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Delta Air Lines, Inc. - 2005 Filings
Counsel: Delta, Scott McClain, 404-773-6514, scott.mcclain@delta.com
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Delta Air Lines, Inc. OST-97-3289 - US-Mexico Codeshare with Aeromexico January 10, 2005 Application for Renewal of an Exemption Delta Air Lines, Inc. hereby applies for renewal of an exemption, pursuant to 49 U.S.C. § 40109 and Subpart C of the Department's Rules of Practice in Proceedings, to authorize Delta to continue to engage in scheduled foreign air transportation of persons, property and mail between points in the United States and points within Mexico beyond Delta's authorized Mexican gateway points for transborder services, for the purpose of blind-sector codesharing services operated between the Mexican gateway points and other points within Mexico on services operated by either Delta or Aerovias de Mexico, S.A. de C.V. Delta's U.S.-Mexico beyond gateway exemption authority was initially granted by Order 99-6-6 and subsequently renewed by Notices of Action Taken dated April 19, 2001 and March 13, 2003. The authority is set to expire on March 13, 2005. Delta requests that this authority be renewed for an additional period of at least two years. Counsel: Shaw Pittman, Alexander Van der Bellen, 202-663-8382, sascha.vanderbellen@shawpittman.com
OST-04-19161 - Atlanta Rio de Janeiro January 10, 2005 Delta Air Lines, Inc., has completed a poll of all carriers on the attached service list. No carrier has any objection to a shortened answer date of 5 pm, Tuesday, January 11, 2005. Counsel: Shaw Pittman, Alexander Van der Bellen, 202-663-8382, sascha.vanderbellen@shawpittman.com OST-05-20116 - US-Russia Frequency Allocation and Notice of Integration Authority - Atlanta-Moscow January 14, 2005 Application for a US-Russia Frequency Allocation and Notice of Integration Authority Delta Air Lines, Inc. hereby requests an allocation of seven (7) U.S.-Russia frequencies, and gives notice of its intent to rely on route integration authority, in order to offer daily nonstop service between Atlanta and Moscow, beginning on June 1, 2005. Delta's proposed new service will dramatically increase nonstop-to-nonstop service options for U.S.-Russia travelers and shippers, and will provide important benefits to Atlanta-Moscow local passengers. Delta intends to operate Atlanta-Moscow service using Boeing 767-300ER aircraft, equipped with 204 seats. The eastbound service will depart Atlanta at 15:55 and arrive Moscow at 10:25 (local time). Westbound, the flight departs Moscow at 12:25 and arrives Atlanta at 15:50. The service will operate on a daily basis between June and September, and four times weekly from October to April. Counsel: Shaw Pittman, Alexander Van der Bellen, 202-663-8060, sascha.vanderbellen@shawpittman.com OST-05-20145 - Exemption - Blanket Codeshare January 21, 2005 Application for Exemption Authority Pursuant to 49 U.S.C. § 40109, Delta Air Lines, Inc. hereby applies for an exemption authorizing Delta to provide scheduled foreign air transportation of persons, property, and mail between the United States and points worldwide on a third-country codeshare basis pursuant to blanket codesharing statements of authorization approved by the Department. Delta further requests route integration authority to combine this exemption authority with its existing certificate and exemption authority, to the extent permitted by international agreements. Delta requests that the exemption be granted immediately and remain in effect for a period of at least two years. Counsel: Shaw Pittman, Alexander Van der Bellen, 202-663-8060 OST-2005-20116 - US-Russia Frequency Allocation and Notice of Integration Authority - Atlanta-Moscow January 24, 2005 Re: United Air Lines No Objection to Delta's Application United has no objection to Delta's application so long as the grant of the frequency allocation sought by Delta would not affect the frequency allocation held by United for US-Russia codeshare service. See Order 96-10-1. Counsel: Wilmer Cutler, Jeffrey Manley, 202-663-6670
OST-2003-14290 - Exemption - Ontario-San Jose del Cabo; Las Vegas-Monterrey January 24, 2005 Application for Renewal of an Exemption Delta offers nonstop Ontario-San Jose del Cabo and Las Vegas-Monterrey service by displaying its designator code on flights operated by Aeromexico. Delta requests that this exemption be renewed for an additional period of at least two years, or until 90 days after the Department's final determination on Delta's application for amendment of a certificate adding these routes, which is pending in Docket OST-1999-6275, whichever occurs earlier. Counsel: Shaw Pittman, Alexander Van der Bellen, 202-663-8060, sascha.vanderbellen@shawpittman.com OST-05-20116 - US-Russia Frequency Allocation and Notice of Integration Authority - Atlanta-Moscow January 25, 2005 Counsel for Delta has polled all U.S. carrier representatives served with the above-referenced Delta Air Lines application filed on January 14, 2005. No carrier objects to Delta's application. Accordingly, Delta urges that its request for an allocation of U.S.-Russia frequencies for Atlanta-Moscow service be granted as soon as possible. Counsel: Shaw Pittman, Alexander Van der Bellen, 202-663-8060, sascha.vanderbellen@shawpittman.com OST-2005-20122 - Continental - Exemption - Blanket Codeshare Authority January 26, 2005 Consolidated Answer of United Air Lines In Docket OST-04-19148, United has requested an amendment to its current code-share-related exemption authority that would enable it to introduce new services with multiple blanket code-share partners to and from points in third countries for which United does not already hold certificate or exemption authority. This would allow United to expand its service offerings to the public without the burden of having to apply for a separate exemption on each occasion when it wants to code-share with these blanket code-share partners, consistent with applicable air service agreements, in situations where it lacks underlying route authority. United agrees with Continental and Delta that the Department should consistently apply its code-share policy to all blanket code-share partnerships. As United has pointed out in Docket OST-2004-19148, the Department has recognized that due process requires it to extend "'similar treatment to similarly situated applicants" (Application of United, at 6, quoting Order 96-7-21, at 14) and accordingly United has no objection to the Department contemporaneously granting other pending applications from "similarly situated" U.S. carriers seeking similarly broad code-share-related exemption authority so long as the Department also approves United's pending application for similar authority. Counsel: United and Wilmer Cutler, Jeffrey Manley, 202-663-6670, jeffrey.manley@wilmerhale.com OST-05-20145 - Exemption - Blanket codeshare January 26, 2005 Delta has polled all U.S. carrier representatives served with the above-referenced Delta Air Lines application filed on January 21, 2005. No carrier has objected to Delta's request for blanket codeshare exemption authority. Only United filed an answer, stating that it did not object, so long as United's similar, later-filed application was granted "contemporaneously." Delta submits that since the blanket codeshare exemption it has requested does not involve limited entry opportunities, and is clearly authorized by current DOT policy, there is no reason to delay approval of Delta's request to coincide with United's later filed application. Counsel: Shaw Pittman, Alexander Van der Bellen, 202-663-8060, sascha.vanderbellen@shawpittman.com OST-97-3051 - Atlanta-St. Lucia February 8, 2005 Application for Renewal of Exemptions By Notice of Action Taken dated April 17, 2003 (Dockets OST-97-3051 and OST-99-5749), the Department renewed exemptions authorizing Delta to provide service between Atlanta, Los Angeles, New York and Miami, on the one hand, and Grenada, Antigua and St. Lucia, on the other; and between the United States and Belize. These exemptions have enabled Delta to provide U.S.-Caribbean codeshare service in conjunction with Air Jamaica Limited. Subsequently, by Notice of Action Taken dated December 16, 2003 (Docket OST-97-3051), the Department amended Delta's U.S.-St. Lucia exemption authority to permit Delta to introduce nonstop Atlanta-St. Lucia service using its own aircraft. Similarly, by Notice of Action Taken dated June 18, 2004, the Department amended Delta's U.S.-Belize exemption authority to allow service using its aircraft, thereby allowing Delta initially to offer nonstop Atlanta-Belize City service. These exemptions have enabled Delta to provide service to four Caribbean destinations that otherwise receive only very limited service, initially on a codeshare‑only basis. Delta subsequently introduced nonstop service between its Atlanta hub and St. Lucia and, just recently, between Atlanta and Belize City, using its own aircraft. These Delta services increase competition and provide consumers with additional convenient options for travel between the United States and these popular tourist destinations in the Caribbean. Counsel: Shaw Pittman, Alexander Van der Bellen, 202-663-8342 OST-97-2338 - Route Integration February 9, 2005 Application for Renewal of Exemption Authority Renewal of Delta's route integration exemption authority is in the public interest. Continued approval of such authority will provide Delta with the maximum flexibility to modify its flight patterns and respond quickly to marketplace needs, and will allow Delta to provide consumers with more convenient international air services. Moreover, under the Department's policy concerning route integration authority,' Delta will continue to be able to implement new services to any foreign point named in its existing certificates and exemptions (subject to a notification requirement for limited‑entry routes), without the regulatory burden of submitting discrete exemption and certificate requests. Counsel: Shaw Pittman, Alexander Van der Bellen, 202-663-8060
OST-2005-20116 - US-Russia Frequency Allocation and Notice of Integration Authority - Atlanta-Moscow Filed January 14, 2005 | Issued February 8, 2005 There were no objections to Delta’s request for a waiver of the standard dormancy conditions. Under these circumstances, we decided to grant Delta’s request for waiver of the Department’s standard dormancy conditions normally imposed on frequency allocations, to allow the carrier to adjust its Atlanta-Moscow service in accordance with seasonal demand. However, should the carrier decide not to institute services using all or a portion of the seven U.S.-Russia frequencies or discontinue all or portion of the seven U.S.-Russia frequencies (other than seasonally), the carrier will be required immediately to notify the Department of such and to return the unused frequencies for reallocation. By: Paul Gretch OST-95-651 - Form 41 Schedule B-7 February 10, 2005 Motion for Confidential Treatment Pursuant to Rule 12 Counsel: Shaw Pittman, Robert Cohn, 202-663-8060 Order 2005-2-10 Issued and Served February 16, 2005 We have tentatively decided to grant Delta's application for allocation of seven weekly frequencies to provide combination service in the Atlanta‑Rio de Janeiro market (two from the unallocated pool and five of United's unused frequencies). It is the Department's oft-stated and longstanding policy not to permit valuable operating rights to remain unused for an extended period, particularly when another carrier has firm plans to use them and the carrier holding the authority does not. By its own statements on the record before us, it is clear that United has had unused Brazil frequencies at least from March 2003 forward. United has not stated firm plans to use them. Delta has firm plans for Brazil service that would make use of some of those unused frequencies. Delta does not have unused Brazil frequencies of its own. While United opposes Delta's request for allocation of the frequencies on other than a temporary basis, we tentatively do not find, in the absence of evidence in the record of firm plans on United's part to resume service, that Delta should receive a time-limited allocation. 4 In these circumstances, we tentatively find that the public interest requires our reallocating five of United's unused Brazil frequencies to Delta. We also tentatively find that it is consistent with the public interest to award Delta two currently unallocated Brazil frequencies. By: Karan Bhatia OST-2003-14290 - Exemption - Ontario-San Jose del Cabo; Las Vegas-Monterrey Filed January 24, 2005 | Issued February 25, 2005 Scheduled foreign air transportation of persons, property, and mail between (1) the terminal point Ontario, California, and the terminal point San Jose del Cabo, Mexico; and (2) the terminal point Las Vegas, Nevada, and the terminal point Monterrey, Mexico, and to combine this authority with all of Delta’s existing certificate and exemption authority, consistent with applicable international agreements. Delta proposes to continue to conduct these U.S.