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Last Updated 01/09/03 06:35 PM

Applications and Renewals: 

Antonov - Emergency Exemption

Japan Air System - Tokyo-Honolulu Renewal

Laguna - Mexico-US Renewal

Answers and Replies: 

EAS at Gulkana, AK, Cape Yakatage, AK and Icy Bay, AK - Correspondence of Ellis Air

EAS at Massena, NY - Correspondence / Letter

Federal Express / Northwest - Consolidated Answer of United to Federal Express and Northwest (US-Japan Certificate Renewals)

Mohave County Airport - Answer of Allegiant in Support (Passenger Disability Lift)

Ogden - Request for Additional Information

Vision Air - Correspondence

Notices of Action Taken:

None

Notices and Orders:

CRS - Proposed Rule; Notice of Petition Response Date

Aero Laguna, S.A. de C.V.

Application of Aero Laguna, S.A. de C.V. pursuant to 49 U.S.C. Section 40109 and Subpart D, requesting renewal of its exemption from 49 U.S.C. Section 41301, to engage in charter foreign air transportation of passengers and their accompanying baggage with small aircraft between Mexico and the United States, between other countries and the United States.

Counsel: Dan's Consultants, Daniel Elizondo, 210 927-2581

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Antonov Design Bureau

GEAE urgently needs to deliver this GE90-115B engine to Seattle for reinstallation on a B-777-300ER airplane, a newly designed extended range derivative of the Boeing 777, which is currently undergoing an extensive flight test program. The timely delivery of this engine is a critical component of the overall flight test schedule. Shipment of the engine by either truck or rail would take at least ten days, resulting in costly delays that would impose unnecessary hardship on GEAE and Boeing. Thus, GEAE has determined that the urgent need for the engine to reach Boeing's facilities on a timely basis constitutes an emergency requiring the GE90-115B engine to be transported from Columbus to Seattle by air. Due to the outsized nature of the cargo, the only commercially­available aircraft capable of transporting the fully assembled engine is the AN 124-100.

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

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Aviation Ventures, d/b/a Vision Air

We are continuing our review of the certificate application of Aviation Ventures, Inc. d/b/a Vision Air in Docket OST-99-5949. The purpose of this letter is twofold: the first is to notify you of our intended ruling on your request for confidential treatment of certain documents filed in support of Vision Air's application; the- second is to request additional/clarifying information with respect to the application.  

In its July 31, 2002, submission, Vision Air stated that it and/or related companies were currently the subject of three pending actions and one outstanding judgment. (Vision Air noted that two of the pending actions were filed by individual creditors seeking to recover funds allegedly owed to them, and the third sought to recover damages for an alleged breach of contract. Further, the outstanding judgment was to be paid out of a $250,000 bond.) Please review the information previously provided and specifically note if any changes have occurred in the status of the actions and judgment noted above. Also, if there are any pending actions or outstanding judgments that have been entered since July 31, 2002, please provide information on these new actions/judgments as well.

By: Patricia Thomas

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Computer Reservations System

The Department has issued a notice of proposed rulemaking that proposes to readopt and amend its existing rules governing airline computer reservations systems (CRSs) and to clarify the requirements of its Statements of General Policy on travel agency disclosure of any agency service fees. Sabre, one of the CRSs, has filed a petition asking for a fact hearing. The Department is now establishing January 13, 2003, as the due date for responses to Sabre's petition. DATES: Responses to Sabre's petition are due January 13, 2003.

By: Thomas Ray

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Essential Air Service at Gulkana, AK, Cape Yakatage, AK and Icy Bay, AK

Correspondence of Ellis Air Taxi, Inc. submitting their proposal for continuation of essential air service for Gulkana, McCarthy and May Creek, Alaska. Ellis Air Taxi, Inc. requests to provide the same level of service for a new two-year rate term.  Ellis would operate over a Gulkana-McCarthy-Maycreek-Gulkana­Anchorage-Gulkana routing with a change of gauge at Gulkana. The carrier would provide two round trips a week year-round between Gulkana and Anchorage with Cessna 310 aircraft for an annual subsidy need of $129,963 and two round trips a week year­round from Gulkana to Maycreek and McCarthy with either Cessna 185 or 206 aircraft for an annual subsidy of $84,171.

By: Lynn Ellis

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Essential Air Service at Massena, New York

Correspondence of Clarkson University in support of the Essential Air Service proposal advanced by Mesa Airlines to provide three flights per day from Massena and Ogdensburg to Albany and three flights per day from Watertown to Pittsburgh.  Improved commercial air service is very important to Clarkson University and the economic development of St. Lawrence County. It would have a positive impact on the growth of student enrollment and industry-related research at Clarkson, and in expanded employment at the University as well as in secondary jobs in the community. Albany is the North Country's preferred gateway to growth. Thank you for your consideration of the University's position.

