Issued March 3, 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 March 3, 1999 |
Last Updated 03/04/99 11:23 AM
Applications and Renewals:
ALM - Codeshare w/ Air Aruba | American - Renewal w/ China Eastern | Delta - Tokyo Waiver | Fine Air - Renewal US-Colombia
Fine and Arrow - Amend 1 | IATA | Northwest - Codeshare w/ KLM | Northwest and Continental - Petition of Continental Pilots
Answers and Replies:
Canadian - Answer of American Eagle/United | Continental - Answer of US Airways Gatwick
TWA and Royal Jordanian - Reply of Royal Jordanian
1999 U.S.-Italy Combination Service Case - Answer of the Chicago/GA and Atlanta Parties
Notices of Action Taken:
Aero Jet Express | Aviones Are | Valenciana
Notices and Orders:
CRS - Notice of Extension | Delta - Codeshare Violation | Northwest - Codeshare Violation | US-Russia Charter Opportunities
Aero Jet Express, S.A. de C.V.
| OST-98-3741 | Filed April 15, 1998 Issued March 3, 1999 |
Notice of Action Taken |
Mexico-US Charters |
Exemption from 49 USC section 41301 to permit the applicant 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
ALM 1997 Airline N.V. d/b/a Air ALM
| OST-99-5193 | March 3, 1999 | Application for a Statement of
Authorization |
Blocked-Space/Codeshare Service for Air Aruba: Aruba-Curacao-Atlanta |
| Exhibit A: Atlanta Summer 1999 Schedule | |||
| Service List |
Beginning April 4, 1999 through October 23, 1999, Air Aruba will code share on Air ALM's twice-weekly flights (Thursday and Sunday), operated with 139-seat MD-82 aircraft in a two-class configuration. Because the parties wish to begin codeshare service on April 4, 1999, Air ALM respectfully requests a waiver of the 45-day advance notice requirement contained in 14 C.F.R.§ 212.10(d)(2). Air ALM also seeks expeditious processing of this application to enable the parties to engage in advance sales and marketing.
Counsel: Kirkland Ellis, Bruce Rabinovitz, 202-879-5116, bruce_rabinovitz@kirkland.com
| OST-98-3622 | March 3, 1999 | Application for Renewal of
Exemption |
Los Angeles/San Francisco-Beijing/Shanghai Codesharing with China Eastern |
| Service List |
American Airlines, Inc., under 49 USC 40109, hereby applies for renewal of its exemption, granted by Notice of Action Taken in this docket on May 8, 1998, authorizing American to engage in foreign air transportation of persons, property, and mail between Los Angeles and San Francisco, California, on the one hand, and Beijing and Shanghai, China, on the other. This authority is used for a codesharing arrangement between American and China Eastern Airlines Corporation Limited, which was approved in the same Notice of Action Taken (and for an indefinite duration).
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
| OST-96-2038 | Filed February 4, 1999 Issued March 3, 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
Canadian Airlines International Ltd.
| OST-99-5115 | March 3, 1999 | Answer of America West
Airlines |
High Density Rule - Chicago O'Hare |  HTML |
America West Airlines, Inc. hereby answers in opposition to the application submitted on February 16, 1999, by Canadian Airlines International Ltd. for an exemption from the High Density Rules of Part 93 of the Federal Aviation Regulations for slots at Chicago O'Hare International Airport ("O'Hare") for service to Edmonton, Calgary and Vancouver. America West opposes the application to the extent that Canadian Airlines requests slots under the new entrant exemption, which is expressly limited by statute to U.S. air carriers and which was designed and implemented for air transportation to U.S. cities in need of such service.
Counsel: Baker Hostetler, Joanne Young
| OST-99-5115 | March 3, 1999 | Answer of American
Eagle |
High Density Rule - Chicago O'Hare | HTML |
American Eagle continues to urge the Department to award exemption slots for service between O'Hare and Greenville/Spartanburg, and to do so promptly. The Department should not award slots to Canadian -- or to any other foreign carrier -- for service between O'Hare and non-U.S. points, if such an award would reduce the pool of slots available for U.S. cities.
