Joint Application for Blanket
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OST Docket Filings for March 29, 1999 |
Last Updated 03/30/99 03:11 PM
Applications and Renewals:
Air New Zealand and Lufthansa | IATA | Delta - Baku/Tashkent Codeshare w/ Austrian | Philippine Airlines - Manila-Guam Renewal
US-Russia Opportunities - Alaska/American/Continental/Delta/FedEx/Kitty Hawk
Answers and Replies:
American & China Eastern - Reply of American | Chicago-London - Objections of American
Fine Air - Reply of Fine to Polar US-Colombia / Reply of Southern | LorAir - Letter Granting Additional Time
Love Field - Ex Parte of Edward P. Faberman | NPRM: Fees and Special Charges | Ozark - Answer of City of Columbia, MO
Terre Haute - Great Lakes | Virgin - Answer of United, City of Chicago (O'Hare Slots)
Notices of Action Taken:
None
Notices and Orders:
Air New Zealand and Lufthansa German Airlines
| OST-99-5460 | March 29, 1999 | Joint Application for Blanket
Statements of Authorization |
Open Skies Codeshare Operations - US-New Zealand-Germany |
| Service List |
Grant of this application would enable ANZ and Lufthansa to conduct code-share services consistent with the U.S.-New Zealand and U.S.-Germany Open Skies Agreements. Approval of this application will also enable ANZ and Lufthansa to respond quickly to service demands and changes in the marketplace, as it will provide the carriers with the flexibility to adjust their code-share services without the need to obtain Department approval to amend their code-share authority every time they seek to add another third-country beyond point.
Counsel: Fulbright Jaworski, Susan Gotbetter, 212-318-3121 / Wilmer Cutler, James Campbell, 202-663-6000
Allocation of Chicago-London Combination Service Frequencies
| OST-99-5061 | March 29, 1999 | Objections of American
Airlines to Order 99-3-20 |
Chicago-London Combination Service Frequencies |
In Order 99-3-20, the Department called this "a positive aspect of American's proposal," and acknowledged that American "would offer travelers a choice of London airport services and certain beyond-London services not available at Heathrow" (p. 3). Nonetheless, the Department tentatively found that "we are not persuaded that the competitive benefits of American's once-daily Gatwick service, which it proposes to operate for less than half the summer season, outweigh the benefits of additional competitive service at Heathrow" (p. 4). American disagrees with the outcome of Department's balancing test, and believes that its Gatwick service would provide far greater competitive benefits than additional service by United to Heathrow, which would likewise operate "for less than half the summer season," inasmuch as neither applicant can be awarded in excess of 67 additional frequencies for the coming summer season.
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
| OST-98-3622 | March 29, 1999 | Reply of American
Airlines |
Los Angeles/San Francisco-Beijing/Shanghai Codesharing with China Eastern Airlines |
Both Northwest and United support renewal of American's exemption, but use this opportunity to state their position on exclusivity provisions in codeshare agreements between U.S. and foreign carriers. American agrees that the Department should provide clear guidance on this issue. If exclusivity provisions are to be allowed in some circumstances but not in others, the Department should set forth the competition principles that it will apply, and should promptly do so either in a pending proceeding where this issue has been raised, on in a general policy statement under 14 CFR Part 399. Moreover, the Department's policy should be applied to all codeshare arrangements, including ones that have previously been approved, and not simply to new arrangements presented after the Department adopts such a policy.
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
| OST-99-5459 | March 29, 1999 |  Application for an
Exemption |
US-Baku, Azerbaijan; Tashkent, Uzbekistan Codeshare with Austrian |
| Service List |
Delta plans to offer service to Baku on a third-country codeshare basis in conjunction with its alliance partner, Austrian Airlines, Österreichische Luftverkehrs AG and is concurrently submitting a 30-day notice to the Department regarding this new service. In addition, Delta plans to implement third-country codeshare service to Tashkent as soon as one of its codeshare partners commences service to that point. Austrian has firm plans to implement service between Vienna and Tashkent by March 2000.
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
| OST-97-2162 | March 29, 1999 | Reply of Fine Air
Services to Answer of Polar Air Cargo |
US-Colombia All-Cargo |
Renewal of Fine Air's U.S.-Colombia all-cargo exemption authority will not affect Polar's application for an exemption/designation currently pending in the U.S. - Colombia All-Cargo Services proceeding (Docket OST-98-3939).