-Mexico services pursuant to its code-share arrangement with Aerovias de Mexico, S.A., whereby the "DL" designator code is placed on flights operated by Aeromexico in these markets. By: Paul Gretch OST-2005-20145 - Exemption - Blanket Codeshare Filed January 21, 2005 | Issued March 1, 2005 Scheduled foreign air transportation of persons, property, and mail between points in the United States and points worldwide on a third-country code-share basis pursuant to blanket code-sharing statements of authorization approved by the Department, and to integrate this authority with its existing certificate and exemption authority. By: Paul Gretch OST-02-12161 - United States-Algiers, Algeria March 16, 2005 Re: Letter Dismissing Subsumed Docket The above-captioned application was filed to permit Delta to serve Algiers, Algeria on a codeshare basis with Alitalia. The requested authority is now subsumed by the blanket codeshare exemption granted By Notice of Action Taken in docket OST-05-20145 (March 1, 2005). Accordingly, the Department may dismiss the above-captioned exemption application in docket OST-02-12161 as moot. Counsel: Hogan & Hartson, Alexander Van der Bellen, 202-637-8382, sascha.vanderbellen@hhlaw.com OST-00-7655 - U.S.-Colombia Combination Service Proceeding March 18, 2005 Application for Renewal of a Certificate of Public Convenience and Necessity Delta hereby applies for renewal of its certificate authority to engage in scheduled combination service between Atlanta and Bogota, as authorized by Route 796. This authority was issued by Order 2000-9-21 in the US. -Colombia Combination Service Proceeding (2000), and is set to expire on September 20, 2005. Delta requests renewal for a period of at least five years. Pursuant to Route 796 and its allocation of seven weekly frequencies, Delta provides daily nonstop service between its Atlanta hub and Bogota using Boeing 757 equipment. In addition, pursuant to exemption authority and statements of authorization granted in Docket OST-2002-14057, Delta displays the designator code of Aerovias Nacionales de Colombia, S.A. on its Atlanta-Bogota flights, and AVIANCA displays Delta's designator code on connecting flights operated by AVIANCA beyond Bogota. Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com OST-95-651 - Form 41 Schedule B-43 March 29, 2005 Motion for Confidential Treatment Pursuant to Rule 12 Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999 OST-00-6816 - Mexico City-Chicago March 31, 2005 Application for Renewal of Exemptions This renewal application encompasses multiple docketed exemptions that Delta relies upon to provide nonstop U.S.-Mexico services either with its own aircraft or pursuant to a codeshare arrangement with Aerovias de Mexico, S.A. de C.V.. The exemptions in the captioned dockets all have renewal application deadlines within the next several months. Delta requests that these exemptions be renewed for a period of at least two years, with a common expiration date, or until 90 days after the Department's final determination on Delta's application for amended certificate authority as it pertains to each of the routes identified herein, filed on November 30, 2004 in Docket OST-1999-6275, whichever occurs earlier. The establishment of a common renewal date will promote administrative efficiency and reduce the burden on Delta and the Department in maintaining these multiple and non-controversial U.S.-Mexico exemption authorities. Delta is not seeking renewal of its exemption authority for Ft. Lauderdale-Mexico City service in Docket OST-2003-15252 because that route is dormant. Counsel: Delta and Hogan & Hartson, Robert Cohn, 202-637-4999 OST-2004-19161 - Allocation of Seven Weekly US-Brazil Combination Frequencies April 4, 2005 Supplemental Comments of United Air Lines and Motion for Leave to File Consistent with United's assurances that it would reuse these frequencies, it has today announced that it will start a second daily Washington Dulles-Sao Paulo service beginning on October 31, 2005. That service will put to use seven of the 14 frequencies United has not been using. As noted above, United is still also actively reviewing its Brazil service with an eye to resuming use of its remaining Brazil frequencies by next year. American has applied separately for a temporary reallocation of five of United's U.S.-Brazil frequencies. Docket OST-05-20747. American erroneously assumed both that United would not be using those frequencies and that the Department would finalize its tentative decision to reallocate them to Delta on a permanent basis. United has consistently indicated its willingness to accede to a temporary allocation of five frequencies to Delta premised on their return to United following the winter 2005/06 peak season. United takes no position on the relative merits of the Delta and American requests except as noted above regarding American's willingness to accept a temporary seasonal reallocation and Delta's refusal to do so. In deciding whether to finalize its tentative findings and conclusions in Order 05-2-10, however, the Department must consider both United's recent announcement of its new Washington Dulles-Sao Paulo service as additional evidence of its U.S.-Brazil service plans and American's application for a temporary reallocation of five of United's frequencies as an alternative to Delta's demand for a permanent reallocation. Either of these actions standing alone would require the Department to reconsider and reverse its tentative decision and the confluence of both actions compel such reversal. Counsel: United and Wilmer Cutler, Bruce Rabinovitz, 202-663-6960, bruce.rabinovitz@wilmerhale.com OST-2004-19161 - Delta Air Lines - US-Brazil April 5, 2005 Re: Corrected Service List to United Air Lines' April 4, 2005 Pleadings Counsel: Wilmer Cutler, Jeffrey Manley, 202-663-6670 OST-2004-19161 - Delta Air Lines - Allocation of Seven Weekly US-Brazil Frequencies April 6, 2005 As discussed more fully in the Authority's February 25, 2005 reply to Order 2005-2-10 in Docket OST-2004-19161, there is a clear demand for new South American service from the Washington region, with recent load factors in excess of 80% on Brazil flights. At the same time, the Washington community's diverse Latino population has grown more than 90% in the last decade alone, and includes significant South American populations. Burgeoning tourism and trade activity continues to add to demand. In supporting United's new service, the Authority necessarily opposes any permanent reallocation of the United frequencies needed for that service. Withdrawal of the needed frequencies from United would deprive Washington of a concrete opportunity for enhanced service to a key South American marketplace, undermine the emerging role of Dulles as an anchor for a comprehensive network of competing, convenient United and Star Alliance services to Latin and South America, as well as diminish the consumer and business benefits offered by the new service. In this regard, the Authority continues to urge in Docket OST-2004-19161 that Delta be permitted to utilize United's Brazil frequencies on a temporary basis only. Counsel: MWAA, Edward Faggen, 703-417-8615, Edward.Faggen@mwaa.com Order 2005-4-13 Issued and Served April 12, 2005 By this order we make final our tentative decision to award Delta Air Lines, Inc., an allocation of seven weekly frequencies of indefinite duration for combination air transportation services between Atlanta, Georgia, and Rio de Janeiro, Brazil. By Order 2005-2-10, we stated that it is the Department's longstanding policy not to permit valuable operating rights to remain unused for an extended period, particularly when another carrier has firm plans to use them and the carrier holding the authority does not. United has had unused Brazil frequencies at least from March 2003 forward. While it asserts that it is actively planning the addition of service between Brazil and the United States in an upcoming peak traffic season, its time frame for the introduction of this additional service is not later than the Fall 2006 peak traffic season. We do not see this as constituting the "firm plans" we contemplated for use of the five frequencies at issue here. In any event, United will retain nine weekly frequencies with which to conduct a new Brazil service. By: Karan Bhatia OST-1997-3289 - Exemption - US-Mexico Codeshare with Aeromexico Filed January 10, 2005 | Issued April 14, 2005 Scheduled foreign air transportation of persons, property, and mail between points in the United States and points within Mexico beyond Delta's authorized Mexican gateway points for transborder services, for the purposes of blind-sector code-sharing services operated between the Mexican gateway points and other points within Mexico on services operated by either Delta or Aeromexico. By: Paul Gretch OST-2005-21069 - Exemption and Frequency Allocation - New York-Buenos Aires April 21, 2005 Application for an Exemption and Frequency Allocation Applies for an exemption and allocation of seven (7) U.S.-Argentina frequencies to enable Delta to commence daily nonstop service between New York (JFK) and Buenos Aires, Argentina. Delta proposes to begin New York-Buenos Aires service on December 1, 2005, and will utilize Boeing 767-300ER aircraft configured with 199 passenger seats. Presently, the only U.S. flag Buenos Aires nonstop service offered at New York is by American -- following United's withdrawal from the JFK-Buenos Aires market nearly three years ago, in May, 2002. United continues to hold seven long-dormant frequencies that should be promptly reallocated to Delta to restore competitive U.S. flag service between New York and Buenos Aires. Counsel: Hogan & Hartson, Alexander Van der Bellen, 202-637-8382, sascha.vanderbellen@hhlaw.com OST-2005-21075 - Exemption - Salt Lake City-Puerto Vallarta April 22, 2005 Hereby requests an exemption to provide nonstop service between Salt Lake City International Airport and Puerto Vallarta, Mexico beginning on or about November 1, 2005. Delta's proposed service would provide Salt Lake City with its first nonstop service to Puerto Vallarta, as well as new online connections between Puerto Vallarta and the numerous cities served by Delta and the Delta Connection carriers from Salt Lake City. Delta's proposed new flight will operate on a daily, year-round basis, using Boeing 737-800 aircraft with 16 premium and 134 coach seats. Delta notes that Frontier has also proposed Salt Lake City-Puerto Vallarta service (OST-2005-21033), commencing on November 18, 2005. Because there are two designations available for service on the route (and assuming no additional applicants) the Department may designate both Delta and Frontier without the need for additional carrier selection proceedings. This will provide Salt Lake City-Puerto Vallarta passengers the important benefit of competitive nonstop service by two U.S. flag carriers. Counsel: Hogan & Hartson, Alexander Van der Bellen, 202-637-4999, sascha.vanderbellen@hhlaw.com OST-2005-21069 - Exemption and Frequency Allocatiion - New York-Buenos Aires April 28, 2005 Answer of Continental Airlines Although Delta's Atlanta-Buenos Aires frequencies have themselves been dormant at least as often as they have been operated, Delta asks the Department to re-allocate seven long-dormant United U.S. -Argentina frequencies to Delta so it can begin offering nonstop New York (JFK)-Buenos Aires service in December, duplicating nonstop service already operated by American and Aerolineas Argentinas between JFK and Buenos Aires. Continental opposes Delta's application and urges the Department to instead re-allocate United's seven long-dormant frequencies to Continental so it can offer daily New York/Newark- Houston-Buenos Aires service. Continental urges the Department to institute a simplified comparative carrier selection proceeding promptly to consider re- allocation of United's seven long-dormant frequencies to Continental or Delta and to allocate those seven frequencies and award exemption authority to Continental for New York/Newark-Houston-Buenos Aires service. simplified comparative carrier selection proceeding promptly to consider re allocation of United's seven long‑dormant frequencies to Continental or Delta and to allocate those seven frequencies and award exemption authority to Continental for New York/Newark‑Houston‑Buenos Aires service.
