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Last Updated 02/26/03 06:47 PM

Applications and Renewals: 

Air Japan - Japan-US Renewal

American - Los Angeles/San Francisco-Beijing/Shanghai Codeshare with China Eastern Renewal

American Trans Air - Name Change to ATA Airlines

EAS at Victoria, TX - Intention to Terminate Service by Continental Express

Mesa - Phoenix-Guadalajara Codeshare with America West/ US-Canada Codeshare with America West

United & Asiana - Motion for Confidential Treatment

Answers and Replies: 

Alaska Bush Mail Rates - Comments of Cape Smythe Air

ATA Airlines - Counterpart to Warsaw Agreement

Cathay Pacific - Answer of United (Hong Kong-US)

CRS - Comments of Galileo International

Delta d/b/a SN Brussels - Designation of Agent for Service of Notice, Process, Orders, Decisions, and Requirements/ Counterpart to Warsaw Agreement

Hooters - Counterpart to Warsaw Agreement

Reagan Washington National Slots - Response of Metropolitan Washington Airports Authority

Notices of Action Taken:

ABACO - US-Bahamas

AEROSABA - Mexico-US Charter

America West - US-Mexico/ US-Mexico

Freedom - US-Mexico

Notices and Orders:

Astral Aviation d/b/a Skyway - Reissuing Certificate

EAS at Excursion Inlet, AK - Extending Service Obligation

IATA - Extension of Comments (OST-03-14480) / Pricing Agreement

ABACO Air Ltd.

Exemption from 49 USC section 41301 to permit the applicant to continue to conduct charter foreign air transportation of persons, property and mail between the Bahamas and Florida, using small equipment.

By: Paul Gretch

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AEROSABA, S.A. de C.V.

By: Paul Gretch

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Air Japan Co., Ltd.

By this application, AJX seeks a further renewal of its exemption authority to conduct scheduled foreign air transportation of persons, property and mail between any point or points in Japan and any point or points in the United States and to conduct charters in accordance with Part 212 of the Department's rules.

AJX filed an application for a foreign air carrier permit on May 22, 2002. See Docket OST-2002-12370. The Department has not yet taken final action on that application.

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

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America West Airlines, Inc.

Exemption for two years under 49 U.S.C. 40109 to provide the following service: Scheduled foreign air transportation of persons, property, and mail between the terminal point Phoenix, Arizona, and Cancun, Mexico.

By: Paul Gretch

Exemption for two years under 49 U.S.C. 40109 to provide the following service: Scheduled foreign air transportation of persons, property, and mail between the terminal point Phoenix, Arizona, and Guadalajara, Mexico. America West proposes to use the requested authority by placing its airline designator code on flights operated by Freedom Airlines, Inc., in the subject market.

By: Paul Gretch

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American Airlines, Inc.

Hereby applies for renewal of its exemption, initially granted by Notice of Action Taken in this docket on June 9, 1999, and renewed for a two-year term on May 3, 2001, authorizing Ameri­can to engage in scheduled foreign air transportation of persons, property, and mail between Los Angeles and San Fran­cisco, California, on the one hand, and Beijing and Shanghai, China, on the other. This authority is used for a codesharing arrangement between American and China Eastern Airlines Corpo­ration Limited, which was approved by Notice of Action Taken (undocketed) on May 8, 1998 for an indefinite term.

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

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American Trans Air, Inc.

Respectfully requests that the Department of Transportation reissue its Certific to of Public Convenience and Necessity and Exemption Authority in the name of ATA Airlines, Inc. with the temporary trade name American Trans Air. ATA intends to change its corporate name to ATA Airlines, Inc.

Counsel:  ATA, Brian Hunt, 317-240-7006

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Astral Aviation, Inc. d/b/a Skyway Airlines

On February 4, 2003, Astral filed an application to reissue its certificate in the name of "Skyway Airlines, Inc. d/b/a Midwest Connect." Astral is a wholly-owned subsidiary of Midwest Express Airlines, Inc., which also filed an application on February 4, 2003, requesting that its certificate be reissued in a new corporate name. Astral is a regional air carrier that provides service in connection with Midwest Express' mainline operations.

By:  Randall Bennett

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ATA Airlines, Inc.  

