OST Docket Filings for February 17, 2004
Updated:
| Applications and Renewals:
AeroCaribe - Mexico-US Renewal (Codeshare with Mexicana) American Eagle - Dallas/Ft. Worth-Guadalajara Atlas - US-Colombia Cargo Renewal Ogden Flight Services - Motion for Rule 12 Confidential Treatment / Supplement No. 11 US Passenger Carriers / American - Ukraine Third-Country Codeshare Answers and Replies: DHL Airways - Ex Parte Letter to Senator Ted Stevens EAS at Clarksburg and Morgantown, WV - Ex-Parte Letter to Senator Rockefeller (DCA Slots) Intra-Alaska Bush Mail Rates - Equalization Notices of Belair and Tanana Scott Aviation - Response to Information Request Special Rules for Reagan Washington National Slots (Beyond-Perimeter) - Conversation with Gov. Schwarenegger / Conversation with Gov. Fletcher / Conversation with Rep. Don Young / Conversation with Rep. Christopher Cox Special Rules for Reagan Washington National Slots (Within-Perimeter) - Letters in Support of US Airways Notices of Action Taken: America West and Mesa - Phoenix-San Jose del Cabo/Puerto Vallarta AVIANCA - Colombia-US Renewal China Airlines - Taiwan-US Renewal Vega - Bulgaria-US Cargo Charters (One One-Way Flight) Volga-Dnepr - Phildelphia-Moffett Field Notices and Orders: EAS at Montana Communities - Selecting Carrier (Big Sky) EAS at Staunton, VA - Selecting Carrier (Colgan Air) EAS at Wyoming Communities - Requesting Proposals SATO Travel - Enforcement Proceeding |
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OST-03-14393 - Exemption and Statement of Authorization - Mexico-US / Codeshare with Mexicana February 17, 2004 Application for Renewal of Exemption and Statement of Authorization Hereby requests renewal of the following operating authorities granted to Aerocaribe by the Department of Transportation: (1) exemption to perform scheduled foreign air transportation of persons, property and mail between: (i) Mexico City, Mexico, and Austin, Texas; and (ii) the coterminal points Cancun./Puerto Vallarta, Mexico, and the coterminal points San Antonio/Austin, Texas; and (2) statement of authorization permitting Aerocaribe to display the twoletter designator code of Compania Mexicana de Aviacion, S.A. de C.V. ("Mexicana") on Aerocaribe's scheduled flights on the routes identified above in sections (i) and (ii). Counsel: Squire Sanders, Charles Donely, 202-626-6840, cdonely@ssd.com Aerovias Nacionales de Colombia, S.A. (AVIANCA) OST-02-14057 - Exemption - Colombia-US Filed January 28, 2004 | Issued February 17, 2004 Renew exemption from 49 U.S.C. § 41301 to conduct foreign air transportation of persons, property and mail between currently authorized points in Colombia, via currently authorized U.S. gateways, to Atlanta, Boston, Chicago, Dallas/Ft. Worth, Denver, Houston, Orlando, Philadelphia, Tampa and Washington, D.C., on a code‑share basis only. AVIANCA is currently authorized to serve any point or points in Colombia, and to serve Miami, New York, and San Francisco or ( Editor's Note: Footnote Ended). By: Paul Gretch America West Airlines, Inc. and Mesa Airlines, Inc. OST-03-16444 - Exemptions - Phoenix-Los Cabos/Puerto Vallarta Filed October 30, 2003 | Issued February 13, 2004 Scheduled foreign air transportation of persons, property, and mail between (1) the terminal point Phoenix, Arizona, and the terminal point San Jose del Cabo, Mexico; and (2) the terminal point Phoenix, Arizona, and the terminal point Puerto Vallarta, Mexico. The joint applicants state that they will use the requested authority to permit Mesa to offer service in the subject markets with regional-sized aircraft (CRJ-900s), placing the code of America West on its flights. The applicants state that America West will also provide year-round service in the markets with its own B757 and/or B-737 aircraft, in addition to Mesa’s new direct-carrier service (own-aircraft) flights. We have carefully examined the evidence presented in this case, and have decided that it is in the public interest to (1) grant the exemption request of Mesa for the proposed services, along with the requested America West/Mesa code-share authorizations; (2) withdraw the dormant designation authority of Alaska to serve the Phoenix-San Jose del Cabo/Puerto Vallarta markets; (3) designate Mesa for direct-carrier service in the Phoenix-San Jose del Cabo/Puerto Vallarta markets; and (4) convert America West’s current exemption authority to provide direct-carrier service in the subject markets from seasonal service to year-round service. Under the U.S.