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OST Docket Filings for March 31, 2003 |
Last Updated 04/01/03 10:26 AM
Applications and Renewals:
Air Jamaica - Jamaica-Cincinnati/Memphis Codeshare Renewal with Delta
American and Swiss - Codeshare Notice
Answers and Replies:
Continental - Answers of American and United (Temporary Blanket Dormancy)
Hong Kong Fifth Freedom - Revised Exhibit of FedEx
Northwest - Motion for Confidential Treatment
Transatlantic, Transpacific and Latin American Mail Rates - Motion of American for Immediate Action
Wendell Ford Aviation Investment and Reform Act - Certification of Comair
Notices of Action Taken:
American - US-India
Notices and Orders:
Continental, Delta, and Northwest - Termination of Review
EAS at Carlsbad, NM - Order Selecting Carrier
EAS at Carlsbad and Hobbs, NM - Extending Service Oblication
EAS at Excursion Inlet, AK - Extending Service Obligation
EAS at Thief River Falls, MN/Watertown, SD/Mason City and Fort Dodge, IA - Extending Service Obligation
| OST-97-3051 | March 31, 2003 | Application for Renewal of Exemption Authority | Scheduled Combination Service between Jamaica and Cincinnati/Memphis - Codeshare with Delta Air Lines |
Hereby applies for renewal of its exemption authority to conduct scheduled foreign air transportation of persons, property, and mail between Kingston and Montego Bay, Jamaica, on the one hand, and Cincinnati, Ohio and Memphis, Tennessee, on the other. Air Jamaica currently plans to continue operating these JamaicaCincinnati and Jamaica-Memphis services under its code-share arrangement with Delta Air Lines, Inc.
Counsel: Hogan & Hartson, George Carneal, 202-637-6546, gucarneal@hhlaw.com
| OST-01-9167 | Filed February 6, 2003 Issued March 31, 2003 |
Notice of Action Taken | US - India |
Scheduled foreign air transportation of persons, property and mail between points in the United States and points in India, via Zurich, Switzerland. American intends to operate this service under a code-share arrangement with Swiss International Air Lines.
By: Paul Gretch
American Airlines, Inc. and Swiss International Air Lines Ltd. d/b/a Swiss
| OST-02-12001 | March 31, 2003 | Notice of American Airlines of Additional Codesharing Services | Statements of Authorization (Blanket Codesharing) and Related Exemption Authority |
Effective May 1, 2003, the "LX*" code will be displayed on flights operated by American, TWA Airlines LLC, or American Eagle in the following markets:
Chicago-Memphis
Chicago-Oklahoma City
Chicago-Portland (OR)
Chicago-Tulsa
Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com
| OST-03-14777 | March 31, 2003 | Answer of American Airlines | Temporary Blanket Waiver of Dormancy Conditions |
The relief sought is similar to the dormancy waiver issued by the Department following the terrorist attacks on September 11, 2001. See Order 2001-11-15, November 12, 2001. Current conditions in the aviation industry call for such relief once again.
Continental has requested a blanket waiver until December 31, 2003, with a 90-day dormancy period thereafter. American urges that a blanket waiver be granted through March 31, 2004, followed by a 90-day dormancy period. A waiver only until December 31, 2003, the middle of the low winter traffic season, would be insufficient, even with a 90-day dormancy period to follow. Many summer season routes do not begin precisely on March 31, but start on May 1 or even June 1. Granting a blanket waiver until March 31, followed by a 90-day dormancy period, would far better take into account the realities of summer season scheduling.
Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com
| OST-03-14777 | March 31, 2003 | Answer of United Air Lines | Temporary Blanket Waiver of Dormancy Conditions |
United agrees with Continental that capacity reductions are needed to reflect reduced demand and should be permitted during the present war emergency without regard to dormancy conditions. Those conditions were designed to maximize use of operating rights in market circumstances where carriers would be expected to be seeking opportunities to expand services. In present and reasonably foreseeable circumstances, it is highly unlikely that any U.S. carriers would seek to expand international services. Even if they did, Continental's proposed waiver would allow unused conditional operating rights to be exercised by another carrier under temporary authorities during the dormancy period.
