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Last Updated 01/29/03 09:27 PM

Applications and Renewals: 

America West - Phoenix-Guadalajara Codeshare w/ Freedom

Atlas - Brazil Cargo Dormancy Waiver

Jersey European and Delta - Amended Exemption and New Statement of Authorization (US-UK Codesharing)

KLM CityHopper - Netherlands-Points in Third Countries Codeshare with Continental and Northwest

Ogden Flight Services - Supplement No. 8

Servicio Aereo Lopez - Chihuahua-US Taxi

Answers and Replies: 

Air Caraibes- Counterpart to Warsaw

COPA - Designation of Agent

EAS at Cape Yakatage and Icy Bay, AK - Protest of Jim Air / Verification

Lan Ecuador - Reply of Lan Ecuador to Continental and Northwest

Murray - Correspondence

Transatlantic, Transpacific and Latin America Mail Rates - Objections of United

Valley Air - Request for Additional Information

Notices of Action Taken:

AirTran - Baltimore-Grand Bahamas Island

Antonov - Columbus-Seattle/Boeing Field

Cayman - Cayman Islands-Ft. Lauderdale

Ethiopian - Dulles/Newark Renewal

ExecuJet Charter - Switzerland-US

Volga-Dnepr - North Island-Denver

Notices and Orders:

EAS at Pelican and Elfin Cove, AK - Order Selecting carrier and Establishing Subsidy Rate

Emery Worldwide - Revocation of Certificate

Aerolane, Lineas Aereas Nacionales del Ecuador S.A. d/b/a Lan Ecuador

Although Continental's objection to Lan Ecuador's application is nominally based on its alleged (but undocumented) inability to gain Ecuadorian Government approval to code-share with other carriers on its U.S.-Ecuador flights, Continental's apparent strategic objective is to protect its position in the New York-Ecuador market. Continental holds 14 of the 15 New York­Ecuador frequencies available to U.S. carriers under the U.S.-Ecuador Agreement, as amended. Continental has elected not to use those frequencies to provide convenient non-stop service in the market and, instead, uses the frequencies to provide less-convenient one-stop service between New York and Guayaquil via Panama City and between New York and Quito via Bogota. It is no surprise, therefore, that Continental would prefer to delay as long as possible Lan Ecuador's introduction of superior new non-stop service between New York and Guayaquil. Continental's unprecedented suggestion that the Department "investigate" Lan Ecuador - but not even commence such an investigation until after the Ecuadorian Government has authorized codeshare operations by Northwest on Continental flights - is an obvious element of Continental's effort to create such delay.

To the extent Continental and Northwest allege that Lan Chile actually controls the day-to-day operations and decision making of Lan Ecuador, they have ignored or misunderstand the facts set forth in Lan Ecuador's application. A majority of the members of Lan Ecuador's Board are Ecuadorian nationals who have arm's-length business relations with Lan Chile.

Counsel: Zuckert Scoutt, Charles Simpson, 202 298-8660

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Air Caraibes

By: Richard De Gryse

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AirTran Airways, Inc.

Scheduled foreign air transportation of persons, property, and mail between Baltimore, Maryland and Grand Bahama Island (Freeport), the Commonwealth of The Bahamas.

By: Paul Gretch

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America West Airlines, Inc.

Application of America West Airlines, Inc. pursuant to 49 U.S.C. Section 40109 and Subpart C, 14 CFR Section 302.301 et seq., requesting an exemption for a least two years from 49 U.S.C. Section 41101, to display its HP designator code on combination flights operated by Freedom Airlines, Inc. between Phoenix, Arizona and Guadalajara, Mexico.

Respectfully requests an exemption effective for at least two years from 49 U.S. C.§ 41101 and any other relief necessary to authorize America West to display its "HP" designator code on combination flights operated by Freedom Airlines, Inc. between Phoenix, Arizona and Guadalajara, Mexico using a CRJ Model 700, 64-seat aircraft. America West intends to begin the codeshare operations on May 1, 2003, or as soon as all required authorizations have been obtained. America West therefore respectfully requests the Department grant it an exemption effective immediately to allow the Company to pursue advance marketing and sales activities. In addition, America West respectfully requests that the Department issue a notification of its authorization to codeshare with Freedom on the PHX-GDL route to the extent necessary under the August 15, 1960, Air Transport Agreement Between the Government of the United States of America and the Government of the United Mexican States.

