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United Air Lines, Inc. - 2008 Filings
United Air Lines, Inc.
OST-1996-1346 - Exemption - US-Brazil Frequency Allocation
OST-1997-2358 - Exemption - Statement of Authorization - US-Brazil
January 11, 2008
Application for Renewal of an Exemption
United Air Lines, Inc. hereby applies for renewal of two exemption authorities in the above-eaptioned dockets which support, inter alia, a number of United's U.S.-South America operations, both code share and direct. United requests that these two exemptions be renewed for a minimum period of two years or until the Department grants United's corresponding application for a certificate of public convenience and necessity, as amended, pending in Docket OST-1995-495.
United requests that the Department renew its aforesaid exemption authorities for a minimum period of two years, subject to the usual conditions, or until the Department grants United's corresponding application for a certificate of public convenience and necessity, as amended, currently pending in Docket OST-1995-495.
Counsel: United, Julie Oettinger, 202-296-2370, julie.oettinger@united.com
OST-2003-16213 - US-People's Republic of China Codesharing with Air China
Filed August 22, 2005 | Issued January 11, 2008
Renewal of scheduled foreign air transportation of persons, property, and mail, in combination or separately, between any point or points in the United States, and any point or points in the People’s Republic of China. United operates this service pursuant to its code-share arrangement with Air China Limited d/b/a Air China.
By: Paul Gretch
OST-2008-0023 - Exemption - Los Angeles-San Jose del Cabo
January 15, 2008
United seeks an exemption authorizing it to provide scheduled foreign air transportation of persons, property, and mail in the LAX-SJD market. United will operate its LAX-SJD services from its hub at Los Angeles International Airport.
United plans to operate its proposed services with Airbus 320 equipment in United’s all-economy Ted configuration with 156 seats or similar aircraft from United’s existing fleet.
United asks that the requested exemption authority remain in effect for a period of two years subject to the usual conditions. In order to complete the planning and preparations to start service on April 14, 2008, without interruption after Frontier’s termination, United must receive its exemption authority immediately.
Counsel: United, Julie Oettinger, 202-296-2370, julie.oettinger@united.com
Undocketed - Codeshare with Air Canada
Undocketed - Codeshare with All Nippon Airways
OST-2002-13320 - Codeshare with Asiana
OST-2003-15758 - Codeshare with British Midland
OST-2000-6803 - Codeshare with Austrian Airlines
Undocketed - Codeshare with Lufthansa
OST-2007-28628 - Codeshare with Qatar Airways
OST-1999-5251 - Codeshare with SAS
OST-2006-24078 - Codeshare with TACA and LACSA
January 17, 2008
Pursuant to the blanket Statements of Authorization the Department has granted to United Air Lines and its foreign code-share partners Air Canada (June 12, 1998, Undocketed), All Nippon Airways Co. Ltd. (August 7, 1998, Undocketed), Asiana Airlines (December 19, 2002, Docket OST-2002-13320), Austrian Airlines, Osteneichische Luftverkehrs AG (March 13, 2000, Docket OST-2000-6803), British Midland Airways Limited (December 3, 2003, Docket OST-2003-15758), Deutsche Lufthansa AG (April 9, 1998, Undocketed), Qatar Airways, Q.C.S.C. (July 19, 2007, Docket OST-2007-28628), Scandinavian Airlines System (May 24, 1999, Docket OST-1999-5251), TACA International Airlines, S.A., and Lineas Aereas Costarricenses S.A. (May 18, 2006, Docket OST-2006-24078), United hereby notifies the Department that United will display the designator codes of these foreign carrier partners on United's flights between and among the cities listed in Exhibit A hereto.
United and its foreign code‑share partners have previously filed most of the cities referenced in Exhibit A with the Department in the above‑referenced proceedings. Since the purpose of this notice is to update the list previously provided to the Department, the entire list is being refilled for ease of reference. To the extent that any of the cities included in this notice have not been previously noticed to the Department, code‑share service to those cities will not be implemented for a period of 30 days following the filing date of this notice.