Counsel: Crowell & Moring, Bruce Keiner, 202-624-2625 OST-2004-19161 - US-Brazil Combination Frequencies (Atlanta-Rio de Janeiro) May 2, 2005 Petition of United Air Lines, Inc. for Reconsideration of Order 2005-4-13 United Air Lines, Inc. requests reconsideration of Order 2005‑4‑13 in which the Department reallocated to Delta Air Lines, Inc. for an indefinite period five weekly U.S.‑Brazil frequencies from United to provide nonstop service in the Atlanta‑Rio de Janeiro market. Specifically, United requests reconsideration of the Department's decision that in the event Delta fails to commence its proposed service by October 1, 2005, or fails to use the frequencies for a period of 90 days thereafter, the allocation will expire and the frequencies will revert to the Department for reallocation rather than reverting to United. The fact that United participated in this proceeding by filing pleadings in response to Delta's application and the show cause order does not constitute adequate due process for the Department's unprecedented decision that frequencies grandfathered from dormancy conditions should revert to the Department instead of United. As previously noted, United purchased these frequencies for valuable consideration in a transaction approved by the Department. The frequencies were considered permanent and not subject to dormancy conditions back then and recognized again as such later on by the Department. To decide now that the frequencies are subject to reversion and, if unused by Delta, would revert back to the Department, constitutes a permanent reallocation of the frequencies. Before taking such a drastic and unprecedented step, with significant implications for the long-term structure of the U.S.Brazil air service market, the Department must conduct a thorough review of all potential implications. Such a review has not occurred in this truncated proceeding, raising due process concerns not resolved simply because United participated in this proceeding. Counsel: Wilmer Cutler, Jeffrey Manley, 202-663-6670, jeffrey.manley@wilmerhale.com OST-2005-21080 - Continental - Exemption for Frequency Allocation - Houston-Buenos Aires
May 6, 2005 Answer of the City of Houston and the Greater Houston Partnership The Houston business community is an active participant in trade with Argentina, especially for goods and services related to the energy industry. In 2003 (the most recent year for which complete data is available) the air cargo trade between Houston and Argentina amounted to more than 793,700 kilograms with a value of more than $36 million, of which more than 97% was exports, with Argentina ranking as Houston's second‑largest airborne trade partner in South America. Seaborne trade was also extensive, ranking Argentina as Houston's fourth‑largest partner with a value of more than $645 million in 2003, of which more than 64% was exports. As shown in the Greater Houston Partnership's International Houston 2004/2005 International Business Directory 43 Houston companies maintain subsidiaries in Argentina, out of the more than 1,300 that trade with South America as a whole. Examples of the Houston companies that trade with Argentina are Key Energy Services, the world's largest land based well services company; Noble Energy, one of the world's largest independent exploration and production companies; and BMC Software, which specializes in providing inventory and system management solutions. An award to Continental would be consistent with the decisional factors that have been set forth by the Department in prior proceedings. Continental would be a new entrant in the U.S.‑Argentina market, and would provide welcome competition in a market that in recent years has been unstable and in which other carriers, including Delta and United, have suspended or terminated services. Counsel: Zuckert Scoutt, Rachel Trinder, 202-298-8660, rbtrinder@zsrlaw.com
May 6, 2005 United Intent to File Consolidated Answer Hereby notifies the Department that United intends to file a consolidated answer to the application of Delta Air Lines, Inc. for an exemption and frequency allocation (New York-Buenos Aires) filed in Docket OST-05-21069 and the application of Continental Airlines, Inc. for an exemption and frequency allocation (Houston-Buenos Aires) filed in Docket OST-05-21080. Counsel for Delta has concurred that United's consolidated answer will be filed on May 10, 2005, the date when answers to Continental's application are due, rather than today, May 6, 2005, the date when answers to Delta's application are due. Counsel: Wilmer Cutler, Jeffrey Manley, 202-663-6670, jmanley@wilmerhale.com OST-2005-21069 - New York-Buenos Aires Exemption and Frequency Allocation May 6, 2005 The Port Authority firmly believes that the seven frequencies at issue, which have historically been committed to New York - Buenos Aires service, should remain dedicated for service by a U.S. carrier at the critically important New York gateway. Indeed, the Department previously found that the strong demand for Buenos Aires service in the New York metropolitan area justified the selection of a third U.S. carrier to provide service to our region. See Order 2000-12-13; Order 2001-1-14. By: Bradley Rubinstein, Manager OST-2005-21080 - Continental - Exemption for Frequency Allocation - Houston-Buenos Aires
May 10, 2005 Answer of Delta Air Lines (Continental's Application in OST-2005-21080) Delta Air Lines, Inc. hereby answers in opposition to the Application of Continental Air Lines, Inc. for an exemption and frequency allocation to provide Houston‑Buenos Aires service. Continental's frequency request is mutually exclusive to Delta's application for seven U.S.‑Argentina frequencies to restore competitive U.S. flag service at the New York (JFK) gateway, and the Department must conduct a carrier selection proceeding to evaluate the public interest merits of the competing applications. Delta's New York‑Buenos Aires proposal would provide valuable service and competitive benefits, and is clearly consistent with the longstanding public interest use of the JFK frequencies at issue. Delta is prepared to further demonstrate the superiority of its JFK proposal in a carrier selection proceeding to be established by the Department. Delta urges the Department to promptly issue an Instituting Order, and to conduct the carrier selection proceedings on an expedited basis so that the successful applicant will have ample time for planning and implementation of service on December 1, 2005. Counsel: Delta and Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
Answer of The New Jersey Parties (Continental's Application in OST-2005-21080) Awarding Continental authority to operate daily Newark/New York-Houston-Buenos Aires service will provide significant public benefits for U.S.-Argentina travelers in the Newark/New York area and introduce a new network competitor into the still-restricted U.S.-Argentina market. One-stop service between Newark Liberty International and Buenos Aires via Houston is far more important than adding yet another carrier to duplicate nonstop JFK-Buenos Aires service offered by both American and Aerolineas Argentinas at JFK. One-stop Continental service through its Newark Liberty International Airport hub will provide convenient Argentina service for passengers and shippers throughout northeastern New Jersey and allow Continental to begin developing the Newark Liberty International Airport-Argentina market. Despite the potential availability of only seven Argentina frequencies, Continental's development of the Newark/New York-Buenos Aires market via Houston presents an excellent opportunity to introduce Buenos Aires service at Newark Liberty International Airport, add a new U.S.-flag competitor to the U.S.-Argentina market, and open a new Argentina gateway. By: Regional Business Partnership, Chip Hallock
May 10, 2005 Consolidated Answer of United Air Lines United acquired the seven frequencies sought by Delta and Continental from Pan American World Airways in a route transfer transaction approved by the Department. Order 92-7-9. United has a long history of service to Argentina, having served the U.S.-Argentina market for nearly 15 years. United fully utilized its 21 Argentina frequencies until after September 11, 2001, when it was forced to reduce some of its international service, including some of its Argentina service. Delta's and Continental's commitments to Argentina are more questionable. Like United, Delta reduced service to Argentina in the recent past. Even though Delta did not commence its first service to Argentina until April 2001, it suspended that service a short time later in December 2002. See Application of Delta for a Dormancy Waiver, dated February 10, 2003 (Docket OST-99-6210). The frequencies sat unused for two years, until Delta re-instituted the service in December 2004. See Notice of Delta of Intent to Resume Service and Request for an Interim Dormancy Waiver, dated January 27, 2004 (Docket OST-99-6210). Continental has never served Argentina, even though it was awarded seven frequencies for Houston-Buenos Aires service in January of 2001. See Order 2001-1-14. The Department withdrew the frequencies approximately six months later after Continental failed to inaugurate service. See Order 2001-7-12. Unlike Delta's frequencies or those forfeited by Continental, United's Argentina frequencies are permanent and not subject to any dormancy condition, as recognized by the Department. See Order 2002-2-2, at 6. Counsel: Wilmer Cutler, Jeffrey Manley, 202-663-6670, jmanley@wilmerhale.com OST-1995-651 - Form 41; Schedule B-7 May 10, 2005 Motion for Confidential Treatment Pursuant to Rule 12 Counsel: Delta and Hogan & Hartson, Robert Cohn, 202-637-4999 OST-2005-21069 - Exemption and Frequency Allocation - New York-Buenos Aires May 17, 2005 Consolidated Reply of Delta Air Lines Hereby replies to the answers submitted by Continental and United in the above-captioned proceeding. Delta has proposed to used seven long-dormant frequencies to restore competitive U.S. flag service at the New York gateway. In a reversal of Continental's previous position on the importance of maintaining competition at the New York gateway, Continental now seeks to remove the frequencies from their longstanding use at New York, and use them instead at Houston. United has no service plans at all, but is attempting to block Delta's proposal to develop competitive New York-Buenos service by limiting Delta to an unacceptable "temporary" frequency allocation. Because there are two interested applicants with firm service plans, the Department should immediately institute a carrier selection case to determine the best long‑term public interest use of the frequencies at issue. Counsel: Delta and Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
OST-2005-21284 - Exemption - Orlando-Cancun Hereby requests an exemption to provide nonstop service between the Orlando International Airport (MCO) and Cancun, Mexico beginning on or about November 1, 2005. Delta's proposed new flight will operate on a daily, year- round basis, using Boeing 737-800 aircraft with 16 premium and 134 coach seats. Delta's proposed service will provide Orlando with its first nonstop service to Cancun. Delta notes that Spirit and AirTran have also proposed Orlando‑Cancun service. Each of those carriers would start more than a month later than Delta, in December, rather than November, 2005. Furthermore, AirTran would offer only one weekly flight in contrast to Delta's daily service pattern. Because there are only two designations available for service on U.S. ‑Mexico routes, the Department must conduct a carrier selection proceeding to determine which applicants' proposals will create the greatest public interest benefits. Counsel: Delta and Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