America West seeks an exemption authorizing it to serve the PHX-GDL market for at least two years. America West will serve these markets only through its codesharing relationship with Freedom. Pursuant to this relationship, Freedom will conduct the operations and display the "HP" designator code.

Counsel: Baker Hostetler, Joanne Young, 202 861-1532

Freedom Air's Application in OST-03-14318

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Antonov Design Bureau

On January 24, 2003, the Department granted Antonov an exemption pursuant to 49 U.S.C. 40109(g) to permit it to operate one one-way emergency cabotage cargo flight from Columbus, Ohio, to Seattle/Boeing Field, Washington, to transport outsized cargo consisting of one GE90-115B aircraft engine, plus ancillary equipment, on behalf of General Electric Aircraft Engines, during the period January 27-28, 2003. In its original application for this authority, Antonov stated that the engine is urgently needed for reinstallation on a B-777-300ER aircraft which is currently undergoing an extensive flight test program; that timely delivery of the engine is a critical part of the flight test program; that the cargo is too large for transportation on U.S.-carrier aircraft; and that surface transportation is not feasible because of the excessive time such transportation would take.

By: Read C. Van de Water

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Atlas Air, Inc.

In the two and one-half months since the Department granted the subject waiver, Brazil's economic situation may have stabilized somewhat, but there have been few indications that the Brazilian economy has started to recover. For instance, Atlas pointed out in its November 4 application that the Brazilian Real had declined in value to US$0.284, near its low for the year, making it quite difficult to secure Brazilian exports for placement on northbound services. At US$0.274 today, the Real has not yet shown any signs of improvement. Similarly, according to U.S. Census Bureau foreign trade statistics, U.S. exports to Brazil in November 2002 - the latest month for which data are available - remained 22% below exports in November 2001.3 In the category of office and automatic data processing machines (SITC Code 75), historically a large source of air cargo for southbound flights, U.S. exports to Brazil in November 2002 were 28% below exports in November 2001.

Atlas remains optimistic that the Brazil market will grow this year and is continuing its vigorous pursuit of additional customers for expanded Brazil services. In particular, it recently has had preliminary conversations with one large potential customer and plans to hold follow-up meetings in coming weeks. Atlas is hopeful about the prospects for new business, especially as the economy in Brazil starts to improve, and anticipates using the two Brazil frequencies for which it holds a dormancy waiver. However, in view of the current economic climate, it cannot do so by February 9, 2003, the current dormancy waiver expiration date. Atlas is seeking a three-month dormancy waiver extension for the two Brazil frequencies in order to gain time to complete ongoing commercial discussions and to respond to economic circumstances as they improve.

Counsel:  Atlas, Russell Pommer, 202-354-3843, rpommer@atlasair.com

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Cayman Airways Limited

Exemption from 49 U.S.C. 41301 to conduct scheduled foreign air transportation of persons, property and mail between the Cayman Islands and Ft. Lauderdale, Florida.

By: Paul Gretch

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Compania Panamena de Aviacion

Counsel: Mullenholz Brimsek, John Brimsek, 202 296-8000

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Emery Worldwide

By this order, we are revoking the company's companion charter and scheduled foreign certificate authority. Instead of repeating our findings and conclusions in Order 2002-12-14, we incorporate them here by reference.

By: Randall Bennett

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Essential Air Service at Cape Yakatage and Icy Bay, Alaska

Objection of Jim Air, Inc. protesting the award of Essential Air Service pursuant to 14 CFR Part 17, Chapter 1, Sub-chapter B.  The basis of the Protester's status as an interested party is that the Protester submitted the apparent low proposal for essential air services in the above referenced docket timely and has not rescinded that bid and was not awarded the contract, although fully qualified to perform.

Counsel: Fortier Mikko, Samuel Fortier, 907 277-4222

Verification of Samuel J. Fortier and Jim Bern pursuant to Title 18 U.S. Code Section 1001.

By: Samuel Fortier

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Essential Air Service at Pelican and Elfin Cove, Alaska

Order 2003-1-27 selects Alaska Seaplane Service, LLC, to provide subsided essential air service at Elfin Cove and Pelican, Alaska, at an annual subsidy rate of $177,681 for a two-year term from February 1, 2003, through January 31, 2005. This rate also serves as a past-period rate retroactive to May 15, 2002, when we required the carrier to continue to serve these communities.

