OST Docket Filings for January 23, 2004

ASD plans to continue its service with two flights daily between Santo Domingo, Dominican Republic and New York, Santo Domingo, Dominican Republic and Miami, Santiago, Dominican Republic and New York, Santiago, Domingo, Dominican Republic and Miami.

Counsel: Luis Irizarry, 787-752-7621

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Essential Air Service at Grand Island, Kearney, McCook, Norfolk, North Platte, and Scottsbluff, Nebraska

OST-02-13983 - EAS at Grand Island, NE
OST-96-1715 - EAS at Kearney, NE
OST-97-3005 - EAS at McCook, NE
OST-98-3704 - EAS at Norfolk, NE
OST-99-5173 - EAS at North Platte, NE
OST-03-14535 - EAS at Scottsbluff, NE

December 23, 2003

Re: Proposal of Corporate Airlines for Service at Grand Island, NE

Enclosed are two proposals for Grand Island, NE. One envisions one-stop service to St. Louis over Kansas City utilizing 19 seat J32 aircraft. The projected cost covers only the GRI-MCI flying, and nothing for the MCI-STL leg. The other proposal is based on the utilization of 30 seat EMB equipment serving St. Louis nonstop from Grand Island. We would operate either proposed service as American Connection.

By: Fred Breeden, 615-223-6844

January 20, 2004

Proposal of Great Lakes Aviation

Great Lakes Aviation, Ltd. Hereby submits our proposals to provide essential air transportation at these points in Nebraska

By: Great Lakes, Dave Thomas, 307-432-7000

January 22, 2004

Proposal of Mesa Air Group (Replaced)

Pages Inadvertently Ommitted by DOT Staff

The bids Mesa is submitting have varying levels of frequency and link some of the communities in different service patterns. Mesa has also enclosed several options which offer service to Kansas City. The Kansas City options were based on feedback from the communities and provide enhanced air travel options.

By: Mesa, Scott Lyon, 602-685-4368

January 20, 2004

Proposal of Mesaba Airlines - Grand Island, Nebraska

Attached please find details of the application of Mesaba Aviation, d/b/a Mesaba Airlines (Mesaba) for EAS subsidy between Minneapolis/St. Paul, MN and Grand Island, Nebraska. Mesaba would provide this service as Northwest Airlink, beginning service no later than June 10, 2004, with some flexibility to begin service earlier if necessary. We propose to operate twice daily nonstop round-trips between these cities, excepting one MSP-GRI trip on Saturday, and one GRI-MSP trip on Sunday.

By: Mesaba, John Spanjers

January 19, 2004

Proposal of Multi-Aero - Norfolk, Nebraska

Attached please find our proposal to provide Essential Air Service at Norfolk, Nebraska. We will utilize 19‑seat, twin‑engine, pressurized aircraft, initially configured for 14 passengers and fitted with an onboard lavatory. We will operate three round‑trips per day, with an intermediate stop at Lincoln, Nebraska. Worksheets detailing our forecasted operations and a preliminary schedule are included with this submission.

We have chosen a Lincoln‑Kansas City routing based upon discussions with Norfolk officials and our analysis of the respective markets. Revenue estimates are based upon historical information, together with anticipated increases due to a more reasonable fare structure. Operating expenses are based on our own experiences in aviation operations and the aircraft manufacturer's actual direct cost operating history.

By: Mutli-Aero, Darnea Wood

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Essential Air Service at Plattsburgh, New York

Order 04-1-17
OST-03-14783

Issued January 23, 2004 | Served February 3, 2004

Order Extending Service Obligation

Although we have received proposals, this case will not be completed by the end of the current hold‑in period. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend CommutAir's service obligation at Plattsburgh, for an additional 30 days, or until reliable replacement service actually begins, whichever occurs first.

By: Randall Bennett

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Ogden Flight Services Group, Inc.

OST-01-9311 - Interstate Certificate
OST-01-11235 - Foreign Certificate

January 22, 2004

Re: Request for Additional Information

According to an October 13, 2003, article in The Palm Beach Post, PrivatAir, the Swiss-based 25 percent owner of OFSG, is providing charter operations within the United States. [The noted article specifically discusses a flight between West Palm Beach and Tallahassee.] Given that PrivatAir is a foreign air carrier, such operations would be against our regulations. Therefore, please explain how these operations are being conducted by PrivatAir, including how customers for these services are solicited.

