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Last Updated 02/21/03 07:21 AM

Applications and Renewals: 

American and Finnair - Notice of American of Additional Codesharing

Chautauqua - Transfer of Operating Certificate

Delta - US-Grenada/Antigua/St. Lucia/Belize Renewal

MN Airlines d/b/a Sun Country - JFK-St. Maarten

Polyot - Ukraine-US Cargo Charter Renewal

SATA - Updated Financial Information in Support of Permit (Portugal-US Charters)

Shuttle America - Transfer of Operating Certificate

United - Los Angeles-Guatemala City/San Salvador Codeshare for Air Canada

US-Tokyo Slots - American and UPS / Comments of Continental and Continental Micronesia

Answers and Replies: 

American - Miami-Medillin Dormancy - Answer of Continental

CRS - Comments of US Airways in Support of Proposed Extension

Delta - Rio de Janeiro/Buenos Aires Dormancy - Answer of Continental

Intra-Alaska Class Service Mail Rates - Comments of Tanana

Notices of Action Taken:

British European & Delta - US-UK Codesharing

KLM Cityhopper - Netherlands-Points in Third Countries Codeshare w/ Continental and Northwest

Notices and Orders:

None

American Airlines, Inc.

Given American's position as the carrier holding the most frequencies in restricted U.S.-South America markets, the fact that many of the frequencies held by American have no dormancy conditions attached to them, and American's position as the dominant U.S.-flag carrier in South America and the only U.S.-flag carrier with an antitrust-immunized alliance in South America, it is particularly important that dormancy conditions be applied strictly to American's South American frequencies. Continental does not oppose American's request for short-term relief for two frequencies through June 14, but Continental urges the Department to grant that relief only if the two American Colombia frequencies are returned to the Department for reallocation if American has not reinstituted service using them by June 15, 2003.

Although Continental had hoped to institute daily New York/Newark Liberty-Cali-Medellin service using seven frequencies for which its dormancy waiver expires April 1, 2003, dramatically reduced demand, skyrocketing fuel costs and uncertainties created by terrorist threats and potential warfare will preclude Continental from instituting such service at this time. In light of the Department's policy of denying dormancy waivers, however, Continental is not seeking to extend that waiver. If the Department grants American a waiver beyond June 14, 2003, however, it should extend Continental's Colombia dormancy waiver as well.

Counsel:  Continental and Crowell Moring, Bruce Keiner, 202-624-2615

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American Airlines, Inc. and Finnair Oyj

Hereby give notice that, effective no sooner than 30 days from today, the "AY*" designator code of Finnair Oyj will be displayed on flights operated by American between Dallas/Ft. Worth and Frankfurt, Germany, in order to carry AY/AY* passengers between the U.S. and Finland making connections at Frankfurt.

Counsel:  American, Carl Nelson, 202-496-5647, carl.nelson@aa.com

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British European & Delta Air Lines, Inc.

Relief requested: Amend exemption from 49 U.S.C. 41301 and statement of authorization pursuant to 14 CFR 212 of the Department’s regulations last granted September 10, 2001, to add authority to permit British European to display the airline designator of Delta Air Lines on flights operated by British European between: (1) Shannon, Ireland, and Birmingham, U.K.; (2) Dublin, Ireland, and Exeter, U.K.; (3) Paris, France, and Birmingham/Newcastle, U.K.; 1 and (4) Brussels, Belgium, and Birmingham/Newcastle/Edinburgh, U.K., effective through September 10, 2003.

By: Paul Gretch

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Chautauqua Airlines, Inc.

Chautauqua Airlines, Inc., hereby requests the Department to disclaim jurisdiction over the transfer of the operating authority held by Chautauqua to a newly formed Indiana corporation to be name Chautauqua Airlines, Inc., ("Newco").  Chautauqua requests expedited action on this application to permit the transfer and reissuance of Chautauqua's operating authority to Newco with an effective date of no later than February 27, 2003.

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

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Delta Air Lines, Inc.

Delta Air Lines, Inc. hereby applies under 49 U.S.C. 40109 for renewal of exemption authority to allow Delta to continue to engage in scheduled foreign air transportation of persons, property and mail between the United States, on the one hand, and Grenada, Antigua, St. Lucia, and Belize, on the other hand, and to continue to combine service operated under these exemptions with all other Delta services authorized by existing certificates and exemptions granted by the Department, to the extent permitted by applicable international agreements. 

Delta is herein seeking renewal of these exemptions, which enable Delta to provide U.S.-Caribbean codeshare service in conjunction with Air Jamaica Limited.

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

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Delta Air Lines, Inc.

