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Last Updated 01/23/03 05:30 AM

Applications and Renewals: 

AirTran - Baltimore-Freeport

Ogden Flight - 7th Supplement

United - US-Albania/Armenia/Georgia/Macedonia/Croatia/Slovakia/Bosnia/Slovenia/Maldives/Nepal Renewal

Volga-Dnepr - Emergency Exemptions

Answers and Replies: 

Antonov - Correspondence

EAS at Lancaster, PA - Correspondence from Lancaster Airport Authority / Objection of Lancaster Airport Authority to Colgan

Intra-Alaska Mail Rates - Equalization Notice of PenAir

Queen Air - Additional Information from Air Santo Domingo, SAP & Trans Caribbean in Support of Opposition

Transatlantic, Transpacific and Latin American Mail Rates - Objections of American

US Airways - Exparte Letters

Notices of Action Taken:

None

Notices and Orders:

Continental/Delta/Northwest - Termination of Review

EAS between Staunton, VA and Pittsburgh, PA - Order Selecting Carrier and Establishing Final Subsidy Rates

AirTran Airways, Inc.

AirTran Airways will initially operate daily non-stop services between Baltimore and Grand Bahama Island (Freeport) beginning March 4, 2003 using B-717­200 aircraft configured at 117 seats. The daily non-stops will depart Baltimore­Washington International Airport (BWI) at 1505 hours, arriving Freeport at 1735 hours. In the northbound direction, the daily non-stops will depart Freeport at 1155 hours, arriving at BWI at 1425 hours. Block times for the flights will thus be 2 hours, 30 minutes.  Additionally, AirTran Airways has provided daily non-stop services with B-717-200 aircraft between Atlanta and Freeport under exemption authority beginning in December of 2000. See Notices of Action Taken in Docket OST-2000-8052.  No U.S. or foreign air carrier currently provides non-stop services between Baltimore and Freeport.

The new flights will respond to a need for non-stop services between Baltimore, a major commercial and financial center, and The Bahamas. Moreover, these new flights will be timed to connect with AirTran Airways' Boston and Rochester flights at BWI, providing important new on-line services for the traveling public. Neither Boston nor Rochester currently has non-stop or direct services to Freeport.

Counsel:  Wiley Rein, Bert Fein, 202-719-7045

Index

Antonov Design Bureau

Correspondence from the United States Department of State to George Wellington, Chief of Licensing Division, regarding the Shipment of Security-Related Material to US Embassy Khartoum.

By: David Raad

Index

Continental/Delta/Northwest Agreements

As required by 49 U.S.C. § 41720, Delta Air Lines, Northwest Airlines, and Continental Airlines submitted code-sharing and frequent-flyer program reciprocity agreements to the Department for review.  After analyzing the agreements and conducting an extensive informal investigation, the Department has determined that the agreements, if implemented as presented by the three airlines, could result in a significant adverse impact on airline competition, unless the airlines formally accept and abide by certain conditions that are intended to limit the likelihood of competitive harm.  If the airlines choose to implement the agreements without accepting those conditions, the Department will direct its Aviation Enforcement office to institute a formal enforcement proceeding regarding the matter.

If we are notified promptly that the three carriers agree to implement the alliance subject to the conditions set forth above, we would not now institute an enforcement case under our governing statute.  Given our strong concern that the agreements could have anti-competitive results, however, we would continue to monitor closely the implementation of the agreements.  We, of course, reserve the right, if we obtain evidence that leads us to believe that the joint venture is adversely affecting competition, to refer the matter for enforcement action.  Further, if the three airlines at any time decide that they will no longer comply with a formal agreement accepting our conditions, they will have created a new agreement that must be submitted to us under 49 U.S.C. 41720, subject to all of the provisions of the statute, including the prescribed waiting period.  Under our established interpretation of 49 U.S.C. 47120, the same will be true if they materially modify the terms of the agreements submitted by them on August 23.

By:  Read C. Van de Water

Department of Justice Press Release

Index

Essential Air Service at Lancaster, Pennsylvania

Correspondence from Lancaster Airport Authority proposing a settlement to pay a maximum subsidy for calendar years 2003 and 2004 of $625,000.00 per year.

