 30, 1998. If additional requests for 1998 frequencies are filed, all post-Order 98-3-15 requests should be decided in a separate proceeding.
Counsel: Bagileo Silverberg, Michael Goldman, 202-944-3305
Consolidated Answer of Delta Air Lines to
Amended Applications of American and Continental
In light of the high priority the Department has placed on the immediate implementation and utilization of the extremely valuable U.S.-Japan rights and the important public interest benefits that would result from such services, it makes eminent sense to limit consideration of the award of available frequencies to proposals involving service in 1998. The number of frequencies requested for 1998 services does not exceed the number of frequencies available under the U.S.-Japan MOU.
As a result of the Continental stock acquisition by Northwest Airlines, Inc., Continental is the alter ego of Northwest. Given Northwest's dominant incumbent position and its ability to serve any U.S.-Japan gateway-to-gateway and beyond market without restrictions, it would be untenable for the Department to award valuable non-incumbent carrier rights that will redound to Northwest's benefit.
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
Answer of The State of Hawaii to Supplement No
2 of Continental Micronesia
The State of Hawaii (the "State" or "Hawaii") strongly supports Supplement Number Two to the Application of Continental Micronesia, Inc. ("Continental Micronesia") filed on March 19, 1998, requesting the immediate allocation of five round trip frequencies between the U.S. and Japan in order to allow Continental Micronesia to implement new Honolulu-Tokyo service on December 15, 1998.
Answer of The State of Hawaii to Amendment No.
3 of Delta Air Lines
Counsel: Hawaii and Stephen Lachter, 202-862-4321
Answer by Massachusetts Port Authority
Massport supports DOT's tentative award of a Boston-Tokyo non-stop route to American Airlines and allocation of seven nonstop Boston-Tokyo authority to American Airlines. Massport urges that the Show Cause Order as it relates to Boston and the award of a Boston-Tokyo route and seven frequencies to American be made final immediately. DOT has often taken the step of making a Show Cause Order final within one or two days of the final date for comments. DOT is urged to use that procedure here so that American can proceed to prepare for the start of Boston-Tokyo non-stop service.
Exhibit 13 | Attachment: Letters in Support
By: MASSPORT, Charles Yelen, 617-418-4152
Objections of Northwest Airlines to Order
98-3-15
Requests that the Department reconsider its tentative decision regarding the U.S.-Japan same-country code-share frequencies and allocate all 28 of them to Continental and Northwest.
Counsel: Northwest, Megan Rae Poldy, 202-842-3193
The City of San Jose, California and the San Jose International Airport respectfully pray that the Department of Transportation will take immediate action and all steps necessary to grant American Airlines, Inc. the additional weekly frequency which it has requested to allow it to provide the required daily pattern of service between San Jose and Tokyo; and for such other and further relief consistent with the premises herein as may be found fit and in the public interest.
Counsel: Hewes Gelband, Theodore Seamon, 202.337.6200
Objections of Trans World Airlines
The Department cannot shut its eyes to the way companies actually operate, but should treat Northwest and Continental as a single economic entity. It must recognize that an award to Continental would allocate limited non-incumbent frequencies to the unrestricted carrier that already provides the most service between the U.S. and Japan.
Appendix A: Scheduled Service Between the US and Japan
Counsel: TWA and Richard Fahy, 202-457-4764, rfahy@ibm.net
Agreements Adopted by the Traffic Conferences of the International Air Transport Association
OST-98-3326 | March 26, 1998
Technical Correction of Pending Agreement
PTC3 Fares 0042 corrects Fares 0021
OST-98-3561 | March 26, 1998
PTC2 Europe-Africa Fares 0027/0028 and 0052 correct memoranda in this docket
OST-98-3670 | March 31, 1998
Application for Approval of Agreements
PTC3 Telex Mail Vote 923 Korea (TC3)-Russia fares (Reso 010z)
By: David O'Connor
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