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Last Updated 03/14/03 11:08 AM

Applications and Renewals: 

Linea Aerea de Navegacion Dominicana - Dominican Republic-US Scheduled

Peninter Aerea - Mexico-US Charter Taxi Renewal

United - Dormancy Waiver US-Hong Kong

Volga-Dnepr - North Island-Denver

Answers and Replies: 

American and British Airways - Affidavits of Counsel for Continental

CRS - Comments

EAS at Massena, New York - Reply of New York DOT

Kalitta Air/Reliant - Information Request

Zip - Counterpart to Warsaw Agreement

Notices of Action Taken:

Aero Rey - Mexico-US

American and Iberia Lineas - New York/Chicago - Washington

Delta  - US-Mexico

Notices and Orders:

CRS - Correction

Intra Alaska Bush Service Mail Rates - New Dockets

EAS at Cape Yakatage, Alaska, and Icy Bay, Alaska - Order Tentatively Selecting Carrier

Aero Rey, S.A. de C.V.

By: Paul Gretch

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American Airlines, Inc. and British Airways Plc

Counsel:  Crowell Moring, Thomas Bolling, Lorraine Halloway, Bruce Keiner

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American Airlines, Inc. and Iberia Lineas Aereas de Espana, S.A.

Display the IB* designator code of Iberia Lineas Aereas de Espana, S.A. on flights operated by American (or its affiliate American Eagle Airlines, Inc.) between New York (JFK) and Chicago, on the one hand, and Washington Reagan National Airport (DCA), on the other.

By: Sylvia Moore

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Computer Reservation Systems

The Department is correcting a notice of proposed rulemaking that appeared in the Federal Register on November 15, 2002 (67 FR 69366). The notice requested comirrents on proposals to change the Department's existing rules on airline computer reservations systems (14 CFR Part 255) and on a possible clarification of its Statements of General Policy (14 CFR Part 399) on the requirements for the disclosure of service fees by travel agencies. The notice contained two language errors that misstated the reasoning underlying the Department's proposals and request for comment. This document corrects those errors.

By: Read C. Van de Water

By: Frank Zurline

By: Patricia Humburger

TACA's Demand Forecasting based on MIDT data is used for Schedule Modeling, Revenue Budgeting and day-to-day business studies. Without MIDT TACA would not be able to determine opportunities to fly to new destinations and benefit those with added service options. As well, TACA's day-to-day business studies would be severely hampered; for example, TACA measures pricing promotions by distinguishing between real growth in the market and gain of market share. In this way, TACA can focus on achieving the right balance between customer choice and industry revenues.

In conclusion, if agency level information is not available in MIDT and certain competitors withdraw from the pool of carriers sharing information, TACA will deem MIDT data as useless. Without MIDT, TACA predicts that carriers will focus inwards and become more reactive and less proactive. This will cause carriers to upset a delicate balance in the industry by engaging easily in price wars and therefore taking less chances to stimulate markets.

Counsel: Mullenholz Brimsek, John Brimsek, 202-296-8803, jrb@mbblawyers.com 

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Delta Air Lines, Inc.

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 Aeromexico.

By: Paul Gretch

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Essential Air Service at Massena, New York

NYSDOT supports the request by the communities that the US DOT reconsider its decision to select Option 1 and select Option 2 on a trial basis by awarding a one-year: contract to Air Midwest. This arrangement would provide the service that local travelers have requested and give an opportunity to confirm that the market for Albany flights does exist at Massena and Ogdensburg. We believe the US DOT currently has funds to provide a one-year contract since the budget just approved by Congress and signed by the President provides EAS program funding at the same level as last year, $113 million. A one-year contract would allow the US DOT to react to possible budget adjustments in the future.

By: Richard Chimera

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Essential Air Service at Cape Yakatage, Alaska, and Icy Bay, Alaska

By Order 2001-1-15 issued January 19, 2001, the Department established a final subsidy rate for Gulf Air Taxi, Inc., for the provision of scheduled air service under the Essential Air Service program at Cape Yakataga and Icy Bay, Alaska. That rate was later amended by Order 2002-2-13, issued February 15, 2002, and expired on October 31, 2002. The carrier has not been compensated for services provided at Cape Yakataga or Icy Bay after that date. By Order 2002-12-26, issued December 31, 2002, the Department selected Cordova Air Service, Inc., to replace Gulf Air Taxi at these communities. In accordance with that order, Cordova Air Service replaced Gulf Air Taxi on February 3, 2003.

