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OST Docket Filings for March 5, 2008

Updated: 3/6/08 | 11:08 AM

Applications and Renewals:

Atlantic Southeast - US-Dominican Republic Renewal

Answers and Replies:

Aeroflot-Cargo - Warsaw Agreement - Missing Since July 25, 2007 / Designation of Agent - Missing Since October 1, 2007

DCA Slots - Ex-Parte Letter to Cornerstone Regional Development Partnership

EAS at Adak and Atka and Nikolski, AK - Proposals of PenAir

EAS at Grand Island and McCook, NE, El Dorado/Camden, Harrison, Hot Springs and Jonesboro, AR and Columbia/Jefferson City, Joplin and Kirksville, MO - Request of Hawaii Island Air for 3-Week Extension

EAS at Laurel/Hattiesburg, MS - Proposal of Mesaba / Requests for Community Comments

Polar Air Cargo - Polling Results (Hong Kong-Sharjah All-Cargo Frequency)

Notices of Action Taken:

China Southern - Guangzhou-Saipan Renewal

Notices and Orders:

2007/2008 US-Colombia Allocation Proceeding - Show Cause

Jet One Jets - Consent Order

M&N Aviation - Revoking Commuter Authority (Puerto Rico)




2007/2008 US-Colombia Combination Frequency Allocation Proceeding

Order 2008-3-4
OST-2007-0006

Issued and Served March 5, 2008

Order to Show Cause - Bookmarked

By this Order we tentatively allocate 21 U.S.-Colombia frequencies newly available under the U.S.-Colombia Air Transport Agreement. In addition, we tentatively reallocate seven weekly U.S.-Colombia combination frequencies that are currently held by American Airlines, Inc.

We tentatively award Delta Air Lines, Inc., JetBlue Airways Corporation, Spirit Airlines, Inc. and Continental Airlines, Inc. seven frequencies each, along with underlying economic authority, as needed, to provide combination services in the U.S.-Colombia market as follows: 1) Delta for its proposed New York (JFK)-Bogota services, effective immediately; 2) JetBlue for its proposed Orlando-Bogota services, effective April 1, 2008; 3) Spirit for its proposed Ft. Lauderdale-Bogota services, effective April 1, 2008; and 4) Continental for its proposed Houston-Bogota services, effective October 1, 2008.

We propose to grant Delta, JetBlue, and Spirit exemption authority for a period of two years, subject to renewal, and to make this authority effective immediately upon issuance of a final order in this proceeding. We note that Continental currently holds certificate authority to provide Houston-Bogota service on Route 645, granted by Order 2001-12-8, in Docket OST-1996-1318.

By: Michael Reynolds

DOT Press Release

Index


Atlantic Southeast Airlines, Inc.

OST-2006-24591 - Exemption - US-Dominican Republic

March 5, 2008

Application for Renewal of an Exemption

ASA initially sought and was granted U.S.-Dominican Republic exemption authority in order to supplement mainline Atlanta-Puerto Plata service operated by Delta Air Lines, Inc. with "Delta Connection" service using ASA's 70-seat CRJ 700 aircraft. ASA requires renewal of its exemption authority so that it continues to have the flexibility to provide Delta Connection service on this route during certain peak and off-peak periods, and to introduce other U.S.-Dominican Republic services as market conditions warrant.

ASA's U.S.-Dominican Republic exemption was initially granted by Notice of Action Taken dated May 9, 2006 (Docket OST-2006-24591), for a period of two years expiring May 9, 2008. ASA requests that its exemption be renewed for at least two additional years, or until 90 days after the Department's final determinations on ASA's applications for U.S.-Dominican Republic and blanket route integration certificate authority pending in Dockets OST-2007-0084 and OST-2005-22228, respectively, whichever occurs first.

Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999

http://www.flyasa.com/

Index


China Southern Airlines Company Limited

OST-2003-16786 - Emergency Exemption - Guangzhou-Saipan

Filed February 15, 2008 | Issued March 5, 2008

Notice of Action Taken

Renewal of exemption from 49 USC §41301 to permit the applicant to engage in scheduled foreign air transportation of persons, property and mail between Guangzhou and Shanghai, People’s Republic of China, on the one hand, and Saipan, Commonwealth of the Northern Mariana Islands, on the other hand.

