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OST Docket Filings for March 24, 2008

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Updated: 3/25/08 | 7:55 AM

Applications and Renewals:

Air Next - Japan-US Codesharing with United Renewal

American Eagle - Dallas/Ft. Worth-Torreon Renewal

Mexicana and American - Dallas/Ft. Worth-Tampico and Monterrey-New York Codesharing

Morningstar Air Express - Canada-US Cargo Charters Renewal

Volga-Dnepr - Denver-Vandenberg AFB Emergency Exemption

Answers and Replies:

EAS at Adak, AK - City of Adak in Support of Alaska Airlines

EAS at El Dorado/Camden, Harrison, Hot Springs and Jonesboro, AR, Grand Island and McCook, NE and Columbia/Jefferson City, Joplin and Kirksville, MO - Proposals of Air Choice One and Great Lakes

FedEx - Polling Results (Oakland-Guadalajara/Monterrey, Lafayette-Guadalajara)

US-Colombia - Response of American in Opposition to DOT Motion to Dismiss (US Court of Appeals, DC Circuit)

Virgin America - Answers of American and jetBlue (Form 41 Confidentiality)

Notices of Action Taken:

UPS - Houston-Chihuahua All-Cargo

Notices and Orders:

EAS at Athens and Macon, GA - Resoliciting Proposals

EAS at DuBois and Franklin/Oil City, PA and Greenbrier/White Sulphur Springs/Lewisburg, WV - Requesting Proposals




Air Next Co., Ltd.

OST-2007-27316 - Exemption and Statement of Authorization - Japan-US Codesharing with United

March 21, 2008

Application for Renewal of Exemption and Statement of Authorization

Air Next hereby requests renewal of its exemption from 49 U.S.C. § 41301 to engage in scheduled foreign air transportation of persons, property and mail between any point or points in Japan and any point or points in the United States and to perform charters pursuant to 14 C.F.R. Part 212. Air Next also requests renewal of its blanket statement of authorization pursuant to Part 212 to the extent necessary to enable Air Next to wet-lease aircraft to All Nippon Airways Co., Ltd. and display the designator code of United Air Lines on Air Next-operated flights wet-leased to ANA, as further described herein. Air Next requests renewal of the exemption authority and statement of authorization for a period of at least one year.

Counsel: Zuckert Scoutt, Charles Simpson, 202-973-7926, cjsimpson@zsrlaw.com

http://www.airnext.ana-g.com/

Index


American Eagle Airlines, Inc.

OST-2004-17469 - Exemption - Dallas/Ft. Worth-Torreon

March 24, 2008

Application for Renewal of Exemption

American Eagle Airlines, Inc. hereby applies for a renewal of its exemption, last renewed by Notice of Action Taken in this docket on June 1, 2006, authorizing scheduled foreign air transportation of persons, property, and mail between Dallas/Ft. Worth, Texas and Torreon, Mexico. Absent this renewal application, American Eagle's exemption would expire on June 1, 2008.

American Eagle provides nonstop service between Dallas/Ft. Worth and Torreon using 46-seat ERJ-145 aircraft.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com

http://www.aa.com/

Index


Compania Mexicana de Aviacion, S.A. de C.V. and American Airlines, Inc.

OST-2004-16945 - Statements of Authorization and Related Exemption Authority - US-Mexico Codesharing


March 24, 2008

Joint Application for Additional Codesharing Authorization

Compania Mexicana de Aviacion, S.A. de C.V. and American Airlines, Inc. (and its affiliates American Eagle Airlines, Inc. and Executive Airlines, Inc. d/b/a American Eagle) hereby jointly apply under 14 CFR 212 and 49 USC 40109 for a statement of authorization and related exemption authority to engage in certain transborder codeshare services in addition to those first authorized by the Department of Transportation by Notice of Action Taken in this docket on April 29, 2004, and by subsequent amendments as renewed on March 22, 2006. The applicants request that American's statement of authorization be granted for an indefinite period and that Mexicana's exemption be granted for a one-year period.

The joint applicants plan to begin new codeshare service between Dallas/Ft. Worth and Tampico on April 7. 2008, (or as soon as practical after all government approvals are obtained) and request the following authorities: (a) Mexicana requests an exemption permitting it to engage in the scheduled foreign air transportation of persons, property, and mail between Dallas/Ft. Worth and Tampico pursuant to its codeshare agreement with American; and (b) American requests a statement of authorization perming it to display the "MX*" designator code in conjunction with the foreign air transportation of persons, property, and mail on flights operated by American Eagle between Dallas/Ft. Worth and Tampico.