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
| OST-99-5115 | March 3, 1999 | Answer of United Air
Lines |
High Density Rule - Chicago O'Hare | HTML |
CAI does not now propose, nor has it offered to provide new low-fare competition in these markets. Indeed, it offers no particular low-fare competition on its existing Chicago service. CAl's September application at least had a passing reference to the possibility of lower fares, but its current application has dropped that pretenses CAI is not eligible for slots by exemption at O'Hare under either of the statutory provisions it seeks to invoke in this application In light of the ongoing efforts of the FAA to effectuate the provisions of the Bilateral by working to ensure that Canadian carriers are treated "similarly to domestic carriers," and that they are integrated into the prevailing system for domestic slot allocation, United respectfully suggests that the Department deny CAI's application
Counsel: United and Kirkland Ellis, Jeffrey Manley, 202-879-5161, jeffrey_manely@kirkland.com
| OST-99-5132 | February 26, 1999 |  Second Extension of
Computer Reservations Systems (CRS) Regulations |
CRS Regulations |
For the second time, the Department is proposing to revise its rules governing airline computer reservations systems (CRSs), 14 C.F.R. part 255, by changing the rules' expiration date from March 31, 1999, to March 31, 2000. If the Department does not change the expiration date in the rules (14 CFR part 255), the rules will terminate on March 31, 1999. The proposed extension of the current rules will cause the rules to remain in effect while the Department carries out its reexamination of the need for CRS regulations. The Department tentatively believes that the current rules should be maintained because they appear to be necessary for promoting airline competition and helping to ensure that consumers and their travel agents can obtain complete and accurate information on airline services. The rules were previously extended from December 31, 1997, to March 31, 1999.
| OST-99-5165 | March 3, 1999 | Answer of US Airways
in Support |
Waiver of Start-Up - Cleveland-London Gatwick |
US Airways, Inc. submits this answer in support of Continental Airlines' application for a waiver of the start-up condition attached to its certificate so it can institute Cleveland-London (Gatwick) service on June 30, 1999. US Airways fully understands and appreciates the difficulties in obtaining commercially viable access at Gatwick encountered by Continental. See, e.g., Docket OST-98-3615 (Complaint against U.K. Government).
Counsel: US Airways and O'Melveney Myers, Joel Burton, 202-383-5300
| Order 99-3-2 | Issued and Served March 3, 1999 | Consent Order |
Codesharing Violations |
| Attachment: Accounting Template |
Department investigators conducted a recent telephone survey involving 60 test calls to Delta relating to code-sharing flights. In a substantial amount of those test calls, Delta personnel failed to provide timely notice of the code-sharing flight in accordance with the Department's requirements. In several instances Delta personnel did not provide any notice to the caller of the code-sharing arrangement, even when specifically asked. During a number of other calls the identity of the code-share operator was provided only after the investigator specifically asked for the information and/or after the caller requested a specific reservation or had booked a reservation. Overall, there was an unacceptable number of test calls in which the caller was not properly told prior to his or her reservation request, as is required by our notice requirement, of the airline actually operating the code-share service. This is the second time Delta has violated the Department's code-sharing regulations. By Order 91-8-41, issued August 20, 1991. Delta has agreed to settle this matter with the Office of Aviation Enforcement and Proceedings and enter into this consent order to cease and desist. Delta has also agreed to pay $25,000 in compromise of the potential civil penalties otherwise assessable under 49 U.S.C. §46301. The Enforcement Office believes that the assessment of a civil penalty of $25,000 in this instance is warranted in light of the nature and extent of the code-sharing disclosure problem in question.
By: Rosalind Knapp
Delta Air Lines, Inc.
| OST-98-3419 | March 3, 1999 | Request for a Waiver |
Honlolulu-Tokyo Frequency Allocation Dormancy Waiver |
| Service List |
Delta has been unable, however, to secure Narita slots to institute new Honolulu-Tokyo service using these frequencies. The frequency allocation is subject to the condition that the frequencies will revert automatically to the Department for reallocation if they are not used for a period of 90 days. Thus, under the terms of the Order, Delta's frequency allocation would terminate if Delta does not commence Honolulu-Tokyo service by March 15, 1999, 90 days after December 15, 1998, which was the start-up date initially proposed by Delta.
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
| OST-97-2162 | March 3, 1999 | Application for Renewal of
Exemption Authority and Route Integration Authority |
US-Colombia All-Cargo |
| Service List |
As the Department is aware, Fine Air filed its application for corresponding scheduled all-cargo authority from the Colombian DGAC in November 1995, and has been prosecuting this application since that time. Fine Air has not, however, obtained its permit to operate scheduled all-cargo flights from Colombia, but remains hopeful that it will do so shortly. While Fine Air has not yet received its permit from Colombia, it has managed to obtain charter and wet lease authorities from Colombia, thereby permitting Fine Air to offer much-needed air transportation services to shippers, receivers and other carriers in the market. The exemption authority which Fine Air herein seeks to renew has aided and continues to aid Fine Air's efforts to seek such authorities.
