OST Filings for January 21, 2003

Application for Renewal of Exemption

Air Jamaica Limited

OST-96-1286

January 21, 2003

Exemption - Scheduled Combination Service between Jamaica and Fort Lauderdale

Hereby applies for renewal of its exemption authority to conduct scheduled foreign air transportation of persons, property, and mail between Kingston and Montego Bay, Jamaica, on the one hand, and Fort Lauderdale, Florida, on the other.

Counsel: Hogan & Hartson, George Carneal, 202-637-6546, gucarneal@hhlaw.com

Application for Renewal of Frequency Allocation

American Airlines, Inc.

OST-96-1411

January 21, 2003

Miami-Grand Cayman

Hereby applies for renewal of its allocation, most recently renewed by Notice of Action Taken in this docket on April 15, 2002, of seven weekly combination
frequencies to provide additional nonstop service between Miami and Grand Cayman. American has used this allocation since June 1, 1996 to operate a third daily nonstop roundtrip in the Miami-Grand Cayman market.

Counsel: American, Carl Nelson, 202 496-5647

OST-03-14319

January 21, 2003

Application for an Exemption

US-Yugoslavia/Macedonia Codeshare with Swiss

Hereby applies for an exemption under 49 USC 40109 authorizing foreign air transportation of persons, property, and mail between points in the United States, on the one hand, and points in Yugoslavia and Macedonia, on the other, with the right to integrate such authority with American's certificates of public convenience and necessity and other exemptions. American will use this authority to serve the U.S.-Yugoslavia and U.S.-Macedonia markets under its codeshare arrangement with Swiss International Air Lines Ltd. d/b/a Swiss.

Swiss operates nonstop service between Zurich and Pristina (Kosovo), Yugoslavia and between Zurich and Skopje, Macedonia. American proposes to place the "AA*" designator code on these flights in order to carry U.S.-Yugoslavia and U.S.-Macedonia passengers connecting at Zurich to and from American's and Swiss's U.S. gateways.

There are currently no bilateral agreements between the U.S. and Yugoslavia or between the U.S. and Macedonia. American's application should be granted on the basis of comity and reciprocity. See, e.g., Notice of Action Taken, OST-2000-7750, March 22, 2001, granting U.S.-Macedonia exemption authority to United Air Lines, Inc. (for purposes of codesharing with Austrian Airlines) "consistent with... the overall state of aviation relations between the United States ... and... Macedonia" (p. 1).

Counsel: American, Carl Nelson, 202 496-5647

American Airlines, Inc. and Swiss International

OST-02-12001	January 21, 2003	Notice of Swiss of Additional Codesharing	Statements of Authorization (Blanket Codesharing) and Related Exemption Authority
		Service List

Swiss will display American's "AA" designator code on flights operated by Swiss between Zurich (ZRH) and Pristina, Yugoslavia (Kosovo) (PRN). American has filed an application for exemption authority for U.S.-Yugoslavia/Macedonia service which is pending.

Counsel: Condon Forsyth, Thomas Whalen, 202 289-0500

Petition of United Parcel Service Co. to Institute a Public Inquiry Into The Citizenship and Foreign Control of DHL Airways, Inc

OST-02-13089

January 10, 2003
Available to Public January 21, 2003

Re: Letter from DHL Airways Master Executive Council - Air Line Pilots Association, International

Public Inquiry into the Citizenship and Foreign Control of DHL Airways

The purpose of this letter is to address the complaints filed by United Parcel Service and FedEx in which they continue to question the citizenship and control of DHL Airways. Although as the Master Executive Council Chairman I am writing specifically on behalf of DHL's 500 pilots and our families, I am certain that the other 500 plus DHL employees share our concern and our viewpoint.

Disturbingly, though, it seems that both UPS and FedEx want the DOT to go far beyond the application of the law. Actually, from this layman's point of view, it appears that UPS and FedEx are questioning either the competence or the ethics (or both) of the DOT. I say this because neither company seems to want to accept the DOT's internal review, nor its prior ruling on this very same issue. Instead, under the guise of "new evidence" they both continue to ask that an Administrative Law Judge conduct a public review.