American Eagle holds Dallas/Ft. Worth-Tampico exemption authority and currently operates flights between the two cities (Notice of Action Taken, November 29, 2007, Docket OST-2007-0061). Mexicana does not hold underlying Dallas/Ft. Worth-Tampico authority and thus requires an exemption. American requires a Statement of authorization to display Mexicana's code on American Eagle's Dallas/Ft. Worth-Tampico flights. Codeshare service will begin Oil April 7, 2008. (or as soon as practical after all government approvals are obtained).

Counsel: Squire Sanders, Charles Donley, 202-626-6840, cdonley@ssd.com for Mexicana / Carl Nelson, 202-496-5647, carl.nelson@aa.com for American


March 24, 2008

Joint Application for Additional Codesharing Authorization

Compania Mexicana de Aviacion, S.A. de C.V. and American Airlines, Inc. hereby jointly apply under 14 CFR 212 and 49 USC 40109 for a statement of authorization and related exemption authority to engage in certain transborder codeshare services in addition to those first authorized by the Department of Transportation by Notice of Action Taken in this docket on April 29, 2004, and by subsequent amendments as renewed on March 22, 2006. The applicants request that Mexicana's statement of authorization be granted for an indefinite period and that American's exemption be granted for a two-year period.

The joint applicants plan to begin new codeshare service between Monterrey and New York on May 1, 2008, and request the following authorities: (a) Mexicana requests a statement of authorization permitting it to display the "AA*" designator code in conjunction with the foreign air transportation of persons, property and mail on nights operated by Mexicana between Monterrey and New York; and (b) American requests an exemption permitting it to engage in the scheduled foreign air transportation of persons, property, and mail between Monterrey and New York pursuant to its codeshare agreement with Mexicana.

Mexicana currently holds an exemption authorizing it to operate nonstop nights between Monterrey and New York (Notice of Action Taken January 7, 2008, Docket OST-2007-0069). Mexicana will begin service on May 1, 2008, utilizing A319, A320, or B757 aircraft. American docs not hold underlying Monterrey-New York operating authority and thus requires an exemption. Mexicana requires a statement of authorization to display American's code on Mexicana's Monterrey-New York flights.

Counsel: Squire Sanders, Charles Donley, 202-626-6840, cdonley@ssd.com for Mexicana / Carl Nelson, 202-496-5647, carl.nelson@aa.com for American

http://www.mexicana.com/
http://www.aa.com/

Index


Essential Air Service at Adak, Alaska

OST-2000-8556

March 14, 2008

City of Adak in Support of Alaska Airlines

The City of Adak strongly supports the continuation of the EAS program and Alaska Airlines' EAS-supported daily jet service to our community.

By: Mayor, Rodney Whitehead, 907-592-4500

Index


Essential Air Service at Athens and Macon, Georgia

Order 2008-3-21
OST-2002-11348 - Athens
OST-2007-28671 - Macon

Issued March 24, 2008 | Served March 27, 2008

Order Resoliciting Proposals

By this order, the Department is re-soliciting proposals from air carriers interested in providing essential air service at Athens and/or Macon, Georgia, for a new two-year term beginning when a replacement carrier inaugurates full service at one or both communities, with or without subsidy. Carriers should file their proposals no later than April 21, 2008.

Because of each community’s traffic generating potential and proximity to Atlanta, we also encourage proposals for more frequent service with smaller aircraft, e.g., three, four, or even more daily round trips with 9- to 15-seat aircraft. All service to Atlanta should be nonstop. We recognize that there is convenient ground transportation to Atlanta at both communities, and therefore, air service to a more-distant hub, such as Memphis or Charlotte, may be more appropriate.

On May 3, 2007, Air Midwest, Inc., a wholly owned subsidiary of Mesa Air Group, Inc., d/b/a US Airways Express filed a 90-day notice of its intent to terminate its subsidized service at Athens, as well as three other communities, effective August 1. In response to the carrier’s notice, the Department issued Order 2007-5-14, May 21, 2007, requiring the carrier to continue to serve Athens and the other communities, and requesting proposals for replacement service. By Order 2007-7-21, July 31, 2007, we selected Gulfstream International Airlines, Inc., the only applicant, to provide subsidized EAS at Athens (with service to Charlotte) and at the other three communities, for a combined annual subsidy of $4,077,792. However, Gulfstream never inaugurated service at Athens, or at the other communities. As a result, by Order 2008-2-11, February 6, 2008, we re-solicited carrier proposals. However, we received none for Athens, so we are here requesting proposals for the third time.

