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Last Updated 03/07/03 07:57 AM

Applications and Renewals: 

Jazz Air d/b/a Air Canada Jazz - Registration of Name Change / Withdrawal of Pending Applications

Mesa - Supplements to US-Canada / Phoenix-Guadalajara

Mexicana - Mexico City/Guadalajara/Morelia-Portland / Renewals

Polar Air Cargo - Additional Codeshare Services (US-Australia w/ Qantas)

SATA - Correction to Income for 2002 - Portugal-US Charters

United and Tyrolean - Codeshare Notice

US Airways - Argentina/Uruguay  / Brazil Codeshare with United

Volga-Dnepr - Emergency Exemption

Answers and Replies: 

Cathay Pacific - Reply of Federal Express

Continental and KLM - Withdraw of Application

CRS Extension - Reply of Sabre

Tokyo Narita Slots - Anchorage Intl Airport Letter in Support for UPS

Notices of Action Taken:

AeroCaribe - Cancun/Mexico City/Puerto Vallarta-Austin/San Antonio

American and TWA - Route Integration Renewal

Mexicana - Codeshare with AeroCaribe

Polar - AustralAsia Renewal

Sundance Air Venezuela - Venezuela-US Cargo Charters

UPS - Codeshare Renewal with Nippon Cargo

Notices and Orders:

Caplan v. American - Consent Order and Order of Dismissal

Chautauqua - Order Disclaiming Jurisdiction

DHL - Notice Requesting Comments

EAS at MN, SD, & IA - Extending Service Obligation

Song - Notice of Registration of Trade Name

United and Asiana - Establishing Procedural Dates

Aerovias Caribe, S.A. de C.V.

Exemption from 49 USC section 41301 to permit Aerovias Caribe to conduct scheduled, combination services between: 1) Mexico City, Mexico, and Austin, Texas; 2) the Mexican coterminal points Cancun/Puerto Vallarta, and the U.S. coterminal points San Antonio/Austin, Texas; and a Statement of Authorization under 14 CFR Part 212 to permit Aerovias Caribe to carry Mexicana’s designator code on these flights.

By:  Paul Gretch

Related Docket:  OST-03-14506

Index

American Airlines, Inc. / TWA Airlines LLC

Integrate the exemption and certificate authority currently held by American Airlines with the certificate and exemption authority transferred jointly to American Airlines and TWA Airlines LLC by Order 2001-4-7.

By:  Paul Gretch

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Louise Caplan vs. American Airlines, Inc.

In order to avoid litigation, and without admitting or denying the alleged violations, American has agreed to settle these matters with the Enforcement Office and enter into this consent order to cease and desist from future similar violations of Part 382 and the ACAA. By this order, the Department finds that American has, on numerous occasions, failed to provide adequate wheelchair assistance to passengers with disabilities in violation of the ACAA and 14 CFR 382.39. The Department also finds that in some instances the carrier has failed to comply with the dispositive response requirements of 14 CFR 382.65. This order, in addition, directs the carrier to cease and desist from similar violations in the future and assesses a civil penalty of $1.2 million in compromise of the penalties otherwise assessable under 49 U.S.C. § 46301. Of the $1.2 million assessed penalty, American must pay $25,000 within 30 days of the service date of this order; American must pay an additional $75,000 within 12 months of the initial payment of $25,000; $800,000 shall be credited to American for the work it has already done since this investigation began to increase its quality of service to disabled air travelers;3 and $300,000 shall be credited to American for the work it has already done and continues to do to improve wheelchair service at its hub in St. Louis, Missouri.

We have also determined, on review of the materials submitted in the captioned docket and on the basis of our action here, that further investigation of Ms. Caplan’s complaint is neither warranted nor in the public interest. Accordingly, we will dismiss the complaint under 14 CFR 302.406. Although it is our opinion that reasonable grounds exist to believe that American’s conduct with regard to Ms. Caplan may have violated certain requirements of Part 382 and the ACAA, we also believe that the public interest concerns inherent in resolving any such violations are adequately addressed by the settlement reached in this case.5 This settlement renders further investigation of Ms. Caplan’s complaint, through the institution of a formal proceeding, not to be in the public interest.

