OST Filings for January 18, 2001

OST Docket Filings for January 18, 2001

Last Updated 01/19/01 02:09 PM

Applications and Renewals:

Air Jamaica - Jamaica- Houston | Corporate Airlines - 90-Day EAS Notice at Burlington, IA | DHL Worldwide - Petition of UPS | IATA

Answers and Replies:

Air Excursions - Additional Information | Hong Kong Fifth Freedom All-Cargo - Reply of Polar

Sun Air Express - Compliance Disposition | Vietnam Airlines - Supplement | Wendell Ford - Re-Certification of US Airways Express Carriers

Notices of Action Taken:

American - Japan Codesharing Renewal | Islandsflug

Notices and Orders:

Deceptive Internet Practices - Notice | Foreign Air Carrier Reporting Requirements - Final Order

Los Angeles-San Jose del Cabo Exemption Proceeding - Final Order

Aero Continente Chile, S.A./LADECO, S.A./Linea Aerea Nacional-Chile Sociedad Anonima, Lan Chile, S.A./Air Ansett New Zealand Limited/Air New Zealand Limited/Singapore Airlines Limited and Royal Brunei Airlines Sdn. Bhd.

Order 01-1-13 OST-00-8393	Issued January 16, 2001 Served January 18, 2001	Final Order	Foreign Air Carrier Permits and Exemptions
		Appendix: Current Department Authority Being Amended By This Order

By this order, the Department finds that it is in the public interest to modify the proposals announced in Show-Cause Order 2000-11-25 concerning the reporting requirement on certain foreign air carriers in connection with a new multilateral agreement involving the United States and various APEC members, and to finalize the requirement as modified.

The purpose of our show-cause order was to provide a fair and effective vehicle for allowing us to exercise that right. Therefore, we tentatively found that it was in the public interest for the Department to be informed of specified changes in the ownership of the voting stock of the foreign air carriers covered by the agreement, and that those foreign air carriers should provide the necessary information.

After carefully considering all matters of record, including all of the comments filed in response to our tentative decision, we have decided to affirm our initial determination that it is in the public interest for the foreign air carriers to provide the information we need to effectively monitor the operation of the agreement provision at issue. We have also determined, however, that it is in the public interest to modify the proposed reporting requirement to meet many of the issues and concerns raised in response to the tentative decision.

First, we will only require reporting of transactions in which U.S. nationals are the beneficial shareholders. We agree that this change is consistent with the purpose of filing the information we have requested.
Second, we will only require reporting of two types of transactions: (1) transactions that involve an upward change in the beneficial control by a U.S. national shareholder of 20 percent or more of the foreign air carrier's outstanding stock, and (2) transactions that result in an overall accumulated total holding by a U.S. national shareholder of beneficial control of 40 percent or more of the foreign carrier's outstanding stock.5 We appreciate the concerns of SIA and ANZ that a five-percent threshold could place an undue burden on the affected carriers.
Third, instead of advance notification, we will require the foreign air carriers involved to notify the Department no later than 30 days after any transaction meeting the above-cited parameters. We agree that the proposed advance notice requirement could have proven difficult to implement and could have had unintended adverse effects. Moreover, to the extent that the reporting carrier is unaware at the time of the transaction of the subject upward change in control by a U.S. national, the 30-day period will run from the date that the carrier either actually became aware of it, or through due diligence should have become aware of it, whichever is earlier.
Fourth, we will not require foreign air carriers to notify the Department when their homelands begin to implement the terms of the Agreement in relation to the United States. We agree that diplomatic channels are available for this purpose.

By: Francisco Sanchez

Index

Air Jamaica Limited

OST-01-8733	January 18, 2001	Application for Exemption	Jamaica- Houston , TX
		Attachment: Letter from Jamaican Embassy
		Service List

Pursuant to 49 U.S.C. § 40109(c) and the Department's Rules of Practice, Air Jamaica Limited hereby applies for an exemption amending the list of U.S. points that it may serve under its permit authority so that it may provide scheduled foreign air transportation of persons, property, and mail between the coterminal points Kingston and Montego Bay, Jamaica, on the one hand, and Houston, Texas, on the other. Air Jamaica's foreign air carrier permit, issued by Order 89-3-74, authorizes Air Jamaica to serve ten U.S. coterminal points, and it provides that these coterminal points may be changed by the Department, under assigned authority, upon Air Jamaica's application. Air Jamaica requests that the Department substitute Houston, Texas for San Francisco, California as one of the ten U.S. points. Air Jamaica desires to begin providing service between Jamaica and Houston on June 7, 2001.