-Mexico aviation agreement, up to two U.S. carriers may be designated to operate direct-carrier service in a given city-pair market. Mesa needs a designation for the services proposed here. As discussed above, both America West and Alaska are already designated to provide scheduled direct-carrier service in the Phoenix-San Jose del Cabo/Puerto Vallarta markets. However, Alaska is not now using its authority and has provided no firm plans to resume services. It is not our policy to allow valuable operating rights to go unused, particularly when another carrier is interested in serving the routes and has firm plans to do so. While Alaska maintains that its authority is protected under the Department’s blanket dormancy waiver Order 2003-4-18, it has clearly stated that it will not meet the resumption of service deadline for the Phoenix-San Jose del Cabo/Puerto Vallarta markets specified in that order. In the circumstances presented, with carriers ready and willing to use the authority at issue, we find that the public interest calls for withdrawing Alaska’s designation. With respect to United, we appreciate the concerns raised here regarding the use of two designations for affiliated-carrier services in U.S.-Mexico markets. Indeed, we have sought Mexican aviation authorities acceptance of such services without the need for separate designations. However, such an arrangement has not been forthcoming. We will continue our efforts in this regard. However, under the circumstances, we believe that the public interest is best served by granting the requested authority here for the proposed services while we continue to work on this issue with the Mexican aviation authorities. Notwithstanding this, however, should a competing U.S. carrier present a proposal to provide regularly-scheduled service in the subject city-pair markets with its own aircraft, we would be prepared to reconsider whether, in the circumstances presented, award of the authority granted here continues to be in the public interest. By: Paul Gretch OST-04-17128 - Exemption - Dallas/Ft. Worth-Guadalajara February 17, 2004 American Eagle proposes to begin daily Dallas/Ft. Worth‑Guadalajara nonstop service on June 10, 2004, using either 44‑seat ERJ‑l40 or 50‑seat ERJ‑145 aircraft. Southbound, American Eagle will depart DFW at 1150 and arrive in GDL at 1419. Northbound, American Eagle will depart GDL at 1510 and arrive in DFW at 1746. American Eagle is seeking exemption authority, rather than a designation for service with small aircraft (60 seats or fewer) under 14 CFR Part 298, in order to obtain the flexibility to use 70‑seat CRJ‑90 aircraft on this route in the future. Under the U.S.-Mexico Air Transport Agreement, two U.S. carriers may serve the Dallas/Ft. Worth-Guadalajara route. American Airlines is presently the only carrier operating nonstop service in this market. American plans to continue to operate its service, in addition to the service to be provided by American Eagle. On August 25, 2000, Comair received a designation to serve Dallas/Ft.Worth-Guadalajara using small aircraft under 14 CFR Part 298. Comair does not operate service, and its designation should be revoked. Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com OST-00-7477 - US- Colombia All-Cargo February 17, 2004 Application for Renewal of Exemption | Word Requests two-year renewal of its exemption authorizing it to engage in scheduled foreign air transportation of property and mail between any point or points in the United States, via intermediate points, and a point or points in Colombia, and beyond Colombia to points in the Western Hemisphere, and to integrate that authority with its other certificate and exemption authorities. Atlas is using the referenced authority to serve Bogota and needs it to remain in effect. Indeed, as part of ongoing service adjustments, Atlas may add service to another point in Colombia. Counsel: Atlas, Russell Pommer, 202-822-9121, rpommer@atlasair.com OST-97-3138 - Taiwan-US Filed January 29, 2004 | Issued February 17, 2004 Renew exemption from 49 U.S.C. § 41301 to: (1) conduct scheduled foreign air transportation of persons, property and mail from points behind Taiwan, via Taiwan, and intermediate points, to points in the United States and beyond; (2) conduct charter foreign air transportation of persons, property and mail pursuant to the terms of the Air Transport Agreement between the American Institute in Taiwan and the Taipei Economic & cultural Representative Office; (3) conduct other charters pursuant to 14 CFR 212 of the Department's regulations; and (4) exercise all other rights enumerated in Annexes I and II of the Agreement. By: Paul Gretch OST-02-13089 - Petition of United Parcel Service Co. to Institute a Public Inquiry Into The Citizenship and Foreign Control of DHL Airways, Inc. February 9, 2004 Re: Ex Parte Letter to Senator Ted Stevens October 3, 2003: I am disturbed to learn that your Department is thwarting the Administrative Law judge proceeding on the citizenship case mandated in the FY03 supplemental Appropriations bill. I understand DOT has limited discovery and refused to postpone the deadline for resolving the case, despite a federal judge holding one of the parties in contempt for failing to produce documents. I believe this is a breach of the relationship between the Department of Transportation and the Congress. Please do what you can to ensure that DOT complies with the spirit of the Supplemental amendment. By: Norman Mineta Essential Air Service, Inc. at Clarksburg and Morgantown, West Virginia OST-03-15886 - EAS at Clarksburg and Morgantown, W