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OST-96-1182

Yugoslov Airlines - JAT

OST-96-1182 & 96-1183 | May 22, 1997

Letter from Senior Deputy Asst for European and Canadian Affairs, US Dept of State, to Paul Gretch - Dated May 2, 1997

Requests that the processing of the JAT application for air service to the US continue to be held in abeyance on foreign policy grounds until further notice.

By: Rudolf V. Perina

Jugoslovenski Aerotransport

Immediately prior to the May 1992 suspension of services, JAT was providing daily nonstop service between points in Yugoslavia and New York (JFK) and four flights per week to Chicago (ORD), using DC-10-30 equipment. JAT also conducted public charter flights with this same type aircraft between major U.S. cities and points to serve large populations of Yugoslav ethnic origin.

In this Second Amended Exemption Application, JAT requests authority to resume scheduled services using 271-seat DC-10-30 aircraft, beginning on May 14, 2001. JAT will offer only three Belgrade originations per week in the initial year of operations, serving New York (JFK) on a nonstop basis. In addition, JAT requests public charter authority for flights between points in the U.S. and points in Yugoslavia.

JAT would operate only a very limited number of such public charter operations during the year, depending on equipment availability. Such flights would primarily serve the same Yugoslav ethnic communities in several major U.S. cities that JAT has previously served. As with previous passenger charters, JAT requests the right to commingle, on the same aircraft, passenger charter traffic originating in the U.S. with passenger charter traffic originating in Yugoslavia.

The applicant first begin nonstop services between Yugoslavia and the United States in 1970, starting with charter flights and followed by scheduled services in 1977. These flights continued until May, 1992, at which time they were suspended for foreign policy reasons. At that time, the applicant had some 10,000 employees at 65 offices worldwide. With the improvement in international relations following the Dayton Accords, the applicant has resumed international services, serving most major European nations, and Russia, Israel, Egypt, Greece, Jordan, Malta and other destinations. For current schedule information, please visit the applicant's web site at www.jat.com.

Counsel:  Wiley Rein, Bruce McDonald, 202.719.7000

Jugoslovenski Aerotransport

Counsel:  Wiley Rein, Bruce McDonald, 202.719.7000

Jugoslovenski Aerotransport

Counsel:  Wiley Rein, Bruce McDonald, 202.719.7000

Jugoslovenski Aerotransport

Herewith updates and otherwise amends its pending request for an exemption from 49 U.S.C. § 41301 to permit JAT to provide scheduled nonstop air transportation of persons, property and mail between Belgrade and New York (JFK) using JAT's 271-seat DC-10-30 aircraft. JAT submitted a Second Amended Exemption Application in this Docket in March 2001, which Application has not been either granted or denied. JAT maintains its desire to offer service to the United States, and the present Amended Exemption Application updates the request to cover 2002, modifies the authority requested, and provides updated supporting exhibits.

Specifically, JAT respectfully requests an exemption from 49 U.S.C. § 41301 to permit JAT to provide nonstop scheduled air transportation of persons, property and mail two times per week between Belgrade (BEG) and New York (JFK) and Chicago (ORD) using JAT's 271-seat DC-10-30 aircraft. JAT also requests U.S. -Yugoslavia passenger charter authority.  The applicant will provide two roundtrips per week, to be operated with 271-seat DC-10-30 equipment. Initially, JAT plans to offer BEG-JFK service, on Wednesday and Friday. The flights will depart BEG at 10:00 a.m., arriving JFK at 1:00 p.m., then departing JFK at 3:00 p.m., arriving BEG at 6:30 a.m. the following morning (all times are local). Following the introduction of that service, JAT plans to expand the two weekly roundtrips to include service at Chicago (ORD). The service will continue to be offered on Wednesday and Friday. The flights will depart BEG at 9:00 a.m., arriving ORD at 12:00 noon, then departing ORD at 1:00 p.m., arriving JFK at 4:30 p.m., then departing JFK at 6:30 p.m., arriving BEG at 8:30 a.m. the following morning (all times are local).

Counsel:  Wiley Rein, Bruce McDonald, 202.719.7000

August 6, 2003

OST-96-1182 - Scheduled Code-Share Service between Serbia and Montenegro and US

Fourth Amended Application for Exemption

Pursuant to 49 U.S.C. § 40109(c) and Subpart C of the Rules of Practice, Jugoslovenski Aerotransport herewith substantially amends and updates its pending request for an exemption from 49 U.S.C. § 41301 to permit JAT to provide scheduled nonstop air transportation of persons, property and mail between Belgrade and New York (JFK). JAT submitted a Third Amended Exemption Application in this Docket in March 2002, which Application has not been either granted or denied. JAT maintains its desire to offer service to the United States, and the present Fourth Amended Exemption Application updates the request to cover 2003, modifies the authority requested, and provides certain updated supporting exhibits.