By: Capt. Daniel Brannan

Essential Air Service at Carlsbad, New Mexico and Hobbs, New Mexico

Order 03-1-21
OST-02-12802
OST-02-12800

Issued January 21, 2003
Served January 24, 2003

Essential Air Service at Carlsbad, New Mexico and Hobbs, New Mexico

Although we have received proposals, this case will not be completed before the end of the current hold-in period. In accordance with 49 U.S.C. 41734, we will extend Air Midwest’s service obligation for an additional 30-day period, or until replacement service actually begins, whichever occurs first.

By: Randall Bennett

Essential Air Service at Excursion Inlet, Alaska

Order 03-1-19
OST-02-12014

Issued January 21, 2003
Served January 24, 2003

90-Day Notice to Terminate Essential Air Service at Excursion Inlet, Alaska

By: Randall Bennett

Essential Air Service at Oshkosh, Wisconsin

Order 03-1-20
OST-99-5712

Issued January 21, 2003
Served January 24, 2003

90-Day Notice to Terminate Essential Air Service at Oshkosh, Wisconsin

Since this case will not be completed before the end of the current 30-day hold-in period, in accordance with 49 U.S.C. 41734(c), we will extend Great Lakes’ service obligation at Oshkosh for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By: Randall Bennett

Essential Air Service at Elfin Cove and Pelican, Alaska

Order 03-1-17
OST-02-11586

Issued and Served January 21, 2003

Terminate Unsubsidized Service at Pelican and Elfin Cove, Alaska

By: Randall Bennett

Essential Air Service between Salina, Kansas and Kansas City, Kansas

Order 03-1-18
OST-02-11376

Issued January 21, 2003
Served January 24, 2003

90-Day Notice to Terminate Scheduled Air Service between Salina, Kansas and Kansas City, Kansas

On January 23, 2002, Air Midwest filed a 90-day notice of its intent to suspend its unsubsidized service at Salina, Kansas, effective April 24, 2002. By Order 2002-3-31, March 29, 2002, the Department prohibited Air Midwest from suspending service at Salina for 30 days beyond the end of its 90-day notice period, and requested proposals from carriers interested in providing replacement service. As required by 49 U.S.C. 41734, we have extended Air Midwest’s service obligation for additional 30-day periods, the latest through January 22, 2003, by Order 2003-1-3.

By: Randall Bennett

Essential Air Service at Staunton, Virginia

Order 03-1-22
OST-02-11378

Issued January 21, 2003
Served January 24, 2003

Essential Air Service at Staunton, Virginia

Although we have received proposals, this case will not be completed before the end of the current hold-in period, and, as required by 49 U.S.C. 41734, we must continue to hold Air Midwest in at Staunton for an additional 30-day period.

By: Randall Bennett

Order Confirming Oral Action and Issuing Effective Commuter Authority

Florida Coastal Airlines, Inc.

Order 03-1-15
OST-01-10874

Issued January 17, 2003
Served January 21, 2003

Scheduled Passenger Service as a Commuter Air Carrier

On January 7, 2003, Florida Coastal provided a forecast for the amended operating proposal and a statement from its bank which shows sufficient funds to meet the Department's financial fitness criteria. There have been two changes in personnel since the show-cause order. Mr. George Buchanan has assumed the position of Chief Pilot and Mr. Eric Larabell has assumed the position of Director of Maintenance. We have reviewed these individual's qualifications and it appears that they have the necessary expertise to fill those positions. Furthermore, the FAA has evaluated and approved both of these individuals to hold the positions they now occupy.

Based on the above, we have determined that Florida Coastal continues to be fit to provide scheduled passenger operations as a commuter air carrier. Therefore, on January 7, 2003, we notified Florida Coastal that we were making its commuter authorization effective on that same date. By this order, we confirm our oral action and reissue to the carrier its commuter authorization to reflect its January 7, 2003, effective date.

By: Randall Bennett

Freedom Airlines, Inc.

OST-03-14318	January 20, 2003 Docketed January 21, 2003	Application for an Exemption	Phoenix, Arizona - Guadalajara, Mexico
		Service List
		Exhibits

Freedom is an air carrier, as defined by 49 USC § 40102, based in Phoenix, Arizona and seeks an exemption authorizing it to engage in scheduled foreign air transportation of persons, property and mail between Phoenix, Arizona - Guadalajara, Mexico, commencing in May 2003. Freedom asks that the Department grant exemption authority on an expedited basis to enable Freedom to promptly seek foreign authority. Freedom intends to operate under a codeshare agreement with America West, using CRJ Model 700, 64 seat aircraft. Freedom reserves the right to serve this route with other aircraft from its fleet.

