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Last Updated 03/27/03 10:49 AM

Applications and Renewals: 

Rosenfeld v Delta - Complaint

Western Express - Canada-US Renewal

Zip Air - Canada-US Supplement to Emergency Exemption - Air Operator Certificate

Answers and Replies: 

Atlantic Coast - Request for Waiver

Aviation Ventures - Withdrawal of Application

CRS - Comments

Citizenship of DHL  - Motions of FedEx and UPS

EAS at Athens, GA - Correspondence from Athens Airport

EAS at Carlsbad, NM - Correspondence in Support of Mesa

EAS at Quincy, IL - Proposal of Corporate Airlines/ Response of Mesa

Gestair - Counterpart to Warsaw

Swiss and America - Blanket Codeshare

Notices of Action Taken:

American - Miami-Medellin Dormancy Waiver

Notices and Orders:

2002 US - Mexico All-Cargo Exemption - Order to Show Cause

IATA - Order

US Airways - Consent Order

2002 U.S. - Mexico All-Cargo Exemption Service Case

We have tentatively decided to select Express.Net to provide scheduled all-cargo air transportation services in the U.S.-Mexico market. In addition, we have tentatively decided to award backup authority to Atlas.

Both Express.Net and Atlas propose to provide a significant number of weekly flights, each doing so over two different U.S.-Mexico routings, using large A-300 and B-747 aircraft, respectively. In contrast, Capital Cargo proposes to provide half the number of weekly U.S.-Mexico flights over a single U.S.­Mexico routing, using narrow-body B-727 aircraft. Although Capital Cargo argues that it is the only applicant that has presented a well-measured proposal that is sustainable given the current market circumstances, we tentatively find that this argument is outweighed by the benefits of the Express.Net and Atlas proposals, which we tentatively believe should also be sustainable in the market. The available U.S.-Mexico all-cargo designation opportunity is a valuable operating right obtained. through negotiations in exchange for operating rights for Mexican carriers, and the public interest favors maximum use of this limited-entry route right. Given the importance of this authority, we tentatively believe that Capital Cargo's more limited proposal would offer fewer benefits than the proposals of Express.Net and Atlas, as explained below, and, thus, we tentatively conclude that Capital Cargo should not be selected in this proceeding.

By: Susan McDermott

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American Airlines, Inc.

By Order 2001-5-26, the Department awarded American certificate authority and an allocation of seven weekly frequencies to operate services in the Miami-Medellin market beginning no earlier than October 1, 2002. These frequencies were subject to a dormancy condition that any frequencies not used for a period of 90 days (after they became available on October 1, 2002) would revert automatically to the Department for reallocation. On February 19, 2002, American sought relief from the condition in its certificate and frequency award so as to accelerate the startup of its Miami­Medellin service to June 1, 2002, citing a Diplomatic Note from the Government of Colombia. The Department granted American an exemption to accelerate the start-up date for all seven of its frequencies to June 1, 2002. (See Notice of Action Taken dated March 7, 2002, in Docket OST-2002­11620.) However, under the terms of the Diplomatic Note, only five of the seven frequencies would become effective on June 1, 2002, while the remaining two would become effective on October 1, 2002. By Notice of Action Taken dated August 26, 2002, the Department granted American a waiver from the 90-day dormancy condition for the other two frequencies, until October 1, 2002. American began Miami-Medellin service on June 1, 2002, with five weekly flights and began daily service on October 1, 2002. American temporarily reduced its Miami-Medellin service from daily to five weekly flights on January 16, 2003. The 90-day dormancy period for two frequencies would expire on April 16, 2003. American states that it intends to resume daily nonstop Miami-Medellin service on June 14, 2003, and requests a waiver from the 90-day dormancy condition for two of its frequencies until June 14, 2003.

Continental Airlines filed an answer stating that it does not object to American's request for a waiver for the short-term period ending June 14, 2003, but urges the Department to grant relief only if the two frequencies are returned to the Department for reallocation if American does not reinstitute service by June 14, 2003.

American's waiver from the dormancy condition is effective through June 14, 2003, or until the date on which American resumes service with each of the frequencies, whichever occurs earlier. As to any frequency with which American does not begin service by June 14, 2003, its allocation with respect to that frequency will expire automatically.

By:  Paul Gretch

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Atlantic Coast Jet, Inc.

While Atlantic Coast Jet would like to have implemented more of its business plan than it has been able to accomplish to date, the events impacting the air transportation industry in the past few months have affected Lhe timing of the execution of these plans. Despite these unprecedented pressures, including but not limited to the bankruptcy filing of the largest code-share partner of Atlantic Coast Airlines and concerns about the outbreak of hostilities, progress continues to be made at Atlantic Coast Jet which gives it the confidence to make this request for a further waiver from §204.7.

