OST Docket Filings for July 23, 1997

OST Docket Filings for July 23, 1997

Pleadings:

Arriva | Chicago O'Hare and LaGuardia Slots | IATA | US-Chile Combination

Notices of Action Taken:

Kiwi

Notices and Orders:

Intra-Alaska Class Service | Lorair | Order Confirming Notices of Action Taken

Arriva Air International, Inc.

OST-97-2184 | OST-96-1334 | July 17, 1997

Correspondence – Letter from Air Carrier Fitness to Counsel

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The information filed on June 5 and July 1 in connection with pending certificate applications of Arriva Air International (Dockets OST-96-1334 and OST-97-2184) remains under review and consideration at this time. However, our review to date has identified several areas where additional information or explanation is needed in connection with our assessment of Arriva's fitness, as set out in the enclosed Information Request.

Information Request

Arriva advises that it has obtained a commitment from Mr. Albert Womble to provide it with approximately $165,000 in exchange for approximately 4.7 percent of the company's outstanding stock. We also understand that Mr. Womble may be willing to provide approximately $560,000 in additional investment as well. On July 11, Arriva advised the Department that Mr. Donald Luke has resigned as Chairman of the company and that Arriva intends to repurchase his current stock interest of approximately six percent. Will Mr. Womble be purchasing Mr. Luke's share of Arriva's stock? Provide a revised listing of the company's owners showing the impact of Mr. Womble's stock purchase on the ownership interests of the other shareholders.

By: Delores King, Air Carrier Fitness Division

Index

Chicago O’Hare and New York LaGuardia Slots | Frontier Airlines, Inc., ValuJet Airlines, Inc., AirTran Airways, Inc., Western Pacific Airlines, Inc. (Exemptions, High Density Rule)

OST-97-2230 | OST-97-2442 | OST-97-2557 | OST-95-277 | July 23, 1997

Motion for Leave to File and Reply of Delta Air Lines

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ACAA's attempt to establish alleged inconsistencies in the positions of Delta and other carriers by taking selective quotes out of context is misguided and irrelevant. ACAA fails to comprehend the fundamental factual, policy and legal differences between the captioned applications and the issues presented in the AA-BA alliance, which render any comparisons meaningless. ACAA's filing is largely an attack on the validity of the highdensity and buy-sell rules, and ignores the fact that 49 U.S.C. § 41714(c) allows the grant of an exemption for qualified new entrants only if the applicants demonstrate "exceptional circumstances." As previously noted by Delta and other participants in the captioned dockets, the high density rule has been examined on numerous occasions by the Department and in each instance it was determined that the rule should not be disturbed. While the Department has the authority to decide the mechanism by which slots are allocated, a major revision of the high density rule and slot allocation procedures would require formal rulemaking procedures and is clearly beyond the scope of the instant applications.

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

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Intra-Alaska Class Service Mail Rates (Mainline Rates)

Order 97-7-17 | OST-95-429 | Issued July 18, 1997 | Served July 24, 1997

Order Establishing Final Service Mail Rates

By: John Coleman

Index

Kiwi International Air Lines, Inc. and Kiwi International Holdings, Inc.

OST-97-2684 | Issued and Served July 23, 1997

Notice of Action Taken

On July 3, 1997, Kiwi International Air Lines, Inc. (Kiwi) and Kiwi International Holdings, Inc. (KIM) filed a joint application in Docket OST-97-2684 requesting that Kiwi's section 41102 interstate scheduled passenger certificate authority (see Order 929-67) be transferred to KIH, a newly created company. On July 15, the bankruptcy court will hold a hearing on whether to approve the sale of Kiwi's assets to KIH. In the event of such bankruptcy court approval, and in order for KIH to continue the operations of Kiwi without interruption after the assets are transferred to KIH, the companies have requested that the Department approve the certificate transfer on or before the bankruptcy courts' approval date of the asset sale.

After review of supporting information, we concluded that the proposed transfer would have no adverse impact on the surviving corporation's fitness and that it would otherwise be in the public interest. On July 23, we were advised of the bankruptcy court's approval of the sale and transfer of Kiwi's assets to KIH, and hence, on July 23, we orally granted the companies' request to become effective on that date.

By: Patrick Murphy

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Lorair, Ltd. (Certificates of Public Conveneince, Interstate and Foreign Charter)

Order 97-7-20 | OST-95-290 and OST-95-702 | Issued and Served July 23, 1997

Order Issuing Effective Certificates

Since no other matters affecting LorAir's fitness have come to our attention, the carner's certificate authority will become effective on July 23, 1997, the sixth day following our receipt of the last of the above-described documents. As a matter of administrative convenience, we are reissuing the carrier's certificates to reflect the effective date of the authority on those certificates, July 23, 1997.

Service List

By: John Coleman

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1997 U.S.-Chile Combination Service Proceeding

OST-97-2586 | June 23, 1997

Acknowledgement Receipt from United Air Lines

This will acknowledge receipt of your letter to Joel S. Burton dated June 20, 1997, relating to United Airlines' resubmission of O&D statistics in the referenced proceeding. This will also confirm our understanding reached in telephone conversations with yourself and Regis Milan late Friday afternoon regarding United's compliance with certain items of that letter.

Counsel: Ginsburg Feldman, Joel Burton, 202-637-9000, jburton@gfblaw.com

Index

Order Confirming Notices of Action Taken

Order 97-7-16 | Issued July 17, 1997 | Served July 23, 1997

Order