Counsel: Pierre Murphy, 202-872-1679, pmurphy@lopmurphy.com
Fine Air Services, Inc. and Arrow Air, Inc.
| OST-99-5140 | March 3, 1999 | Amendment #1 to Joint Application for Approval of Route Transfer Authority and Motion to Shorten Answer Period | Approval of a Route Transfer Authority |
| Attachment: Letter from Federal Trade Commission of Early Termination of Premerger Notification |
Given that (i) the FTC has decided to terminate early its review process permitting the transaction to go forward; and (ii) the proposed common control of Arrow and Fine Corp does not raise any competitive issues in the domestic or international marketplace that warrant concern, or any issues that adversely affect the Department's international aviation policy objectives or U.S. trade position in international markets, there is no basis for concluding that transfer of the route authority herein is inconsistent with the public interest. Moreover, the common control of both airlines will generate synergies to the economic benefit of both and, therefore, should enhance the economic viability of both airlines, which in turn will provide competitive benefits to the public.
Counsel: Allan Markham, 202-337-2149 for Arrow / Counsel: Pierre Murphy, 202-872-1679, pmurphy@lopmurphy.com for Fine Air
| Order 99-3-1 | Issued and Served March 3, 1999 | Consent Order |
Codesharing Violations |
| Attachment: Accounting Template |
In a recent telephone survey conducted by Department investigators, Northwest personnel did not provide any notice to the caller of the code-sharing arrangement in a number of calls, even when specifically asked. In several instances, Northwest personnel provided the code-sharing arrangement only after the caller asked specifically for that information and/or the caller requested a specific reservation or had booked a reservation. In just over half the test calls, the caller was properly told prior to his or her reservation request that a code-sharing airline would be used during the proposed flight itinerary. Overall, however, there was a substantial number of calls in which the caller was not properly told prior to his or her reservation request, as is required by our notice requirement, of the airline actually operating the code-share service. Of serious concern to us is the fact that this is the third time the Enforcement Office has found that Northwest has violated the Department's code-sharing regulations. The Enforcement Office believes that the assessment of a civil penalty of $45,000 in this instance is warranted in light of the nature and extent of the codesharing disclosure problems in question. Northwest has also agreed to the assessment of a $45,000 civil penalty in compromise of the potential civil penalties otherwise assessable under 49 U.S.C. § 46301. Of this amount, $22,500 will be suspended for one year following the service of this order and shall be forgiven unless Northwest fails to comply with the payment provision of this order or commits other violations of 14 CFR 399.88 during that one-year period.
Northwest Airlines, Inc.
| OST-99-5191 | March 3, 1999 | Application for Consolidation
and Renewal of Statement of Authorization to Codeshare with KLM |
Amsterdam-15 KLM U.S. Gateways-191 U.S. Points |
| Attachment A: KLM Codeshare Services on Northwest Operated Flights | |||
| Service List |
Northwest Airlines, Inc. respectfully requests that the Department consolidate and renew Northwest's Statements of Authorization as described herein to permit Northwest to display KLM's designator code: (1) on Northwest flights between Amsterdam, on the one hand, and Boston, Detroit, Minneapolis/St. Paul, Newark, New York (JFK), Philadelphia, Seattle and Washington (Dulles), on the other hand; and (2) on Northwest flights between 15 KLM U.S. gateways, on the one hand, and a total of 191 U.S. points, on the other hand, as set forth in Attachment A. Northwest requests that its consolidated Statement of Authorization be made effective for an indefinite period.
Counsel: Northwest, Megan Rae Poldy
Northwest Airlines, Inc. and Continental Airlines, Inc.
| OST-99-4963 Undocketed |
March 3, 1999 | Independent Association
of Continental Pilots' Petition for Intervention |
Northwest and Continenental Codeshare |
| Service List |
All aircraft operated by Continental over the international routes claimed by American and Delta to have been transferred de facto to Northwest are flown by the petitioners' members. Necessarily, any curtailment in that flying would limit the pilots' promotional opportunities and potentially threaten their job security. The associational tie between the IACP and its members affords the Association standing to assert its members' interest in this proceeding. Intervention is necessary to assure that any order entered will :not lead to a curtailment of flying by Continental's pilots over the routes in dispute. The interests of the IACP's members in this matter cannot realistically be protected by means other than intervention.
Nor will their interests be adequately protected by the existing parties. Obviously, American and Delta have little incentive to prevent curtailment of the Continental pilots' flying. The interests of Northwest and Continental are colored, not just by traditional competitive considerations, but by the nature of the Alliance they have entered into, as well as by the transaction between them that is the subject of this proceeding. No one can say with antsy confidence at this juncture that either carrier's interests are aligned with those of the petitioner's members.