Counsel: Russell, Krafft, Christina L. Hausner, 717 293-9293

Counsel: Russell, Krafft, Christina L. Hausner, 717 293-9293

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Essential Air Service Between Staunton, Virginia and Pittsburgh, Pennsylvania

After careful consideration of the carriers' proposals and the community's views, we have decided to select Colgan to provide essential air service at Staunton for a one-year period at its proposed annual subsidy rate of $623,667, with an extension for an additional year subject to the mutual agreement of the carrier and the Department. 

Reaching a decision in this case was difficult, particularly in view of the continued strain on program resources. In some respects, Colgan's and Air Midwest's proposals are identical: both carriers propose 19 nonstop round trips a week to Pittsburgh with 19-seat Beech 1900 aircraft, and both have code-share alliances with US Airways, Inc., the dominant carrier at Pittsburgh. The choice therefore lies between Air Midwest's lower subsidy requirement versus the community's strong preference for Colgan, which it believes is more likely to return Staunton''s service to self-sufficiency in the long term. Given Staunton's history of nearly always being self­sufficient, we believe that the community's return to self-sufficiency is a realistic prospect, and we will not gainsay the community's opinion as to which carrier is more likely to achieve that objective. The difference in subsidy between the two proposals -- about $109,000 -- is not substantial in comparison with the long-term program savings that self-sufficiency would realize. We have therefore decided to give Colgan an opportunity to work with the Staunton community to rebuild the market.

By: Read Van de Water

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Intra-Alaska Class Service Mail Rates

Subject to the conditions below, Peninsula Airways, Inc. gives notice of its election to equalize its otherwise applicable rate for small aircraft in the Anchorage to King Salmon and Anchorage to Dillingham markets to match, on a total rate per pound basis, the lower rate or combination of rates now in effect or hereafter prescribed and paid to Everts Air Cargo, Alaska Central Express, Northern Air Cargo, Alaska Airlines, Frontier Flying Service and Lynden Air Cargo, for each category of mail they transport in these markets. Peninsula Airways, Inc. further elects to equalize its otherwise applicable rates in these markets to any lower rate or combination of rates prescribed and paid in the future to any other carrier or carriers.

By: Scott Bloomquist

Index

Ogden Flight Services Group, Inc.

Hereby submits the fitness data requested in the Department's January 3, 2003 docket submission seeking certain additional information in connection with OFSG's pending application for a certificate of public convenience and necessity to engage in interstate charter air transportation.  OFSG also has a pending application for foreign charter air transportation (Docket OST-01­11235). OFSG requests that the Department allow the information submitted herein to be incorporated by reference in its pending application for foreign charter authority.

Counsel: Zuckert Scoutt, Malcolm Benge, 202 298-8660

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Queen Air, Aeronaves Quenn, S.A.

That with respect to the operational aspect, the CAA is requesting that additional documentation be presented to them indicating who will have operational control of the aircraft between the intentional agreement between Queen Air and Rohr, Inc. In addition the CAA is requesting the documentation of who is the owner of the aircraft to be used by Queen Air. In the document provided(agreement) the aircraft presented as Queen Air aircraft, the same aircraft is being offer for sale to other parties. The CAA allege that if the aircraft is sold before the completion of all requirement for the renewal of the certificate, Queen Air will have no airplane to conduct operations.

The undersigned as representative of the Air Santo Domingo, S.A., Servicios Aereos Profesionales, S. A. , Servicios Aereos Profesionales, Inc. and Trans Caribbean Airways, Inc. , formally request that the Department take notice of the above information and document and we again opposed to Queen Air Renewal of its Exemption.

Counsel: Luis Irizarry, 787 752-7621

Index

Transatlantic, Transpacific and Latin American Service Mail Rates Investigation

American Airlines, Inc. hereby objects to show-cause Order 2002-12-23, December 31, 2002, proposing international service mail rates for the period January 1-December 31, 2003. Specifically, the terminal expense data submitted by Delta Air Lines, Inc. is significantly inconsistent with data submitted by other carriers.