February 13, 2003 Re: Ex Parte Letter to Senator John Rockefeller IV Thank you for your letter of November 13 requesting that six available slots at Ronald Reagan Washington National Airport (DCA) for Essential Air Services will be held available for service to three West Virginia communities: Clarksburg, Morgantown, and/or Lewisburg. As your letter indicates, in response to its solicitation order, the Department received only one proposal, from Corporate Airlines, Inc., to serve Clarksburg and Morgaritown. Unfortunately, Corporate proposed service using a 19‑seat aircraft that was not in compliance with Transportation Security Administration requirements for DCA operations and could not inaugurate service. The Department is continuing to review other options that would encourage the restoration of this service, consistent with our public interest goals of supporting small community air service and efficiently utilizing DCA capacity. By: Norman Mineta Essential Air Service at Glasgow, Glendive, Havre, Lewistown, Miles City, Sidney and Wolf Point, Montana Order 04-2-10 Issued February 9, 2004 | Served February 12, 2004 Order Selecting Carrier and Establishing Subsidy Rates By this order, the Department is selecting Big Sky Transportation Co., d/b/a Big Sky Airlines, to continue providing essential air service at seven Montana communities for a new two‑year period beginning March 1, 2004, at subsidies of $5,765,139 for the first year and $5,790,938 for the second year. Reaching a decision is therefore principally a matter of weighing Big Sky's community support against Air Midwest's lower subsidy requirement. The communities' support for Big Sky is overwhelming -- in fact, unanimous. Air Midwest's subsidy requirement is roughly $800,000 a year less than Big Sky's, spread over seven communities, but we must also note that Big Sky's subsidy requirements for the next two years represent de minimis increases over its current subsidy. We are willing to accede to the communities' unanimous preference when the result requires almost no additional program spending. By: Karan Bhatia Essential Air Service at Laramie, Riverton, Rock Springs & Worland, Wyoming Order 04-2-9 Issued February 9, 2004 | Served February 12, 2004 By this order, the Department is requesting proposals from carriers interested in providing essential air service at the four Wyoming communities listed above for a future two-year period, with or without subsidy. With respect to the specific Wyoming markets at issue here, we expect proposals consisting of service, at a minimum, with two-pilot, twin-engine aircraft with at least 15 passenger seats, and offering a minimum of two or three round trips each weekday and each weekend from the essential air service community to Denver. Such service is generally consistent with what the communities currently receive. We encourage proposals that meet those requirements in an efficient manner. Carriers are also welcome to propose more than one service option, if they choose; they need not limit themselves to those requirements if they envision other, potentially more attractive service possibilities-different hubs, for example-with subsidy requirements that remain competitive. Great Lakes has served all of these communities since 1998. During the year ended June 30, 2003, the most recent 12-month period for which traffic data are available, Laramie averaged 24.4 enplanements a day, Riverton 30.9, Rock Springs 24.3, and Worland 7.4. These figures represent declines of 21 to 34 percent from levels registered during calendar year 2000, prior to the terrorist attacks of September 11. By: Karan Bhatia Essential Air Service at Staunton, Virginia Order 04-2-8 Issued February 9, 2004 | Served February 12, 2004 Order Selecting Carrier and Establishing Final Subsidy Rate By this order, the Department is selecting Colgan Air, Inc., dlb/a US Airways Express, to provide essential air service at Staunton, Virginia, for an additional one-year period beginning May 1, 2004, at a subsidy rate of $615,578. After careful review of Colgan's proposal and the community's views, we have decided to select Colgan to continue providing essential air service at Staunton for an additional year, beginning May 1, at its proposed subsidy rate of $615,578. Colgan's proposed rate is reasonable for the service at issue, and its performance continues to be satisfactory. By: Karan Bhatia Intra-Alaska Class Service Mail Rates OST-03-14694 - Bush Mail Rates