In Supplement 6 to its applications, OFSG stated that the funds used by Rigi Holdings, LLC, to purchase its ownership interest in OFSG's parent (Operator Holding, Inc.) was obtained, in the form of a loan, from Atlantic Bank of New York. Further, OFSG stated that this loan bears a variable interest rate (beginning at 5.25 percent) and is payable on demand. We have learned that Atlantic Bank of New York is a wholly owned subsidiary of the National Bank of Greece. Because of this, and our citizenship requirements, we will require that a copy of the loan documents be supplied for our review. Also, please indicate whether members of the Latsis family, the Latsis Group, or any company owned by either of these parties, hold an ownership interest in the National Bank of Greece, and, if so, the percentage of ownership interest held.

By: Air Carrier Fitness, Janet Davis

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Requirement that Air Carriers Amend Plans to Address the Needs of Families of Passengers Involved in Aircraft Accidents

OST-96-1960

January 20, 2004

Notice - Domestic Carriers

This is to advise certificated air carriers that the Vision 100‑Century of Aviation Reauthorization Act (P.L. 108‑176, 117 Stat. 2490, December 12, 2003) amends 49 U.S.C. § 41113(b) to require, among other things, that certificated air carriers submit to the Department and the National Transportation Safety Board additional assurances for their respective plans to address the needs of families of passengers involved in aircraft accidents. The content and filing requirements for the update to the plans applicable to certificated air carriers are set forth in section 809 of Vision 100. A copy of section 809 is attached.

The additional assurances required to be submitted are described in paragraph (a)(2) of section 809 of Vision 100. In accordance with paragraph (c), certificated air carriers must submit their updated plans to the Department and the NTSB within 90 days of the statute's enactment. Since Vision 100 was signed into law on December 12, 2003, updated plans are due to be filed not later than March 11, 2004. Plans should be submitted to the Department and the NTSB

By: Samuel Podbersky

Requirement that Foreign Air Carriers Amend Plans to Address the Needs of Families of Passengers Involved in Aircraft Accidents

OST-98-3304

January 20, 2004

Notice - Foreign Carriers

This is to advise foreign air carriers serving the United States that the Vision 100‑Century of Aviation Reauthorization Act (P.L. 108‑176, 117 Stat. 2490, December 12, 2003) amends 49 U.S.C. § 41313(c) to require, among other things, that foreign air carriers submit to the Department and the National Transportation Safety Board additional assurances for their respective plans to address the needs of families of passengers involved in aircraft accidents. The content and filing requirements for the update to the plans applicable to foreign air carriers are set forth in section 809 of Vision 100. A copy of section 809 is attached.

The additional assurances required to be submitted are described in paragraph (b) of section 809 of Vision 100. In accordance with paragraph (c), foreign air carriers must submit their updated plans to the Department and the NTSB within 90 days of the statute's enactment. Since Vision 100 was signed into law on December 12, 2003, updated plans are due to be filed not later than March 11, 2004. Plans should be submitted to the Department and the NTSB

By: Samuel Podbersky

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Servicios Aereos Estrella, S.A. de C.V.

OST-99-6110 - Mexico-US Charter Air Transportation

Filed January 7, 2004 | Issued January 23, 2004

Notice of Action Taken

By: Paul Gretch

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Servicios Aereos Profesionales, S.A.

OST-97-3077 - Dominican Republic-US Foreign Air Carrier Permit

January 21, 2004

Application for Renewal of Foreign Air Carrier Permit

SAP is a corporation organized and existing under the laws of the Dominican Republic. It holds authority from the Dominican Republic Government to operate international charter air transportation and is specifically designated by the Government of the Dominican Republic and United States.

Counsel: Luis Irizarry, 787-752-7621

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Special Rules for Ronald Reagan Washington National Airport (Beyond-Perimeter Slot Exemptions)

OST-00-7181

January 23, 2004

Consolidated Comments of Alaska Airlines

Of the nine beyond-perimeter DCA applications now before the Department, Alaska’s
application best satisfies the AIR-21 and Vision 100 statutory criteria as well as the general
public interest considerations for the award of eight additional slot exemptions—four for two
LAX-DCA roundtrips and four for two State of Alaska-SEA-DCA roundtrips. In view of these carriers’ slot holdings, they each, to varying degrees, maintain that the Department’s November 2002 decision to award Delta two slot exemptions for Salt Lake City- DCA service should be interpreted for all time as meaning that Congress’ explicit statutory preference for limited incumbents is no longer entitled to significant decisional weight. Although these carriers must be concerned that their respective applications fall far behind those of Alaska and the other limited incumbent carriers, the statutory preference could not be clearer and indeed the Department has so stated in each of its three prior beyond-perimeter DCA slot decisions.