The Department has required Continental to return both Brazil2 and Argentina3 frequencies for potential reallocation, as well as requiring both Delta and Continental Micronesia to return unused U.S.-Japan frequencies.4 Although declining demand, skyrocketing fuel prices and uncertainties created by terrorist threats and potential warfare have all made operating additional frequencies difficult, if not impossible, the Department has chosen to require the return of dormant frequencies for potential reallocation when economic and operating conditions improve. Although Continental is unable to institute New York/Newark Liberty- Cali/Medellin service before the expiration of its dormancy waiver on April 1, 2003, Continental is not seeking an extension of its dormancy waiver in light of the Department's current dormancy policy. That policy should be applied to the Delta Brazil and Argentina frequencies, just as it has been applied to Continental frequencies, and Delta's request for a dormancy waiver through December 31, 2003, should be denied. If the Department changes its policy and grants Delta's request, however, the Department should also extend Continental's Colombia dormancy waiver for the same period of time.

Counsel:  Continental and Crowell Moring, Bruce Keiner, 202-624-2615

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Extension of Computer Reservation System Regulations

US Airways, Inc. fully supports the Department's proposed extension of the current CRS regulation until January 31, 2004.  See 68 Fed. Reg. 7325 (Feb. 13, 2003).  The CRS regulations have been, and remain, vitally important to preserving fairness in airline service and ticket distribution through CRS's and to preventing substantial anti-consumer, anti-competitive activities.  Permitting the regulations to expire would immediately place the public interest benefits resulting from the CRS regulations at risk.  The Department should not permit the CRS regulations to expire, particularly when the Department (i) has tentatively determined that the CRS regulations -- in some form -- should be maintained and (ii) has not yet completed its pending review of the CRS regulations and is awaiting comments regarding its proposed modifications thereto.  Accordingly, US Airways supports the Department's proposal to extend the expiration date of the current CRS regulations until January 31, 2004.

Counsel:  US Airways and O'Melveny & Myers, Joel Burton, 202-383-5300

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Intra-Alaska Class Service Mail Rates

With the passage of the "Rural Service Improvement Act of 2002," Tanana Air Service is concerned about the lack of leadership from the Secretary.  Because of this void in leadership, the Postal Service is filling that void with their interpretation of what the Act means.  The Postal Service has indicated that they will require daily/weekly traffic reports from each carrier showing time of scheduled departure, time of actual departure, number of passengers on each leg, pounds of non mail freight, pounds of mail, pounds of mail dispatched, and other data to ensure compliance with carriers operating flights under their proposed schedule. They are not giving any assurance that this information will be confidential for any period of time.

As a carrier, we have not received any indication of what the Secretary is going to do, or what a carrier must provide to establish the three new bush mail rates, other than the normal monthly T-100 reports and quarterly financial data. When I ask my contemporaries if they know what is going on concerning the new Act, I receive opinions about what the Act means, but no definite answers. Only the Secretary can say what needs to be accomplished prior to the effective date of the Act. 

By: Fred Ciarlo, 907-474-0301

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KLM Cityhopper B.V.

Relief requested: (1) Exemption from 49 U.S.C. 41301 to conduct scheduled foreign air transportation of persons, property and mail by displaying the airline designator codes of Northwest Airlines, Inc., and Continental Airlines, Inc., on flights operated by KLM Cityhopper between points in The Netherlands and points in third countries; (2) Statement of authorization pursuant to 14 CFR 212 of the Department’s regulations to display Northwest’s airline designator code on KLM Cityhopper-operated flights between points in The Netherlands and points in third countries.

KLM Cityhopper already holds a statement of authorization permitting it to display Continental’s code on KLM Cityhopper­operated flights between The Netherlands and third countries (see Notice of Action Taken dated November 29, 2001, in Docket OST­2001-10880).

By: Paul Gretch

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MN Airlines, Inc. d/b/a Sun Country Airlines

MN Airlines, LLC d/b/a Sun Country Airlines, pursuant to 49 U.S.C. 40109 and Subpart C of the Department's Rules of Practice, hereby applies for a two-year exemption to provide schedule foreign air transportation of persons, property, and mail between New York John F. Kennedy Airport (JFK) on the one hand, and St. Maarten (SXM) on the other hand, with services beginning on May 10, 2003.  Sun Country requests that the Department grant an exemption effective immediately to permit Sun Country to engage in necessary advance marketing and sales activities in this new international market.

Sun Country plans to utilize Boeing 737-800 aircraft with 184 seats.

Counsel: John Fredericksen, 651-681-3948

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Polet Airlines

Polet Airlines hereby applies, pursuant to 49 U.S.C. 40109 and 14 CFR 377.10(c)(3), for renewal of its exemption form the provisions of 49 U.S.C 41301 to engage in charter foreign air transportation of property and mail between points in the Russian Federation and points in the United States, and to perform other charters subject to Part 212 of the Department's Rules.  That exemption was most recently renewed for the stated period of one year, by Notice of Action Taken in this Docket on March 25, 2002.

Counsel: Miller Hamilton, Lester Bridgeman, 251-432-1414

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SATA Internacional 

Enclosed is updated financial information for SATA Internacional to support issuance of its foreign air carrier permit.  SATA has now been operating to the U.S. for almost three years.  During that time, it has developed a strong satisfied customer base and has remained competitive despite the economic travails facing the industry.