Alaska Seaplane was the only carrier to submit a proposal in response to our request. As a result of discussions with Department staff, the carrier has agreed to continue to provide service to the communities for a prospective two-year rate term, as follows: Pelican -- six round trips a week to Juneau, peak and off-peak; Elfin Cove -- one round trip a week and five flagstops a week to Juneau in the peak season and five flagstops a week to Juneau in the off­peak season. The service will be provided with 6-seat DeHavilland DHC-2 Beaver aircraft at an annual subsidy rate of $177,681.

By: Read Van de Water

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Ethiopian Airlines Enterprise

Renew exemption from 49 U.S.C. 41301 to conduct foreign air transportation of persons, property and mail between Addis Ababa, Ethiopia, and the coterminal points Washington, DC, and Newark, NJ, via a non-traffic stop in Rome, for a period of two years.

By:  Paul Gretch

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ExecuJet Charter AG

Exemption from 49 U.S.C. 41301 to conduct charter foreign air transportation of persons, property and mail between Switzerland and the United States, either directly or via intermediate points in other countries, with or without stopovers and beyond; and other charters pursuant to 14 CFR 212 of the Department's regulations. (The applicant proposes to operate these services using small aircraft.)

By:  Paul Gretch

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Jersey European Airways (UK) Limited, Trading as FLYBE / Jersey European Airways (UK) Limited and Delta Air Lines, Inc.

Hereby apply for an amendment to the exemption authority granted to FlyBE on September 10, 2001 and November 19, 2001 by Notices of Action Taken in Docket OST-2001-10451, and a new statement of authorization to Delta authorizing blind-sector FlyBE codeshare service on Delta flights between Brussels, on the one hand, and Atlanta and New York (JFK), on the other hand, beginning on or about February 21, 2003. The Joint Applicants respectfully request that the Department approve this application as soon as possible.

Specifically, the Joint Applicants request the following authority:

• (a)  amendment to FlyBE's exemption from 49 U.S.C. § 41301 authorizing FlyBE to engage in scheduled foreign air transportation of persons, property and mail between points in the United Kingdom (excluding London Heathrow and Gatwick airports), on the one hand, and Atlanta and New York, on the other hand, via the intermediate point Brussels, Belgium; and

• (b) a statement of authorization under 14 C.F.R. Part 212 authorizing Delta to display FlyBE's designator code on flights operated by Delta between Brussels, on the one hand, and Atlanta and New York, on the other hand.

Jersey European Airways (U.K.) Limited formerly operated under the trade name "British European."

Counsel:  Shaw Pittman, Robert Cohn, 202-663-8060, Special Counsel for Delta and Jersey European

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KLM Cityhopper B.V.

Application of KLM Cityhopper B.V. pursuant to 14 CFR 212 and Subpart C, requesting a statement of authorization and an exemption from 49 USC 41301 permitting KLM Cityhopper to transport persons, property and mail under the designator codes of Northwest and Continental Airlines, Inc. between points in the Netherlands and points in Third Countries.

Hereby requests the following operating authorities: 

• (i) a statement of authorization under 14 C.F.R. 212 permitting KLM Cityhopper to display Northwest Airlines, Inc.'s designator code on KLM Cityhopper flights operated between points in The Netherlands and points in third countries;' and 
• (ii) an exemption from 49 U.S.C. 41301 permitting KLM Cityhopper to transport persons, property and mail under the designator codes of Northwest and Continental Airlines, Inc. between points in The Netherlands and points in third countries.

KLM Cityhopper will not sell seats in its name for travel to or from the United States and will not operate its aircraft to any U.S. point. Similarly, neither Northwest nor Continental will sell seats in their names on KLM Cityhopper's flights for travel in local Netherlands-third country markets.