By:  Rosalind Knapp

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Cathay Pacific Airways Limited

Federal Express Corporation hereby replies in support of the answer of United Air Lines to the application of Cathay Pacific Airways Limited in this docket. For the reasons discussed below and in United's answer, the Department should dismiss the application. Cathay seeks broad exemption authority appropriate in the context of an open skies agreement, which the United States does not have with Hong Kong. Moreover, its application differs from other similar applications in that it is not based on a current designation by its own government and it fails completely to give notice of its intended operations. There is thus no basis for granting the application, which in any event would unfairly grant to Cathay more flexibility to serve the U.S.­Hong Kong market than any U.S. carrier enjoys under the U.S.-Hong Kong air transport arrangements.

Counsel:  Federal Express, Thomas Donaldson, 901-434-6664

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Chautauqua Airlines, Inc.

Chautauqua states that the transfer of operating authority is necessary to complete an intra­corporate reorganization for business and tax purposes and will involve no change in management, ownership, control, operations, financial condition, or citizenship of the carrier. Under the reorganization, Chautauqua’s parent holding company (Republic Airways Holdings, Inc.) established a newly formed Indiana corporation into which Chautauqua will be merged, and the surviving company will also be called Chautauqua Airlines, Inc.

By:  Randall Bennett

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

Exemption from 49 USC section 41301 to permit the applicant to conduct scheduled, combination services between the three Mexican coterminal points Mexico City/Cancun/Puerto Vallarta, and the U.S. terminal point Austin, Texas, by placing its code on flights to be operated by the Mexican carrier Aerovias Caribe, S.A. de C.V. (Mexicana is not requesting authority to conduct any of these U.S. services on its own behalf, and proposes to conduct these U.S. operations only under code-share arrangement with Aerovias Caribe. See Docket OST 2003-14393.

By:  Paul Gretch

Mexicana requests authority from the Department to engage in scheduled combination foreign air transportation between Mexico City/Guadalajara/Morelia, Mexico, and Portland, Oregon. Mexicana will offer scheduled service to Portland six times weekly using Airbus A319 aircraft. Mexicana will begin service to Portland on May 1, 2003

Counsel:  Squire Sanders, Robert Papkin, 202-626-6840

Mexicana holds authority in Docket OST-97-2272 to operate scheduled services between Mexico City, Mexico and Las Vegas, Nevada, and in Docket OST-99-5006 to conduct scheduled transportation between San Luis Potosi, Mexico and San Antonio, Texas.

Counsel:  Squire Sanders, Robert Papkin, 202-626-6840

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Computer Reservation Systems (CRS) Regulations - Extension 

In their comments, Orbitz, United, Northwest, and American have once again trotted out the tired canard that booking fees are, among other things, too high, ever-increasing, and anti­competitive. Sabre and others repeatedly have shown that booking fee increases are reasonable, especially compared to alternative distribution methods. Further, Sabre has shown that booking fee increases have been moderate over time and have been tied to increasing data processing costs, enhanced functionality of global distribution system services, such as E­ ticketing (which help the airlines lower their own distribution expenses) and other increased costs of doing business. As Sabre will detail more fully in it comments on March 17, 2003, in­cremental increases in booking fees barely cover the expense imposed by the increased function­ality offered to airlines – let alone the ever-increasing demand placed by savvy consumers and travel agents looking for the lowest fares possible (with high “look-to-book” ratios placing even more demands on system resources). Increasing message complexity as measured by the number of computational instructions performed on GDSs has increased dramatically. The number of messages per booking also increased dramatically with approximately 70 messages per booking in 1993 to approximately 254 per booking in 2002.

Counsel:  Pillsbury Winthrop, Kenneth Quinn, kquinn@pillsburywinthrop.com, John Gillick, jgillick@pillsburywinthrop.com, Of Counsel:  Ernest Gellhorn, gellhorn@pipeline.com 

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Continental Airlines, Inc. and KLM UK Ltd.

