Issued February 15, 2002
Notice of Action Taken© Copyright 2002 Airline Information Research, Inc. All rights reserved.
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OST Docket Filings for February 19, 2002 |
Last Updated 02/21/02 09:22 AM
Applications and Renewals:
American - Miami- Medellin | IATA | U.S.- Brazil Combination - Delta Temporary Allocation
Waiver of Dormancy Conditions - Notice of Evergreen International
Answers and Replies:
American - Reply to Continental/Delta (DFW-Tokyo) | American Eagle (2)- Reply to Baton Rouge/Confidential Treatment
CRS - Comments | IATA - Technical Correction
Markair Express - DOT-Statewide Aviation | Petition of Donald Pevsner -Answer of Southwest
Polynesian Limited - Amendment
TWA - Answers of Northwest/United (Codeshare with ANA)
Notices of Action Taken:
Air Jamaica - Jamaica-Ft. Lauderdale Renewal | Dutch Caribbean - US-Netherlands Antilles
Polynesian Limited - Emergency Exemption | U.S.- Ecuador/Gemini | Volga
Notices and Orders:
CCAIR - Prohibiting Termination of Service/Requesting Proposals | EAS - Program Wide - Authorizing Emergency EAS Payments
| OST-96-1286 | Filed January 28, 2002 Issued February 15, 2002 |
Notice of Action Taken |
Jamaica- Ft. Lauderdale, Florida |
Exemption from 49 U.S.C. § 41301 to engage in scheduled foreign air transportation of persons, property and mail between the coterminal points Kingston and Montego Bay, Jamaica, and the terminal point Fort Lauderdale, Florida.
By: Paul Gretch
All U.S. Air Carriers; Waiver of Dormancy Conditions on Limited Entry Route Authority
| OST-01-11065 | February 19, 2002 | Motion
for Leave to File Out of Time and Notice of Evergreen International
Airlines |
Waiver of Dormancy Conditions on Limited-Entry Route Authority |
| Service List |
hereby submits this motion for leave to file out of time
and notice identifying each limited-entry market subject to the Department's
blanket dormancy waiver set forth in Order 01-11-15 as to which Evergreen does
not intend to resume service as of April 1, 2002. Evergreen seeks leave to file
this notice one business day after the February 15, 2002 due date fixed in the
Department's order on the ground that it was unable, for unforeseen reasons, to
complete the required coordination with its counsel on February 15.
The markets as to which Evergreen submits this notice are
as follows:
Evergreen intends to seek a continued dormancy waiver for a
period of one year, through March 31, 2003, with respect to its operation of
one weekly flight between the United States and Thailand. Evergreen will
shortly file an appropriate application for a continued dormancy waiver in Docket
OST-01-8879.
Counsel: Steptoe Johnson, David Coburn, 202.429.8063
| OST-02-11366 | February 19, 2002 | Reply
of American Airlines to Answers of Continental Airlines and
Delta Air Lines |
Dallas/Ft. Worth- Tokyo |
| Service List |
American is seeking three U.S.-Japan frequencies from the
unallocated pool in order to add service between Dallas/Ft. Worth and Tokyo.
Continental and Delta have no objection to American's increased service, but
urge that the needed frequencies be funded not from the unallocated pool, but
from American's other U.S.-Japan frequencies that are now dormant.
American believes that the three frequencies it has
requested should come from the unallocated pool. Continental and Delta -- which
both hold a number of dormant U.S.-Japan frequencies themselves -- have
presented no plans of their own to expand service to Tokyo. Indeed, Delta has
greatly retrenched its presence in Japan, and currently operates only a single
daily flight (from Atlanta). Nonetheless, the two carriers say that American
should strip dormant frequencies from other routes and gateways rather secure an
award from the unallocated pool.
Counsel: American, Carl Nelson, 202.496.5647, carl_nelson@aa.com
| OST-02-11620 | February 19, 2002 | Application
for Exemption |
Miami- Medellin (Route 804) |
| Service List |
American Airlines, Inc., under 49 USC 40109, hereby applies for an exemption from the condition in its certificate for Route 804 (Miami -Medellin), issued by Order 2001-5-26, May 24, 2001, stating that service may commence no earlier than October 1, 2002. By this application, American seeks to accelerate the start-up date to June 1, 2002. The October 1, 2002 date was placed in American's certificate based on an understanding and amendments to the 1956 U.S.-Colombia Air Transport Agreement that entered into force through a November 27, 2000 Exchange of Notes between the two governments. Under the understanding and amendments, the authority awarded to American (including seven associated weekly frequencies) is available on October 1, 2002. See Notice, U.S.-Colombia Scheduled Combination Service Opportunities, OST-2001-8910, February 16, 2001.
