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OST Docket Filings for March 11, 2002

Last Updated 03/11/02 08:49 PM


 OST Docket Filings

Applications and Renewals: 

Airtours International - Registration of Trade Name | American and British Airways - Dismissal of Codeshare Application

Answers and Replies: 

Airline Delays - Comments | Caplan v Northwest - Answer of Northwest | Compensation of Air Carriers - Comments of NATA

CRS (2)- Comments | EAS at Show Low, AZ - Comments | EAS at Vernal/Cedar City, UT - Comments 

Express I (2)- Comments/EAS Proposal of Corporate Airlines | Mesaba - Response to EAS Proposals

Service Reductions - Trans States at Sioux City | Sky King - Letter Granting Extension of Time

Transatlantic/Transpacific Mail Rates - Letter Concerning Meeting | United/ACA - Letter form Sec Mineta

Notices of Action Taken:

Lan Peru | Volga

Notices and Orders:

American Eagle - Allowing Suspension of Service at Baton Rouge | EAS at Crescent City, California - Reselecting Carrier


Airtours International Airways Limited

OST-02- March 11, 2002 Application for Registration of Trade Name "My Travel Airways Ltd."

Airtours International Airways Limited applies, pursuant to Part 215 of the Department's regulations, for registration of the trade name "My Travel Airways Ltd."

Airtours is a flag carrier of the United Kingdom authorized by a foreign air carrier permit to engage in charter foreign air transportation between the United Kingdom and the United States and between the United States and points not in the UK or US, subject to certain conditions. (Order 94-8-34) Airtours plans to begin doing business as "My Travel Airways Ltd." on or about May 1, 2002. Airtours is not aware of any other carrier using this or a similar name. Airtours has previously filed with the Department OST form 4523 regarding the Montreal Agreement referred to in Part 215(b). Accordingly, Airtours requests that the Department issue a notice acknowledging this registration.

Counsel:  Zuckert Scoutt, Richard Mathias, 202.298.8660

Index


American Airlines, Inc. and British Airways Plc

OST-99-6507 March 11, 2002 Joint Motion to Dismiss Codeshare Application US-UK Reciprocal Codesharing
    Service List  

American Airlines, Inc. and British Airways Plc hereby jointly move to dismiss their application for codeshare authority, submitted in this docket on November 15, 1999, and reserving any and all rights resulting from the Department's failure to approve the application in a timely manner.

Counsel:  British Airways, Paul Jasinski, 713.397.4250 and American, Carl Nelson, 202.496.5647, carl.nelson@aa.com

Index


American Eagle Airlines, Inc.

Order 02-3-09
OST-02-11462
Issued March 11, 2002
Served Marc 11, 2002
Order Allowing Suspension of Service 45 Day Notice to Suspend Service Between Chicago O'Hare- Baton Rouge

We have decided to grant American Eagle's request to suspend service. As we have noted in recent orders,  the U.S. air carrier traffic and revenues have dropped sharply as a result of the September 11 events. As indicated in testimony leading up to the Stabilization Act and a study by the General Accounting Office (GAO), many air carriers suffered precipitous losses in traffic and revenue as consequences of the September 11 events.

Even before the events of September 11, American Eagle was reporting significant losses. Our review of American Eagle's system operating results for the year ended December 31, 2001, shows that during this period American Eagle reported operating and net losses in each quarter, and for the year the carrier reported a total operating loss of $249.5 million and a total net loss of $255.7 million.° American Eagle has also reported losses of $1.269 million for its O'Hare-Baton Rouge service for the year ended December 31, 2001, and, consistent with recent orders, we find this level of losses to be substantial. In this regard, we would not have required American Eagle to file additional financial information since the data for the year ended November 30, 2001, are close enough to the February 1, 2002, notice date to be considered current and relevant. The more current data simply reinforce the previously reported losses. Even Baton Rouge has not suggested that additional January 2002 data would reverse the reported O'Hare-Baton Rouge losses of the previous 11 months, only that an improving trend would be demonstrated. Finally, we do not find that Baton Rouge has demonstrated that American Eagle is seeking to terminate the O'Hare-Baton Rouge service based on a contractual arrangement between American Airlines and its pilots. Rather, we find that the American Eagle has demonstrated losses for its O'Hare-Baton Rouge service justifying grant of its request to terminate this service.

By:  Read Van de Water

Index


Categories of Airline Delays and Cancellations

OST-00-8164 March 11, 2002 Comments of City of Boston Environment Department Categories of Airline Delays and Cancellations

Given the significant and difficult changes in airport/airline security since the tragic events of September 11 , 2001, we suggest that a separate security-related category may be helpful. While we understand that the NAS category encompasses a number of operational eventualities, separating security-related delays from other operational events might aid the Department of Transportation (DOT) in determining the efficiency of new security procedures.

