OST Docket Filings for July 1, 1997

Requests a certificate of public convenience and necessity to enable it to engage in scheduled foreign air transportation of persons, property and mail between any point in the United States and any point in Canada. America West understands such authority would be subject to the phase-in provisions on service to Toronto, which remain in effect until February 24, 1998. Concurrently with this application, America West is filing an exemption application for the identical authority to enable it to institute expanded service to Canada at the earliest possible time.

Subpart Q, Answers are due by July 29, 1997

Service List

Counsel: Baker Hostetler, Joanne Young, 202-861-1532

Application for an Exemption

America West Airlines, Inc. (Exemption, US-Canada)

OST-97-2672 | July 1, 1997

Pursuant to 49 U.S.C. §40109, and Subpart D of the Procedural Regulations of the Department of Transportation, America West Airlines, Inc. ("America West") hereby requests an exemption from 49 U.S.C. §41101, and from any other statute or Economic Regulation of the Department necessary to enable it to engage in scheduled foreign air transportation of persons, property and mail between any point in the United States and any point in Canada. America West understands such authority would be subject to the phase-in provisions on service to Toronto, which remain in effect until February 24, 1998. Concurrently with this application, America West is filing an application for a certificate of public convenience and necessity for the operating authority in question and requests that any exemption granted by the Department pursuant to this application remain in effect for two years or until America West is granted a certificate to operate these services, whichever occurs earlier.

Answers are due by July 19, 1997

Service List

Counsel: Baker Hostetler, Joanne Young, 202-861-1532

American Airlines, Inc. (New – Notice of Action Taken)

OST-97-2419 and Undocketed | Posted July 1, 1997

Scheduled foreign air transportation of persons, property, and man between a point or points in the United States and Cuiaba, Curitiba, Florianapolis, Fortaleza, Foz do Iguacu, Goiania, Joinville, Natal, Ribeirao Preto, and Vitoria, Brazil, and to integrate this authority with its existing certificate authority on Route 389 and its existing U.S.-Brazil exemption authority. American intends to operate this service pursuant to a code-share arrangement with Transportes Aereos Meridionais, S.A. (TAM) on flights operated by TAM, commencing August 1, 1997.

We dismissed, without prejudice, each carrier's application (American and TAM) to the extent it requested broad authority to code share between other points on both carriers' authorized routes, as mutually agreed upon, and to the extent it requested authority between any U.S. point and any Brazilian point listed in their joint application without specifically indicating how such code-share services would be conducted.

By: Paul Gretch / Counsel: Carl Nelson, 202-496-5647

Motion for Leave to File and Response of Delta Air Lines

American Airlines, Inc. and Aero California S.A. de C.V. (Exemption and Statements of Authorization, US-Mexico Code Sharing)

OST-97-2477, OST-97-2481, Undocketed | July 1, 1997

If the Department decides to consider blanket code-share authority, Delta/Aeromexico and other U.S. carriers with Mexico code-share arrangements have a right to seek comparable blanket authority to provide competing code-share services on a systemwide basis. The Department will need to determine the extent to which multiple blanket U.S.-Mexico code-share services would be consistent with the U.S.-Mexico bilateral agreement and/or would be accepted by the Government of Mexico on an extrabilateral basis. This inquiry will require consultations between the Governments of the United States and Mexico. Delta believes that the public interest strongly supports a liberal code-share regime and a policy that fosters and promotes the expansion of services of all types (direct and code-share) by carriers from both the United States and Mexico. To the extent that bilateral designation limitations restrict the Department's ability to grant blanket code-share authority to multiple U.S. carriers, the Ashbacker doctrine requires that other U.S. carriers have an opportunity to have a comparative evaluation of competing requests for systemwide authority.

Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060

Arriva Air International, Inc.

OST-96-1334 & OST-97-2184 | July 1, 1997

Re: Arriva Air International – Letter to Delores King

In addition, enclosed with this letter under seal is the confidential resume and fitness information relating to Arriva Air's recently-hired Chief Pilot, which is being submitted for in camera review and reference-checking by the DOT's Air Carrier Fitness Division. The individual involved is currently employed by another air carrier, but has accepted Arriva Air's offer of employment in the position of Chief Pilot. He has consented for his identity to be disclosed to the DOT and FAA in connection with Arriva Air's application process, but he has requested that his identity be kept confidential for a period of approximately two weeks, until he has formally begun his employment with Arriva Air. The enclosed information will be filed in the public docket as soon as the individual involved has joined Arriva Air."