Counsel: United, Julie Oettinger
OST-2008-0023 - Exemption - Los Angeles-San Jose del Cabo
January 18, 2008
Since United and Delta both seek this designation, their requests are mutually exclusive, and the Department is required to institute a comparative selection proceeding to consider the merits of the competing applications in accordance with Ashbacker Radio Corp. v. FCC, 326 U.S. 327 (1945). In fact, United concedes that a comparative selection proceeding is necessary, noting that it would provide "a full detail of its level of proposed service ... should that be required by the Department for purposes of carrier selection."
Accordingly, Delta urges the Department promptly to institute a carrier selection proceeding to allocate the dormant Los Angeles - San Jose del Cabo opportunity. In that proceeding Delta will demonstrate the superiority of its proposed Los Angeles - San Jose del Cabo service proposal over those of any other carrier-applicants.
Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
OST-2005-23498 - Los Angeles-San Jose del Cabo Combination Service Proceeding
OST-2003-16213 - Exemption - US-People's Republic of China Codesharing with Air China
Filed August 22, 2005 | Issued January 18, 2008
Notice of Action Taken - Amended Copy | Word
Renewal of scheduled foreign air transportation of persons, property, and mail, in combination or separately, between any point or points in the United States, and any point or points in the People’s Republic of China. United operates this service pursuant to its code-share arrangement with other carriers.
United currently operates these services pursuant to its code-share arrangements with Air China Limited d/b/a Air China and Shanghai Airlines Co., Ltd.
We are amending the Notice of Action Taken issued in this docket on January 11, 2008, to clarify that the exemption authority granted to United is not limited to code-share services with a single carrier. On March 10, 2006, in Docket DOT-OST-2006-24167, United requested that the Department amend its exemption authority in Docket DOT-OST-2003-16213, to the extent necessary, to also include code-share services between the U.S. and China under United’s code-share arrangement with (i) any carrier, or, alternatively; (ii) Shanghai Airlines. United’s request in Docket DOT-OST-2006-24167 was unopposed, and United served the incumbent carriers with its application in both dockets. By our action in this amended Notice, we are effectively granting United’s Docket DOT-OST-2006-24167 request.
By: Paul Gretch
OST-2008-0023 - Exemption - Los Angeles-San Jose del Cabo
January 22, 2008
United received non-objections from all carriers except for Delta Airlines, Continental Airlines and Horizon Airlines. Continental and Horizon are still evaluating their position with respect to this market. As the Department is aware, Delta opposes United’s application. United and Delta both agree, however, that the Department should promptly institute a carrier selection proceeding for this route.
Given the imminent availability of the right to add an additional U.S. carrier to serve LAX-SJD, and the need for carriers to engage in advance planning, the Department should not wait until the January 30, 2008, deadline date for other carriers to respond to United’s application. Rather, the Department should immediately establish a streamlined schedule for this proceeding as it has in prior cases where service opportunities would soon become available. See, e.g. Notice dated October 5, 2005 regarding U.S.-Mexico Combination and All-Cargo Service Opportunities. Further, in its Notice instituting such a proceeding, the Department should specify the minimum information it wants carriers to file with their applications for purposes of carrier selection. See, e.g., Orders 2007-11-23, Order 2007-6-15, and 2005-2-8. The Notice should also state in advance that all applications for the authority at issue will be consolidated for contemporaneous consideration and set forth all future procedural dates.
Counsel: United, Julie Oettinger and Wilmer Hale, Bruce Rabinovitz, bruce.rabinovitz@wilmerhale.com
OST-1999-5846 - Certificate - US-Mexico - Route 566
February 5, 2008
United here by supplements its pending application in Docket OST-1999-5846 for renewal and amendment of its experimental certificate of public convenience and necessity for Route 566 (US-Mexico) to include authority to carry persons, property and mail in foreign air transportation between Chicago, Illinois and Cancun, Mexico.
