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Delta Air Lines, Inc. - 2008 Filings
Counsel: Delta, Scott McClain, 404-773-6514, scott.mcclain@delta.com
Delta Air Lines, Inc.
OST-2007-29356 - Exemption and Allocation of Frequencies - New York-Cape Town via Dakar
January 16, 2008
Application for Allocation of Four Additional US-South Africa Frequencies
Hereby applies for an allocation of four additional U.S.-South Africa frequencies for Delta's scheduled foreign air transportation of persons, property, and mail between New York, New York, and Cape Town, South Africa, via Dakar, Senegal. With these additional frequencies, Delta will be able to offer U.S. passengers daily service to Cape Town, complementing its current daily Atlanta-Dakar-Johannesburg service and further establishing Delta as the leader in the provision of quality of U.S.-flag service to Africa.
Delta's proposed additional flights between New York and Cape Town, South Africa, via Dakar, Senegal, will operate, beginning on or about June 3, 2008, using Boeing 767-300ER aircraft configured with 185 coach and 36 BusinessElite seats.
Delta seeks an allocation of four of those available frequencies so that it may increase its current thrice weekly one-stop New York-Cape Town offering to daily service. Thus, even after granting the frequency allocation requested herein, there will still be seven unused U.S.-South Africa frequencies available for allocation to other carriers.
Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
OST-2007-29356 - Exemption and Allocation of Frequencies - New York-Cape Town via Dakar
January 18, 2008
We have concluded our polling of the U.S. carrier representatives served with the above-referenced Application (dated January 16, 2008), and no carrier has objected to the relief sought therein. Accordingly, Delta Air Lines respectfully urges that the requested authority be granted as soon as possible.
Counsel: Hogan & Hartson, Patrick Rizzi, 202-637-5600, prizzi@hhlaw.com
OST-2008-0045 - Exemption - US-Guyana
OST-1999-6246 - New or Amended Certificate of Public Convenience and Necessity (Open Entry Routes)
January 29, 2008
Delta hereby applies for an exemption authorizing Delta to provide scheduled foreign air transportation of persons, property, and mail between any point or points in the United States and any point or points in Guyana. Specifically, Delta requests that, as soon as possible, the Department issue a single Order: (1) awarding Delta a certificate of public convenience and necessity for U.S.-Guyana per its pending application in Docket DOT-OST-1999-6246; or (2) issuing Delta (i) the requested U.S.-Guyana exemption authority for a period of two years or until 90 days after the Department's final determination on Delta's certificate application, whichever occurs first, and (ii) tentative approval of the corresponding certificate of public convenience and necessity under the show-cause procedures described in the Streamlined Licensing Procedures Notice. If the Department proceeds under option (2), as soon as possible thereafter, the Department should issue a Final Order granting Delta's U.S.-Guyana certificate, valid for an indefinite duration.
Delta plans to operate nonstop service between New York (JFK) and Georgetown, Guyana, four times weekly on a year-round basis using B-757 aircraft with 183 seats. Delta plans to commence this new service on or about June 16, 2008.
Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
Other US-Guyana Applications:
OST-2006-24666 - E-Jet - US-Guyana (Pending)
OST-2007-29356 - Exemption and Allocation of Frequencies - New York-Cape Town via Dakar
Filed January 16, 2008 | Issued January 29, 2008
Allocation of four U.S.-South Africa frequencies for the scheduled foreign air transportation of persons, property and mail between New York, New York and Cape Town, South Africa, via Dakar, Senegal.
Under the U.S.-South Africa aviation agreement, U.S. carriers may operate 21 weekly scheduled combination frequencies. By Notice of Action Taken dated October 16, 2007, in the instant docket, the Department allocated three of those frequencies to Delta to serve between New York and Cape Town via Dakar leaving a total of 11 frequencies available for allocation. Delta’s current request for 4 frequencies to serve between New York and Cape Town via Dakar will leave a total of 7 frequencies available for allocation.
By: Paul Gretch
OST-2006-23526 - Exemption - Atlanta-Quito/Guayaquil
February 1, 2008
Application for Allocation of One Additional Frequency
Delta proposes to add its eighth weekly flight between Atlanta and Ecuador beginning on or about June 2, 2008, using Boeing 737-800 aircraft configured with 144 coach and 16 BusinessElite seats. Delta currently provides daily "round-robin" Atlanta-Quito-Guayaquil-Atlanta service on a year-round basis, and the eighth weekly frequency will enable Delta to complement this service with an additional flight to meet consumer demand in the U.S.-Ecuador market.
Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
OST-2006-23526 - Exemption - Atlanta-Quito/Guayaquil, Ecuador
February 5, 2008
We have concluded our polling of the U.S. carrier representatives served with the above-referenced Application (dated February 1, 2008), and no carrier representative has objected to the relief sought therein. Accordingly, Delta Air Lines respectfully urges that the requested authority be granted as soon as possible.
Counsel: Hogan & Hartson, Patrick Rizzi, 202-637-5659, prizzi@hhlaw.com
OST-2008-0045 - Exemption - US-Guyana
OST-1999-6246 - New or Amended Certificate of Public Convenience and Necessity (Open Entry Routes)
February 5, 2008
We have concluded our polling of the U.S. carrier representatives served with the above-referenced Application (dated January 29, 2008), and no carrier representative has objected to the relief sought therein. Accordingly, Delta Air Lines respectfully urges that the requested authority be granted as soon as possible.
Counsel: Hogan & Hartson, Patrick Rizzi, 202-637-5659, prizzi@hhlaw.com
OST-1997-2653 - Exemption and Statements of Authorization - US-China Codeshare with China Southern (Los Angeles-Guangzhou)
OST-2001-9314 - Exemption and Statements of Authorization - US-China Codeshare with China Southern
OST-2001-10172 - 2001 China Codeshare Points
February 6, 2008
Application for Renewal of Exemption Authority
Delta hereby applies for renewal of exemption authority under 49 U.S.C. § 40109 to authorize Delta to continue to provide scheduled foreign air transportation of persons, property, and mail between the United States and China on a codesharing basis with China Southern Airlines Company Limited. Delta's exemption for purposes of codesharing on flights operated by China Southern was last renewed and amended by Notice of Action Taken dated April 10, 2006 (Dockets DOT-OST-1997-2653, DOT-OST-2001-9314 and DOT-OST-2001-10172) for a two year period expiring April 10, 2008. Delta requests renewal of this exemption authority for an additional period of at least two years, or until 90 days after the Department's final determination on an application of Delta for comparable U.S.-China certificate authority.
Delta displays its designator code on flights operated by China Southern between the United States and China (currently, on the Los Angeles-Guangzhou routes) and between Delta's authorized Chinese gateways and points within China.
Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
OST-2008-0045 - Exemption - US-Guyana
Filed January 29, 2008 | Issued February 7, 2008
Scheduled foreign air transportation of persons, property, and mail between any point or points in the United States and any point or points in Guyana.
Delta also requests that the Department award Delta a certificate of public convenience and necessity for U.S.-Guyana per its pending application in Docket DOT-OST-1999-6246. We will handle Delta’s request for certificate authority separately.
By: Paul Gretch
OST-2004-16975 - Exemption - Boston-Mexico City
February 8, 2008
Re: Notice of Dormancy and Discontinuation of Codesharing
Pursuant to the dormancy notice requirements set forth in condition 7 of Appendix A of DOT Order 1988-10-2, Delta Air Lines, Inc. hereby notifies the Department of the dormancy of its Boston, Massachusetts-Mexico City, Mexico authority. Delta also hereby notifies the Department that its "DL*" designator code will no longer be displayed on Aeromexico flights on the Boston-Mexico City route.
Counsel: Hogan & Hartson, Patrick Rizzi, 202-637-5659, prizzi@hhlaw.com
OST-2006-23526 - Exemption - Atlanta-Quito/Guayaquil, Ecuador
Filed December 3, 2007 and February 1, 2008 | Issued February 8, 2008
Renewal of scheduled foreign air transportation of persons, property, and mail between Atlanta, Georgia, on the one hand, and Quito and Guayaquil, Ecuador, on the other.
Delta filed for renewal of its exemption authority on December 3, 2007 and for the allocation of one additional U.S.-Ecuador frequency on February 1, 2008.
With our action here, Delta will hold a total of eight U.S.-Ecuador frequencies for use on its Atlanta-Quito-Guayaquil service.