By:  City of Boston Environment Department, Antonia Pollak

Index


Computer Reservation System Regulations

OST-02-11577 March 8, 2002 Comments of Preferred Westwind Travel Extension of Computer Reservation System Rules

By:  Preferred Westwind Travel, Brenda Thomas

OST-02-11577 March 8, 2002 Comments of B & G Travel Extension of Computer Reservation System Rules

By:  B & G Travel, Linda Berry

Index


Essential Air Service at Crescent City, California

Order 02-3-08
OST-97-2649
Issued March 11, 2002
Served March 14, 2002 
Order Tentatively Reselecting Carrier Essential Air Service at Crescent City, California
    Attachments:  Map, EAS to be Provided   
    Service List  

We will tentatively reselect SkyWest to provide essential air service at Crescent City as detailed in Appendix C, for an additional two-year period. The level of service is the same as before and the level of subsidy is approximately the same.

In response to our inquiry SkyWest submitted and negotiated a renewal proposal for an additional two-year rate term. (See Appendix B to this order for a summary of the subsidy computation for SkyWest.) SkyWest's proposed service would be the same as the historical service level. It would provide a total of 18 one-stop round trips a week to either San Francisco or Sacramento. Historically, SkyWest has provided a daily nonstop to San Francisco and the remainder of the service to Sacramento over Eureka. This service pattern allows Crescent City passengers to disembark at Eureka and make connections on SkyWest to San Francisco or stay on the airplane and continue to Sacramento. Based on informal rate discussions held between the carrier and the Department staff, an annual subsidy rate of $333,717 was agreed upon.

As is our usual program practice, we will allow interested parties 20 days to object to our decision and/or to file competing proposals. If no timely objections or competing proposals are filed this order will automatically become final. We expect persons objecting to our tentative decision to support their objections with relevant and material facts. We will not entertain general, vague, or unsupported objections.

By:  Read Van de Water

Index


Essential Air Service at Show Low, Arizona

OST-98-4409 March 5, 2002
Docketed March 11, 2002
Comments of The City of Show Low EAS at Show Low, AZ

After much discussion of the aforementioned criteria, each Council member ranked the five applicant carriers and the results were tallied. The carriers were ranked as follows:

The two applicants ranked first and second were very close. Both Mesa Air Group and Arizona Express provided proposals that addressed the City's issues, but Mesa's ability to provide connectivity skewed the Council in its favor. I reiterate that it was a very difficult choice since every proposal promised substantial benefits to everyone involved. One of the City's concerns are the security requirements needed at the Show Low Municipal Airport to handle Part 121 operations, plus the anticipated changes to Part 139 operations. We realize that since the events of last September, air travel and security for the public are of paramount importance; however, we are also concerned about the potential fiscal impact to the City.

By:  City of Show Low, Gerry Whipple, 928.532.4000

Index


Essential Air Service at Vernal and Cedar City, Utah

OST-97-2706 March 1, 2002
Docketed March 11, 2002
Comments of Cedar City Regional Airport Essential Air Service at Vernal and Cedar City, Utah

In October of 2000, the Cedar City Regional Airport conducted a survey of Iron County residents with respect to air travel. The Southern Utah University Small Business Development Center and the University's business department collected, compiled, and analyzed the data. The first significant finding was that there are approximately 30,000 enplanements available to the airport each year. The airport actually does only 10,000 currently.

Further analysis indicated the leakage was due to two factors: the primary reason being the cheaper fares available elsewhere, or the "perception" that it was cheaper to fly from Las Vegas or Salt Lake City than from Cedar City. Much of this issue is being addressed by an aggressive city funded education and marketing campaign to prove to travelers that in most cases it is very cost effective to fly from Cedar City.

The second significant factor was schedule. The limited number of flights operating at Cedar City restrict the traveler's options for connections. Many people are driving to St. George or Las Vegas for the convenience of less layover time or the difficulty getting back to Cedar City when they need to. The survey recommends an additional round trip to recover these travelers. If Cedar City can just recover 50% of the leakage, it will have 20,000 enplanements per year.

Sky West indicates that at approximately 13,000 - 15,000 enplanements they would likely consider operating without the Essential Air Service Subsidy. That is our immediate goal. If the Department of Transportation were to reduce us to only two flights per day, all hope of additional enplanements would dissolve. Our enplanement numbers would surely drop dramatically.

By:  Cedar City Regional Airport, Gerald Sherratt,435.586.2950

Index


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

OST-00-7856 February 27, 2002
Docketed March 11, 2002
Proposal to Provide Essential Air Service of Corporate Airlines Terminate Air Service Northwest Alabama Regional Airport

By:  Corporate Airlines

OST-01-10685 March 5, 2002
Docketed March 11, 2002
Comments of Hattiesburg-Laurel Regional Airport Termination of Service at Laurel/Hattiesburg, Mississippi

A clear indication of the beginning of a passenger boardings rebound from the downturn caused by 9-11 is this February's performance. This month, traffic was up 29% over the same month last year. Considering that February is historically a slow month, if we project this same rate of increase for our peak month of July, we see that we could very well have 54 average daily passengers boardings which would require a 90 daily seat guarantee in order to prevent a "capacity cap" on our traffic.