JAT's Third Amended Application sought authority to provide nonstop scheduled air transportation of persons, property and mail two times per week between Belgrade (BEG) and New York (JFK) and Chicago (ORD) using JAT's 271-seat DC-10-30 aircraft. JAT also requested U.S. - Yugoslavia passenger charter authority. The present Fourth Amended Application requests an exemption from 49 U.S.C. § 41301 that is narrower in scope.

First. JAT now seeks authority only to provide nonstop scheduled air transportation of persons, cargo and mail two times per week between Belgrade (BEG) and New York (JFK). Second, JAT seeks such authority only on a code-share operation basis, where the flights are operated by Uzbekistan Airways using its crew and Boeing 767 aircraft. JAT respectfully requests that such scheduled service authority be granted as soon as possible, in order that JAT may hold out2 and take reservations for the scheduled flights commencing as early as September 14, 2003 and continue under such authority until September 13, 2004, or until final action on JAT's Application for Foreign Air Carrier Permits, pending in Docket OST-96-1183, whichever is earlier.

Exhibit 03-1: List Indentify Key JAT Management Personnel
Exhibit 03-2: JAT Balance Sheet and Profit and Loss Statement for 2002
Exhibit 03-3: Certification

Counsel: Wiley Rein, Bruce McDonald, 202-719-7000

August 8, 2003

OST-96-1182 - Scheduled Code-Share Service Between Serbia and Montenegro and US

Answer of United Air Lines

United has an immediate interest in serving Belgrade, Yugoslavia pursuant to its code-share arrangement with Lufthansa German Airlines. To this effect, United filed today with the Government of Serbia and Montenegro to implement daily code-share services with Lufthansa via Munich. See Exhibit B. Under these circumstances, United supports approval of JAT's application so long as the government of Serbia and Montenegro first approves United's application to implement its code-share service with Lufthansa. Based on United's experience in this regard, United urges the Department to await explicit assurance that United's code-share application has been approved before approving JAT's

By: United, Michael Whitaker

OST-96-1182 - Exemption - Scheduled Codeshare Service Serbia and Montenegro-US

August 20, 2003

Supplemental Answer of United Air Lines

The government of Serbia and Montenegro notified United on August 18, 2003, that it has approved the carrier's proposed code share with Lufthansa on Munich-Belgrade flights but only for the Summer Season 2003. In view of Serbia's approval, United urges the Department to approve JAT's application consistent with the principles of comity and reciprocity. Further, United recommends that the Department limit the authority it grants to JAT to no more than a one year period, given the short term-nature of United's approval by the government of Serbia and Montenegro.

Counsel: United, Michael Whitaker

OST-96-1182 - US-Yugoslavia

Filed August 6, 2003 | Issued October, 2003

Notice of Action Taken | Word

Exemption authority from 49 U.S.C. § 41301 to engage in scheduled foreign air transportation of persons, property and mail between Belgrade, Serbia, on the one hand, and New York, New York, on the other hand. JAT would conduct these services only by code-share with Uzbekistan Airways. JAT may not conduct U.S. operations with its own aircraft and crews without further order of the Department.

Numerous pleadings have been filed in this docket since March 1996. However, following JAT's most recent amendment, only United Air Lines, Inc. filed comments in response to JAT's request. United supports grant of JAT's request stating that on August 18, 2003, the Government of Serbia and Montenegro notified United that its request to serve Belgrade pursuant to its code-share arrangement with Lufthansa German Airlines had been approved for one year. United urges us to grant JAT's request for a similar term.

On October 2, 2003, we also granted a request by Uzbekistan Airways to display the designator code of Jugoslovenski Aerotransport (JTJ*) on Uzbekistan Airways' flights between Tashkent, Uzbekistan and New York (JFK), via Belgrade, Serbia. See Docket OST-2003-15879. The Republic of Serbia, together with the Republic of Montenegro, is a constituent part of The State Union of Serbia and Montenegro.

By: Paul Gretch

OST-96-1182 - Exemption - Belgrade-New York/Chicago

September 24, 2004

Application for Renewal of Exemption Authority

Hereby applies for renewal of the exemption from 49 U.S.C. § 41301 granted on October 2, 2003 which authorizes JAT to provide scheduled nonstop air transportation of persons, property and mail between Belgrade and New York (JFK). Specifically, this exemption authorizes JAT to provide nonstop scheduled air transportation of persons, cargo and mail two times per week between Belgrade (BEG) and New York (JFK), but authority only on a code-share operation basis, where the flights are operated by Uzbekistan Airways using its crew and Boeing 767 aircraft.

Uzbekistan Airways holds DOT permit authority to provide such BEG-JFK service. See Order 98-10-18 (Oct. 19, 1998). DOT issued a statement of authorization to implement the Uzbekistan Airways-JAT code-share agreement on October 2, 2003 in Docket OST-2003-15879.

