OST Filings for December 22, 2003

Continental opposes any shortening of the answer period for answers to Lan Ecuador's application. Lan Ecuador has apparently changed its ownership and personnel in an attempt to comply with the Department's standards for ownership and control. Given the continuing involvement of Lan Chile with Lan Ecuador and its previous attempt to operate and control Lan Ecuador, the Department should allow interested parties time to analyze fully the new ownership structure. As the Department's previous order recognized, the restrictive aviation regime with Ecuador precludes U.S. airlines from responding freely to market demands, and the parties require at least the normal answer period to determine if Ecuador will grant reciprocal waivers of restrictions in light of Lan Ecuador's application, a point not addressed by Lan Ecuador.

Any delay in Lan Ecuador's institution of service to date has been caused by the Lan Chile/Lan Ecuador decision to flout the Department's well-established ownership and control standards despite the extremely-restrictive U.S.-Ecuador bilateral aviation agreement.

Counsel: Crowell Moring, R. Bruce Keiner, 202-624-2615, rbkeiner@crowell.com

OST-03-14291

January 22, 2003

Objection of Northwest

Guayaquil, Quito, Ecuador-Miami, New York

Objects to the request by Aerolane, Lineas Aereas Nacionales Del Ecuador S.A. d/b/a Lan Ecuador in this proceeding for a shortened answer period. Interested parties require the normal answer period to evaluate the proposed changes in ownership and management in light of Lan Chile's previous total ownership and control of Lan Ecuador and to consider the extent of Lan Chile's continuing influence. Further, since the applicant has not addressed the reciprocity concerns raised in Northwest's reply concerning Lan Ecuador's previous application, Northwest requires at least the normal answer period to gather information on Ecuador's current position with regard to reciprocal codeshare rights in Ecuador.

Counsel: Northwest, Megan Rae Rosia

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Aerolineas Marcos, S.A. de C.V.

OST-96-1693	January 22, 2003	Application for Renewal of Exemption	Mexico-US Charter Taxi
		Service List

Counsel: Roller Bauer, Lee Bauer, 202 331-3300

Index

Aerolineas Uruguayas, S.A. (A.U.S.A.)

OST-00-8547

Filed January 14, 2003
Issued January 22, 2003

Notice of Action Taken

U.S.- Montevideo, Uruguay

Exemption from 49 U.S.C. § 41301 to engage in charter foreign air transportation of property and mail between Uruguay and the United States; and other all-cargo charters in accordance with Part 212 of our rules.

By: Paul Gretch

Index

Airline Cancellation Penalties

OST-03-14334

January 17, 2003
Docketed January 22, 2003

Petition for Rulemaking

Word Document

Airline Cancellation Penalties

Petition of Joel Kaufman requesting the Department of Transportation to adopt rules that bar disproportionate penalties when an airline cancels a flight, and when a passenger cancels a reservation.

By: Joel Kaufman

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AirTran Airways, Inc.

OST-03-14308

January 22, 2003

Re: Polling Letter

Exemption - Baltimore-Freeport, Bahamas

This is to certify that the undersigned has polled all air carriers on the Service List to the above application (specifically, American, Continental, Delta, Northwest and US Airways) and has been advised by counsel or other authorised representative that they have no objection to grant the Application and that they do not intend to submit answers. If you have any questions, please give me a call.

Counsel: Wiley Rein

Index

Delta Air Lines, Inc.

OST-02-12183

January 22, 2003

Request for a Temporary Dormancy Waiver

Frequency Allocation - US-Ghana

Delta had planned to use its four Ghana frequencies to introduce third-country codeshare service between Milan and Accra in conjunction with SkyTeam partner Alitalia during the 2002/03 Winter Season. However, implementation and facilitation issues have forestalled the introduction of this new service. Delta continues to plan third-country codeshare service to Ghana and intends to start service in May, 2003. Accordingly, Delta requests a waiver of the dormancy condition through June 1, 2003 to accommodate this new startup schedule.

Grant of this limited waiver to permit Delta's introduction of U.S. -Ghana service is clearly in the public interest. There is currently a surplus of U.S.-Ghana frequencies. All U.S. carriers seeking to serve Ghana have been granted sufficient frequencies to fund their desired service levels. Moreover, and five additional frequencies will become available on April 3, 2003, creating a further reserve of surplus frequencies.

