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Last Updated 03/25/03 08:03 PM

Applications and Renewals: 

Aerotaxis - Mexican Taxi Renewal

AllCanada - Motion to Withhold Information 

Gestair - Spain-US Executive Charters

Hoteles Dinamicos - Mexican Taxi Renewal

Answers and Replies: 

American and British Airways - Replies

Citizenship of DHL Airways - Motion and Reply of DHL

Northwest - Polling Letter

Notices of Action Taken:

Delta, Korean, Comair, and Atlantic Southeast - US-Korea Blanket Codeshare

Notices and Orders:

EAS at Dubuque, IA - Allowing Suspension of Service

Flight Alaska - Consent Order

Republic - Access to Documents

Aerotaxis Metropolitanos, S.A. de C.V.

Counsel: Eugene Smith, 210-590-1630

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AllCanada Express Inc., d/b/a AllCanada Express

The information contained in the document relates to the restructuring plan that would involve the transfer of the business from ACE Limited to ACE Inc. The restructuring being contemplated will be effected by one secured creditor with the knowledge and consent of the other secured creditors of ACE Limited and in accordance with applicable laws.

Counsel: Mysers Alterman, Stephen Alterman, 202-293-1030

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American Airlines, Inc. and British Airways Plc

This second round of answers -- which follow the initial answers filed by these same opposing carriers on December 4, 2002 -- presents nothing new, apart from a few scattered and inconsequential citations to the confidential background documents the applicants submitted on February 28, 2003 in response to the Department's evidence request. The opposing carriers essentially make only two arguments. First, they incorrectly assert that the codesharing authority sought is not authorized under the current U.S.-U.K. bilateral agreement. Second, they intentionally confuse the straightforward and pro-competitive behind-and-beyond code­sharing contemplated by the AA/BA agreement with an applica­tion for antitrust immunity, and urge that approval should be withheld in the absence of open skies at Heathrow. However, the application does not raise issues presented by an ATI request, and therefore does not trigger the Department's policy requiring open skies in exchange for ATI.

The opponents' arguments are more noteworthy for what they do not say. It is not surprising that none of the answers attempts any analysis of the effects of the proposed AA/BA codesharing agreement. Continental, Delta, Northwest, and United/bmi all enjoy extensive codesharing authority with their own international alliance partners. Indeed, Continental, Delta, and Northwest are currently pursuing a vast three-way worldwide codesharing and marketing alliance among themselves. The opposing carriers know full well that the behind-and-beyond codesharing for which approval is sought is pro-competitive and in the public inter­est. Their opposition to AA/BA should be seen for what it is -- an attempt to impede the added competition they will face.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com / British Airways, Paul Jasinski, 347-418-4250, paul.jasinski@bausa.com 

While approval of codesharing for American and British Airways at London Heathrow doubtless would add even more to the financial benefits American and British Airways have received for years from the unique bilateral provisions precluding entry by other airlines at London Heathrow, that same approval would make it even harder for airlines such as Continental to compete for U.S.-London and other U.S.-Europe traffic at a time when all transatlantic carriers are suffering mightily from precipitous declines in demand. Absent comparable relief for other carriers - through effective access to slots, facilities and routes at London Heathrow - the Department should not seriously consider rewarding American and British Airways further for their ability to keep other airlines and cities from securing effective London Heathrow access. Dallas/Fort Worth can achieve its legitimate objectives - access to London Heathrow and codesharing for its hub carrier - by joining efforts to secure true open skies at London Heathrow. Until London Heathrow is opened, the Department should deny the American/British Airways codeshare application.

Counsel:  Continental and Crowell Moring, Bruce Keiner, 202-624-2500, rbkeiner@cromor.com

The Houston Parties share the concerns expressed by other parties in this proceeding that if the Department were to grant this application, the U.K. Government would have fewer incentives to open London Heathrow to additional competition, and to replace the obsolete Bermuda II bilateral agreement with a n Open Skies agreement. The Houston Parties value the enormous efforts made by the Department in recent years to bring about an Open Skies agreement with the United Kingdom and to open up access to Heathrow, and any decision taken by the Department in this proceeding should be consistent with that ultimate goal.