OST-2005-21069 - New York-Buenos Aires Exemption and Frequency Allocation May 17, 2005 Mark Herzberg Letter of Opposition By: Mark Herzberg OST-2005-21075 - Exemption - Salt Lake City-Puerto Vallarta, Mexico May 18, 2005 On April 18, 2005, Frontier Airlines filed an application with the Department of Transportation seeking an exemption and a U.S.-Mexico designation to provide scheduled foreign air transportation of persons, property and mail between Salt Lake City and Puerto Vallarta. (Docket No. OST-2005-21033). Since there are two available designations and two interested applicants, Frontier does not object to Delta's application, provided that Frontier's application is approved as soon as possible. Frontier does note, however, that Delta, a carrier that has lost billions of dollars in the last two years, expressed interest in this market only after another carrier that is attempting to provide residents of Salt Lake City with fares and service sought by the community, applied for the same authority. Counsel: Frontier and Wiley Rrein, Edward Faberman, 202-719-7402, efaberman@wrf.com OST-2004-19161 - Allocation of Seven Weekly US-Brazil Combination Frequencies - Atlanta-Rio de Janeiro May 23, 2005 Consolidated Reply of United Air Lines and Motion for Leave to File Delta and American simply argue that the Department can avoid any "delay" in future reallocations of the frequencies by having the frequencies revert to the Department. In support, they argue that because United opposed the permanent reallocation of these frequencies to Delta, this proceeding has taken "nearly eight months," a delay they claim could have been avoided if the frequencies had been in the unassigned pool. But what Delta and American wrongly characterize as "delay" is United's exercise of its legitimate due process rights to avoid a sudden and unexplained change in the treatment of some of its valuable assets resulting in a permanent reallocation of those assets. It was the need for the Department to resolve these issues, as a matter of first impression, as well as Delta's last-minute decision to postpone the start of its new Brazil service, that caused the so-called "delay," not the fact that United opposed the permanent reallocation of the frequencies. Thus, as United stated in its Petition, if Delta stops using the frequencies they should revert automatically to United. Counsel: United and Wilmer Cutler, Jeffrey Manley, 202-663-6670, jeffrey.manley@wilmerhale.com OST-2005-21284 - Exemption - Orlando-Cancun
June 1, 2005 As Delta has noted in its May 17, 2005 answer to AirTran's May 2, 2005 application for the same authority,' the existence of three pending applications for this authority will require institution of a carrier selection proceeding because the U.S. Mexico bilateral, in its current form, only allows for the designation of two U.S. carriers on the route. Thus, the Department must first hold a proceeding before any final action on Delta's application, comparing the relative public benefits of the pending applications and service proposals, taking into account the public interest factors set forth in Section 40101, Title 49, United States Code. AirTran filed an application for MCO-CUN exemption authority on May 2, 2005 in Docket OST-2005-21134. Spirit Airlines, Inc. also filed an application for MCO-CUN exemption authority on May 2, 2005 in Docket OST-2005-21165. Counsel: Wiley Rein, Bert Rein, 202-719-7045, brein@wrf.com
June 1, 2005 Delta attempts to assert that its own proposed start date of November 15 would somehow be superior to the start date of December 15 that Spirit initially proposed. Spirit is prepared to start this service as soon as mid-September, and in any event will begin the service no later than 90 days after the Department awards the authority at issue here. Spirit would urge that the Department quickly seek additional information from the carriers at issue concerning their service plans, and quickly make a route award based on these augmented filings. Spirit wishes to note here its strong desire to offer its new US-Cancun services for sale as soon as possible, and urges that any route award be made quickly. Counsel: Garfinkle Wang, Anita Mosner, 703-294-5890
OST-1999-6275 - Delta Air Lines - Mexico Certificate Amendment June 6, 2005 Letter Clarifying Applications This letter is to clarify Delta's pending applications in the abovereferenced dockets for certificate and exemption authority between San Diego and Mexico City. The San Diego‑Mexico City route is included in Delta's Route 562 certificate and is a route for which Delta sought renewal in its November 30, 2004 application in Docket OST‑1999‑6275. However, Delta has recently provided service on that route on a one‑stop basis pursuant to its codeshare arrangement with Aerovias de Mexico, S.A. de C.V. meaning that Delta's certificate authority is technically dormant. Consequently, Delta applied for exemption authority in Docket OST2005‑21353 to place Delta's code on nonstop San Diego‑Mexico City flights. Delta requests that the San Diego‑Mexico City route be included on Delta's Route 562 certificate, as renewed and amended, in light of Delta's current plans to resume nonstop service on the route. By: Hogan & Hartson, Alexander Van der Bellen, 202-637-8382, sascha.vanderbellen@hhlaw.com OST-2005-21075 - Exemption - Salt Lake City-Puerto Vallarta Filed April 22, 2005 | Issued June 6, 2005 Scheduled foreign air transportation of persons, property, and mail between the terminal point Salt Lake City, Utah, and the terminal point Puerto Vallarta, Mexico, and to combine this authority with all of Delta’s existing certificate and exemption authority, consistent with applicable international agreements. Delta proposes to operate this service on a year-round basis, beginning on or about November 1, 2005. By: Paul Gretch OST-2002-14057 - Exemption - US-Colombia-Ecuador Codeshare with Avianca June 13, 2005 Application for Renewal of an Exemption Hereby applies under 49 U.S.C. § 40109 for renewal of an exemption authorizing Delta to conduct, on a codeshare- only basis, scheduled foreign air transportation of persons, property, and mail between points in the United States and (1) points in Colombia, via intermediate points and beyond,' and (2) Guayaquil and Quito, Ecuador, via intermediate points and beyond.2 Delta also requests renewal of its authority to combine services operated under these exemptions with all other Delta services authorized by its existing certificates and exemptions, to the extent permitted by applicable international agreements. Delta provides U.S.-Colombia services pursuant to its codesharing arrangement with AVIANCA. Counsel: Delta and Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com OST-2003-15504 - Exemption - Antigua, Brazil and Colombia Codesharing with Continental Airlines June 15, 2005 Application for Renewal of an Exemption Counsel: Delta and Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
OST-00-6816 - Mexico City-Chicago Filed March 31, 2005 | Issued June 15, 2005 OST‑2000‑6816: Scheduled foreign air transportation of persons, property, and mail between the terminal point Chicago, Illinois, and the terminal point Mexico City, Mexico. Delta provides year‑round service on this route pursuant to a code‑share arrangement with Aerovias de Mexico, S.A., de C.V. (Aeromexico), whereby Delta places its code on flights operated by Aeromexico in the market. OST‑2000‑7022: Scheduled foreign air transportation of persons, property, and mail between the terminal point Las Vegas, Nevada, and the terminal point Hermosillo, Mexico. Delta provides year‑round service on this route pursuant to a code‑share arrangement with Aerovias de Mexico, S.A., de C.V. (Aeromexico), whereby Aeromexico places its code on flights operated by Delta in the market. OST‑2000‑7390: Scheduled foreign air transportation of persons, property, and mail between (1) the terminal point Atlanta, Georgia, and the terminal point Leon, Mexico; and (2) the terminal point Atlanta, Georgia, and the terminal point San Jose del Cabo, Mexico. 1 Delta provides service on this route pursuant to a code‑share arrangement with Aerovias de Mexico, S.A., de C.V. (Aeromexico), whereby Aeromexico places its code on flights operated by Delta in the markets. OST‑2000‑8270: Scheduled foreign air transportation of persons, property, and mail between the terminal point Ontario, California, and the terminal point Guadalajara, Mexico. Delta provides year‑round service on this route pursuant to a code‑share arrangement with Aerovias de Mexico, S.A., de C.V. (Aeromexico), whereby Delta places its code on flights operated by Aeromexico in the market. OST-2001-10438: Scheduled foreign air transportation of persons, property, and mail between (1) the terminal point Salt Lake City, Utah, and the terminal point Mexico City, Mexico; and (2) the terminal point Salt Lake City, Utah, and the terminal point Hermosillo, Mexico. Delta provides year-round service on these routes pursuant to a code-share arrangement with Aerovias de Mexico, S.A., de C.V. (Aeromexico), whereby Delta places its code on flights operated by Aeromexico in the markets. OST‑2001‑10457: Scheduled foreign air transportation of persons, property, and mail between the terminal point Cincinnati, Ohio, and the terminal point Cancun, Mexico. Delta provides service on this route pursuant to a code‑share arrangement with Aerovias de Mexico, S.A., de C.V. (Aeromexico), whereby Aeromexico places its code on flights operated by Delta in the market. OST‑2001‑10691: Scheduled foreign air transportation of persons, property, and mail between (1) the terminal point New York, New York, and the terminal point Acapulco, Mexico; and (2) the terminal point New York, New York, and the terminal point Puerto Vallarta, Mexico. Delta provides year‑round service on these routes pursuant to a code‑share arrangement with Aerovias de Mexico, S.A., de C.V. (Aeromexico), whereby Delta places its code on flights operated by Aeromexico in the markets. OST‑2003‑15252: Scheduled foreign air transportation of persons, property, and mail between the terminal point Orlando, Florida, and the terminal point Monterrey, Mexico. Delta provides year‑round service on this route pursuant to a code‑share arrangement with Aerovias de Mexico, S.A., de C.V. (Aeromexico), whereby Delta places its code on flights operated by Aeromexico in the market. OST‑2003‑15698: Scheduled foreign air transportation of persons, property, and mail between the terminal point Las Vegas, Nevada, and the terminal point Guadalajara, Mexico. Delta provides year‑round service on this route pursuant to a code‑share arrangement with Aerovias de Mexico, S.A., de C.V. (Aeromexico), whereby Delta places its code on flights operated by Aeromexico in the market. OST‑2003‑16555: Scheduled foreign air transportation of persons, property, and mail between the terminal point Boston, Massachusetts, and the