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OST Docket Filings for April 2, 2003 |
Last Updated 04/02/03 07:41 PM
Applications and Renewals:
Belair - US-Switzerland/ Motion for Confidential Treatment
Northwest and Air China - Termination of Codeshare Agreement
Answers and Replies:
AllCanada - Correspondence of BAX Global
Continental - Reply of Northwest - Temporary Blanket Waiver
CRS - Answer of ASTA to Sabre's Motion
EAS at Massena, Ogdensburg, and Watertown, NY - Correspondence from Read C. Van de Water
Wendell Ford Aviation Investment and Reform Act - Certification of US Airways at LaGuardia - Reassigning of Slots
Notices of Action Taken:
Aeromexico - Codeshare Renewal with Delta
Chartright - Canada-US Charter Renewal
Commander Mexicana - Mexican Taxi Renewal
Laker - Bahamas-US Renewal
Lan Dominicana - Dominican Republic-US Scheduled/Wet-Lease
United - US-Hong Kong Dormancy
Volga-Dnepr - Denver-Cape Canaveral
Notices and Orders:
EAS at Akutan, AK - Order Selecting Carrier and Setting Subsidy Rate
EAS at Victoria, TX - Prohibiting Suspension of Service by ExpressJet
Westward Airways - Final Order - Interstate Scheduled Taxi
Form 41 Motions:
Atlantic Southeast | Comair | Continental | Delta
Aerovias de Mexico, S.A. de C.V.
| OST-00-7708 | Filed March 6, 2003 Issued April 2, 2003 |
Notice of Action Taken | Mexico-US Codeshare with Delta Air Lines |
Exemption from 49 USC section 41301 to permit the applicant to continue to conduct scheduled, combination services between: 1) Leon, Mexico, and Atlanta, Georgia; and 2) San Jose de Cabo, Mexico, and Atlanta, Georgia (only by code-share with Delta Air Lines).
By: Paul Gretch
| OST-03-14588 | April 1, 2003 | Correspondence of BAX Global Inc. | Application for Economic Authority to Operate as a Foreign Air Carrier |
All Canada Express has been a provider of ACMI aircraft services to BAX Global for eight years. During this time they have provided excellent service to our Canadian markets. Please be advised that BAX Global Inc. strongly supports the application of AliCanada Express Inc. for economic authority to operate as a foreign air carrier.
By: Dennis McCartan, 419-867-9911
Atlantic Southeast Airlines, Inc.
| OST-99-6475 | March 31, 2003 | Motion for Confidential Treatment Pursuant to Rule 12 | Form 41; Schedule B-43 |
Counsel: Shaw Pittman, Robert Cohn, 202-663-8060
| OST-03-14842 | April 2, 2003 | Application for an Exemption | Switzerland-US Charter Passenger |
| Service List | |||
| Exhibit 1 - Air Operator Certificate | |||
| Exhibit 2 - Operating License | |||
| Exhibit 3 - Volume of Passengers since November 2001 | |||
| Exhibit 4 -Projected Traffic Figures | |||
| Exhibit 5 - Projected Traffic Figures Between US and Switzerland | |||
| Exhibit 6 - Board of Directors, Key Management, and Officers | |||
| Exhibit 7 - Aircrafts Operated | |||
| Exhibit 8 - Profit and Loss Statement | |||
| Exhibit 9 - Balance Sheet | |||
| Exhibit 10 - Projected Profit and Loss Ending October 31, 2003 | |||
| Exhibit 11 - Certificate of Insurance | |||
| Exhibit 12 - Agreement | |||
| Exhibit 13 - Family Assistance Plan | |||
| Exhibit 14 - Letter from Swiss Embassy |
Belair commenced operations in November 2001. It is currently engaging in charter operations from Switzerland to various destinations in Europe, Asia, Africa and the Caribbean. Under the authority it requests herein, Belair plans to operate weekly charters between Zurich, Switzerland and San Francisco beginning June 26, 2003 through September 4, 2003, carrying traffic of both Swiss and U.S. origin, in accordance with Part 212 of the Department's regulations.
Belair is substantially owned and effectively controlled by Swiss nationals. In particular, 100 percent of Belair's shares are owned by Hotelplan International Travel Organization Ltd., a Swiss company. Hotelplan is in turn a wholly-owned subsidiary of another Swiss entity, the Federation of Migros Cooperatives. FMC is owned by 10 regional Migros Cooperatives, each based in a particular geographic area of Switzerland. The regional Migros Cooperatives are principally engaged in a variety of consumeroriented businesses and each is controlled and more-thanmajority-owned by Swiss nationals.