Corporate Airlines: This airline has a superb reputation as a feeder for American Airlines at the St. Louis Hub. There are, however, some severe limitations to their operating a route from this region to the Memphis Hub. One of these is the capacity limitations just mentioned in Paragraph B.5 above. Another major problem currently is their lack of code sharing agreements with anyone beside American. Right now American only operates about 6% of the connecting flights in Memphis, so our travelers would have inadequate options for travel beyond Memphis. Since almost all of our passengers need to travel beyond Memphis, this is a clear disadvantage. To correct this situation, Corporate Airlines would have to establish a system wide code share agreement with Northwest that would allow a full spectrum of both domestic and international connections, as well as a baggage interline agreement with Northwest. In conclusion, for the reasons stated above, this community strongly recommends that the Northwest proposal for 3 or 2 daily flights (preferably 3) be selected.

By:  Hattiesburg-Laurel Regional Airport, Jim McNeil

Index


Louise M. Caplan v. Northwest Airlines, Inc.

OST-02-11674 March 11, 2002 Answer of Northwest Airlines Violation of 14 CFR Part 382
    Service List  

The Complaint alleges that a violation of Part 382 occurred on November 27, 2001. In Docket OST-01-10598, the Chief Administrative law Judge approved a settlement between Northwest and the Office of Aviation Enforcement and Proceedings (AEP) that includes all Part 382 violations of the type alleged in the Complaint committed or alleged to have been committed between January l, 1997 and March 10, 2002. AEP had conducted a substantial investigation into Northwest's compliance with Part 382. The penalties in the settlement are substantial, and the remedial measures that Northwest agrees to undertake are innovative and far ranging. Ms. Caplan's claims in this docket are precluded by that settlement. As the Department stated when it dismissed an earlier, similar complaint by Ms. Caplan (against Continental) on claim preclusion grounds, "we believe a new and separate investigation to reexamine essentially similar matters would raise issues of double jeopardy and fairness and would not be in the public interest." Order 00-7-4, at 2.

By:  Northwest, Frank Costello

Index


Lan Peru, S.A.

OST-02-11695 Filed February 25, 2002
Issued March 8, 2002
Notice of Action Taken Lima- Miami via Punta Cana, Dominican Republic

Exemption to serve Punta Cana, Domincan Republic, as an intermediate point on currently authorized Lima-Miami scheduled services.

By:  Paul Gretch

Index


Mesaba Aviation, Inc. d/b/a Mesaba Airlines

OST-01-10642 February 25, 2002
Docketed March 11, 2002
Response of City of Thief River Falls to EAS Proposal Submitted Notice of Intent to Terminate Service at Thief River Falls, MN

We have reviewed the two proposals submitted by Mesaba Airlines and Great Lakes Aviation's single proposal, which were submitted in response to your Department's Order issued on 31 December 2001. We have also had telephone conversations regarding the proposals with Northwest Airline's Director for State & Local Government Affairs, Bob Benner, who has acted as our contact with Mesaba, Great Lakes Senior Vice President of Marketing, Dick Fontaine, and the Minnesota Office of Aeronautics.

By this letter, the City of Thief River Falls wishes to strongly encourage you to negotiate a subsidy under the Essential Air Service Program (EAS) with Mesaba to provide service to the Regional Airport that would include, as a minimum, 3 daily round trips on weekdays to Minneapolis-St. Paul. We believe that the rationale for our request are clearly stated in detail under Items 4. and 5. in our formal Objection dated October 5, 2001, on file with your Department.

We would like to briefly comment on what the City feels are the critical issues in regard to the proposals. As explained in Items 5.a. and 5.b. in the Objection, Mesaba's proposal to provide 3 round trips each day is the level of service that best accommodates the traveling public and, in particular, the business traveler. It is the only proposal you have received that provides an opportunity to increase boardings to a level that would be profitable to the Airline and possibly eliminate the need for an EAS subsidy in the future. Again, we base this statement on the growth in boardings during the 5 years prior to the May 2000 reduction to 2 daily round trips and subject to the Airline being sensitive to the allotment of seats with intermediate stops, reasonable scheduling, and competitive pricing.