terminal point Mexico City, Mexico. Delta provides year‑round service on this route pursuant to a code‑share arrangement with Aerovias de Mexico, S.A., de C.V. (Aeromexico), whereby Delta places its code on flights operated by Aeromexico in the market. OST‑2004‑16975: Scheduled foreign air transportation of persons, property, and mail between the terminal point Boston, Massachusetts, and the terminal point Cancun, Mexico. Delta provides year‑round service on this route pursuant to a code‑share arrangement with Aerovias de Mexico, S.A., de C.V. (Aeromexico), whereby Delta places its code on flights operated by Aeromexico in the market. By: Paul Gretch OST-1999-6210 - Certificate of Public Convenience and Necessity for Route 798 - Atlanta-Buenos Aires July 8, 2005 Application for Renewal of a Certificate of Public Convenience and Necessity Pursuant to Route 798 and its allocation of seven weekly frequencies, Delta provides daily nonstop service between its Atlanta hub and Buenos Aires using Boeing 767-300ER equipment. Counsel: Delta and Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com July 15, 2005 Application for an Amended Exemption Delta currently holds exemption authority to serve Antigua on a codeshare basis with Air Jamaica. See Notice of Action Taken dated April 17, 2003 in this docket. Delta is filing the instant application so that Delta may also provide nonstop service between Atlanta and Antigua utilizing its own Boeing 737-800 aircraft, in addition to providing codeshare service. Counsel: Hogan & Hartson, Robert Cohn, 202.637.4999/8382 Order 2005-7-16 Issued and Served July 22, 2005 Order on Reconsideration | Word We see no persuasive basis to deviate from our standard practice of, having once decided to reallocate frequencies on an indefinite rather than temporary basis, subjecting those frequencies to our standard start-up/dormancy condition whereby any uninaugurated or dormant frequencies revert to the Department where they are available for expeditious reallocation to interested carriers that would use them for the public interest of consumers and U.S.-flag competition. As we have made clear throughout this proceeding, it is our established policy not to permit valuable operating rights to remain unused for an extended period, particularly when another carrier has firm plans to use them and the carrier holding the authority does not. It is further our established policy, when considering frequency awards or reallocations in frequency‑limited markets, to impose a start‑up condition, along with our standard dormancy condition, whereby unused allocated frequencies automatically revert to the Department. We do this to maximize our ability to ensure that unused limited rights will be readily available for us to award in the public interest to interested carriers prepared to use them. In this regard, we have imposed our standard dormancy condition even where the frequencies when originally allocated were not subject to such a condition. Where a bilateral agreement limits U.S.‑flag service to a set number of flights, the public interest favors that such service be used to the maximum to provide the most consumer options and to ensure full U.S.‑flag competition. While it is true, as United asserts, that we have sometimes decided that reallocated frequencies would revert to the prior holder, we have done so ‑ as the precedents United cites indicate ‑ where the holder, at the time of our reallocation, had shown on the record that it had firm plans to use the frequencies at a later date. Given that United had not demonstrated that it had firm plans to utilize the five frequencies that we subsequently reallocated to Delta subject to our standard dormancy condition, nothing in these precedents calls for altering our result here. By: Karan Bhatia OST-2005-21284 - Exemption - Orlando-Cancun June 27, 2005 Support of Greater Orlando Aviation Authority Our interest, as well of that of passengers in Central Florida and our local economy, is an expeditious decision by the Department which permits the selected carriers to commence service this Winter Season. Successful launch of these new Winter Season flights will require advanced marketing so time is of the essence in awarding these new opportunities. By: C. William Jennings OST-2005-22025 - Atlanta, Georgia-Puerto Vallarta, Mexico August 1, 2005 Delta plans to commence Atlanta-Puerto Vallarta service on or about December 1, 2005. Delta's proposed new flights will operate on a daily, year round basis, using Boeing 737-800 aircraft with 16 premium and 134 coach seats. In order to allow Delta to engage in essential advance marketing efforts, Delta requests that its exemption authority to serve this route be issued as soon as possible. Delta will conduct a poll of the U.S. carrier representatives listed on the attached service list and will promptly advise the Department of the results of that poll. Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com OST-2005- Exemption - Salt Lake City/Los Angeles-Cozumel August 9, 2005 Counsel: Delta and Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com OST-2005-21069 - Exemption and Frequency Allocation - New York-Buenos Aires August 8, 2005 Support of New York Congressional Delegation The New York Congressional Delegation urges the Department of Transportation to institute an expedited carrier selection proceeding and grant Delta Air Lines the US-Argentina authority and the frequencies it has requested. The Department should take the opportunity to restore competitive U.S. carrier service for New York and Buenos Aires passengers. By: Charles Rangel
OST-2005-22025 - Atlanta, Georgia-Puerto Vallarta, Mexico August 11, 2005 Counsel: Hogan & Hartson, Alexander Van der Bellen, 292-637-5600 OST-1995-651 - Form 41 Schedule B-7 August 10, 205 Motion for Confidential Treatment Delta respectfully moves the Department to withhold the financial information contained in Delta's Schedule B-7 report for the quarter ended June 30, 2005, filed concurrently herewith under seal, from public disclosure for a period often (10) years, through June 30, 2015, pursuant to Rule 12 of the Department's Rules of Practice in Proceedings. Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999 OST-2005-22104 - Exemption - Salt Lake City/Los Angeles-Cozumel August 17, 2005 We have polled the U.S. carrier representatives served with the above-referenced application, and no carrier has objected to Delta's request for exemption authority. Accordingly, Delta urges that the exemption be granted as soon as possible. Counsel: Hogan & Hartson, Alexander Van der Bellen, 202-637-8362, sascha.vanderbellen@hhlaw.com OST-2005- Exemption - Cincinnati-San Jose del Cabo / Atlanta-Merida / New York-Acapulco/Cozumel/Puerto Vallarta/San Jose del Cabo August 24, 2005 Delta plans to operate all of these services on a year-round basis using Boeing 737-800 aircraft with 16 premium and 134 coach seats. The proposed start-up dates and initial days of operation are as follows:
Delta proposes to introduce the only nonstop service on each route.' Given the extensive Delta and Delta Connection services offered by Delta at its Atlanta and Cincinnati hubs, and the substantial connecting opportunities and local demand for Mexico service at Delta's major international gateway at JFK, Delta's proposed new services will provide travelers throughout the eastern United States with enhanced online service to Los Cabos, Merida, Cozumel, Puerto Vallarta and Acapulco, which are all popular leisure destinations. Continental Airlines, Inc. provides New York-Los Cabos and New York-Puerto Vallarta service but via Newark, whereas Delta proposes service via JFK. Counsel: Delta and Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com OST-2005-21069 - Exemption and Frequency Allocation - New York-Buenos Aires July 29, 2005 Letter of Support from Argentine Consul General It has been with great pleasure that I received the news of Delta Air Lines’ application to a new non-stop route connecting Buenos Aires and New York City. The growing Argentine community in the jurisdiction of this Consulate demands a more fluid and intense communication and exchange. This Consulate General serves eight states where thousands of Argentine citizens have settled in the last few years and who use New York City as their principal hub to travel to and from their country. More and better options will also increase tourism and business I am therefore persuaded that this initiative will be received with great satisfaction by my fellow citizens at both ends of the line. By: Hector Timerman
OST-2005-22243 August 25, 2005 Answer of Continental Airlines, Inc. Delta has applied for Cincinnati-San Jose del Cabo, Atlanta-Merida, and New York-Acapulco, Cozumel, Puerto Vallarta and Los Cabos authority and requested expedited action on its application. Continental does not object to Delta's requests for Cincinnati-Los Cabos or Atlanta-Merida authority, and Continental does not object to Delta's requests for New York-Cozumel, Los Cabos, Puerto Vallarta or Acapulco authority so long as Continental's authority to provide New York/Newark- Cozumel, Los Cabos, Puerto Vallarta and Acapulco service remains effective so Continental can continue to serve these routes. Counsel: Crowell & Moring, R. Bruce Keiner, 202-624-2615, rbkeiner@crowell.com OST-2005-22243 - Exemption - US-Mexico City Pairs August 31, 2005 Under the U.S.-Mexico Air Transport Agreement, as amended, two U.S. carriers may be designated to serve the New York-San Jose del Cabo route. Service is currently operated by Continental Airlines, Inc. via Newark, leaving one opportunity available. American is this day applying for exemption and certificate authority to operate nonstop service between New York (JFK) and San Jose del Cabo, thus requiring the Department to conduct a carrier-selection proceeding. See Ashbacker Radio Corp. v FCC 326 U.S. 327. In that proceeding, American will demonstrate why its application should be favored over Delta's. American will provide important competition in the New York‑San Jose del Cabo market with service via JFK, offering substantial benefits for the traveling and shipping public. Americans proposal to operate two weekly roundtrips in the peak season is superior to Delta's proposal, and should be granted without delay. Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com
OST-2005-21069 - Exemption and Frequency Allocation - New York-Buenos Aires August 16, 2005 Partnership for New York City Support of New York-Buenos Aires Service I am writing to urge you to approve the application of Delta Air Lines to provide nonstop service between New York and Buenos Aires, Argentina. New York City is a large and important U.S.-Argentina gateway, ranking second only to Miami in the number of Buenos Aires origin and destination passengers. It is important that a daily, competitive U.S. flag carrier service this market. As an organization representing the city’s business leaders, the Partnership recognizes the critical importance of seamless connectivity to other international centers of commerce. Businesses headquartered in New York City are no longer simply New York businesses or even American businesses; they are global businesses and must have easy access to and from other international cities in order to compete and thrive. Both the local and national economies depend upon their success. By: Kathryn Wylde
