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OST Docket Filings for March 24, 2004

Updated: 3/25/04 | 7:57 AM

Applications and Renewals:

Aeromexico - Cincinnati-Cancun Codeshare Renewal with Delta

Champion Air - Detroit-Cancun / Denver-Cancun / US-Mexico

Commander Mexicana - US-Mexico Charter Air Transportation Renewal

Hong Kong Fifth-Freedom All-Cargo - Motion of UPS for an Immediate Allocation

Answers and Replies:

Lan Ecuador and Lan Chile - Will Not Respond to Continental Surreply

Special Rules at Reagan Washington National (Beyond-Perimeter) - Letters in Support of US Airways / Sacramento Metro Chamber Letter in Support / Letter in Support of United from Senator Daschle

Notices of Action Taken:

US Airways - Charlotte/Baltimore/Washington/Philadelphia - St. Maarten, Netherlands Antilles

Notices and Orders:

EAS at Athens, GA - Selecting Carrier (Air Midwest)

EAS at Lancaster, PA - Order Reestablishing Eligibility and Requesting Proposals for Essential Air Service (Chautauqua Airlines)




Aerolane, Lineas Aereas Nacionales del Ecuador S.A. d/b/a LAN ECUADOR / Linea Aerea Nacional Chile, S.A. (LAN CHILE)

OST-03-14291 - Exemption -Ecuador-US / Lan Chile Wet-Lease to Lan Ecuador
Undocketed

March 23, 2004

Re: Lan Ecuador and Lan Chile Will Not Respond to Surreply of Continental Airlines

On March 22, Continental Airlines filed an unauthorized Surreply in connection with the above-referenced renewal applications. The document raises no relevant matter that has not been addressed by the parties in prior pleadings and by the Department in granting the bilateral-based authority for which renewal is requested. Accordingly, please be advised that Lan Ecuador and Lan Chile do not intend to respond further to the document. Lan Ecuador and Lan Chile respectfully request that the Department expeditiously grant their above-referenced applications and their other pending applications, which were filed on January 13, 2004.

For the record, Lan Ecuador and Lan Chile deny Continental's unsupported allegation that they are "encouraging Ecuador" to deny code‑share opportunities to U.S. carriers and their code‑share partners as well as the suggestion that such opportunities are similar to the Lan Chile‑Lan Ecuador wet lease.

Counsel: Zuckert Scoutt, Charles Simpson, 202-298-8660

Index


Aerovias de Mexico, S.A. de C.V.

OST-01-10457 - Exemption - Cincinnati-Cancun Codeshare with Delta Air Lines

March 23, 2004

Application for Renewal of Exemption Authority

By this application, Aeromexico seeks renewal of its exemption authority to provide service between Cancun, Mexico, and Cincinnati, Ohio, which was last granted by Notice of Action Taken, dated May 2, 2003. The exemption is scheduled to expire on May 9, 2004. Aeromexico currently provides one weekly nonstop round trip by placing its "AM" designator code on B-757 flights operated by Delta between Cancun and Cincinnati, and it desires to continue to provide such service in the future. This nonstop service clearly has generated service benefits for the traveling public, and continuation of the service clearly is in the public interest. In addition, the exemption authority enables Aeromexico to offer competitive service in the market.

Counsel: Piper Rudnick, William Evans, 202-861-6459

Index


Commander Mexicana, S.A. de C.V.

OST-97-2245 - Exemption- US-Mexico

March 23, 2004

Application for Renewal of Exemption

Pursuant to 49 U.S.C. §40109 and Subpart D of the Department's Rules of Practice in Proceedings, Commander Mexicana, S.A. de C.V. hereby applies for renewal of its exemption from 49 U.S.C. §41301, which authorizes Commander Mexicana to engage in charter foreign air transportation of passengers between Mexico and the United States, and other passenger charter operations in accordance with 14 C.F.R. Part 212, using small aircraft. Commander Mexicana also requests renewal of its stopover privileges and continued relief from the requirement to provide advance notice of each flight, or series of flights, between Mexico and the United States.