By: Paul Gretch

http://www.cs-air.nl/

Index


CJSC Aeroflot-Cargo


OST-1995-236 - Warsaw Liability Limitations

July 25, 2007

Warsaw Agreement

Counsel: Miller Hamilton, Lester Bridgeman, 251-439-7536, lesterbridgeman@mhsolaw.com


OST-2002-12556 - Designation of Agent for Service

October 1, 2007

Designation of Agent

Counsel: Miller Hamilton, Lester Bridgeman, 251-439-7536, lesterbridgeman@mhsolaw.com

http://www.aeroflotcargo.aero/

Index


Essential Air Service at Adak and Atka and Nikolski, Alaska

OST-2000-8556 - Adak
OST-1995-363 - Atka and Nikolski

February 29, 2008

Proposals of PenAir

PenAir proposes to provide four weekly nonstop round trips between Atka and Dutch Harbor using the Piper T-1040 aircraft. The annual subsidy for PenAir's EAS service to Atka will be $513,803.15 for each year.

Peninsula proposes to provide two weekly nonstop round-trips between Nikolski and Dutch Harbor using the Grumman Goose G-21A Aircraft. The annual subsidy cost for PenAir's EAS service to Nikolski will be $469,786.10 for each year. Exhibit 2. Consistent with Order 2006-5-21, PenAir should continue to be permitted to substitute the Grumman Goose with Piper T1040 or Navajo aircraft. The compensation rate for such aircraft substitution will be at a rate of 4 seats for each operation with the Piper T1040 and 3.3 seats per operation for each Piper Navajo. However, consistent with Order 2006-5-21, this reduced seat assignment will not apply to the first roundtrip aircraft substitution in each monthly billing period.

PenAir proposes to provide four weekly roundtrip flights between Adak and Anchorage using PenAir's flagship, cabin-class Saab 340 aircraft. PenAir's Saab 340 aircraft is appropriately sized for the Adak marketplace. PenAir's proposal will double the number of weekly flights at Adak and significantly reduce the Department's subsidy costs. The annual subsidy for PenAir's four weekly service proposal for Adak will be $845,291.00 for each year.

Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com

Index


Essential Air Service at Grand Island and McCook, Nebraska, El Dorado/Camden, Harrison, Hot Springs and Jonesboro, Arkansas and Columbia/Jefferson City, Joplin and Kirksville, Missouri

OST-2002-13983 - Grand Island
OST-1997-3005 - McCook
OST-1997-2935 - El Dorado/Camden, Harrison, Hot Springs and Jonesboro
OST-2006-23931 - Columbia/Jefferson City
OST-2006-23932 - Joplin
OST-1997-2515 - Kirksville

February 26, 2008

Email Message - Hawaii Island Air Request for Three-Week Extension

Hawaii Island Air is requesting a 3 week extension to better assess market and cost analysis to determine feasibility of our pending EAS application. Our intent is to bring in Dash 8 -100's to service these communities and if awarded we would like to target initial service within a 3-6 month period. I am confident that we will be able to provide an upgraded service to what is presently available to these and other out-lying communities.

By: Hawaii Island Air, Les Murashige, lmurashige@islandair.com

Index


Essential Air Service at Laurel/Hattiesburg, Mississippi

OST-2001-10685


February 26, 2008

Proposal of Mesaba Airlines

In response to the Department's Order 2008-2-9, Mesaba Aviation, Inc., doing business as Northwest Airlink, is enclosing its detailed subsidy proposal for continued essential air service at Laurel/Hattiesburg, Mississippi, at a level of two roundtrip flights per day, using 34-seat Saab 340 aircraft. The following is the current and proposed schedule:

Depart MEM Arrive PIB Depart PIB Arrive MEM
0925 1045 0625 0755
1915 2030 1115 1240

We welcome the opportunity to continue providing essential air service at these communities for the two-year period beginning July 1, 2008.

By: Mesaba, John Spanjers


March 5, 2008

Re: Requests for Community Comments of:

We solicited proposals from carriers interested in serving Laurel/Hattiesburg, either with or without subsidy, for a new two-year period (Order 2008-2-9, February 6, 2008). In response to our request, we received a single proposal from Mesaba.

Mesaba's proposes a slight increase from its current service (from 13 round trips a week to 14) and would provide two nonstop round trips each day to Memphis with 34-seat Saab 340 turboprop aircraft for an annual subsidy of $1,191,435. I would note that Mesaba is proposing more service than we are currently subsidizing, as well as more service than we solicited in the request for proposals. Order 2008-2-9. While Mesaba, of course, is free to offer additional service, we are inclined to continue to subsidize 13 round trips a week. Mesaba would continue to operate as Northwest Airlink, under its code-share agreement with Northwest Airlines at Memphis.

While there are no options from which to choose, we nonetheless wanted to give you an opportunity to submit any comments on the record, if you wish, before we present our recommendation to the Assistant Secretary who will make the final decision in this case. We ask that you submit any comments you have as soon as possible, but in any case no later than March 24.

By: Dennis DeVany

http://www.hlrairport.com/ - Hattiesburg/Laurel Regional Airport

Index


Jet One Jets, Inc.

