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OST Docket Filings for May 12, 2008
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| Applications and Renewals:
Avianca - Colombia-US Codesharing with Delta Renewal Canadian North - Canada-US Charters Renewal Compass Airlines - Supplement No. One (Service Proposal Independent of Fee-for-Service Operations) Global Supply Systems - Wet-Lease to British Airways Renewal IATA - TC3 Japan, Korea-South East Asia, Within South East Asia Special Passenger Amending Resolution between Hong Kong SAR and Japan, between China (excluding Hong Kong SAR and Macao SAR) and Russia (in Asia) US-China All-Cargo - Application of Tradewinds Airlines Answers and Replies: Aloha Air Cargo - Response of ALPA / Reply of Aloha Air Cargo American - Answer of United / Polling Results (US-Russia Frequencies) EAS at Altoona and Johnstown, PA - Requests for Community Comments EAS at Athens and Macon, GA - Comments of Vintage Props & Jets EAS at Columbia, MO - Ex-Parte Letter to Congressman Christopher Bond EAS at DuBois and Franklin/Oil City, PA - Ex-Parte Letters to Senators Robert Casey and John Peterson Hainan Airlines - Family Assistance Plan Lengthy On-Board Ground Delays Task Force - Second Meeting Materials United - Polling Results (Dulles-Moscow) United / American - Answer of Aeroflot (US-Russia Frequencies) UPS - Polling Results (Additional Point in Japan - Nagoya) Notices of Action Taken: None Notices and Orders: EAS at Kingman and Prescott, AZ - Prohibiting Termination of Service and Requesting Proposals OneWorld Antitrust - Notice to Provide Further Evidence RegionsAir - Revoking Commuter Authority |
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2009 US-China All-Cargo Designation and Frequency Allocation Proceeding May 9, 2008 With the Department's approval of its application and the reciprocal grant by the PRC government of all necessary licenses, TradeWinds intends in the 2009 peak season (July- December) to operate a total of six weekly Boeing B-747-400SF freighter flights between the U.S. and China. TradeWinds B-747-400SF flights will depart both Beijing and Tianjin on Sundays and Wednesdays and in Guangzhou on Mondays and Thursdays. As set forth in greater detail in Exhibit WI-10, these schedules are designed to give shippers the capacity required on key days of cargo consolidation (Sundays and Wednesdays). TradeWinds' pattern and level of service will be well positioned to compete with the PRC and Asia-based carriers as well as the U.S. carriers already serving China through their Asia hubs, and with these routings, TradeWinds would serve seven of the top-ten China air cargo markets. TradeWinds believes that its proposed round-the-world routings will lessen the effects of the worsening directional imbalance which characterizes the China-U.S. air cargo market where, for 2007, 59% of segment capacity utilized is for imports to the U.S. and only 22% of the capacity utilized is for exports from the U.S. to China. Counsel: Pierre Murphy, 202-776-3980 Aloha Airlines, Inc. and Aeko Kula, Inc. d/b/a Aloha Air Cargo OST-2008-0158 - Transfer of Certificate of Public Convenience and Necessity
May 12, 2008 Response of Air Line Pilots Association to the Joint Applicants The May 6 application for approval to transfer Aloha's certificate to Aeko Kula lists a number of individuals as key personnel for Aeko Kula. It is ALPA's understanding that, with the exception of Mr. Tim Engle and Mr. Mike Coffman -- Aeko Kula's president and chief executive officer, respectively -- at least as of May 10, the listed individuals were not holding and had not been offered by Aeko Kula the positions set forth in the application. (See Declaration of John Dean, ALPA Senior Contract Administrator, attached hereto.) If ALPA's understanding is correct - and it is based on statements from individuals who are listed as holding key personnel positions with Aeko Kula - it is plain that the Department can not at this juncture approve the transfer of Aloha's certificate to Aeko Kula Counsel: ALPA, James Johnson, 202-797-4086
May 12, 2008 The need for expedition in this case is clear. As has been explained, the Aloha Airlines bankruptcy had been converted from Chapter 11 reorganization to a Chapter 7 liquidation at the time Saltchuk Resources, Inc. and AKI were able to reach tentative agreement with the Bankruptcy Trustee for the purchase of the cargo assets of AAI. Because AKI is committed to serving Hawaii's cargo needs in the future, the Bankruptcy Trustee sought and obtained approval from the Bankruptcy Court to keep AAI flying whilst AAI and AKI applied for DOT approval of the certificate transfer. The proceeding in the Bankruptcy Court is on a highly expedited schedule, given the fact that the Court has approved the continued operation of AAl's air cargo transportation only through May 14, at which time funding for the operation will be terminated. Indeed, the