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OST Docket Filings for January 27, 2005

Updated: 1/27/05 | 10:13 PM

Applications and Renewals:

Chautauqua - US-Canada Exemption

IATA - Special Passenger Amending Resolution from Japan

Northwest - Minneapolis/St. Paul-Puerto Plata Renewal

United - Application to Amend US-Germany-Third-Country Codeshare with Lufthansa

Answers and Replies:

Aerolineas Argentinas - Fifty-Third Escrow Deposit Report and Documentation

EAS at Kirksville, MO - Letter in Support of EAS

EAS at Pendleton, OR - Letter against Horizon Air / Letter in Support of Horizon Air

Intra-Alaska Mail Service - Equalization Notice of Alaska Central Express and Frontier Flying Service / Answer of Peninsula Airways to Frontier Flying Service / Clarification of Issues Raised by Frontier Flying Service

JetBlue - Reply of JetBlue to Answer of Delta and United / Answer of Air Carrier Association

Nondiscrimination on Basis of Disability in Air Travel - Comments of Mary Donahue, Peter Donahue, Paula Dunn, Katie Heffelfinger, Dario Fernandez, Theresa Ganley, Loretta Henry, and Judith Sacks

Ryan International d/b/a Sunship 1 - Letter in Support of Milwaukee-Cancun Route

US-Ecuador All-Cargo Service Case - Atlas Air Polling Letter

Notices of Action Taken:

American - One Additional US-Japan Combination Frequency - Dallas/Ft. Worth-Tokyo

Mexicana - Guadalajara-Charlotte

Volga-Dnepr - Huntsville-Khartoum Emergency Exemption

Notices and Orders:

America West and Royal Jordanian - Order Granting Approval and Antitrust Immunity for a Comercial Cooperation Agreement

Blackstar - Order Dismissing Applications




Aerolineas Argentinas, S.A.

OST-03-15092 - Under Section 41310(c) of the International Air Transportation Fair Competitive Practices Act

January 26, 2005

Re: Fifty-Third Escrow Deposit Report and Documentation

Attached is the FIFTY-THIRD Escrow Deposit REPORT and DOCUMENTATION for the week ended January 23, 2005. Aerolineas made a deposit into the escrow of U.S. $38,930.43, for a total escrow amount of U.S. $1,580,605.94.

Counsel: Rosen Weinhaus, John Romans, 212-530-4827, jromans@lrjwlaw.com

http://www.aerolineas.com.ar/

Index


America West Airlines, Inc. and Royal Jordanian Airlines

Order 05-01-23
OST-04-18613 - Approval of and Antitrust Immunity for Commercial Cooperation Agreement

Issued and Served January 27, 2005

Order Granting Approval and Antitrust Immunity for a Comercial Cooperation Agreement | Word

By this Order, we grant final approval of and antitrust immunity for a Commercial Cooperation Agreement between America West Airlines, Inc. and Royal Jordanian Airlines under 49 U.S.C. §§ 41308 and 41309. The Department’s action is subject to conditions, as explained further in this Order.

The U.S.-Jordan market is an important part of the U.S‑Middle East market. The U.S.‑Jordan open skies agreement eliminated barriers to new entry, expansion, and competition created by government regulation. It was the thirteenth open skies agreement signed and the first open skies agreement with a Middle Eastern country. The agreement creates unrestricted competitive opportunities for all U.S. and Jordanian airlines, including the flexibility to operate their own direct services, or joint services with another airline. The agreement recognizes the value of airline networks and provides opportunities for competing airlines and alliances.

By: Karan Bhatia

Index


American Airlines, Inc.

OST-98-3419 - Dallas/Ft. Worth-Tokyo

Filed January 6, 2005 | Issued January 21, 2005

Notice of Action Taken | Word

Allocation of one additional weekly U.S.-Japan combination frequency to provide scheduled service between Dallas/Ft. Worth and Tokyo, Japan. American will use this award to increase its service in this market from 13 weekly frequencies to 14 weekly frequencies.

