Issued February 10, 1999
Notice of Action TakenHome | OST Filings by Number | OST Orders and Notices | OST Filings by Carrier
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OST Docket Filings for February 10, 1999 |
Last Updated 02/11/99 11:22 AM
Letter from BTS to Delta Added in Mail Rates
Investigation
Applications and Renewals:
Air Aruba - Reissuance of Exemption | United v Russia - Motion of United to Dismiss
Answers and Replies:
Challenge - Answer of Dallas/Ft. Worth Intl Airport | American/Continental - Answer of Delta - US-Russia
Continental - Answer of American & Finnair / United - US-Russia
Transatlantic, Transpacific and Latin American Service Mail Rates Investigation | UPS - Form 41
Notices of Action Taken:
Aero Toluca | Aerolineas Marcos | Aeromundo Ejecutivo | American - Codeshare w/ Qantas
Notices and Orders:
Continental/Delta/Federal Express/Northwest - Order Issuing Certificates
Aero Toluca Internacional, S.A. de C.V.
| OST-96-1882 | Filed November 24, 1998 Issued February 10, 1999 |
Notice of Action Taken |
Mexico-US Charters |
Exemption from 49 USC section 41301 to permit the applicant to continue to conduct passenger charter operations between Mexico and the United States, and other passenger charter operations in accordance with 14 CFR Part 212, using small equipment
By: Paul Gretch
Aerolineas Marcos, S.A. de C.V.
| OST-96-1693 | Filed January 4, 1999 Issued February 10, 1999 |
Notice of Action Taken |
Mexico-US Charters |
Exemption from 49 USC section 41301 to permit the applicant to continue to conduct passenger charter operations between Mexico and the United States, and other passenger charter operations in accordance with 14 CFR Part 212, using small equipment
By: Paul Gretch
Aeromundo Ejecutivo, S.A. de C.V.
| OST-96-2010 | Filed January 19, 1999 Issued February 10, 1999 |
Notice of Action Taken |
Mexico-US Charters |
Exemption from 49 USC section 41301 to permit the applicant to continue to conduct passenger charter operations between Mexico and the United States, and other passenger charter operations in accordance with 14 CFR Part 212, using small equipment
By: Paul Gretch
| OST-96-1250 OST-96-1146 OST-95-110 |
February 10, 1999 | Application for Reissuance of an Exemption |
Aruba-US |  HTML |
| Service List |
Recently, the Government and Air Aruba entered into an agreement to sell a major portion of the airline to private investors. The parties interested in investing in Air Aruba are Aserca Airlines C.A., a Venezuelan corporation ("Aserca"), and two Aruban corporations beneficially owned by Venezuelan nationals. Collectively, these investors have agreed to purchase shares representing approximately 70% of Air Aruba's equity capital, subject to certain conditions precedent.
Although one of the goals of the Department's open skies initiative is to expand and develop U.S. aviation markets, small countries like Aruba have a very limited ability to take advantage of such agreements because of the small size of their national airlines. and their limited access to capital markets to raise the funds necessary to use the expanded service opportunities an open skies agreement makes possible. For that reason, many small countries are reluctant to sign open skies agreements with the United States for fear that their national airlines will be unable to benefit from the market liberalization such agreements entail. If the United States hopes to persuade more such countries to join with it in liberalizing world aviation markets, the U.S. must be flexible in permitting broader investment in foreign airlines where such investment is not inimical to broader U.S. international aviation policy objectives. The Government of Aruba took considerable risk in being the first Caribbean Basin nation to sign an open skies agreement with the United States. It would be unfortunate indeed, and clearly inconsistent with basic U.S. policy objectives, if the Department were effectively to deny the Government of Aruba the opportunity to recapitalize Air Aruba through the sale of a substantial portion of its holdings to the Investor Group, as described herein.
Counsel: Kirkland Ellis, Bruce Rabinovitz, 202-879-5116
| OST-99-5007 | Filed January 14, 1999 Issued February 10, 1999 |
Notice of Action Taken |
US-Fiji/New Zealand/Australia Codeshare w/ Qantas |
Scheduled foreign air transportation of persons, property", and mail between points in the United States, via points in Fiji and New Zealand, and Sydney, Melbourne, Brisbane, Cairns, and Perth, Australia, and beyond to Adelaide, Australia and to points in New Zealand, and to integrate this authority with its existing U.S.-Australia/New Zealand/Fiji certificates and exemptions. American intends to operate this service under a code-share arrangement with Qantas Airways.
By: Paul Gretch
American Airlines, Inc. / Continental Airlines, Inc.
| OST-98-4328 OST-99-5049 |
Febraury 10, 1999 | Consolidated Answer of Delta Air Lines |
Chicago-Moscow US-Russia Codesharing w/ Air France |
Delta currently operates third-country code-share service to Russia, and, as the Department is well aware, Delta has been seeking to expand its third-country codeshare offerings to Russia. Those expansion efforts have been blocked, until recently, by the Federal Aviation Authority of Russia's refusal to authorize additional third-country code-share operations. Delta's existing and planned future services that will be announced in accordance with the Department's scheduling notice for the new U.S.-Russia third-country code-share opportunities are entitled to contemporaneous consideration with other applications. Delta will demonstrate that its U.S.-Russia third-country code-share service proposal will maximize service and competitive benefits and should be granted in favor of other carrier applications. Accordingly, Delta opposes the applications of Continental and American to the extent that an award to either or both carriers would foreclose the full grant of Delta's application.