OST-2005-22104 - Exemption - Salt Lake City, UT-Cozumel, Mexico; Los Angeles, CA-Cozumel, Mexico Filed August 9, 2005 | Issued August 31, 2005 By: Paul Gretch OST-1997-3051 - Atlanta-St. Lucia Filed February 8, 2005 | Amended July 15, 2005 | Issued August 31, 2005 Scheduled foreign air transportation of persons, property, and mail between Atlanta, New York, and Miami, on the one hand, and Antigua and St. Lucia, on the other hand, and to integrate this authority with its existing certificate and exemption authority. (Docket OST-1997-3051) Scheduled foreign air transportation of persons, property, and mail between Atlanta, Los Angeles, New York, and Miami, on the one hand, and Grenada, on the other hand; and between Los Angeles, on the one hand, and Antigua and St. Lucia, on the other hand, and to integrate this authority with its existing certificate and exemption authority. (Docket OST-1999-5749) Amend exemption under 49 U.S.C. 40109 to provide the following service: Scheduled foreign air transportation of persons, property, and mail between Atlanta, Georgia, and Antigua to be operated with Delta's own aircraft, and to integrate this authority with Delta's existing certificate and exemption authority. (Docket OST-1997-3051). Delta holds exemption authority to provide Atlanta-St. Lucia and U.S.-Belize service using its own aircraft. Delta currently holds exemption authority to serve Antigua on a code-share basis with Air Jamaica. By: Paul Gretch
OST-2005-22025 - Exemption - Atlanta, Georgia-Puerto Vallarta, Mexico Filed August 1, 2005 | Issued August 31, 2005 Scheduled foreign air transportation of persons, property, and mail between Atlanta, Georgia, and Puerto Vallarta, Mexico, and to integrate this authority with Delta's existing certificate and exemption authority. Delta proposes daily, year-round service in the market, beginning December 1, 2005. By: Paul Gretch
OST-2005-22243 - Exemption - Cincinnati-San Jose del Cabo / Atlanta-Merida / New York-Acapulco/Cozumel/Puerto Vallarta/San Jose del Cabo September 1, 2005 We have polled the U.S. carrier representatives served with the above-referenced application, and no carrier has objected to Delta's request for exemption authority, with the exception of American Airlines, Inc., which opposes the application only insofar as Delta is seeking authority to operate nonstop service on the New York-San Jose del Cabo route, because it has filed a competing application. 11 Accordingly, Delta urges that the remainder of the exemption application be granted as soon as possible, and that the New York-San Jose del Cabo authority be deferred pending any necessary carrier selection proceedings. Counsel: Hogan & Hartson, Alexander Van der Bellen, 202-637-8382, sascha.vanderbellen@hhlaw.com OST-2005- Exemption - Los Angeles-Cancun September 7, 2005 Pursuant to 49 U.S.C. § 40109, Delta Air Lines, Inc. hereby requests an exemption to provide nonstop service between the Los Angeles, California (LAX) and Cancun, Mexico beginning on or about December 1, 2005. Delta's proposed new flight will operate on a daily, year-round basis, using Boeing 737-800 aircraft with 16 premium and 134 coach seats. Delta will restore full, beneficial use of the valuable U.S. carrier designation available for service on this route. ATA Airlines has announced cancellation of its Los Angeles-Cancun service, effective later this month, thereby leaving an available designation to fund Delta's proposed service. Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com OST-2005- New York-Kiev September 9, 2005 Application for a Frequency Allocation Delta Air Lines, Inc. hereby applies for an allocation of four (4) available U.S. -Ukraine frequencies to enable Delta to provide nonstop service between New York (JFK) and Kiev, Ukraine. Delta proposes to commence service on or about June 1, 2006, and will initially operate five weekly nonstop flights. Delta will utilize Boeing 767-300ER aircraft configured with 36 BusinessElite and 163 Economy class seats. Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com OST-2001-8772 - U.S.- Israel Codesharing September 14, 2005 EL AL Israel Airlines - Clarification of Authority Request With reference to the Joint Application filed by Delta Airlines, Inc. and EL AL Israel Airlines, Ltd. in the above-referenced docket on May 6, 2005, the exemption authority sought by EL AL is to provide foreign air transportation between Israel and Ft. Lauderdale, Florida, on a code-share basis by placing its LY code on flights operated by Delta between New York, New York, and Ft. Lauderdale, Florida. We trust that this clarifies EL AL's request for authority, but please do not hesitate to contact me if there should be a need for additional information. Counsel: Zuckert Scoutt, John Gillick, 202-973-7939, jegillick@zsrlaw.com OST-2005-22551 - Exemption - New York-Cancun September 22, 2005 Delta hereby applies for an exemption authorizing Delta to provide scheduled foreign air transportation of persons, property and mail between New York (JFK) and Cancun, Mexico. Delta plans to operate New York (JFK) Cancun route service on a year-round basis using Boeing 757-200 aircraft configured with 24 premium and 159 coach seats. The proposed start-up date for this service is December 17, 2005, or within 90 days of the date the Department grants this exemption request. Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com OST-2005-22551 - Exemption - New York-Cancun September 26, 2005 Answer of JetBlue to Application of Delta and Motion to Consolidate JetBlue's application on its face demonstrates the superiority of its proposed service to Cancun over that of Delta's not only through JetBlue's award winning customer service but because of JetBlue's financial and operational strength. JetBlue's service and its proven success over the past five years in both domestic and international service have allowed it to successfully face unprecendented obstacles and requires the selection of JetBlue for this service. Counsel: Dow Lohnes, Jonathan Hill, 202-776-2000, jhill@dlalaw.com OST-2005-22620 Exemption - Atlanta-Acapulco; Boston-Cancun; Los Angeles-Puerto Vallarta/San Jose del Cabo/Zihuatanejo; Washington, DC-Cancun September 29, 2005 Application for an Exemption Authority Delta Air Lines, Inc. hereby applies under 49 U.S.C. § 40109 and Subpart C of the Department's Rules of Practice in Proceedings for exemption authority to provide scheduled foreign air transportation of persons, property and mail between (1) Atlanta, Georgia and Acapulco, Mexico; (2) Boston, Massachusetts and Cancun, Mexico; (3) Los Angeles, California and Puerto Vallarta, Mexico; (4) Los Angeles, California and San Jose del Cabo, Mexico, (5) Los Angeles, California and Ixtapa/Zihuatanejo, Mexico, and (6) Washington, D.C. and Cancun, Mexico. Delta further requests authority to integrate the requested exemptions with Delta's existing exemption and certificate authority, to the extent permitted by applicable international agreements. Delta requests that the exemption authority remain in effect for a period of at least two years, or until 90 days after final Department action on an application of Delta for certificate authority for each U.S.-Mexico route, whichever occurs first. In order to allow Delta to engage in essential advance marketing and sales activities, Delta requests that its exemption authority be issued as soon as possible. Delta plans to operate all of these services on a year-round basis using Boeing 737-800 aircraft with 16 premium and 134 coach seats. The proposed start-up dates and initial days of operation are as follows:
Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
OST-2005-22620 - Exemption - Atlanta-Acapulco; Boston-Cancun; Los Angeles-Puerto Vallarta/San Jose del Cabo/Zihuatanejo; Washington, DC-Cancun October 3, 2005 Supplement to Application for Exemption Authority Delta Air Lines, Inc. hereby supplements its application for U.S.-Mexico exemption authority filed on September 29, 2005, by adding Atlanta, Georgia - Ixtapa/Zihuatanejo to the list of routes Delta seeks authority to serve. Delta plans to operate year-round Saturday/Sunday service on this route using Boeing 737-800 aircraft with 16 premium and 134 coach seats beginning on or about March 18, 2006. Delta would provide the first nonstop service on this route, meaning two opportunities will remain available once the new U.S.-Mexico agreement is signed. All other details and public interest factors addressed in Delta's application are unchanged by this supplement. Counsel: Hogan & Hartson, Robet Cohn, 202-637-4999, recohn@hhlaw.com OST-2005-22620 - Exemption - Atlanta-Acapulco; Boston-Cancun; Los Angeles-Puerto Vallarta/San Jose del Cabo/Zihuatanejo; Washington, DC-Cancun October 4, 2005 Frontier Airlines, Inc. hereby responds to the above captioned application of Delta Airlines, Inc. for exemption and certificate authority to serve the Los Angeles-San Jose del Cabo route. On September 27, 2005, Frontier applied for a two year exemption from 49 U.S.C. 40109 and any other provision of the Department's rules to the extent necessary to engage in scheduled foreign air transportation of persons, property, and mail between LAX and SJD with services beginning in the second quarter of 2006. Frontier opposes Delta's application to the extent that it is mutually exclusive to Frontier's application. Under the September 21, 2005, amended aviation agreement between the United States and Mexico, three airlines from each country may fly between any U.S. city and various Mexican cities including San Jose del Cabo. Both American Airlines and Alaska Airlines, Inc have the authority to serve the LAX‑SJD market. Therefore, under the amended agreement, one opportunity to serve LAX‑SJD remains available. Since only one additional U.S. carrier designation is available for the LAX‑SJD route and there are two applicants for authority to provide service on this route, the Department must conduct a carrier selection proceeding to evaluate the public interest merits of the competing applicants. Counsel: Wiley Rein, Edward Faberman, 202-719-7402, efaberman@wrf.com
