OST Filings for February 5, 1999

OST Docket Filings for February 5, 1999

Last Updated 02/08/99 01:02 PM

New Air Corp Application and Exhibits Available in FastPDF
America West Answers in HTML Format
GE Aircraft Engine Answer in Northwest v EU Added

Applications and Renewals:

American - US-Mexico Amendment | American - US-Russia Service List | Braathens - Supplemental Information | HeavyLift

LOT - O'Hare Slots | New Air Corp - JFK Slots

Northwest - Thailand Delay Startup | Northwest and KLM - US-India Renewal

Answers and Replies:

American and Aeropostal | America West - O'Hare Slots | Delta and China Southern - Answer of Port of Portland

Northwest v. European Union - Hushkit Answers

Notices of Action Taken:

Japan Air Charter | Transpais Aereo

Notices and Orders:

Brazil Cargo Charter Authorizations

America West Airlines, Inc.

OST-99-5030	February 5, 1999	Answer of American Airlines	Reno, Nevada-Las Vegas, Nevada-Chicago O'Hare Intl Airport	HTML
		Exhibit 1: Letter from Nevada Congressmen to Secy Slater
		Exhibit 2: Slot Management System Listing of AWE O'Hare Slots
		Exhibit 3: United Air Lines Press Release Statement on America West

We also note that on January 19, 1999, the Department sent a letter to Reno Air advising that two of its seven O'Hare exemption slots were being rescinded as dormant. The Department should consider allocating the two dormant slots for service from O'Hare to a city such as Greenville/Spartanburg, South Carolina, for which American Eagle has an application pending in OST-98-4647. The Department should not use those slots for a market such as Chicago-Las Vegas, which already enjoys an abundance of nonstop service operated by four carriers.

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

OST-99-5030

February 5, 1999

Answer of Atlantic Coast Airlines

Reno, Nevada-Las Vegas, Nevada-Chicago O'Hare Intl Airport

HTML

This ACA filing would not have been necessary had America West clearly stated in its application the precise relief it is seeking. But America West's request lacks sufficient precision such that ADA had no alternative but to file in opposition to its unclear application. If America West were to clarify its application and renounce any interest in the two O'Hare slots recently withdrawn by the Department from Reno Airlines and, at the same time, clarify that it is seeking only the five O'Hare slots previously awarded by the Department to Reno Airlines, then ACA would withdraw its opposition.

Counsel: Bagileo Silverberg, Robert Silverberg, 202.944.3300

OST-99-5030

February 5, 1999

Answer of Reno Air in Opposition

Reno, Nevada-Las Vegas, Nevada-Chicago O'Hare Intl Airport

HTML

Rather than serve Reno nonstop, America West proposes to add to existing nonstop service between Chicago O'Hare and Las Vegas (where there already are 11 daily round trips, including 2 by America West) with tag-on one stop service to Reno. As a result, Reno would lose all nonstop service in the Chicago market and the important economic benefits that have accrued in the past four years from that service. Such a result violates the express findings of the Department concerning the need of the Reno market for nonstop Chicago service and the specific restriction placed on the grant of slots limiting their use to the Reno market. The potential public benefits offered by the incremental increase in O'Hare-Las Vegas service at the expense of Reno do not support the withdrawal and reallocation of slots to another market.

Counsel: Stephen Lachter for Reno Air, 202.862.4321

OST-99-5030	February 5, 1999	Answer of Reno/Tahoe Parties Opposition	Reno, Nevada-Las Vegas, Nevada-Chicago O'Hare Intl Airport	HTML
		Exhbit 1: Current Nonstop Service for Chicago O'Hare-Las Vegas and Chicago O'Hare-Reno
		Exhbit 2: Current Nonstop Seats Available for Chicago O'Hare-Las Vegas and Chicago O'Hare-Reno
		Exhbit 3: Current One-Stop Seats Available for Chicago O'Hare-Las Vegas and Chicago O'Hare-Reno

By acquiring Reno Air, American has not violated the condition against the sale, trade or transfer of the exemption slots. It is clear from a reading of Order 94-9-30 that the Department intended only to prohibit Reno Air from engaging in traditional slot transactions whereby an air carrier acquires slots from the Department or the FAA and then sells or trades them for valuable consideration. In this case, the Department was concerned with the maintenance of service in the Chicago O'Hare-Reno market and allocated the slots for that specific purpose. Restrictions on the sale, trade or transfer, like the restriction requiring use in the Reno market only, were designed to eliminate Trafficking" in slots, not acquisitions or mergers. After the acquisition of Reno Air is completed, American should be able to retain the slots, subject to the requirement that they only be used to serve the Reno-Chicago O'Hare market.