By: Brian Hunt

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Cathay Pacific Airways Limited

The Department should carefully consider whether it is appropriate to grant Cathay authority to serve fifth-freedom points that are not yet designated or, indeed, even agreed. U.S. carriers are not afforded similar flexibility and must obtain operating authority, designations and frequency allocations before they can exercise rights under the U.S./Hong Kong MOU. Cathay assumes that it will be selected to operate services on routes yet to be named or agreed and will be allocated frequencies sufficient to operate these services. This may well turn out not to be the case and the U.S. should not prejudge these matters by awarding Cathay authority in future.

It would be particularly unfortunate if the Department were to afford Cathay the carte blanche fifth-freedom flexibility which it seeks in its application. As the Department is well aware, fifth-freedom rights were one of the most contentious issues in the recent bilateral negotiations. Throughout those negotiations, Hong Kong strove to limit U.S. carrier fifth-freedom rights for both combination and all-cargo service. Indeed, U.S. carriers were required to give up combination service fifth-freedom rights as part of the agreement reflected in the MOU and are much more restricted in the scope of fifth-freedom rights they are able to exercise than are Hong Kong flag carriers.

United was forced to surrender its fifth-freedom rights to operate between Hong Kong and Delhi as a result of the MOU. Moreover, U.S. combination carriers' fifth-freedom rights are limited to seven named points which may not be changed whereas Hong Kong combination carriers may be authorized to serve as many 10 fifth­freedom points, only three of which are named in the agreement. The Department should not, in these circumstances, favor Hong Kong carriers such as Cathay even more by prematurely granting them authority before their own government has done so or, in some cases, before the U.S. itself has agreed to do so.

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

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

Counsel: Philippe Fontaine

By: Robert Kuijpers

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Essential Air Service at Excursion Inlet, Alaska

By:  Randall Bennett

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Essential Air Service at Victoria, Texas

ExpressJet presently operates three daily roundtrips between Victoria and Houston four days per week and two daily roundtrips three days per week using 37-seat Embraer ERJ 135 aircraft.  The level of essential air service established for Victoria requires two weekday and two weekend flights between Victoria and Houston providing capacity for 40 passengers each weekday and over each weekend period, with at least 62 seats inbound and 62 seats outbound required.  Since no other airline currently serves Victoria, ExpressJet's termination of service at Victoria will eliminate all air service at Victoria.

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

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Extension of Computer Reservation Systems (CRS) Regulations

Galileo agrees that the proposed extension is in the public interest. In the past, many commenters have argued that there is a need for continued regulation of the CRS business. Some now argue that developments in the industry in the last few years, including decreasing airline ownership of CRSs and increasing use of other distribution channels, have changed the competitive landscape of the CRS business. However, one traditional CRS continues to be 100% owned by several major airlines, and these airlines and other large carriers have used their control over distribution channels to further their strategic interests in the airline business through the Orbitz venture. In these circumstances, CRS regulation must continue, at least so long as some systems are owned by airlines. If CRS regulation were to end, the result would be harm to low cost and smaller carriers and to consumers, because airline owners of CRSs would be free to use their systems to increase their dominance of fortress hubs.

Counsel: Covington & Burling, Carolyn Corwin, 202-662-6000, ccorwin@cov.com

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Freedom Airlines, Inc.

Scheduled foreign air transportation of persons, property, and mail between the terminal point Phoenix, Arizona, and the terminal point Guadalajara, Mexico.

By: Paul Gretch

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International Air Transport Association

On February 7, 2003, the International Air Transport Association filed an agreement in the above-captioned docket for approval. Comments would normally be due 21 days from filing, i.e., on February 28, 2003. On February 13, 2003, the High Tech Airfreight Shippers Coalition (the Coalition) submitted a letter seeking extension for a minimum of 90 days beyond the normal 21-day comment period.  Answers to the Coalition’s request would have been due on February 26, 2003. We shortened the answer date on the Coalition’s request to 3 p.m. February 24, 2003.

IATA answered the Coalition's request and stated that while IATA did not object to an extension of 60 days beyond the normal period for comments, the requested 90-day extension was excessive and unnecessary.

We received answers supporting the full 90-day extension from the Coalition from the Health & Personal Care Logistics Conference, Inc., the National Small Shipments Traffic Conference, Inc, and from the National Industrial Transportation League.

