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Last Updated 01/06/03 06:40 PM

Applications and Renewals: 

ABSA - Miami-Sao Paulo/Manaus Charter Cargo Renewal

Amerijet - US-Turks and Caicos Cargo Renewal

IATA - Application for Approval of Agreements

Answers and Replies: 

Aeromexico - Designation of Agent of Service

Aeromexpress - Designation of Agent of Service

American and British Airways - 88 US Representatives Letter in Support

Cathay Pacific - Designation of Agent of Service

DCA Slot Proceedings - Correspondence / Consolidated Answers

Hong Kong Fifth-Freedom - Answer of Polar

TNT - Designation of Agent of Service

Notices of Action Taken:

Aer Lingus - Dublin - Shannon - Baltimore Renewal

Estrella- Mexican Taxi Renewal

Northwest - Newark-Santiago, Dominican Republic Codeshare w/ Continental Renewal

Thai Air - Bangkok-Seoul-Los Angeles / Bangkok-New York/Washington Renewal

Notices and Orders:

EAS at Adak, AK - Order Selecting Carrier

London Air Service - Consent Order

IATA - Notices of Approval of Agreements

Aerolineas Brasileiras, S.A.

Continue to conduct scheduled and charter all-cargo services between any point or points in Brazil and the U.S. coterminal points New York/ Atlanta/ Miami/ Orlando/ Detroit/ Houston/ Chicago/ Los Angeles/ Washington, D.C./ Baltimore/ San Francisco/ Boston/ San Juan, via intermediate points.

Counsel: Celestino Pena, 305 856-5655

Index

Aer Lingus Limited

Amend Statement of Authorization last granted November 14, 2002, to permit Aer Lingus to display American Airlines' code on Aer Lingus flights between Baltimore-Shannon/Dublin

By: Barbara Schools

Index

Aeromexpress, S.A. de C.V.

Counsel: Piper Rudnick, William Evans, 202 371-6000

Index

Aerovias de Mexico, S.A. de C.V.

Counsel: Piper Rudnick, William Evans, 202 371-6000

Index

American Airlines, Inc. and British Airways Plc

We are enclosing a letter to Secretary Mineta signed by 88 United States Representatives in support of the Ameri­can/British Airways codeshare application. We request that this letter be placed in the captioned docket.

Counsel:  American, Carl Nelson, 202-496-5647

Index

Amerijet International, Inc.

Submits this application for renewal of an exemption from 49 U.S.C. § 41101 to the extent necessary to permit it to provide scheduled all-cargo service between Miami and Fort Lauderdale, on the one hand, and the Turks and Caicos Islands, on the other.

Amerijet has not yet instituted scheduled air service in the market. However, it intends to seek the appropriate approval from the Department of Transport in London and the Department of Civil Aviation in the Turks and Caicos as soon as market conditions warrant. Amerijet intends to operate one or two round-trip flights each week, increasing as market conditions dictate, using a Boeing 727-200 aircraft presently in Amerijet's fleet or other aircraft Amerijet has or may acquire in the future.

Counsel: Crispin Brenner, John Richardson, 202 371-2258

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Cathay Pacific Airways Limited

Counsel: Piper Rudnick, William Evans, 202 371-6000

Index

Economic Enforcement Consent Orders - 2003 / London Air Service Limited

Order 2003-1-9, the Department (1) approves the settlement and the provisions of this order as being in the public interest (2) finds that London Air Service Limited, violated 49 U.S.C. Sections 41301 by commencing air service to and from the United States prior to obtaining appropriate authority from the Department (3) finds that London Air Services Limited, violated 49 U.S.C. Section 41301 and 41703 by holding out and performing air transportation for compensation or hire between points entirely within the United States (4) finds that, by engaging in the conduct and violations in paragraphs 2 and 3, London Air Services Limited, engaged in an unfair and deceptive practice and unfair method of competition in violation of 49 U.S.C. Section 41712, and; (5) London Air Services Limited, and all other entities owned and controlled by, or under common ownership and control with London Air Services Limited, and their successors and assignees, are ordered to cease and desist from future violations of 49 U.S.C. Sections 41301, 41703, and 41712.