Counsel: Stephen Lachter for Reno/Tahoe Parties, 202.862.4321

OST-99-5030

February 5, 1999

Answer of United Air Lines

Reno, Nevada-Las Vegas, Nevada-Chicago O'Hare Intl Airport

HTML

AWA offers the same analysis as that previously submitted by United relating to the impact on Reno Air's slot exemption of that carrier's acquisition by American Airlines, Inc. AWA and United each concur that the exemption slots can no longer be held by Reno Air now that it has been acquired by American. AWA's proposed service does not qualify because it is routed via the already well-served and highly competitive Chicago-Las Vegas city pair. In the event no qualifying new entrant carrier proposes to use these five slots to operate the Chicago-Reno services for which they were originally awarded, they should be returned to DOT for reallocation to another qualifying Chicago O'Hare city pair. Chicago-Las Vegas does not qualify.

Counsel: United and Kirkland Ellis, Jeffrey Manley

Index

American Airlines, Inc.

OST-98-4522

February 5, 1999

Re: Service List

Motion for Immediate Action on Deferred Portion; US-St. Petersburg via Helsinki

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

Index

American Airlines, Inc.

OST-97-2477

February 5, 1999

Motion of American Airlines to Amend US-Mexico Authority

US-Mexico; Codeshare with Aero California

American Airlines, Inc. hereby moves to amend its U.S.-Mexico exemption authority, renewed by Notice of Action Taken, June 24, 1998, so as (1) to grant blanket underlying authority to serve points in Mexico behind and beyond the Mexican gateway points of American and/or Aero California, S.A. de C.V. for purposes of blind-sector codesharing services operated by the two carriers, and (2) to grant authority on the gateway-to-gateway segment Los Angeles-Mazatlan, which American will serve on a codeshare basis with Aero California.

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

Index

American Airlines, Inc. and Aeropostal Alas de Venezuela, C.A.

OST-98-4917
Undocketed

February 5, 1999

Surreply of Aerovias Venezolana and Motion for Leave to File

Aeropostal's consolidated reply contains serious misstatements of material fact and law that AVENSA is compelled to correct. AVENSA therefore requests leave to file this brief surreply. Grant of AVENSA's motion and acceptance of its surreply will provide the Department with a more complete and accurate record on which to decide Aeropostal's request for codesharing authority.

Counsel: Squire Sanders, Robert Papkin, 202-626-6601

February 5, 1999

Intra-European Codeshare Application for Exemption and Statement of Authorization

I am writing to confirm to the Department of Transportation that copies of the application of Braathens ASA pending in Docket OST-99-5053, as well as copies of the redacted cooperative marketing agreement between Northwest Airlines, Inc. and Braathens, have been served via first class mail, postage prepaid, on each of the persons identified in the attached list, in addition to those persons identified to the Department previously.

OST-99-5053

February 5, 1999

Re: Agreements Relating to Liability Limitations of the Warsaw Convention, General Conditions of Carriage

Intra-European Codeshare Application for Exemption and Statement of Authorization

Counsel: Squire Sander, Charles Donley II, 202.626.6600

Index

Brazil Cargo Charter Authorizations 1998/1999

Order 98-4-19
OST-98-3746

February 5, 1999

Notice

US-Brazil Cargo Charter Authorizations

By Order 98-9-14, the Department issued its final order for distribution of the 750 available U. S.-Brazil all-cargo charters for the 1998/1999 charter year. Specifically, we allocated the 750 all-cargo charter flights as follows: Florida West International Airways, Inc. - 154; Southern Air Transport, Inc. - 146; Atlas Air, Inc. - 80; Arrow Air, Inc. - 28; Air Transport International L.L.C. - 26; Tower Air, Inc. - 24; and 292 charters retained in a charter pool for distribution on a first-come, first-served basis.

The advance allotments are subject to the condition that where fewer than 40 percent of a carrier's allocated charters have been used or been committed for use by firm contracts during the six-month period ending December 31, l 99X, the remaining charter allotments exceeding the number equal to the number of those already operated or committed in the preceding six months would be forfeited and placed in the charter pool. After reviewing the monthly reports on their flight operations, we have determined that Southern Air Transport and Air Transport International have not used 40 percent of their allotments; therefore a total of 137 charters will be returned to the charter pool at this time. (Southern Air Transport forfeits 131 and Air Transport International forfeits 6.) (See attached Appendix.) Tower and Air Transport International informed the Department earlier in the charter year that they were returning 24 and 20 charters, respectively. As of January :31, 1999, 302 flights are available in the charter pool. Flights issued from the charter pool are subject to the conditions and procedures established for such flights in ordering paragraph 5(a) through (e) of Order 98-614.