Additionally, United is contemporaneously advising the Department of the withdrawal of its request to include the Denver-Cozumel city-pair route segment in its Certificate. That city-pair route segment, which had been included in a previous supplement, has since become dormant. United is no longer seeking inclusion of that city-pair rouge segment in its Certificate for Route 566.
Counsel: United, Jeffrey Manley, 301-229-8571, jeffrey.manley@united.com
OST-2004-17490 - Exemption - Chicago-Cozumel
OST-2005-23496 - Chicago-Cancun Combination Service Proceeding
February 5, 2008
Appication for Renewal of Exemptions
United hereby applies for renewal of the two above-captioned exemptions from 49 U.S.C. § 411 01 authorizing it to provide scheduled combination service in foreign air transportation of persons, property, and mail between Chicago, Illinois and Cozumel, Mexico and Chicago, Illinois and Cancun, Mexico. United's exemption authority for the Chicago-Cozumel market is currently effective through April 21, 2008. United's exemption authority for the Chicago-Cancun market is currently effective through April 25, 2008.
United intends to continue its seasonal service between Chicago and Cozumel, as well as its year-round service between Chicago and Cancun.
Counsel: United, Jeffrey Manley, 301-229-8571, jeffrey.manley@united.com
OST-2004-17490 - Exemption - Chicago-Cozumel
OST-2005-23496 - Chicago-Cancun Combination Service Proceeding
OST-1999-5846 - Certificate - US-Mexico - Route 566
February 5, 2008
Re: Corrected Certificate of Service
Attached please find a Corrected Certificate of Service used for severing two pleadings filed today for United Air Lines in the referenced dockets. United has now served the pleadings on all persons at the corrected email addresses appearing on the attached list.
Counsel: United, Jeffrey Manley, 301-229-8571, jeffrey.manley@united.com
OST-2002-13320 - United - Codeshare with Asiana
OST-2003-15758 - United - Codeshare with British Midland
OST-2000-6803 - United - Codeshare with Austrian Airlines
OST-2007-28628 - United - Codeshare with Qatar Airways
OST-1999-5251 - United - Codeshare with SAS
OST-2006-24078 - United - Codeshare with TACA and LACSA
OST-2007-29353 - GoJet and Mesa - US-Canada Codesharing with Air Canada
OST-2005-23021 - Mesa - Codeshare with ANA and Austrian
OST-2006-25733 - Mesa - US-Third Country Codesharing with bmi
OST-2004-17986 - Mesa - Codesharing Statement of Authorization
OST-2007-29161 - GoJet, Mesa and Shuttle America - Qatar Airways Codeshare
OST-2007-28788 - GoJet, Mesa and Shuttle America - TACA Group Codeshare
OST-2005-22547 - GoJet - Codeshare with Star Alliance Carriers
OST-2004-17955 - SkyWest - US-Canada Codeshare with Air Canada
OST-2003-15204 - SkyWest - Codeshare with Asiana Airlines
OST-2006-23627 - SkyWest - Codeshare with bmi
OST-2003-16724 - SkyWest - Codeshare for Lufthansa German Airlines
February 6, 2008
We are in receipt of five 30-Day Notices from United each dated January 17, 2008, notifying the Department of the carrier's proposed expanded code-share services involving (1) United and various foreign carriers; (2) United's affiliate, Mesa Airlines, Inc., and various foreign carriers; (3) United's affiliate, GoJet Airlines, LLC, and various foreign carriers; (4) United's affiliate, Shuttle America Corporation, and various foreign carriers; and (5) United's affiliate, Sky West Airlines, Inc., and various foreign carriers.
We have reviewed the services proposed and have no objection to the Notices. In this regard, however, we note that no services that become newly available under the first phase U.S.-EU Air Transport Agreement can be implemented before March 30, 2008.
