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Last Updated 02/12/01 10:36 AM

Applications and Renewals: 

Wendell Ford - Petition of Champlain Enterprises for Slots

Answers and Replies: 

Alaska Mail Rates - Answer of Alaska Central Express/Lynden | Brendan Air (2)- Request for Additional Information/Grant of Request 

Continental/COPA - Motion for Confidential Treatment | United vs. EC - United Waiver of Statutory Deadline

U.S.- Brazil - Answer of Evergreen | U.S.- Turkey - Correction of Delta

Notices of Action Taken:

Polynesian

Notices and Orders:

Aloha Airlines - Consent Order | Great Lakes - Show Cause

Aloha Airlines, Incorporated

Between October and December 2000, Aloha published and broadcast advertisements offering a $99 roundtrip fare from several Hawaiian cities to Las Vegas, that failed to meet the requirements of Part 399. Both the printed and broadcast advertisements in question begin with the statement "Soon Another Big Name Will be Appearing in Las Vegas. Aloha Airlines. Daily flights from Honolulu and Kahalui to Las Vegas. [Coming] Beginning February 14, 2001." In the broadcast version of the ad, the speaker simply says "Fly three segments between now and December 20, 2000, and receive a special $99 roundtrip fare to Las Vegas on Aloha Airlines." Subsequently, the words "$99 Roundtrip (Plus tax)" appear on the screen, superimposed on two playing cards. Neither taxes nor fees are mentioned verbally.

The printed advertisement states that AlohaPass members who fly three roundtrip inter-island flights on Aloha or Island Air between October and December 2000, would receive a "special $99 roundtrip fare" on Aloha Airlines to Las Vegas. (We refer in this order to such earned fares as a "certificate.") The small print at the bottom of the advertisement states: "Advance reservations required. Fare is plus taxes and subject to availability.

In mitigation, Aloha asserts that its policy has always been to provide complete and accurate information in advertising and to comply fully with all applicable laws and regulations. Aloha also states that its special Las Vegas fares were offered to its AlohaPass members to acquaint them with its new service from the Hawaiian Islands to Las Vegas, Nevada. Once the carrier learned that its advertised fares did not properly include the applicable taxes and fees, the carrier worked to correct the matter immediately. To this end, the carrier offered the fare without any additional taxes to all passengers who had already used their certificates to purchase tickets on the desired Las Vegas flights by the closing date of the promotion (December 20,2000). With regard to the AlohaPass members who later automatically received the special certificates after completing the three segments, Aloha sent additional information with the certificate, which explained to the prospective passenger that the fare would be $99 plus applicable taxes, and the nature and amount of those taxes. Aloha further states that it will endeavor to resolve any remaining concerns of its customers.

Aloha consents to the issuance of this order to cease and desist from future violations of 49 U.S.C. § 41712 and 14 CFR 399.84, and to the assessment of $20,000 in compromise of potential civil penalties. Of this total penalty amount, $10,000 shall be due and payable within 15 days of the issuance of this order. The remaining $10,000 shall be suspended for one year following issuance of this order, and then forgiven, unless Aloha violates this order's cease and desist provision within that one-year period, or fails to comply with the order's payment provisions, in which case the entire unpaid portion of the $10,000 penalty shall become due and payable immediately, and the carrier may be subject to further enforcement action.

By:  Rosalind Knapp

Index

Brendan Air, LLC

By:  Randall Bennett

Provide a description of the business nature of Apple West, Inc.

For Brendan Airways' proposed interstate scheduled passenger service, indicate the number of daily flights that the carrier intends to provide between Philadelphia and Las Vegas. For the applicant's proposed foreign scheduled passenger service, indicate the number of daily flights that it intends to provide between Philadelp hia and Aruba.

With respect to the summarized projected cash outflow in Exhibit BAL-604-1, (which I had requested); you indicate that this data summarizes the data set forth in Exhibit 604 contained in Brendan Airways' original applications. However, in light of the applicant's amended request for authority, am I to assume that the summarized data contains the new expenses associated with the applicant's amended request for interstate and foreign scheduled passenger service? If it does not, provide an updated forecast income statement for the first year that indicates, separately, the monthly or quarterly expenses for its proposed interstate and foreign scheduled service and its monthly or quarterly expenses for its proposed charter service. In addition, provide an updated summary of the applicant's projected cash outflow that includes all of its -new expenses for all of its proposed operations.

Provide a listing of Brendan Airways' key management personnel.

By:  Kathy Lusby Cooperstein

Index

Continental Airlines, Inc. and Compania Panamena de Aviacion, S.A.