On July 2, 2007, Atlantic Southeast Airlines filed a 90-day notice of its intention to suspend its subsidy-free service at Macon effective October 1, 2007. By Order 2007-6-12, July 13, 2007, we prohibited ASA from suspending service, required it to provide Macon with two daily nonstop round trips to Atlanta with regional jets or ATR-72 turboprop aircraft, the only aircraft in its fleet, and requested proposals from carriers interested in providing replacement service, with subsidy if necessary. That order noted that Macon is a major community of 100,000 residents, 79 miles from the Atlanta airport, and had never previously needed subsidy support from the EAS program. We also previously noted that ASA uses Macon as a maintenance base, and, thus, its schedules have been typically driven by operational needs to move aircraft through its system, rather than to serve or optimize the convenience or transportation needs of passengers. We received no long-term proposals and we solicited proposals two more times and still have not received any. (See Orders 2007-8-30 and 2007-10-20) We are here requesting proposals for the fourth time.

By: Todd Homan

http://www.athensairport.net/ - Athens-Ben Epps Airport
http://www.cityofmacon.net/CityDept/aviation.htm - Middle Georgia Regional Airport

Index


Essential Air Service at DuBois and Franklin/Oil City, Pennsylvania and Greenbrier/White Sulphur Springs/Lewisburg, West Virginia

Order 2008-3-22
OST-2004-17617 - DuBois
OST-1997-2523 - Oil City/Franklin
OST-2003-15553 - Greenbrier/White Sulphur Springs/Lewisburg

Issued and Served March 24, 2008

Order Requesting Proposals | Word

By this order, the Department is re-soliciting proposals from air carriers interested in providing essential air service at any or all of the three communities identified above. We are requesting proposals for a new two-year period, beginning when the carrier inaugurates full service, with or without subsidy. Carriers should file their proposals no later than April 18, 2008.

With specific respect to DuBois, Franklin/Oil City, and Greenbrier/White Sulphur Springs/Lewisburg, we expect proposals consisting of service with 15-seat or larger aircraft offering three (DuBois) or two (Franklin/Oil City and Greenbrier/White Sulphur Springs/Lewisburg) nonstop round trips each weekday to Pittsburgh, Cleveland, Cincinnati, Detroit, Charlotte, Atlanta, Washington, D.C., or another suitable hub with airline connections to the national air transportation system. Such service is generally consistent with what the communities currently receive. When preparing proposals, carriers should be aware that the Department is prohibited from subsidizing service at communities where the per-passenger subsidy exceeds $200.

On May 3, 2007, Air Midwest filed 90-day notices with the Department of its intent to terminate its subsidized service at the three above-captioned communities, as well as Athens, Georgia, effective August 1. In response, the Department issued Order 2007-5-14, May 21, 2007, requiring Air Midwest to continue to serve the communities and requesting proposals for replacement service. Gulfstream International Airlines, Inc. was the only applicant, and by Order 2007-7-21, July 31, 2007, we selected Gulfstream to provide DuBois, Franklin/Oil City, and Lewisburg’s EAS to Pittsburgh and Lewisburg and Athens’ service to Charlotte, for a combined annual subsidy of $4,077,792. After Gulfstream prepared its proposal, US Airways reduced service at Pittsburgh, severely limiting the connection options available at the airport. As a result, Gulfstream explored other service options but none materialized. We have an obligation to relieve Air Midwest of its hold-in obligations as quickly as we can. As of February 2008, Gulfstream had not yet inaugurated service and could not provide the Department a date when it would do so. In response, the Department issued Order 2008-2-11, February 6, 2008, requesting another round of proposals for EAS. In response, we received only one proposal, from Gulfstream. Its proposal for these three communities was contingent upon its being selected at Watertown, New York, and on negotiating a code-share agreement with Continental Airlines to serve its Cleveland hub operation. Under Order 2008-3-15, the Department selected Hyannis Air Service, Inc. d/b/a Cape Air to serve Watertown, thus rendering the proposal to serve DuBois, Franklin/Oil City, and Lewisburg moot. To date, despite the fact that we selected Gulfstream in July 2007, the carrier did not commence EAS at any of the three communities and its subsequent proposal was not selectable. Therefore, we will issue a third round of request for proposals for these three communities.