Order 2008-3-2
OST-2008-0031 - Consent Orders

Issued and Served March 4, 2008

Consent Order

This consent order concerns the unlawful holding out of air transportation by Jet One Jets, Inc. in contravention of the statutory licensing requirements of 49 U.S.C. § 41101, and 49 U.S.C. § 41712, which prohibits ticket agents and air carriers from engaging in unfair and deceptive practices and unfair methods of competition. It directs JOJ to cease and desist from such further violations and assesses JOJ a compromise civil penalty of $60,000.

An investigation by the Office of Aviation Enforcement and Proceedings of JOJ’s advertising practices revealed violations of 49 U.S.C. §§ 41101 and 41712. Specifically, for a period of time during 2006, JOJ’s Internet website and print advertisements contained statements and omissions that, when considered together, would lead the public to conclude erroneously but reasonably that JOJ is a direct air carrier with operational control over flights. For example, the company’s homepage and its other advertisements stated that, “When you fly with Jet One, you’re more than a passenger.” The webpage entitled “Aircraft” included a statement that “[w]e offer a range of aircraft, from heavy jets … to helicopters. In addition, each webpage contained a footer stating, in relevant part, that JOJ was a “full service private aviation provider,” whose services include “private jet operations” and the company’s “Services” webpage referred to “our private jets” and stated that “[w]e operate in countries around the world.” In sum, JOJ created the misimpression that it operated the aircraft used in the transportation by air that it held out to the public for compensation or hire. By doing so, it engaged unlawfully in air transportation.

The Enforcement Office finds JOJ’s website particularly troubling in light of the Department’s notice cautioning entities that lack proper economic authority against the use of misleading statements, phrases, and terms. Through these and other statements on its Internet website and its print advertising, JOJ held out direct air transportation when it did not have proper economic authority, thereby violating 49 U.S.C. §§ 41101 and 41712.

While neither admitting nor denying wrongfully engaging in air transportation, in mitigation JOJ states that any violation of the Department’s regulations was inadvertent due to the company’s basic level of experience with the applicable regulations. JOJ also asserts that, because its customers are sophisticated business people who do not necessitate the consumer safeguards that the regulations mandate, the violations presented a minimal degree of risk of consumer harm.

By: Rosalind Knapp

http://www.jetonejets.com/

Index


M&N Aviation, Inc.

Order 2008-3-3
OST-2002-12358 - Puerto Rico Commuter Air Carrier Authority

Issued and Served March 5, 2008

Order Revoking Commuter Authority

M&N operated under its commuter authorization until September 21, 2006, when it ceased all flight operations pursuant to an Emergency Order of Revocation issued by the Federal Aviation Administration.

On August 7, 2007, M&N filed an application in Docket OST-2002-12358 to resume operations. In Support of its application, the air carrier provided some of the information necessary for us to redetermine its fitness.

By letter dated October 29, 2007, the Department requested that M&N provide further and/or clarifying information to enable us to complete our review. We asked that the air carrier respond to our request by November 27, 2007.

By letter dated February 21, 2008, we informed M&N that since we had yet to receive a response to our October 29 information request, we would proceed with the revocation of the air carrier's authority. On February 22, 2008, M&N notified the Department that it would not be responding to our information request.

Under these circumstances, and in accordance with section 204.7 of our rules, we find it appropriate to revoke the Commuter Air Carrier Authorization issued to M&N by Order 2003-2-18. This action is without prejudice to the company filing for new commuter authority in the future.

By: Todd Homan

Index


Polar Air Cargo Worldwide, Inc.

OST-2008-0083 - One Hong Kong-Sharjah All-Cargo Frequency

March 4, 2008

Re: Polling Results

Polar Air Cargo Worldwide, Inc. has polled the u.s. carrier representatives served with the above-referenced application dated February 29, 2008, and no carrier representative has objected. Accordingly, Polar respectfully urges that the requested authority be granted as soon as possible to allow for a March 30, 2008, start of service.

Counsel: Polar, Kevin Montgomery

http://www.polaraircargo.com/

Index


Ronald Reagan Washington National Airport Slot Exemptions

OST-2000-7182

March 3, 2008

Ex-Parte Letter

Thank you for your letter of February 8 supporting AirTran Airways to serve Jacksonville in the recent slot-exemption proceeding at Ronald Reagan Washington National Airport.

On February 22, 2008, the Department issued Order 2008-2-28, which awarded: (1) two slot exemptions to Spirit Airlines, to provide an additional daily nonstop round trip to Fort Lauderdale, Florida, and (2) two slot exemptions to AirTran Airways, to provide a daily nonstop round trip to either Milwaukee, Wisconsin, or Jacksonville, Florida. The Department selected these two carriers because they would provide the greatest competitive benefits.

By: Michael Reynolds

Index



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