By: Paul Gretch

http://www.aa.com/

Index


Blackstar Airlines Corporation

Order 05-01-24
OST-03-16716 - Certificate - Foreign Scheduled Air Transportation
OST-03-16717 - Certificate - Interstate Scheduled Air Transportation

Issued and Served January 27, 2005

Order Dismissing Applications

On December 12, 2003, Blackstar Airlines Corporation filed applications in Dockets OST-2003-16716 and OST-2003-16717 for issuance of certificates of public convenience and necessity to engage in interstate and foreign scheduled air transportation pursuant to 49 U.S.C. 41102.

On January 24, 2005, Blackstar filed a request to withdraw its applications.

In view of this, we have decided to dismiss the applications filed in Dockets OST-2003-16716 and OST-2003-16717 without prejudice.

By: Randall Bennett

http://www.blackstarairlines.com/

Index


Chautauqua Airlines, Inc.

OST-2005-20255 - Exemption - US-Canada Scheduled Passenger

January 27, 2005

Application for an Exemption

Chautauqua is a well-established, highly successful regional airline providing extensive scheduled interstate and foreign air transportation (including U.S.-Canada service) using EMB-135, -140 and -145 regional jets equipped with 37 to 50 seats. Chautauqua operates its regional jet service on a codeshare basis with major U.S. carriers. Chautauqua was recently awarded a certificate of public convenience and necessity authorizing it to engage in interstate scheduled air transportation using "large" aircraft, thereby enabling it to commence service using ERJ-170 aircraft configured with 70 passenger seats. Order 2004-11-1.

Chautauqua seeks the flexibility to use its ERJ-170 aircraft on existing and new U.S.-Canada routes, but requires an exemption to do so. Chautauqua recently underwent a DOT fitness evaluation in connection with its ERJ-170 operations in Docket OST-2004-18638.

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

Index


Compania Mexicana de Aviacion, S.A. de C.V.

OST-05-20008 - Exemption - Guadalajara-Charlotte

Filed January 3, 2005 | Issued January 27, 2005

Notice of Action Taken

Exemption from 49 USC section 41301 to permit the applicant to continue to conduct scheduled, combination service between Guadalajara, Mexico, and Charlotte, North Carolina.

By: Paul Gretch

http://www.mexicana.com/

Index


Essential Air Service at Kirksville, Missouri

OST-97-2515 - EAS at Kirksville, MO

January 18, 2005

Re: Missouri State Senator John Cauthorn Letter in Support of Essential Air Service

By: John Cauthorn

Index


Essential Air Service at Pendleton, Oregon

OST-04-19934 - EAS at Pendleton, OR


January 14, 2005

Re: Morris LeFever Letter against Horizon Air

By: Morris LeFever


January 27, 2005

Re: Rex and Cathy Baker Letter in Support of Horizon Air

By: Rex and Cathy Baker

Index


International Air Transport Association

OST-05-20252

January 27, 2005

Application for Approval of Agreements

Mail Vote 428 - Memorandum PTC3 0821, PTC23 EUR-J/K 0120, PTC23 ME-TC3 0226, PTC23 AFRTC3 0261, PTC31 N&C/CIRC 0300, PTC123 0306 dated 28 January 2005 Resolution 010d - Special Passenger Amending Resolution from Japan r1-r12

Counsel: IATA, David O'Connor, 202-293-9292

Index


Intra-Alaska Bush Service Mail Rates

OST-03-14694 - Intra-Alaska Class Service Mail Rates
OST-03-14695 - Mainline Mail Rates


January 26, 2005

Equalization Notice of Alaska Central Express

Alaska Central Express, Inc., an Alaskan incorporated air carrier currently authorized to transport United States Mail, hereby gives notice of its intent to equalize its mail rates to the lowest authorized rates legally in effect between Anchorage and Yakutat, Alaska with the lower levels paid or to be paid to other carriers or combinations of other carriers in these markets effective January 29, 2005.