Cities such as Houston continue to be at a serious disadvantage in comparison with cities that enjoy non-stop access to Heathrow. This disadvantage affects not only the air services that are operated from Houston's George Bush Intercontinental Airport; it also impacts the Houston community's ability to fully realize its global economic potential. Heathrow is a premier European airport and the premier U.K. airport. The importance of the U.S.-U.K. market in general, and of Heathrow in particular, to Houston's ability to maintain and enhance its position as a world-class city simply cannot be overstated.

Counsel: Leftwich Douglas, Rebecca Taylor, 202-434-9100, rltaylor@ldpllc.com  

American and British Airways (the principal carrier of our loyal ally in the Iraq war) request for authority is quite reasonable and wholly in conforming with DOT procedure. The opposition is the same group that would oppose anything American and British Airways proposed to do jointly. They have raised nothing which would justify denial of such authority.

The services proposed by American and British Airways will provide a more efficient use of capacity in the marketplace, and additional options for the traveling and shipping public. Moreover, as a result of 9/11 and now the Iraq war, American needs the strengthening involved. As one of American's major hubs, this is vital to St. Louis. American and British Airways will price their codeshare services individually and independently, and these services will clearly enhance competition in the marketplace. In addition, and very importantly, the proposed services will further enhance competition in transatlantic markets, as well as between the oneworld alliance, in which American and British Airways are members, and the Star and SkyTeam alliances.

Counsel: Steptoe Johnson, Richard Taylor, 202-429-6459

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Citizenship of DHL Airways, Inc.

UPS's answer may or may not be frivolous but it surely is disingenuous. UPS knows that its request for publication of Airways' confidential materials is without merit, but if UPS were to succeed in pressuring the Department to grant the request, it would afford UPS, a dominant competitor, unprecedented access to a smaller competitor's sensitive corporate information and provide potentially unlimited additional pretexts for yet more unauthorized pleadings. UPS's filing is correct in at least one respect: as implicitly acknowledged, UPS has no right to obtain Airways' confidential materials. In fact, UPS offers absolutely no basis for the Department to grant such access and violate the confidentiality of Airways' information.

UPS's request for access to Airways' confidential materials is unprecedented and unfounded. UPS has offered absolutely no justification for the Department to grant such access to any third party, let alone UPS, Airways' dominant competitor. Airways made the appropriate request (in terms of timing, form and content) for the Department to withhold Airways' confidential materials from public disclosure, and applicable federal law specifically exempts those materials from disclosure. Airways therefore requests that the Department continue to respect and safeguard the confidentiality of Airways' materials consistent with controlling federal law.

Counsel: Lachter Clements, Stephen Lachter, 202-862-4321

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Delta Air Lines, Inc., Korean Airlines, Comair Inc. and Atlantic Southeast Airlines

By Statements of Authorization issued August 6, 1998 (98-394) and March 11, 2003 (OST-2003-14367) Delta, Comair and Atlantic Southeast were granted blanket authority to code share with Korean Airlines, subject to the condition that they notify the Department no later than 30 days before they begin any new code-share service under the code-share services authorized. The carriers have requested a waiver of this requirement to enable them to begin service immediately upon confirmation by the Department.' There were no answers to the requested waiver. Under these circumstances, we find it in the public interest to grant the requested waiver.

By: Sylvia Moore

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Essential Air Service at Dubuque, Iowa

Mesaba currently operates three nonstop round trips each weekday and five each weekend to Minneapolis/St. Paul with 34-seat Saab SF340 aircraft. Dubuque also receives unsubsidized service by American Eagle Airlines, Inc., which operates three nonstop round trips each weekday and five each weekend to Chicago with 36-seat Embraer ERJ 135 regional jets.

We will allow Mesaba to suspend service at Dubuque as of May 13, as it intends. American Eagle will continue to provide the community with a link to the national air transportation network. As noted earlier, American Eagle operates three nonstop round trips each weekday and five each weekend to Chicago, Dubuque's designated hub, with 36-seat regional jets. American Eagle's capacity of 108 seats each weekday and 180 each weekend easily meets Dubuque's guarantee of 67 daily seats, which represents the maximum seating guarantee under the essential air service program. Consequently, Dubuque's remaining service will remain well above the maximum level that the program was designed to maintain.