By: Paul Gretch
OST-1995-651 - Form 41 Schedule B-7
February 12, 2008
Motion for Confidential Treatment Pursuant to Rule 12
Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999
OST-2007-29356 - US-South Africa Combination Frequencies
March 5, 2008
Re: Return of Three South Africa Frequencies
Delta currently holds a total of seven frequencies for combination services between New York and Capetown, South Africa, via Dakar, Senegal, for service beginning June 3, 2008. However, Delta now plans to initiate this Capetown service with only four weekly flights. Accordingly, Delta hereby returns three U.S.-South Africa frequencies to the Department’s unallocated pool.
Counsel: Delta, J. Scott McClain, 404-773-6514
OST-2003-14290 - Exemption - San Jose del Cabo-Ontario / Monterrey-Las Vegas
OST-2004-18184 - Exemption - Salt Lake City-Cancun
OST-2004-18878 - Exemption-Salt Lake City-San Jose del Cabo
OST-2004-19231 - Exemption - Atlanta-Cozumel
OST-2005-23497 - Los Angeles-Puerto Vallarta Combination Service Proceeding
OST-2006-24427 - Exemption - Atlanta-Leon/Guanajuato
OST-2006-24984 - ASA and Delta - Los Angeles-Mexico Routes
OST-2006-25065 - Exemption - Los Angeles-Acapulco
OST-2006-25433 - Exemption - Orlando/Salt Lake City-Mexico City
OST-2006-25495 - Exemption - Salt Lake City-Guadalajara/Mazatlan/San Jose del Cabo
March 25, 2008
Application for Renewal of Exemptions
Pursuant to these exemptions, Delta provides nonstop U.S.‑Mexico service, in some cases with its own aircraft, in some cases on a codeshare basis with Aeromexico or Delta Connection carriers, and in some cases both with its own aircraft and on a codeshare basis.
Delta's exemption authority in Docket OST-2003-14290 also includes the Ontario-San Jose del Cabo route, but Delta is not seeking renewal of the exemption as it pertains to that route because the Aeromexico flights on which Delta had previously placed its code have been discontinued. In that regard, by letter dated February 20, 2007, filed in this Docket, Aeromexico notified the Department that it would not seek renewal of its Ontario-San Jose del Cabo exemption authority.
Delta currently offers service on the Los Angeles-Mexico routes specified in Docket OST-2006-24984 by displaying its code on "small aircraft" regional jet services operated by ExpressJet Airlines, Inc. Although Delta would remain authorized to offer such services pursuant to 14 C.F.R. § 206.5, Delta is seeking renewal of its exemption authority to provide it with the flexibility to offer large aircraft service in the future.
Delta and Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
OST-1995-651 - Form 41 Schedule B-7
March 28, 2008
Motion for Confidential Treatment
Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999
OST-2002-12555 - Designation of Agent for Service
April 9, 2008
Counsel: Delta, Scott McClain, 404-773-6514, scott.mcclain@delta.com
OST-1995-651 - Form 41; Schedule B-7
May 9, 2008
Motion for Confidential Treatment
Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999
OST-2008-0181 - Temporary Blanket Dormancy Waiver
June 3, 2008
Joint Application for Temporary Blanket Dormancy Waiver and Motion to Shorten Answer Period
As a result of an unprecedented 82.5% increase in fuel costs over the last 12 months and increasingly difficult economic conditions, analysts are predicting that "airline industry losses could top $7.2 billion this year." The U.S. airline industry already suffered losses of over $1.7 billion in the first quarter of 2008 (excluding special items), seven thousand airline industry employees have lost their jobs, at least seven airlines have filed for bankruptcy, six of them are being liquidated, business travel is declining, deliveries of the new, fuel-efficient B-787 aircraft slated to replace less fuel-efficient aircraft on international routes have been delayed, and all U.S. airlines are being forced to re-evaluate the flights they offer to avert financial catastrophe. Airlines are eliminating routes, reducing and simplifying their fleets, and testing the limits of fare increases and other fees required to recoup crushing fuel costs. Like most network carriers, the Joint Applicants will be reducing the number of flights they operate significantly, particularly during periods of low demand.
