OST Filings for January 3, 2001

OST Docket Filings for January 3, 2001

Last Updated 01/03/01 05:49 PM

Applications and Renewals:

None

Answers and Replies:

United and British Midland (2)- Answer of American/Reply of United/British Midland

U.S.-Ghana Combination Codeshare - Answer of American | Wendell Ford - Certification of Midway at LGA

Notices of Action Taken:

America West | AUSA | Pakistan

Notices and Orders:

Taquan - Issuing Certificate

Aerolineas Uruguayas, S.A. (A.U.S.A.)

OST-00-8547

Filed December 14, 2000
Issued January 3, 2001

Notice of Action Taken

U.S.- Montevideo, Uruguay

Exemption to engage in charter foreign air transportation of property and mail between Uruguay and the United States; and other all-cargo charters in accordance with Part 212 of our rules.

By: Paul Gretch

Index

America West Airlines, Inc.

OST-95-736
OST-98-3581

Filed December 7, 2000

Notice of Action Taken

Phoenix- Ixtapa/Zihuatanejo, San Jose del Cabo/Mazatlan/ Mexico City/Puerto Vallarta/ Manzanillo/Acapulco; Las Vegas- Mexico City

Scheduled foreign air transportation of persons, property, and mail between (1) the terminal point Phoenix, Arizona, on the one hand, and the cooterminal points San Jose del Cabe, Mazatlan, Mexico City, Puerto Vallarta, Haxwwillo,.and Acapulce,-Mexico, on the other hand; and (2) the terminal point Las Vegas, Nevada, and Mexico City, Mexico. America West states that the authority will be used to provide seasonal service. in all of the markets listed.

By: Paul Gretch

Index

Pakistan International Airlines Corporation

OST-99-5758

Filed June 1, 1999
Issued January 3, 2001

Notice of Action Taken

U.S. - Pakistan

Exemption from 49 U.S.C. 41301 to conduct scheduled foreign air transportation (a) of persons, property and mail from behind Pakistan, via Pakistan and intermediate points, to points in the United States, and points beyond; (b) of cargo between the United States and any point or points; and (c) charter foreign air transportation of persons, property and mail between Pakistan and the United States and between the United States and any point not in Pakistan or the United States, and other charters pursuant to 14 CFR 212 of the Department's regulations.

By: Paul Gretch

Index

Taquan Air Service, Inc. and Venture Travel, LLC d/b/a Taquan Air

Order 01-1-03 OST-00-8212	Issued January 2, 2001 Served January 3, 2001	Order Issuing Certificate and Confirming Oral Action	Certificate of Public Convenience and Necessity
		Attachment: Certificate of Public Convenience and Necessity
		Service List

By: Randall Bennett

Index

United Air Lines, Inc. and British Midland Airways Limited / British Midland Airways Limited

OST-00-6842 OST-00-6954	January 3, 2001	Answer of American Airlines	Statements of Authorization - U.S.-U.K. Codesharing / Exemption
		Service List

American Airlines, Inc. hereby answers in opposition to the joint application for amendment of exemption and state-ment of authorization submitted by United Air Lines, Inc. and British Midland Airways Limited on December 19, 2000. By this application, United and British Midland are seeking to expand the authority granted by Order 2000-7-27, July 24, 2000, in order to display the “BD” designator code to 13 additional U.S. cities beyond British Midland's proposed Washington (Dulles) and Chicago gateways.

American is particularly concerned that the Depart-ment take no further action that would benefit and strengthen Star Alliance carriers, such as United and British Midland, while American and British Airways, which are members of the competing oneworld alliance, continue to be denied codeshar-ing approval that is fully consistent with Bermuda 2. For the Department to confer benefits on Star Alliance carriers, while continuing to withhold approval of the codesharing request by oneworld carriers American and British Airways, would contra-vene the Department's fundamental policy of encouraging the development of competing global alliances. See Transatlantic Deregulation, The Alliance Network Effect, October 2000, in which the Department found that competing alliances, or the "alliance network effect," will play "a key role in the evolv-ing international aviation economic and competitive environment."

The American/British Airways request in OST-99-6507 is consistent with Bermuda 2, is complete, and has long been ripe for immediate approval. Indeed, the United Kingdom has stated that it considers the Department's failure to approve the pending American/British Airways codeshare application to be a breach of the applicable Memoranda of Consultations. See letter of March 28, 2000 from Anthony T. Baker, Director of International Aviation Negotiations of the U.K.'s Department of Environment, Transport and Regions to Paul L. Gretch, Director, office of International Aviation. Approval will send an important signal to the United Kingdom that the United States is committed to meeting its bilateral responsibilities under Bermuda 2. Such a signal will, in turn, assist greatly in the Department's efforts to move toward liberalization of U.S.-U.K. aviation relations.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com

OST-00-8485	January 3, 2001	Consolidated Joint Reply of British Midland and United Air Lines	Statements of Authorization - U.S.- U.K. Codesharing / Exemption
		Service List

The one point on which British Midland, United and the opposing carriers agree is that open skies or, at the very least, substantial liberalization of Bermuda 2 is a much desired objective. The differences arise, however, in how to achieve that objective. The Joint Applicants firmly believe that maximizing the degree of competitive pressure on the incumbent U.K. carriers at Heathrow, and on British Airways in particular, would be the best strategic approach. Notably, none of the answering carriers disagrees that approving the Joint Application would place significant new competitive pressure on British Airways (and Virgin Atlantic) that could influence the carriers' consistent opposition to liberalization of the Bermuda 2 agreement.