OST-2005-22243 - Exemption - Cincinnati-San Jose del Cabo / Atlanta-Merida / New York-Acapulco/Cozumel/Puerto Vallarta/San Jose del Cabo Filed August 24, 2005 | Issued October 5, 2005 Scheduled foreign air transportation of persons, property, and mail between (1) the terminal point Cincinnati, Ohio, and the terminal point San Jose del Cabo, Mexico; (2) the terminal point Atlanta Georgia, and the terminal point Merida, Mexico; (3) the terminal point New York, New York/ Newark, New Jersey, on the one hand, and each of the following terminal points in Mexico on the other hand: (a) Cozumel, (b) Puerto Vallarta, (c) San Jose del Cabo, and (d) Acapulco; and to integrate this authority with Delta’s existing exemption and certificate authority, to the extent permitted by applicable international agreements. Delta proposes to operate these services on a year-round basis. Delta proposed the following start-up dates: Cincinnati-San Jose del Cabo - December 3, 2005; Atlanta-Merida - February 25, 2006; New York-Cozumel/Puerto Vallarta - March 4, 2006; and New York-Acapulco - March 11, 2006. Continental Airlines filed an answer stating it does not object to Delta’s application so long as its New York/Newark-Cozumel, San Jose del Cabo, Puerto Vallarta, and Acapulco service remains effective. American Airlines opposes Delta’s request for route authority for the New York-San Jose del Cabo market. American filed a competing application to serve the New York-San Jose del Cabo market in Docket OST-2005-22331. Because only one designation opportunity is available, American states that a carrier selection proceeding is required for this service. By letter dated September 1, 2005, counsel for Delta requested that we proceed with Delta’s application, but defer decision on the New York-San Jose del Cabo portion pending a carrier selection proceeding. A recently negotiated amendment to the Agreement that would expand the number of U.S. carrier scheduled service designations in certain city-pair markets, including the New York-San Jose del Cabo market, is not yet effective between the Governments of the United States and Mexico. We note that American submitted a motion in this docket and Docket OST-2005-22331, requesting that we grant the applications of Delta and American with respect to New York-San Jose del Cabo route authority in light of the increase in designation opportunities for this market under the amended Agreement. Delta answered in support of American’s motion and urges us to grant the two applications. We are taking no action on American’s motion or Delta’s response at this time By: Paul Gretch OST-2005-21284 - Exemption - Orlando-Cancun October 17, 2005 Supplement to Applications for Exemption and Amended Certificate Authority Pursuant to the Department's Notice served October 5, 2005, Delta Air Lines, Inc. hereby supplements its applications for U.S.-Mexico exemption authority pending in the above-captioned dockets by confirming the proposed start-up dates, types of service (seasonal or year-round), number of weekly flights, and types, capacity and availability of aircraft, as follows: 1. Atlanta, GA -Acapulco, Mexico (Docket OST-2005-22620). On or about March 11, 2006, Delta proposes to introduce two weekly frequencies (Saturdays/Sundays) on this route using Boeing 737-800 aircraft with 16 premium and 134 coach seats, on a year-round basis. No other U.S. carriers currently provide Atlanta-Acapulco service and, provided that no other applications are submitted, the Department need not await the signing of the new U.S.-Mexico agreement in order to grant Delta's request for exemption authority with respect to this route. 2. Atlanta, GA - Ixtapa/Zihuatanejo, Mexico (Docket OST-2005-22620). On or about March 18, 2006, Delta proposes to introduce two weekly frequencies (Saturdays/Sundays) on this route using Boeing 737-800 aircraft with 16 premium and 134 coach seats, on a year-round basis. No other U.S. carriers currently provide Atlanta-Ixtapa/Zihuatanejo service and, provided that no other applications are submitted, the Department need not await the signing of the new U.S.-Mexico agreement in order to grant Delta's request for exemption authority with respect to this route. 3. Boston, MA - Cancun, Mexico (Docket OST-2005-22620). On or about February 4, 2006, Delta proposes to introduce one weekly roundtrip flight (Saturdays) on this route using Boeing 737-800 aircraft with 16 premium and 134 coach seats, on a year-round basis. 4. Los Angeles, CA - Cancun, Mexico (Docket OST-2005-22415). On or about December 1, 2005, Delta proposes to introduce daily yearround service on this route using Boeing 737-800 aircraft with 16 premium and 134 coach seats. 5. Los Angeles, CA - Ixtapa/Zihuatanejo, Mexico (Docket OST-2005-22620). On or about March 18, 2006, Delta proposes to introduce one weekly roundtrip flight (Saturdays) on this route using Boeing 737800 aircraft with 16 premium and 134 coach seats, on a year-round basis. 6. Los Angeles, CA - Puerto Vallarta, Mexico (Docket OST-2005-22620). On or about February 4, 2006, Delta proposes to introduce one weekly roundtrip flight (Saturdays) on this route using Boeing 737800 aircraft with 16 premium and 134 coach seats, on a year-round basis. 7. Los Angeles, CA - San Jose del Cabo, Mexico (Docket OST-2005-22620). On or about February 4, 2006, Delta proposes to introduce one weekly roundtrip flight (Saturdays) on this route using Boeing 737-800 aircraft with 16 premium and 134 coach seats, on a yearround basis. 8. New York, NY/Newark, NJ- Cancun, Mexico (Docket OST-2005-22551). On or about December 17, 2005, Delta proposes to introduce daily year-round service on this route using Boeing 757-200 aircraft with 24 premium and 159 coach seats. 9. New York, NY/Newark, NJ - San Jose del Cabo, Mexico (Docket OST-2005-22243). On or about March 4, 2006, Delta proposes to introduce one weekly roundtrip flight (Saturdays) on this route using Boeing 737-800 aircraft with 16 premium and 134 coach seats, on a year-round basis. 10. Orlando, FL - Cancun, Mexico (Docket OST -2005-21284). As early as November 1, 2005, but no later than 90 days after the Department approves exemption authority to serve this route, Delta proposes to introduce daily year-round service on the Orlando-Cancun route using Boeing 737-800 aircraft with 16 premium and 134 coach seats. 11. Washington, D.C. - Cancun, Mexico (Docket OST-2005-22620). On or about February 4, 2006, Delta proposes to introduce one weekly roundtrip flight (Saturdays) on this route using Boeing 737-800 aircraft with 16 premium and 134 coach seats, on a year-round basis. Delta proposes to provide service via Washington Dulles International Airport. Delta proposes to operate all of the foregoing services using its existing fleet resources. Delta has 71 Boeing 737-800 aircraft and 121 Boeing 757-200 aircraft in its fleet, in addition to a number of other aircraft types, and has additional aircraft on order. Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com OST-1998-3736 - US-Hare, Zimbabwe October 21, 2005 Application for Renewal of Exemptions Hereby applies under 49 U.S.C. § 40109 for renewal of Delta's exemption authorities to engage in scheduled foreign air transportation of persons, property, and mail between the United States and the African points identified in Exhibit A, and to combine services operated under these exemptions with all other Delta services authorized by its existing certificates and exemptions, to the extent permitted by applicable international agreements. Delta provides direct, beyond-gateway and third-country codeshare service between the United States and numerous points in Africa in conjunction with codeshare partner South African Airways. Delta reserves the right to serve these routes with other codeshare partners in the future, subject to the Department's approval of any necessary statements of authorization. Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com OST-1995-651 - Confidential Treatment - Form 41, Schedule B-7 November 10, 2005 Motion for Confidential Treatment Delta Air Lines hereby submits this motion to withhold from public disclosure certain information contained in Delta's Form 41, Schedule B-7, Airframe and Aircraft Engine Acquisitions and Retirements report, for the quarter ended September 30, 2005, for a period of at least ten years, through September 30, 2015. Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999 OST-2001-10457 - Exemption - Cincinnati-Cancun November 22, 2005 Motion for a Temporary Dormancy Waiver Delta Air Lines, Inc. hereby moves for a temporary dormancy waiver with respect to the following U.S.-Cancun/Cozumel city-pairs:
Due to the devastation caused by Hurricane Wilma in Cancun and Cozumel, Delta has been forced to revise its service plans for the identified routes. Delta currently anticipates that it will resume or commence these services on or about June 1, 2006. Accordingly, Delta requests a temporary waiver so that the 90‑day dormancy period for each route will commence on June 1. Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
OST-2005-22104 - Exemption - Salt Lake City/Los Angeles-Cozumel November 22, 2005 In light of the severe damage Hurricane Wilma has inflicted on Cozumel, Delta Air Lines, Inc. no longer plans to introduce service on the Salt Lake City-Cozumel and Los Angeles-Cozumel routes pursuant to exemption authority granted by Notice of Action Taken dated August 31, 2005 (Docket OST-2005-22104). Accordingly, consistent with condition 7 of Appendix A of Order 88-10-2, Delta hereby provides notice of dormancy with respect to these routes. The dormancy notice period begins on March 4, 2006, the date Delta had proposed to introduce service. The 91st day of dormancy will occur on June 3, 2006. Counsel: Hogan & Hartson, Alexander Van der Bellen, 202-637-8382, sascha.vanderbellen@hhlaw.com
OST-2005-21284 - Delta - Exemption - Orlando-Cancun November 22, 2005 In light of the severe damage Hurricane Wilma has inflicted on Cancun, Delta Air Lines, Inc. and its wholly owned subsidiary Comair, Inc. have modified their start-up plans with respect to the above-referenced routes, as described in Attachment A. Delta anticipates that it will institute service on most of the subject routes by June 1, 2006, and requests that any dormancy condition run from that date. Delta is monitoring the situation in Cancun and hopes that it may be able to institute service sooner in some markets. Accordingly, Delta urges the Department to grant the requested economic authority for the identified routes as soon as possible. Finally, Delta no longer has active service plans for Orlando-Cancun, and hereby withdraws that application. Attachment A:
Counsel: Hogan & Hartson, Alexander Van der Bellen, 202-637-8382, sascha.vanderbellen@hhlaw.com OST-2005-23312 - Statement of Authorization - Atlanta-Tel Aviv Codesharing with El Al Israel Airlines December 8, 2005 Application for a Statement of Authorization Delta Air Lines, Inc. hereby applies for a statement of authorization under 14 C.F.R. Part 212 to permit Delta to display the LY* airline designator code of El Al Israel Airlines, Ltd. on nonstop flights operated by Delta between Atlanta, Georgia (ATL) and Tel Aviv, Israel (TLV) commencing March 27, 2006. Delta requests that this authority be granted as soon as possible and remain in effect for an indefinite term, subject to the Department's standard conditions. As part of its ongoing international expansion to important global business and tourist destinations, Delta plans to introduce daily nonstop service to Tel Aviv from its Atlanta hub next spring. Delta will provide the only nonstop service to Israel from the Southeastern United States, and the first nonstop service from a U.S. gateway other than New York/Newark. As the national airline of Israel, El Al is eager to participate in Delta's new service by displaying its designator code on Delta's nonstop flights. The proposed cooperative marketing arrangement will benefit both carriers and the traveling public. The addition of El Al's designator code on Delta's new flights will significantly enhance competition and the price and service options available to consumers seeking transportation between the United States and Israel. Delta and El Al's Atlanta-Tel Aviv service will also help boost commerce and tourism between Israel and the Southeast United States. Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com OST-2005-22620 - Exemption - US-Mexico City Pairs Filed October 3, 2005 | Issued December 9, 2005 Scheduled foreign air transportation of persons, property, and mail between (1) Atlanta, Georgia, and Acapulco, Mexico; (2) Atlanta, Georgia and Ixtapa/Zihuatanejo, Mexico; (3) Boston, Massachusetts, and Cancun, Mexico; (4) Los Angeles, California, and Puerto Vallarta, Mexico; (5) Los Angeles, California, and San Jose del Cabo, Mexico; (6) Los Angeles, California, and Ixtapa/Zihuatanejo, Mexico; and (7) Washington, D.C., and Cancun, Mexico, and to integrate this authority with Delta’s existing exemption and certificate authority, consistent with applicable international agreements. Delta proposes to offer year-round service in these markets. Granted Atlanta-Acapulco and Atlanta-Ixtapa/Zihuatanejo exemption authority, including corresponding route integration authority. Deferred on Delta's request for exemption authority to serve the Boston-Cancun, Los Angeles-Puerto Vallarta, Los Angeles-San Jose del Cabo, Los Angeles-Ixtapa/Zihuatanejo, and Washington, D.C.-Cancun markets, including corresponding route integration authority (see remarks, below). Deferred on Delta's request for certificate authority to serve the Atlanta-Acapulco, Atlanta-Ixtapa/Zihuatanejo, Boston-Cancun, Washington, D.C.-Cancun, Los Angeles-Puerto Vallarta, Los Angeles-San Jose del Cabo, and Los Angeles-Ixtapa/Zihuatanejo markets. Currently, under the U.S.-Mexico Air Transport Agreement, up to a total of two U.S. carriers may be designated to provide direct-carrier (own-aircraft) services in a given city-pair market. With the exception of the Atlanta-Acapulco and Atlanta-Ixtapa/Zihuatanejo markets, either two U.S. carriers are already authorized to provide direct-carrier services on the subject routes or applications have been received from U.S. carriers in excess of available designation opportunities. On September 21, 2005, the United States and Mexico reached an ad referendum agreement on certain amendments to the U.S.-Mexico aviation agreement, providing for the expansion of services between the two countries for both combination and all-cargo air transportation services including combination services in the Boston-Cancun, Los Angeles-Puerto Vallarta, Los Angeles-San Jose del Cabo, Los Angeles-Ixtapa/Zihuatanejo, and Washington, D.C.-Cancun markets. However, the agreement has not yet been signed. In the circumstances presented, we defer action on the applicant's request for authority with respect to the Boston-Cancun, Los Angeles-Puerto Vallarta, Los Angeles-San Jose del Cabo, Los Angeles-Ixtapa/Zihuatanejo, and Washington, D.C.-Cancun markets. By: Paul Gretch Order 2005-12-5 Issued and Served December 9, 2005 Order to Show Cause - Bookmarked By this order we tentatively find that it is in the public interest to grant to each air carrier in the above-captioned proceeding the blanket route integration certificate attached as Appendix A to this order. In response to the Notice, we received more than 20 submissions to the Docket from U.S. carriers seeking blanket route integration authority. The applicants of record are listed above, in the caption for this proceeding. For the most part, the carriers requesting such authority urged us to grant it in the broadest possible terms so that it would encompass prospective or future awards of authorities, as well as all currently held authority, and would be valid for an indefinite period or, alternatively, the longest possible duration, as opposed to the five-year term described in the Notice. Decision: We have tentatively decided to grant to each applicant of record a blanket route integration certificate covering all of its current and prospective international route authorities. We tentatively find that the award of such authority, with the enhanced operational flexibility and administrative convenience it would accord to the holder, is consistent with the public convenience and necessity. The authority would be subject to standard route integration and certificate conditions, and such other conditions as the Department may establish. The certificate would be awarded for a five-year duration and open to renewal. Consistent with the Notice, we will use a self-executing final order (Appendix B) to issue to each applicant of record an initial five-year blanket route integration certificate of public convenience and necessity in the form attached as Appendix A, assuming no objections and upon completion of the 49 U.S.C. § 41307 Presidential review. We have considered requests that we issue longer term or even indefinite route integration authority. However, we tentatively find that it would be more reasonable in the circumstances presented to award the authority for an appropriate and suitably limited length of time to give us the opportunity to review our streamlining approach to blanket route integration authority before renewing it. We tentatively regard five years as the appropriate length of time for this purpose. We note that some applicants of record may have previously submitted applications requesting route integration authority, among other things. To the extent superseded by the action taken here, we will deem those portions of pending applications as moot, as Department action on them would be duplicative and narrower in scope than the blanket route integration authority we intend to issue, and we will deem all such requests to have been dismissed without prejudice. By: Paul Gretch OST-2005-22243 - Exemption - Cincinnati-San Jose del Cabo / Atlanta-Merida / New York-Acapulco/Cozumel/Puerto Vallarta/San Jose del Cabo Filed August 24/31, 2005 | Supplemented October 17/14, 2005 | Issued December 12, 2005 Scheduled foreign air transportation of persons, property, and mail between New York, New York/Newark, New Jersey, on the one hand, and San Jose del Cabo, Mexico, on the other hand, and to integrate this authority with Delta’s existing certificate and exemption authority. Delta states that it will provide year-round service in the market beginning March 4, 2006. By Notice of Action Taken dated October 5, 2005, in Docket OST-2005-22243, we granted Delta’s requests for exemption authority to serve the Cincinnati-San Jose del Cabo, Atlanta-Merida, and New York/Newark-Cozumel, New York/Newark-Puerto Vallarta, and New York/Newark-Acapulco markets. We deferred action on Delta’s request to serve the New York/Newark-San Jose del Cabo market. This Notice of Action Taken addresses the still-pending portion of the applicant’s request. Delta also requests that its exemption authority for New York/Newark-San Jose del Cabo be awarded under the Department’s streamlined licensing procedures. To the extent that Delta is seeking certificate authority for the subject market, we will handle that request subsequently. Scheduled foreign air transportation of persons, property, and mail between New York (JFK), New York, and San Jose del Cabo, Mexico. American states that it will provide year-round service in the market beginning February 4, 2006. Although American did not specify, we will consider American’s request for exemption authority to be for a two-year term, the duration we normally award for authorizations of this type. American also requests that its exemption authority for New York-San Jose del Cabo be awarded under the Department’s streamlined licensing procedures. To the extent that American is seeking certificate authority for the subject market, we will handle that request subsequently. Granted: exemption authority to Delta to serve the New York/Newark-San Jose del Cabo market, including corresponding route integration authority. Granted: exemption authority to American to serve the New York (JFK)-San Jose del Cabo market. Deferred: on Delta’s request for certificate authority to serve the New York/Newark-San Jose del Cabo market and American’s request for certificate authority to serve the New York (JFK)-San Jose del Cabo market. At the time the captioned applications were filed, the operative U.S.-Mexico aviation agreement provided that the United States could designate only two U.S. carriers to provide scheduled combination services in the New York/Newark-San Jose del Cabo market. Continental Airlines, Inc., was already authorized and designated to serve the market. Thus, only one designation opportunity was available for the New York/Newark-San Jose del Cabo service. Continental filed answers to both applications stating that, among other things, it did not oppose either application for New York/Newark-San Jose del Cabo authority so long as Continental’s authority to serve the market remained effective and Continental could continue to serve the route. Additional responsive pleadings were filed regarding comparative selection issues. On September 21, 2005, the United States and Mexico reached an ad referendum agreement on certain amendments to the U.S.-Mexico aviation agreement, providing for the expansion of services between the two countries for both combination and all-cargo air transportation services, including combination services in the New York/Newark-San Jose del Cabo market. We are now in a position to award authority pursuant to these amendments. Two route opportunities are now available for New York/Newark-San Jose del Cabo services. Because only two applicants (Delta, in Docket OST-2005-22331, and American, in Docket OST-2005-22331) have applied for the authority in the New York/Newark-San Jose del Cabo market, we will now grant the applicants’ requests for exemption authority here. In order to grant promptly Delta’s and American’s requests for new authority under the expanded U.S.-Mexico aviation agreement, we have acted on the exemption requests, only, by this Notice. We will handle, subsequently, American’s request (in Docket OST-2005-22331), for New York (JFK)-San Jose del Cabo certificate authority, and Delta’s request (in Docket OST-2005-22243), for New York/Newark-San Jose del Cabo certificate authority. By: Paul Gretch OST-2005-22360 - United - Exemption - Los Angeles-Cancun Filed September 1/7, 2005 | Supplemented October 17, 2005 | Issued December 12, 2005 Scheduled foreign air transportation of persons, property, and mail between Los Angeles, California, and Cancun, Mexico. United states that it will initially provide daily service in the market, beginning on or about December 15, 2005. United also requests that its exemption authority for Los Angeles-Cancun be awarded under the Department’s streamlined licensing procedures. To the extent that United is seeking certificate authority for the subject market, we will handle that request subsequently. Scheduled foreign air transportation of persons, property, and mail between Los Angeles, California, and Cancun, Mexico, and to combine this exemption authority with Delta’s existing exemption and certificate authority, consistent with applicable international agreements. Delta states that it will provide daily service in the market, beginning on or about June 1, 2006. In a consolidated supplement filed in Delta’s present application (Docket OST-2005-22415), among other dockets, Delta urges the Department to grant its request for Los Angeles-Cancun authority under the Department’s streamlined licensing procedures. To the extent that Delta is seeking certificate authority for the subject market, we will handle that request subsequently. By letter dated November 22, 2005, Delta revised its startup date for Los Angeles-Cancun services from December 1, 2005, to June 1, 2006. Granted: exemption authority to United and Delta to serve the Los Angeles-Cancun market. Granted |