As a result of the extraordinarily difficult circumstances currently affecting airlines, the Joint Applicants request a waiver of all applicable dormancy conditions in their frequency allocations and limited entry authority for a period of two years from the Department's decision waiving the dormancy requirements and urge the Department to act on this request as quickly as possible but no later than June 30. The Joint Applicants agree to notify the Department by February 15, 2010, if service will be suspended on routes subject to dormancy conditions after June 30, 2010, and they will not object to temporary re-allocation of unused frequencies or dormant limited-entry route rights to other airlines during the waiver period. Waivers granted on these terms will strike an appropriate balance between the urgent need of the airlines for flexibility and the importance of permitting utilization of valuable limited-entry frequencies and routes.
Granting the waivers requested by the Joint Applicants will relieve all parties of the burden of submitting individual waiver requests and processing them during this critical period. Similar relief was granted to the airlines when the carriers faced equally difficult circumstances after September 11, 2001. (See Order 2001-11-15) In these perilous times, airlines should not be required to operate flights that are uneconomic during periods of low demand to preserve their long-term investments in operating rights in limited-entry markets, and neither the carriers nor the Department should be burdened with processing numerous applications for specific waivers when they have far more important tasks before them.
Counsel: Squire Sanders, Marshall Sinick, 202-626-6651 for Alaska / Carl Nelson, 202-496-5647 for American / Crowell & Moring, Bruce Keiner, 202-624-2615 for Continental / Scott McClain, 404-773-6514 for Delta / Sascha Van der Bellen, 202-842-3193 for Northwest / Wilmer Hale, Bruce Rabinovitz, 202-663-6000 for United / Howard Kass, 703-872-5230 for US Airways
OST-2008-0181 - Temporary Blanket Dormancy Waiver
Served June 4, 2008
Notice Shortening Answer Period
On June 3, 2008, seven certificated U.S. air carriers submitted a joint application for a temporary two-year blanket waiver of all dormancy conditions applicable to their frequency allocations and other limited entry international authority. They also requested that we establish a six-calendar-day answer period for responses to the joint application.
In the interest of reaching an expedited decision, we have decided to make answers to the joint application due June 10. Replies are due June 13.
By: Paul Gretch
June 3, 2008
Re: Revised Certificate of Service
On behalf of the Joint Applicants in OST-2008-0181, attached is a revised certificate of service. The revised service list includes all certificated US air carriers identified by the Department at http://ostpxweb.ost.dot.gov/aviation/certific/certlist.pdf, last updated May 18, 2008.
Counsel: American, Carl Nelson, 202-496-5647
June 4, 2008
Answer of Frontier Airlines to Joint Application
The seven airlines listed above filed a joint application with the Department of Transportation for a temporary blanket dormancy waiver applicable to their frequency allocations and other limited entry international authority for a period of two years beginning as soon as possible subject to the conditions set forth in the Joint Application. Frontier Airlines does not oppose this Application. If the Department grants the Joint Application, the authority approved should be provided to all carriers.
As the Joint Applicants stated in their application, "the Joint Applicants urge the Department to grant comparable international dormancy waiver relief to all air carriers."
Therefore, Frontier Airlines hereby asks the Department to grant to it the identical temporary waivers or exemptions from dormancy conditions on their frequency allocations and limited entry authorities for the same time period as those granted to the Joint Applicants.
Counsel: Wiley Rein, Edward Faberman, 202-719-7000
OST-2008-0181 - Temporary Blanket Dormancy Waiver
June 6, 2008
jetBlue Airways answers in support of the application filed in the above-captioned proceeding. Given the current conditions facing jetBlue and the industry, granting it and others the flexibility to tailor its operations to the conditions it faces without the need for filing of pleadings at DOT is good administrative policy and will provide efficiency both air carriers and the Department.
Like the Joint Applicants, the exponential increase in fuel costs and increasingly difficult economic conditions have impacted jetBlue. As a result, jetBlue respectfully requests that the Department grant it the same relief requested by the Joint Applicants. jetBlue agrees to abide by the condition set forth in the Joint Application, requiring the notification of the Department by February 15, 2010, if service will be suspended on routes subject to dormancy conditions after Juen 30, 2010. Given that jetBlue plans to serve all routes for which it has been granted authority by the Department, it does not support the temporary use by others of routes or frequencies during a period when jetBlue is not using the restricted route or frequency.