Counsel:  Continental and Crowell Moring, Bruce Keiner, 202-624-2615 / KLM, Paul Mifsud, 202-861-5867

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DHL Airways, Inc.

We seek comments here from all interested parties on the letter from the Inspector General only as it relates to issues pending in this docket, i.e., the citizenship of DHL Airways. Comments must be received on or before March 19, 2003.

This procedure is also consistent with earlier determinations. See Notice dated March 21, 2002, Docket OST-2002-11842 (Delta-KAL-Air France-Alitalia-CSA request for approval of and antitrust immunity for Alliance Agreements); Notice dated September 11, 2001, Docket OST-2001-10387 (American Airlines-British Airways request for approval of and antitrust immunity for an Alliance Agreement).

By:  Read C. Van de Water

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Essential Air Service at Thief River Falls, Minnesota / Watertown, South Dakota / Mason City and Fort Dodge, Iowa

By Order 2002-7-38, July 30, 2002, the Department set short-term final subsidy rates for Mesaba’s hold-in service until further Department action. In addition to Mesaba, Corporate Airlines and Great Lakes Aviation have also submitted proposals, and we are in the process of preparing a final decision. However, these cases will not be completed before the end of the current 30-day hold-in period. Thus, in accordance with 49 U.S.C. 41734(c), we will extend Mesaba’s service obligation at the four communities listed above for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By:  Randall Bennett

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Jazz Air, Inc. d/b/a Air Canada Jazz / Canadian Airlines International Ltd. / Time Air, Inc. d/b/a Canadian Regional

We represent Jazz Air Inc. d/b/a Air Canada Jazz, which is the successor foreign air carrier resulting from a series of consolidations among Canadian carriers. We request that the Department include in Docket OST-2000­8554 the attached letter relating to the registration of a name change from Air Canada Regional, Inc. to Jazz Air Inc. d/b/a Air Canada Jazz and the registration of the following trade names for Jazz Air Inc. - Air Alliance, AirBC, AirNova, Air Ontario, and Canadian Regional.

In addition, we request that the Department dismiss the following applications, as the applicants no longer require the relief requested. As a result of the above-referenced consolidations, both airlines no longer exist.

• Application of Canadian Airlines International Ltd. dated August 18, 1999 seeking renewal of its statement of authorization (Docket OST-1996-1147); and

• Application of Time Air Inc dated August 18, 1999 seeking renewal of exemption authority and renewal of its statement of authorization (Docket OST-1996­1148).

Counsel:  Hogan & Hartson, Sophie Chen, 202-637-5565

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Mesa Airlines, Inc.

On February 21, 2003, Freedom Airlines, Inc., an affiliate of Mesa, submitted an application for exemption authority to engage in scheduled foreign air transportation of persons, property, and mail between the United States and Canada, pursuant to a codeshare arrangement with America West Airlines, Inc. On February 25, 2003, Mesa submitted an application for the same exemption authority.

Counsel:  Mesa, Brian Gillman, 202-685-4051, brian.gillman@mesa-air.com

In January 2003, Freedom Airlines, Inc., an affiliate of Mesa, submitted an application for exemption authority 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. In February 2003, Mesa submitted an application for the same exemption authority.

Counsel:  Mesa, Brian Gillman, 202-685-4051, brian.gillman@mesa-air.com

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Polar Air Cargo, Inc.

Beginning on or after April 4, 2003, Polar will place the "QF" code on a flight or flights operated by Polar between Toledo, Ohio, on the one hand, and Sydney, Australia, on the other. Initially, the flight will operate over a JFK-TOL­HNL-SYD routing.

Additionally, because the parties wish to commence such service earlier - on or about March 15, 2003 - Polar also requests a waiver of the otherwise-applicable 30-day advance notice requirement. Granting such relief still affords interested parties and the Department a full 10 days to evaluate the application and is in the public interest because it will provide shippers and consignees with valuable service options before expiration of the 30-day notice period. Polar intends to poll all air carriers served with this application to ascertain whether any objects to this waiver request.