By: Todd Homan

http://www.dujairport.com/ - DuBois
http://www.co.venango.pa.us/airport/ - Oil City/Franklin
http://www.greenbrierwv.com/home/index.asp - Greenbrier
http://www.lewisburg-wv.com/ - Lewisburg
http://gvairport.com - White Sulphur Springs

Index


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

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


March 18, 2008

Service Proposals of Air Choice One

Please find our proposals to provide Essential Air Service to the communities of El Dorado, AR; Harrison, AR; Hot Springs, AR; Jonesboro, AR; Kirksville, MO. We will utilize 9-seat, twin engine turbine powered, Raytheon/Beechcraft King Air configured for 9 passenger seats. For option 12 on Kirksville we would be using a twin engine piston aircraft with six passenger seats. The aircraft will be operating with two crew members and air conditioning for passenger safety and comfort. All proposals are using St. Louis, MO as the hub.

By: Air Choice One, Shane Storz, 866-435-9847, shane@airchoiceone.com


March 21, 2008

Proposals of Great Lakes Aviation

Great Lakes Aviation, Ltd. is pleased to submit these proposals to provide essential air transportation at these points in Arkansas, Missouri and Nebraska. Each proposal should be considered a stand alone proposal.

We were not able to provide a proposal for Kirksville, MO that would comply with current legislation which limits subsidy, per passenger, at a $200 maximum. El Dorado and Hot Springs, AR are not commercially feasible for Great Lakes to serve to hubs within our current system and we feel would be better served by a carrier with an established hub in Dallas, TX.

Great Lakes will provide service at these Essential Air Service points in a similar fashion as is offered at our Denver hub and utilize our codeshare and interline agreements, which will enable connecting bag service through our Kansas City and St. Louis hubs. All proposals contemplate the use of 19 seat Beechcraft 1900D airliner equipment.

By: Great Lakes, Michael Matthews, 307-432-7000

Index


Federal Express Corporation

OST-2008-0105 - Exemption - Oakland-Guadalajara/Monterrey, Lafayette-Guadalajara

March 21, 2008

Re: Polling Results

Federal Express Corporation has polled all carriers upon whom the application in the above-referenced matter was served, and no carrier has any objection to the application.

Counsel: FedEx, James Davis

http://www.fedex.com/

Index


Morningstar Air Express, Inc.

OST-2000-7609 - Exemption - Canada-US Cargo Charters

March 19, 2008

Application for Renewal of Exemption

Morningstar Air Express Inc. hereby applies for (renewal of its) exemption from 49 U.S.C. 40109 which authorizes Morningstar Air Express Inc. to engage in all-cargo charter foreign air transportation between Canada and the United States and other all-cargo charter operations to and/or from the United States, subject to 14 CFR Part 212. The Department granted the above authority to Morningstar Air Express Inc. by Notice of Action Taken dated February 15, 2007. Morningstar Air Express Inc. requests that this authority, which is inadvertently expired on February 15, 2008, be renewed (or reissued) for a period of at least one year.

Counsel: Morningstar, Bill McGoey, 780-453-0218

http://www.maei.ca/

Index


United Parcel Service Co.

OST-2008-0089 - Exemption - Houston-Chihuahua All-Cargo

Filed March 7, 2008 | Issued March 21, 2008

Notice of Action Taken | Word

Scheduled foreign air transportation of property and mail between Houston, Texas, and Chihuahua, Mexico.

We note that the City of Houston and the Greater Houston Partnership filed an answer in support of the application.

By: Paul Gretch

http://www.ups.com/

Index


US-Colombia

OST-2007-0006

March 24, 2008

American Airlines' Response in Opposition to DOT Motion to Dismiss - Bookmarked

Petitioner American Airlines, Inc. respectfully submits this Response in opposition to the Motion filed by Respondent Department of Transportation to dismiss the Petition for Review. Both Order 2007-11-23 and Order 2007-12-21 are final and reviewable by this Court because they unequivocally deny American's right, under longstanding agency precedent, to retain seven U.S.-Colombia air service frequencies, and alter the legal regime applicable to American's rights in those frequencies. The fact that the Department has not yet finally decided how to reallocate the frequencies taken from American does not change that dispositive fact. Therefore, the Court should deny the Department's Motion to Dismiss.