Counsel: Dow Lohnes, Jonathan Hill, 202-776-2000
OST-2008-0185 - Exemption - New York-Buenos Aires
June 9, 2008
Delta hereby applies for an exemption authorizing Delta to operate scheduled foreign air transportation of persons, property, and mail between New York, New York, and Buenos Aires, Argentina. Delta further requests five U.S.-Argentina frequencies and (to the extent necessary) designations in order to operate such services. Delta asks that this authority remain in effect for at least two years or until ninety days after final Department action granting a Delta application for certificate authority with respect to these routes, whichever occurs earlier.
Pursuant to the exchange of notes dated July 3, 2007, the U.S.-Argentina service opportunities available to U.S. carriers have been dramatically expanded and there are more than sufficient unallocated frequencies available to satisfy Delta’s request. As of March 21, 2008, up to 98 weekly round trip frequencies by U.S. carriers were authorized. As of March 21, 2009, up to 112 frequencies will be available. Currently, only 56 weekly round trip frequencies are operated by U.S. carriers.
Delta plans to inaugurate nonstop New York (JFK) – Buenos Aires service on or about December 18, 2008, using B-767-300ER aircraft currently in its fleet configured with 178 coach class and 36 business class passenger seats. The service will initially be operated 5 times per week during the peak season (December-April) and 4 times per week during the remainder of the year. Delta requests the flexibility to use all 5 frequencies on a seasonal basis so that it can quickly adjust its service levels to market demand.
Counsel: Delta, Scott McClain, 404-773-6514
OST-2008-0181 - Temporary Blanket Dormancy Waiver
June 10, 2008
SkyWest Airlines strongly supports the Joint Applicants' request for an immediate two-year blanket dormancy waiver for all airlines holding international route authority. In addition to the reasons presented by the Joint Applicants, the dramatic cut-backs in operations, employees and fleets announced last week by United and Continental, and last month by American, underscore the urgent need for such blanket temporary waiver relief.
The Department should grant Sky West, the Joint Applicants and all other airlines a two-year waiver of, or exemption from, dormancy conditions on their frequency allocations and limited entry authority without delay.
Counsel: Crowell & Moring, Lorraine Halloway, 202-624-2538
OST-2008-0181 - Temporary Blanket Dormancy Waiver
June 10, 2008
Joint Answer of FedEx, Polar Air Cargo and UPS
The Joint Cargo Airline Parties have no objection to the grant of the application provided that the Department of Transportation grant all U.S. carriers, including all-cargo carriers, the relief requested. In addition, the Joint Cargo Airline Parties request that the Department adopt expedited procedures for approving applications of carriers that wish to utilize the authority covered by any temporary dormancy waivers.
While the Joint Cargo Airline Parties have no current plans to temporarily cease using any frequencies or limited entry route rights, the Joint Cargo Airline Parties believe that granting a blanket dormancy waiver to all U.S. carriers would reduce the time and resources spent by the Department and US. carriers on individual dormancy waiver applications.
While the Joint Cargo Airline Parties do not object to the Joint Application if the Department provides the temporary blanket dormancy waiver to all U.S. carriers, the Joint Cargo Airline Parties believe that the unused authority should be available for use by another air carrier for the duration of the entire waiver period and request that the Department adopt an expedited procedure for reviewing and granting applications of U.S. carriers that wish to use the authority covered by any blanket waiver.
Counsel: James Davis, 901-434-8488 for FedEx / Kevin Montgomery, 202-828-1002 for Polar Air Cargo / Michael Francesconi, 502-329-6541 for UPS
June 10, 2008
Answer of Spirit Airlines in Opposition to Joint Application for a Temporary Dormancy Waiver
Spirit believes this is a purely anticompetitive effort by these legacy carriers to essentially put in deep freeze valuable and highly contested limited international route authority to the detriment of the traveling public. For these reasons, and as set forth below, Spirit answers to strongly oppose the Application’s unprecedented request to suspend market place competition for a period of two years, in what are already the most restricted U.S. aviation markets. Significantly, the requested relief is contrary to law including the governing statute and important established Department policies.
