OST Docket Filings for July 24, 1997

OST Docket Filings for July 24, 1997

Pleadings:

Petition for Rulemaking: Air Fares | United and Air Canada (3) | US-Ecuador All-Cargo (2) | US-Hong Kong/Northwest

Notices of Action Taken:

None

Notices and Orders:

Beckley, Bluefield/Princeton, WV | Delta Air Lines | US-Hong Kong/Northwest

American Airlines, Inc. and British Airways Plc / American Airlines, Inc. and The TACA Group Reciprocal Code-Share Service Proceeding

OST-97-2058 | OST-96-1700 | July 24, 1997

Answer of Trans World Airlines

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Continental has adequately outlined the monopoly power that will be created by both American and British Airways adding Iberia to their alliances. American and Iberia are the sole carriers between Miami and Madrid. American and Aerolineas Argentinas are the two major carriers between the U.S. and Argentina. American, which already has an alliance with the national carriers of Central America, would also combine with the only other carrier offering a full pattern of service between Miami and that area. Addition of an Iberia Alliance to AA/BA will give American monopoly control of its two major Miami - Europe routes -London and Madrid. Clearly, this important new development requires that the Department collect additional information before proceeding with either the AA/BA or AA/TACA alliances.

Counsel: TWA and Richard Fahy, 202-457-4764

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Arriva Air International, Inc. (Certificates of Public Convenience, Interstate and Foreign All-Cargo Charter)

OST-96-1334 and OST-97-2184 | July 24, 1997

Supplement No. 8 to Application

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Cover Letter

As you will note, the increased preoperating costs incurred and projected by Arriva Air have reached a level which produces a small ($40,589) working capital short-fall under the DOT's financial fitness test. Arriva Air is confident that it will be able to acquire additional capital to cover that deficit, and we will furnish that further information to you as soon as possible.

Arriva Air earnestly hopes that it will be possible for the Department to issue a Final Order granting Arriva Air's certificate applications on the basis of the present record, without awaiting confirmation of the completion of Arriva Air's remaining start-up financing arrangements. The absence of a Final Order is hindering the completion of those arrangements, as a result of the understandable concerns by prospective investors over the length of time and controversy which has attended Arriva Air's certification process.

Counsel: Shaw Pittman, Nathaniel Breed, 202-663-8078

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Beckley, Bluefield/Princeton, West Virginia (EAS)

Order 97-7-23 | OST-97-2761 (49239) | Issued July 24, 1997 | Served July 30, 1997

Order Revising Service and Subsidy Rate

By this order, the Department is allowing Colgan Air, Inc., d/lo/a Continental Express, to begin operating its essential air service from Beckley and Bluefield/Princeton, West Virginia, to Dulles International Airport rather than the communities' traditional hub of Charlotte, effective immediately. In addition, the Department is increasing the service levels and subsidy rate for Colgan's service at the two communities beginning October 1, 1997, or when the increased service pattern is implemented, whichever is later, through the remainder of the carrier's present rate term, which ends on July 31, 1998.

Appendix A | Appendix B | Appendix C | Appendix D

By: Charles Hunnicutt

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Crescent City, California (EAS)

OST-97-2649 | July 16, 1997

Letter from County of Del Norte Requesting Extension

By: Kathleen Burgess, County Counsel, 707-464-7208

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Delta Air Lines, Inc. (Violations of 49 USC 41712 and 14 CFR 399.84)

Order 97-7-24 | Served July 24, 1997

Consent Order

On January 7, 1997, Delta promulgated or caused to be promulgated a press release that was distributed through its Internet website and the PR Newswire service. The press release announced Delta's "Companions Fly Free" fare for several destinations. Among the listed fares was a 21-day advance purchase fare from Atlanta and Jacksonville for $29 for the first passenger and "free" for the second passenger. When the Department's investigator posing as a consumer called the carrier, the Delta agent informed the investigator that there was a $2.73 fuel surcharge for each passenger in addition to the listed fare.

By: Rosalind Knapp

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Florida West International Airways, Inc. (Renewal of Certificate and Exemption Authority / Frequency Allocation)

OST-97-2646 | OST-97-2648 | July 24, 1997

Reply of Florida West International Airways and Motion for Leave to File

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To be perfectly clear, FWIA would strongly oppose the imposition of any unusual condition on its renewed authority. FWIA has had to endure more than its share of financing and other problems because of the short-term restricted authority under which it has labored. FWIA has earned the right to be treated no differently than any other U.S. carrier.

Counsel: Squire Sanders, Marshall Sinick, 202-626-6651

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HeavyLift-VolgaDnepr Ltd. (Emergency Exemption)

OST-97-2756 | July 24, 1997

Amendment to Emergency Exemption

Amends its application dated July 18, 1997 so as to request authorization for operation of one one-way outsize cargo charter flight on or about August 5, 1997, in lieu of July 30, 1997, in interstate air transportation utilizing Volga Dnepr's AN124-100 aircraft for transportation of one outsize Echostar IV satellite from Philadelphia to Moffett Field, CA (or alternatively, if necessary, to Oakland International Airport, CA).