Unfortunately, Continental's proposal is inconsistent with the procedures for establishing the restart date in the previously granted blanket dormancy waiver proceeding. If the Department were to adopt Continental's relief as proposed, the carriers would have to restart their services under the Department's procedures on January 1, 2004 -- in the middle of the winter -- or risk loss of authority due to dormancy conditions.
United urges that the same dates be adopted here to avoid having the waiver end in the depths of low demand during the winter traffic season. Were the waiver scheduled to end in the low-demand winter season, many if not most carriers would be required to file, and the Department staff to review, waiver extension applications to avoid the need to restart international services when they were least needed. An April 1, 2004, date for restart of service is consistent both with the substance of Continental's request and the Department's decision in the previous blanket dormancy waiver.
United believes that a more reasonable result would be to allow carriers a 90-day period from April 1, 2004, to restart services suspended pursuant to the blanket waiver. That would allow carriers to schedule the restart of services after summer demand has begun to build in May and June. United will not, however, relitigate that highly contentious issue in this proceeding. Any carrier seeking to extend its waiver could request authority to do so on or after February 15, 2004, when it would report which services will not be restarted on April 1, 2004.
Counsel: United and Wilmer Cutler, Jeffrey Manley, 202-663-6670, jmanley@wilmer.com
Continental Airlines, Inc., Delta Air Lines, Inc., and Northwest Airlines, Inc.
| Undocketed | March 31, 2003 | Termination of Review of Joint Venture Agreements | Review of Second Proposed Alliance |
On February 28, Delta Air Lines, Northwest Airlines, and Continental Airlines resubmitted their code-share and frequent-flyer program reciprocity agreements to the Department for review under 49 U.S.C. § 41720. The implementation of these two agreements would constitute a key part of the three airlines’ proposed alliance. In their resubmission, the airlines accepted three of the six conditions that the Department had stated were necessary to avoid a formal enforcement proceeding, and they proposed alternative language for the other three conditions. The Department has determined that the alternative language proposed by the airlines adequately addresses the competitive concerns relating to those three conditions. The Department is therefore terminating its current review of the agreements. In reaching this conclusion, the Department is relying on the terms of the agreements, the airlines’ representations that they will compete independently on capacity and fares, and their formal acceptance of the six conditions as modified.
By: Read C. Van de Water
Essential Air Service at Carlsbad, New Mexico
| Order 03-03-25 OST-02-12802 |
Issued March 31, 2003 Served April 3, 2003 |
Order Selecting Carrier | Essential Air Service at Carlsbad, New Mexico |
The Department selects Air Midwest, a wholly-owned subsidiary of Mesa Air group, Inc. (Air Midwest), to provide subsidized essential air service for a prospective two-year period at Carlsbad New Mexico, at an annual rate of $560,070 and an annual, past-period, hold-in rate of $432,979.
In an attempt to balance the community’s demonstrated ability to generate significant traffic levels with our fiscal responsibility for the overall EAS program, we will authorize subsidy for Air Midwest to provide a third (one-stop) round trip each weekday and weekend. We expect the community to work closely with Air Midwest to attempt to restore passenger usage to pre-1998 levels. If traffic levels do not increase significantly over the course of this two-year contract, we would seriously consider reducing subsidy levels to support only the statutory minimum of two round trips a day for the following two-year contract. Based on all of the above, we will select Air Midwest’s Option C, to provide Carlsbad with three round trips each weekday and weekend to Albuquerque; two nonstop and one, one-stop at Roswell, New Mexico, for a new, two-year period starting when the carrier begins to provide the additional round trip to Albuquerque, at an annual subsidy of $560,070, using 19-seat Beech 1900D aircraft.