The Phoenix, Arizona - Guadalajara, Mexico authority sought herein is consistent with the agreement governing the United States - Mexico relationship. That agreement allows four U.S. carriers to operate codeshare services in each city-pair market.

Counsel: Freedom, Brian Gillman, 602 685-4051

International Air Transport Association

OST-03-14208

January 21, 2003

Notice of Interim Approval of Agreement

Approval of Agreements

By: John Kiser

OST-03-14207

January 21, 2003

Notice of Interim Approval of Agreement

Approval of Agreements

By: John Kiser

Application for a Certificate of Public Convenience and Necessity

Murray Air, Inc.

OST-03-14320

January 21, 2003

Certificate of Public Convenience and Necessity - Foreign Charter Cargo

Murray Air proposes to operate both domestic and international cargo charter service, and accordingly requires certificate authority for foreign charter all-cargo air transportation corresponding to its certificate for domestic service. Under 14 CFR § 201.4(c), a request for interstate authority may not be included in the same application as a request for foreign authority.

Counsel: Sher Blackwell, Mark Atwood, 202 463-2513

OST-03-14320	January 21, 2003	Application for a Certificate of Public Convenience and Necessity	Certificate of Public Convenience and Necessity - Interstate Charter Cargo
		Index of Exhibits
		MA-1: Certificate of Good Standing
		MA-2: Affidavit of Citizenship
		MA-3: Key Management Personnel Resumes
		MA-4: Related Companies
		MA-5: Organizational Chart
		MA-6: Murray Aviation Financial Statements
		MA-7: Affidavit of Compliance
		MA-8: Narrative History of Operations
		MA-9: Murray Air Financial Statements
		MA-10: Forecast Financial Statements
		MA-11: Financial Fitness Analysis
		MA-12: Warsaw Waiver Agreement
		MA-13: FAA Pre-Application Statement of Intent
		MA-14: Certification

Murray Air is a private all-cargo charter air operator, certificated by the Federal Aviation Administration under 14 CFR Part 125. As such, it does not have (nor does it require) a certificate of public convenience and necessity from the Department. It is, however, restricted to private (i.e. non-common) carriage. Based in Ypsilanti, Michigan, it operates two DC-8-63 aircraft on behalf of the large automobile manufacturers and several of their suppliers. It does not hold out to the general public, nor does it accept shipments from any entities outside the small number of regular clients for whom it operates.

Murray Air has been very successful in its scope of operations, but for a variety of reasons including the need to operate more frequent international flights it prefers at this time to receive authority to operate in common carriage. This will facilitate obtaining rights for foreign air transportation, and make fleet and market expansion possible. Murray Air leases two DC-8-63 freighter aircraft from Wells Fargo Bank, N.A. They hold U.S. registration numbers N921 R and N865F. Both are compliant with Stage III of the FAA aircraft noise standards.

Murray Air intends to continue to operate its core business, which has been ad hoc and scheduled charters for the major automobile manufacturers and their suppliers. It proposes, however, to offer its services to other customers, such as freight forwarders and other airlines, as a common carrier. While its operations thus far have been entirely within North America, there is a demand for its services in the European, Latin America and Far East markets. Indeed, it has had a number of inquiries about charters to Brazil, Japan and several points in Europe. The carrier has found, however, that lacking certificate authority from the Department, and a Part 121 Air Carrier Certificate from the FAA, is a disadvantage in operating in foreign countries. It plans, therefore, to expand the scope of its operations on an international scale once it has the requisite common carrier authority from the Department.

Murray Air has carved out its niche by catering to the particularly time-critical demands of the automotive industry. It has been very successful in this field. It has operated charter flights throughout the United States and Mexico and to certain Caribbean points. It has had a number of requests to perform foreign charters, but its status as a Part 125 non-certificated carrier has somewhat handicapped its ability to operate internationally. Murray Air is continuing to operate the same fleet it has since its inception. It is, however, making some increases in its infrastructure as required to operate under the Part 121 rules.

Counsel: Sher Blackwell, Mark Atwood, 202 463-2513

Opposition of Presidencia de la Republica Dominicana to Application

Queen Air, S.A.

