OST Filings for March 13, 2001

OST Docket Filings for March 13, 2001

Last Updated 03/14/01 11:20 AM

Applications and Renewals:

American - U.S.- India | Cargolux/Lufthansa - U.S.- Luxembourg/Frankfurt Renewal & Amendment | IATA

Answers and Replies:

American/Delta - Answer of United | American/TWA - Motion to Shorten Answer Period/Denial

Commutair - Request for Comments | Continental/COPA - Reply of Continental/COPA

EAS to Utica, Rutland - Withdraw of Proposal of Hyannis

Notices of Action Taken:

C.A.L. Cargo

Notices and Orders:

Alaska Mail Rates - Updating Fuel Costs | Florida Costal - Dismissing Application | Great Lakes - Extending Service Obligation

American Airlines, Inc.

OST-01-9167	March 13, 2001	Application for Exemption Authority and Third-Country Codesharing Designation	U.S.- India (Codeshare with Swissair and Sabena)
		Attachment: Proposed Service, Codeshare Compliance
		Service List

American will use this authority to display the "AA” designator code on (1) flights operated by Swissair between Zurich and India, connecting at Zurich to flights operated by American or Swissair between Zurich and the U.S., and (2) flights operated by Sabena between Brussels and India, con-necting at Brussels to flights operated by American or Sabena between Brussels and the U.S.

TWA and Royal Jordanian never implemented their proposed codesharing services to India, and that arrangement has been dormant for more than three years. Moreover, the entirety of the TWA/Royal Jordanian codeshare agreement will soon be terminated. On January 10, 2001, TWA filed for protec-tion in U.S. District Court in Delaware under Chapter 11 of the U.S. bankruptcy code. On the same date, AMR Corporation and American announced an agreement to purchase substantially all the assets of TWA, which will be integrated into American's operations. On February 28, 2001, American gave notice to the bankruptcy court that American will not accept an assignment of certain TWA contracts, among them the codeshare agreement between TWA and Royal Jordanian. In their joint route transfer application submitted on February 28, 2001 in OST-01-9027 (Exhibit 1), American and TWA did not include the TWA/Royal Jordanian codeshare among the route authorities to be transferred

Last year, by Order 2000-7-29, July 25, 2000, the Department dismissed a previous application by American (in OST-00-7537) to succeed to TWA's U.S.-India third-country codeshare authority, stating that withdrawal of TWA's designation was not warranted since TWA was continuing to seek foreign government approval. But with TWA's bankruptcy filing in January, and American's decision not to accept an assignment of the TWA/Royal Jordanian codeshare, it is now clear that TWA's pro-posal to codeshare to India with Royal Jordanian will never be implemented. Accordingly, the TWA designation should promptly be revoked in favor of American.

Counsel: American, Carl Nelson, 202.496.5647, carl_nelson@aa.com

Index

American Airlines, Inc. and Delta Air Lines, Inc.

OST-97-2336 OST-97-2338	March 13, 2001	Consolidated Answer of United Air Lines	Broad Route Integration Authority Exemption Renewal
		Service List

United joins American and Delta in believing that granting U.S. carriers the broadest possible route integration authority would serve the public interest, provided that it incorporates the Department's standard conditions concerning consistency with international agreements and the use of limited-entry rights. So long as the Department is willing to grant the same relief to all U.S. carriers requesting the authority, United supports the American and Delta applications. Accordingly, United requests that the Department amend United's route integration exemption sua sponte, to incorporate the same degree of flexibility afforded American and Delta.,

Eliminating the need for ad hoc amendments and renewal applications will reduce the administrative burden on the Department and assure U.S. carriers the ability to conduct their operations with the maximum flexibility permitted under U.S. international agreements. In recent years, route integration provisions and the conditions attached thereto have become standard Department practice. Because route integration authority is already conditioned on compliance with international agreements and specific procedures governing limited entry routes, there should be no impediment to the grant of uniform, open-ended integration authority covering all of a carrier's international operations., In view of the potential efficiency benefits, both for U.S. airlines and the Department, United submits that it would be appropriate for the Department to revisit its policy on this issue, and fashion a standard that promotes both ease of operations and efficiency in administration.

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

Index

American Airlines, Inc. TWA Airlines LLC and Trans World Airlines, Inc.

OST-01-9027

March 13, 2001

Denial of Motion to Shorten Answer Period

Transfer of Certificate

We have considered the Applicants' request and have decided not to shorten the answer period. We understand that the Bankruptcy Court decided on March 12 to accept American's bid for TWA. Were we to shorten the answer period as requested, interested parties would only have two days from that date to file answers to the application, which seeks the transfer of numerous international route authorities. Moreover, while we appreciate the Applicants' desire to proceed with the closing of the transaction and integration of TWA's operations into American as soon as possible, the application provides no specific information as to why either American's, TWA's or the public's interests will be substantially harmed by the additional seven days allowed under our normal answer period. However, should the applicants wish to request a reduction in the 14-day period for filing replies, we will give any such request careful consideration.

By: Randall Bennett

OST-01-9027	March 13, 2001	Joint Motion to Shorten the Reply Period to Seven Calendar Days	Transfer of Certificate
		Service List

The joint applicants are seeking to consummate their proposed transaction as rapidly as possible in the interest of maintaining TWA's operations for the benefit of the public, the communities served, and TWA's employees. On March 12, 2001, the Federal bankruptcy court in Delaware accepted American's bid for substantially all of TWA's assets. A final bankruptcy court hearing is scheduled for April 6, 2001. As soon as possible after that date, and assuming clearance by the Depart-ment of Justice, the joint applicants wish to be in a position to close. If the reply date extends until April 4, 2001, the Department's decision would be delayed, and consummation of the proposed transaction could also be delayed, potentially dis-rupting a seamless transition of operations from TWA to the acquiring entity.

