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Last Updated 04/01/03 05:44 PM

Applications and Renewals: 

Aeronaves - Mexican Taxi Renewal

Continental - Temporary Blanket Waiver of Dormancy Conditions

IATA - Pricing Agreement

Primaris - Certificate of Public Convenience - Interstate & Foreign Scheduled / Motion for Confidential Treatment

US-Russia Overflight Rights - Emergency Application of Northwest

Answers and Replies: 

AllCanada Express - Comments

American and British Airways - Answers

Birdy - Counterpart to Warsaw Agreement

Delta, Northwest, and Continental - Comments

Hong Kong Fifth Freedom All-Cargo

IATA - Comments

Notices of Action Taken:

None

Notices and Orders:

EAS at Cape Yakataga and Icy Bay, AK - Order Tentatively Selecting Carrier and Setting Subsidy Rate

EAS at Carlsbad and Hobbs, NM - Order Extending Service Obligation

EAS at Devils Lake and Jamestown, ND - Order to Show Cause - Tentatively Selecting Great Lakes

EAS at Salina, KS - Order Extending Service Obligation

EAS at Staunton, VA - Order Extending Service Obligation

IATA - Interim Approval

Aeronaves TSM, S.A. de C.V.

Counsel: Daniel Elizondo, 210-927-2581

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AllCanada Express Incorporated d/b/a All Canada Express

We are the proposed Trustee in Bankruptcy of All Canada Express Limited. Involuntary bankruptcy proceedings were commenced against All Canada in December 2002 on the grounds that All Canada had ceased paying its liabilities as they became due From the information available to us, it seems clear that All Canada is not able to pay, and has not been paying, its obligations generally as they become due. The Ontario Supreme Court of Justice in Bankruptcy has scheduled a hearing for next month to determine whether All Canada should be placed in bankruptcy.

By: Melvin Zwaig

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American Airlines, Inc. and British Airways Plc

American and British Airways are asking the Department to grant them blanket, worldwide codesharing authority for flights operated between London and points throughout the world except for transatlantic flights serving the U.S., between the British Airways U.S. gateways and points throughout American's vast network and on transatlantic routes operated by either carrier, but not both, between points in the U.S. and regional airports in the U.K. American and British Airways seek this authority despite the closed skies at London Heathrow airport which preclude flights operated by Continental and U.S. airlines other than American, the world's largest airline, and United, the world's second largest airline. The proposed codeshare alliance between British Airways, the primary U.K. airline and the carrier with by far the largest operations at London Heathrow, and American, the primary U.S. carrier at London Heathrow, would fortify their predominant positions at London Heathrow, reduce incentives for reaching an agreement to open London Heathrow to new competition and jeopardize the competition which would otherwise become available when and if London Heathrow is opened to additional U.S.-flag airlines.

Counsel:  Continental and Crowell Moring, Bruce Keiner, 202-624-2500

Approval of reciprocal AA/BA codesharing will satisfy the strategic objective of the Joint Applicants and enable the two largest U.S.-Heathrow operators to substantially expand their network services at London Heathrow. It will also accommodate the British Government's desire to avoid the pursuit a liberalization policy with the United States. However, it will harm the public interest and significantly erode prospects for future liberalization.

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

The Department cannot overlook the fact that approval of this codesharing agreement will benefit American financially aid that American clearly needs as it seeks to weather perhaps the worst crisis that it and the U.S. airline industry have ever faced. The proposed American/BA reciprocal codesharing will allow American to serve new foreign destinations without incurring new aircraft operating costs, and bring in badly needed new revenue from the carriage of BA passengers on its U.S. domestic flights. This is "bottom line" financial self-help that American needs in these critical times.

Counsel:  Silverberg Goldman, Michael Goldman, 202-944-3305, mgoldman@sgbdc.com 

The Joint Application is a principal component in British Airways' strategic campaign to further entrench itself at London's Heathrow Airport and isolate itself from competition by U.S. carriers. British Airways and American were presented with the opportunity to implement a comprehensive alliance last year, when the Department tentatively approved their joint application for antitrust immunity. The carriers withdrew their antitrust immunity application because they objected to the Department's proposed conditions. They now seek once again, and for the fourth time, to secure broad-reaching codesharing authority. The Department must carefully consider the serious public interest implications that an approval of the Joint Application would have for U.S. aviation policy and the longstanding objective to provide U.S. carriers with critical and competitively meaningful access to the restricted London Heathrow Airport, Europe's most important gateway.

Counsel:  Northwest, Megan Rae Rosia, megan.rosia@nwa.com 

It would be a serious mistake for the Department to approve this code share that will allow the two largest U.S.-Heathrow carriers to solidify their dominant position in that market absent a liberalization of the U.S./U.K. agreement. Given the position taken by American/BA in opposition to the Heathrow access conditions that the Department imposed on approval of antitrust immunity for their alliance, any approval of the unlimited behind/beyond code sharing such as is now proposed will eliminate any incentive for these carriers to move forward with liberalization of the U.S./U.K. agreement.