Belair's fleet consists of one B767-300 and two B757-200 aircraft of Swiss registry. The aircraft are owned by International Lease Finance Corp. ILFC leases the aircraft to Hotelplan, a Swiss company located at Habsburgstrasse 9, CH 8031 Zurich, Switzerland, which, in turn, subleases the aircraft to its wholly-owned subsidiary, Belair. All technical maintenance on Belair's aircraft is performed by LTU International Airways, Germany.
The Department has previously approved similar applications for the type of economic authority being requested herein by Belair. See, e.g., Edelweiss Air AG, Notice of Action Taken -- Docket OST-2002-11482 & 11481 (Mar. 19, 2002) (charter service between the U.S. and Switzerland); Aer Turas Teoranta, Order 97-4-28, Docket OST-97-2114 (May 1, 1997) (charter service between the U.S. and Spain); Atlant-Soyuz Airlines, Order 97-428, Docket OST-96-2019 (May 1, 1997) (charter service between the U.S. and Russian Federation); Aerocer, S.A. de C.V., Order 97-6-32, Docket OST-96-1231 (July 2, 1997) (charter service between the U.S. and Mexico).
Counsel: Steptoe Johnson, William Karas
| OST-03-14842 | April 2, 2003 | Motion for Confidential Treatment | Switzerland-US Charter Passenger |
| Appendix A - Index of Withheld Documents |
Counsel: Steptoe Johnson, William Karas
| OST-01-11063 | Filed March 11, 2003 Issued April 1, 2003 |
Notice of Action Taken | Canada-US On Demand Charter Authority |
Exemption from 49 USC section 41301 to permit the applicant to continue to conduct, using small equipment (see below), charter operations, carrying persons, property and mail, between Canada and the United States, and other charters in accordance with 14 CFR Part 212.
By: Paul Gretch
| OST-03-14840 | March 31, 2003 | Motion for Confidential Treatment Pursuant to Rule 12 | Form 41; Schedule B-43 |
Counsel: Shaw Pittman, Robert Cohn, 202-663-8060
Commander Mexicana, S.A. de C.V.
| OST-97-2245 | Filed February 13, 2003 Issued April 1, 2003 |
Notice of Action Taken | Mexico-US Charter Air Transportation |
By: Paul Gretch
Computer Reservations System (CRS) Regulations
| OST-97-2881 OST-97-3014 OST-98-4775 OST-99-5888 |
April 2, 2003 | Answer of The American Society of Travel Agents to Sabre's Motion for CRS Hearing Procedures | Computer Reservations System (CRS) Regulations General Policy |
In general, ASTA believes Sabre’s proposals for the management of the hearing, in light of the Department’s declination to provide meaningful crossexamination, are constructive and feasible. They also focus on the key issues in dispute and to that extent would assist materially in building a viable record for decision. Such a record is unlikely to emerge without procedures such as Sabre proposes, since the NPRM is really an ANPRM, posing multiple contingent outcomes to be considered abstractly in relation to each other. It would be extremely helpful if the hearing procedures framed the questions to be addressed in a logical progression so that individual regulations are not discussed on the basis of multiple assumptions about various versions of partial deregulation.
We are also very concerned about the idea, set out in the order ruling on Sabre's original motion for a fact hearing, that the oral hearing will be scheduled sometime between now and May 15. One set of the first-round comments stands about ten inches high, and contains well over a thousand pages. Trying to evaluate these materials and prepare a written reply while also preparing for and engaging in an oral hearing will be next to impossible. The hearing presentations and the written replies will both suffer. The Department should, therefore, adopt Sabre’s proposal to hold the hearing after the reply comments are filed. This will have the added advantage of permitting the parties to address the replies in their oral presentations.
We also believe that written materials to be presented in the oral hearings, including written versions of oral testimony, which may be voluminous if recent history is any guide, should be shared with other participants on the same panel not later than 72 hours before the hearing panel begins, in order to assure a fair opportunity to absorb and respond to the documents.