Counsel: American, Carl Nelson, 202.496.5647, carl_nelson@aa.com

Index

C.A.L. Cargo Air Lines Ltd.

OST-01-9137

Filed March 12, 2001
Issued March 13, 2001

Notice of Action Taken

Tel Aviv and New York (JFK) via Liege, Belgium

Exemption from 49 U.S.C. 41301 to conduct scheduled foreign air transportation of property and mail between Tel Aviv, Israel, via the intermediate point Liege, Belgium, and New York, NY.

By: Paul Gretch

Index

Cargolux Airlines International, S.A. and Lufthansa German Airlines/ Lufthansa Cargo

OST-01-9162	March 13, 2001	Joint Application to Amend and Renew Statements of Authorization	U.S.- Luxembourg/Frankfurt
		Service List

Currently, Cargolux and Lufthansa possess authority to provide blocked space/code share services over a number of Luxembourg/Frankfurt-Shannon--Detroit-Los Angeles/San Francisco routings. In order to maximize operating flexibility, Cargolux and Lufthansa hereby request blanket authority, for an indefinite period in accordance with Department policy, to provide blocked space/code share service which corresponds to their underlying permit and exemption authority. Specifically:

(1) Cargolux requests a statement of authorization to block space and carry Lufthansa's code on its cargo services from points behind Luxembourg via Luxembourg and intermediate points to a point or points in the United States and beyond;and
(2) Lufthansa requests a statement of authorization to block space and carry Cargolux's code on its cargo services from points behind Germany via Germany and intermediate points to a point or points in the United States and beyond.

On March 25, 2001, Cargolux and Lufthansa will start new blocked space/code share service over San Francisco-Portland - Luxembourg, San Francisco-Shannon-Luxembourg, San Francisco- Luxem bo u rg, and Los Angel es- Shannon-Frankfurt routings.

Under the terms of the Cargolux/Lufthansa blocked space/code share arrangements, Cargolux will operate freighter service between San Francisco, Shannon and Luxembourg; between San Francisco and Luxembourg; and between San Francisco, Portland and Luxembourg using its B-747-400 freighter equipment. Lufthansa provides its own service between Frankfurt and Luxembourg and blocks space/code shares on the Cargolux freighters. Lufthansa will operate freighter service between Los Angeles, Shannon and Frankfurt using its B-747-400 freighter equipment. Cargolux provides its own service between Luxembourg and Frankfurt and blocks space/code shares on the Lufthansa freighters. Cargolux freight moves on Cargolux documentation, using the CV code and Lufthansa freight moves on Lufthansa documentation, using the LH code. Each carrier markets and sells its space independently under its own designator code and is responsible for acceptance and delivery of its own cargo. Each carrier establishes its own rates independently and assumes the commercial risk for its agreed upon portion of each aircraft.

Counsel: Stephan Lachter, 202.862.4321, lachter@starpower.net and Wilmer Cutler, Karan Bhatia, 202.663.6000, kbhatia@wilmer.com

Index

Commutair

OST-00-7556

March 13, 2001

Request for Comments

Termination of Service at Oneida County Airport

By: Dennis DeVany

Index

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

OST-00-8577	March 13, 2001	Joint Reply of Continental and COPA	Approval of and Antitrust Immunity for Alliance Agreement
		Service List

Continental and COPA submitted the documents normally required by the Department on December 23, 2000, and the Department concluded on February 6, 2001, that the Continental/COPA submissions were virtually complete. Continental and COPA completed their submissions three days later by providing a complete copy of their Alliance Agreement, which had been provided in redacted form almost three years previously. In sharp contrast, the Department requested additional documents from American and the TACA Group on July 7, 2000, but they did not comply until February 28, 2001, the eve of the date answers to the Continental/COPA application were due, in an apparent attempt to delay action on the Continental/COPA application. The tardy submission of voluminous documents by American and the TACA Group will of necessity delay action on their application, but it should not delay action on the Continental/COPA application, for which documents were submitted on a timely basis. The Department has not even established procedural dates for further consideration of the American/TACA Group application. As American and the TACA Group concede, the Continental/COPA procedural schedule has been completed. Moreover, the American/TACA Group request for antitrust immunity, removal of the Miami-Central America blocked-space condition on their current codeshare arrangement and new blanket codeshare authority raises controversial issues already addressed by other parties who will require time to consider the documents only recently submitted by American and the TACA Group.

Under these divergent circumstances, the Department should proceed immediately to approve the Continental/COPA application for antitrust immunity since the application is complete, non-controversial and unopposed. The Department should consider the American/TACA Group on its own separate track and its own merits. Continental and COPA require antitrust immunity for their end-to-end alliance to compete effectively with American and the TACA Group today, whether the antitrust immunity American and the TACA Group seek is granted or not.

Counsel: Continental and Crowell Moring, Bruce Keiner

Index

Essential Air Serivce to Utica, NY and Rutland, VT; Augusta/Waterville, Bar Harbor, and Rockland, Maine, and Rutland, Vermont

OST-00-7556
OST-97-2784

March 13, 2001

Letter of Hyannis Air Service, Inc. d/b/a Cape Air Withdrawing its Proposal for EAS

EAS at Augusta/Waterville, Bar Harbor, Rockland, Maine; Keene, New Hampshire and Oneida County Airport

Counsel: Cape Air/Nantucket Airlines, Scott LaForge

Index

Florida Coastal Airlines, Inc.

Order 01-3-12
OST-00-7803

Issued March 13, 2001
Served March 16, 2001