Counsel:  United and Wilmer Cutler, Jeffrey Manley, jmanley@wilmer.com / bmi and Squire Sanders, Marshall Sinick, 202-626-6651, msinick@ssd.com 

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Birdy Airlines S.A.

By: Frederic Schet

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Continental Airlines, Inc.

As a result of the war in Iraq, air traffic has declined precipitously from levels which were already substantially reduced from previous years, and airlines have been forced to reduce their flight operations substantially to ensure their survival. Like other major U.S. network carriers, Continental is reducing its schedule significantly, and it has regretfully furloughed thousands of its employees since September 11, 2001. Moreover, Continental's executive officer group has been reduced by more than 25 percent and Continental expects to reduce its workforce by another 1,200 employees in 2003. Reductions of international passenger traffic have been particularly acute, and Continental and other airlines are being forced to suspend a number of international flights temporarily. Under these circumstances, carriers should be permitted to reduce their schedules based on an evaluation of economic circumstances and traffic conditions on particular routes without jeopardizing their ability to re-institute flights on limited‑entry routes for which they have been selected by the Department based on long‑term service and market considerations.

Continental urges the Department to grant relief through December 31, 2003, with the normal 90‑day dormancy periods to commence January 1, 2004, so airlines can evaluate the global economic and traffic situation in light of further developments related to the Iraq war and plan ahead to re‑institute operations at the appropriate time rather than feeling constrained to re‑institute flights prematurely during the weak winter traffic season. Should the war end rapidly without significant adverse economic or terrorism consequences, the airlines will remain free to re‑institute service promptly. Continental would not object to reasonable advance reporting requirements requiring airlines to notify the Department by November 15, 2003 what dormancies will continue beyond December 31, 2003, or to the temporary award of authority to other airlines during the dormancy period.

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

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Delta Air Lines, Northwest Airlines, and Continental Airlines

By: Michelle Buchecker

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Essential Air Service at Cape Yakataga and Icy Bay, Alaska

By this order, the Department is tentatively reselecting Ellis Air Taxi, Inc., to provide essential air service at Gulkana, May Creek and, McCarthy, Alaska, for the two-year period from February 1, 2003, through January 31, 2005, at a combined annual subsidy of $231,101.

By:  Read C. Van de Water

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Essential Air Service at Carlsbad, New Mexico and Hobbs, New Mexico

Although we have received proposals, this case will not be completed before the end of the current hold-in period. In accordance with 49 U.S.C. 41734, we will extend Air Midwest's service obligation for an additional 30-day period, or until replacement service actually begins, whichever occurs first.

By:  Randall Bennett

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Essential Air Service at Devils Lake and Jamestown, North Dakota

By this order, the Department is (a) establishing a final rate for the essential air service operated by Great Lakes Aviation, Ltd., at Devils Lake and Jamestown, North Dakota, for the period from October 1, 2001, through December 31, 2002; (b) tentatively reselecting Great Lakes at the two communities for the two-year period beginning January 1, 2003, but reducing the level of subsidized service from 18 to 12 round trips a week as of May 1, 2003; and (c) providing for objections to the Department's tentative reselection and inviting competing proposals from other interested carriers.

By:  Read C. Van de Water

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Essential Air Service at Salina, Kansas

Although Air Midwest has submitted a proposal, this case 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 Air Midwest's service obligation at Salina for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By:  Randall Bennett

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Essential Air Service at Staunton, Virginia

The Department recently issued Order 2003-1-14, January 17, 2003, selecting Colgan Air to provide replacement service at Staunton. Colgan expects to inaugurate its service on or about April 20, 2003. Therefore, since this case will not be completed before the end of the current hold-in period, and, as required by 49 U.S.C. 41734, we must continue to hold Air Midwest in at Staunton for an additional 30‑day period, or whenever Colgan begins replacement service, whichever occurs first.

By:  Randall Bennett

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2002/2003 Hong Kong Fifth-Freedom All-Cargo Frequency Proceeding

Atlas Air, Inc. wishes to advise the Department and the parties that it is withdrawing its request for two Hong Kong fifth‑freedom all‑cargo frequencies in the captioned proceeding. Accordingly, Atlas will not be submitting direct exhibits, which are due today. The decision to withdraw was not an easy one. Because the overall demand for Hong Kong frequencies is quite high, Atlas has decided against making the expenditure of resources associated with its further participation in this proceeding and instead will focus on other commercial opportunities.

In its application for Hong Kong fifth-freedom rights in Docket OST-2002­13761, which has been consolidated into the above-referenced proceeding, Atlas also is seeking expanded U.S.-Hong Kong route authority to reflect the rights made available to all U.S. carriers under last Fall's U.S.-Hong Kong aviation agreement. Atlas is not withdrawing that portion of its request in Docket OST-2002-13761.

