Supplement No. 1 to Application© Copyright 2002 Airline Information Research, Inc. All rights reserved.
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OST Docket Filings January 4, 2002 |
Last Updated 01/07/02 01:25 PM
Applications and Renewals:
Consorcio Aviacsa - Monterrey - L.A. Renewal | Northwest - U.S.- South America Codeshare Renewal | Transpais Aereo - U.S.- Mexico Taxi Renewal
Answers and Replies:
Aerodyanmics - Supplement | Delta/Air France/Alitalia/Czech - Answers of Air Carrier Assoc / ASTA
Orbitz - Comments of RADIUS | Transportation Security Administration - Correction
Notices of Action Taken:
Aerolitoral/Aeromexico | Central Mountain
Notices and Orders:
Great Lakes - Service Obligation | U.S.-Turkey Third-Country Code-Share - Notice
| January 4, 2002 | Supplement No. 1 to Application |
Interstate Charter Air Transportation of Person, Property, and Mail | |
| Attachments: Resumes |
Counsel: Boros Garofalo, Aaron Goerlich, 202.822.9070, ageorlich@bgairlaw.com
| January 4, 2002 | Supplement No. 1 to Application |
Foreign Charter Air Transportation of Person, Property, and Mail |
Counsel: Boros Garofalo, Aaron Goerlich, 202.822.9070, ageorlich@bgairlaw.com
Aerolitoral, S.A. de C.V. and Aerovias de Mexico, S.A. de C.V.
| OST-01-11101 | Filed December 4, 2001 Issued January 4, 2002 |
Notice of Action Taken |
Hermosillo- L.A./Ontario |
Exemption from 49 USC section 41301 to permit Aerolitoral to conduct, using small equipment
(see below) scheduled, combination service between Hermosillo Mexico, and the U.S. coterminal points Los
Angeles/Ontario, California; and a Statement of Authorization under 14 CFR Part 212 to permit Aerolitoral to carry
Aeromexico's designator code on these flights (both markets) and to carry Delta Airlines' designator code on flights
between Hermosillo and Los Angeles.
By: Paul Gretch
| OST-97-3159 | Filed December 7, 2002 Issued January 4, 2020 |
Notice of Action Taken |
Calgary/Alberta/Spokane, Washington |
Exemption from 49 USC section 41301 to permit the applicant to continue to conduct, using small equipment (see below), scheduled, combination service between Calgary, Canada, and Spokane, Washington; and an exemption from 49 USC section 41301 and a Statement of Authorization under 14 CFR Part 212 to the extent necessary to wet lease small equipment to Air Canada for the operation of Air Canada's services in that market.
By: Paul Gretch
Consorcio Aviaxsa, S.A. de C.V.
| OST-00-6745 | January 4, 2002 | Application for Renewal of Exemption |
Los Angeles, Ca.- Monterrey, Mexico |
| Service List |
Applicant filed an application to amend its foreign air carrier permit application on March 6, 1998. (Editor's Note: Application was filed Feb 18, 1998) In said application, Applicant sought to add scheduled air transportation of persons, property and mail between points in Mexico and points in the United States, and subject to applicable regulations of the Department, between points in the United States and points worldwide. The Department has not acted on the amended permit application.
In this application, Applicant seeks to renew its exemption for operations between Monterrey, Mexico and Los Angeles, California, USA. The exemption for the route was approved by the Department through a 'Notice of Action Taken' on January 11, 2001, and expires on January 27, 2002. Applicant was designated on the route by the Government of Mexico in Note No. 1436, dated November 5, 1999. It is Applicant's understanding that Note No. 1436 is in the Department's hands. The designation remains in effect.
Counsel: Holland Knight, Jim Marquez, 202.955.3000
Delta Air Lines, Inc., Societe Air France, Alitalia-Linee Aeree Italiane S.p.A., and Czech Airlines
| OST-01-10429 | January 4, 2002 | Answer of the American
Society of Travel Agents |
Approval of and Antitrust Immunity for Alliance Agreements |
| Service List |
The history of the grants of antitrust immunity for airline alliances since the
Northwest-KLM approval reveals that the central idea behind the extraordinary act of
immunizing almost complete commercial collaboration among major competitors is that,
all things considered, the public will be better off with fewer competitors providing more
integrated services than would be possible through a set of bilaterally reached agreements
providing for joint operations in particular markets. Scant if any attention seems to have
been paid to some of the negative effects of giving large airlines the freedom to conspire
and agree upon such matters as commissions to be paid to third parties for selling their
services.