By: Denny Brown

Letter of the State of New York Department of Transportation as well as the formal response from local officials form the City of Watertown of Massena, and the City of Ogdensburg regarding the proposals for air service under the Essential Air Service Program for the three communities.  The communities have unanimously selected Mesa Airlines' Proposal 2 as the option that best serves their needs. In this proposal, Mesa will provide nonstop service from Watertown to Pittsburgh and separate nonstop and one-stop service from Ogdensburg and Massena to Albany. This is the only proposal that will maintain direct service from Watertown to Pittsburgh while providing the service to Albany that Massena and Ogdensburg have stated is needed to reverse the downward trend in enplanements and to make local air service competitive.

By: Richard Chimera

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Federal Express Corporation / Northwest Airlines, Inc.

The captioned applications include requests to renew authority granted pursuant to the 1998 U.S.-Japan Memorandum of Understanding that substantially expanded operating rights to serve Japan for the "incumbent U.S. carriers," as well as non-incumbent carriers. Under the 1998 MOU, the "incumbent" U.S. carriers are United, Northwest and Federal Express. Like Northwest and Federal Express, United timely filed to renew its certificate of public convenience and necessity for Route 130, including its U.S.-Japan and beyond operating rights under the 1998 MOU.

United is concerned that, because its renewal application was filed earlier and had not been acted on prior to the termination date of certain authority, the U.S.­Japan authority of its incumbent carrier competitors might be renewed in advance of United's own related authority. Although the Administrative Procedure Act will automatically extend United's authority for Route 130, United nevertheless requests the Department to approve its pending Application for Renewal in its entirety at the same time it renews the authority of the other "incumbent U.S. carriers," Northwest and Federal Express. United's Application for Renewal, despite combining its 1998 MOU authority to serve Japan with other limited-entry authority, does not substantially differ from those of its competitors and was not opposed by any party. There is no reason in these circumstances for the Department to continue to delay its decision on United's May 7, 2002, renewal application.

Application of United Air Lines, Inc. for Renewal of a Certificate of Public Convenience and Necessity, dated May 7, 2002, in Dockets OST-96-1873, 96-1248, and 96-1131.

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

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Japan Air System Company, Ltd.

JAS seeks renewal of the exemption in order to permit operations between Tokyo and Honolulu and to permit JAS to continue to conduct charter operations. JAS has the necessary operating authority from the Civil Aviation Bureau of Japan and has been designated by the Japanese government to provide the service in accordance with the Civil Air Transport Agreement between Japan and the United States, signed August 11, 1952, as amended, with the Memoranda of Understanding signed by representatives of the United States and Japan on November 6, 1989, and April 20, 1998. Renewal of the exemption is therefore in the public interest.

Counsel:  White & Case, Anne Smith, 202-626-3651

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Mohave County Airport Authority

The relief requested by MCAA is considerably more limited than that granted to the Alaska and Hawaii DOTs. In Order 2002-12-3 (Docket OST-2002-13640). relief was ;ranted for three airports for the period from December 2002, through June 1, 2003: in Order 2002-12-4 (Docket OST-2002-13687), relief was granted for five airports for the period from December 4. 2002 through February I. 2003. By contrast, ;MCAA's request involves only one airport for the period from December 4.2002 through February 1. 2003.

Counsel:  Boros & Garofalo, Aaron Goerlich, 202-822-9070

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Ogden Flight Services Group, Inc.

The purpose of this letter is twofold: the first is to notify you of our intended ruling on your requests for confidential treatment of various documents filed in support of OFSG's applications; the second is to request additional clarifying information with respect to these applications.  

We disagree, however, with your argument that release of OFSG's bank verification statement would put it at a competitive disadvantage. It is the Department's practice to release all such third-party verification, absent such sensitive details as account numbers. The bank documents for which confidential treatment is sought do not contain account numbers. Further, we note that information has been placed on the public record regarding the amount of OFSG's current assets (separately identifying its cash balance) and the amount of OFSG's available funding from a deposit paid by FSG PrivatAir pursuant to its B737 Aircraft Management Agreement. In addition, you have not indicated why OFSG should be treated differently than any other applicant for certificate authority. Therefore, we intend to deny confidential treatment to Exhibits OFSG-S506 and OFSG-S804.

By: Patricia Thomas

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