Court is to rule today on the proposal to transfer these assets. ALPA's attempt to cast doubt on AKI's plan is entirely misguided. While AKI/Saltchuk has indeed begun employment discussions with certain employees of AAI, and concluded agreements with others, it is essential to note that AAI has been subject to the jurisdiction of the Bankruptcy Court. The Bankruptcy Court must authorize the asset purchase transaction before AKI can close on the purchase transaction and reach final employment agreements with the AAI staff. Following this process is especially essential, given that these personnel are currently overseeing and flying cargo missions for AAI. These key managers simply cannot leave the AAI payroll and go on the AKI payroll until such time as the necessary court approvals and regulatory approvals are received without causing a disruption of flight services. As soon as the Court indicates its approval of the transaction, AKI will be making formal offers of employment to all of the key employees indicated in the transfer application, and to others as well. Counsel: Holland & Knight, Anita Mosner, 202-416-2604 for Aloha Air Cargo / Squire Sanders, Edward Sauer, 202-626-6641 for Aloha American Airlines, Inc., Iberia Lineas Aereas de Espana, S.A., Finnair OYJ, Malev Hungarian Airlines and Royal Jordanian Airlines OST-2007-28845 - Antitrust Immunity Served May 12, 2008 In this proceeding, American, Iberia, Finnair, Malev, and Royal Jordanian are seeking a grant of antitrust immunity to operate a global immunized alliance under the umbrella of the oneworld alliance. Before we can act on this request, we must determine whether the record is substantially complete and establish a procedural schedule. As explained below, we have determined that the record is not yet substantially complete, and direct the Joint Applicants to provide further evidence. On November 16, 2007, by Order 2007-11-12, we issued an evidence request that required the Joint Applicants to produce additional documents, data, and written answers to clarification questions. At that time, we stated that “more information is required concerning the Joint Applicants’ worldwide plans to cooperate and why they are seeking extraordinary relief from the antitrust laws to do so.” On February 21, 2008, the Joint Applicants responded to the evidence request. We have reviewed the response and accompanying documents carefully, and find that, in order to satisfy the Department’s evidence request, further clarification of the record is needed. In its current state, the record does not contain sufficient information for the Department to assess the competitive effects and public benefits of the proposed alliance. To ensure a substantially complete record, the Joint Applicants should supplement their February 21st response as follows:
By: Michael Reynolds OST-2002-14057 - Statement of Authorization - US-Colombia Codeshare with Delta May 9, 2008 Application for Codesharing Exemption Authority Avianca S.A. hereby applies for renewal of its exemption authority pursuant to 49 U.S.C. §§ 40109 and 41301, under which it conducts foreign air transportation of persons, property, and mail between the United States and Colombia pursuant to a code-sharing agreement with Delta Air Lines, Inc. Avianca also requests an amendment of this authority. Avianca's exemption authority for these services, most recently granted by Notice of Action Taken on May 10, 2007, expires on May 10, 2008. Avianca requests that this authority be amended to remove Orlando as a point to which Avianca operates pursuant to its code-share agreement with Delta. Counsel: Zuckert Scoutt, Richard Mathias, 202-298-8660, rdmathias@zsrlaw.com OST-2003-15060 - Exemption - Canada-US Passenger Charters May 9, 2008 Application for Renewal of an Exemption Canadian North hereby requests renewal of the exemption from 49 USC 41301 granted in this document on February 12, 2007 authorizing the carrier to conduct passenger and cargo charter operations between any points in Canada and any points in the United States, and other charters in accordance with 14 CFR Part 212. This authority was granted for a period of one year and expired on February 12, 2008. Canadian North conducts a charter passenger and cargo service to points in the United States utilizing six Boeing 737-200 aircraft Counsel: Canadian North, Steve Hankirk, 403-503-2311 OST-2006-24295 - Transfer of Certificate Authority May 9, 2008 Compass Airlines, Inc. has applied for an amendment to remove Condition 4 from its certificate of public convenience and necessity -- so that Compass's air carrier authority will not be limited solely to operations under a fee-for-service agreement with major carriers. Although Compass does not have immediate plans for service independent of its existing fee-for-service arrangement with Northwest, removal of this condition is necessary to enable Compass to secure permanent operating