Counsel: Silverberg Goldman, Robert Silverberg


January 26, 2005

Equalization Notice of Frontier Flying Service

Frontier Flying Service, Inc., an Alaskan incorporated air carrier currently authorized to transport United States Mail, hereby gives notice of its intent to equalize its mail rates to the lowest authorized rate legally in effect between Galena and Nulato with the lower levels paid to other carriers or combinations of other carriers in these markets effective January 24, 2005.

By: Craig Kenmonth


OST-03-14694 - Intra-Alaska Bush Service Mail Rates


January 27, 2005

Clarification of Issues Raised - Frontier Flying Service

Frontier Flying Service, Inc. would like to clarify two issues that have been raised by Alaska Central Express and the Carriers – Bering Air and Wright Air Service. In its petition dated January 18, Frontier recommended that mileages be limited to service longer than 50 and shorter than 530 miles. That limitation reflects the boundaries of Frontier’s operations, and so we expressed no opinion on what the Department should do for operations outside those bounds. To clarify, we do not oppose the Department adjusting regular Part 121 rates outside those parameters, i.e., we believe the markup should apply to all carriers being paid the regular Part 121 rate. There was also the Short Runway Part 121 rates. We raised that issue only to make clear that we were not concerned with that, since that rate does not directly affect us.

By: Frontier Flying Service, Robert Hajdukovich, 907-474-1739 x 233, bob@frontierflying.com


January 27, 2005

Peninsula Airways Answer of Frontier Flying Service

While the Department may be justified in concluding that the current Part 121 bush linehaul rate is not fully compensatory, and should be increased, there no basis for Frontier's self‑serving proposal to increase compensation only on the routes and stage lengths it serves. All Part 121 bush carriers depend on mail revenue to support their passenger service operations. It would be unfair to PenAir and the Part 121 bush communities PenAir serves to provide a special 40 percent subsidy payment to Frontier ‑‑ which would only exacerbate the rate disparity already caused by the Department's mileage taper. Why should the communities of Cold Bay, Dutch Harbor, Sand Point and St. George passengers have to pay more for airline service, while the communities served by Frontier receive both a higher rate under the mileage taper and a 40 percent additional subsidy payment to offset the cost of their service?

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

Index


JetBlue Airways Corp.

OST-04-19626 - Exemption from 14 CFR Part 382.21 (a) (2) - Wheelchair Stowage


January 27, 2005

Answer of Air Carrier Association of America | Word

The selection of 100 seats as a threshold for this regulatory requirement created a clear line from which all Part 121 carriers can base their business decisions and competitive strategies.  Section 382.21(a) (2) has been in place since 1990.  Carriers that have introduced aircraft and have had aircraft delivered after April 5, 1992, must meet this 100-seat mandate.  Every Part 121 carrier electing to operate an aircraft with 100 or more seats has had to comply with the wheelchair stowage requirements on all aircraft.  Multiple carriers have made significant accommodations to meet the wheelchair stowage requirement, including modifying aircraft and at times utilizing revenue generating seats to meet this mandate. JetBlue was fully aware of this requirement when it purchased these aircraft and was considering purchase of this aircraft.

On January 25, Embraer introduced new versions of the Embraer 190 and Embraer 195 (the 100 and 110-seat aircraft of its brand new model E-Jet-Family).  In announcing the new aircraft, Embraer stated, “the 170/190 Family of 70 to 110-seat E-Jets is a new-generation of commercial aircraft featuring advanced engineering design, exceptional performance, superior operating economics, and a spacious cabin.” They added, “the Embraer 190/195 AR versions have structural reinforcements in the fuselage, wings, pylons and flight control surfaces that allow the aircraft to be operated at higher Maximum Takeoff Weight and Maximum Landing Weight, translating in up to 300 nautical miles additional range, depending on specific operational conditions of each individual airline.”

