OST Docket Filings for January 31, 2007

Air Marshall Islands, Inc. hereby applies for renewal of the exemption from 49 U.S.C. 41301, granted to it by Notice of Action Taken dated February 7, 2006, to conduct scheduled foreign air transportation of persons, property and mail between Majuro and Kwajalein, Marshall Islands, and Honolulu, Hawaii, and foreign charter air transportation between the Marshall Islands and any point in the United States.

AMI currently operates a fleet of Dornier 228-212 and DHC 8-102 aircraft. The Board of Directors of the company continues to evaluate the markets that AMI will serve to meet the requirements of the Republic of the Marshall Islands. The large aircraft combination scheduled service to and from Honolulu formerly operated by AMI remains suspended.

OST-2007-26805 - Statements of Authorization and Related Exemption - US-Russia Codesharing

In our answer on January 18, 2007, we stated that we do not object to the applicants' request for bilateral codeshare authorization, provided that the Department obtains assurances from the Government of the Russian Federation that it will promptly approve requests by U.S. carriers, including American, to engage in third-country codesharing between the U.S. and Russia via intermediate points in Europe, consistent with the terms of the existing U.S.-Russia Air Transport Agreement.

In their reply, Delta and Aeroflot contend that "[t]he approach advocated by American... could prejudice future U.S.-Russia negotiations and ultimately impede U.S. efforts to obtain broader codeshare authority opportunities and could jeopardize or delay additional liberalization with Russia."

However, no further negotiations are required between the U.S. and Russia to address third-country codesharing for U.S. carriers such as American in the U.S.-Russia market. Those rights are already provided by the current U.S.-Russia Air Transport Agreement. The issue is not negotiation of additional rights, but implementation by Russia of bilateral provisions that are already in effect. The Department should defer action on the Delta/Aeroflot application pending assurances that Russia will approve third-country codesharing arrangements which do not require additional negotiations.

This letter pertains to the proposed elimination of mail service to Zachar Bay and Port Bailey and urges that any such decision be reconsidered.

I believe the government should eliminate waste whenever possible. I also believe removing Port Bailey and Zachar Bay from the contract indicates a gross oversight on your part as to the value of the mail service to these locations. Mail is an essential government service for individuals and businesses, especially in remote Alaska where the mail may be the only form of communication.

OST-1998-3771 - Exemption - Puerto Rico and St. Vincent - Port-of-Spain - Dominicana

Filed April 7, 2000 and May 11, 2001 | Amended January 19, 2007 | Issued January 31, 2007

Renew and amend exemption under 49 USC § 40109, issued May 14, 1999, in the present Docket, which currently permits the applicant to engage in (1) scheduled foreign air transportation of persons, property and mail between (a) the coterminal points Antigua and Barbuda, Montserrat, and St. Kills and Nevis; via the intermediate points Anguilla, the British Virgin Islands, and St. Maarten; and the coterminal points St. Croix, St. Thomas, and San Juan, Puerto Rico; and beyond to Santo Domingo, the Dominican Republic; and (b) the coterminal points Antigua and Barbuda, and St. Kitts and Nevis, via the intermediate points St. Maarten and St. Lucia; and the terminal point Miami, Florida; and (2) charter foreign air transportation of persons, property and mail pursuant to 14 CFR Part 212 of the Department's regulations. LIAT asks that this authority be renewed and amended to include authority to engage in scheduled foreign air transportation of persons, property and mail between (a) San Juan and St. Vincent, and beyond to Port of Spain, Trinidad; and (b) San Juan and Dominica. In its January 19, 2007, amendment, LIAT also provided updated information concerning its ownership.

LlATs May 11, 2001 filing was styled in the form of a renewal request. However, we are treating it as a supplement to the April 17, 2000 renewal application, to the extent that it provides updated information as to some aspects of the original renewal request.

In 2000 and 2001, Daystar Airways d/b/a Nevis Express filed a number of responsive pleadings to LIATs April, 2000 and May, 2001 renewal requests. LIAT responded on June 5, 2000. Daystar has filed no further pleadings. By Order 2004-6-2, dated June 4. 2004. the Department revoked Daystar's certificate of public convenience and necessity, for reasons of dormancy. We note that on May 15, 2000. Daystar filed a motion to extend the answer period for LIAT's April 7, 2000 application, and that Day star subsequently filed an answer to that application. In the circumstances presented, we will dismiss Daystar's motion as moot.