Counsel:  Crowell Morning, Bruce Keiner, 202.624.2500, rbkeiner@cromor.com and Robins Kaplan, Charles Hunnicutt, 202.775.0725

Index

Great Lakes Aviation, Ltd.

By:  Susan McDermott

Index

Intra-Alaska Class Service Mail Rates

Alaska Central does not believe the USPS has made a persuasive case for reconsidering the Order because, as it argues, the DOT did not consult with the interested parties in advance of its issuance. The Order to Show Cause, Order 2000--8-14 was validly issued and the Postal Service responded to it. Moreover, the USPS position that it should have had an opportunity to first meet with the DOT and the carriers was, in fact, accommodated by the DOT but the Postal Service stated in its letter dated October 3, 2000 that it did not intend to participate in any DOT convened meeting. Consequently, Final Order 2000-11-9 properly dismissed the USPS objection as "moot." Alaska Central takes no position on the issue of the correct non-fuel line-haul costs for Lynden.

However, the DOT explained the step was necessary because the Postal Service had not only objected to the Show Cause Order but as well, raised several new issues the DOT would have to consider prior to issuing a Final Order. Therefore, in the interest of fairness to all parties--the carriers and the Postal Service, the Department announced its intention to make the final rates retroactive to October 1, 2000. Alaska Central shares the general concern of the Postal Service regarding the potentially disruptive effective of retroactive rate setting. However, in this case Alaska Central is of the view that the DOT has adequately explained its position for deviating from its general practice and the Postal Service had not presented any compelling arguments for overturning the DOT's reasoning. The Postal Service incorrectly describes the actions of the Department as arbitrary when in fact its actions were both explained and well grounded in Order 2000-9--27.

Counsel:  Silverberg Goldman, Robert Silverberg, 202.944.3300

We have no opinion regarding whether bush carriers should start using the T- 100 reporting system other than it seems logical to keep the source data consistent for both mainline and bush carriers. As a mainline carrier, we have adopted this system effective January 1, 200 1. We are breaking out our intra-Alaska scheduled volume from our other traffic in order to provide data that reflects our costs of operation that pertains specifically to the hauling of mail.

Bush carriers may be more inclined to want to sell their business, for whatever reason. If they had a share of the mail to actually sell, it would make their business much more valuable. All of this would require a change in the laws regarding equitable tender and carrier qualifications for mail entitlement. In effect the mail share becomes an "asset" for the carrier to sell, which has its own set of pitfalls. In order to do this, there would need to be some kind of "contract" with the USPS that guarantees a certain share of the mail, and that can be transferred to another carrier. It would also have the effect of a barrier to "entrance" into a market as long as existing carriers were unwilling to sell, or unwilling to sell to a carrier not currently serving a market. In other words, we would support some change in the law allowing "limited contracting" that would guarantee a departing carrier from a market the night to sell their share of the mail in that market. It would eventually provide a balance of capacity in that market.

Counsel:  Lynden Air Cargo, Michael Hart

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Polynesian Limited

Renew exemptions from 49 U.S.C. 41301 to conduct foreign air transportation of persons, property and mail between: (1) Apia, Samoa, and Pago Pago, American Samoa, and beyond to Rarotonga, Cook Islands, and Papeete, Tahiti (OST-95-791); (2) Apia and Honolulu, HI (OST-95-806); (3) Apia and Los Angeles, CA (OST-96-1687); and (4) Maota, Samoa, and Pago Pago (OST-98-3631)

By:  Paul Gretch

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United Air Lines, Inc. Against The European Commission and National Implementing Authorities

Although it is important to underscore the U.S. government's resolve to reach a satisfactory resolution of this matter that preserves U.S. carrier rights under existing bilateral aviation agreements, United continues to hope that the Commission may be willing to adopt a position that will accomplish that end. Accordingly, United respectfully requests that the Department extend the deadline for acting on United's complaint in this matter to June 4, 2001.

Counsel:  Wilmer Cutler, Jeffery Manley, 202.663.6670, jmanley@wilmer.com

Index

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

Counsel:  Champlain Enterprises, 

Index

U.S.-Brazil All-Cargo Frequencies and Designation

Counsel:  Steptoe Johnson, Benjamin Achenbach , 202.429.8063

Index

U.S.- Turkey Combination Service Third-Country Code-Share Opportunities 

Counsel:  Shaw Pittman, Robert Cohn, 202.663.8060

Index

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© Copyright 2001 Airline Information Research, Inc.   All rights reserved.