OST Filings for February 2, 1999

Under the American/Finnair agreement, as amended, the "AA" code will be displayed on one daily Finnair flight between Helsinki and St. Petersburg, and on one daily Finnair flight between Helsinki and Moscow. These flights will connect with Finnair's flights between New York (JFK) and Helsinki, which will also display the "AA" code. Under the U.S.-Russia Civil Air Transport Agreement, as amended on January 22, 1999, each codeshare flight requires half a frequency (Paragraph 2, Section 2, Annex V). Accordingly, the seven frequencies that American now holds for Chicago-Moscow service (and is seeking to amend by motion in OST-98-4328) are sufficient for the 14 weekly codeshare frequencies that American and Finnair propose to operate to St. Petersburg and Moscow.

Granting exemption authority to American to serve St. Petersburg, as requested herein, will enable the Department to promote codesharing between the United States and Russia under the new U.S.-Russia bilateral aviation agreement. American will be able to compete for the first time with U.S. and Russian carrier services and with U.S.-Russia codesharing arrangements involving other carriers. By authorizing American to codeshare with Finnair between the U.S. and Russia, the Department will maximize the services available to the public, and make available a wide range of service options pursuant to the expanded bilateral regime. Because American and Finnair will price their services independently, American will bring additional competition to U.S.-Russia routes now served by Finnair and other airlines. Because American intends to commence the proposed codesharing services as promptly as possible, we ask that the Department grant the required authority on an expedited basis to enable American to engage in necessary advance sales and marketing activities.

OST-98-4328

February 2, 1999

Motion of American Airlines to Amend Exemption and Frequency Allocation

Chicago-Moscow

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American Airlines, Inc. hereby moves to amend its exemption and allocation of seven weekly U.S.-Russia combination frequencies for Chicago-Moscow service, granted by Notice of Action Taken in this docket on September 18, 1998, so as to enable American to serve Moscow from U.S. points, and to use the frequencies for third-country codesharing to Moscow and St. Petersburg via Helsinki, Finland, under an arrangement with Finnair Oy.

Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com

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Braathens ASA

OST-99-5053	February 2, 1999	Re: Application for Exemption and Statement of Authorization	Codesharing w/Northwest
		Cooperative Marketing Agreement	Dated January 26, 1999
		Service List
	Exhibits Added 2/3	Exhibit A: Codeshare Markets
		Exhibit B: Northwest/Braathens Frequent Flyer Agreement	Dated November 11, 1997 (Redacted)
		Exhibit C: Schedule File Information
		Exhibit D: Northwest/Braathens Special Prorate Agreement
		Exhbit E: Irregular Operations Rule 80 B
		Exhbit F: General Sales Representation Agreements
		Exhibit G: CRS and DCS Objectives and Seamless Service
		Exhbit H: Staff Contacts by Area of Responsibility	(Redacted)

Enclosed for filing please find six copies of the cooperative marketing agreement between Northwest Airlines, Inc. and Braathens ASA. The agreement is being submitted in further support of Braathens' application for an exemption and statement of authorization to engage in certain codeshare operations. The agreement has been redacted to remove certain limited commercial information deemed not relevant by the Department of Transportation on prior occasions.

Counsel: Squire Sanders, Charles Donley II, 202.626.6600

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Daystar Airways, Ltd.

OST-99-5062	February 2, 1999	Application for a Certificate of Public Convenience and Necessity	Certificate of Public Convenience and Necessity
		Service List
		Affidavit of Allen Haddadi
	Exhibits Added 2/4	Exhibit A: Index of Regulatory Requirements
		Exhibit B: Affidavit of Citizenship
		Exhibit C: Biographies of Key Personnel, including stock ownership
		Exhibit D: Historical Financial Statements
		Exhibit E: Description of Current Fleet
		Exhibit F: Affidavit of Aircraft Compliance
		Exhibit G: Authorities Currently Held
		Exhibit H: Map of Area to Be Served
		Exhibit I: Illustrative Service Proposal and Fuel Use Estimate
		Exhibit J: Forecast Financial Results
		Exhibit K: Corporate Certification
		Exhibit L: Agreement 18900
		Exhibit M: Article from *Airways* magazine, August, 1997 issue

Daystar was formed with the intent of providing scheduled air service between the islands of Nevis and St. Kitts, which together form the Federation of St. Christopher and Nevis. The island of St. Kitts receives scheduled air service from several carriers at the Basseterre airport, which has an 8,000' runway. The primary service at St. Kitts is American Eagle, which provides service to the U.S. points of San Juan, PR, and St. Thomas, USVI with ATR-42 and ATR-72 aircraft. Until recently, the Newcastle Airport, which serves Nevis, had a runway of only 2,000. This precluded service by larger aircraft, and necessitated service by aircraft such as the Islander. In 1994, Daystar requested information about applying for a certificate of public convenience and necessity from the U.S. Department of Transportation. Daystar is a U.S. carrier, and holds an Air Carrier Operating Certificate from the F.A.A.. The goal of gaining D.O.T. certification was to enable interline ticketing and baggage agreements with scheduled carriers serving St. Kitts, and American Airlines in particular. The response from the Office of Aviation Analysis in 1994 was that operations strictly between two points in a foreign country did not constitute "air transportation" within the meaning of the governing statute and regulations. Unless "air transportation" as so defined was involved, a certificate would not be issued.