We have great concern about the Great Lakes Aviation proposal. Their proposal would provide only 2 round trips each day. While the flights would be direct with no intermediate stops, they are proposing to operate with Beech 1900D's, a 19 seat aircraft. For years Mesaba flew the 19 passenger Fairchild Metro II I's on its routes. These smaller aircraft were never well received by air travelers in the Region. All parties we have contacted agree that a reduction in level of service of this nature could negatively impact the number of boardings at the Regional Airport.  The other concern with Great Lakes' proposal is that it apparently involves no code-sharing with Northwest Airlines or any other major carrier. This results in an inconvenience to the traveler who will have to purchase tickets from at least 2 different airlines, if they are traveling beyond Minneapolis-St. Paul. Also, they would not receive frequent flyer miles for the Thief River Falls-Twin Cities leg of their flight.

By:  City of Thief River Falls, Mark Borsheim

Index


Procedures for Compensation of Air Carriers

OST-01-10885 January 16, 2002
Docketed March 11, 2002
Comments of NATA National Air Transportation Association Procedures for Compensation of Air Carriers

As a whole, the losses experienced as a direct result of the terrorist attacks of September 11, 2001, are not accurately reflected when using the Available Seat Mile (ASM) formula found in 14 CFR 330. This is because the on-demand air charter customer pays a fee for the use of the entire aircraft when chartering as opposed to the airline customer who pays for the use of a single seat.

By:  NATA National Air Transportation Association, Joseph Burnside

Index


Reports on Significant Airline Service Reductions

OST-01-10711 March 7, 2002
Docketed March 11, 2002
Notice of Trans States Airlines Reports on Significant Airline Service Reductions - Trans States Airlines at Sioux City, IA

Trans States Airlines/AmericanConnection® will discontinue nonstop service between Sioux City, IA. and St. Louis, MO. The last date of service will be March 21, 2002. Until that date, Trans States Airlines will operate 1 weekday round trip flight with reduced flight frequency on weekends.

By:  William Mishk

Index


Sky King, Inc.

OST-97-3017
OST-97-3113
February 21, 2002
Docketed March 11, 2002
Letter Granting Extension of Time Certificate of Public Convenience, Interstate and  Foreign

You have requested that your client Sky King, Inc., be granted additional relief from the dormancy provisions of 14 CFR 204.7 of our rules, so that its certificate authority (see Orders 98-3-26 and 98-4-14, issued March 26, 1998) would not be revoked. This request was necessary because Sky King was unable to complete its FAA Part 121 certification by the end of the last extension period (that is, by January 31, 2002).

We have reviewed Sky King's request, and, based on the information provided by Sky King and the FAA, have decided to grant this request. Therefore, we will grant Sky King until July 31, 2002, to complete the terms for receipt of effective certificate authority and commencement of actual flight operations under its certificates. However, given the length of time since complete fitness information was provided by Sky King to the Department, we ask that it submit complete, up-to-date information on its ownership, management, operating plans, financial condition, and compliance disposition at least 30 days in advance of any request to have the certificate authority at issue made effective.

By:  Patricia Thomas

Index


Transatlantic, Transpacific and Latin American Service Mail Rates Investigation

OST-96-1629
Docket 37392
February 27, 2002
Docketed March 11, 2002
Re:  Letter Informing Time and Place of Meeting Concerning Container Rates for Air Transportation of International Mail Transatlantic, Transpacific and Latin American Service Mail Rates Investigation

The meeting is designed to be an open forum for discussions among the parties. The USPS will open with their reasons on why a container rate for the Atlantic, Pacific, and Latin American Areas is needed. The USPS will also address concerns previously raised by air carriers. Prior to the meeting, air carrier representatives are encouraged to submit container-related topics they want addressed, in outline form without argument. Parties that cannot attend should consider designating a representative, or submitting concise views that will be noted and distributed to the group for consideration.

By:  Dennis DeVany

Index


United Air Lines, Inc. and Atlantic Coast Airlines 

OST-01-10680 February 20, 2002
Docketed March 11, 2002
Re:  Letter form Secretary Mineta Concerning Termination of Service Waiver of Notice and Early Termination of Service at Mobile, Alabama

By:  Norman Mineta

Index


Volga-Dnepr J.S. Cargo Airline

OST-02-11782 Filed March 6, 2002
Issued March 8, 2002
Notice of Action Taken Emergency Exemption; Denver- Cape Canaveral

Exemption to permit it to operate one one-way cargo charter flight between Denver, CO, and Cape Canaveral Air Force Station, FL, during the period March 1 l- 18,2002, using its AN- 124 aircraft, to transport outsized cargo consisting of an Atlas V Payload Fairing inside two transport containers on behalf of Lockheed Martin Astronautics. The applicant stated that Lockheed Martin required urgent delivery to complete an aggressive schedule that includes first flight article receipt and subsequent launch processing; that the cargo is too large for transportation on U.S. carrier aircraft; and that surface transportation is not feasible because of the time involved, the adverse effect a long road trip could have on the cargo, and the cargo’s size.

By:  Read Van de Water

Index


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