By:  Read C. Van de Water

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Flight Alaska, Inc.

Beginning January 2002, and continuing through September 2002, Flight Alaska failed to file the required reports, or failed to file accurate reports. During this period, the Department's staff first attempted to contact Flight Alaska informally regarding the delinquencies, then sent the carrier written warnings. Specifically, the Department's Office of Airline Information (OAI) sent Flight Alaska a warning letter about its delinquent T-100 reports on June 3, 2002. After Flight Alaska's delinquency continued, the Department's Office of Aviation Enforcement and Proceedings (Enforcement Office) sent Flight Alaska a warning letter regarding the same issue on September 3, 2002.

Flight Alaska, Inc., is assessed $20,000 in compromise of civil penalties that might otherwise be assessed for the violations found in ordering paragraphs 2 and 3 above. Of that penalty amount $2,500 shall become due and payable within 15 days of the service date of this order, $2,500 shall be due and payable on April 30, 2003, $2,500 shall be due and payable on July 31, 2003, and $2,500 shall be due and payable on October 31, 2003.

By:  Rosalind Knapp

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Hoteles Dinamicos, S.A. de C.V.

Counsel: Eugene Smith, 210-590-1630

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Gestair, S.A.

Gestair maintains its corporate operations and conducts domestic and international air taxi services from its primary base of operations at Madrid Barajas Airport in Madrid, Spain. Gestair also conducts operations from two other Spanish airfields, Santiago Airport in Santiago de Compostale and Torrejon Air Base in Torrejon.  Gestair estimates that it will operate 30 round trips annually between Spain and the United States with an average load of three passengers per flight. Almost all of this traffic will originate in Spain.  Gestair operates a fleet of 20 executive aircraft, all with Spanish registration. Eight of these aircraft are capable of flight operations to the U.S. These eight aircraft, which are further described in Exhibit C, have a maximum capacity of 12 passenger seats.

Gestair is one of a group of affiliated Spanish companies under Macholfam International, S.L. In addition to Gestair, three of these companies are involved in aeronautical enterprises. Cygnus Air, S.A. is a air cargo carrier that operates DC-8 aircraft within Europe. Compania de Extincion General de Incendios, S.A. "CEGISA") operates Canadair CL-215 aircraft for fire suppression in Spain and Portugal. Audeli, S.A. is a domestic and continental, cargo and passenger air taxi operator. Macholfam International holds a 60% interest in both Cygnus Air and CEGISA. Cygnus Air holds 99% of the issued capital stock of Audeli.

Web Site

Counsel: Roller Bauer, Lee Bauer, 202-331-3300, airlaw@rollerbauer.com 

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Northwest Airlines, Inc.

Letter of Northwest Airlines, Inc. confirming that they have polled all the carriers included on the service list to the application and none intend to file an objection. Under the circumstances, Northwest asks the Department to approve as expeditiously as possible its application. 

Counsel: Megan Rosia

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Republic Airlines, Inc. d/b/a Republic Airlines

On February 24, 2003, Republic Airline, Inc. d/b/a Republic Airlines filed the subject application for a certificate to engage in interstate scheduled passenger operations using 50-seat Embraer EMB-145 aircraft. Certain of the information filed in support of this application was accompanied by a motion under 14 C.F.R. 302.12 (Rule 12) of our regulations requesting confidential treatment.  Republic Airlines maintains that the documents for which confidential treatment is sought are proprietary, commercially sensitive, and confidential in nature and, therefore, qualify for being withheld from public disclosure.

Republic Airlines does not hold any authority at this time. It is, however, a sister company to Chautauqua Airlines, Inc., a commuter air carrier, as both companies are wholly owned subsidiaries of Republic Airways Holding, Inc. The scheduled passenger operations proposed by Republic Airlines will be conducted under the trade name “US Airways Express” pursuant to a Regional Jet Service Agreement between US Airways and Republic. On March 3, 2003, the International Brotherhood of Teamsters, Airline Division, the certified representative of the pilots of Chautauqua, filed a notice of appearance and request for service of documents, as well as affidavits of confidentiality for two members of IBT’s counsel.

By: Read C. Van de Water

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