Counsel: Miller Hamilton, Lester Bridgeman, 334-432-1414

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LorAir, Ltd. (Certificate Authority)

OST-95-290 and OST-95-702 | July 23, 1997

Additional Information

Counsel: Alan Markham, 202-337-2149

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Petition for Rulemaking Regarding Air Fares – Consumers Union

OST-97-2622 | July 24, 1997

Comments of American Airlines

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American Airlines, Inc. urges the Department of Transportation to dismiss the petition of Consumers U.S., Inc. to open a rulemaking proceeding to establish a "Truth in Airfares" order. Consumers Union proposes a costly and Paternalistic rule that not only would be unique to the airline industry, but also would contravene Congress' mandate that the Department rely to the maximum extent possible on free market competition to promote the public interest in air transportation.

Counsel: American, Carl Nelson, 202-496-5647

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United Air Lines, Inc. and Air Canada (Antitrust Immunity)

OST-96-1434 | July 24, 1997

Objections of American Airlines

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American Airlines, Inc. hereby objects to show-cause Order 97-6-30, June 26, 1997, by which the Department tentatively granted approval of and antitrust immunity for an alliance agreement between United Air Lines, Inc. and Air Canada. The Department should not proceed to a final order in this docket without imposing evidentiary requirements on United and Air Canada that are equivalent to what the Department has imposed on American and British Airways in OST-97-2058.

Counsel: American, Carl Nelson, 202-496-5647

Objections of Delta Air Lines to Order to Show Cause

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The Department's tentative decision to grant antitrust immunity and provide United and Air Canada a competitive advantage over other U.S.-flag carriers until the bilateral phase-in restrictions on access to Toronto are eliminated would be a serious mistake and cannot be justified on any sound public policy basis.

Motion of Delta Air Lines for Confidential Treatment

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

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U.S.-Ecuador All-Cargo Frequencies / American International Airways, Inc. / Arrow Air, Inc. / Challenge Air Cargo, Inc. / Fine Airlines, Inc. / Florida West International Airlines, Inc. / Polar Air Cargo, Inc. / Millon Air, Inc.

OST-97-2711 | OST-97-2342, 97-2492, 97-2443, 97-2423, 97-2325, 97-2444 | 96-1913 | July 24, 1997

Objection Fine Airlines

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With the Department's decision to reallocate Millon's three frequencies, Fine Air had expected at last to overcome that disadvantage by being placed on an equal footing, at a minimum, with its incumbent competitor, Arrow. Although Fine Air understands the constraints that necessarily govern operations in a frequency-controlled market, it had expected that proven performance over a sustained period would qualify it for at least a modest expansion when the opportunity to allocate additional frequencies arose. The Department had the wherewithal in this proceeding to make that modest expansion possible while still adding a new entrant carrier to the market with the same number of frequencies that have enabled Fine Air to sustain a competitive presence from the time it too was a new entrant.

Counsel: Wilmer Cutler, Jeffrey Shane, 202-663-6000

Petition for Reconsideration and Objections of Millon Air

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Withdrawing Millon Air's allocation when the airline is poised to recommence U.S.-Ecuador service is simply unnecessary. U.S.-Ecuador shippers are being adequately served. Records of the Department of Civil Aviation of Ecuador indicate that during the six months period January 1-June 30, 1997, incumbent scheduled all-cargo operators Arrow, Challenge Air Cargo and Fine Airlines together operated a total of 351 charter or special flights approved by the Government of Ecuador in addition to regular scheduled flights performed pursuant to DOT allocations (approximately two per day). This additional lift is more than double the amount Millon Air was providing and more than compensates for the loss of service resulting from Millon Air's temporary stand down. The applications of all three incumbents for additional scheduled frequencies clearly indicate that they are willing and able to devote additional resources to serving the U.S.-Ecuador market. The disruption associated with insertion of a new entrant at this point simply is not warranted.

Attachment

Counsel: Suzette Matthews, 540-364-3470

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New U.S.-Hong Kong Combination Air Service Opportunities / Northwest Airlines, Inc. (New Gateway of Minneapolis-St. Paul)

Order 97-7-25 | OST-95-765 | OST-97-2693 | Issued and Served July 24, 1997

Order Authorizing Hong Kong Services

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By this order we select Minneapolis/St. Paul, Minnesota, as a new gateway for U.S.-Hong Kong services. To enable us to implement the new gateway selection, we will also withdraw the existing designation of Detroit as single-designation gateway. We will forward these recommendations to the Department of State for implementation.

By: Charles Hunnicutt

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US-Hong Kong Service Opportunities / Northwest Airlines, Inc. (New Gateway, Minneapolis-St. Paul)

OST-97-2693 | OST-95-765 | July 23, 1997

Letters in Support from City of South St. Paul, State of Minnesota, Minnesota World Trade Corporation, Bismarck Municipal Airport, Minnesota Trade & Economic Development

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