The opposing carriers prefer that a moratorium be placed on the grant of any new authority to British carriers pending the conclusion of an open skies agreement with the United Kingdom. That strategy would, however, play directly into British Airways' and Virgin Atlantic's hands by shielding them from increased competition from United and British Midland, especially for U.K. -originating London passengers. Such an ill-conceived strategy would also reward these opponents of change for their on-going opposition tomarket liberalization 4 and continue to allow British Airways to decide when, whether, and to what extent it is prepared to move forward with open skies or substantial liberalization. Any objective analysis of the current U.S.-U.K. impasse inevitably leads to the conclusion that a strategically active rather than passive approach represents the best path for achieving substantial liberalization, if indeed not open skies.

British Midland has more at stake and has worked more diligently than any other carrier to advance the cause of open skies or substantial market liberalization. British Midland has taken such an active role by expending substantial sums to conduct public awareness campaigns in the U.K. explaining how the British consumer is. ill-served by the continuation of Bermuda 2, and by committing to acquire long-range aircraft with the confidence that the overwhelming benefits of open skies or significant liberalization will finally prevail. British Midland has every incentive to continue its efforts to liberalize the agreement because British Midland understands that liberalization is the only way in which it will be permitted to provide its own direct flights between the U.S. and London (Heathrow). These direct flights remain British Midland's primary objective, to which British Midland is absolutely committed.

Counsel: United and Wilmer Cutler, Jeffrey Manley, 202-663-6670, jmanley@wilmerc.com / Squire Sanders, Robert Papkin, 202-626-6600, rpapkin@ssd.com for British Midland

Index

U.S.-Ghana Combination Service Codeshare Opportunities

OST-00-7149	January 3, 2001	Answer of American Airlines	U.S.- Ghana Combination Service Codeshare Opportunities
		Service List

While American does not oppose Northwest's applica-tion, American urges the Department to grant American's long--pending application in OST-00-7149, submitted on April 14, 2000, for allocation of five U.S.-Ghana third-country codeshare frequencies to serve between the United States and Accra, via London, under a codesharing arrangement with British Airways Plc.

On March 31, 2000, the Department issued a Notice in OST-00-7149 requesting applications for allocation of 14 frequencies available under the U.S.-Ghana ad referendum Memorandum of Consultations of March 16, 2000. Applications were submitted by American (for five frequencies, to be used with British Airways); Northwest (for five frequencies, three to be used with Alitalia, and two with KLM); and United (for two frequencies, to be used with Lufthansa). By Notice of Action Taken on July 13, 2000, the Department granted the Northwest and United requests, but deferred action on Ameri-can's application, "pending the Department's action on the underlying codeshare arrangement between American and British Airways in Docket OST-99-6507.

Subsequently, the three frequencies allocated to Northwest for codeshare service with Alitalia lapsed for dormancy, and automatically reverted to the Department. Accordingly, of the 14 frequencies made available by the Department's Notice, only 11 have been spoken for. United has two; Northwest has two and is seeking two more by its present application; and American continues to seek five.

In these circumstances, American does not object to Northwest's request. However, American urges expedited approv-al of its codesharing application with British Airways in OST-99-6507, pending since November 15, 1999, and the allocation of five third-country codeshare frequencies to serve Accra via London.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com

Index

Wendell H. Ford Aviation Investment and Reform Act for the 21st Century

OST-00-7176	January 3, 2001	Certification of Midway Airlines Corporation	Interim slot rules at LaGuardia Airport- Raleigh/Durham International Airport.
		Attachment: Verification, Schedule A

Pursuant to the U.S. Department of Transportation (the "DOI") Order 2 000-4-10 for slot exemptions at New York's LaGuardia Airport, Midway Airlines Corporation ("Midway") in accordance with the requirements outlined therein hereby certifies the following information, and Midway requests fifteen (15) new slot exemptions.

Midway holds three (3) slot exemptions at LaGuardia Airport which are now beingoperated along with fifteen (15) slot exemptions Midway previously obtained pursuant to Order 2000-4-10. On December 4, 2000, Midway participated as an eligible carrier in the Federal Aviation Administration's lottery to reallocate exemption slots at LaGuardia Airport.

In that lottery, Midway was eligible to select and did select for use the fifteen (15) new slot exemptions set forth in Schedule A attached hereto and incorporated herein (the "Air 21 slots"). Pursuant to the Notice of Lottery for Takeoff and Landing Times at LaGuardia Airport issued by the Federal Aviation Administration dated November 29, 2000, Midway is required to re-certify certain matters with respect to the Air 21 slots as follows:

Midway will use all its Air 21 slots to provide non-stop service between LaGuardia Airport and Raleigh-Durham International Airport;

Midway will provide service in this market using Boeing 737-700, Fokker F-100 and/or Canadair Regional Jet aircraft, which are all Stage 3 compliant; and

Midway will use the Air 21 slots for service into and out of LaGuardia Airport at the times and on the frequencies set forth in Schedule A.

Counsel: Midway Airlines, Jonathan Waller, 919.959.6000

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