Polet Airlines, a Russian cargo charter air carrier, hereby applies, pursuant to 49 USC § 40109(g), for exemption from the otherwise applicable provisions of the statute and of the Department's regulations so as to authorize Polet's operation of eight one-way outsized cargo charter flights from Victorville, CA to Savannah, GA between February 4 and February 12, 2007.

This application is filed because the shipper, US Air Mobility Command, urgently requires the transportation from Victorville, CA to Savannah, GA of 22 oversized military helicopters and accompanying parts between the February dates above described! The present schedule requires operation by aircraft RA 82075 from Victorville to Savannah on February 4, 6, 7, 8, 9, and 11 and operation by RA 82068 on February 5, and 6, 2007.

Four of the eight flights will entail transportation of three AH-64D helicopters and parts, each helicopter measuring 49 x 9.67 x 12.6 feet. Two flights will each transport two AH-64D helicopters and parts, as above described, plus one UH-60A utility helicopter, which measures 53.8 x 14.67 x 12.33 feet, and two flights will each transport two UH-60A utility helicopters as above described, plus helicopter parts.

OST-2005-23307 - Certificate of Public Convenience and Necessity - Interstate Scheduled Passenger

Virgin America is providing the requested redlined versions of newly revised documents such as its Stockholders Agreement, Bylaws, Subscription Agreement, Interim Note Agreement, Subordinated Note Agreement, Senior Secured Promissory Notes, and Senior Secured Promissory Notes, Series B, Security Agreement, and Trademark License Agreement. In addition, Virgin America also is filing the referenced new Voting Trust Agreement, which will confirm the commitment of the Virgin Group to place its shares with a U.S. citizen trustee, even though its holdings fall well within the voting equity limits allowed by statute. Finally, Virgin America is also providing the Department with a letter agreement signed by Virgin America and each of its Investors evidencing their commitment to be bound by these newly revised agreements.

When combined with the detailed affidavits submitted as part of its Objections, Virgin America's documents truly do amount to overwhelming evidence that demonstrably alters the "totality of the circumstances" and conclusively establishes the validity of its U.S. citizenship.

Exemption from 49 USC § 40109(g) to permit the applicant to operate one, one-way, all-cargo charter flight, using its AN-124-100 aircraft, carrying outsized cargo on behalf of Lockheed Martin Space Systems, from Denver, Colorado, to Cape Canaveral Air Force Station, Florida, on or around February 1-2, 2007. The applicant states that the flight would carry an AVB009 Atlas V Booster Vehicle and support equipment. The applicant asserts that LMSS needs the subject lift to meet aggressive schedules associated with mission integration and launch; 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 extremely high value of the cargo.

We were persuaded that the need to move the cargo to meet aggressive schedules associated with mission integration and launch; the fact that the cargo could not be transported by surface because of its delicate nature and extremely high value; and the unique, outsized nature of the cargo, constituted an emergency not arising in the normal course of business. Moreover, based on the representations of the U.S. carriers, we concluded that no U.S. carrier had aircraft available that could be used to conduct the operation at issue here. We also found that grant of this authority would prevent unreasonable hardship to LMSS.

The arguments offered by Continental and Northwest for not finalizing the Show Cause Order were previously made in this proceeding and rejected. Merely repeating these same points in their Objections does not somehow make them more compelling than they were a couple of weeks ago, when the Department wisely found them to be much less compelling than those in favor of nonstop service between the Nation's Capital and Beijing. Indeed, the compelling facts underlying Washington-Beijing service have not changed at all.

Simply put, Continental and Northwest have raised nothing new in their Objections, other than to attack the Department itself (which is unfounded and irrelevant). Accordingly, the Department should reject their Objections and finalize the Show Cause Order awarding these U.S.- China frequencies for Washington, D.C.-Beijing service as expeditiously as possible.

The important public benefits of New York/Newark-Shanghai service must not be sacrificed to a new decisional standard elevating incremental capacity and codeshare service beyond foreign gateways with foreign airlines over the need for nonstop service in primary markets such as New York/Newark-Shanghai and competition for dominant incumbents in frequency-constrained international markets. To maximize the public benefits from the award of route authority and the seven U.S.-China frequencies available March 25, 2007, provide the best service to the traveling public and enhance the overall market structure and level of competition in the U.S.-China market, the Department should award seven frequencies to Continental for service between New York/Newark and Shanghai.