Counsel: Delta and Shaw Pittman, Robert Cohn, 202-66-8060

Index

Essential Air Service at Worcester, Massachusetts

OST-03-14333	January 22, 2003	Notice of Allegheny and Request for Exemption to Terminate Service	90-Day Notice to Terminate - Essential Air Service at Worcester, Massachusetts
		Service List

Allegheny currently operates three (3) daily roundtrip flights between Worcester, Massachusetts, and Philadelphia, Pennsylvania, using Dash-8 aircraft. By DOT Order 98-11-22, the Department redefined Worcester's EAS service determination as a minimum of two roundtrips a day to any medium or large hub, with at least 67 seats in each direction.

Allegheny seeks to terminate its services at Worcester on February 8, 2003. There would be no remaining scheduled service at Worcester after Allegheny eliminates its services. Worcester is within 70 miles of four other airports offering extensive scheduled service, including Boston (Logan), Hartford, Providence, and Manchester (NH) - each of which offers service by low-cost carvers such as Southwest and/or AirTran.

Counsel: O'Melveny Myers, Joel Burton, 202 383-5300

Index

International Air Transport Association

OST-00-8369

January 22, 2003

Request for Withdrawal & Refund of Filing Fee

Approval of Agreements

The amendments in Mail Vote 090 (pending Docket 2000-8369) have been superseded by those in Memorandum PTC COMP 0843 in pending Docket 2001-10757. Therefore, this petition is to request the withdrawal of the application in Docket OST2000-8369 and a refund of $61 in filing fees.

By: David O'Connor

Index

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

OST-02-14049

January 22, 2003

Correspondence

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

Russ, I noted that in acknowledging receipt of our Notice staying procedural dates in Docket OST-2002-14049, you added a thought that might be viewed as a substantive request. In this regard, I feel I should point out that if you indeed are requesting a modification of the instituting order, you will need to comply with 14 CFR 302.14. I am placing a copy of your email to me and my reply in the correspondence section of the docket.

Thanks, Linda. Now that procedural dates have been suspended, one thing The Department might consider addressing in its upcoming order is whether the forecast year for first-year proposals still should be CY 2003.

By: Linda Senese

Index

Pan American World Airways, Inc.

OST-03-14335	January 22, 2003	Notice of Intent to Resume Certificated Operations and Request for Waiver	Resume Certificated Operations
		Index
		PA-100: Planned First-Year Resumed Flight Scheduled
		PA-101: Projected First-Year Traffic, Revenues and Expenses
		PA-102: Projected First-Year Cash Flow Statement
		PA-103: Profit and Loss Statement for the Year Ended December 31, 2002
		PA-104: Balance Sheet as of January 21, 2003
		PA-105: Third-Party Verification of Working Capital on Hand
		PA-106: Resumes and Fitness Questionnaires of New Management Personnel
		PA-107: Title 18 Certification
		Service List

Intent to resume certificated scheduled-service operations on or before February 9, 2003. In order to meet that schedule, Pan Am requests a waiver of the 45-day advance notice period applicable to this Notice, and requests issuance of verbal or written notice of authority to resume operations prior to January 31, 2003.

Pan Am decided to temporarily suspend its scheduled domestic and international operations between January 15, 2003 and February 12, 2003. Pan Am took this action in response to extremely light forecast passenger bookings during that traditionally slow travel period, and to provide an opportunity for Pan Am's sales and marketing staff to refine and implement schedule adjustments designed to improve Pan Am's future passenger load factors and operating efficiency. Pan Am's flexibility in this regard has enabled Pan Am, as a matter of prudent management, to limit what otherwise would have been a significantly larger operating loss during the period at issue.

As soon as Pan Am decided to institute this brief service suspension, Pan Am advised the FAA and traveling public of its plans, and took immediate steps to accommodate all passengers booked to travel on Pan Am during the suspension period, either on flights operated by other carriers or on future flights to be operated by Pan Am, in each affected city-pair market.

The first resumed scheduled flight will be operated between Portsmouth, N.H. ((PSM) and Sanford, Florida (SFB) on February 9, 2003. Pan Am plans to operate its initial resumed service utilizing two B-727 aircraft, gradually expanding to six active B-727 aircraft in operation in November and December 2003. All of Pan Am's seven B-727 aircraft remain available for service, including ad hoc charter flights upon request. Pan Am will use the brief service hiatus to perform maintenance work ahead of schedule, and to complete certain interior refurbishments to its aircraft fleet. By December 2003, Pan Am plans to be operating resumed scheduled service in five interstate city-pair markets (PSM-BGR, PSM-SFB, BGR-SFB, SFB-SJU and SFB-BQN) and two foreign city-pair markets (SJU-SDQ and SJU-PUJ), serving a total of over 289,000 passengers.

Pan Am incurred a net loss of $17,686,000 during the year ending December 31, 2002.