February 14, 2004 Re: Equalization Notice of Belair | Word Belair, Inc. equalizes its rates to the lowest rate, or combination of rates, applicable in the markets it serves directly or by connection at an intermediate point. By Order 2004-2-12, the Department of Transportation established a new linehaul rate for markets where Part 121 bush service is provided by aircraft certificated by the manufacturer for 19 seats or more on one flight a week or more. The language of the Order sets the rate “for markets where a carrier scheduling and operating at least one round trip a week with Part 121 aircraft in passenger service qualifies for the carriage of mail”. This language establishes a single lawful rate for each market, and appears to obviate the need for any sort of equalization notice. None-the-less, with an abundance of caution, Bellair, Inc. hereby gives notice of its equalization to the lowest lawful rate in any market where it operates service. Requests equitable tender and full tender of bypass mail pursuant to the provisions of the Rural Service Improvement Act and the practices and procedures of the Department of Transportation and the United States Postal Service. By: Michael Spisak
February 17, 2004 Equalization Notice of Tanana Air By Order 2004‑2‑12, the Department of Transportation established a new linehaul rate for market where Part 121 bush service is provided by aircraft certificated by the manufacturer for 19 seats or more on one flight a week or more. The language of he Order sets the rate "for markets where a carrier scheduling and operating at least one round trip a week with Part 121 aircraft in passenger service qualifies for the carriage of Mail". This language establishes a single lawful rate for each market, and appears to obviate the need for any sort of equalization notice. None‑the‑less, with an abundance of caution, Tanana Air Service hereby gives notice of its equalization to the lowest rate in any market where it operates service. Tanana Air Service equalizes its rates to the lowest rate, or combination of rates, applicable in the markets it serves directly or by connection at an intermediate point. By: Fred Ciarlo Ogden Flight Services Group, Inc. OST-01-9311 - Certificate of Public Convenience and Necessity February 13, 2004 Motion for Rule 12 Confidential Treatment The documents for which Rule 12 treatment is requested are as follows: (i) Exhibit OFSG‑1104 regarding certain property in Greece co‑owned by George Antoniadis and (ii) Exhibit OFSG--1105, which is a promissory note issued by Rigi Holdings LLC in favor of Atlantic Bank of New York. OFSG also has a pending application for foreign charter air transportation (Docket OST-01-11235). By letter dated January 22, 2004, the Department has requested certain additional information in connection with the pending application of Ogden Flight Services Group, Inc. for a certificate of public convenience and necessity to engage in interstate charter air transportation. Attached hereto as Exhibit OFSG-11O1 is a copy of Amendment No. 2 to the Shareholder's Agreement effecting the change in the buy-out price for OHI stock held by PTI. Amendment No. 2 has been duly executed by the parties and is dated as of August 1, 2003. Counsel: Zuckert Scoutt, Malcolm Benge, 202-298-8660, mlbenge@zsrlaw.com OST-04-17124 - Violations of 14 CFR Part 257 and 49 USC 41712 Issued and Served February 17, 2004 Notice of Enforcement Proceeding and Proposed Assessment of Civil Penalties In a telephone survey conducted in June 2003 by the Department's Aviation Consumer Protection Division, Sato's agents made the full, appropriate disclosures as required by section 257.5 in only two cases among 44 test calls involving domestic markets. With respect to international code‑share markets, compliance was somewhat better, with appropriate disclosures occurring in 3 of 6 test calls. Partial disclosure, in which either the corporate name of the operating carrier or the network name of the carrier was disclosed, occurred in a number of additional cases. Even after prompting by the investigator, in only several cases did the agents respond with at least a partial disclosure of the code‑sharing arrangement. This record clearly indicates a serious failure of compliance on the part of Sato. Most troubling, Sato' s compliance did not reach acceptable levels after the Enforcement Office advised the company of the problems it had found. In this regard, on February 10, 2004, investigators from the Aviation Consumer Protection Division made further test calls to the travel agency to determine the extent of compliance with the rule's disclosure provisions. Of 10 calls placed to Sato, in only 4 instances did the investigators receive the full disclosure of code‑sharing arrangements as required by section 257.5. By: Samuel Podbersky January 9, 2004 OST-03-15893 - U.S. Air Carrier Interstate Certificate Re: Response to Information Request Scott Aviation conducts on‑demand charter operations under Part 135. We primarily serve the business traveler although not exclusively. Based in Chicago, we have flown to, and continue to fly to, most major metropolitan areas, as well as many smaller communities where scheduled commercial air service is not available. Since our charters are purely ad hoc, it would not be possible to identify particular "markets" within which we operate. We flew 1268 flight hours in calendar year 2002 serving 260 destinations. So there is no confusion, Scott Aviation is currently operating smaller corporate jets that are able to use smaller airports. Our DC9 aircraft will not be using some of the airports that Scott Aviation currently serves. The FAA is approaching this process as a joint certificate authorization (121/135). By: Geoffrey Hodgson Special Rules for Ronald Reagan Washington National Airport (Beyond-Perimeter Slots)