If the Department grants relief to JetBlue, the Department must grant similar relief to all carriers to provide “priority” stowage for wheelchairs in the cargo compartment of an aircraft, rather than in the passenger cabin.  If the exemption is approved, the Department would create a special regulatory waiver for JetBlue, although other carriers are in identical positions.  This would create an unfair situation.  Therefore, the Department should deny this petition.

Counsel: ACAA, Edward Faberman, 202-639-7501


January 27, 2005

Reply of JetBlue Airways to Answer of Delta Air Lines and United Air Lines

What constitutes an undue burden to JetBlue’s business model in 2004, could not have been anticipated in March, 1990 when the stowage regulation was enacted. Aircraft capacity, design, and configuration are now a critical and integral component in an airline's business model, given the completely different financial environment facing the industry today. Requiring the removal of one row of seats (and the attendant loss of revenue), or the removal of part of the galley (and the attendant loss of valuable space to store emergency and customer service supplies), from the E-190 would cause an undue burden on JetBlue. The 1998 final rulemaking comments acknowledges "if small aircraft do not have enough cabin space, then priority storage in the cargo compartment would be acceptable. The Department in its March 1990 final rule published at 55 F.R. 8008, 8022, relied upon a study undertaken by Transport Canada indicating that storage of folding wheelchairs is dimensionally possible in 727, 767, and DC-9 aircraft coat closets, with minor modifications related to shelf position and recessed tie-downs.? Such is clearly not the case with the E-190 as demonstrated in JetBlue’s original petition and subsequent meetings and submissions.

JetBlue’s petition clearly falls within the guidelines set forth in the 1990 rulemaking that contemplate relief from the rule. The basic fabric of JetBlue's service is being placed at risk. If Delta, United or any other carrier is in fact similarly situated, i.e. operating 100 seat aircraft that can not accommodate a "DOT wheelchair" for in cabin stowage, without changing the basic economics of the service to be provided, they like JetBlue should receive and exemption from this rule.

Counsel: Dow Lohnes, Jonathan Hill, 202-776-2725, jhill@dowlohnes.com

http://www.jetblue.com/

Index


Nondiscrimination on Basis of Disability in Air Travel

OST-04-19482 - Notice of Proposed Rulemaking


January 27, 2005

Re: Comments of Mary Donahue

By: Mary Donahue


January 26, 2005

Re: Comments of Peter Donahue

By: Peter Donahue


January 27, 2005

Re: Comments of Paula Dunn and Katie Heffelfinger

By: Paula Dunn and Katie Heffelfinger


January 27, 2005

Re: Comments of Dario Fernandez

By: Dario Fernandez


January 27, 2005

Re: Comments of Theresa Ganley

By: Theresa Ganley


January 21, 2005

Re: Comments of Loretta Henry

By: Loretta Henry


January 24, 2005

Re: Comments of Judith Sacks

By: Judith Sacks

Index


Northwest Airlines, Inc.

OST-97-2609 - Minneapolis/St. Paul - Puerto Plata, Dominican Republic

January 26, 2005

Application for Renewal of Exemption

Northwest seeks renewal of an exemption authorizing it to engage in scheduled foreign air transportation of persons, property, and mail between Minneapolis/St. Paul and Puerto Plata. This exemption was last renewed in Docket OST-1997-2609 by Notice of Action Taken dated March 28, 2003, effective through March 28, 2005. Northwest requests that the Department renew this exemption for an additional two years.

Counsel: Northwest, Ronald Brower, 202-842-3193, ron.brower@nwa.com

http://www.nwa.com/

Index


Ryan International Airlines, Inc. d/b/a Sunship 1

OST-04-19887 - Milwaukee-Cancun

January 24, 2005

Re: Congressman Gwen Moore Letter in Support of Milwaukee-Cancun Route

By: Mark Green

http://www.flyryan.com/

Index


United Air Lines, Inc.