Counsel:  Atlas, Russell Pommer, 202-354-3843

Renew exemption under 49 U.S.C. 40109 to provide the following service:  Scheduled foreign air transportation of property and mail (a) between the coterminal points New York, Chicago, Anchorage, Los Angeles, Seattle and Honolulu, on the one hand, and Manila, Philippines, on the other, via the intermediate points Khabarovsk, Russia; Auckland, New Zealand; Sydney and Melbourne, Australia; Singapore; and Tokyo, Japan; and (b) beyond Manila to Taipei, Taiwan.

We note that the U.S.-Japan agreement includes, for certain carriers, restrictions on intermediate and/or beyond service; in this regard, Polar can select only one foreign point to serve in conjunction with its Japan services. Polar is currently serving Seoul but can switch service to another point. As of this time, the carrier has not advised the Department of an intention to switch its existing service. We note that the U.S.-Russia agreement includes restrictions on intermediate and/or beyond service and thus, some operations authorized are subject to the discretionary approval of Russia.

By:  Paul Gretch

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SATA Internacional 

This is to advise that there was an error in our letter of February 19, 2003 regarding SATA's net income for the year 2002. The correct net income figure which was reported on the Statement of Operations attached to the February 19 letter should have been $281,556 (€259,870) (at exchange rate of E1 = $1.08345).

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

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Song / Delta Air Lines, Inc.

Part 215 of the Department’s Regulations (14 CFR Part 215) provides that any carrier wishing to use an alternative trade name must first register that name with the Department. The rule further states that the Department may register such name after the carrier gives notification of the proposed use of the name to similarly named carriers.

Delta Air Lines, Inc. (Delta) is a certificated air carrier that holds numerous certificate and other authorities authorizing it to engage in interstate and foreign air transportation of passengers, property and mail. The carrier recently announced plans to begin a new low-cost service using the name of “Song”. On February 11, 2003, Delta filed a request that the Department register “Song” as a trade name for the carrier to use in its air transportation operations. Delta advises that it knows of no other certificated, commuter or foreign air carrier using a similar name. 

After reviewing our files, we have identified no other air carriers using a name similar to “Song”. Under these circumstances, we hereby register “Song” as a trade name to be used by Delta in its certificated air carrier operations.

By:  Randall Bennett

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Sundance Air Venezuela, S.A.

Renew exemption from 49 U.S.C. 41301 to conduct charter foreign air transportation of property and mail between Venezuela and the United States, and other charters pursuant to 14 CFR 212 of the Department's regulations, using wet-leased aircraft.

By:  Paul Gretch

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

We have now finished our initial review. We find that the application is now substantially complete. We will require that answers to the application be filed no later than 21 calendar days from the issue date of this Notice, and that replies be filed no later than 7 business days after the last day for filing an answer.

By:  Read C. Van de Water

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United Air Lines, Inc. and Tyrolean Airways

United and Tyrolean hereby notify the Department that United's "UA" designator code will be placed on flights operated by Tyrolean:

+ between Vienna (VIE) and Skopje (SKP)

Counsel:  Shaw Pittman, J.E. Murdock, 202-663-8000 for Delta / Wilmer Cutler, Jeffrey Manley, 202-663-6000 for United

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United Parcel Service, Co.

Renew exemption under 49 U.S.C. 40109 to provide the following service:  Scheduled foreign air transportation of property and mail between any point or points behind the United States, via any point or points in the United States, and any intermediate point or points, and any point or points in Japan, and any point or points beyond Japan. UPS requests the right to integrate such authority with its other certificate and exemption authority to provide foreign air transportation. UPS states that the requested authority will be used solely in conjunction with a code-share agreement between UPS and Nippon Cargo Airlines Co., Ltd.

By:  Paul Gretch

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US Airways, Inc.