authority in foreign jurisdictions, including Canada. To allow Compass to continue its operations to Canada, it is essential that Condition 4 be removed as soon as possible. Compass has met its targeted growth plans and remains a successful regional jet carrier operating more than 80 daily scheduled flights to 27 cities in the United States, Canada, and Mexico. In these circumstances, and in light of Compass's significant management experience and financial resources, the provisional start-up Condition 4 is no longer necessary or required in the pubic interest. To assist the Fitness Division's evaluation of the financial feasibility of operations by Compass, Exhibit A to this Supplement contains a Pro Forma Income Statement for an illustrative service proposal independent of Compass's fee-for-service operations. This service proposal is based on two roundtrip scheduled flights six days per week (Sunday-Friday) and one flight on Saturdays, using one aircraft with 76 seats, and a 400 mile stage length. Counsel: Wiley Rein, Edward Faberman, 202-719-7402, efaberman@wileyrein.com Essential Air Service at Altoona and Johnstown, Pennsylvania OST-2002-11446 - Altoona May 9, 2008 Request for Community Comments of:
My purpose in writing to you at this time is to request any final comments you might have on the carriers' service and subsidy proposals before we submit a recommendation on the carrier-selection issue to the Assistant Secretary for Aviation and International Affairs. We request that you review each proposal and service option and submit any comments you may have before we submit a recommendation to the Assistant Secretary. We ask that you submit any comments you may have as soon as possible, but in any case no later than June 3, 2008.
By: Dennis DeVany Essential Air Service at Athens and Macon, Georgia OST-2002-11348 - Athens May 9, 2008 Re: Comments of Vintage Props & Jets My carrier submitted our Best and Final offer. Pacific Wings, a veteran to the Program, submitted its best and final offer. We feel that Air Greco, d/b/a Wings Air, has not. In a news story published in the Athens Banner-Herald on May 7th, Wings Air has made the following statement:
Vintage Props & Jets is formally protesting the proposal submitted by Air Greco d/b/a Wings Air and seeks a remedy. We are asking the Department to do one of the following:
We are not opposed to Wings Air starting service between Athens/Macon to Atlanta; we are disappointed that they have disregarded the Department's rules. The company either needs to withdraw their bid, the Department needs to withdraw it, or the company should alter their bid to include NO subsidy, as stated they will do according to the newspaper articles & submission to the Air Carrier Fitness Department (EAS revenues are not accounted for in their Economic Fitness Package). By: Nathan Vallier
Essential Air Service at Columbia, Missouri May 9, 2008 Ex-Parte Letter to Congressman Christopher Bond Thank you for your letter of April 25, regarding the carrier selection case for air service at Columbia, Missouri, under the Essential Air Service program. I am happy to inform you that the Department recently issued Order 2008-5-2, selecting Mesaba to provide three weekday round trips (20 per week) from Columbia Regional Airport to Memphis, for a two-year rate term. As you know, the selection of Mesaba was frilly supported by the community. By: Dennis DeVany Essential Air Service at DuBois and Franklin/Oil City, Pennsylvania OST-2004-17617 - DuBois
May 9, 2008 Ex-Parte Letter to Senator Robert Casey Thank you for your letter of April 29 regarding the recent essential air service situation at Dubois and Franklin/Oil City. I am happy to inform you that the Department recently issued Order 2008-5-3, selecting the option favored by the community. Gulfstream, operating under its code-share agreement with Continental Airlines, will provide DuBois with 24 weekly round trips to Cleveland (12 nonstop) and Franklin/Oil City with 18 round trips a week to Cleveland (12 nonstop). By: Dennis DeVany
May 9, 2008 Ex-Parte Letter to Congressman John Peterson Thank you for your letter of April 28 regarding the recent essential air service situation at Dubois and Franklin/Oil City. I am happy to inform you that the Department recently issued Order 2008-5-3, selecting the option favored by the community. Gulfstream, operating under its code-share agreement with Continental Airlines, will provide DuBois with 24 weekly round trips to Cleveland (12 nonstop) and Franklin/Oil City with 18 round trips a week to Cleveland (12 nonstop). By: Dennis DeVany Essential Air Service at Kingman and Prescott, Arizona Issued and Served May 12, 2008 Order Prohibiting Termination of Service and Requesting Proposals | Word By this order, the Department is (a) prohibiting Air Midwest, Inc., a wholly-owned subsidiary of Mesa Air Group, Inc. from terminating its subsidized service at Kingman and