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
| OST-99-5046 | February 10, 1999 | Answer of the Dallas/Fort Worth Intl Airport |
DFW-Peru/Venezuela/Brazil Authority |
Dallas/Fort Worth welcomes Challenge's application and its decision to begin DFW hub operations to Latin America later in 1999. DFW considers itself an excellent MidAmerica gateway for air cargo services to Latin America, due to its strategic geographic location and the matrix of air cargo flights and truck routes that hub at DFW Airport. Commencement of Challenge's new DFW cargo services will make for more convenient routings for air cargo to Latin America from Texas and points west, and provide a needed alternative to the congested Miami gateway.. As Challenge points out, initially Challenge's routings from DFW to Peru, Venezuela and Brazil will be via authorized intermediate points. However Dallas/Fort Worth fully expects Challenge to be able to support DFW nonstop service to one or more of these countries in the near future. Therefore, Challenge should be awarded the authority requested to be able to offer nonstop service between DFW and Peru, Venezuela and Brazil.
Counsel: Bagileo Silverberg, Michael Goldman, 202.944.3305
| OST-99-5049 | February 10, 1999 | Joint Answer of American and Finnair |
Application for Exemption and Frequency Allocation Third-Country Codesharing w/Air France between U.S.-Russia | HTML |
| Attachment 1: American and American Eagle Provide Nonstop Service to 21 U.S. Cities at New York Kennedy |
On February 2, 1999, in light of the new U.S.-Russia bilateral agreement on third-country codesharing, American and Finnair sought immediate action on the deferred portion of their proposal, which they amended to included Moscow in addition to St. Petersburg. Since the U.S.-Russia bilateral agreement limits the number of third-country codesharing combinations, the Department is required to conduct a carrier selection proceeding to determine which ones should be authorized under the new agreement. American and Finnair urge the Department to institute such a proceeding promptly, and to reach its decision through expedited show-cause procedures. In that proceeding, American and Finnair will show why their proposed arrangement should be chosen in the public interest.
Counsels: Carl Nelson, Jr. for American, 202.496.5647, carl_nelson@amrcorp.com and Seeger Potter, John Richardson for Finnair, 202.496.1234
| OST-99-5049 | February 10, 1999 | Answer of United Air Lines |
US-Russia Codesharing | HTML |
| Exhibit: Northwest Airlines Systems Timetable |
Under the new U. S./Russia agreement on code sharing concluded last month, the U.S. will be limited to five third-country code-share arrangements involving services to Russia. Only three such arrangements may begin services immediately, with the remaining two to be operated as of January 22, 2000. In addition to United's code-share service with Lufthansa, which as noted) above is already fully authorized and was operated for so long as the Russian Federation permitted, there are two other third-country code-share arrangements already in place - Northwest/KLM via Amsterdam with 8.5 frequencies and Delta/Swissair via Zurich with 8.5 frequencies. Orders 96-10-1 and 97-7-33. In this regard, it should be noted that United was authorized to offer 14 weekly code-share frequencies between Frankfurt and Moscow under the previous U.S./Russia code share agreement. Northwest is currently operating 10 weekly Amsterdam-Moscow code-share frequencies and Delta, 14 weekly Zurich-Moscow code-share frequencies. All of these Moscow services exceed the maximum of seven weekly code-share frequencies per city pair allowed under the new U.S./Russia agreement. The Department must address the issue of whether such Moscow city-pair frequencies in excess of the bilateral limit are to be allowed to continue notwithstanding the terms of the new agreement. There is no provision in the new U. S./Russia agreement for "grandfathering" historic operations at levels in excess of the agreed city-pair limits. If the Russian Federation, however, is to allow Northwest/KLM and Delta/Swissair to exceed the weekly city-pair limit based on their historic operations, then United/Lufthansa should be entitled to the same flexibility based on their own historic operations of 14 weekly code-share frequencies between Frankfurt and Moscow.
Counsel: United and Kirkland Ellis, Jeffrey Manley, 202-879-5161
| Order 99-2-8 OST-97-2516 (45131) OST-95-545 (48307) OST-97-3207 OST-97-3089 OST-97-3177 |
Issued January 4, 1999 Served February 11, 1999 |
 Order Issuing Certificates |
Certificates of Public Convenience and Necessity |
By: Charles Hunnicutt
Transatlantic, Transpacific and Latin American Service Mail Rates Investigation
| OST-96-1629 | January 25, 1999 Docketed February 10, 1999 |
Re: Letter from BTS |
Transatlantic, Transpacific and Latin American Service Mail Rates Investigation |
By: BTS, Timothy Carmody
United Air Lines, Inc. against The Government of Russia
| OST-97-2888 | February 10, 1999 | Motion of United Air Lines to Dismiss
Complaint |
United against Russia |
hereby requests the Department to dismiss its Complaint dated September 9, 1997, in the above-captioned docket and to issue an order terminating this proceeding. In view of the recent agreement between the governments of the Russia Federation and the German Federal Republic amending their agreement of July 14, 1993, relating to codeshare services involving third-country carriers, United expects the Russian Federation to restore its authority to codeshare on the flights of Lufthansa German Airlines between Frankfurt and Moscow. It was the Russian Federation's refusal to renew United's authority to code share on those flights that gave rise to United's instant complaint. The Russian Federation relied upon the terms of the July 14, 1993 Germany/Russia agreement as the basis for its action. The recent modification of those terms eliminates the basis for the Russian Federation's objection to United's code share. In these circumstances, United's IATFCPA Complaint in this docket is now moot.
Counsel: United and Kirkland Ellis, Jeffrey Manley, 202-879-5161
| OST-95-125 | February 10, 1999 | Motion for Confidential Treatment |
Form 41; Schedule B-7 |
Counsel: UPS and Kelley Drye, David Vaughan, 202-955-9864
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