Counsel: Baker & Hostetler, David Kirstein, 202-861-1500

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Shuttle America Corporation

Shuttle America Corporation hereby requests the Department to disclaim jurisdiction over the transfer of the operating authority held by Shuttle to a newly formed Indiana corporation to be name Shuttle America Corporation ("Newco").  Shuttle requests expedited action on this application to permit the transfer and reissuance of Shuttle's operating authority to Newco with an effective date of no later than February 27, 2003.

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

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United Air Lines, Inc.

United Air Lines, Inc., request a statement of authorization under 14 CFR Part 212 to display the "AC" designator code of Air Canada on a blind-sector basis on United's flights between Los Angeles, CA, on the one hand, and Guatemala City, Guatemala, and San Salvador, El Salvador, on the other hand.  Air Canada proposes to offer services between points in Canada and both Guatemala City and San Salvador. Air Canada will transport passengers in its own aircraft or in existing code-share flights operated by United between points in Canada and Los Angeles. That traffic will then connect with United's flights between Los Angeles and both Guatemala City and San Salvador. United will display Air Canada's "AC" designator code on United's Los Angeles-Guatemala City and Los Angeles-San Salvador flights, enabling Air Canada to offer online connecting services between Canada and these two points.

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

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U.S.-Tokyo Air Services (Slots at Narita Airport)

American seeks both of the former FedEx slots being made available.  American will use the two slots to increase the frequency level of its Dallas/Ft. Worth-Tokyo combination service to double-daily. American will use 223-seat B777 aircraft (18F/42C/163Y). American intends to display the "JL" code of Japan Airlines on these flights pursuant to its blanket codeshare authorization granted by Notice of Action Taken, OST­1999-4994, February 18, 1999 (subject to 30-day notice).  American is prepared to begin using these addi­tional slots as early as April 7, 2003.

For the 2003 summer season, American applied to the Narita Slot Coordinator for 42 daily Runway B arrival slots and 42 daily Runway A departure slots. American was allocated 40 Runway B arrival slots and 40 Runway A departure slots. American currently has no pending requests for additional Narita slots other than for the two vacated by FedEx.  For the 2002 summer season, American held 32 Runway B arrival slots and 32 Runway A departure slots. American used these slots to operate daily service to Chicago, New York (JFK), and San Jose, and 11 weekly flights to Dallas/ Ft. Worth.

American currently operates this service 11 times a week, and will increase to 12 on March 30, 2003.

Counsel:  American, Carl Nelson, 202-496-5647, carl.nelson@aa.com

Continental and Continental Micronesia have long sought additional slots at Tokyo's Narita Airport, and additional slots are required at Narita for Continental and Continental Micronesia to be fully competitive there.  Under normal circumstances, Continental or Continental Micronesia would have applied, pursuant to the Department's February 10, 2003, Notice in this proceeding, for the two weekly Sunday Narita slots available for the summer season.  Facing dramatically reduced demands due to current economic conditions and the devastation wrought by Supertyphoon Pongsona; substantial ongoing operating losses; skyrocketing fuel costs, security charges and other fees; uncertainties created by terrorist threats and potential warfare; and constrained aircraft capacity resulting from activation of the Civil Reserve Air Fleet, however, neither Continental nor Continental Micronesia is applying for these summer-only Narita slots.

Counsel: Crowell Moring, Bruce Keiner, 202-624-2615

Pursuant to the February 10, 2003, Notice issued by the Department of Transportation, United Parcel Service Co. respectfully submits this Application requesting that it be allocated the two (2) available weekly slots on Runway A at Tokyo's Narita Airport.  UPS has long sought increased authority in the limited-entry Japan market so that it can effectively compete with foreign and U.S. cargo carriers in Japan and other Asian markets. In particular, UPS has worked hard and closely with the Department to gain Japan frequencies and access to slots at the Narita Airport for both Runway A and Runway B. As the Department knows, Runway A is the only Narita runway on which large capacity, wide-body aircraft may operate. Accordingly, UPS' B747 and MD-11 aircraft are prohibited from landing on and taking off from Runway B.

Although the Department was correct in giving priority to cargo operations in the last Runway A allocation proceeding, UPS was deeply disappointed in the outcome-in which it gained only two Runway A slots. The inequity of this distribution is highlighted by the fact that the Department awarded four new Runway A slots to Federal Express, while that carrier already held 140 such slots. UPS respectfully urges the Department to take a first step to begin to ameliorate this inequitable distribution by awarding UPS the two currently available slots.

UPS will commence scheduled services using the additional slots immediately upon their availability (March 30, 2003) using B767 aircraft having a maximum payload capacity of 130,600 pounds, and, as soon as possible thereafter, UPS will transition to MD-11 aircraft having a maximum payload capacity of 206,300 pounds. Given the late notice of the opportunity to operate the two (2) slots at issue, the soonest date on which UPS can schedule MD-11 aircraft and crews is May 25, 2003.

Counsel:  UPS and Kelley Drye, David Vaughan, 202-955-9702, dvaughan@kelleydrye.com 

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