Motion for Leave to
Withdraw Application© Copyright 2001 Airline Information Research, Inc. All rights reserved.
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OST Docket Filings for March 2, 2001 |
Last Updated 03/05/01 01:50 PM
Applications and Renewals:
U.S.- Columbia (2)- American/Continental | Valenciana - U.S.- Mexico Taxi Renewal
Answers and Replies:
Alaska Mail Rates (2)- Comments | American - Withdraw of Application | AVIANCA - Withdraw of Application
Continental/Continental Express/Czech - Termination of Codeshare | Continental/COPA - Joint Answer of AA/TACA
EAS at Cape Yakatage/Icy Bay, Alaska - Proposal | IATA- Correction | Santa Barbara -Answer of Aeropostal
Notices of Action Taken:
Alaska | American | China/Vietnam - Department Action | Delta | Delta/El Al | Japan Asia | Taino | United | Vietnam
Notices and Orders:
IATA | United/Air New Zealand - Show Cause - Antitrust Immunity
Aerovias Nacionales de Colombia, S. A
| OST-97-2083 | March 2, 2001 | Motion for Leave to
Withdraw Application |
U.S.- Columbia |
| Service List |
Counsel: Squire Sanders, Robert Papkin, 202.626.6601, rpapkin@ssd.com
| OST-01-8988 | Filed February 26, 2001 Issued March 2, 2001 |
Notice
of Action Taken |
U.S.- Mexico |
By: Paul Gretch
| OST-97-2081 | March 2, 2001 | Motion for Leave to Withdraw Application |
U.S.- Columbia and Route Integration |
| Service List |
Counsel: American, Carl Nelson, 202.496.5647, carl_nelson@aa.com
| OST-00-7734 | Filed August 2, 2000 Amended August 28, 2000 Issued March 2, 2001 |
Notice
of Action Taken |
U.S.- Cyprus Codeshare with Swissair |
By: Paul Gretch
China Airlines, Ltd. and Vietnam Airlines
| OST-00-8347 | Filed November 16, 2000 Date of Action March 2, 2001 |
Department Action on Application |
U.S.- Vietnam Codeshare Service |
By: Gordon Bingham
Continental Airlines, Inc. and Compania Panamena de Aviacion, S.A.
| OST-00-8577 | March 2, 2001 | Joint Answer of American Airlines and the TACA
Group in Response to Order 01-2-5 |
Antitrust Immunity |
| Service List |
The Continental/COPA application should be processed and granted on a parallel track with the American/TACA Group application for antitrust immunity submitted on March 17, 2000 in OST-00-7088. On February 28, 2001, American and the TACA Group submitted all information that the Department has required in OST-00-7088, and the American/TACA Group application is ripe for an immediate order establishing procedural dates.
The Continental and COPA market share between the U.S. and Central America has grown significantly, from 23% in 1998 to 26% in 2000 (CRS passenger bookings). This three-point growth rate has come largely at the expense of American and TACA, which experienced a decline in U.S.-Central America market share from 62% to 56% over the same period.
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@aa.com and Squire Sanders, Robert Papkin, 202.626.6601, rpapkin@ssd.com
Continental Airlines, Inc., Continental Express, Inc. and Czech Airlines
| OST-95-979 OST-99-5286 |
March 2, 2001 | Notification of Termination of Codeshare Operations |
New U.S.-Russia Opportunities |
Counsel: Crowell Moring, Bruce Kiener, 202.624.2500 and Constance O'Keefe, 202.775.0680
| OST-99-5391 | Filed February 2, 2001 Issued March 2, 2001 |
Notice
of Action Taken |
United States- United Kingdom |
By: Paul Gretch
Delta Air Lines, Inc. and El Al Israel Airlines Ltd
| OST-01-8772 | Filed January 24, 2001 Issued March 2, 2001 |
Notice
of Action Taken |
U.S.- Israel Codesharing |
By: Paul Gretch
Essential Air Service at Cape Yakataga and Icy Bay, Alaska
| OST-96-2009 | March 2, 2001 | Proposal of Cordova Air Service |
Essential Air Service at Cape Yakataga and Icy Bay, Alaska |
Counsel: Cordova Air Service, Davis Erbey
Intra-Alaska Class Service Mail Rates
| OST-95-405 | March 2, 2001 | Comments of Tanana Air Service |
Order to Show Cause Establishing Final Bush Service Mail Rates |
By: Tanana Air, Fred Ciarlo
| OST-95-405 | March 2, 2001 | Comments of Hageland
Aviation Services |
Order to Show Cause Establishing Final Bush Service Mail Rates |
By: Hageland Aviation Services, Michael Hageland
| OST-99-5111 | Filed February 12, 2001 Issued March 2, 2001 |
Notice
of Action Taken |
Nagoya- Guam/Saipan |
Exemption to engage in scheduled foreign air transportation of persons, property and mail between Nagoya, Japan, and Guam and Saipan.