By: Samuel Podberesky

Index

Essential Air Service at Adak, Alaska

We have decided to select Alaska Airlines. The proposals of Jetstream and Evergreen lack community support and require similar or more subsidy than the other applicants, and so can be readily rejected. However, the decision between Peninsula and Alaska Airlines requires us to consider conflicting carrier-selection criteria: Peninsula requires significantly less subsidy than Alaska Airlines, ranging from $749,095 to $1,247,547 less, depending on which option were selected. On the other hand, Alaska Airlines is strongly favored by the community. In non­Alaska communities, the Department would nearly always select the lower-cost alternative when the subsidy differences are this great. Also, two of Peninsula's options would provide service with cabin-class Saab 340 aircraft, equipment larger than most subsidized communities receive, and all of Peninsula's options would provide more frequent service than Alaska Airlines contemplates.

Given the very substantial level of subsidy required to support this service, if traffic does not respond or the level of subsidy support needed does not decline, we will review the issue towards the end of the one-year contract period.

By: Read Van de Water

Index

2002/2003 Hong Kong Fifth-Freedom All-Cargo Frequency Proceeding

Polar joins with the other applicants in seeking to reach a settlement of the issues in this proceeding without recourse to a carrier selection case. Such a result would benefit the applicants as well as DOT staff by avoiding the expanse and delay of such a proceeding. Moreover, any settlement proposed by the applicants would be subject to DOT approval, assuring that the settlement will be consistent with the public interest.

Counsel:  Polar and Wilmer Cutler, Jeffrey Manley, 202-663-6670

Index

International Air Transport Association

By: John Kiser

By: John Kiser

By: John Kiser

By: John Kiser

By: John Kiser

By: John Kiser

By: John Kiser

By: David O'Connor

By: David O'Connor

Index

Northwest Airlines, Inc.

Scheduled foreign air transportation of persons, property, and mail between Newark, New Jersey, and Santiago, Dominican Republic, and to integrate this authority with its existing certificate and exemption authority. Northwest intends to operate this service pursuant to a code-share arrangement with Continental Airlines whereby Northwest will display its designator code on flights operated by Continental.

By: Paul Gretch

Index

Ronald Reagan Washington National Airport - Establishment of Slot Proceeding

Corporate meets all requisite criteria for an airline to be considered for exemption and they are equally capable of fulfilling their responsibilities to their passengers. Corporate's proposed service would provide nonstop air transportation to some of North Carolina's small communities not presently served from Reagan National. Furthermore, this proposed service would also provide the maximum competitive benefits, including low fares. In addition to providing these small towns with direct flights to our Nation's Capital, Eastern North Carolina would benefit substantially from an economic standpoint.

By: Patrick Ballantine

AirTran Airways is the clear choice for the six available slots. The Department has an opportunity to strengthen competitive service throughout the east coast by allowing AirTran to add DCA to its low fare markets. To make the service work, AirTran needs a minimum of six slots with the opportunity to expand. By allowing AirTran to initiate service at DCA, where it has been blocked from adding service, AirTran will bring its low fare model (as highlighted in DOT's "special section" in the third quarter 2001 Domestic Airline Fares Consumer Report) to thousands of passengers and multiple markets.

Counsel:  AirTran and Ungaretti Harris, Edward Faberman, 202-639-7501

No other applicant in this proceeding can offer benefits remotely comparable to those offered by ATA. As discussed in more detail below, one applicant (US Airways) is already the single largest slot holder at DCA, has recently transferred DCA slots to a number of other carriers and, even more significantly, still has more than enough slots available to it today to inaugurate the services it is proposing without an award in this proceeding. Another applicant (Great Lakes) is in questionable financial condition and has recently been denied a federal loan guarantee by the ATSB, which concluded that its growth plans were unacceptably optimistic. A third applicant (Corporate Airlines) proposes to use aircraft that have apparently been grounded since September 11, 2001, with pilots, copilots and ground crews it does not currently employ, under a service plan that would require twelve slot exemptions-double the number available in this proceeding. The fourth applicant (Airtran) proposes a confusing plan apparently involving markets such as Atlanta, Orlando and Tampa, as well as service to the same three Florida cities recently abandoned in 2002 by Spirit Airlines, which made this proceeding necessary. The fifth applicant (Midwest Express) is proposing to serve Kansas City, which would benefit fewer local market passengers and offer fewer connections than ATA. Midwest Express also has the worst slot utilization rate at DCA and is not considered a low fare carrier. All of the other applicants propose service with aircraft seating significantly fewer passengers than ATA's 175-seat B737­800, and many applicants could operate their proposed services using commuter slots that are available currently at DCA rather than AIR-21 slot exemptions.