Counsel: Alaska and Squire Sanders, Marshall Sinick, 202-626-6651, msinick@ssd.com

January 23, 2004

Consolidated Answer of Aloha Airlines

The Aloha Application is clearly superior to all of the other applications in this proceeding. Aloha is the only true new entrant carrier with absolutely no presence at DCA to apply for any of the beyond‑perimeter slot exemptions. Aloha is also the only applicant to propose new nonstop service for the entire Washington metropolitan area. In addition, Aloha is the only carrier proposing to make full use of each of the slot exemptions it is awarded by providing new year‑round single‑plane service to Honolulu a major network benefit ‑ in connection with its proposed nonstop flights. Finally, Aloha is the only carrier in this proceeding to offer substantial fare reductions for its Washington‑Orange County and ‑Honolulu passengers in combination with its significant new network benefits.

Counsel: Silverberg Goldman, Michael Goldman, 202-944-3305

January 23, 2004

Consolidated Reply Comments of America West Airlines

Congress has created only a small number of additional beyond-perimeter exemptions at DCA to improve network competition in multiple markets beyond the perimeter. America West's proposal to use six exemptions to complete its DCA-to-the-West network - which serves 252,000 passengers annually in 44 beyond-perimeter markets - is by far the best use the Department can make of those slots to fulfill the statutory objectives and further the public interest. The Department has followed the Congressional mandate by using the majority of beyond-perimeter exemptions to foster new competition by low-fare, new entrant carriers. In 2000, the Department recognized that America West has the best Western network of any new entrant. By awarding America West the requested slots the Department will enable it to offer the schedule depth to finally compete on an equal basis with large legacy carriers for time-sensitive travelers. This would create first-time, full competition at DCA between a low-fare, new entrant network and the dominant legacy carrier networks.

Counsel: America West and Baker Hostetler, Joanne Young, 202-861-1532

January 23, 2004

Comments of American Airlines

Congress has mandated that the Department improve access to Ronald Reagan Washington National Airport from points in the western United States. Absent an award here, Los Angeles would be the largest U.S. city without nonstop access to DCA, and Los Angeles‑Washington would be the largest O&D market without nonstop DCA service. American's proposal will provide Los Angeles with its only nonstop flights to DCA, and will provide cities in California and Hawaii with important new competitive one‑stop service to DCA via LAX. The Department should promptly grant two beyond‑perimeter DCA exemption slots to American to operate daily nonstop service in the DCA‑LAX market.

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

January 23, 2004

Comments of Delta Air Lines

The Department's decision to authorize Delta's first daily DCA‑Salt Lake City flight has been confirmed by the strongest performance and greater network benefits of any beyond‑perimeter service. A second daily Salt Lake City flight will provide a balanced pattern of service with morning and afternoon departures in each direction, which will optimize beyond‑perimeter service benefits at this important hub. Regardless of which other applicants are selected, an award to Delta is essential to achieve the full statutory objectives of Vision 100.

Exhibits

Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060

January 23, 2004

Consolidated Answer of Frontier Airlines

Frontier’s continues to stimulate market growth because of its low and “relaxed” fares. All travelers need low fare options. Frontier is the only applicant that will provide such fare options for business and leisure travelers from throughout the country. It is important for the Department to allocate the limited number of available slots in such a way as to ensure that deregulation and competition survive. Since awarding Frontier its two (2) slots in July 2000, Frontier has significantly increased its DEN hub and connecting markets and now operates the DCA-DEN flights at 80% load factor. It is now time to expand Frontier’s ability to compete. These opportunities rarely occur. The Department has the opportunity to allow one of the low-fare success stories in this country – Frontier – to continue that journey and to bring stability to the U.S. transportation system.