KLM Cityhopper already holds a statement of authorization permitting it to display Continental's designator code on KLM Cityhopper's flights operated between points in The Netherlands and points in third countries. See, Notice of Action Taken, Docket OST-2001-10880, November 29, 2001.  KLM Cityhopper was established in 1991 through the merger of two regional airlines: NLM cityhopper, owned by KLM, and Netherlines, a 100%-owned subsidiary company of Nedlloyd. Subsequently, KLM Cityhopper began operations on Amsterdam/Rotterdam-Europe routes, initially with F27 aircraft.  Since its founding in the early 1990s, KLM Cityhopper's business has continued to expand and grow. As of November 2002, KLM Cityhopper's fleet consisted of 15 Fokker 100, 20 Fokker 70 and 19 Fokker 50 aircraft, seating 100, 80 and 50 passengers, respectively. The majority of the passengers traveling on KLM Cityhopper's intra-Europe flights connect in Amsterdam with KLM's worldwide service. KLM Cityhopper employs 1,500 persons.  KLM Cityhopper transported approximately 2.8 million passengers in 2002, expects to serve 5.2 million passengers in 2003 and intends to further expand its route network in the next few years focusing on operations from European regional airports to Amsterdam enabling KLM Cityhopper to continue to feed passengers to KLM and its codeshare partners. KLM Cityhopper also expects to operate directly into major European industrial cities and to other regional airports, carrying local traffic.

Counsel: Squire Sanders, Robert Papkin, 202 626-6600

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Murray Air, Inc.

Correspondence of Murray Air, Inc. submitting its aviation disaster family assistance plan.

Counsel: Sher Blackwell, Donald Kassilike

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Ogden Flight Services Group, Inc.

By its submission in this Docket on January 22, 2003, the Department requested certain documentation pertaining to the citizenship of George Antoniadis. President of Ogden Flight Services Group. Inc. Included with this Supplement No. 8 as Exhibit OFSG-S810 are copies of (i) the naturalization papers conferring U.S. citizenship on Mr. Antoniadis and (2) the passport issued to Mr. Antoniadis by the U. S. Department of State.

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

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Servicio Aereo Leo Lopez

By: Leo Lopez Fernandez, 915 598-8257

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Transatlantic, Transpacific and Latin American Service Mail Rates Investigation

It appears that Delta has inadvertently submitted incorrect cost data to the Department, which has impaired the Department's ability to establish fair and reasonable rates of compensation. In view of the potential harm this may cause to carriers serving the Atlantic, Latin America, and Transborder rate areas, the Department should direct Delta to review and resubmit its data. Upon receipt, the Department should use the new data to establish rates more consistent with the actual costs of operations and associated traffic statistics for these rate areas during YE 6/30/01 and 6/30/02. United further requests that the Department afford carriers an opportunity to review and comment on the proposed rates once they are revised to take into account Delta's corrected cost data.

Counsel:  United and Wilmer Cutler, Jeffrey Manley, 202-663-6670, jmanley@wilmer.com 

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Valley Air Express, Inc.

We have reviewed the financial statements for the reporting period January 2002 to December 2002 and have found that the balance sheet statement is not adequate for our purposes. As I had previously indicated to you, the format in which VAE submitted the balance sheet and income statement did not appear to be adequate for our purposes. Further review of these documents has found that the format used to prepare the balance sheet does not appear to meet Generally Accepted Accounting Principals and, in fact, the balance sheet does not balance. Therefore, we request that VAE file a new balance sheet as of December 31, 2002, which has been prepared in accordance with Generally Accepted Accounting Principals. Further, this balance sheet should be accompanied by a statement as to who prepared it and his or her qualifications and relationship, if any, to the applicant. In addition, this individual should certify that the balance sheet was prepared in accordance with Generally Accepted Accounting Principles.

By: James Lawyer

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Volga-Dnepr J.S. Cargo Airline

Exemption from 49 U.S.C. 40109(g) to operate one one-way emergency cabotage cargo flight from North Island, CA, to Denver, CO, to transport outsized cargo consisting of one Centaur III Launch Vehicle Upper Stage and associated equipment, on or about January 29, 2003, using AN-124 aircraft, on behalf of Lockheed Martin Astronautics. The applicant stated that Lockheed Martin needed urgent delivery of the equipment in order to meet aggressive fabrication and launch integraton schedules; that the cargo is too large for transportation on U.S.-carrier aircraft; and that surface transportation was not feasible because of the time involved, the delicate nature and high value of the cargo, and conditions unsuitable to maintaining system integrity compliance.

By: Read C. Van de Water

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Home | OST Filings by Number | OST Orders and Notices | OST Filings by Carrier
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© Copyright 2001 Airline Information Research, Inc.   All rights reserved.