By: Paul Gretch

Index

Delta Air Lines, Inc. and China Southern Airlines Company, Limited

OST-99-5031

February 5, 1999

Answer of the Port of Portland in support of Joint Application

US-China Codesharing

As Delta and China Southern indicated in their joint application, the proposed services are consistent with the provisions of the bilateral air services agreement between the United States and the Peoples Republic of China ("China"), and will enhance service options for travelers and advance U.S. international aviation policy objectives. We urge prompt approval of the requested exemption and the statement of authorization, since the Joint Applicants propose to implement this arrangement on or about March 1, 1999.

Counsel: Bill Alberger, Alexandria, VA

Index

HeavyLift-VolgaDnepr, Ltd.

OST-99-5081	February 4, 1999	Application for an Emergency Exemption	Oakland, California - Detroit, Michigan
		Service List

This application is filed because the consignee, Ford Motor Company, urgently requires the emergency air delivery from Oakland, California to Detroit, Michigan of an oversized boiler, dimensions 21 x 8 x 13.1 feet. This shipment must be made as quickly as possible so as to permit Ford to reactivate its River Rouge automobile assembly plant outside Detroit, Michigan, which suffered a disastrous boiler explosion earlier this week that destroyed the preexisting boiler, and terminated all operations at the plant because of the extremely cold conditions inside the plant. A replacement is urgently required to restore the River Rouge plant to operation. Ford was unable to locate a boiler until earlier today when one was located near Oakland, California. Ford has requested HeavyLift to seek immediate approval for an emergency flight of the oversized boiler from Oakland to Detroit.

By: Miller Hamilton, Lester Bridgeman, 334.432.1414

Index

Japan Air Charter

OST-99-5076

Filed February 4, 1999
Issued February 5, 1999

Notice of Action Taken

Japan-US Charters

Exemption from 49 U.S.C. � 41301 to engage in charter foreign air transportation of persons, property and mail between Japan and the United States, and other charters Subject to the Department's rules.

By: Paul Gretch

Index

New Air Corporation

OST-99-5085	February 5, 1999	Application for an Exemption - Includes Exhibits A, C, D and Appendix Scanned Version	New York (JFK) - Major American Cities on the East Coast
		Exhibit B1: 737-700 Noise Contours at JFK
		Exhibit B2: 737-700 and 727-200 w/ Hushkit Noise Contours at JFK
		Exhibit B3: 737-700 and 747-400 Noise Contours at JFK
		Exhibit: Potential New Markets: Fare Comparison (Microsoft 97 Excel Format - Right Click to Download if Not Using IE 4.0)

New Air is a unique start-up carrier, unlike any other airline in U.S. aviation history. It intends to fill the low fare, nonstop jet service void that is prevalent between the entire New York market, especially JFK, and so many cities across the United States. New Air has several characteristics that make it unique as a new entrant and portend the likelihood of success where so many other new entrant carriers have failed. New Air will base its operations in the center of the world's largest air travel market, New York City. In New York City, New Air will create its base at a high density rule airport, something no other low fare, domestic new entrant carrier has ever done.

Counsel: Dow Lohnes, Jonathan Hill, 202.776.2725

Index

Northwest Airlines, Inc.

OST-97-2209	February 5, 1999	Application for Renewal of an Exemption	Thailand Delay Startup
		Service List

Northwest continues to operate four of its five U.S.-Thailand all-cargo frequencies. As a result of the continuing troubled state of the Thailand economy, however, Northwest has experienced insufficient traffic demand to support operation of its authorized fifth U.S.-Thailand all-cargo frequency, and anticipates a continuation of that circumstance for the near-term future. Northwest intends to operate its fifth weekly frequency as soon as traffic conditions warrant.

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

Index

Northwest Airlines, Inc. and KLM Royal Dutch Airlines

OST-96-1967 OST-96-1273 Undocketed	Filed December 9, 1998 Revised February 5, 1999 Reflects Additional Relevant Docket Number OST-96-1273	Joint Application for Renewal of Authority to Codeshare	US-India
		Service List

Jointly apply for renewal of their authority to offer third-country code-share service between the U.S. and India. Specifically, Northwest and KLM herein seek renewal of: (1) Northwest's designation to code-share with KLM in the U.S.-India market; (2) Northwest's exemption to provide scheduled foreign air transportation of persons, property and mail in the U.S.-India market; and (3) KLM's statement of authorization to display Northwest's designator code on KLM's flights between Amsterdam and India.

Counsel: Northwest, Megan Rae Poldy, 202-842-3193 / KLM, Paul Mifsud, 202-861-5867

OST-99-5011	February 5, 1999	Answer of The Air Transport Association of America	Limit Use of Hushkitted Aircraft in Europe
		Attachment A:

OST-99-5011	February 5, 1999	Answer of The Cargo Airline Association	Use of Hushkitted Aircraft in Europe
		Appendix A: CAA Membership List
		Appedix B: Letter from David Traynham, Asst. Administrator for Policy, Planning, and Intl Aviation	Signed September 14, 1998