The goal of the Department's approvals appears to be to achieve that which the
Federal Aviation Act forbids, namely, the merger of a foreign and domestic airline in such
manner that the foreign air carrier would inevitably be deemed in "control" of a U.S.
domestic airline. The series of immunizations beginning with Northwest-KLM have permitted de facto mergers, whereby the airline parties act as if they are merged but retain
their separate legal and national identities.
The net effect of the entire series of immunizations is that the major airlines of the
world have been permitted to choose up sides, as it were, to self-select which airlines they
want to continue to "compete" with and which not. For as surely as the sun will rise, the
agreements in this proceeding will effectively end competition between those carriers and
leave them merged in practice if not in name. The same has been true for others that DOT
has immunized.
Counsel: ASTA, Paul Ruden, 703-739-6854, paulr@astaq.com
| OST-01-10429 | January 4, 2002 | 
Comments of the Air
Carrier Association of America
|
Approval of and Antitrust Immunity for Alliance Agreements |
On December 21, 2001, the Department issued a Show Cause Order tentatively approving the proposed alliance and request for antitrust immunity. In doing so, the Department dismissed ACAA’s request that domestic competition issues be addressed stating:
As to the domestic competition issues, we will not address them in this proceeding. The Department is currently dealing with these concerns in other proceedings, and we find that the issues raised by the ACAA are more appropriately considered in these other fora.
ACAA finds this statement is puzzling. Exactly in what other fora are these issues being addressed? Some issues pertaining to entry into domestic markets were to be considered in the following proceedings: FAA-01-9854 “Notice of Alternative Policy Options for Managing Capacity at LaGuardia Airport”, and OST-01-9849 “Market Based Actions to Relieve Airport Congestion and Delay”. Both of these proceedings have been suspended indefinitely. Moreover, neither proceeding dealt with opening up Reagan National Airport. Under the Department’s “suspended” Policy Options for Managing LaGuardia Airport, some new entrants were limited to two roundtrips and no new entrant can operate more than 10 roundtrips, although the high density regulations have no such restrictions. That certainly doesn’t address this issue.
While new entrants are limited at high density airports, the nation’s largest carriers have no limitations on slot holdings and operate more than ten roundtrips to their primary hubs. This is not competition. These rules block new entrants from fairly competing. Despite dramatic changes in the airline industry, the Department has not even proposed changes to the high density regulation (other than because of Congressional mandate) for the past fifteen years. All proposals submitted by ACAA or others even for minor changes have been dismissed.Counsel: ACAA, Edward Faberman, 202.639.7502
| Order 02-1-02 OST-99-5712 |
Issued January 4, 2002 Served January 9, 2002 |
Order
Extending Service Obligation |
EAS - 90-Day Notice to Terminate Service at Oshkosh, WI |
By Order 99-10-6, the Department established an annual subsidy rate of $460,392 for Great Lakes' hold-in service, until the Department takes further action. In the meantime, the community is exploring other service options for Oshkosh. Since we have not yet received any proposals, this case will not be completed before the end of the current 30-day hold-in period. Thus, in accordance with 49 U.S.C. 41734(c), we will extend Great Lakes' service obligation at Oshkosh for an additional 30 days, or until replacement service actually begins, whichever occurs first.
By: Randall Bennett
| OST-00-6928 | January 4, 2002 | Application of Renewal of Exemption |
Newark- Lima- Santiago; Houston- Lima- Santa Cruz; Newark- Puerto Plata; and Newark- Rio de Janeiro- Belo Horizonte - Codeshare with Continental |
| Service List |
Hereby applies for renewal of an exemption from 49 U.S.C. § 41101 authorizing Northwest to: (1) provide scheduled foreign air transportation of persons,
property and mail between (a) Newark and Houston, on the one hand, and Santa Cruz, Bolivia,
via Lima, Peru, on the other hand, (b) Newark and Puerto Plata, Dominican Republic; and (c)
Newark and Belo Horizonte, Brazil, via Rio de Janeiro; (2) integrate its U.S.-Chile certificate
authority on Route 3-F with its Newark/Houston-Lima, Peru exemption authority in order to
operate Newark-Lima-Santiago service; and (3) integrate the authority requested herein with
Northwest's other certificate and exemption authorities to the extent permissible under
applicable law and governing bilateral agreements. Northwest intends to operate this service
pursuant to a code-share arrangement with Continental Airlines, Inc.