Counsel: Pierre Murphy, 202-872-1679, pmurphy@lopmurphy.com
| OST-97-2162 | March 29, 1999 | Joint Reply of Southern
Air Transport and Southern Air and Motion for Leave to File an Otherwise
Unauthorized Document |
US-Colombia All-Cargo |
Polar erroneously argues that Southern Air’s U.S.-Colombia designation is ripe for withdrawal because the authority has been "unused for nearly six months." It would be entirely premature to withdraw Southern Air’s U.S.-Colombia authority, and doing so now would be at odds with the Department’s regulations and precedent. While Polar cites the Department’s replacement of Millon Air, Inc. ("Millon") by Atlas Air, Inc. on U.S.-Colombia all cargo routes, in support of its argument, the Department allowed Millon to retain its dormant U.S.-Colombia authority and designation for almost one and one-half years (from October 24, 1996 through February 26, 1998) before replacing Millon with Atlas. (See Order 98 2-24 at 1-2) It would be unfair and inconsistent with the Department's treatment of Millon to replace Southern Air after only six months of dormancy, particularly when Southern is planning to use that authority to reinstitute U.S.-Colombia service. Polar’s answer completely ignores the pending application for renewal of Southern Air’s U.S.-Colombia all-cargo exemption authority. As explained in that renewal application, Devon Partners LLC has purchased Southern Air's route authority and other assets, and the transaction has been approved by the federal bankruptcy court with jurisdiction over Southern Air's Chapter 11 bankruptcy petition. Devon has formed Southern and transferred the acquired route authority and other assets to Southern, which plans to continue Southern Air's strong record of all-cargo service to the shipping public. Former Southern Air employees are assisting Southern in preparing an application transferring the acquired route to Southern so operations can be resumed under that authority as soon as possible.
Counsel: Pierre Murphy, 202-872-1679, pmurphy@lopmurphy.com and Crowell Moring, Lorraine Halloway, 202-624-2500
| OST-98-4164 | March 29, 1999 | Re: Grant of Additional
Time |
Exemption from Economic Regulations |
Letter to LorAir, Ltd., granting an extension until April 30, 1999, to complete the additional FAA review in order to become operational.
By: U.S. DOT/OST/X-56 Patricia L. Thomas, Chief, Air Carrier Fitness Division, Office of Aviation Analysis
Love Field Service Interpretation Proceeding
| OST-98-4363 | Dated March 24, 1999 Docketed March 26, 1999 |
Edward P. Faberman
- Ex Parte Letter |
Love Field |
Ex Parte Letter of Edward P. Faberman re Declaratory and Procedural Orders closing the Love Field Interpretation Proceeding.
Counsel: Ungaretti Harris, Edward Faberman, 202-778-4460
Alaska Airlines, Inc.
| OST-99-5286 | March 29, 1999 | Response of Alaska
Airlines |
Russian Far East Codeshare with Reeve Aleutian |
In its notice of March 18, 1999 in this docket, the Department appears to be taking the position that Alaska's single frequency should now be open to reallocation. Alaska submits that it should be permitted to retain that frequency not only because the same reasons that lead to the issuance of a waiver last year continue to apply fully, but also because Alaska has now reached an agreement with Reeve, and expects to begin codesharing operations with that carrier soon. These operations will fully utilize the single frequency that Alaska currently has. Alaska therefore submits that withdrawal of its only frequency and complete removal of its presence from the market in inappropriate. Alaska would also note that the demands for frequencies between the United States and the Russia of which it is aware could readily be accommodated without removing Alaska's only remaining foothold in this market.
Alaska and Reeve reached an understanding concerning codesharing services between Anchorage, on the one hand, and Petropavlosk-Kamchatski and Yuzhno-Sakhalinsk on the other hand within the past few days. The parties intend to implement this understanding as soon as possible after the necessary notifications are given to the various CRS's. The markets to be served on a codeshare basis are those between Anchorage, Alaska on the one hand, and Petropavlovsk-Kamchatski and Yuzhno-Sakhalinsk, Russia on the other hand. This will permit Alaska to resume service between the various points on its system and the Russian Far East. Alaska anticipates codesharing with Reeve on both of the two frequencies that it currently operates in these markets.