Counsel: ASTA, Paul Ruden, 703-739-6854, paulr@astahq.com
| OST-96-1222 | March 20, 2003 | Motion for Confidential Treatment Pursuant to Rule 39 | Form 41; Schedule B-7 |
By: Jennifer Vogel
| OST-96-1222 | March 24, 2003 | Motion for Confidential Treatment Pursuant to Rule 39 | Form 41; Schedule B-43 |
By: Jennifer Vogel
| OST-03-14777 | April 2, 2003 | Reply of Northwest Airlines and Motion for Leave to File | Temporary Blanket Waiver of Dormancy Conditions |
Northwest Airlines, Inc. hereby submits this Reply in the matter of the Application of Continental for a temporary blanket waiver of dormancy conditions. Northwest joins Continental, American and United in urging the Department to grant all air carriers a blanket waiver of all dormancy conditions applicable to frequency allocations and other operating authority, including codesharing and overflight authority, through March 31, 2004. To the extent required, Northwest seeks leave to submit this reply.
As the Department is well aware, airlines are being forced to make substantial service reductions in the face of a dramatic drop in passenger demand due to the threat and commencement of hostilities with Iraq, extraordinary economic conditions, fear of terrorism and growing concerns about severe acute respiratory syndrome (SARS). On March 21, 2003, Northwest announced a twelve percent reduction in system-wide flight schedules, as measured on an available seat mile basis, and an overall staffing reduction by about 4,900 employees.Under these extraordinary circumstances, carriers should be permitted to reduce their schedules based upon an evaluation of economic conditions and passenger demand without jeopardizing their ability to reinstate flights on limited-entry routes. The Department found that similar blanket relief to the airlines was in the public interest as a result of service reductions after the events of September 11, 2001. (See Order 2001-11-15). Northwest asks the Department to grant the requested blanket dormancy waivers through March 31, 2004, with the normal 90-day dormancy periods to commence April 1, 2004, so airlines can plan ahead to reinstate operations during the next peak summer season.
Counsel: Northwest, Megan Rae Rosia, 202-842-3193, megan.rosia@nwa.com
| OST-95-651 | March 31, 2003 | Motion for Confidential Treatment Pursuant to Rule 12 | Form 41; Schedule B-43 |
Counsel: Shaw Pittman, Robert Cohn, 202-663-8060
Essential Air Service at Akutan, Alaksa
| Order 03-04-1 OST-00-7068 |
Issued April 1, 2003 Served April 4, 2003 |
Order Tentatively Selecting Carrier and Setting Subsidy Rate | Essential Air Service at Akutan, Alaska |
| Appendix A - Map of Alaska | |||
| Appendix B - Annual Subsidy Need | |||
| Appendix C - Annual Subsidy Rate | |||
| Appendix D - Historical Traffic at Akutan | |||
| Service List |
Appendix C shows traffic levels at Akutan for the past three years. Given the declines in passenger and freight traffic -- mail has remained constant -- Peninsula's 10-round-trip-aweek option will fully accommodate all of the recent traffic levels, even taking into account seasonality and the severe directional imbalance of mail and freight. Peninsula continues to provide Akutan with reliable essential air service and we find that both the service and subsidy levels are reasonable. In view of the above, we will tentatively reselect Peninsula to provide EAS at Akutan with 10 nonstop round trips a week to Dutch Harbor at the agreed-to annual subsidy of $361,200 for an additional two-year period beginning May 1, 2003, and ending April 30, 2005. For the period from when the last contract expired, September 1, 2002, through April 30, 2003, we will compensate Peninsula at the agreed-to rate of $524,765 for 13 round trips a week.
Competing proposals for Akutan should contemplate service to Dutch Harbor, or any other appropriate hub city, at levels commensurate with those tentatively selected here. In order to help carriers in their passenger and revenue forecasts, we have included historical traffic data in Appendix C.
By: Read C. Van de Water
Essential Air Service at Massena, Ogdensburg, and Watertown, New York
| OST-97-2842 | March 28, 2003 | Correspondence from Read C. Van de Water | Essential Air Service at Massena, Ogdensburg, and Watertown, New York |
Letter to Richard A. Chimera from Read C. Van de Water, Assistant Secretary for Aviation and International Affairs regarding EAS at Massena, Ogdensburg, and Watertown.
By: Read C. Van de Water
Essential Air Service at Victoria, Texas / ExpressJet Holdings, Inc. d/b/a Continental Express
| Order 03-04-2 OST-03-14604 |
Issued April 1, 2003 Served April 4, 2003 |
Order Prohibiting Suspension of Service and Requesting Proposals for Replacement Service | Essential Air Service at Victoria, Texas - Notice of ExpressJet to Terminate Service |
ExpressJet's suspension of service would leave Victoria without any scheduled air service. In accordance with 49 U.S.C. 41734, we will therefore prohibit ExpressJet from suspending service at the community. In doing so, we will require ExpressJet to operate two nonstop round trips each weekday and weekend -- i.e., 12 round trips a week -- to Houston. That level of service will provide the community with 74 inbound and outbound seats each weekday and weekend, and thus meet the community's essential air service requirement of 67 seats.