Data provided by Delta is also used in the Depart­ment's calculations for the Latin American rate area and the Transborder rate area. Similar inconsistencies exist in Delta's reporting for these entities. As an example, Delta reported a 36.6% decrease in Latin American rate area terminal expense, yet a 15.6% increase in year-over-year available ton­miles and an 8.9% increase in tons of cargo and baggage en­planed. Clearly, Delta has incorrectly reported its data to the Department. Any errors in the show-cause order are not in any way the result of miscalculations by the Department, which relies on carriers to report their data correctly. In fact, the Department only recently provided reminder instructions to the carrier community as to how data should be submitted for correct interpretation.

American challenges the data submission by Delta as incorrect for all entities, and requests that Delta immediately be directed to review and resubmit its data consistent with the Department's instructions. The Department should then use Delta's revised data to establish the fair and reasonable rates for compensation to be paid by the Postmaster General in the Atlantic, Latin America, Pacific, and Transborder rate areas for the period January 1-December 31, 2003.

Counsel:  American, Mark Gilbert, 817-967-1031, mark.gilbert@aa.com 

Index

United Air Lines, Inc.

United Air Lines, Inc. pursuant to 49 U.S.C. § 40109 and Subpart C of the Department's Rules of Practice (14 C.F.R. Part 302), hereby applies for renewal of its exemption to provide scheduled foreign air transportation of persons, property and mail between any point or points in the United States, on the one hand, and Tirana, Albania; Tbilisi, Georgia; Yerevan, Armenia; Skopje and Ohrid, Macedonia; Split, Croatia; Kosice, Slovakia; Banja Luka and Mostar, Bosnia; Ljubljana, Slovenia; Male, Maldives; and Kathmandu, Nepal, on the other, directly and via intermediate points and beyond to any point or points in third countries, including route integration authority. United requests that this exemption be renewed for a period of two years or until the Department grants a permanent certificate of public convenience and necessity which includes such authority.

Renewal of the exemption authority, as requested herein, is clearly in the public interest as it will ensure the continuation and further development of these services. The exemption enables United to provide online services in conjunction with its code-share partners, Austrian Airlines and its affiliates: Lauda Air Luftfahrt GmbH and Tyrolean Airways, Tiroler Luftfahrt AG, between the U.S. and the points named above via Vienna, Austria.2 United presently is offering code-share service to pursuant to the exemption authority which it seeks to renew.

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

Index

US Airways, Inc.

Correspondence letter to the Honorable John F. Street, in support of the application of US Airways, Inc. for authority to operate between Philadelphia, Pennsylvania, and Shannon/Dublin, Ireland.

By: Norman Mineta

By: Paul Gretch

By: Paul Gretch

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Volga-Dnepr J.S. Cargo Airlines

The outsized cargo payload to be transported by Volga-Dnepr from North Island to Denver will consist of one each Lockheed Martin Astronautics Centaur III Launch Vehicle Upper Stage (AV0004) payload and associated equipment, with the total combined weight of approximately 45,000 pounds. The Centaur III Launch Vehicle Upper Stage (AV0004) in its shipping configuration measures 52' long, 12' wide and 14' high, and weighs approximately 19,000 pounds. The associated ground support equipment weighs 26,000 pounds. The payload as described cannot be accommodated by domestic commercial carrier aircraft.

Counsel:  Glenn Wicks, 202 457-7790

The outsized cargo transported by Volga-Dnepr between San Bernardino and Guam will consist of seven Utility Bucket Trucks with the total combined weight of 161,000 lbs, and 23,000 lbs. As such, the emergency equipment in question cannot be accommodated by commercially available U.S. carrier aircraft. The trucks are urgently needed for reconstruction of the electric power system in Guam in the aftermath of the extremely destructive Typhoon Pongsona that struck Guam in December and caused Guam to be declared a Federal Disaster Area by President Bush and the Federal Emergency Management Agency

Counsel:  Glenn Wicks, 202 457-7790

Index

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