By: Paul Gretch
La Valenciana Taxi Aereo, S.A. de C.V.
| OST-96-1681 | March 2, 2001 | Application for Renewal of Exemption |
U.S.- Mexico |
Counsel: Julio Gonzalez Santos, 011.52.8.319.7785
| OST-00-8448 | March 2, 2001 | Answer of Aeropostal
Alas de Venezulela |
U.S.- Venezuela |
| Service List |
To the best of Aeropostal knowledge, the U.S.-Venezuela Air Transportation Agreement does not include Fort Lauderdale, FL, as an authorized U.S. point for the duly licensed and designated carriers of Venezuela. However, to the extent that the Department were to grant Santa Barbara the authority to operate to Fort Lauderdale, FL, on an extra-bilateral or any other basis, Aeropostal would also request that it be granted the same extra-bilateral. authority, since it has been interested in operating scheduled services to Fort Lauderdale for some time now.
Counsel: Pierre Murphy, 202.872.1679, pmurphy@lopmurphy.com
| OST-01-8905 | Filed February 13, 2001 Issued March 2, 2001 |
Notice
of Action Taken |
U.S.- Dominican Republic |
By: Paul Gretch
| OST-97-2126 | Filed February 2, 2001 Issued March 2, 2001 |
Notice
of Action Taken |
Certificates of Public Convenience and Necessity |
By: Paul Gretch
United Air Lines, Inc. and Air New Zealand Limited
| Order 01-3-4 OST-99-6680 |
Issued March 2, 2001 Served March 2, 2001 |
Order to Show Cause |
Approval of and Antitrust Immunity for Alliance Agreements |
| Attachment: Conditions Governing Anti-Trust Agreement |
We tentatively fmd that approving and granting antitrust immunity to the proposed Alliance Agreement is in the public interest, as limited and conditioned. If made final, we will require -the Joint Applicants (1) to withdraw from all IATA tariff conference activities relating to through prices between the United States and New Zealand, as well as between the United States and the homeland(s) of foreign airlines participating with U.S. airlines in other immunized alliances; (2) to file all subsidiary and subsequent agreement(s) with the Department for prior appro vial; and (3) to resubmit for review their Alliance Agreement within five years of the issuance of a final decision in this case. We also tentatively fmd it in the public interest to direct Air New Zealand to report full-itinerary O&D Survey data for all passenger itineraries that contain a point in the United States (similar to the O&D data already reported by United Air Lines).
As for the Los Angeles-Sydney market, at least in the short-term, our tentative actions will reduce the number of competitors from three to two. However, as discussed below, our evaluation of the U.S.-Australia market tentatively indicates that the likelihood of potential entry from Los Angeles could provide competitive discipline for the partners' operations, if they should provide inadequate service or supra-competitive prices, except as to certain time-sensitive passengers.
In terms of passengers transported, ANZ's U.S.-South Pacific nonstop passenger market share was 25.8 percent. The alliance (including United, at 22.3 percent) would have a market share of 48.1 percent. United is the largest U.S.-flag airline in the U.S.-South Pacific market, and third overall. In contrast, Qantas and its oneworld partners (including American) had a 30.2 percent passenger market share; Continental Micronesia had a 7.3 percent market share; and Air Pacific had a 4.9 percent market share. Moreover, we note that other U.S. and third-country airlines offered nonstop service in the market; they had a combined market share of 9.4 percent. We therefore tentatively find that the U.S.-South Pacific market is competitive in terms of service, and that the alliance if immunized, would not substantially reduce this competition.
Another competitive issue concerns ownership interests that the Joint Applicants may have in competing CRSs. United and Air New Zealand have ownership and/or marketing ties with Galileo and Sabre, competing CRS firms. As with the Delta Air Lines - -Austrian-Sabena-Swissair (see Order 96-5-26 at 31-32) and the Northwest-KLM (see Order 92-11-27 at 16) arrangements, the proposed integration of marketing operations of the Joint Applicants presents a risk that CRS competition may be reduced. In view of these factors, we tentatively find that any grant of antitrust immunity for the Alliance Agreement should exclude the carriers' CRS interests and operations.