By: Paul Gretch
February 22, 2008
Re: Amended Codeshare Notice with Star Alliance Members
Pursuant to the blanket Statements of Authorization the Department has granted to United Air Lines, Inc. and its foreign code-share partners Air Canada (June 12, 1998, Undocketed), All Nippon Airways Co. Ltd. (August 7, 1998, Undocketed), Asiana Airlines (December 19, 2002, Docket OST-2002-13320), Austrian Airlines, Osterreichische Luftverkehrs AG (March 13, 2000, Docket OST-2000-6803), British Midland Airways Limited (December 3, 2003, Docket OST-2003-15758), Deutsche Lufthansa AG (April 9, 1998, Undocketed), Qatar Airways, Q.C.S.C. (July 19, 2007, Docket OST-2007-28628), Scandinavian Airlines System (May 24, 1999, Docket OST-1999-5251), TACA International Airlines, S.A., and Lineas Aereas Costarricenses S.A. (May 18, 2006, Docket OST-2006-24078), United hereby amends the list of code-share markets it previously filed with the Department on January 17, 2008 to add newly announced cities in which it may display the designator codes of these foreign carrier partners. These cities are:
Counsel: United, Julie Oettinger, 202-296-2370, julie.oettinger@united.com
OST-1996-1960 - Family Assistance Plans
March 11, 2008
Counsel: United, Lois Danvir
OST-1996-1131 - Certificate - US-Japan
OST-1996-1873 - Certificate - US-Japan, The Philippines, and Vietnam on Route 130
OST-1996-1248 - Certificate - US-Japan, The Philippines, and Vietnam on Route 130
March 14, 2008
Application for Renewal of Certificate for Route 130
By Order 2003-10-12, the Department last renewed United's certificate for Route 130, segments 1, 4, 6, 7, 9 and 10, authorizing United to engage in scheduled foreign air transportation of persons, property and mail between points in the United States and points in Japan, Vietnam and the Philippines. That authority was issued on October 14, 2003 for a period of five years ending on October 14, 2008. United asks that this temporary authority be renewed indefinitely or, at a minimum, for a period of an additional five years.
United currently operates service to both Japan and Vietnam. It also codeshares on services operated to those countries by its partners. United's nonstop services to Japan are operated from its US gateways of Honolulu, San Francisco, Los Angeles, Chicago, Seattle and Washington, DC. In Japan, United serves the gateways of Tokyo (Narita), Osaka (Kansai) and Nagoya. United also operates daily one-stop services to Vietnam between Los Angeles and Ho Chi Minh City, Vietnam via Hong Kong. United codeshares for traffic to and from Japan with its partner All Nippon Airways and also displays the code of US Airways on its US-Japan services. It plans to begin similar codesharing in the near future with Aloha Airlines as soon as Aloha has secured authority from the Japanese government. In Vietnam, United codeshares on services operated by ANA as well as Thai Airways International. United plans to continue these services under the renewed authority it seeks herein.
Counsel: United, Jeffrey Manley, 301-229-8571, jeffrey.manley@united.com
OST-1995-675 - Form 41 - B7 and B43
March 24, 2008
Motion to Withhold Information from Public Disclosure
Counsel: United, David Olaussen, 312-997-8069
OST-2008-0102 - Statement of Authorization - US-Turkey and Beyond Codesharing
OST-2004-19148 - Exemption - Blanket Codesharing
Filed March 11, 2008 | Issued April 17, 2008
Amendment of United's Existing Exemption Authority: Scheduled foreign air transportation of persons, property, and mail between the United States and points worldwide on a third-country code-share basis pursuant to a code-share arrangement with Turkish Airlines. United requests that this amendment be granted coextensive with the current term of its exemption in the captioned docket.