Counsel: Alaska and Squire Sanders, Marshall Sinick, 202-626-6651
American Airlines, Inc.
| OST-99-5454 OST-98-4522 OST-98-4328 |
March 29, 1999 | Application of American
Airlines |
US-Russia via Helsinki Codesharing with Finnair; US-St. Petersburg Codesharing with Finnair; Chicago-Moscow |
| Service List |
American Airlines, Inc., pursuant to the Department's Notice of March 18, 1999 (New U.S.-Russia Opportunities), hereby applies for a third-country codesharing designation and an allocation of seven weekly combination service frequencies in order to serve between U.S. points, on the one hand, and St. Petersburg and Moscow, Russia, on the other, under a codesharing arrangement with Finnair Oyj. In addition, American seeks underlying route authority to serve St. Petersburg (OST-98-4522), and amendment of its Chicago-Moscow exemption granted by Notice of Action Taken, September 18, 1998 in OST-98-4328) so as to enable American to serve Moscow from U.S. points. American and Finnair will operate daily service to each Russian point, thus requiring the allocation of seven weekly frequencies, since codesharing services count as one half of a frequency for a U.S. carrier placing its code on flights in the U.S.-Russian market operated by another airline. The American/Finnair service to Russia will operate on a year-round basis.
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
Continental Airlines, Inc.
| OST-99-5286 | March 29, 1999 | Amendment to Application
of Continental Airlines |
Houston/Newark/Miami-Moscow/St. Petersburg Codeshare with Air France |
| Service List |
Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2500
Delta Air Lines, Inc.
| OST-99-5286 | March 29, 1999 | Application of Delta
Air Lines |
Moscow/St. Petersburg Codeshare with Air France |
| Service List |
Delta currently operates fourteen weekly codeshare flights to Moscow and three weekly codeshare flights to St. Petersburg with Swissair. Since the MOC limits the number of codeshare flights in any city-pair to no more than seven per week, Delta will be required to cut its current Moscow service in half, a result contrary to Delta’s longstanding objectives to increase U.S.-Russia codeshare service. The Department is well aware of Delta’s plans to increase third-country codeshare service to Russia. Indeed, the Department allocated to Delta additional frequencies to implement expanded service, but Delta’s plans were blocked by Russia’s refusal to allow Delta to conduct additional codeshare flights. In light of Delta’s inability to operate its planned service increases due to the actions of the Russian Federation, the Department granted Delta waivers of the dormancy requirements applicable to Delta’s frequencies. The new rights under the MOC now give the Department the important opportunity to allow Delta to achieve its long planned objective to expand its U.S.-Russia service. An award to Delta of a year-2000 designation would enable it to preserve existing Moscow service levels that Delta has provided in the marketplace for over two years. As the Department has stated, "it is in the public interest . . . to facilitate continuation of the existing incumbent carrier services in the market." Order 94-9-1 at 6. It would also allow Delta to increase service to St. Petersburg from three weekly flights to seven weekly flights.
Delta currently operates fourteen weekly flights between Frankfurt and Mumbai (seven in each direction). Delta has determined that it could operate to Mumbai over a more advantageous routing via Russia airspace, without overflying Afghanistan, and desires to do so immediately. Delta submits that there are at least nineteen weekly overflights that should be subject to allocation in this proceeding, not five as suggested by the Department’s Notice. United terminated all direct services to India and is not using any of its fourteen weekly frequencies. United’s only service to India involves a codeshare operation in conjunction with flights operated by Lufthansa.
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
Federal Express Corporation
| OST-99-5286 | March 29, 1999 | Application of Federal
Express for Allocation of Overflight Frequencies |
US-Russia Overflight Frequencies |
| Service List |
Federal Express Corporation hereby applies, in response to the Notice of the Department of Transportation (the Department), served March 18, 1999 in the captioned proceeding, for grant of twelve (12) one-way Russia overflight frequencies so as to authorize Federal Express to operate six (6) scheduled all-cargo flights a week in each direction between Paris, France, and Subic Bay, Philippines, over the Tashkent overflight routing. Federal Express requests that the foregoing frequency allocation be granted for a period of two years. Federal Express urges the Department to establish a further opportunity for competing applicants for any ``over-subscribed" opportunity to submit additional factual evidence and carrier-selection arguments in support of their applications.
Counsel: Federal Express and Shaw Pittman, Nathaniel Breed, 202-663-8078
Kitty Hawk International, Inc.
| OST-99-5286 OST-99-5456 |
March 29, 1999 | Application of Kitty
Hawk for an Exemption |
US-Moscow/St. Petersburg |
| Service List |
Engage in scheduled foreign air transportation of property and mail between anile point or points in the United States vi a intermediate points to Moscow and St Petersburg, Russia. KHI seeks the right to conduct three weekly round trips scheduled all-cargo flights on the requested route KHI also requests authority integrate this exemption authority with all services KHI is otherwise authorized.