ExpressJet has served Victoria since September 1987. The carrier has operated turboprop aircraft at the community during most of its tenure, with the aircraft generally increasing in size over time, from Metroliners to ATR-42 aircraft. ExpressJet introduced Embraer regional jets at the community in December 2002. The community registered its highest traffic total during ExpressJet's tenure in calendar year 1998, when it averaged 77.3 enplanements a day. During calendar year 2002, the most recent 12-month period for which data are available, Victoria averaged 46.3 enplanements a day, which represented an 11.3 percent decline from 52.3 enplanements a day the previous year.
By: Read C. Van de Water
Lakers Airways (Bahamas) Limited
| OST-02-11583 | Filed February 21, 2003 Issued April 2, 2003 |
Notice of Action Taken | Bahamas-US |
Renew exemption from 49 U.S.C. 41301 to conducted scheduled foreign air transportation of persons, property and mail between Nassau, the Bahamas, and Tampa/Jacksonville, FL on a coterminal basis with currently authorized U.S.-Bahamas services.
By: Paul Gretch
Linea Aerea de Navegacion Dominicana, S.A. (Lan Domincana)
| OST-03-14701 | Filed March 13, 2003 Issued April 1, 2003 |
Notice of Action Taken | Dominican Republic-US Scheduled / Wet-Lease with Lan Chile |
Exemption from 49 U.S.C. § 41301 to engage in scheduled foreign air transportation of persons, property and mail (1) between Santo Domingo and Punta Cana, Dominican Republic, on the one hand, and Miami and New York, on the other hand: and (2) between Santo Domingo, Dominican Republic, on the one hand, and San Juan, Puerto Rico, on the other hand. The applicant would conduct these services only by wet leasing aircraft from Linea Aerea Nacional Chile,, S.A. (Lan Chile).
Based on the record in this case, we found that Lan Dominicana is financially and operationally qualified to perform the services authorized above. However, we are unable to conclude that Lan Dominicana is substantially owned and effectively controlled by citizens of the Dominican Republic.` In that regard, Lan Dominicana states that it is 50.97% Dominican Republic and 49% Chilean owned. Lan Dominicana states that its five-member board of directors consists of three Dominican Republic citizens, one Chilean and one U.S. citizen, and that all of its key management personnel, with the exception of its Operations Manager, are citizens of Dominican Republic. In spite of the fact that we are unable to find that Lan Dominicana is substantially owned and effectively controlled by homeland nationals, we find it appropriate to waive our ownership and control requirements.
On March 19, 2003, Lan Chile filed a request for a statement of authorization under Part 212 to wet lease aircraft to Lan Dominicana for a period of one year (Foreign Air Carrier Licensing Division reference 2003-137).
By: Paul Gretch
Northwest Airlines, Inc. and Air China International Corp.
| OST-98-3901 OST-99-5443 OST-00-6806 OST-00-6819 OST-00-6909 OST-01-10603 OST-02-11808 |
April 2, 2003 | Re: Notice of Termination of Codeshare Agreement | US-China Codeshare |
Pursuant to condition (2) or (b) of the Department's statements of authorization granted to Northwest Airlines, Inc. and Air China International Corp. in the above-referenced dockets, Northwest hereby provides notice that the codeshare agreement between Northwest and Air China is being terminated and all codesharing and related commercial cooperation under such agreement will be discontinued as of June 30, 2003. In addition, Northwest and Air China withdraw their joint application currently pending in Docket OST-01-10603.
Counsel: Northwest, Megan Rae Rosia, 202-842-3193, megan.rosia@nwa.com
| OST-02-13760 | Filed March 13, 2003 Issued April 2, 2003 |
Notice of Action Taken | US-Hong Kong Frequency Allocation |
By Notice of Action Taken dated November 22, 2002, in the above-referenced docket, the Department allocated United Air Lines seven combination frequencies for fifth-freedom U.S.-Hong Kong service as a continuation of an existing flight operated between Chicago and Tokyo. That award was subject to the condition that if United did not begin service with the allocated frequencies by April 6, 2003, each unused frequency would automatically revert to the Department for reallocation.