Statement of Authorization for Blanket Codeshare Authority to Permit United to: Display THY’s “TK*” designator code on flights operated by United: (1) between any point in the United States and any point in Turkey (either nonstop or via third-country intermediate points); (2) between any points within the United States in conjunction with services held out by THY between Turkey and the United States (either nonstop or via third-country intermediate points); and (3) between any point in the United States or Turkey and any point in a third country.
Statement of Authorization for Blanket Codeshare Authority to Permit THY to: Display United’s “UA*” designator code on flights operated by THY: (1) between any point in Turkey and any point in the United States (either nonstop or via third-country intermediate points); (2) between any points within Turkey in conjunction with services held out by United between the United States and Turkey (either nonstop or via third-country intermediate points); and (3) between any point in Turkey or the United States and any point in any third-country. THY already holds the requisite underlying authority to operate the subject services (see Notice of Action Taken dated August 20, 2007, in Docket OST-2005-21183).
By: Paul Gretch
OST-2004-18692 - Exemption - Denver-Cancun/Puerto Vallarta
April 21, 2008
Application for Renewal of an Exemption
United seeks renewal of its exemption authorizing it to provide scheduled foreign air transportation of persons, property and mail between Denver, CO and Cancun and Puerto Vallarta, Mexico. United plans to continue to operate services in these city pairs year-round, with daily service in both markets throughout the peak winter season (December-April) and less than daily in the remainder of the year. United will operate its services from its hub at Denver International Airport. United and United Express serve over 135 points from Denver with over 400 daily departures, offering connection opportunities to Cancun and Puerto Vallarta from points throughout its system. The U.S.-Mexico bilateral agreement permits the designation of three U.S. carriers to serve the Denver-Cancun and Denver-Puerto Vallarta city pairs. Currently, one other U.S. carrier (Frontier) is operating service in these city pairs. Renewal of United's exemption will leave at least one designation unallocated should another carrier wish to enter either of these markets. Renewal of United's exemption will serve the public interest as it will enable United to continue to stimulate passenger travel and provide valuable service options to consumers in these two transborder city pairs.
United, Jeffrey Manley, 301-229-8571
OST-2008-0157 - Frequency Allocation - US-Russia
May 6, 2008
Application for a Frequency Allocation
United applies for an allocation of seven weekly frequencies under the US-Russia Air Services Agreement to operate daily scheduled nonstop combinations services between Washington, DC and Moscow, Russia. United will operate its Washington-Moscow service from its hub at Washington Dulles International Airport. In Moscow, United will serve Domodedovo Airport.
United is already authorized to operate services between Washington and Moscow under its Certificate of Public Convenience and Necessity for Route 603.
United proposes to start its daily nonstop service between Washington and Moscow on October 26, 2008. It will initially use B767-300 equipment from its existing fleet configured with 193 seats (10F 32C 151Y). The schedule is as follows:
Counsel: United, Jeffrey Manley, 301-229-8571, jeffrey.manley@united.com
OST-2008-0157 - Frequency Allocation - US-Russia
May 7, 2008
American does not object to United's request, provided that the Department simultaneously grants our application, filed today in OST-2007-0021, for allocation of one additional frequency for Chicago-Moscow service effective next spring.
In its application, United states that "according to information from the Department, there are currently 15 frequencies still remaining for allocation. The grant of United's request will, therefore, leave an additional eight frequencies unallocated."
There are ample frequencies available to meet the requests of American and United, and the Department should simultaneously grant both applications.
Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com
OST-2008-0157 - United Air Lines - US-Russia Frequency Allocation
OST-2007-0021 - American Airlines - Allocation of Six Weekly Combinaiton Frequencies - Chicago-Moscow
May 8, 2008
Consolidated Answer of Aeroflot Russian Airlines
Aeroflot does not dispute that the United and American requests are consistent with the Agreement. However so are the applications for code-share authority filed by Aerotlot and Northwest Airlines, Inc. on October 13, 2006 in OST-2006-26106; by Aerotlot and Continental Airlines, Inc. on October 31, 2006 in OST- 2006-26257; and by Aerotlot and Delta Airlines, Inc. on January 3, 2007 in OST-2007-26805. Each ofthose code-share applications remains pending before the Department.