February 4, 2004 Re: Conversation with Representative Don Young By: Michael Reynolds
February 5, 2004 Re: Conversation with Governor Ernie Fletcher By: Samuel Reid
February 5, 2004 Re: Conversation with Representative Christopher Cox By: Robert Goldner
February 9, 2004 Re: Conversation with Governor Arnold Schwarzenegger By: Michael Reynolds Special Rules for Ronald Reagan Washington National Airport (Within-Perimeter Slots)
November 12, 2003 Re: The Honorable Elizabeth Dole Letter in Support of US Airways By: Elizabeth Dole
November 18, 2003 Re: The Honorable Michael Easley Letter in Support of US Airways By: Michael Easley US Passenger Carriers / American Airlines, Inc. OST-03-15021 - Waiver of the Dormancy Condition on Limited-Entry Route Authority February 17, 2004 Notice of American Airlines Concerning US-Ukraine and Contingent Application for Dormancy Waiver Hereby gives notice that, unless the Department promptly grants its application of October 31, 2003 in OST-2002-12550 for transfer of U.S. -Ukraine third-country codeshare designation and 2.5 weekly frequencies, American will not be using this authority as of April 1, 2004. American hereby contingently applies for a dormancy waiver in order to preserve this authority until such time as the Department grants the transfer application and American has implemented codeshare service between the U.S. and Ukraine with British Airways. Pleadings opposing American's transfer application were submitted by United Air Lines and Continental Airlines. American's application has now been pending for more than 3‑1/2 months without action. The authority has been protected from automatic revocation for dormancy by Order 2003‑4‑18, but that protection ends on March 31, 2004. In these circumstances, unless the Department promptly grants the transfer application so that American and British Airways can begin codeshare service to Ukraine by April 1, 2004, the Department should grant a dormancy waiver. That waiver should continue until such time as the Department has granted American's transfer application and American has implemented U.S. ‑Ukraine codeshare service with BA. Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com OST-02-14162 - Bulgaria-US Cargo Charter Filed December 23, 2002 | Issued February 13, 2004 On December 23, 2002, Vega applied for an exemption from 49 U.S.C. § 41301 in Docket OST-2002-14162 to conduct charter foreign air transportation of property and mail between Bulgaria and the United States, and other all-cargo charters pursuant to 14 CFR 212 of the Department’s regulations. On April 9, 2003, Vega requested a statement of authorization pursuant to 14 CFR 212 of the Department’s regulations to conduct one one-way all-cargo charter flight between Prestwick, UK, and China Lake Naval Air Warfare Center, CA, April 14, 2003, on behalf of Defense Contract Management Agency. We received no answers to either application. On April 11, 2003, based on the Federal Aviation Administration’s recommendation, we granted the exemption to the extent it would enable Vega to conduct the Prestwick-China Lake Naval Air Warfare Center flight, and approved the statement of authorization. On February 11, 2004, Vega applied for a statement of authorization pursuant to 14 CFR 212 of the Department’s regulations to conduct one one-way all-cargo charter flight between Houston, TX, and Malabo, Equatorial Guinea, February 14-17, 2004, on behalf of Marathon Oil Company. We are granting Vega’s exemption application only to the extent that enables it to conduct the one-way all-cargo charter flight between Houston and Malabo. We are so limiting this authority based on the recommendation of the Federal Aviation Administration. We are deferring action on the remainder of Vega’s request in Docket OST-2002-14162 (i.e., to conduct long-term cargo operations) pending further advice from the FAA. By: Paul Gretch Volga-Dnepr J.S. Cargo Airline OST-04-17115 - Emergency Exemption - Philadelphia-Moffet Field Filed February 12, 2004 | Issued February 13, 2004 Exemption from 49 U.S.C. section 40109(g) to permit the applicant to operate, on behalf of Lockheed Martin, one, one‑way cargo charter flight from Philadelphia, Pennsylvania, to Moffet Field, Sunnyvale, California, on or about February 18‑22, 2004, using its AN‑124‑100 aircraft. Volga‑Dnepr plans to carry on this flight one Lockheed Martin Space Systems communication satellite deck antenna. The applicant stated that Lockheed Martin urgently needs lift to meet tight development and launch schedules, that the cargo is too large for transportation on U.S.‑carrier aircraft; and that surface transportation is not feasible because of the delicate nature and high value of the cargo, and conditions unsuitable to maintaining system integrity compliance. By: Karan Bhatia |
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