By: Susan McDermott
| OST-00-8562 | Filed December 19, 2000 Issued March 2, 2001 |
Notice of Action Taken |
Hanoi/Ho Chi Min City- Los Angeles/San Francisco via Taipei |
Exemption from 49 U.S.C. § 41301 to engage in scheduled foreign air transportation of persons, property and mail between Hanoi and Ho Chi Minh City, Vietnam, on the one hand, and Los Angeles and San Francisco, California; via Taipei, Taiwan, on the other hand. Vietnam Airlines would conduct these services on a code-share basis with China Airlines, Ltd.
With respect to the concerns raised by Delta and United, we are actively processing the U.S. -Vietnam Third-Country Codeshare Proceeding (Docket OST-2000-7194) to authorize selected U.S. carriers (and their code-share partners) to conduct code-share services in the U.S.-Vietnam market. In the meantime, however, we find that it is consistent with the public interest to grant the authority requested by Vietnam Airlines, which is provided for under the MOD.
By: Paul Gretch
U.S.- Colombia Scheduled Combination Service Opportunities
| OST-01-8910 | March 2, 2001 | Application of American Airlines for a Certificate
of Public Convenience and Necessity and Allocation of Seven Weekly
Frequencies |
Miami- Medellin |
| Exhibits: Proposed Service | |||
| Service List |
American proposes to initiate, on October 1, 2002, and to operate on a year-round basis, daily nonstop service between Miami and Medellin, with 176-seat B757-200 aircraft. American began operations to Colombia in 1990 as the successor to Eastern Air Lines, following the American/ Eastern Route Transfer, Order 90-5-3, May 1, 1990. American has a well-established presence in the U.S.-Colombia market, with service to Bogota, Cali, and Barranquilla.
Counsel: American, Carl Nelson, 202.496.5647, carl_nelson@aa.com
| OST-01-8910 | March 2, 2001 |  Application
of Continental Airlines for a Certificate of Public Convenience
and Necessity and Frequency Allocation |
U.S.- Columbia Combination Service |
Granting Continental’s application for authority to institute New York/Newark-Cali/Medellin service will provide extremely important public benefits and best utilize the important opportunity to allocate the seven U.S.-Colombia frequencies which become available to a U.S. carrier October 1, 2001. Thanks to the Department’s efforts, the U.S.-Colombia agreement now provides the opportunity for Continental to offer service between New York/Newark and both Cali and Medellin, Colombia to compete with service by American Airlines and foreign-flag carriers between the U.S. and Colombian points other than Bogotá and to supplement Continental’s New York/Newark and Houston-Bogota service. Continental proposes to institute daily nonstop roundtrip New York/Newark-Cali service on October 1, 2001, and to expand the service to include Medellin, Colombia on October 1, 2002. Continental intends to use B-737-700 or other suitable aircraft in its fleet or on order to institute its proposed New York/Newark-Cali and Medellin service.
Counsel: Crowell Moring, Bruce Kiener, 202.624.2500
International Air Transport Association
| Order 01-302 OST-00-8067 |
Issued March 1, 2001 Served March 6, 2001 |
Order |
CTC COMP 0288 |
| Attachment: Projected Freight Operations |
Those economic justifications, from American Airlines, Delta Air Lines, Federal Express and United Airlines, included forecasts of freight revenue and earnings under existing rates, for the two years ending February 28, 2002 for each of the operating divisions (Atlantic, Pacific and Latin America). Although these forecasts were prepared as justification for an earlier IATA agreement, they remain relevant for evaluating the agreement before us now. The rate increase proposed in the agreement involves only the Atlantic area. As detailed in the Attachment, all of the U.S. carriers project operating losses and negative returns on investment in their Atlantic freight operations under existing rate levels. The proposed rate increases affect very little traffic to/from the U.S. and will have a de minimus effect on U.S. carrier earnings.
By: Susan McDermott
| OST-01-8838 | March 2, 2001 | Application for Approval of Agreements- Technical
Correction |
PTC3 Fares 0145 |
By: David O'Connor
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© Copyright 2001 Airline Information Research, Inc. All rights reserved.