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OST Docket Filings for February 11, 2002

Last Updated 02/12/02 05:30 PM


 OST Docket Filings

Applications and Renewals: 

IATA (3) | Volga - Denver- Cleveland

Answers and Replies: 

Alaska Airlines - Service Letter | Cathay Pacific - Letter in Support | Compensation of Air Carriers - Comments

CRS - Comments | IATA - Technical Correction | Southern Winds - Answer of United

Sundance Air Venezuela - Reply U.S.- Ecuador - 23rd Interim Report

Notices of Action Taken:

None

Notices and Orders:

Cook v Northwest - Order

Essential Air Service - Reselecting Carrier | Express I - Show Cause | Great Lakes - Service Obligation

Form 41's:

Southwest


Alaska Airlines, Inc.

OST-02-11537 February 8, 2002 Re:  Service Letter L.A.- Vancouver, British Columbia and Calgary, Alberta Canada Codeshare with Lan Chile

I am writing to confirm that the following carriers have been served today via telecopier with Alaska's pending application for statement of authorization in Docket OST-2002-11537: Casino Express-Mark Atwood; Hawaiian Airlines-Jonathan Hill; Horizon Air-Stephen Alterman; Midwest Express-Robert Silverberg; Comair-Richard Taylor

Counsel:  Squire Sanders, Marshall Sinick, 202.626.6651, msinsick@ssd.com 

Index


Cathay Pacific Airways Limited

OST-95-940 February 8, 2002 Re: Ted Stevens Anchorage International Airport in Support for Cathay Pacific's Application Hong Kong- Anchorage/Chicago /New York All-Cargo Service; 

On behalf of Ted Stevens Anchorage International Airport, I would encourage approval of the Cathay Pacific Airways Limited's request for exemption to engage in scheduled foreign air transportation carrying property and mail between Hong Kong and Anchorage. Cathay Pacific's stopover in Anchorage currently is only a transit and refueling stop, however with this application, Cathay Pacific would begin using Anchorage as a hub to transfer cargo. Approval of this application thereby increases the profitability of the current route and offers Alaskan residents greater access to new destinations and global markets for Alaskan products. In this context, Cathay Pacific's renewal of exemption for service would expand consumer choice and significantly increase the convenience of cargo service between Alaska and Hong Kong while at the same time should result in greater access to markets, time definite services and competitive rates on this route.

By:  Ted Stevens Anchorage International Airport, Morton Plumb

Index


Computer Reservation System Regulations

OST-97-2881 February 8, 2002 Comments of Uniglobe VIP Travel Computer Reservation System (CRS) 

Travel agents cannot book these cheap fares and they are only available on the airline website or Orbitz. Anyone who is not Internet savvy will be forced to pay higher fares than those who are Internet savvy. This is not fair and maybe unconstitutional but certainly, there is restraint of trade. Many of my clients do not have Internet access (many are senior citizens) and they have no access to these fares. Since they choose to use us for their travel, they are further discriminated against since we don't have these fares.

By:  Uniglobe VIP Travel, Tom Beebe

Index


Essential Air Service at Brownwood, Texas; Enid/Ponca City, Oklahoma; and Harrison, Hot Springs, El Dorado/Camden, Jonesboro, Arkansas

Order 02-2-09
OST-97-2401
OST-97-2402
OST-97-2935
Issued February 11, 2002
Served February 14, 2002
Order Tentatively Reselecting Carrier and Establishing Subsidy Rate Essential Air Service at Brownwood, Texas; Enid/Ponca City, Oklahoma; and Harrison, Hot Springs, El Dorado/Camden, Jonesboro, Arkansas
        Appendices    
        Service List   

By this order, the Department is tentatively reselecting Big Sky Transportation Co., d/b/a Big Sky Airlines, to provide essential air service at the seven communities named above for the two-year period beginning December l, 2001, at annualized subsidy rates totaling $8,146,535 for the first 6 months of the period, through May 31, 2002, and $7,781,317 for the remaining 18 months, through November 30, 2003. The order also provides for objections or competing proposals from other interested carriers.

By:  Read Van de Water

Index


Express I, Inc. d/b/a Northwest Airlink

Order 02-2-08
OST-01-10685
Issued February 11, 2002
Served February 1, 2002
Order to Show Cause Termination of Service at Laurel/Hattiesburg, Mississippi

By this order we are directing Express Airlines I, (Express) to show cause why the Department should not dismiss its claim for hold-in subsidy at Laurel/Hattiesburg, Mississippi. The carrier has requested annual compensation of $2,222,783 for three nonstop round trips a day to Memphis with Saab 340 aircraft, the level of service we are requiring the carrier to provide.