Counsel: Baptiste Wilder, Roland Wilder, 202-223-0723
Trans World Airlines, Inc. / Trans World Airlines, Inc. and Royal Jordanian Airlines
| OST-97-2374 OST-98-3382 Undocketed |
March 3, 1999 | Motion for Leave to File and
Reply of Royal Jordanian |
New York - Amman and Points Beyond (Codesharing) | HTML |
Royal Jordanian Airlines hereby submits this motion for leave to file and reply to the answer of Continental Airlines filed on February 19, 1999, to the above captioned applications of Trans World Airlines and Royal Jordanian for exemption authority and Statements of Authorization to provide code share services. Royal Jordanian urges the Department of Transportation to deny Continental's general request to terminate the TWA - Royal Jordanian code share Statements of Authorization and its specific request to withdraw third country code share authority to India.
Counsel: Baker & Hostetler, L.L.P., Joanne Young for Royal Jordanian, 202.861.1532
1999 U.S.-Italy Combination Service Case
| OST-98-4854 | March 3, 1999 | Joint Statement of
Ojections of City of Chicago and American Airlines |
1999 US-Italy Combination Service Proceeding |
The Department’s tentative determination that Delta’s Atlanta-Rome proposal provides "much greater public benefits" than American’s Chicago-Rome proposal flies in the face of (i) the clear and compelling evidence in this proceeding that American’s Chicago-Rome proposal will provide far greater new service and competitive benefits than those provided by either Delta or US Airways, and (ii) the Department’s previous determination in the 1996 U.S.-Italy Service Proceeding that Atlanta-Rome service by Delta would not, because of Delta’s existing and competing New York-Rome service, provide significant new service or competitive bene-fits. Likewise, the Department’s tentative selection of US Airways for backup authority in the Philadelphia-Milan market, because Philadelphia is a "developing transatlantic gateway," is flatly at odds with the overwhelming record evidence that it is Rome, not Milan, which requires additional service. It is beyond question that American’s Chicago-Rome proposal, to restore service in a well-established market, is superior to that of either Delta or US Airways. The De-partment should reconsider its tentative selection of Delta, and instead award the primary authority in this proceeding to American as soon as possible so that American can begin Chicago- Rome service this summer.
Counsel: Winthrop Stimson, Kenneth Quinn, quinnk@winstim.com for Chicago / American, Carl Nelson, 202-496-5647, carl_nleson@amrcorp.com
| OST-98-4854 | Dated March 2, 1999 Filed March 3, 1999 |
Answer of the Georgia
and Atlanta Parties |
1999 US-Italy Combination Service Proceeding |
By: Bill Alberger
| OST-99-5178 | March 2, 1999 | Re: Renewal of Statement of Authorization |
Vitoria, Spain - New York (JFK) All-Cargo Charters |
| Foreign Air Carrier Application for Statement of Authorization | |||
| Service List |
10 one way cargo charter flights following the routings listed in Attachment A using B747F equipment
Charterer: Chapman Freeborne Air Marketing, S.A.
Counsel: Zuckert Scoutt, David Heffernan, 202.298.8660
US-Russia Charter Opportunities
| Undocketed | February 24, 1999 | Notice |
US-Russia Charter Opportunities |
This notice deals with those portions of the Annexes that provide for new charter opportunities available for U.S. carriers between the United States and Russia. The Annex provides that for the 1999 charter year (January 22, 1999, through January 21, 2000), U.S. carriers may operate:
- A. 80 round-trip all-cargo charters on a North Atlantic routing and 80 round-trip all-cargo charter flights on a North Pacific routing.
- B. 150 round-trip passenger/combination charter flights on a North Atlantic routing and 150 round-trip passenger/combination charter flights on a North Pacific routing.
La Valenciana Taxi Aereo, S.A. de C.V.
| OST-96-1681 | Filed January 21, 1999 Issued March 3, 1999 |
Notice of Action Taken |
U.S. - Mexico 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
International Air Transport Association
| OST-99-5189 | March 2, 1999 | Application for Approval of Agreements | PTC12 SATL-EUR 0049 South Atlantic-Europe Passenger Resolutions |
By: David O'Connor
| Order 99-3-3 OST-99-4972 |
Issued March 3, 1999 Served March 8, 1999 |
Order |
US-Europe Alliance Countries Rate Structure |
The agreement introduces into the U.S.-Europe "Alliance" countries rate structure approved last June in Order 98-6-34 (June 29, 1998), small package rates for shipments between the U.S. and Belgium, Germany, Sweden and Switzerland. The weight of each such shipment must not exceed 32 kg. (approximately 70 lbs.), the sum of its dimensions must not exceed 90 inches, with a maximum dimension for any one side set at 48 inches, and its value must not exceed $968 for shipments from the U.S.2/ All charges for such shipments must be prepaid, and if the shipment fails to move on the flight designated by the shipper, the carrier will refund an amount not to exceed the difference between the premium small package rate and the otherwise applicable IATA general cargo rate.
By: Paul Gretch
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