Counsel: Northwest, Megan Rae Rosia, 202.842.3193
| OST-01-11086 | January 4, 2002 |
Comments of RADUIS- The Global
Travel Company
|
Unbundling Airfares and Fess |
RADIUS - the Global Travel Companybelieves that it is essential that business and leisure travelers have complete and clear access to all fare information. Radius has supported previous Department efforts to provide such information to the public. It is essential that when the Department addresses these issues, it does so in an equitable manner treating all travel agencies identically. Therefore, Radius asks that the Department allow its shareholders and all travel agencies to disclose fares in the same manner as it has allowed Orbitz to display fares. If the Department is not prepared to treat all in the same manner, then Radius opposes the Department’s decision as it provides Orbitz with preferential treatment and consequently discriminates against “off-line” travel agents.
Counsel: Ungaretti Harris, Edward Faberman, 202.639.7501
| OST-96-1912 | January 4, 2002 | Application
for Renewal of Exemption |
U.S.- Mexico Charter Taxi |
| Exhibit A: Changes in Operations | |||
| Service List |
Counsel: Roller Bauer, Lee Bauer, 202-331-3300, airlaw@rollerbauer.com
Transportation Security Administration (TSA)
| OST-99-6189 | January 4, 2002 | Correction
to Rule |
Transportation Security Administration (TSA) |
By: Steven Cohn
U.S.-Turkey Combination Service Third-Country Code-Share Opportunities
| OST-01-11273 | Served January 7, 2002 | Notice |
U.S.-Turkey Combination Service Third-Country Code-Share Opportunities |
By this notice we invite U.S. certificated air carriers interested in using third-country code-share
opportunities in the U.S.-Turkey market to file applications as specified below in the captioned
docket. On May 2, 2000, the United States and Turkey signed an open-skies air transport
agreement. The agreement includes a three-year transition for the operation of third-country code-share
combination services. For the first two years of the transition, i.e., through March 31, 2002, up to
five U.S. airlines could provide code-share services to Turkey in conjunction with third-country
carriers and collectively could operate a total of 35 weekly frequencies. From April 1, 2002,
through March 31, 2003, up to seven U.S. airlines could offer such services, operating a combined
total of 49 weekly frequencies (an increase of two additional airlines and 14 weekly frequencies).
Effective April 1, 2003, there will be no restrictions on the operation of third-country code-share
combination services.
Based on actions we took to award the available third-country code-share opportunities during the
first and second years of the transition, Delta Air Lines, Northwest Airlines and United Air Lines
now hold authority to serve the U.S.-Turkey market via intermediate points with their respective
code-share partners, Air France, KLM and Lufthansa. Northwest and United are each allocated
fourteen weekly frequencies for their code-share services while Delta is allocated seven weekly
code-share frequencies, for a total of 35. We are now beginning the process whereby we can
award additional authority in light of the new opportunities that become available in the final part
of the transitional phase-in. Specifically, by this notice we request that all U.S. air carriers
interested in using the third-country code-share opportunities becoming available April l, 2002 to
file applications for those services with the Department no later than January 28,
2002. Answers
The agreement entered into force on August 13, 2001.
We note that on December 27, 2001, Continental Airlines, Inc. filed an application in
Docket OST-2001-11250 for a third-country code-share authorization and allocation of frequencies to operate code-share
services in the U.S.-Turkey market with KLM beginning April l, 2002. We will consolidate this application
into the proceeding established by this notice. Accordingly, answers to Continental's application, which
normally would be due on January 11, will instead be due on the dates established by this
notice to such applications should be filed by February 7, 2002. Replies to answers should be filed by
February 14, 2002.
By: Paul Gretch
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