United states that absent the requested waiver the seven frequencies would revert to the Department on April 7, 2003. United states that it is restructuring and realigning its operations in response to the severe and ongoing economic downturn affecting the industry. It is not in a position to commence additional fifth-freedom Tokyo-Hong Kong operations in the current soft market, but hopes to do so when the market strengthens and United's reorganization has been implemented. United maintains that no other carrier will be adversely impacted by grant of the requested waiver and notes that no other carrier applied for any of the 28 fifth-freedom frequencies newly available under the October 2002 Memorandum of Understanding. In these circumstances, United seeks a waiver of the dormancy condition for a period of one year. United states that the Department should grant the requested waiver to facilitate United's efforts to develop and expand its Hong Kong operations as part of its recovery.
United's authorization also said that if any frequencies are not used for a period of 90 days (once inaugurated), the allocation as to each of those frequencies will expire automatically and the unused frequencies will revert to the Department for reallocation. Since United has not inaugurated service, the waiver it seeks is, technically, not a waiver from this 90-day dormancy condition, but rather a waiver from the April 6, 2003, startup condition. We are treating it accordingly.
United's waiver from the startup condition is effective through April 2, 2004, or until the date on which United begins service with each of these frequencies, whichever occurs earlier. As to any frequency with which United does not begin service by April 2, 2004, its frequency allocation with respect to that frequency expires automatically.
By: Paul Gretch
Volga-Dnepr J.S. Cargo Airline
| OST-03-14823 | Filed March 27, 2003 Issued April 2, 2003 |
Notice of Action Taken | Denver-Cape Canaveral |
By: Paul Gretch
Wendell H. Ford Aviation and Investment and Reform Act for the 21st Century
| OST-00-7175 | April 2, 2003 | Supplemental Certification of US Airways Express Carriers | LaGuardia Regional Jet Service |
| Exhibit A - Slot Schedules | |||
| Service List |
As set forth in the schedule attached hereto as Exhibit A, US Airways Express Carriers intend to reassign:
(i) slot # 35058 previously certified for Syracuse (NY) service, as operated by Allegheny Airlines, Inc., to Charlottesville (VA), to be operated by Colgan Airlines, Inc., effective April 6, 2003;
(ii) slot # 35049 previously certified for Norfolk (VA) service, as operated by Allegheny Airlines, Inc., to Albany (NY), to be operated by Colgan Airlines, Inc., effective April 6, 2003;
(iii) slot # 35059 previously certified for Norfolk (VA) service, as operated by Colgan Airlines, Inc., to Nantucket (MA), with no change in the operating carrier, effective April 6, 2003;
(iv) slot # 35052 previously certified for Norfolk (VA) service, as operated by Colgan Airlines, Inc., to Roanoke (VA), with no change in the operating carrier, effective April 6, 2003;
(v) slot # 35056 previously certified for Harrisburg (PA) service, as operated by Allegheny Airlines, Inc., to Portland (ME), to be operated by Colgan Airlines, Inc., effective April 6, 2003;
(vi) slot # 35066 previously certified for Manchester (NH) service, as operated by Allegheny Airline, Inc., to Roanoke (VA), with no change in the operating carrier, effective April 6, 2003;
(vii) slot # 35051 previously certified for Harrisburg (PA), as operated by Allegheny Airlines, Inc., to Ithaca (NY) service, with no change in the operating carrier, effective April 6, 2003;
(viii) slot # 35067 previously certified for Lebanon (NH) service, as operated by Colgan Airlines, Inc, to Syracuse (NY), to be operated by Allegheny Airlines, Inc., effective April 6, 2003;
(ix) slot # 35053 previously certified for Albany (NY), to as operated by Colgan Air, Inc., to Birmingham (AL) service, as operated by Chautauqua Airlines, Inc., effective April 6, 2003;
(x) slot # 35054 previously certified for Ithaca (NY) service, as operated by Allegheny Airlines, Inc., to Manchester (NH), to be operated by Chautauqua Airlines, Inc., effective April, 2003; and
These services will be operated with Stage 3 compliant aircraft (Dash-8, Saab 340, Beech1900, or ERJ-145), which have a certified maximum seating capacity of less than 71 passengers.
By: Andrew Nocella
| Order 03-04-4 OST-02-14071 |
Issued April 2, 2003 Served April 7, 2003 |
Final Order | Certificate of Public Convenience and Necessity - Interstate Scheduled |
By Order 2003-3-10, issued March 18, 2003, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions stated in it and award a certificate of public convenience and necessity to Westward Airways, Inc., authorizing it to engage in interstate scheduled air transportation of persons, property, and mail using aircraft having 9 passenger seats or less. Interested persons were given 14 calendar days to file objections to the order.
By: Read C. Van de Water
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