OST Filings for January 27, 2003

OST Docket Filings for January 27, 2003

Last Updated 01/27/03 07:27 PM

Applications and Renewals:

None

Answers and Replies:

EAS at Oshkosh, WI - Objections of Mesa Air and Wisconsin Airport Dept.

Kalitta - Re: Family Assistance Plan

Lan Ecuador - Answers of Continental and Northwest

Southeast - Designation of Agent

Notices of Action Taken:

ABSA - Brazil-US Renewal

Notices and Orders:

IATA - Notice of Approval of Agreements

Lynch v British Airways - Dismissing Complaint

Aerolane, Lineas Aereas Nacionales del Ecuador S.A. d/b/a Lan Ecuador / Linea Aerea Nacional Cile, S.A. (Lan Chile)

OST-03-14291
Undocketed

January 15, 2003

Answer of Continental Airlines

Ecuador-US / Wet-Lease to Lan Ecuador

Barely three months ago, Lan Ecuador applied in Docket 02-13661 for an exemption to conduct Ecuador-U.S. operations and requested a waiver of the ownership and control provisions of the U.S.-Ecuador bilateral air transport agreement to permit it to be 100% owned and almost entirely managed by Chilean citizens. The Department denied Lan Ecuador's application, citing the highlyrestrictive U.S.-Ecuador agreement and Lan Ecuador's extraordinary ownership and control by Lan Chile and Chileans. (See Order 2002-12-15) Lan Ecuador is again applying for an ownership and control waiver and an exemption to offer Ecuador-U.S. service despite continuing restrictions in the U.S.-Ecuador agreement and Lan Chile's continuing influence on Lan Ecuador notwithstanding hastily-made changes to its ownership and management structure.

Continental opposes Lan Ecuador's request for an exemption and waiver of the bilateral ownership and control requirements and continues to oppose Lan Chile's pending request for a statement of authorization to wet-lease its aircraft to Lan Ecuador for U.S. operations. Granting the extra-bilateral relief requested by both carriers would be highly inequitable and contrary to U.S. aviation interests, particularly in light of Ecuador's failure to commit to grant codeshare authority to U.S. airlines and to authorize Continental/Northwest codesharing between the U.S. and Ecuador.

Even without Continental's aspirations to codeshare with Northwest, ownership and control issues posed by the applications of Lan Ecuador and Lan Chile demand the Department's careful and thorough review. Nevertheless, the Department should not begin further investigating the relationships between Lan Ecuador and Lan Chile until Ecuador commits to approve codesharing between U.S. airlines and their partners and grants Continental's request for authority to place the Northwest NW* code on Continental's U.S.-Ecuador flights.

Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2500

OST-03-14291 Undocketed	January 27, 2003	Answer of Northwest Airlines Word Document	Ecuador-US / Wet-Lease to Lan Ecuador
		Service List

When Lan Ecuador first applied for the same exemption authority and a waiver of the ownership and control provisions in the U.S.-Ecuador bilateral agreement, the Department denied those requests based on the extremely restrictive nature of the bilateral agreement with Ecuador and the substantial ownership and control of Lan Ecuador by Lan Chile and other Chilean interests.) Northwest opposed Lan Ecuador's original application because Northwest has long been concerned that the U.S.-Ecuador bilateral agreement does not permit same-country code sharing. While Lan Ecuador has apparently changed its ownership and management structure, Northwest is unaware that Ecuador's policy with respect to same-country codesharing has changed since the Department's December denial. At least until Ecuador commits to permitting codesharing between U.S. carriers, the Department should deny Lan Ecuador and Lan Chile authority to conduct the far more significant extra-bilateral cooperative working arrangements they have proposed with Lan Chile.

Northwest urges the Department to deny the renewed Lan Ecuador exemption application and the companion Lan Chile application for wet-lease authority at least until Ecuador permits U.S. carriers to engage in same-country codesharing on U.S. -Ecuador routes.

Counsel: Northwest, Megan Rosia, 202 843-3193

Index

Aerolinhas Brasilerias, S.A.

OST-96-1372

Filed January 2, 2003
Issued January 27, 2003

Notice of Action Taken

Brazil-U.S.

Exemption from 49 USC section 41301 to permit the applicant to continue to conduct the following operations: A) scheduled, 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; and B) charters, carrying property and mail, between a point or points in Brazil and a point or points in the United States, and other cargo charters, in accordance with the Department's regulations (14 CFR Part 212).

By: Paul Gretch

Index

Essential Air Service at Oshkosh, Wisconsin

OST-99-5712

January 24, 2003
Docketed January 27, 2003

Objection and Motion of Stay of Mesa Air Group

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

It is the Department's longstanding program policy to base subsidy-per-passenger calculations on actual traffic, not carrier forecasts. To rely on carriers' passenger forecasts to determine communities' eligibility would be to abrogate our statutory obligations and turn over to the carriers the authority to determine which communities would remain in the program and which would be eliminated.

Air Midwest has prepared a final compensation request for service between Oshkosh and Chicago O'Hare in response to the Department's Order. to Community officials at Oshkosh, however, have indicated that service to Chicago Midway may better serve their interests. I 1 In light of this, Air Midwest is prepared to explore in good faith service options to the Midway hub. Air Midwest will also guarantee that its compensation requirement for Midway will be commensurate with the O'Hare final compensation requirement. As it is the Community's desire to transfer its service to Midway, Air Midwest requests that the Department consider service proposals to Midway as a viable alternative to service to O'Hare.

By: Mesa, Colleen O'Day

OST-99-5712	January 27, 2003	Objection of Winnebago County, Wisconsin Airport Department	90-Day Notice to Terminate Essential Air Service at Oshkosh, Wisconsin
		Service List

The Oshkosh community strongly supports service by Air Midwest to Midway and based on meetings with the carrier and its parent the Mesa Air Group, Inc., believes that Air Midwest has the desire and capability to make Oshkosh service a success. In support of Air Midwest, Wittman has agreed to provide necessary hangar space without charge to the carrier. In addition, Wittman is waiving both landing fees and fees for counter and office space. Moreover, to support the new service Wittman has pledged up to $100,000 in advertising support.

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

Index

Dr. Maureen Lynch v. British Airways

Order 03-01-26
OST-02-12378

Issued and Served January 27, 2003

Order Dismissing Complaint

Violations of Air Carrier Access Act of 1986

On review of the Complainant's petition, we see no reason to alter the determination in Order 2002-11-11 to dismiss her complaint. The Complainant concedes that she was late in arriving at the departure gate and has offered, as basis for a revision of our prior decision, only the bare assertion that she is not satisfied with the air carrier's explanation of the difficulty in bringing a wheelchair aboard the aircraft used on the flight. We do not believe that it is reasonable to impose further evidentiary requirements on the carrier absent a prima facia rebuttal showing by the Complainant which would call into question the carrier's submissions that on their face are credible. The Complainant has failed to make such an initial showing. We therefore affirm the prior decision to dismiss the complaint and find that further review of this matter is not in the public interest.

By: Rosalind Knapp

Index

International Air Transport Association

OST-02-14260
OST-02-14298

Filed January 14, 2003
Filed January 16, 2003
Approved January 21, 2003

Notice

Approval of Agreements

By: Paul Gretch

Index

Kalitta Air LLC

OST-96-1960

January 27, 2003