Counsel: Bagileo Silverberg, Robert Silverberg, 202-944-3300
Notice of Proposed Rulemaking: Fees and Charges for Special Services
| OST-99-5003 | March 22, 1999 Docketd March 29, 1999 |
Comments of The
International Air Carrier Association |
NPRM: Fees and Charges for Special Services |
By: IACA, D R Holder
| OST-99-5003 | March 29, 1999 | Comments of Asiana
Airlines |
NPRM: Fees and Charges for Special Services |
By: Patton Boggs LLP, Joseph E. Schmitz for Asiana Airlines
| OST-99-5288 (Note: Docket Section Incorrectly Labeled Filing as OST-99-5003 and Later Corrected) |
March 22, 1999 Docketd March 29, 1999 |
Answer of the City of
Columbus, Missouri |
Certificate of Public Convenience and Necessity, - Interstate Scheduled |
By: Raymond Beck, City Manager
| OST-95-487 | March 29, 1999 | Application for Renewal of
Exemption |
Manila-Guam Route 2 Scheduled Combination |
| Service List |
PAL. holds a foreign air carrier permit to engage in scheduled foreign air transportation of persons, property and mail between points in the Philippines and selected points in the United States, including Guam. Order 91-1-38. PAL's permit authority includes the right to serve Guam on Philippines Route 2 under the U.S.-Philippines bilateral.
Counsel: Philippine Airlines and Zuckert Scoutt, Malcolm Benge, 202-298-8660
Terre Haute, Indiana / Great Lakes Aviation, Ltd.
| OST-99-5174 | March 25, 1999 Docketed March 29, 1999 |
Objection of Terre
Haute International Airport |
EAS - Notice of Termination of Service by Great Lakes |
By: Charles Goodwin
Virgin Atlantic Airways Limited
| OST-99-5239 | March 29, 1999 | Answer of the City
of Chicago in Support |
High Density Rule - Chicago O'Hare |
Virgin’s slot exemptions will bring added competition to the O’Hare-Heathrow market, further linking two of the top airports and financial centers in the world in one of the fastest growing and most lucrative air routes. Chicago-London traffic has increased dramatically since the U.S.-U.K. mini-deal. Between 1994 and 1997, Chicago-London traffic increased from 564,028 to 1,099,444 passengers, a growth rate of 79 percent. Furthermore, according to the most recently available T-100 statistics, between 1997 and 1998, Chicago-London traffic grew by another 26 percent after new capacity was added, including American’s Chicago-London daylight service. This suggests that additional demand exists for Chicago-London service, and that Virgin’s new Chicago service, building on Virgin’s success at its other U.S. destinations, can be expected to stimulate traffic for all competitors. For Virgin, Chicago represents by far the largest U.S. city it does not serve on a non-stop basis. It would also build on its brand identity following the opening last year of a Virgin "Megastore" on Chicago’s Magnificent Mile, while presenting ample opportunities for increased tourism through Virgin Holidays.
Counsel: Winthrop Stimson, Kenneth Quinn, (202) 775-9898, quinnk@winstim.com
| OST-99-5239 | March 29, 1999 | Answer of United Air
Lines |
High Density Rule - Chicago O'Hare |
Notwithstanding its acknowledged tardiness, and therefore its ineligibility for a slot exemption, Virgin asks for special consideration by the Government of the United States and cites a number of alleged public interest benefits that would flow from such special consideration and the grant of an exemption. Virgin emphasizes the brief period for which it seeks an exemption and cites "enhanced competition" and "economic benefits" as public interests that would be served by approval of its application. Virgin also claims that bilateral considerations and existing "equivalency" in carrier designations in the U.S.-U.K. market support grant of exemption application. Virgin's bilateral competition and "equivalency" arguments also fail on other fronts. The U.S,.-U.K. Bilateral does not require grant of Virgin's exemption application and there are no credible reciprocity-based arguments for grant of this special benefit to Virgin. There is no U.K. equivalent to the U.S. exemption provision upon which Virgin seeks to rely in this application. Neither the Government of the United Kingdom nor the authorities at LHR provide a procedure for slot exemptions.
Counsel: United and Kirkland Ellis, Jeffrey Manley, 202-879-5161, jeffrey_manley@kirkland.com
International Air Transport Association
| OST-99-5457 | March 26, 1999 | Application for Approval
of Agreements |
Mid Atlantic-Africa/South Atlantic-Africa |
Counsel: IATA, David O'Connor, 202-624-2977
| OST-99-5241 | Filed March 15, 1999 Approved March 23, 1999 |
Notice of Approval of IATA
Agreements |
| OST-99-5388 | Filed March 18, 1999 Approved March 23, 1999 |
By: Paul Gretch
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