Prescott, Arizona, for 30 days beyond the end of its 90-day notice period, and (b) requesting long-term proposals from carriers interested in providing essential air service at either or both communities, with or without subsidy, by June 2, 2008. With respect to Kingman and Prescott, we expect proposals consisting of service with 15-seat or larger aircraft to a suitable hub airport, such as Phoenix, Las Vegas, Los Angeles, or Salt Lake City, with airline connections to the national air transportation system. In that regard, we note that the community of Kingman has expressed some interest in service to Las Vegas over the years. Kingman also informed us that the current service, linked with Prescott has worked well. Service should consist of three nonstop or three one-stop round trips per day (18 per week), if 19-seat aircraft (or similar) are proposed, or two nonstop or two one-stop round trips (12 per week), if aircraft seating more than 19 passengers are proposed. By: Michael Reynolds
OST-2002-12112 - Statement of Authorization - All-Cargo Wet-Lease to British Airways May 12, 2008 Application for Renewal of Statement of Authorization By this request, GSS seeks renewal of its statement of authorization, which was last renewed by Notice of Action Taken, dated July 11, 2007, and is set to expire July 11, 2008. GSS has conducted extensive cargo operations between the United Kingdom and the United States, and it desires to continue such operations in the future. Consequently, it is seeking renewal of the statement of authorization for an additional year. GSS has conducted numerous B-747 wet lease operations on behalf of British Airways between the United Kingdom and the United States. Counsel: Mietus Law, William Evans, 410-827-5074, bill@mietuslaw.com Hainan Airlines Company Limited OST-1998-3304 - Family Assistance Plans January 9, 2008 Counsel: Pillsbury Winthrop, Jonathon Fogalia International Air Transport Association May 9, 2008 Application for a Approval of Agreements Mail Vote 567 – Resolution 010z TC3 Japan, Korea-South East Asia, Within South East Asia Special Passenger Amending Resolution between Hong Kong SAR and Japan, between China (excluding Hong Kong SAR and Macao SAR) and Russia (in Asia) (Memo 1197). Counsel: IATA, Douglas Lavin National Task Force to Develop Model Contingency Plans to Deal with Lengthy Airline On-Board Ground Delays
April 29, 2008 Re: Second Meeting of the National Task Force - Bookmarked - 5.4MB
Order 2008-5-14 Issued and Served May 12, 2008 Order Revoking Commuter Authority By letter dated March 20, 2007, the Department advised RegionsAir of the provisions of section 204.7 of our rules which provides that, if an air carrier ceases conducting the operations for which it was found fit, willing, and able, its authority to conduct those operations is automatically suspended as of the date those operations ceased. In that letter, the Department informed the air carrier that it could not resume commuter operations until its fitness to do so had been redetermined. We further stated that, under section 204.7 of our rules, if the air carrier did not resume operations within one year of its cessation, that is, by March 9, 2008, its authorization would be revoked for dormancy. To date, we have not received an application from RegionsAir to have its fitness redetermined. 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 RegionsAir by Order 2005-2-15. This action is taken without prejudice to the company filing for new commuter authority in the future. By: Todd Homan United Air Lines, Inc. / American Airlines, Inc. OST-2008-0157 - United Air Lines - US-Russia Frequency Allocation
May 8, 2008 Consolidated Answer of Aeroflot Russian Airlines Aeroflot does not dispute that the United and American requests are consistent with the Agreement. However so are the applications for code-share authority filed by Aeroflot and Northwest Airlines, Inc. on October 13, 2006 in OST-2006-26106; by Aeroflot and Continental Airlines, Inc. on October 31, 2006 in OST- 2006-26257; and by Aeroflot and Delta Airlines, Inc. on January 3, 2007 in OST-2007-26805. Each of those code-share applications remains pending before the Department. The bilateral code-share authority requested in each of the three code-share applications would be at least as consistent with the U.S.-Russia Air Transport Agreement as the services proposed by United and American. Given the eighteen months that have elapsed since submission of the code-share applications submitted by Aeroflot and Northwest and by Aeroflot and Continental and the sixteen months that have elapsed since submission of the code-share application submitted by Aeroflot and Delta, Aeroflot respectfully submits that the Department should approve the long pending applications for authority to code-share with Northwest, Delta, and Continental before acting on United and American's more recently filed applications. Counsel: Garofalo Goerlich, Don Hainbach, 202-776-3976 OST-2007-0021 - American Airlines - Allocation of Six Weekly Combination Frequencies - Chicago-Moscow
