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Last Updated 04/01/03 06:41 PM

Applications and Renewals: 

CAL Cargo - Israel-US All-Cargo Renewal

Clint Aero - Designation of Agent

JetBlue - Motion for Confidential Treatment - Form 41

UPS - Motion for Confidential Treatment - Form 41

Answers and Replies: 

Continental - Reply of Continental (Temporary Blanket Waiver)

CRS - Motion of Sabre for CRS Hearing

Hong Kong Fifth-Freedom All-Cargo - Errata Notice of Polar

Mid-Atlantic - Response to Request for Additional Information (NC Outer Banks Taxi)

Reliant and Kalitta - Amendment to Response to Request for Information

Notices of Action Taken:

None

Notices and Orders:

Transatlantic, Transpacific and Latin American Service Mail Rates  - Request for Comments Regarding New Data Submitted by Delta

C.A.L. Cargo Air Lines Ltd

Hereby applies for a renewal of its exemption from 49 U.S.C. § 41301 to provide foreign air transportation of property and mail between Tel Aviv and New York (JFK) via Liege, Belgium.

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

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Clint Aero Inc.

By: Clinton Shillingford

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Computer Reservations System (CRS) Regulations

The Hearing will permit participants to provide evidence and analysis relevant to the issues raised in the Department’s November 15, 2002 Notice of Proposed Rulemaking . 67 Fed. Reg 69366. For example, the proposed rule depends on a finding that non-airline owned CRSs exercise monopoly market power, that CRS booking fees are “excessive” and supracompetitive, and that travel agents are “locked in” to such CRSs. But the underlying data referenced in the NPRM are in conflict, and the facts and information presented in the comments filed on March 17, 2003 present starkly different evidence. Indeed, although many large airlines repeat these DOT assertions, not one commenter has offered any quantifiable evidence of monopoly market power, supra­competitive pricing, or travel agent lock-in. However, many commenters such as Sabre, travel agents, and independent think tanks have contradicted such claims.

Sabre respectfully requests that the Department set forth its issues and procedures for its Hearing and, in the alternative, that the Department reconsider its partial Denial of Petition of Fact Hearing to the extent that it disallowed any testing of fact assertions in the NPRM or the Comments filed thereon. In light of the voluminous comments submitted in this proceeding, the Department should reconsider its tentative decision to hold its Hearing between now and the due date for Reply comments. Because of the need to reply to a multitude of comments and the timing of religious and school/government holidays a more meaningful discussion would occur if the hearing were held no later than 30 days after reply comments are due, or June 16, 2003.

Cited Sites:  

• FTC Public Workshop on Slotting Allowances and Other Grocery Marketing Practices, http://www.ftc.gov/bc/slotting/index.htm

• Intellectual Property; FTC Public Workshop: Possible Anticompetitive Efforts to Restrict Competition on the Internet http://www.ftc.gov/opp/ecommerce/anticompetitive/index.htm (2002

• FTC Public Workshop: Federal Trade Commission Workshop on Health Care and Competition Law and Policy, http://www.ftc.gov/ogc/healthcare/index.htm (2002)

Counsel:  Sabre and Pillisbury Winthrop, Kenneth Quinn, 202-775-9800, kquinn@pillsburywinthrop.com

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Continental Airlines, Inc.

Continental shares the concerns raised by American and United and supports the American and United requests that the dormancy waiver period be extended through March 31, 2004, and American's request that a 90-day dormancy period commence on April 1, 2004, allowing carriers to reinstitute services during summer peak periods.

Continental recognizes, as United has noted, that Continental is seeking different relief than the Department's previous blanket dormancy waiver provided, since that waiver did not provide a 90-day start-up period after termination of the blanket waiver. Continental and American have urged the Department to change its position in granting the requested waivers.

Counsel:  Continental and Crowell Moring, Bruce Keiner, 202-624-2615, rbkeiner@crowell.com

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2002 Hong Kong Fifth-Freedom All-Cargo Frequency Proceeding

Attached hereto please find corrected versions of the following Polar Air Cargo, Inc. ("Polar") direct exhibits:

PO-302 PO-303, pp. 1,2 PO-304

The corrections relate primarily to Polar's forecast market shares "without award." The "without award" market shares in the direct exhibits were erroneously based on Polar's current schedule, including services operated with the temporary award of fifth-freedom frequencies, rather than on Polar's proposed schedules without any of the requested fifth-freedom frequencies. Consequently, the direct exhibits showed Polar market shares "without award" in markets such as Manila and Penang that would not be served but for the anticipated award of the requested fifth-freedom frequencies. The primary effect of the corrections is to reduce Polar's "without award" market shares to zero in the affected markets.

The primary impact of these corrections has been on the market shares for Polar's services as they would have been without the award of Hong Kong fifth-freedom authority.

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

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JetBlue Airways Corporation

Counsel: Dow Lohnes, Jonathan Hill, 202-776-2000

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Mid-Atlantic Freight, Inc.

This letter is in response to your e-mail of March 26, 2003 requesting additional and/6P clarifying information regarding our application requesting authority to provide scheduled passenger service as a commuter air carrier.

By: Don Goodwin

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Reliant Airlines, Inc. and Kalitta Charters II, LLC.

Through a misunderstanding on the part of Kalitta Charters II, LLC, we understood that Mr. Gregory Bisque had been accepted by the FAA for the Chief Inspector position. The FAA does not feel that Mr. Bisque meets the requirements as stated in Part 119 for Chief Inspector. KCII has asked for a deviation from the regulation and that deviation request is attached to this document.

Counsel: Reliant, Ehlich Foley, Reese Zantop, 248-540-0100/ Kalitta, Tom Warner, 734-544-3400, twarner@kalittacharters.com 

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Transatlantic, Transpacific and Latin American Service Mail Rates Investigation

Order 2002-12-23 established retroactively adjustable interim international mail rates effective January 1, 2003, and also proposed to make those rates final from January 1 through December 31, 2003. American and United objected to that order on January 17 and January 29, 2003, respectively, stating that it appeared that Delta's data were incorrect. On January 30, 2003, Delta acknowledged that its data were indeed incorrect, and requested time to correct it and submit revised data, which it did on March 19, 2003.  In footnote (1) of that submission, Delta states that it "expects that further accounting corrections, if any, identified in the course of the more comprehensive Form 41 review [it is conducting] would have only a de minimis effect on mail rates."

By: Read C. Van de Water

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United Parcel Service Co.

Counsel: Kelley Drye, David Vaughan, 202-955-9864

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