Counsel: Silverberg Goldman, Robert Silverberg, 202-944-3300

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Aviation Ventures, d/b/a Vision Air

Over the last ninety days Vision has been involved in intensive discussions with the FAA Flight Standards District Office in Las Vegas concerning Visions' pending application for Section 41102 certificate authority. After a thorough investigation of Vision's operating and marketing procedures, Vision has been informed by the FAA that in its opinion Vision is operating properly as an on-demand air carrier, and that no necessity exists for Vision to seek authority to operate as a scheduled air carrier.

By: Eric Zubel

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Computer Reservation Systems

By: Peter Lacy

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Citizenship of DHL Airways, Inc.

On March 25, 2003, DHL Worldwide Expressl announced that it has reached a merger agreement with Airborne, Inc., parent company to U.S. air carrier and certificate holder, ABX Air, Inc. This agreement appears to rely upon a May 2002 opinion by the Department's staff that a similar structure meets U.S. citizenship requirements. Since that opinion is the subject of a separate review and has been heavily criticized, FedEx Express respectfully requests the Department to rescind the opinion and clarify that no one may rely upon it as precedent pending that review.

Counsel:  Federal Express, Thomas Donaldson, 901-434-6664, gbleopeard@fedex.com 

As is well-known and well-documented, Deutsche Post has a history of misusing its profits from its monopoly on first-class mail to cross-subsidize other segments of its organization in competing against private companies. The DOT should require a full disclosure of the source of the funds being used to finance the Airborne acquisition, paying particular attention to whether government sanctioned monopoly revenues are financing the transaction. It would be contrary to the public interest to allow such unfair competition.

What is becoming apparent here is that Deutsche Post has a strategy of rapidly increasing its investment in the domestic transportation infrastructure of the United States. Documents filed with the Department indicate that Deutsche Post has access to monopoly profits and state aid, unavailable to U.S. companies. Further, this docket contains evidence of how Deutsche Post has, in the past, employed clever corporate organizational structures to avoid governmental ownership and control requirements, or, at a minimum to confuse the situation so that review of their actions would be difficult. Given this history of Deutsche Post's past practices, the United States Government should desire a broader understanding of what is transpiring in the case of DHL Airways and ABX, collectively, rather than viewing these situations on an individual case by case basis.

Counsel:  UPS and Kelley Drye, David Vaughan, 202-955-9864, dvaughan@kelleydrye.com

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Essential Air Service at Athens, Georgia

If approved, this request would leave our airport without any air service therefore removing Athens and NE Georgia from that vital link to the National Air Transportation System. Not only would this have devastating affects on the Athens Airport but to this entire community. Therefore we are requesting your assistance through the Essential Air Service Program to keep an air carrier operating at our airport.

By: Tim Beggerly

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Essential Air Service at Carlsbad, New Mexico

By: Lorraine Allen, Vernon Asbill, Robert Forrest, Donald George, Judy Jarratt, Jody Knox, Stephen Massey, Robin Richard, Paul Shoemaker, Fred Woody, Danny York, Ines Triay, Jon Tully, Ned Fikins

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Essential Air Service at Quincy, Illinois - St. Louis, Missouri

By: Douglas Caldwell

Response of Mesa Air Group on behalf of its wholly-owned subsidiary Air Midwest, Inc. to request for proposals 2003-2-26 for competitive proposals between Quincy, Illinois and Kansas City, Missouri.

By: Scott Lyon, 602-685-4368, scott.lyon@mesa-air.com 

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Gestair, S.A.

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

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International Air Transport Association

The agreement increases the service charges for the issuance of prepaid ticket advices, applicable on a worldwide basis, to offset the increased costs of providing this service. PTA's are "the notification by teletype, commercial wire or mail that a person in one city has requested issuance of prepaid transportation as described in the authority, to a person in another city," i.e., a means for a person, at one location to pay for another person's ticket at a different location. 2/ The agreement would increase the IATA-agreed PTA service charge in the United States from $50 to $75, and by various amounts in local currencies in other countries.

By: Paul Gretch

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Irvin Rosenfeld v. Delta Airlines, Inc.

Verified Complaint of Irvin Rosenfeld against Delta Airlines, Inc. pursuant to 49 U.S.C. Section 41705, requesting the Department to initiate enforcement proceedings and order Delta (1) to cease and desist from any actions that violate 49 U.S.C. Section 41705 and its implementing regulations; and, to develop a formal, written policy for accommodating otherwise qualified passengers whose disabilities require them to fly with federally prescribed marijuana and to train its employees in the implementation of this policy.