In fall, 1998, a second letter was received from the Office of Aviation Analysis. This letter stated than Daystar was a U.S. air carrier, and was engaged in scheduled air service. The letter went on the say that approval by the U.S.D.O.T. is required in order to engage in scheduled service. According to the Director of Office of Aviation Analysis, the second letter was sent at the request of Assistant General Counsel Sam Podberesky. Mr. Podberesky said that his request was based on an opinion by the international division that Daystar was holding itself out for business in the United States by virtue of its Internet web site, and that it was assumed that more than a de minimus amount of Daystar's traffic was U.S. in origin or destination.

Daystar proposes to provide air service as described herein with aircraft currently in its fleet, including Britten-Norman BN-2 "Islander" aircraft

By: Allen Haddadi, President, Daystar, 869.469.9065

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Inland Aviation Services, Inc.

OST-98-3857	February 1, 1999	Application Supplement	Certificate of Public Convenience and Necessity
		Exhibit A: Balance Sheet as of December 31, 1998
		Exhibit B: Balance at 1st Natl Bank of Anchorage
		Exhibit C: Flight Resume of Dean Nelsen, Chief Pilot

Inland Aviation Services, Inc. submits this supplement to its application for a certificate of public convenience and necessity authorizing interstate scheduled air transportation pursuant to section 41 102 of Title 49 of the United States Code.

By: Eric Feige, Director of Operations, Inland, 907.675.4624

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Mesa Airlines, Inc., d/b/a America West Express

Order 99-2-16
OST-98-4706

February 2, 1999

Order Soliciting Proposals

Essential Air Service at
Gallup, New Mexico

Order 99-2-16, soliciting proposals from air carriers interested in providing essential air service at Gallup, New Mexico. Also, requires Mesa Airlines, Inc., d/b/a America West Express (Mesa) to continue serving Gallup for a 30-day period, through March 5, 1999, or until replacement service is secured, whichever occurs first.

By: Charles Hunnicutt

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Policy Statement Regarding Unfair Exclusionary Practices

OST-98-3713

January 29, 1999
Docketed February 2, 1999

The Reason Foundation - Policy Study on Airline Policy Issues

"Airline Deregulation - The Unfinished Revolution"

Ufair Exclusionary Practices

By: Reason Foundation, Robert Poole, President, Los Angeles, CA

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Sun Jet International, Inc.

Order 99-2-17
OST-98-3957

Issued and Served February 2, 1999

Order to Show Cause

Resume Interstate Charter Air Transportation Operations

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Sun Jet anticipates that its initial first-year operations will be very limited, involving the operation of a single 115-seat DC-9-32 aircraft in passenger charter services for public charter operators or sub-service flights for other direct air carriers needing lift. Sun Jet states that it expects that all of its operations will be conducted on an ACMI (aircraft, crew, maintenance. and insurance) basis.

By: Charles Hunnicutt

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1999 U.S.-Italy Combination Service Case

OST-98-4854

February 2, 1999

Re: Letters in Support of Delta Air Lines' Service Proposal

1999 US-Italy Combination Service Case

Enclosed for filing in the captioned proceeding are letters in support of the selection of Delta Air Lines, Inc. from Sen. Trent Lott; Sen. John Breaux; Senators Bob Graham and Connie Mack; James H. Hodges, Governor of South Carolina; Glenda E. Hood, Mayor of Orlando, FL; Jim Marshall, Mayor of Macon, GA; and John C. Gunny M.D., Honorary Consul of Italy for the States of Georgia and South Carolina.

Counsel: Shaw Pittman, Robert Cohn, 202-663-8000

Editor's Note: There are numerous other Letters in Support for all the other carriers - please refer to the DOT's DMS Web Site for letters not contained here.

http://dms.dot.gov/search/

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International Air Transport Association

Order 99-2-18 OST-98-4744 R-1 through R-9	Issued February 2, 1999 Served February 4, 1999	Order	Ticketing Procedures for Western Africa
		Appendix

The agreement consists of resolutions and recommended practices (R.P.'s) affecting passenger services. Most of the changes further refine existing ticket formats and ticketing procedures to facilitate the introduction of the euro align absorption of certain passenger expenses for travel wholly within Western Africa with actions already taken in Tariff Coordination Conference; and assigns additional form codes for automated miscellaneous charges orders (MCO's). These proposals involve non-substantive changes, essentially of a technical, editorial or administrative nature, to existing approved resolutions and recommended practices, and appear to be in conformity with our substantive policies and concerns. As such, they raise no public interest issues, and will be approved.

By: Charles Hunnicutt

Agreements Adopted by the International Air Transport Association

OST-98-4893	February 2, 1999	Technical Correction	TC3 Within South East Asia Fares Tables
OST-98-4067	February 2, 1999	Technical Correction	TC2 Within Middle East Specified Fares Tables
OST-98-4870 OST-98-4229	February 2, 1999	Supplemental Documentation	CRS - Carrier Selection
OST-98-4827	February 2, 1999	Supplemental Documentation	HIP Check

Carrier Selection is a system used by Computer Reservations Systems (CRSs) to select the carrier whose fares will be used to price any given fare component. It was introduced when the US' authorities determined that the legal tariffs filed with them for approval had to be in the carrier's name and not filed as 'IATA' fares. Consequently all fares to/from the USA had a 'carrier' designator attached to them. As a result of the US position it was necessary to determine how to price an itinerary when different carriers were involved and both had fares filed for the fare component. For example a routing NYC -TW- LON -BA- ATH. Both TW and BA have fares filed NYC-ATH and the question was which carrier should be selected to determine the fare to be charged. It was agreed that the carrier to be used for each fare component would be the 'overwater' carrier to/from USA while in TC1 it would be the fare of the carrier operating the sector to/from USA.

Counsel: IATA, David O'Connor, 202-624-2977

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