Counsel: Zuckert Scoutt, Nathaniel Breed, 202 298-8660

Index

Delta Air Transport N.V. d/b/a SN Brussels Airlines

OST-03-14336	January 22, 2003	Application for an Exemption	Exemption - Belgium-US - Codeshare with American Airlines
		Service List

Hereby applies for an exemption from49 U.S.C. § 41301 to the extent necessary to permit SN Brussels to provide scheduled foreign air transportation of persons, property and mail between a point or points behind Belgium, via Belgium and intermediate points, to a point or points in the United States and beyond. Specifically, SN Brussels will enter into a codeshare agreement with American Airlines whereby SN will operate to points beyond Brussels in Europe and Africa and American will operate transatlantic routes and domestic routes within the U.S.

SN Brussels currently does not plan to operate to the U.S. directly using its own aircraft. SN Brussels will operate all routes between Brussels and Africa under a wet lease agreement with Birdy Airlines, a Belgian career.

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

Web Site

OST-03-14337	January 22, 2003	Cover Page / Table of Contents	Foreign Air Carrier Permit - Belgium-US
		Application
		Service List
		Exhibit A: Directors, Officers and Key Management Personnel
		Exhibit B: Greater than 5% Shareholders of SN Brussels (Major Shareholders)
		Exhibit C: Greater than 5% Shareholders of Major Shareholders of SN Brussels
		Exhibit D: Copy of OST Form 6411, Foreign Air Carrier Certificate of Insurance
		Exhibit E: Operating Authority Issued by the Civil Aviaiton Authority
		Exhibit F: Aircraft Fleet
		Exhibit G: Various Financial Documents
		Exhibit H: Traffic Forecasts
		Exhibit I: Diplomatic Note

SN Brussels requests an initial foreign air carrier permit, and by corresponding application, exemption authority, to provide scheduled foreign air transportation of persons, property and mail pursuant to 49 U.S.C. § 41301 between a point or points behind Belgium, via Belgium and intermediate points, to a point or points in the United States and beyond. SN Brussels does not currently plan to implement service directly to the U.S. using its own aircraft and crew. It will operate these routes under a codeshare arrangement with American Airlines. SN Brussels proposes to commence service on or about March 31, 2003. SN Brussels requests this authority pursuant to the U.S.-Belgium Air Transport Agreement signed September 5, 1995. This agreement is an open skies agreement allowing U.S. and Belgian carriers access to all points within the other nation, as well as behind, intermediate and beyond rights. American Airlines and SN Brussels will be filing a Joint Application for a Statement of Authorization to Codeshare. The Joint Application will contain the initial points that SN Brussels intends to serve.

SN Brussels and American Airlines will file a separate request for a Joint Statement of Authorization to Codeshare pursuant to 14 C.F.R Part 212.

SN Brussels was created as DAT, Delta Air Transport N.V. in 1966 and initially provided feeder air services for Sabena and later KLM as well, utilizing DC3, DC6 and Convair aircraft. KLM became a 40% stockholder in 1976. In 1985, Sabena acquired 49.99 % of the company's shares, while KLM reduced its stake to 33.33 %. Over the years Sabena further increased its ownership interest in SN Brussels, which consequently terminated services for carriers other than Sabena in 1991. SN Brussels acted as Sabena's "low-cost airline" in Sabena's corporate strategy. With the increased ownership and increased traffic provided by Sabena, SN Brussels increased its aircraft fleet. Sabena's ownership of SN Brussels reached 99.9 % in 1996.

Following Sabena's bankruptcy in November 2001, SN was taken over by its current shareholders. In 2002, the trade name of the company was changed to SN Brussels Airlines. Today, SN Brussels acts as a regional European carrier and serves over 34 European and 13 African cities from Brussels. SN Brussels transports nearly 10,000 passengers on almost 300 flights daily. Currently, SN Brussels has a number of codeshare relationships with airlines such as Iberia, British Airways, Virgin Express, Finnair and Swiss to enhance its route network.

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

Web Site

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2002 US-Mexico All-Cargo Exemption Service Case

OST-02-13299

December 30, 2002
Available to Public January 22, 2003

Re: Letter in Support of Atlas' Service from Los Angeles World Airports (With Letter from Atlas to LA World Airports)

2002 US-Mexico All-Cargo Exemption Service Case

Atlas Air's proposed service will produce significant economic benefits for the Los Angeles region and greatly enhance the availability f services between LAX and Latin America. We strongly urge the Department to select Atlas Air for the available designation in the U.S.-Mexico market.

By: Lydia Kennard

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