OST-98-4601

December 26, 2002
Docketed January 21, 2003

US-Dominican Republic

Counsel: Luis Irizarry,

SATA Internacional - Servicos E Transportes Aereos, S.A.

OST-99-6408	January 21, 2003	Application for Renewal of Exemption	U.S.- Portugal Pasenger Charters
		Service List

Pursuant to its exemption authority, SATA commenced U.S. - Portugal operations in January 2000, and since that time has provided safe and efficient charter air transportation between the U.S. and Portugal. The exemption was renewed by NOAT dated February 7, 2001.

Counsel: Baker Hostetler, David Kirstein, 202 861-1756

United Air Lines, Inc. and Asiana Airlines, Inc.

OST-03-14202

January 21, 2003

Notice Providing Access to Documents

Approval of and Antitrust Immunity for Alliance Agreements

Notice granting immediate interim access to all documents covered by Rule 12 Motion to counsel and outside experts for interested parties who file appropriate affidavits with the Department in advance.

By: Read Van de Water

OST-03-14202	January 21, 2003	Supplement Number One to Joint Application	Approval of and Antitrust Immunity for Alliance Agreements
		Exhibit JA-10R: US-South Korea Nonstop Departures and Seats
		Service List

Since filing the application, United has announced plans to upgrade the single-plane service it currently operates between San Francisco and Seoul via Tokyo to a daily San Francisco-Seoul nonstop, effective June 2, 2003.2 In light of this announcement, United and Asiana are submitting this supplement to update certain of the exhibits to their Joint Application, and to demonstrate that, even with the introduction of this new nonstop service to Seoul, extending antitrust immunity to the carriers' Alliance Expansion Agreement is fully supported by Department precedent and will not substantially reduce competition in any relevant market.

Competition in the local San Francisco-Seoul market will also remain robust after United upgrades its San Francisco-Seoul single-plane service to a daily nonstop. As noted above, the grant of immunity to United and Asiana will not reduce the number of carriers currently operating nonstop service between San Francisco and Seoul, which will remain at three. Rather, as also noted above, the upgrade will enhance competition on the route. This is because the United/Asiana alliance currently offers nonstop service on the route only four days per week, whereas the Korean Air/Delta alliance and Singapore Airlines each operates daily nonstop service. With the upgrade of United's indirect service to a daily nonstop, United/Asiana will be better able to compete with the daily nonstop services now being offered on the route by Korean Air/Delta and by Singapore Airlines. Moreover, Northwest, Japan Air Lines, and ANA will continue to offer indirect competition on the route via points in Japan, ensuring that the existing competition for local San Francisco-Seoul passengers remains robust.

Counsel: Counsel: Wilmer Cutler, Bruce Rabinovitz, 202 663-6960 for United / Patton Boggs, Gregory Walden, (202) 457-6135 for Asiana

Volga-Dnepr J.S. Cargo Airline

OST-03-14311

Filed January 17, 2003
Issued January 21, 2003

Notice of Action Taken

Ontario, CA - Guam

Exemption pursuant to 49 U.S.C. section 40109(g) to operate one one-way cargo charter flight from Ontario, CA, to Agana, Guam, on/about January 21, 2003, using its AN-124 aircraft, to transport outsized cargo consisting of seven Utility Bucket Trucks on behalf of Telesource International. The applicant stated that the trucks are urgently needed by the Guam Power Authority and FEMA for reconstruction of the electric power system in Guam in the aftermath of the typhoon that struck Guam in December; 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 and the need to restore electrical power as soon as possible.

By: Paul Gretch

OST-03-14311	January 21, 2003	Amendment to Emergency Exemption	Ontario, CA - Guam
		Service List

Hereby respectfully requests its Application for and Emergency Exemption as filed in the referenced docket on January 17, 2003, requesting authority to operate three one-way cargo charter flights between San Bernardino, California and Guam International Airport on January 23, 2003, be amended to reflect that authority is requested for one one-way cargo charter flight between Ontario, California and Guam International Airport on January 21, 2003. The referenced flight has been rescheduled at the request of the Shipper, and moved from San Bernardino to Ontario for technical/runway condition reasons.

Volga-Dnepr Airlines will be operating AN-124-100 aircraft to carry outsized cargo consisting of seven Bucket Trucks that cannot be accommodated by domestic commercial aircraft.

Counsel: Glenn Wicks, 202 457-7790