Counsel: Hogan Hartson, George Carneal, 202.637.6546, gucarneal@hhlaw.com

Index

American Airlines, Inc.

OST-99-4994

Filed December 11, 2000
Issued January 18, 2001

Notice of Action Taken

U.S.- Japan Codesharing

Scheduled foreign air transportation of persons, property, and mail between: (1) a point. or points in Japan and a point or points in the United States, either nonstop or via an intermediate point or points in third countries; (2) any two points in Japan, limited to traffic originating or terminating outside Japan; (3) a point or points in the United States and a point or points beyond the United States; and (4) a point or points in Japan and a point or points beyond Japan, an a blind-sector basis.

By: Paul Gretch

Index

Corporate Airlines, Inc. d/b/a Trans World Express

OST-01-8731	January 18, 2001	90-Day Notice of Intent to Terminate Essential Air Service at Burlington, IA	90-Day Notice to Terminate EAS
		Service List

At the time of the filing of this notice both Corporate Airlines, inc. (flying as Trans World Express), and Great Lakes Aviation, LTD. (flying as United Express) are providing scheduled air service at Burlington, Iowa. However, Great Lakes Aviation is scheduled to suspend its service to Chicago effective February 15, 2001.

Traffic results have been significantly below the levels needed, and as a result the revenues generated from the flights have not covered the costs of providing the service.

By: Charles Howell, 615.223.5644

Index

Registration of DHL Worldwide Express, Inc. as a Foreign Air Freight Forwarder Pursuant to 14 CFR 297

OST-01-8732	January 18, 2001	Petition of United Parcel Service for Review of Staff Action and Motion to File an Otherwise Unauthorized Document	Registration of DHL Worldwide Express, Inc. as a Foreign Air Freight Forwarder Pursuant to 14 CFR 297
		Appendix A: Letter from DOT to Counsel for DHL and Application
		Appendix B: Chart
		Service List

Allowing the German Government-controlled Deutsche Post, with its monopoly on mail and other government subsidies, unfettered access to the domestic U.S. market is not in the public interest, since it would undermine and contravene the stated basis for permitting foreign air-freight forwarders such access to the U.S. market. By effectively affording cabotage rights to a Government-controlled foreign monopoly, maintaining the grant of the license contradicts the underlying statutory goal of promoting competition that exists free of government intervention. As such, DHL-W's license to engage in interstate transportation within the U.S. should be cancelled.

Counsel: UPS and Kelly Drye, David Vaughan, 202.955.9864 and Wiley Rein, Fred Fielding, 202.719.7320

Index

Hong Kong Fifth Freedom All-Cargo Proceeding

OST-95-764	January 18, 2001	Consolidated Reply of Polar Air Cargo to the Answers of Federal Express, Northwest Airlines and UPS	Hong Kong Fifth Freedom All-Cargo Proceeding
		Service List

Virtually all of the carriers competing for the three U.S.-Hong Kong roundtrip fifth freedom all-cargo frequencies agree that the Department must institute a comparative selection proceeding in order to fairly allocate the frequencies. The scope and procedures governing the proceeding remain to be determined. With the exception of Northwest, which alone believes that the record stands largely complete -- an assertion which Polar and others strongly contest -- the remaining applicants generally agree that evidence requests, exhibits, rebuttal exhibits, and possibly briefs are in order.

Under the UPS proposal, the Hong Kong frequencies would remain unused for nearly three additional months, a delay that is both unnecessary and harmful to U.S. interests. Indeed, Polar believes that Evergreen's proposed 80-day proceeding is twice as long as is necessary under the circumstances. Polar would urge the Department to reject any unnecessary delay.

UPS has also proposed two Information Requests that would paper the record with reams of unnecessary information. The Department should similarly decline to entertain this delaying tactic. The Information Request previously used in this docket was sufficient then, and it remains so today. Polar would urge the Department to move forward with a focused, straightforward and expeditious proceeding that will produce a record demonstrating the highest and best use of the available frequencies.

Counsel: Polar and Wilmer Cutler, Jeffrey Manley, 202-663-6670, jmanley@wilmer.com

Index

Islandsflug, HF

OST-98-4435

Filed December 27, 2000
Issued January 17, 2001

Notice of Action Taken

U.S.- Iceland

By: Paul Gretch

Index

Los Angeles-San Jose del Cabo Exemption Proceeding

Order 01-1-11 OST-00-8361	Issued January 18, 2001 Served January 18, 2001	Final Order	Los Angeles- San Jose del Cabo Exemption Proceeding
		Appendix A: Standard Exemption Conditions

By this order we make final our tentative decision in Order 2000-11-23 to select American Airlines, Inc. (American), to provide foreign scheduled air transportation services between Los Angeles, California, and San Jose del Cabo, Mexico, with its own aircraft, pursuant to exemption authority.