Counsel:  ATA and Squire Sanders, Marshall Sinick, 202-626-6651, msinick@ssd.com 

If awarded the slots it is seeking here, Great Plains is prepared to begin service promptly, consisting of two nonstop round trips between DCA and Tulsa, one nonstop and one one-stop round trip between DCA and Oklahoma City, and two one-stop round trips between DCA and Austin, Texas. Great Plains will initiate its service with 32-seat Dornier 328JET aircraft, with upgrades as soon thereafter as possible to 50-seat regional jets.  As explained in our application, all elements of Great Plains' proposal meet the statutory and regulatory requirements for grant of DCA slots: Great Plains holds no slots at DCA and is a qualified new entrant; its proposed aircraft are Stage 3 compliant; its proposed nonstop destinations are small hubs; its proposed nonstop markets are within the 1,250-mile perimeter established for civil operations at DCA; and its proposed schedules will use the same slot periods as those that the Department withdrew from Midway and Spirit.

Counsel: Lachter Clements, Stephen Lachter, 202 835-3219

An award to Midwest Express is essential to alleviate Kansas City's severe service/demand shortfall and to help partially restore the level of nonstop service which Kansas City-DCA lost when US Airways abandoned the route.  Kansas City has the most compelling need for DCA slot exemptions of any other city in issue in this proceeding. As a result of the withdrawal by US Airways from the Kansas City-DCA nonstop market in the immediate aftermath of September 11, 2001, nonstop service between Kansas City and DCA was reduced from a high of six daily nonstop flights to the current low of only two daily nonstops.  This dramatic service reduction has had a significant adverse impact on consumers, forcing them to endure added travel time and as a result, increased costs. Kansas City's O&D once topped over 200,000 annual passengers. Because of the 60% drop in nonstop service to DCA, the O&D between Kansas City and DCA has fallen to just over 120,000 annual passengers. Nonetheless, even at this artificially depressed level, Kansas City-DCA is still significantly larger than all but one of the DCA markets in issue in this case, and that market currently receives four daily nonstops by two carriers.

Counsel: Shaw Pittman, Robert Cohn, (202) 663-8060

The Mobile-Washington DC market needs competition. For the first 6 months of 2002, Delta had a 79% share of Mobile-Washington, DC passengers, up from 60% during the same period in 2001, when ACA served IAD from Mobile.  US Airways operates at Mobile Regional Airport under a unique and more efficient system providing greater flexibility and lower overall airport costs. The system uniquely positions US Airways to operate the service more successfully in Mobile than elsewhere.

By:  G. Bay Haas

Only the proposals by US Airways and Corporate seek to serve smaller communities that have no nonstop service to DCA. See 49 U.S.C. §§ 41714(h), 41718(b)(2),(3). Similarities end there, however. Mobile, Pensacola, and Savannah are each small hubs - larger than Wilmington, Jacksonville, and Fayetteville, each of which is a non-hub. See 1997 FAA Report. Indeed, for the year ending 2Q02, Mobile, Pensacola, and Savannah each had more passengers to the D.C. Metro area than Wilmington, Jacksonville, and Fayetteville combined. For the same period, Mobile, Pensacola, and Savannah also each had more passengers to DCA than Wilmington, Jacksonville, and Fayetteville combined.

Counsel:  US Airways and O'Melveny Myers, Joel Burton

Index

Servicios Aereos Estrella, S.A. de C.V.

Notice approving the application. Effective January 3, 2003 through January 3, 2004. Petitions due January 14, 2003.

By: Paul Gretch

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Thai Airways International

Renew exemption from 49 U.S.C. 41301 to serve Seoul, Korea, and Osaka, Japan, as intermediate points on its authorized Bangkok-Los Angeles scheduled combination and all-cargo services.

By: Paul Gretch

Renew exemption from 49 U.S.C. 41301 to conduct scheduled foreign air transportation of persons, property and mail between Bangkok and the coterminal points New York and Washington, D.C., via Tokyo on a blind sector basis, on a code-share basis only. (Thai conducts these operations pursuant to a code-share arrangement with All Nippon Airways.)

By: Paul Gretch

Index

TNT Airways, S.A.

Counsel: Piper Rudnick, John Mietus, 202 371-6000

Index

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© Copyright 2001 Airline Information Research, Inc.   All rights reserved.