Supplement No. 7 to Applications

As a result of its increased preoperating expenses, Arriva Air determined that it needed to raise additional working capital, over and above Arriva Air's current cash on hand, in order to meet the projected requirements of its remaining preoperating expenses and working capital reserves for its first year of operations. Arriva Air has just receive a commitment for the additional working capital it required in order to satisfy the Department's financial fitness test.

Counsel: Shaw Pittman, Nathaniel Breed, 202-663-8000

Order to Show Cause Establishing Final Service Mail Rates

Florida West International Airways, Inc. (Exemption Renewal)

OST-97-2646 | June 30, 1997

Letter in Support from Skyking Freight Systems – June 23, 1997

By: William W. La Mothe, President and CEO, 972-466-0103

Index

Intra-Alaska Class Service Mail Rates (Mainline Rate)

Order 97-6-27 | OST-95-429 | Issued June 25, 1997 | Served July 1, 1997

By this order the Department proposes to establish new intra-Alaska mainline service mail rates for the second half of 1997. The rates that are currently in effect were established by Order 96-12-43, served December 31, 1996, for the first half of 1997, i.e., January 1 through June 30, 1997. Those rates will remain in effect as final rates through June 30, or until we issue an order setting new final rates for the second half of 1997, whichever is later. All interested persons are requested to show cause why the findings and conclusions contained in this order should not be adopted.

Appendix A | Appendix B | Appendix C | Appendix D

By: Charles Hunnicutt

Application for Renewal of its Exemption

Northwest Airlines, Inc. (Exemption Renewal, US-Almaty)

OST-95-278 | July 1, 1997

At present, there is no air services agreement between the United States and Kazakhstan, and the prior U.S.-U.S.S.R. Agreement of 1990 does not include service to Almaty. on the basis of comity and reciprocity, the Government of Kazakhstan approved the proposed Northwest/KLM code-share service in November of 1995. Northwest has been providing U.S.-Almaty codeshare service in conjunction with KLM since December 9, 1995.

Service List

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

Advanced Notice of Proposed Rulemaking: Domestic Passenger Manifest

OST-97-2198 | July 1, 1997

Motion for Leave to File and Supplemental Comments of North American Airlines

North American in particular wishes to draw the Department's attention to the issue of single entity charters. These are charters where one entity both arranges and pays for the charter instead of each passenger paying for his or her fare separately as part of a charter package. Many different types of entities typically arrange for such charters, including companies, schools, nonprofit organizations, sports teams and individuals. By chartering an aircraft in this manner, the entity is obtaining an aircraft for use much like it would use a private aircraft. All of the passengers on the flight are present through the auspices of the charterer rather than from having bought separate tickets for the travel. Accordingly, the relationship between the airline and the passengers differs greatly from other charter and scheduled operations.

Counsel: Baker Hostetler, David Kirstein, 202-861-1756

Answer of Cincinnati/Northern Kentucky International Airport in Support

Sunworld International Airlines, Inc. (Renewal of Certificate of Public Convenience, US-Cayman Islands)

OST-95-666 & OST-95-667 | July 1, 1997

By: Robert Holscher, Director, 606-767-3151

TAM – Transportes Aereos Meridionais, S.A. (Notice of Action Taken)

OST-97-2421 and Undocketed | Posted July 1, 1997

(1) Exemption under 49 U.S.C. 40109 to conduct scheduled foreign air transportation of persons, property and mail between a point or points in Brazil, via intermediate points, and: (A) New York, New YorklNewark, New Jersey; Atlanta, Georgia; Miami and Orlando, Florida; Detroit, Michigan; Washington, D.C; Baltimore, Maryland; Houston, Texas; Chicago, Illinois; San Francisco and Los Angeles, California; and San Juan, Puerto Rico; and (B) Boston, Massachusetts; Houston and Dallas/Fort Worth, Texas; Denver and Vail, Colorado; Las Vegas, Nevada; MinneapolislSt. Paul, Minnesota; New Orleans, Louisiana; Philadelphia, Pennsylvania; San Diego, California; and Seattle, Washington, on a code-share basis only. (2) Statement of authorization under 14 CFR Part 212 to display American Airlines's designator code, on a blind-sector basis, on flights operated by TAM between: (a) Sao Paulo and Miami/Chicago/New York; (b) Rio de Janeiro and MiamilChicago/New York; and (c) Sao Paulo, on the one hand, and Belem/Belo Horizonte/Brasilia/Curitiba/Florianapolis/Fortaleza/Natal/Joinville/Goiania/Manaus/Porto Alegre/Recife/ Salvador/Vitoria/Foz de Iguacu/Cuiaba/Ribeirao Preto/Rio de Janeiro, on the other. TAM stated that it would not carry local traffic or provide local service between domestic U. S. points. Further, TAM stated that it would add new codeshare flights without formally amending its code-share agreement with American.