By: Susan McDermott

Index

Sun Air Express. LLC

OST-00-8015

January 17, 2001

Compliance Disposition

Scheduled Commuter Passenger Operations

By: Patrica Thomas

Index

Prohibition on Deceptive Practices in the Marketing of Airfares to the Public Using the Internet

January 18, 2001

Notice

Deceptive Practices in the Marketing of Airfares to the Public Using the Internet

The Department has provided interpretive guidance on the rule and, through a number of enforcement-related consent orders, has recognized certain exceptions to the "'full fare" advertising standard. In accordance with this enforcement case precedent, the Department has allowed taxes and fees collected by carriers and other sellers of air transportation, such as passenger facility charges (PFCs) and departure taxes, to be stated separately in fare advertisements so long as the charges are levied by a government entity, are not ad valorem in nature, are collected on a per-passenger basis, and their existence and amount are clearly indicated in the advertisement so that the consumer can determine the full fare to be paid.

By: Samuel Podberesky

Index

Steven Wilson d/b/a Air Excursions, d/b/a Chilkat Aviation

OST-99-5948	January 18, 2001	Re: Additional Information	Certificate of Public Convenience and Necessity - Interstate Scheduled
		Attachments: Financials

By: Air Excursions, Mike Loverink

Index

Vietnam Airlines Corporation

OST-00-8562	January 18, 2001	Supplement to Application of Exemption Authority	Hanoi-Ho Chi Min City - Los Angeles-San Francisco via Taipei Codeshare
		Attachment 1: Certificate of Insurance
		Attachment 2: Agreement
		Attachment 3: Certification
		Attachment 4: Person Responsible for Financial Statements
		Service List

By this supplement, Vietnam Airlines is providing the following additional information and documents relating to Vietnam Airlines' application.

Attachment 1 hereto contains copies of the two foreign air carrier insurance certificates (OST Form 6411) that have been filed at the Federal Aviation Administration on behalf of Vietnam Airlines in accordance with Part 205 of the Department's Economic Regulations.
Attachment 2 contains three original, executed copies of the Montreal Agreement (OST Form 4523) relating to waiver of liability limits under the Warsaw Convention.
Attachment 3 is the original certification of Vietnam Airlines' application, signed by Mr. Nguyen Xuan Hien, the carrier's President and Chief Executive Officer.
Attachment 4 is the original "Statement of Person Responsible for Preparing Vietnam Airlines' Financial Statements," a copy of which was previously provided as Exhibit 4 to Vietnam Airlines' exemption application.

One minor point of correction and clarification should be noted regarding the text and Exhibit 1 of Vietnam Airlines' application. Vietnam Airlines currently serves 19 major international cities, in addition to over a dozen destinations in Vietnam. It is not presently serving Beijing, the twentieth destination named in the application and exhibit.

Counsel: Hogan Hartson, George Carneal, 202.637.6546, gucarneal@hhlaw.com

Index

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

OST-00-7175	January 18, 2001	Re-Certification of US Airways Express Carriers	LaGuardia Regional Jet; LaGuardia- Ithaca, NY
		Exhibit A: LGA Air 21 Slot Schedule
		Service List

As set forth in the schedule attached hereto as Exhibit A, US Airways Express Carriers intend to operate all 20 Air-21 slots for service from LaGuardia to the following airports, each of which qualifies as a non-hub or small hub airport as determined under the FAA's Primary Airport Enplanement Activity Summary for Calendar Year 1997 (see 49 U.S.C. § 41714(h)(7) and 49 U.S.C. § 41714(h)(8)): Albany (NY), Burlington (VT), Charleston (SQ, Charlottesville (VA), Greenville/Spartanburg (SQ, Harrisburg (PA), Hyannis (MA), Ithaca (NY), Lebanon (NH), Manchester (NH), Martha's Vineyard (MA), Nantucket (MA), Norfolk (VA), Richmond (VA), and Syracuse (NY). These services will be operated with Stage 3 aircraft (Dash-8, ERJ- 145, Saab 340 or Beech 1900), all of which have a certified maximum seating capacity of less than 71 passengers.

Counsel: O'Melveny Myers, Joel Burton, 202.383.5300

Index

International Air Transport Association

OST-01-8371

January 18, 2001

Application for Approval of Agreements

PTC COMP 0751

By: David O'Connor

Index