In light of the potentially complex analytical issues raised by the IATA application we view it as particularly important to develop an adequate record for decision. In this regard we find it consistent with the public interest to ensure that all interested parties have sufficient time to submit comments. We therefore have decided to extend the comment period on IATA's application for 90 days beyond the date on which comments otherwise would have been due.

Therefore, acting under authority assigned to the Director, Office of International Aviation, 14 CFR 385, we are extending the period for comment on the agreement in the above-captioned docket to May 29, 2003.

By:  Paul Gretch

Members are referred to Memorandum PTC3 0614 dated 3 January 2003 which circulated the TC3 between Japan and Korea Resolutions and are requested to note the following technical correction and to file it with their Government Authorities wherever necessary.

By: David O'Connor, 202-293-9292

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Intra-Alaska Class Service Mail Rates

There are many other concerns about the USPO's interpretations of this Act. There seems to be a lot more questions than there are answers. I am concerned about the way it looks like this is to be implemented, and would ask that it be looked into.

By:  Grant Thompson, 907-852-8333

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Mesa Airlines, Inc.

Hereby applies for a two-year exemption from 49 U.S.C. § 41101 and any other provision of the Department's rules, authorizing Mesa to engage in scheduled foreign air transportation of persons, property, and mail between Phoenix, Arizona - Guadalajara, Mexico, pursuant to a codeshare arrangement with America West Airlines, Inc. under which Mesa's flights in this market will carry America West's two letter designator code. Mesa requests that its exemption be issued as soon as possible so that Mesa can obtain the necessary approvals from the Government of Mexico and begin offering new service.

Mesa Airlines, Inc. has operated the Phoenix, Arizona - Guadalajara, Mexico route using CRJ Model 200, 50 seat aircraft under a codeshare agreement with America West for approximately two and a half years. This application, if granted, will authorize Mesa to operate the CRJ Model 700, 64 seat aircraft and other larger aircraft in this market.

By: Brian Gillman, 602-685-4051, Brian.Gillman@mesa-air.com 

Hereby applies for a two-year exemption from 49 U.S.C. § 41101 and any other provision of the Department's rules, authorizing Mesa to engage in scheduled foreign air transportation of persons, property, and mail between any point or points in the United States and any point or points in Canada, pursuant to a codeshare arrangement with America West Airlines, Inc. under which Mesa's flights in these markets will carry America West's two letter designator code. Mesa requests that its exemption be issued as soon as possible so that Mesa can obtain the necessary approvals from the Government of Canada and begin offering new service.

Mesa intends to operate under a codeshare agreement with America West, using CRJ Model 700, 64 seat aircraft. Mesa reserves the right to serve this route with other aircraft from its fleet.

By: Brian Gillman, 602-685-4051, Brian.Gillman@mesa-air.com 

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PACE Airlines d/b/a Hooters Air

By: Darrell Richardson

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Ronald Reagan Washington National Airport - Establishment of Slot Proceeding

The exemption slots that were allocated in these proceedings were previously operated by Midway Airlines or by Spirit Airlines. For the reasons stated in the Order, neither airline was able to continue to use these exemption slots. The Airports Authority supported the Department's withdrawal of these slots and subsequent reallocation. Letter from the Authority of November 23, 2002. The Airports Authority, however, did not take a position in these proceedings as to which airline should receive the exemptions. The Authority now looks forward to AirTran's service at DCA.

By: Edward Faggen

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United Air Lines, Inc. & Asiana Airlines, Inc.

Respectfully requests that the Department withhold from public disclosure the documents that United is filing herewith under seal in the above­captioned proceeding. These documents contain confidential, proprietary and commercially sensitive information. United is submitting these documents to facilitate the Department's processing of the Joint Application of United and Asiana Airlines, Inc. for approval of and antitrust immunity for an Alliance Expansion Agreement filed on January 3, 2003, in this docket.

United/Asiana Code Share and Regulatory Cooperation Agreement and an unredacted copy of page 1 and partially unredacted copies of pages l and 9 of the United/Asiana International Passenger Prorate Agreement. Redacted copies of these agreements were attached to the Joint Application as Exhibits JA-3 and JA-4. The specified pages of the agreements, produced by United in consultation with counsel, are confidential and proprietary.

Counsel: Wilmer Cutler, Bruce Rabinovitz, 202-663-6960, bruce.rabinovitz@wilmer.com 

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