US Airways plans to code-share on scheduled United services between the United States and Argentina, initially on United's Miami-Buenos Aires, Washington (Dulles)-Buenos Aires, and Miami-Buenos Aires-Montevideo services. US Airways may, in the future, code-share on other U.S.-Buenos Aires and/or U.S.-Montevideo services by United as opportunities present themselves. Accordingly, US Airways seeks broad "all U.S. points" authority in order to obviate the need to file another application (requiring additional time and Department resources) in the future should such additional code-share services be warranted.

With respect to the exemption authority sought by US Airways, the Department has previously granted similar authority to U.S. carriers for code-share services to Argentina. See, e.g., Notice of Action Taken (Docket OST-01-9661) (June 6, 2001) (Northwest's exemption authority for Newark-Buenos Aires, to be operated under a code-share agreement with Continental on flights operated by Continental). The Department has also awarded broad Uruguay authority to U.S. carriers. See, e.g., Notice of Action Taken (Docket OST-96-1353) (March 6, 2002) (American's exemption authority for Uruguay service).

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

US Airways plans to code-share on scheduled United services between the United States, on the one hand, and Rio de Janeiro and Sao Paulo, Brazil, on the other hand. Initially, US Airways plans to place its designator code on United's Washington (Dulles)-Sao Paulo-Rio de Janeiro, Miami-Sao Paulo, and Washington (Dulles)-Sao Paulo services. US Airways may, in the future, code-share on other U.S.-Rio de Janeiro and/or U.S.-Sao Paulo services by United as opportunities present themselves. Accordingly, US Airways seeks broad "all U.S. points" authority in order to obviate the need to file another application (requiring additional time and Department resources) in the future should additional U.S.-Rio de Janeiro or U.S.-Sao Paulo code-share services be warranted.

With respect to the exemption authority sought by US Airways, the Department has previously granted similar authority to U.S. carriers for services to Brazil. See, e.g., Notice of Action Taken (Docket OST-96-1353) (July 1, 1996) (American's exemption authority for service between "a point or points in the United States via intermediate points to ... Rio de Janeiro, Sao Paulo ...."); Notice of Action Taken (Docket OST-98-4833) (Feb. 17, 1999) (Northwest's exemption authority for Newark-Rio de Janeiro/Sao Paulo, among others, to be operated pursuant to a code-share agreement with Continental on flights operated by Continental).

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

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

The two available slots were previously allocated to an all-cargo carrier serving the Narita market. Of the current 822 slots available to U.S. carriers at Narita, only 21% are dedicated to all-cargo carriers. Of that 21% of all U.S.-Narita slots allocated to cargo, nearly 18% have been held by a single carrier. As a result, UPS currently has less than 2% of the cargo slots available in Narita. The Department has continued to place a high priority on ensuring that competition exists in all markets. Although the U.S.-Narita passenger market has both sufficient competition and reasonable market access, cargo competition and market access is far more limited.

Award of the two available slots to UPS will create additional opportunities for Alaska's export market. Alaska's exports to Japan, predominantly made up of seafood products, are dependent on greater access to markets, time definite services, and competitive rates on this route. Approval of this application by UPS thereby increases the profitability and efficiency of this route and offers Alaska residents greater access to global markets for Alaskan products.

By:  Morton Plumb, Airport Director

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Volga-Dnepr J.S. Cargo Airline

Volga-Dnepr will operate the flight on behalf of Lockheed Martin as part of an effort to provide urgently needed lift to reach the set destination not later than the scheduled shipment date. Lockheed Martin is shipping the payload to complete aggressive schedules of the Centaur repair activities within the limited time available prior to its return to Cape Canaveral by April 3, 2003 for launch integration. The payload, therefore, must ship no later than the currently set date. Lockheed Martin stands to loose millions of dollars if the shipment does not occur on time, while only the use of Volga-Dnepr's outsized aircraft can make it possible to perform the service in question within the set schedule.

Counsel:  Glenn Wicks, 202-457-7790

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