Counsel:  Atlas, Russell Pommer, 202-354-3843, rpommer@atlasair.com

Counsel:  Evergreen

Counsel:  Federal Express, Nancy Sparks

Counsel:  Sher & Blackwell, Mark Atwood

Counsel:  Megan Rae Rosia, 202-842-3193

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

By: Axel Frings

Counsel:  UPS and Kelley Drye, David Vaughan

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International Air Transport Association

PTC2 EUR 0504 dated 25 March 2003 Mail Vote 287 - Resolution 010z TC2 Within Europe Special Passenger Amending Resolution from Morocco to Europe PTC2 EUR 0505 dated 25 March 2003 Mail Vote 288 - Resolution 010a TC2 Within Europe Special Passenger Amending Resolution from Portugal to Europe Intended effective Date 1 April 2003

Counsel:  IATA, David O'Connor, 202-293-9292

Correspondence from Tokyo Electron Texas LLC, concerning IATA's Resolution 502. My comment is against IATA's Resolution 502 to change the volumetric rate. As far as I know, nothing has changed in the world of air freight that would be a driver for changing the relationship between volume versus actual weight charges. If this presumption is correct, then IATA's proposed change looks like little more than a somewhat surreptitious way to increase revenues for airlines and freight forwarders.

By: David Kirby

By: John Kiser

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Primaris Airlines, Inc.

Primaris plans to provide an all first class service to various points from and within the United States and from the United States to major foreign cities. Primaris is negotiating with Boeing and Airbus and with leasing companies for aircraft. Primaris expects to enter into initial contracts to lease Boeing 757‑200 aircraft configured for 100 passenger seats. Service will start with three aircraft and grow to fifteen aircraft within twelve months.

Primaris forecasts for its proposed services are for illustrative purposes only. Year I projections include service between New York and eight other major metropolitan markets in the U.S., Canada, France and Germany. Additionally, Primaris projects service in its first year between Boston and London Gatwick. Primaris' longer-term target markets include over thirty major cities in the U.S., Europe, Asia and Canada that are heavily traveled by the business traveler.

Web Site

Counsel: Patton Boggs, Gregory Walden, 202-457-6135

Counsel: Patton Boggs, Gregory Walden, 202-457-6135

Primaris is a new entrant carrier that plans to introduce scheduled, comparatively low‑fare air service between various airports in major and secondary domestic and international markets. Primaris requests authority to engage in foreign scheduled air transportation of persons, property and mail:

• (a) between any point in the United States and any point in France;

• (b) between any point in the United States and any point in the Federal Republic of Germany;

• (c) between any point in the United States and any point in Canada; and

• (d) between Boston and London (Gatwick).

If the Boston-London Gatwick route is not available, Primaris requests authority to conduct scheduled service between Washington, D.C. (Dulles International Airport) and London (Gatwick).  In its first year of operations, Primaris contemplates providing service between the United States and Paris, Frankfurt, London and one or more large cities in Canada, such as Toronto and/or Montreal. Primaris believes that the certificate authority sought in this Application is wholly consistent with the broad scheduled authority available to U.S. carriers under the "open skies" bilateral air services agreements between the United States and France, Germany, and Canada, as well as consistent with the more limited scheduled authority available under the Bermuda II bilateral agreement with the United Kingdom.

Web Site

Counsel: Patton Boggs, Gregory Walden, 202-457-6135

Counsel: Patton Boggs, Gregory Walden, 202-457-6135

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US-Russia Overflight Rights

Northwest Airlines, Inc. hereby applies for an allocation of 14 weekly one-way Russia overflight frequencies (seven in each direction) for flights between Europe and the Indian subcontinent. Northwest requires these frequencies for its existing daily roundtrip service between Amsterdam and Mumbai, as it has been necessary for Northwest to change its Amsterdam-Mumbai routing due to the hostilities in the Middle East and the related closure of airspace over northern Saudi Arabia. Northwest requires these frequencies as soon as possible and respectfully requests emergency expedited treatment of this application.

Northwest has been operating daily service between Amsterdam and Mumbai via a routing that overflies Turkey and northern Saudi Arabia, among other countries. Because of the impending hostilities in Iraq, however, as of March 19 Northwest was required to operate via a more southerly routing that overflies Italy, Egypt and southern Saudi Arabia. This new routing adds approximately one hour of flying time (each direction) to the enroute times.

In lieu of the re-routing via southern Saudi Arabia, Northwest wishes to operate via a routing that overflies Russia, Uzbekistan and Kazakhstan. Northwest needs the requested frequencies in order to operate this routing.

Counsel: Megan Rosia, 202-842-3193, megan.rosia@nwa.com 

Index

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