OST-04-19148 - US-Germany-Third-Country Codeshare with Lufthansa

January 26, 2005

Application to Amend Exemption

By Notice of Action Taken dated January 24, 2005, the Department granted United Air Lines, Inc. broad code-share-related exemption authority under 49 U.S.C. § 40109 to permit United to display its designator code on flights operated by Deutsche Lufthansa AG and other carriers that operate flights on Lufthansa's behalf: 1) between points in Germany; 2) between points in the United States and points in Germany, either nonstop or via third-country intermediates; and 3) between points in Germany and points in third countries, either nonstop or via third-country intermediates.

Pursuant to 49 U.S.C. § 40109, United hereby applies to amend the exemption granted by the January 24, 2005 NOAT to allow United to provide scheduled foreign air transportation of persons, property, and mail between the United States and points worldwide on a third-country code-share basis pursuant to blanket code-share statements of authorization previously approved by the Department for United's "UA" designator-code to be displayed on flights operated by Air New Zealand Limited; All Nippon Airways Co. Ltd.; Asiana Airlines, Inc.; Austrian Airlines, Osterreichische Luftverkehrs AG; Lauda Air Luftfahrt GmbH; Polskie Linie Lotnicze LOT S.A.; Scandinavian Airlines System; Singapore Airlines Limited; and Tyrolean Airways, Tiroler Luftfahrt GmbH dlb/a Austrian arrows. United also requests route integration authority to combine this exemption authority with its current certificate and exemption authority as permitted under applicable bilateral agreements. United requests that this exemption be granted for a period of at least two years.

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

http://www.united.com/

Index


Volga-Dnepr J.S. Cargo Airline

OST-05-20164 - Exemption and Statement of Authorization - Huntsville-Khartoum

Filed January 21, 2005 | Issued January 26, 2005

Notice of Action Taken

Exemption from the foreign air carrier permit and exemption conditions of Order 98-2-5 (Suspension of Cargo Air Operations between the United States and Sudan); and

Statement of authorization under 14 C.F.R. Part 212 of the Department’s rules to the extent necessary to permit Volga-Dnepr to operate one one-way fifth-freedom cargo charter flight with AN-124 aircraft from Huntsville, Alabama, to Khartoum, Sudan, on behalf of the Department of State contractor ASB-AIR, Inc. The purpose of the flight is to transport cargo trucks, wreckers, and water trailers, including outsized pieces, to Sudan for delivery to the African Union Cease Fire Commission Liaison Office within the framework of the State Department’s program for Humanitarian Assistance and Reconstruction. The flight is to operate on or about January 27-January 30, 2005.

Order 98-2-5, issued by the Department pursuant to Executive Order 13067 (published at Fed. Reg. 59987-59990, November 5, 1997), strictly prohibits virtually all transactions involving transportation of cargo to/from Sudan, and does not address exceptions set forth in the Executive Order. Executive Order 13067 § 3(a), however, specifically provides an exception for transactions for the conduct of the official business of the Federal Government. Volga-Dnepr asserts that it understands that the subject shipment qualifies as “official business of the Federal Government,” and requests an exemption from the provisions of Order 98-2-5 in order to permit this flight to Sudan.

By: Paul Gretch

http://www.vda.com.ru/

Index


2002 U.S.-Ecuador All-Cargo Service Case

OST-02-12503 - US-Ecuador All-Cargo Frequencies

January 26, 2005

Re: Polling Letter (Atlas Air) | Word

Earlier today, Atlas Air, Inc. filed an application for a further waiver of the startup condition attached to the Department’s award of U.S.-Ecuador exemption authority and frequencies, to March 31, 2005. We have polled the carriers served with the application (FedEx, UPS, Gemini, Amerijet, Arrow and Florida West) and have been authorized to state that none objects to the Atlas request.

Counsel: Atlas, Russell Pommer, 202-822-9121, rpommer@atlasair.com

Index



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