Counsel: Ungaretti & Harris, Edward Faberman, 202-639-7500, epfaberman@uhlaw.com

January 23, 2004

Consolidated Answer of Primaris Airlines

The Department has only twelve slot exemptions to award in this proceeding. In distributing these slots, the Department should first attend to the promotion of new entry into the DCA market; Primaris is one of only two true new entrants in this proceeding. Moreover, among the nine Applicants, Primaris uniquely affords the Department the opportunity to introduce a new carrier to DCA and bring a novel type of competition to the transcontinental market featuring premium service at fares substantially lower for comparable service. Accordingly, the Department should award Primaris four slots for twice-daily service between LAX and DCA.

Exhibit PB-1: Letters in Support

Counsel: Patton Boggs, Gregory Walden, 202-457-6135, gwalden@pattonboggs.com

January 23, 2004

Comment of The City and County of San Francisco in Support of United Air Lines

Three airlines operating at SFO have applied (one conditionally) to serve the DCA-SFO market, which itself reflects the widespread recognition of the need for such service. We are strongly in support of the United Airlines application, as UAL currently has vast flight connection possibilities for the DCA-SFO service – namely, 166 daily flights to 30 U.S. West Coast and Hawaiian cities and 12 daily international flights to nine international Asian, Mexican and Pacific destinations. In addition, UAL’s large maintenance center located at SFO further indicates the airline’s commitment to this region.

Counsel: City and County of San Francisco, Robert Maerz, 650-821-5088, robert.maerz@sfgov.org

January 23, 2004

Comments of United Air Lines

A total of eight carriers and one putative carrier have applied for the twelve available beyond-perimeter slot exemptions. Of these applicants, four -- Alaska Airlines, America West Airlines, Delta Air Lines and Frontier Airlines -- are incumbent holders of the 12 beyond-perimeter slot exemptions established by the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century. As United's comments will show, United's application best achieves the Congressional intent that the newly-authorized DCA beyond-perimeter slot exemptions be allocated to maximize domestic network benefits and competition in multiple markets.

Counsel: United and Wilmer Cutler, Jeffrey Manley, 202-663-6670, jeffrey.manley@wilmer.com

January 23, 2004

Consolidated Answer of US Airways

Nine airlines, including US Airways, Inc. have applied for a total of forty-four beyond-perimeter exemptions, proposing nonstop service to nine different destinations from Reagan Washington National Airport. As only twelve such exemptions are available for allocation, the Department faces a series of difficult choices. While all the applicants will attempt to convince the Department of the superiority of their service proposals, the reality is that no other carrier in this proceeding provides the totality of benefits that US Airways' service proposals to San Juan and San Francisco offer.

Counsel: US Airways, Elizabeth Lanier, 703-872-5230, elanier@usairways.com

January 23, 2004

Answer of The Utah and Salt Lake City Parties

Delta's first DCA‑SLC flight has been extremely popular and well– received by Salt Lake City and the many other intermountain communities served via this important hub. But, a single daily DCA flight is not enough to meet the transportation needs of Salt Lake City and of the region. Morning and evening service is essential. For all of the reasons set forth by Delta in its Application, the Utah and Salt Lake City Parties urge the allocation of two (2) "beyond‑perimeter" DCA operating slots to Delta, in order to enable Delta to operate a second daily flight between DCA and SLC. The proposed service is clearly supported by the public interest, and will maximize the public benefits attainable through the newly‑created operating slots.

By: Salt Lake City Department of Airports, Tim Campbell, 801-575-2404

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Special Rules for Ronald Reagan Washington National Airport (Within-Perimeter Slot Exemptions)

OST-00-7182

January 23, 2004

Consolidated Comments of AirTran Airways

The Department has taken affirmative steps during the past several years to promote competition at various airports which have been closed to competition. For example, JetBlue exists today because the Department recognized that to compete, particularly on the east coast, new entrant carriers need multiple flights. Since its May 1993 report, “ The Airline Deregulation Evolution Continues” the Department has frequently mentioned the Southwest Effect. When Southwest will only enter markets where it can operate multiple frequencies. While AirTran would like to have access at DCA to the number of slots that has allowed JetBlue to operate multiple frequencies at JFK or the number of frequencies operated by Southwest at its primary cities, AirTran believes it can bring significant benefits to DCA-ATL travelers and to the dozens of small, medium, and large markets it connects to at ATL with the four (4) additional slots it has requested.

Counsel: Ungaretti & Harris, Edward Faberman, 202-639-7500, epfaberman@uhlaw.com

January 23, 2004

Comments of ComAir

Comair's proposal to provide the first and only nonstop service between DCA and the two small hub airports serving the state capitals of Kentucky and Mississippi best satisfies the vision of Vision 100. Accordingly, Comair urges the Department to award Comair the four requested within‑perimeter slot exemptions for nonstop service to Lexington/Frankfort and Jackson.

Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060

January 23, 2004

Comments of The City of Kansas City in Support of Midwest Airlines

Kansas City appreciates the difficultly faced by the DOT in making carrier and city selection decisions in this proceeding. However, given the lineup of carrier applicants and the cities they propose to serve, the single most deserving city-pair is Kansas City-DCA market. Its service to DCA is marginal and in early February will actually get worse by the loss of 176 seats each day, each way. While other DCA markets stand to also gain service as a result of a DOT decision in this case, no other market has demonstrated as great a need for additional service than has the Kansas City-DCA market. Therefore, Kansas City is in full support of the application of Midwest and urges that it be granted as a matter of greatest priority.

By: Kansas City Aviation Department, Philip Brown, 816-243-3100

January 23, 2004

Answer of The Lexington, Kentucky Parties in Support of ComAir's Application | Word

Blue Grass Airport and the citizens of Central, Eastern and Southern Kentucky encourage you to consider the benefits we have outlined above in your allocation of slots to provide nonstop service between Lexington and DCA. We strongly feel that the highest and best use of these valuable slots is to award them to Comair, Inc. to provide new nonstop service to Lexington, Kentucky. We encourage you to promptly approve the application of Comair for within perimeter slots to serve Lexington and DCA.

By: Lexington-Fayette Urban County Gov't, Teresa Isaac

January 23, 2004

Consolidated Answer of Midwest Airlines

The Midwest proposal to provide a third daily nonstop roundtrip operation in the underserved Kansas City-DCA market is fully consistent with Department's mandate under § 41718(b), as amended by Vision 100. The statutory mandate on the Secretary is to award these slots in a manner that promotes air transportation by new entrant and limited incumbent air carriers; 14 to communities without exiting nonstop service to DCA; to small communities; that will provide competitive nonstop air transportation on a monopoly route and that will produce competitive benefits.

Counsel: Silverberg Goldman, Robert Silverberg, 202-944-3300, rsilverberg@sgbdc.com

January 23, 2004

Consolidated Answer of Primaris Airlines

Of the six competing Applications for inside-perimeter slot exemptions, Primaris' proposal best satisfies the congressional objectives and criteria set forth in AIR-21. Primaris is the only true new entrant in this proceeding, and only Primaris promises to break into a monopolistic market with premium service at lower average fares. Accordingly, the Department should award six slot exemptions to Primaris Airlines to conduct nonstop service between DCA and MDW and/or DCA and STL.

Exhibits: Letters in Support

Counsel: Patton Boggs, Gregory Walden, 202-457-6135, gwalden@pattonboggs.com

January 23, 2004

Consolidated Answer of Spirit Airlines

Of the six "inside‑perimeter" applications before the Department, only Spirit would offer first‑time competitive service in a longstanding monopoly market. Offering Spirit the opportunity to provide competitive DCA‑DTW service will end a longstanding monopoly in the Detroit‑DCA market, and end a large competitive logjam in the greater Detroit‑Washington market, in which the only "competition" comes in the form of high‑fare RJ service operated by United Airlines out of lAD. Given the Department's mandate to encourage new entry and maximize the competitive benefit associated with the use of these scarce slots, the case for an award to Spirit is compelling.

Counsel: Garfinkle Wang, Anita Mosner, 703-294-5890

Consolidated Answer of US Airways

Quite simply, this proceeding is about access. Because carriers at DCA cannot simply add additional flights as opportunities arise, small and nonhub markets generally have had a difficult time securing nonstop service to DCA - the airport closest to the seat of the federal government. Even in the original AIR-21 slot proceedings, only four of the 12 slot exemptions were awarded to small or non-hub markets. After repeated failures to inaugurate service, two of the small/nonhub exemptions were withdrawn and are now being operated on a temporary basis pendente lite to the nonhub airport at Wilmington, North Carolina - but even these slots are, again, at stake in this proceeding. Thus, before ChicagoMidway receives more slot exemptions, or before Kansas City, Atlanta, Detroit or St. Louis realizes yet another increase in flights from DCA, the Department should support the promotion of first-ever access to both DCA and the DCA-region.

Counsel: US Airways, Elizabeth Lanier, 703-872-5230, elanier@usairways.com

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