We have concluded that the methodology used by Express to calculate subsidy is not appropriate. Given the fixed-fee basis under which Express serves this market, Northwest, not Express, is the party that would sustain losses if revenue generated to and from Laurel/Hattiesburg were inadequate. The proper basis for determining subsidy need in this circumstance is not Express's expenses of operating between Memphis and Laurel/Hattiesburg less a prorated portion of revenue for passengers traveling beyond Memphis on Northwest. Rather, the proper basis for calculating subsidy need for such service is the effect that Express's service to Laurel/Hattiesburg has on Northwest's network profits. A majority of passengers that Express carries between Memphis and Laurel/Hattiesburg travel beyond Memphis throughout Northwest's domestic and worldwide systems. Thus, whether or not Express earns a profit on the Memphis-Laurel/Hattiesburg segment does not dictate whether that service turns a profit for Northwest's system. Indeed, since the cost of operating a spoke segment to a network hub may include most costs of moving passengers from the spoke city to points throughout Northwest's system, it is not unlikely that a carrier will suffer losses on the spoke segment while earning profits overall due to the flow traffic and revenue that spoke generates for the network. Accordingly, we have tentatively determined to dismiss Express's subsidy claim for its hold­in service at Laurel/Hattiesburg.

By:  Read Van de Water

Index


Great Lakes Aviation, Ltd.

Order 02-2-07
OST-99-5712
Issued February 8, 2002
Served February 13, 2002
Order Extending Service Obligation 90-Day Notice to Terminate EAS Service at Oshkosh, WI

Order 2002-2-7 is extending Great Lakes' service obligation at Oshkosh, Wisconsin, for another 30 days, through March 18, 2002.  

By:  Read Van de Water

Index


Linda G. Cook and Emma P. Duggan vs. Northwest Airlines, Inc.

OST-01-10598 Served February 11, 2002 Order Discrimination Against any Otherwise Qualified Individual
    Service List  

The Enforcement Office states that it has carefully reviewed the pleadings filed in connection with the complaint of Mrs. Cook and Ms. Duggan, the additional complaint files received directly by the Department and provided by Northwest, as well as the carrier's response to these complaints, and the mitigating information it has supplied. The Enforcement Office further states that it views seriously the obligation of carriers to comply with the ACAA and 14 CFR Part 382, the Department's implementing regulation. It, therefore, continues to be the Enforcement Office's view that action is warranted here in light of the number and nature of the violations discovered and the harm to disabled travelers they have caused.

In order to avoid litigation, and without admitting or denying the alleged violations, Northwest has agreed to settle these matters with the Enforcement Office and enter into this consent order to cease and desist from future similar violations of the Department's rules prohibiting discrimination against air travelers with disabilities. By this order, the Department finds that Northwest has, on a number of occasions, failed to provide adequate wheelchair and other required assistance in violation of the ACAA and 14 CFR 382.39, and finds that the carrier has failed to comply with the dispositive response and CRO requirements of 14 CFR 382.65. The order, in addition, directs the carrier to cease and desist from similar violations in the future and assesses a civil penalty of $700,000, with certain offset and forgiveness provisions, in compromise of the penalties otherwise assessable under 49 U.S.C. 46301.

First, Northwest will establish an Air Carrier Access Act Compliance Quality Assurance Program. Under this Program, Northwest will seek, and to the extent necessary provide incentives for, volunteers from the pool of passengers with disabilities that utilize Northwest services on a regular basis to provide Northwest with written reports regarding observed compliance of the carrier with the Air Carrier Access Act and 14 CFR Part 382 on trips that they take. The reports will cover, among other things, compliance in the following areas: meet and assist services, check-in procedures, boarding and deplaning, on-board services (e.g., the provision of on-board wheelchairs where required), wheelchair assistance in terminals, on-board stowage of wheelchairs and complaint handling by the carrier. The program also will cover Northwest's procedures for internal review of the reports received, follow-up action to correct any deficiencies discovered and retest procedures to ensure effectiveness of implemented corrective steps. Northwest estimates that it will spend $50,000 toward implementation of this program within two years after the date this order becomes final.

Second, Northwest will increase its staffing expenditures for wheelchair service personnel at its hub airports in calendar year 2002 by $250,000 over what otherwise would be the normal level, i.e., the level that would have been established using the methodology used to establish the calendar year 2001 level.

Third, Northwest will order assist bars that will be installed in all of the lavatories on its new A-330 aircraft at a cost of at least $250,000. These assist bars will be in addition to the assist bars for the wheelchair accessible lavatory required for each aircraft by 14 CFR 382.21(a)(3). The assist bars will provide additional lavatory accessibility for passengers with disabilities.

The Deputy General Counsel believes, based on her review of the materials related to this matter, including third-party complaints, the informal complaints received by the Department, and the informal complaints received by Northwest, that further action by the Department is not warranted. Accordingly, this order dismisses the complaint filed by the Enforcement Office under 14 CFR 302.417(c). Although in the Deputy General Counsel's view Northwest's conduct as described in the formal complaints as well as in other documentation violated certain requirements of Part 382 and the ACAA, she believes that those violations are adequately addressed by the settlement reached in this case. 7 This settlement renders further action by the Department on this matter not to be in the public interest.

By:  Ronnie Yoder

Index


Procedures for Compensation of Air Carriers

OST-01-10885 February 11, 2002 Comments of Deaconess Billings Clinic Procedures for Compensation of Air Carriers

By:  Deaconess Billings Clinic, Christy Baxter,

Index


Southern Winds, S.A.