Spirit does not believe the conditions of the market justify or would benefit from the blanket suspension of the important and “longstanding policy not to permit valuable operating rights to remain unused for an extended period.” Order 2005-4-13 (April 12, 2005). This policy is incorporated in the use-or-lose condition established by the dormancy requirements.
it was almost the precisely same mix of rapidly escalating fuel prices and a slowing economy that served as the catalyst for airline deregulation. As chronicled by the Air Transport Association, in the early 1970s the Civil Aeronautics Board imposed a moratorium on new route awards. Then, in the aftermath of the 1973 Arab oil embargo, which led to inflation and falling demand, the CAB permitted the U.S. airlines to raise fares and enter into agreements to reduce capacity on major routes. As the ATA reports, “none of these moves, which made flying more costly, was popular with the public,” and quickly advanced the movement to deregulation, where the policies referenced above were established.
Counsel: Kirstein & Young, Joanne Young, 202-331-3348
OST-2008-0185 - Exemption - New York-Buenos Aires
June 12, 2008
Delta Air Lines, Inc. has concluded its polling of the representatives of all U.S. carriers currently offering U.S.-Argentina service, concerning the above-referenced application dated June 9, 2008. No carrier representative has objected to the application.
American Airlines, which filed its own request for additional U.S.-Argentina frequencies the day after Delta’s application was filed, has advised that it does not object so long as its own application is granted contemporaneously. Delta does not object to the granting of American’s request, so long as Delta’s application is granted contemporaneously. Delta therefore requests that the authority Delta seeks be granted as soon as possible.
Counsel: Delta, Scott McClain, 404-773-6514
OST-2008-0181 - Temporary Blanket Dormancy Waiver
June 13, 2008
Joint Reply of The Joint Applicants
Every certificated U.S. carrier (over 130 airlines) was served with the application, which received the strong support or concurrence of multiple carriers including FedEx Express, Frontier, JetBlue, Polar, SkyWest and UPS. Only a single airline, Spirit, opposed the joint application. Spirit operates limited international services, and has no intercontinental range aircraft.
In the current environment, all carriers with significant international operations need to be able to respond rationally and appropriately to the immediate fuel price crisis without jeopardizing routes that are of long term importance to their networks, their customers, and the communities they serve. Accordingly, the joint application should be granted without delay.
Given Spirit's limited international interests, its motive in opposing the joint request appears to stem from "sour grapes" over not receiving multiple awards in the recent U.S.-Colombia (OST-2007-0006) service proceeding. Such parochial motives are no basis for denying the joint request.
Counsel: Squire Sanders, Marshall Sinick, 202-626-6651 for Alaska / Carl Nelson, 202-496-5647 for American / Crowell & Moring, Bruce Keiner, 202-624-2615 for Continental / Scott McClain, 404-773-6514 for Delta / Sascha Van der Bellen, 202-842-3193 for Northwest / Wilmer Hale, Bruce Rabinovitz, 202-663-6000 for United / Howard Kass, 703-872-5230 for US Airways
OST-2008-0185 - Exemption - Five Weekly US-Argentina Frequencies - New York-Buenos Aires
Filed June 9, 2008 | Issued June 17, 2008
Scheduled foreign air transportation of persons, property, and mail between New York, New York, and Buenos Aires, Argentina. Delta states that it proposes to use the frequencies requested here to inaugurate nonstop service in the New York (JFK)-Buenos Aires market on or about December 18, 2008. Delta further states that it will initially operate its proposed service five times weekly during peak season (December-April) and four times weekly during the remainder of the year.
In its June 12, 2008 submission to the Department reporting its polling results, Delta states that it received non-objections to its application from each of the carriers served. Delta notes that it was advised by American Airlines that American does not object to the request of Delta provided that the Department contemporaneously grants American’s pending application for New York (JFK)-Buenos Aires authority (see Docket OST-2008-0186).
By: Paul Gretch
OST-2007-28567 - 2007/2008/2009 US-China Frequency Allocation
Filed June 3, 2008 | Issued June 18, 2008
By Order 2007-9-25, the Department allocated to Delta seven frequencies to operate daily Atlanta-Shanghai service, commencing March 2008. Delta now seeks the flexibility to adjust its U.S.-China service schedule such that it will offer daily Atlanta-Shanghai service during the peak summer season but reduce its schedule to five weekly flights during the winter to better match capacity to the reduced market demand. Delta intends to reduce its daily service to five times a week beginning November 7, 2008, returning to daily Atlanta-Shanghai service for the summer season in May 2009.