By: Read C. Van de Water

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Intra-Alaska Class Service Mail Rates 

Notice, the Department decided for administrative convenience to inaugurate new dockets as of March 17, 2003, for Mainline Mail Rates (OST-2003-14694) and Bush Mail Rates (OST-2003-14695), respectively. Parties referring to filings in the previous dockets should state the date filed in the previous docket(s) and request incorporation. All pleadings after the above date should be filed in the new dockets.

By: Read C. Van de Water

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Kalitta Charters II, LLC and Reliant Airlines, Inc.

KCII estimates that each aircraft will operate approximately 50 block hours per month, for an average daily utilization of approximately 1.6 block hours (based on a 30-day month). We note that such utilization is quite low and is lower than that reported to us in the recent past by most other carriers operating similar equipment. For instance, during its last full year of operations (2001), Reliant itself reported to the Department a daily aircraft utilization in the range of 3.62-4.25 hours (domestic operations) and 2.81-5.45 hours (international operations). Therefore, we ask the applicant to detail the assumptions made in determining its block hour forecast, including the primary charter market(s) anticipated and the number of flights operated and amount of cargo carried per week in each market. Further, KCII should state why we should accept the company's forecast as reasonable.

By:  Air Carrier Fitness, Delores King

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Linea Aerea de Navegacion Dominicana, S.A.

Lan Dominicana anticipates beginning U.S. operations on May 15, 2003, when it will inaugurate service between Santo Domingo and Miami. In addition, Lan Dominicana's service plans call for operations from Punta Cana to Miami/New York and from Santo Domingo to New York and Puerto Rico. In the Santo Domingo-Miami market, Lan Dominicana estimates average annual passenger totals at 45,346 and cargo of 8,000 kg. Annual revenues are estimated at US$8,160,000.

Lan Dominicana intends to operate daily roundtrip scheduled service between Santo Domingo and Miami utilizing B767-300 aircraft wet-leased from Lan Chile S.A." Consistent with its Dominican license and the terms of the bilateral agreement between the United States and the Dominican Republic, Lan Dominicana requests from the Department an exemption permitting it to engage in the scheduled foreign air transportation of persons, property and mail (i) between Santo Domingo and Punta Cana, on the one hand, and the coterminal points New York and Miami, on the other hand; and (ii) between Santo Domingo, on the one hand, and San Juan, on the other hand. Lan Dominicana requests that any exemption granted by the Department remain in effect for at least one year.  Maintenance on Lan Dominicana's B767-300 aircraft will be performed by Lan Chile, S.A.

Counsel: Squire Sanders, Marshall Sinick, 202-626-6651

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Peninter Aerea, S.A. de C.V.

Counsel: Juilo Santos, 011-52-81-8319-7784

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United Air Lines, Inc.

Upon conclusion of the most recent amendment to the U.S./Hong Kong ASA in October 2002, United applied for and was granted an allocation of seven weekly fifth-freedom frequencies to operate daily service with fifth-freedom traffic between Tokyo, Japan, and Hong Kong. See Notice of Action Taken dated November 22, 2002. United's allocation is subject to the Department's standard dormancy condition, which provides that if United does not begin service by April 6, 2003, or if any of its frequencies are not used for a period of 90 days once inaugurated, they will automatically revert to the Department.

United hereby requests a waiver of this dormancy condition for a period of one year. Absent the requested waiver, United's seven frequencies would revert to the Department on April 7, 2003. United is presently in the process of restructuring and realigning its operations in response to the severe and ongoing economic downturn affecting the industry. Under these circumstances, United is not in a position to commence additional fifth-freedom Tokyo-Hong Kong operations in the current soft market, but hopes to do so when the market strengthens and United's reorganization has been implemented. The requested waiver will enable United to promptly implement the new service when conditions warrant. As United has long been the only U.S.-flag carrier willing to provide nonstop U.S.-Hong Kong service, the Department should grant the requested waiver to facilitate United's efforts to develop and expand its Hong Kong operations as part of its recovery.

Counsel:  Wilmer Cutler, Jeffery Manley, 202-663-6670, jmanley@wilmer.com 

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Volga-Dnepr J.S. Cargo Airline

The outsized cargo payload to be transported by Volga-Dnepr from North Island to Denver will consist of one each Lockheed Martin Astronautics ("LMA") Centaur III Launch Vehicle Upper Stage (C207) payload and associated equipment, with the total combined weight of approximately 45,000 pounds. The Centaur III Launch Vehicle Upper Stage (C207) in its shipping configuration measures 52' long, 12' wide and 14' high, and weighs approximately 19,000 pounds. The associated ground support equipment weighs 26,000 pounds. The payload as described cannot be accommodated by domestic commercial carrier aircraft.

Counsel:  Wicks Group, Glenn Wicks, 202-457-7790

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Zip Air, Inc.

By: Kenneth Goosen

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