By: Read C. Van de Water
Essential Air Service at Carlsbad and Hobbs, New Mexico
| Order 03-03-26 OST-02-12802 OST-02-12800 |
Issued March 31, 2003 Served April 3, 2003 |
Order Extending Service Obligation | Essential Air Service at Carlsbad and Hobbs, New Mexico |
The Department extends Air Midwest's service obligation at Carlsbad and Hobbs, New Mexico, for an additional 30 days, through May 23, 2003. 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
Essential Air Service at Excursion Inlet, Alaska
| Order 03-03-23 OST-02-12014 |
Issued March 28, 2003 Served April 2, 2003 |
Order Extending Service Obligation |
Essential Air Service at Excursion Inlet, Alaska |
By: Randall Bennett
| Order 03-03-24 OST-01-10642 OST-01-10644 OST-01-10682 OST-01-10684 |
Issued March 28, 2003 Served April 2, 2003 |
Order Extending Service Obligation | 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
2002/2003 Hong Kong Fifth-Freedom All-Cargo Frequency Proceeding
| OST-02-14049 | March 31, 2003 | Revised Exhibit of Federal Express | 2002/2003 Hong Kong Fifth-Freedom All-Cargo Frequency Proceeding |
| Exhibit FX-105 (Revised) | |||
| Service List |
On March 21, 2003, Federal Express Corporation submitted Direct Exhibits in the captioned proceeding. Upon review of those exhibits, we discovered that Exhibit FX-105 inadvertently contained schedules unrelated to this proceeding, and failed to include other schedules to accurately reflect our proposal. With this letter, we enclose revised pages for the entirety of Exhibit FX-105. The Department and parties should discard the whole of Exhibit FX-105 and replace it with Exhibit FX-1 05 (revised), enclosed with this letter.
Counsel: Federal Express, Bailey Leopard, 901-434-6664
| OST-96-1638 | March 28, 2003 | Motion to Withhold Information from Public Disclosure | Form 41; Schedule B-7 |
Counsel: Megan Rae Rosia, 202-842-3193
Transatlantic, Transpacific and Latin American Service Mail Rates Investigation
| OST-96-1629 | March 31, 2003 | Motion of American Airlines for Immediate Action | Transatlantic, Transpacific and Latin American Service Mail Rates Investigation |
By show-cause Order 2002-12-23 in this docket on December 31, 2002, the Department proposed tentative rates for the current calendar year, based in part on Form 41 data provided by Delta Air Lines, Inc. American and United Air Lines, Inc. both objected to the proposed rates, urging that the underlying data submitted by Delta was inaccurate. On March 19, 2003, Delta filed relevant revised data. The Department should now take immediate action to establish new interim and final rates based on Delta's corrected data in order to provide fair and reasonable compensation to carriers during the present period of intense economic distress.
Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com
Wendell H. Ford Aviation and Investment and Reform Act for the 21st Century
| OST-00-7175 | March 31, 2003 | Supplemental Certification of Comair, Inc. | LaGuardia Regional Jet Service |
| Service List | |||
| Attachment 1 - Supplemental Certification | |||
| Attachment 2 - Proposed LGA Schedules | |||
| Attachment 3 - LGA Flights Operated by Comair | |||
| Attachment 4 - Summary of Overall AIR-21 LGA Exemptions |
In response to the Department's Order, Comair has submitted previous certifications with respect to service between LaGuardia and certain cities. Comair hereby supplements those certifications to reflect: (1) minor changes in certain existing services; and (2) the twenty-four (24) slot exemption allocations assigned to Comair in the FAA lottery held earlier this year. The additional allocations will allow Comair to increase service to cities already served and to begin new service between New York - LaGuardia and three cities: Knoxville, Tennessee; Lexington, Kentucky; and Manchester, New Hampshire. This new and increased service will begin during the period April 6 to April 13.
Changes to Comair's existing AIR-21 slot exemptions are shown in Attachment 3. For the convenience of the Department and the FAA, a summary of all of Comair's AIR-21 LGA operations is shown in Attachment 4. It should be noted that these attachments may indicate numerical or directional imbalances, because some of Comair's LGA flights are operated using regular commuter or air carrier slots which are not shown on the attachments.Counsel: Shaw Pittman, Robert Cohn, 202-663-8060
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