By: Paul Gretch / Counsel: Robert Silverberg, 202-944-3300

Order Removing Restriction and Reissuing Certificate

Trans Continental Airlines, Inc. (Removal of Certificate Restriction)

Order 97-6-28 | OST-97-2257 | Issued June 25, 1997 | Served July 1, 1997

Given the company's history of profitable operations and overall financial position, we no longer see any reason from a financial standpoint to continue the scheduled service restriction currently contained in its certificate. Moreover, we have no other reason to question the company's fitness. The carrier's management personnel appear to possess the qualifications needed to perform their responsibilities, and there is nothing in the record or otherwise known to us that leads us to question the carrier's compliance disposition.

During Calendar Year 1995, the company reported operating and net profits of $2.4 million and $2.5 million, respectively, on approximately $13.1 million in revenues; for the 12 months ending December 31, 1996, it experienced operating and net profits of $1.8 million and $1.9 million, respectively, on tote! revenues of approximately $19.8 million. Although the company's balance sheet at December 31, 1996, shows that, at that date, it had approximately $2.4 million in negative working capital, it also reported $18 million in total assets, and positive retained earnings and stockholders' equity of approximately $4.4 million.

Certificate of Public Convenience and Necessity for Interstate Air Transportation | Service List

By: Charles Hunnicutt

United Air Lines, Inc. (New – Notice of Action Taken)

OST-97-2358 and Undocketed | Posted July 1, 1997

Scheduled foreign air transportation of persons, property, and mail between a point or points in the United States and Campo Grande, Curitiba, Fortaleza, Florianopolis, Iguacu, Sao Luiz, Joao Passoa, Natal, Maceio and Cuiaba, Brazil. United requests that it be issued an exemption authorizing it to serve these additional code-share points as coterminals with the Brazilian points it is authorized to serve pursuant to its exemption issued by Order 96-7-43. United intends to operate this service pursuant to a code-share arrangement with VAR]G, S.A. (Viacao Aerea RioGrandense) on flights operated by VARIG, commencing October 26, 1997.

We dismissed, without prejudice, each carrier's application (United and VARIG) to the extent it requested broad authority to code-share between "other points on both carriers' authorized routes, as mutually agreed," and on future city pairs not specifically identified, and to the extent it requested authority between any U. S. point and any Brazilian point fisted in their joint application without specifically indicating how such code-share services would be conducted.

By: Paul Gretch / Counsel: Joel Burton, 202-637-9130

Varig, S.A. (Notice of Action Taken)

OST-97-2358 | Posted July 1, 1997

(1) Exemptions under 49 U.S.C. 40109 to: (A) conduct scheduled foreign air transportation of persons, property and mail between a point or points in Brazil, on the one hand, and Denver, Colorado; Honolulu and Maui, Hawaii; Las Vegas, Nevada; Portland, Oregon; Phoenix and Tucson, Arizona; San Diego, California; Seattle, Washington; and Boston, Massachusetts, on the other, on a code-share basis; and (B) coterminalize operations at the U.S. points noted in (A) above, with operations at Varig's existing Department-authorized U.S. points; and (2) a Statement of Authorization under 14 CFR Part 212 to display United Air Lines's designator code, on a blind-sector basis, on flights operated by Varig in the following markets: Sao Paulo, on the one hand, and New York/Los Angeles/Miami, on the other; Rio de Janeiro, on the one hand, and New York/Miami on the other; Miami, on the one hand, and Belem/Fortaleza/Manaus/Recife, on the other; and Sao Paulo, on the one hand, and Belem/Belo Horizonte/Campo Grande/Curitiba/Fortaleza/Rio de Janeiro/Manaus/Porto Alegre/Salvador/Brasilia/Recife/ Florianopolis/Iguacu/Sao Luiz/Joao Pessoa/Natal/Maceio/Cuiaba, on the other, and other points on Varig's and United's authorized routes, as mutually agreed. Varig stated that it would not carry local traffic or provide local service between domestic U.S. points. Varig requested that its request be granted for two years.

By: Paul Gretch / Counsel: Connie O’Keefe, 202-822-9070