Pursuant to a Diplomatic Note dated February 6, 2002, American understands that the Government of Colombia is now willing to allow service to commence on June 1, 2002. In these circumstances, the Department should grant an exemption authorizing the accelerated start-up date. Such an exemption is clearly in the public interest, as it will facilitate important new service for passengers and shippers at an earlier date, enhancing competition and conveniencing the public.
Counsel: American, Carl Nelson, 202.496.5647, carl_nelson@aa.com
| OST-95-569 | February 14, 2002 Docketed February 19, 2002 |
Motion for Confidential Treatment |
Form 41; Schedule B-7 |
Counsel: American, Carl Nelson, 202.496.5647, carl_nelson@aa.com
| OST-02-11462 | February 19, 2002 | Motion foe Leave to File and Reply to the Greater Baton
Rouge Airport District |
Chicago O'Hare- Baton Rouge |
| Service List |
American Eagle regrets that its service between O'Hare and Baton Rouge has not proven to be economically feasible. In its notice, American Eagle showed that for the year to date as of November 30, 2001, it lost $1.1 million on this route. In addition, as a result of the terrorist attacks on September 11, 2001, AMR Corporation, the owner of both American Airlines, Inc. and American Eagle, has reported unprecedented losses. In these circumstances, American Eagle should be authorized to terminate ORD-BTR service, effective April 6, 2002. Last week, by Order 2002-2-10, February 12, 2002, the Department authorized Spirit Airlines to terminate service between New York (LGA) and Melbourne, Florida, which Spirit had been operating with pre-AIR-21 exemption slots, despite opposition by the Melbourne Airport Authority.
Counsel: American, Carl Nelson, 202.496.5647, carl_nelson@aa.com
| Order 02-2-14 OST-02-11348 |
Issued February 15, 2002 Served February 22, 2002 |
Order
Prohibiting Termination of Service and Requesting Proposals |
Terminate Service Between Athens, Georgia and Charlotte, North Carolina |
| Appendixes: Map, Air Traffic |
The community's essential air service (EAS) determination, last reviewed by the Department in 1988 (Order 88-2-31), requires a minimum of two weekday round trips and two round trips each weekend period to Atlanta (nonstop) or Charlotte (nonstop or one stop). While the number of passengers using the Ben Epps Airport has been declining since 1997, during the five-year period from 1996 through 2000, an average of almost 25,000 (24,990) passengers used CCAIR's service each year. The Ben Epps Airport itself lies two miles east of downtown Athens. Atlanta-William B. Hartsfield International Airport, located approximately 78 highway miles to the southwest, is the closest large hub airport.
We request that any carriers interested in providing essential air service at Athens, with or without subsidy, file their proposals within 20 days of the service date of this order. We ask that carriers submit proposals for two or three round trips per day to either of its designated hubs of Atlanta or Charlotte with 15-seat or larger, pressurized aircraft. We will also entertain proposals to serve other hubs that provide access to the national air transportation system in order to give the Department and the communities as broad an array of proposals as possible from which to choose. Of course, as always, we will formally solicit the community's views on any service options we receive before making a long-term carrier selection decision. In order to assist carriers in making their traffic and revenue forecasts, we have included historical traffic data in Appendix B.
By: Read Van de Water
Computer Reservation System Regulations
| OST-97-2881 | February 19, 2002 | Comments of the Travel
Agents of America |
Computer Reservation System (CRS) |
By: Travel Agents of America, Lawton Roberts
| OST-01-10929 | Filed October 30, 2001 Issued February 15, 2002 |
Notice of Action Taken |
U.S.- Netherlands Antilles |
Exemption from 49 U.S.C. 41301 to conduct scheduled foreign air transportation of persons, property and mail from points behind the Netherlands Antilles, via the Netherlands Antilles and intermediate points, to points in the United States and beyond; and charters pursuant to 14 CFR 212 of the Department's regulations.