The federal government prescribes Mr. Rosenfeld medical marijuana as part of the "Investigative New Drug Compassionate Access Program," administered by the Food and Drug Administration. In a March 17, 1983 letter, FDA states that, for medical purposes, the federal government has granted Mr. Rosenfeld an exemption from the prohibition against consuming or carrying marijuana. According to the FDA, "Mr. Rosenfeld's use of [medical marijuana] under the terms of the exemption to our knowledge violates no federal law."

By: Irvin Rosenfeld

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Swiss International Air Lines, Ltd. d/b/a Swiss & American Airlines, Inc.

Swiss International Air Lines, Ltd. d/b/a Swiss hereby provides notice of cease of codeshare services which have been operated under its codeshare arrangement with American Airlines, Inc. Swiss will cease displaying American's "AA" designator code on flights operated by Swiss between Paris and Berne, Switzerland (BRN) on or about March 30, 2003.

Counsel: Condon Forsyth, Thomas Whalen, 202-289-0500

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US Airways, Inc.

Order 2003-3-19, the Department (1) approves the settlement and the provisions of this order as being in the public interest, (2) finds that US Airways, Inc., on a number of occasions violated the requirements of 14 CFR 382.39 by failing to provide prompt and proper enplaning and deplaning assistance, primarily to passengers having mobility impairments, (3) finds that US Airways on a number occasions violated the dispositive response requirements of 14 CFR 382.65 in connection with the violations described in ordering paragraph 2, (4) finds that US Airways, Inc., in the instances described in ordering paragraphs 2 and 3 violated the Air Carrier Access Act, 49 U.S.C. Section 41705, (5) finds that, to the extent that the instances described in ordering paragraphs 2 and 3 occurred in foreign air transportation, US Airways, Inc. violated 49 U.S.C. Section 41301, (6) finds that, to the extent that the instances described in ordering paragraphs 2 and 3 occurred in interstate air transportation, US Airways, Inc. violated 49 U.S.C. Section 41702, (7) finds that the violations described in ordering paragraphs 2 and 3 involved unfair and deceptive practices and thereby violated 49 U.S.C. Section 41712; and, (8) Ordering US Airways, Inc. and its successors and assigns to cease and desist from further violations of 14 CFR Part 382 and 49 U.S.C. Sections 41310, 41702, 41705 and 41712 by engaging in the conduct described in ordering paragraphs 2 through 7.

US Airways, Inc., is assessed a civil penalty in the amount of $550,000 in compromise of civil penalties that might otherwise be assessed for the violations found in ordering paragraphs 2 through 7 of this order, of which: a. $100,000 shall be credited to US Airways for expenditures above normal levels that it has made to improve its quality of service to disabled air travelers since the initiation of the investigation giving rise to the order, which the Enforcement Office has already reviewed; b. $300,000 shall be credited in accordance with ordering paragraphs 10, 11, and 12 of this order4; and c. $150,000 shall be allowed as a non-priority, pre-petition general unsecured claim to be administered pursuant to the First Amended Plan of Reorganization of US Airways Group, Inc., and its affiliated debtors and debtors-in-possession filed on January 17, 2003, in the U.S. Bankruptcy Court for the Eastern District of Virginia.

By: Rosalind Knapp

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Western Express Air Lines, Inc.

Western Express continues to provide support services to the international cargo and courier community (Federal Express, UPS, DHL Intl., Airborne International, etc.) through the carriage of freight between the United States and Canada fostering commerce consistent with the objectives of the North American Free Trade Agreement. Moreover, the U.S. – Canada Aviation Agreement, encompasses these operations. Consequently, renewal of all elements of Western Express’s authority would be consistent with the public interest.

Western Express’s renewal application is limited in scope and non­controversial. The services Western Express proposes to operate are substantially identical to those it performed during the past year, ie time­sensitive cargo transportation for international cargo and courier companies and transborder passenger services using aircraft having a maximum passenger capacity of not more than 60 seats and a maximum payload of not more than 18,000 pounds.

By: Kenneth Symonds 

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Zip Air, Inc. d/b/a Zip

Zip has received scheduled operating authority from the Canadian Transportation Agency, which applies financial fitness requirements which are quite similar to the Department's own fitness requirements. Under Section 8.1(2) of the CTA's Air Transportation Regulations, carriers applying for initial operating authority must show that they have working capital sufficient to cover their first three months of operations, and all startup costs. Moreover, the regulations also require that such funds be unencumbered and be comprised of liquid assets. Zip satisfied that test, and was found fit by the CTA. Zip received its initial capitalization from Air Canada. A copy of Zip's Air Operator Certificate, amended to include its transborder operating authority, is attached to this Supplement.

Counsel:  Garfinkle Wang, Anita Mosner, 703-294-5890

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