The Department granted the above authority to Commander Mexicana pursuant to a Notice of Action Taken dated April 1, 2003. Commander Mexicana requests that the Department renew this authority, which is scheduled to expire April 19, 2004, for a period of at least two years.

Commander Mexicana invokes the automatic extension provisions of the Administrative Procedure Act, 5 U.S.C. §558(c), as implemented by 14 C.F.R. Part 377, to maintain its exemption authority in effect pending a final Department determination on this renewal application.

Counsel: Roller & Bauer, Lee Bauer, 202-331-3300

Index


Essential Air Service at Athens, Georgia

Order 04-03-25
OST-02-11348

Issued and Served March 23, 2004

Order Selecting Carrier and Establishing Subsidy Rates

We have decided to select Air Midwest's twelve nonstop‑round‑trip‑per‑week option beginning when it inaugurates that service pattern or 60 days after the date of service of this order, whichever is first, through the 24th full month thereafter, at the annual subsidy rate of $392,108. Our decision is consistent with the community's preference of air carrier, the rate is reasonable for the service at issue, and the carrier's performance continues to be satisfactory.

In this case, all of the statutorily required selection criteria point toward the selection of Air Midwest. First, the community prefers the selection of Air Midwest. Second, Air Midwest provides service at Athens under a code‑share arrangement with US Airways at Charlotte that offers beyond‑hub benefits such as one‑stop check in; interline baggage handling, through ticketing, and joint fares. Moreover, Air Midwest has operated for many years as a scheduled carrier in general and, specifically, at Athens. Corporate, on the other hand, no longer has community support, and does not have contractual or marketing arrangements with a major carrier at Atlanta ‑ both statutory criteria. Also, as indicated below, Air Midwest's subsidy rate is substantially less than that proposed by Corporate.

By: Karan Bhatia

Index


Essential Air Service at Lancaster, Pennsylvania

Order 04-03-26
OST-02-11450 - EAS at Lancaster, PA

Issued March 24, 2004 | Served March 29, 2004

Order Reestablishing Eligibility and Requesting Proposals for Essential Air Service | Word

By this order, the Department is requesting proposals for essential air service, with or without subsidy support, at Lancaster, Pennsylvania. Proposals are to be filed no later than 30 days after the service date of this order. Upon consideration of the Request for Review submitted by the Authority, including the Certification of the Governor of Pennsylvania, we have determined that Lancaster is more than 70 miles from the Philadelphia International Airport, when measured by the most commonly used route between the two points. As a result, we will reinstate Lancaster’s eligibility to receive subsidized air service under the Essential Air Service program through September 30, 2007, in accordance with 49 U.S.C. 41731 et seq. and Section 409 of Vision 100.

By: Karan Bhatia

Index


Grand Holdings, Inc. d/b/a Champion Air


OST-04-17405 - Exemption - Detroit-Cancun

March 24, 2004

Application for an Exemption

By this application, Champion Air seeks an exemption from 49 U.S.C. § 41101 to engage in scheduled foreign air transportation of persons, property and mail between Detroit, Michigan, on the one hand, and Cancun, Mexico, on the other hand. Champion Air intends to operate these services with Boeing 727‑200 aircraft and intends to operate one flight per week on a year round basis and two additional flights per week on a seasonal basis, commencing on May 1, 2004 or as soon as all U.S. and Mexican authority to operate is received.

By: Champion Air, Curt Berchtold, 952-814-8785


OST-04-17407 - Exemption - Denver-Cancun

Application for an Exemption

By this application, Champion Air seeks. an exemption from 49 U.S.C. § 41101 to engage in scheduled foreign air transportation of persons, property and mail between Denver, Colorado, on the one hand, and Cancun, Mexico, on the other hand. Champion Air intends to operate these services with Boeing 727‑200 aircraft and intends to operate two flights per week (Wednesdays and Saturdays) on a .year round basis (except for September) commencing on May 1, 2004 or as soon as all necessary U.S. and Mexican permits are received.