Orders 2007-11-23 and 2007-12-21 finally - and wrongly - rejected American's right to retain seven U.S.-Colombia air service frequencies under the "firm plans" doctrine, and altered the legal standard by which American could both use and retain those frequencies. Indeed, the Department's argument that the two orders are not final confuses two separate agency actions: (1) the Department's final decision to depart from longstanding agency precedent and place seven of American's U.S.-Colombia frequencies up for potential reallocation; and (2) the Department's ultimate allocation of those frequencies in the carrier selection proceeding. American is seeking judicial review of the first issue at this time - not the second.

Counsel: Jones Day, John Gore, 202-879-3939, jmgore@jonesday.com

Index


Virgin America, Inc.

OST-2008-0107 - Form 41 Confidentiality


March 24, 2008

Answer of American Airlines and Motion for Expedited Final Decision

It would be highly unfair, prejudicial to other reporting carriers and adverse to the public interest to withhold Virgin America's data when the data submitted by all other carriers is released immediately. Timely release of carrier data is the key to its usefulness.

There is nothing unique about Virgin America that could justify the unique treatment it is seeking. Public disclosure of data enumerated in Part 241 is one of the obligations that comes with being a certificated carrier. If Virgin America's request were granted, other carriers would also attempt to opt out of the public data system by applying for confidential treatment of their submissions, and the data that did remain publicly available would be of diminished utility to the numerous stakeholders identified in the NPRM.

The Director should on an expedited bases issue a final order denying Virgin America's motion for confidential treatment, without awaiting staff action and a petition for review.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com


March 24, 2008

Answer of jetBlue Airways

As with the ExpressJet request, the relief requested by Virgin America could undermine the inherent usefulness of such data collected by the Department, on which many other entities besides Virgin America's competitors rely. Although Virgin America focuses on the potential for competitors to access and review its Form 41 Schedules data, it ignores that this data is used for several other purposes as well, including airports, consumers, manufacturers, industry associations, consultants, academics, researchers, financial analysts, investors, and the general public.

It must be said that its application appears to be an effort to game the system, and by filing its request and having all of its data withheld while the process moves to its completion, Virgin America is forcing the Department to dedicate its limited resources to an issue it has just resolved. jetBlue believes that the Department should not allow this game to again be played and it should summarily deny Virgin America's request. It is unfair to the traveling public and to all carriers to allow such a process whereby, by the mere filing of its motion, Virgin America makes its Form 41 Schedules data confidential until a decision is made by the Department on its motion.

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

OST-2007-28396 - ExpressJet - T-100 Confidential Treatment

Index


Volga-Dnepr J.S. Cargo Airline

OST-2008-0119 - Emergency Exemption - Denver-Vandenberg AFB

March 24, 2008

Application for an Emergency Exemption

Volga-Dnepr J.S. Cargo Airline respectfully requests an emergency exemption from the provisions of 49 U.S.C. §§ 40109(g) and 41703(c), and otherwise applicable provisions of the Department of Transportation regulations, so as to permit Volga-Dnepr to operate two one-way all-cargo charter flights, utilizing Volga-Dnepr’s AN-124-100 aircraft, to transport outsized cargo from Denver, Colorado to Vandenberg Air Force Base, California, on March 31-April 7, 2008.

The outsized cargo to be transported by Volga-Dnepr from Denver to Vandenberg AFB on or around March 31, 2008, will consist of Lockheed Martin Space Systems AVB017 Atlas V Booster Vehicle, with the payload in its shipping configuration measuring 119’ L x 13’6” W x 14’ H, with the weight of approximately 89,000 pounds with support equipment.

The outsized cargo to be transported by Volga-Dnepr from Denver to Vandenberg AFB on or around April 3-7, 2008, will consist of Lockheed Martin Space Systems AVC017 Centaur Tank Upper Stage Vehicle, with the payload in its shipping configuration measuring 52’ L x 12’ W x 14’ H, with the weight of approximately 45,000 pounds with support equipment.

Lockheed Martin is shipping the payloads to complete aggressive schedules that include subsequent launch integration activities scheduled to maintain the tight launch schedules from Vandenberg AFB. Lockheed Martin stands to lose millions of dollars if the shipments do not occur on time, while only the use of Volga-Dnepr's outsized aircraft can make it possible to perform the service in question within the set schedule.

Counsel: The Wicks Group, Glenn Wicks, 202-457-7790

http://www.volga-dnepr.com/

Index



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