May 12, 2008 American Airlines, Inc. has completed its poll of interested parties in connection with our application of May 7, 2008 in the captioned docket. We are seeking the allocation of one additional U.S.-Russia weekly combination frequency to increase service between Chicago and Moscow effective the week of May 3, 2009. Continental, Delta, and Northwest do not object, provided that fulfillment of American's request does not disturb their respective holdings of dormant codeshare frequencies. United does not object provided that its application for seven U.S.-Russia frequencies, filed on May 6, 2008 in OST-2008 0157, is immediately granted. On May 7, 2008, Baltia Air Lines, a non-operating start-up applicant in OST-2007-0007, advised by email that it objects to American's application "to bank any frequency until next year." We question the standing of Baltia to object. Founded in 1989, Baltia was granted certificate authority and frequencies by Order 1996-2-51, February 26, 1995, but did not start service. That authority remained dormant for almost five years and was revoked by Order 1999-12-6, December 8, 1999. Nearly eight years later, on October 3, 2007, Baltia filed another application, in OST-2007-0007, which remains pending. Baltia has made no showing that grant of one additional weekly frequency to American would jeopardize the allocation of one weekly frequency required by Baltia to commence its proposed service, since seven weekly frequencies will remain unallocated even after the award of seven to United and one to American. In these circumstances, the Department should grant American's application in this docket at the same time it grants United's application in OST-2008-0157. Counsel: American, Carl Nelson, 202-496-5647
May 12, 2008 By its application American seeks the allocation of one additional frequency under the U.S.‑Russia ASA in order to start a seventh weekly flight between Chicago and Moscow on May 3, 2009. American will start six weekly flights next month under a previously granted allocation. United has also filed an application for an allocation of seven weekly U.S.-Russia frequencies to start daily Washington-Moscow service in October 2008. See OST-2008-0157. Pursuant to polling, United has determined that no carrier objects to United's application. United has no objection to the grant of American's application so long as that does not affect the immediate grant of United's application. As United noted in its application, there are sufficient frequencies available to grant both of these applications. Counsel: United, Jeffrey Manley, 301-229-8571 OST-2008-0157 - United Air Lines - US-Russia Frequency Allocation May 12, 2008 This is to advise you that, pursuant to a polling, United has determined that none of the carriers served with United's referenced application for seven additional U.S.‑Russia frequencies will object to that application. One carrier, Baltia Air Lines, Inc., urged that United's frequencies not remain "in effect for an indefinite period [to be] available to other carriers who wish to provide service, if United is not operating on those frequencies." The Department relies upon dormancy conditions, rather than temporary allocations, to accomplish the goal stated by Baltia. United has consented to the imposition of dormancy conditions on the seven new frequencies. To the extent that Baltia may be referring to United's existing allocation of seven frequencies, for which dormancy conditions have been waived, it should submit its comments in OST-1996‑1672. American has applied for one additional frequency to start an additional weekly service next summer and urges that grant of United's allocation not delay the allocation of that frequency to American. Grant of United's application will leave eight frequencies unallocated, one of which will be available for the allocation that American is seeking. In these circumstances, United urges the Department to grant United's unopposed application for seven additional frequencies without further delay and without awaiting the answer date of May 21, 2008. United urgently needs this authority to begin marketing these services immediately. Counsel: United, Jeffrey Manley, 301-229-8571 OST-2008-0146 - Exemption - Additional Point in Japan - Nagoya May 9, 2008 On April 22, 2008, United Parcel Service Co. filed an Application for Exemption Authority authorizing it to provide foreign air transportation between the United States and a third point in Japan. No parties upon whom service was required by DOT regulations objected to UPS' Application. Accordingly, UPS requests that the Department grant its Application as soon as possible. Counsel: Kelley Drye, David Vaughan, 202-342-8452, dvaughan@kelleydrye.com |
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