By: Champion Air, Curt Berchtold, 952-814-8785


OST-04-17408 - Exemption - US-Mexico

Application for an Exemption

Applies for an exemption from 49 U.S.C. § 41101 authorizing it to engage in.scheduled foreign air transportation of persons, property and mail between the following six city pairs: Denver (DEN) and Puerto Vallarta (PVR), Dallas/Fort Worth (DFVV) and Cozumel (CZM), Dallas/Fort Worth (DFW) and Puerto Vallarta (PVR), Minneapolis/St. Paul (MSP) and Mazatlan (MZT), St. Louis (STL) and Cancun (GUN), and St. Louis (STL) and Puerto Vallarta (PVR).

Champion Air plans to operate once weekly seasonal scheduled service between DEN and PVR commencing in January 2005. Champion Air plans to operate four flights per week seasonal scheduled service between DFW and CZM commencing in May 2004. Champion Air plans to operate two flights per week seasonal scheduled service between DFW and PVR commencing in May 2004. Champion Air plans to operate three flights per week seasonal scheduled service between MSP and MZT commencing in December 2004. Champion Air plans to operate two flights per week year round• scheduled service between STL and CUN along with additional seasonal services commencing in May 2004. Champion Air plans to operate two flights per week seasonal scheduled service between STL and PVR commencing in June 2004. Champion Air asks that the requested authority be effective immediately and remain in effect for two years.

By: Champion Air, Curt Berchtold, 952-814-8785

Index


Special Rules at Reagan Washington National Airport (Beyond-Perimeter Slots)

OST-00-7181


January 26, 2004

Re: Puerto Rico Chamber of Commerce Letter in Support of US Airways

By: Hector Mayol


February 24, 2004

Re: Sacramento Metro Chamber Letter in Support

By: Matthew Mahood


March 24, 2004

Re: Letter in Support from Senator Tom Daschle, South Dakota (United Air Lines)

Counsel: Wilmer Cutler, Jonathan Moss

Index


US Airways, Inc.

OST-95-554 - Exemption - Charlotte/Baltimore/Washington/Philadelphia - St. Maarten, Netherlands Antilles

Filed March 8, 2004 | Issued March 24, 2004

Notice of Action Taken | Word

Scheduled foreign air transportation of persons, property, and mail between a point or points in the United States, on the one hand, and a point or points in St. Maarten, Netherlands Antilles, and points beyond, on the other.

By: Paul Gretch

Index


2004 Hong Kong Fifth Freedom All-Cargo Frequency Proceeding

OST-04-17279

March 24, 2004

Motion of United Parcel Service for an Immediate Allocation and Dismissal from the Proceeding

Respectfully moves that the Department of Transportation issue an order allocating UPS the six (6) Hong Kong-Singapore-Clark frequencies requested in its March 23, 2004 Application, relieving UPS from any further procedural and evidentiary requirements of this proceeding, and dismissing UPS from the proceeding. In accordance with Rule 11 of the Department's procedural regulations (14 C.F,R. § 302.11), UPS submits the following:

Under the 2002 Memorandum of Understanding between the United States and Hong Kong, there are presently eighteen (18) fifth freedom frequencies available for allocation. Yesterday, four carriers applied for a total of seventeen (17) frequencies‑of which only eleven (II) are capable of being allocated as requested. UPS applied for six (6) frequencies over Singapore and Clark. FedEx Express, Polar and Northwest applied for five (5), three (3), and one (1), respectively, over Seoul, Korea. Only five (5) Hong Kong‑Seoul frequencies are available for allocation.

Because the applications present a situation in which (i) the total available frequencies are under‑subscribed and (ii) UPS' request for Hong Kong‑Singapore‑Clark authority is uncontested and frequencies are available for that service, UPS believes that it is in the public interest, as well as that of the Department and the other parties, to immediately grant UPS its requested authority' and to release it from the remainder of this proceeding. 2 No other application is mutually exclusive with that of UPS.

Counsel: UPS and Kelley Drye, David Vaughan, 202-955-9864

Index


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