The bilateral code-share authority requested in each ofthe three code-share applications would be at least as consistent with the U.S.-Russia Air Transport Agreement as the services proposed by United and American. Given the eighteen months that have elapsed since submission of the code-share applications submitted by Aerotlot and Northwest and by Aeroflot and Continental and the sixteen months that have elapsed since submission of the code-share application submitted by Aeroflot and Delta, Aeroflot respectfully submits that the Department should approve the long pending applications for authority to code-share with Northwest, Delta, and Continental before acting on United and American's more recently filed applications.
Counsel: Garofalo Goerlich, Don Hainbach, 202-776-3976
OST-2008-0157 - United Air Lines - US-Russia Frequency Allocation
May 12, 2008
This is to advise you that, pursuant to a polling, United has determined that none of the carriers served with United's referenced application for seven additional U.S.‑Russia frequencies will object to that application.
One carrier, Baltia Air Lines, Inc., urged that United's frequencies not remain "in effect for an indefinite period [to be] available to other carriers who wish to provide service, if United is not operating on those frequencies." The Department relies upon dormancy conditions, rather than temporary allocations, to accomplish the goal stated by Baltia. United has consented to the imposition of dormancy conditions on the seven new frequencies. To the extent that Baltia may be referring to United's existing allocation of seven frequencies, for which dormancy conditions have been waived, it should submit its comments in OST-1996‑1672.
American has applied for one additional frequency to start an additional weekly service next summer and urges that grant of United's allocation not delay the allocation of that frequency to American. Grant of United's application will leave eight frequencies unallocated, one of which will be available for the allocation that American is seeking. In these circumstances, United urges the Department to grant United's unopposed application for seven additional frequencies without further delay and without awaiting the answer date of May 21, 2008. United urgently needs this authority to begin marketing these services immediately.
Counsel: United, Jeffrey Manley, 301-229-8571
OST-2008-0157 - United Air Lines - US-Russia Frequency Allocation
OST-2007-0021 - American Airlines - Allocation of Six Weekly Combination Frequencies - Chicago-Moscow
May 10, 2008
Re: Combined Answer of Baltia Air Lines
Baltia opposes United’s application for an additional 7 frequencies and American’s application for an additional one frequency on the grounds that United does not need additional frequencies and American is banking the frequency, not intending to use it for more than a year. In principal, Baltia opposes the holding of frequencies for an indefinite period.
Baltia has no opposition to United commencing daily scheduled nonstop service between Washington, D.C., and Moscow provided it uses the seven frequencies it has been holding unused for the past 13 years, provided further that if United does not commence operations on the stated date, those frequencies held for past 13 years expire for dormancy.
Baltia has no opposition to American reapplying next year for a frequency to increase its service but applying more than one year prior to initiating an increase of one day’s service seems unreasonable. It appears that American may be concerned that there may not be a frequencies available next year.
Obviously, U.S. airlines have not developed the U.S.-Russia market. The benefit and value of the Russian market have gone to foreign carriers. If frequencies are neither used nor available, U.S. carriers will not be the ones who develop, and enjoy the benefits of, the market in the future.
Baltia has overcome odds in raising the capital for a start-up airline to enter this market. After having established its initial operations, Baltia has an interest to develop daily service to St. Petersburg, daily service to Moscow and to other cities in Russia. Baltia does not want to be precluded from developing this market because carriers have banked the US-Russia frequencies. The Department of Transportation is the depository of frequencies, not private carriers. The Department’s stated policy is to use frequencies or loose them.
Counsel: International Business Law Firm, Steffanie Lewis, 202-296-1111, slewis@iblf.com
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-2008-0181 - 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-2008-0181 - 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-2008-0181 - 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