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Last Updated 02/11/03 07:17 PM

Applications and Renewals: 

Cathay Pacific - Hong Kong - United States

Delta - Argentina/Brazil Dormancy / Mexico Codeshare Renewal with Mexicana

EAS at Quincy, IL - Corporate Airlines Notice of Termination

Mexicana - Mexico City-Laredo Renewal

Answers and Replies: 

None

Notices of Action Taken:

Continental - Route Integration Renewal

Notices and Orders:

None

Form 41:

UPS

Cathay Pacific Airways Limited

Respectfully requests an exemption from the provisions of 49 U.S.C. 41301 to the extent necessary to permit it to engage in (1) scheduled foreign air transportation of persons, property and mail between Hong Kong and a point or points in the United States as coterminal points, serving points in Japan, Korea, Canada, two other points to be selected, and points in five mutually agreed upon countries as intermediate and beyond points, and (2) scheduled foreign air transportation of property and mail between Hong Kong and a point or points in the United States as coterminal points, serving points in Philippines, France, Germany, points in ten other countries to be selected, and two points to be selected as intermediate and beyond points. Cathay fully recognizes that the exercise of the authority requested herein is subject to the conditions and restrictions applicable to Hong Kong SAR Routes 1 and 2, as set forth in Appendix 1 to the October 19, 2002, Hong Kong/United States of America Memorandum of Understanding.

Cathay is a flag carrier of Hong Kong and currently holds a foreign air carrier permit which authorizes combination service between Hong Kong and several U.S. points. Order 92-11-37. It also holds the following exemption authority: a) scheduled foreign air transportation of persons, property and mail between Hong Kong and New York, NY via Vancouver, Canada. OST-95-940. b) scheduled foreign air transportation of property and mail between Hong Kong and the coterminal points Anchorage, AK; Chicago, IL and New York, NY, via Toronto, Canada. OST-95-940. c) scheduled foreign air transportation of persons, property and mail between Hong Kong and San Francisco, CA. OST-98-3950.

Pursuant to the forgoing authority, Cathay currently provides extensive passenger service between Hong Kong and the U.S., serving Los Angeles and San Francisco on a nonstop basis and New York via Vancouver. It also provides all-cargo service between Hong Kong and Anchorage, Chicago, Los Angeles, New York and San Francisco.  In addition, pursuant to a code share arrangement with American Airlines, hie., which was approved by the Department by Notice of Action Taken, dated January 8, 2003, Cathay is holding out single-carrier services to a number of other U.S. points by placing its "CX" designator code on certain flights operated by American.

Counsel: Piper Rudnick, William Evans, 202-371-6030, bill.evans@piperrudnick.com

Index

Compania Mexicana de Aviacion, S.A. de C.V.

Mexicana holds authority in this docket to operate flights from Mexico City to Laredo. Mexicana does not currently serve this market with its own aircraft, but instead serves it on a codeshare basis with Transportes Aeromar. Service is provided three times weekly with ATR 42 aircraft.  Transportes Aeromar holds a statement of authorization in Docket OST-2002-13225 permitting it to display Mexicana's designator code in the Mexico City-Laredo market.

Counsel:  Squire Sanders, Robert Papkin and Charles Donley, 202-626-6840, cdonley@ssd.com

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Continental Airlines, Inc.

Integrate its existing domestic certificate authority, its certificates of public convenience and necessity for Routes 29-F, 59, 82-F, 110, 157, 165, 176, 381, 383, 482, 509, 561, 629, and 659, and its currently held exemptions, so as to permit foreign air transportation of persons, property, and mail involving any points named on the above certificates and exemptions.

By: Paul Gretch

Index

Delta Air Lines, Inc.

Due to adverse economic conditions in the U.S.-Argentina and U.S.­Brazil marketplace, Delta was forced to suspend its daily Atlanta-Rio de Janeiro and Atlanta-Buenos Aires fights on December 1, 2002. These routes are an important component of Delta's Latin American network, and Delta intends to reinstate these services as soon as market conditions permit. Absent the waiver requested here, the frequencies will automatically revert to the Department on March 1, 2003, jeopardizing Delta's ability to plan and implement services in the future. In these circumstances, the requested dormancy waiver through December 31, 2003 is clearly in the public interest.

The Department recently considered and approved a similar application by Atlas Air for dormancy waiver applicable to its U.S.-Brazil all-cargo frequencies. See, Notice of Action Taken dated February 4, 2003, Docket OST-2002-11985. The Department determined that the depressed economic conditions in Brazil warranted relief from the dormancy condition. Those considerations apply with equal force to Delta's waiver request for the U.S.-South American service at issue here.  No other carrier will be adversely affected by Delta's limited waiver request. All current U.S. carrier Brazil and Argentina service needs are fully funded, and there a surplus of unused authority in each of these markets.

Counsel: Delta and Shaw Pittman: Robert Cohn, 202-663-8060

Hereby applies for renewal of an exemption, pursuant to 49 U.S.C. § 40109 and Subpart C of the Department's Rules of Practice in Proceedings, to authorize Delta to continue to engage in scheduled foreign air transportation of persons, property and mail between points in the United States and points within Mexico beyond Delta's authorized Mexican gateway points for transborder services, for the purpose of blind-sector codesharing services operated between the Mexican gateway points and other points within Mexico on services operated by either Delta or Aerovias de Mexico, S.A. de C.V.

Counsel: Delta and Shaw Pittman: Robert Cohn, 202-663-8060

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Essential Air Service at Quincy, Illinois

At the time of the filing of this notice, only Corporate Airlines, Inc., flying as American Connection is providing scheduled air service at Quincy, Illinois. Traffic results have been significantly below the levels needed, and as a result the revenues generated from the flights have not covered the costs of providing the service.

By: Doug Caldwell, 615-223-5644

Index

United Parcel Service Co.

Counsel: Kelley, Drye & Warren, David Vaughan, 202-955-9864

Index

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