By: Paul Gretch
Essential Air Service - Program Wide
| Order 02-2-13 | Issued February 15, 2002 Served February 22, 2002 |
Order
Authorizing Emergency Essential Air Service Payments |
Essential Air Service - Program Wide |
| Appendix A - Calculations of Revised EAS Subsidy Rates | |||
| Appendix B - Calculations of Revised EAS Subsidy Rates | |||
| Appendix C - Stabilization Act Rates | |||
| Appendix D - List of Docket Numbers |
While the stabilization payments are an important element in efforts to restore the economic viability of the airline industry after the events of September 11, the commuter/regional sector of the industry faces certain unique challenges. Like most of the industry, these smaller carriers have been forced to deal with a precipitous rise in costs at the same time that they are confronted with a substantial drop in revenue. But, unlike the major airlines, they do not have the financial resources to help them maintain operations until traffic begins to stabilize. In addition, those carriers that participate in the EAS program do not have the same flexibility as non-EAS airlines to adjust their systems to reflect the shifts in costs, revenue, and traffic. Because they remain under contract with the Department to provide a prescribed level of service at EAS communities, they have very little ability to eliminate service on unprofitable routes, reduce frequencies, downsize aircraft, or contract out flight operations in order to reduce their losses.
By: Read Van de Water
| OST-95-363 | February 15, 2002 Docketed February 19, 2002 |
Correspondence
of U.S. DOT/OST to Statewide Aviation |
Termination at Atka Island & Umnak Island, Alaska |
| Appendix A - Average Passenger Fares |
By: Dennis De Vany
Petition for Rulemaking and Enforcement Proceeding Complaint of Donald Pevsner - Southwest Airlines and Other U.S. Carriers
| OST-02-11338 | February 15, 2002 | Answer
of Southwest Airlines |
One-Way Fare Discrimination |
| Attachment - Responses to Specific Allegations | |||
| Service List |
Southwest's policy toward ticket changes and cancellations is the most generous and consumer-friendly in the airline industry. It is ironic in the extreme that Mr. Pevsner would choose Southwest as the target of his enforcement complaint. Not only is Southwest the acknowledged champion of low-fare air travel, but it has by far the most generous and consumer-friendly policy toward ticketing and refunds among major U.S. airlines. Like all airlines, Southwest offers some fares (both one-way and round-trip) that are non-refundable; those non-refundable fares are typically at deeply-discounted levels below Southwest's everyday low fares. However, alone among major carriers, Southwest does not charge a "change fee" if the purchaser of a nonrefundable fare wishes to change his or her plans. Instead, Southwest allows such passenger to cancel all or a portion of a non-refundable ticket without penalty and to apply the full value of the unused portion toward future travel on Southwest within 12 months of the ticket purchase. Other carriers typically charge passengers holding non-refundable tickets a $100 fee per ticket for the privilege of changing their flights. The Southwest customer, on the other hand, loses no value when changing plans, even when traveling on deeply-discounted tickets.
It is only because Southwest has such a uniquely generous policy regarding canceled tickets that Mr. Pevsner is complaining. He claims that Southwest "disingenuously conceals" this policy from its customers, but the opposite is true. Southwest considers its policy toward canceled tickets to be a competitive advantage and therefore affirmately discloses it in its advertising and when bookings are made. For example, advertisements for non-refundable fares typically include the statement "fares are non-refundable but may be used toward future travel on Southwest Airlines."
By: Southwest Airlines., Robert Kneisley, 202.682.4534, bob.kneisley@wnco.com
| OST-02-11613 | Filed February 15, 2002 Issued February 15, 2002 |
Notice of Action Taken |
Pago Pago- Manu'a |
By: Paul Gretch
| OST-02-11613 | February 19, 2002 | Amendment to Application for Emergency Exemption |
Pago Pago- Manu'a |
| Service List |
Counsel: Squire Sanders, Charles Donley, 202.626.6840, cdonley@ssd.com
| OST-00-7089 | February 19, 2002 |  Answer
of Northwest Airlines
|
U.S.- Japan - Property and Mail Codeshare with ANA |
Northwest has no objection to U.S. carriers supplementing their own international operations by means of cooperative codeshare arrangements with foreign air carriers, including codesharing for the purpose of mail carriage. The carriage of mail via such cooperative codeshare arrangements generates additional revenues that help sustain and support the competitive position of U.S. flag carriers. Northwest, however, objects to American utilizing the otherwise dormant TW designator code solely to secure more than American's pro rata share of the U.S. mail traffic in a number of international markets, including routes between the U.S. and Japan. Northwest urges the Department to deny TW's requested renewal of U.S.-Japan exemption authority and direct American to cease and desist from using multiple U.S. carrier designator codes to manipulate the equitable tender of U.S. mail in all international markets.