By: Paul Gretch
OST-2008-0181 - Temporary Blanket Dormancy Waiver
June 20, 2008
Response of Spirit Airlines to Joint Reply
Spirit opposed the Joint Applicants because the carriers are requesting the Department to endorse a request that is anticompetitive, and ignores established law and Department policy by effectively and collectively freezing route authority in restricted international markets. Spirit’s objection has nothing to do with “sour grapes.” However, Spirit does strongly believe carriers that within the last several months, and as fuel prices continued to rise, confirmed their intentions to institute new service, should not be given a two year pass on instituting this authority if other carriers are prepared to use those frequencies. While currently there may be no U.S. carriers other than the Joint Applicants that are able to operate to China or Japan, markets that might raise unique operating issues in the current environment given the very long distances involved, such limitations do not apply to shorter haul restricted markets in South America that are easily reached with narrow bodied aircraft. There are a number of carriers, including low fare carriers, who could operate these services to these destinations and would now be prepared to serve if frequencies were available.
If, as the Joint Applicants contend, these relatively short haul markets are important to their networks and their customers, they should continue to operate them. Otherwise, consumers should have access to new service that other carriers are prepared to offer. The alternative proposed by the Joint Applicants is less service, higher fares and unused frequencies that are the product of difficult negotiations conducted by the United States. Again, with the possible exception of the awards for service to China, it is impossible to support the proposition that consumers should be punished by reduced service and higher fares, because the incumbent claims that the route will benefit it in the long term. This applies with particular force to service that has only recently been awarded and which the incumbent carrier has never operated.
Counsel: Kirstein & Young, Joanne Young, 202-331-3348
OST-2005-22243 - Exemption - Cincinnati-San Jose del Cabo
OST-2005-22620 - Exemption - Atlanta-Acapulco; Boston-Cancun; Washington, DC-Cancun
OST-2006-24984 - Exemption - ASA and Delta - Los Angeles-Mexico Routes
OST-2006-25433 - Exemption - Orlando/Salt Lake City-Mexico City
June 30, 2008
Motion for Approval of Conversion to Seasonal US-Mexico Services
Unfortunately, the market conditions for air transportation have radically deteriorated in recent months, in particular due to the unprecedented increase in jet fuel costs during that period. The fuel cost increases have had disastrous financial consequences for U.S. carriers, forcing all of them to reevaluate and restructure their route networks. Several carriers have already been forced into bankruptcy and/or liquidation in recent months.
Permitting Delta the flexibility to adjust its service offerings in these markets so as to more accurately match capacity to demand on a seasonal basis will allow it to maintain transborder services in these markets, which enhances competition and expands price and service options for U.S.-Mexico travelers and shippers. Puerto Vallarta, Mazatlan, San Jose del Cabo, Acapulco, and Cancun are all triple-designation markets under the U.S.-Mexico Air Transport Services Agreement, as amended. There are at least one and in several cases two unallocated designations for U.S. carrier-operated service available in each of these markets except Los Angeles - La Paz. Up to ten carriers from each country may be designated to serve each city pair market on a codeshare basis. As such, there are abundant unused service opportunities for other carriers on each of these routes.
La Paz is not a triple‑designation market under the U.S.‑Mexico Air Transport Services Agreement as amended, and competitive service is currently operated in this market by Alaska Airlines.
Counsel: Delta, Scott McClain, 404-773-6514
Order 2008-7-6
OST-2008-0181 - Temporary Blanket Dormancy Waiver
Served July 3, 2008
By this Order, we deny the requests of various certificated U.S. air carriers for a temporary blanket waiver of dormancy conditions applicable to frequency allocations and other limited-entry route authority. We will continue to act upon all such requests on an individual basis, consistent with the public interest.
While we recognize the concerns cited by the carriers, we also recognize that the market characteristics of each limited entry route are different and that the impact of market forces on individual carriers is different. Taking these factors into account, we have decided that in the circumstances presented in this proceeding, the public interest would be better served by continuing to address temporary dormancy waiver requests on an individual basis. Such individual consideration will enable us to assess whether a specific waiver is in the public interest based on the circumstances prevailing and any comments received. We find that our practice of entertaining individual waiver requests best balances our objectives of providing carriers the flexibility they need to adjust to the existing economic circumstances with our interest in utilization of valuable route rights for the benefit of the traveling and shipping public.
By: Michael Reynolds