OST-02-11417
OST-02-11418
February 11, 2002 Answer of United Air Lines Exemption and Foreign Air Carrier Permit - Argentina-US
      Service List    

United does not object, in principle, to Southern Winds obtaining the permit and exemption authority necessary to exercise the rights provided for Argentine­flag carriers under the U.S.-Argentina bilateral agreement. Such authority, however, should not be granted until U.S. carriers are assured their ability to fully exercise their own bilateral rights, including those pertaining to revenue conversion and remittance of funds, are secure and unimpaired. As of December 1, 2001, U.S. carrier assets held in bank accounts in Argentina have been frozen. Although U.S. carriers' individual banks are permitted to remit funds upon authorization by the Central Bank of Argentina, U.S. carriers' repeated requests to repatriate these funds have gone unacknowledged by the Central Bank.

Although United is sensitive to the difficulties facing the Argentine economy, such pressures do not justify this clear infringement of U.S. carriers' bilateral rights. These unlawful restrictions seriously impair U.S. carriers' cash flow and threaten the viability of their U.S.-Argentina operations. Indeed, these unlawful restrictions threaten the very services that help support trade between the two countries during this economic crisis.

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

Index


Southwest Airlines Co.

OST-96-1640 February 8, 2002
Docketed February 11, 2002
Motion to Withhold Information from Public Disclosure Form 41; Schedule B-7
    Service List  

Counsel: Southwest, Donald Hood, 214.792.4049

Index


Sundance Air Venezuela S.A.

OST-02-11437 February 11, 2002 Reply of Sundance Air Venezuela to Answer of Arrow Air U.S.- Venezuela

Counsel:  Sundance Air, Bert Van Toornburg, 303.261.0293, toornburg@mindspring.com

Index


U.S.- Ecuador All Cargo Frequency Allocations

OST-00-7513 February 11, 2002 Twenty-Third Interim Report of Gemini Air Cargo:  Re Ecuadorian Licensing U.S.- Ecuador
    Service List  

Pursuant to the Notice of Action Taken in the above docket on January 31, 2002, Gemini Air Cargo, Inc., submits its weekly report regarding its progress toward obtaining authority from the Government of Ecuador to operate scheduled all-cargo service to Ecuador.

Gemini continues to wait for the General Directorate of Civil Aviation (DGAC) to issue Gemini the authorization required under Part 129 of Ecuadoran aviation regulations (or under a waiver from Part 129) for Gemini to start scheduled all-cargo flights to Ecuador. Although Gemini has continued to inquire about the reason for the delay, and to press for issuance of the Part 129 authority, the DGAC has not provided Gemini any reason for the delay. Investigations of recent aviation accidents in Ecuador have required a great deal of time from DGAC officials and may have delayed action on Gemini's application. In addition, the DGAC is closed because of holidays on February 11 and 12, 2002, temporarily delaying action. Since its last Interim Report on February 4, 2002, Gemini has operated eight charter flights to Ecuador.

Counsel:  Roller Bauer, Moffett Roller, 202.331.3300

Index


Volga-Dnepr J.S. Cargo Airline

OST-02-11548 February 11, 2002 Application for Emergency Exemption Denver- Cleveland
    Attachment:  Request for Flight  
    Service List  

The outsized cargo to be transported by Volga-Dnepr from Denver to Cleveland will consist of one Lockheed Martin Astronautics ("LMSS") Atlas V Payload Fairing in two Transport Container Trailers, with the combined weight of approximately 96,500 pounds.  Due to its extreme width, the cargo as described cannot be transported on any commercially available U.S. aircraft, and requires the use of the AN124-100 aircraft.

Volga-Dnepr will operate the flight on behalf of Lockheed Martin as part of an effort to provide urgently needed lift to reach Cleveland not later than the scheduled shipment date. Lockheed Martin is shipping the Launch Vehicle Fairings to Cleveland to be able to then transport them to the Plumbrook NASA facility for testing. This shipment needs to reach Plumbrook NASA facility on the set date to support the test window at NASA and subsequent initial launch capability planned for March 20, 2003 from Cape Canaveral, Florida. As a result, Lockheed Martin stands to loose millions of dollars if the shipment does not occur on time, while only the use of Volga-Dnepr's outsized aircraft can make it possible to perform the service in question within the set schedule.

Counsel:  Wicks Group, Glenn Wicks, 202.457.7790

Index


International Air Transport Association

OST-01-9323 February 8, 2002 Application for Approval of Agreements:  Technical Correction PTC2 ME-AFR Fares 0048 Corrects PTC2 ME-AFR Fares 0043

By:  David O'Connor

OST-02-11541 February 8, 2002 Application for Approval of Agreements PTC12 MEX-EUR 0046

By:  David O'Connor

OST-02-11542 February 8, 2002 Application for Approval of Agreements PTC12 NMS-ME 0158

By:  David O'Connor

OST-02-11543 February 8, 2002 Application for Approval of Agreements PTC3 0548

By:  David O'Connor

Index


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© Copyright 2002 Airline Information Research, Inc.   All rights reserved.