Counsel: Northwest, Megan Rae Rosia, 202.842.3193, megan.rosia@nwa.com
| OST-00-7089 | February 19, 2002 | Answer
of United Air Lines |
U.S.- Japan - Property and Mail Codeshare with ANA |
| Service List |
American refuses to admit the obvious -- that using the "TW" code for international mail carriage enables it to hold out two separate operations on many city pairs and garner a larger share of the international mail tender than it would otherwise receive. Rather, American contends that its use of two codes is akin to Comair's use of its own code for mail carriage and the "DL" code for passenger operations, or Air Wisconsin's use of its own code for mail and the "UA" code for passenger operations.
American would have the Department wash its hands of this issue and require United and other U.S. carriers that are losing valuable mail revenues as a result of American's scheme to look to the USPS or elsewhere for help. But the Department, not the USPS, is responsible for granting American/TW the economic authority that is essential to continue this sham practice. The Department, not the USPS, also has the American uses the AA* code to obtain mail on flights operated by JAL.
Here, American wishes to pretend that TW is a separate and independent U.S. air carrier, entitled to its share of U.S. international mail revenues, when, in reality, the "TW" code lives on solely to divert international mail revenues from other U.S. carriers into American's coffers. This fraudulent practice undermines the profitability of other U.S. carriers and impairs their ability to fairly compete. The Department should not countenance American's scheme.
Counsel: Wilmer Cutler, Jeffery Manley, 202.663.8060, jmanley@wilmer.com
Volga-Dnepr J.S. Cargo Airline
| OST-02-11548 | Filed February 11, 2002 Issued February 15, 2002 |
Notice of Action Taken |
Denver- Cleveland |
By: Paul Gretch
U.S.-Brazil Combination Frequencies
| OST-02-11627 | February 19, 2002 | Application
of Delta Air Lines for a Temporary Allocation
|
U.S.-Brazil Combination Frequencies (Atlanta-Rio de Janeiro) |
Delta is requesting a continued temporary allocation of four unused Brazil frequencies to maintain daily service on the Atlanta-Rio de Janeiro route. According to April 2002 schedules, and the dormancy notices filed with the Department on February 15, 2002, Continental, American and United each have dormant and/or unused frequencies they do not intend to operate. All together, based on the information available to Delta, there appear to be 18 available Brazil frequencies for which there are no immediate service plans. See, Attachment A. Thus, there are more than sufficient frequencies available to fund a continued temporary allocation of four frequencies to Delta. The Department should grant Delta's allocation from an unspecified source, so that Delta's Atlanta-Rio de Janeiro services will not be subject to recall until the last frequencies are exhausted from among the many sources of dormant and/or unused frequencies.
The Department has a public interest obligation to preserve the highest possible levels of international air transportation service -- particularly on limited-entry routes such as U.S.-Brazil. In Order 2001-11-15, Department recognized "the importance of ensuring that services in restricted markets are available to consumers to the full extent possible." Moreover, in Order 2002-2-2, the Department stated that "sufficient frequencies should be available to facilitate continuation of Delta's daily service in the Atlanta-Rio de Janeiro market," and the Department established a February 15, 2002 notice and dormancy waiver request date, specifically so that "should frequencies remain dormant, Delta will be able to seek a timely extension of its frequency allocation."
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
U.S.- Ecuador All Cargo Frequency Allocations and Gemini Air Cargo, Inc.
| OST-00-7513 | Filed February 14, 2002 Issued February 15, 2002 |
Notice of Action Taken |
U.S.- Ecuador All-Cargo |
In view of the circumstances presented, we have decided to grant Gemini's latest request for an extension of the startup deadline. We continue to believe that the record supports a finding that Gemini is continuing its good faith effort to commence its scheduled operations from Ecuador. In these circumstances, we believe that extension of the startup deadline is warranted. We expect Gemini to continue to report to the Department on a weekly basis on its progress.
By: Paul Gretch
International Air Transport Association
| OST-02-11078 | February 19, 2002 | Application for
Approval of Agreements: Technical Correction |
PTC23 EUR-JK 0079 Corrects PTC23 EUR-JK 0074 |
By: David O'Connor
| OST-02-11618 | February 19, 2002 | Application for
Approval of Agreements |
PTC23 EUR-SEA 0135 |
By: David O'Connor
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