Counsel: Wiley Rein, Bruce McDonald, 202-719-7000

OST-96-1182 - US-Yugoslavia

October 7, 2004

Answer of United Air Lines

The U.S. Government has scheduled bilateral air service negotiations with the Government of Serbia and Montenegro for October 12‑13, 2004 in Washington, D.C. The U.S. objective for the negotiations is to achieve an open skies agreement that, among other things, would allow designated carriers of each Party to hold out same‑country and third‑country code‑share services on an unrestricted basis, consistent with the terms of the model U.S. open skies agreement. United currently holds out third‑country code­ share service between the United States and Belgrade via Munich in conjunction with Lufthansa and may wish to pursue additional U.S.‑Serbia/Montenegro service opportunities in the future.

United is not seeking to obstruct JAT's ability to continue to hold out its current BEL-JFK service. In order to ensure that the United States does not forfeit valuable leverage in its negotiations with Serbia/Montenegro, however, United requests that the Department defer action on JAT's exemption renewal application until the current negotiation process is complete and the Serbian/Montenegran Government has entered into an unconditional open skies agreement with the United States. If, at the end of that process, the Serbian/Montenegran Government is unwilling to enter into such an agreement, United proposes that the Department nonetheless grant JAT's renewal application, but limit the duration of any such renewal to a period of 180 days or less.

Counsel: Wilmer Cutler, Bruce Rabinovitz, 202-663-6960, bruce.rabinovitz@wilmerhale.com

OST-96-1182 - Belgrade-New York/Chicago

January 14, 2005

Substitute Application for Exemption Authority

JAT's plan for 2005-2006 scheduled service differs from the operation the Department approved in 2003 only in that JAT would (i) replace its 2003-2004 code-share partner with a new commercial relationship established under the contemplated wet lease, (ii) expand its service to include Chicago, and (iii) increase services at New York by one round trip per week. In that context, JAT respectfully submits that the Department's findings quoted above support granting the present application.

JAT plans scheduled service to begin on May 1, 2005. Between May 1, 2005 and September 30, 2005, JAT will offer three roundtrip BEG-JFK flights per week, on Tuesday, Friday, and Sunday, using wet-leased B767-200 aircraft configured to provide 204 economy class seats and 12 business class seats. The flights will depart BEG at 11:30 a.m., arriving JFK at 3:30 p.m., then departing JFK at 6:00 p.m., arriving BEG at 9:00 a.m. the following morning (all times are local). Between October 1, 2005 and April 30, 2006, only two roundtrips per week will be offered, on Friday and Sunday.

In addition, between May 1, 2005 and September 30, 2005, JAT will offer three roundtrip BEG-ORD scheduled service flights per week, on Monday, Thursday, and Saturday, using wet-leased B767-200 aircraft configured to provide 204 economy class seats and 12 business class seats. The flights will depart BEG at 10:30 a.m., arriving at ORD at 3:30 p.m., then departing ORD at 6:00 p.m., arriving BEG at 9:00 a.m. the following morning (all times are local). Between October 1, 2005 and April 30, 2006, only two roundtrips per week will be offered, on Thursday and Saturday.

Counsel: Wiley Rein, Bruce McDonald, 202-719-7000, bmcdonald@wrf.com

OST-96-1182 - Belgrade-New York/Chicago

January 31, 2005

Answer of United Air Lines

Because JAT has requested that the exemption be made effective from May 1, 2005, JAT would not be adversely affected if the Department were to defer action on JAT's application until at least April 2005. The intervening months should afford the two governments sufficient time in which to secure an open skies agreement, particularly if JAT' s understanding about the current status of the intergovernmental consultation process is accurate. If the Serbian/Montenegran Government is unwilling to enter into such an agreement within that timeframe, United would propose that the Department nonetheless grant JAT's application, but limit the duration of any approval to a period of 180 days or less.

By doing so, the Department would prevent JAT from invoking a right of automatic extension for the authority, thereby requiring JAT to apply for, and receive from the Department, further authority before the end of that 180-day (or lesser) period in order to continue to operate to and from the United States after the authority's expiration date. Such a measure would afford the Department an opportunity to reassess the state of the U.S.-Serbia/Montenegro bilateral aviation relationship before granting JAT any further authority and, if necessary, to withhold such further authority if comity and reciprocity would not support it or if progress toward achieving full open skies between the two countries were less than satisfactory.

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

OST-96-1182 - Belgrade-New York/Chicago

Filed January 14, 2005 | Issued February 23, 2005

Notice of Action Taken | Word

Exemption authority from 49 U.S.C. § 41301 to engage in scheduled foreign air transportation of persons, property and mail between Belgrade, Serbia, on the one hand, and New York, New York, and Chicago, Illinois, on the other hand. JAT Airways would conduct these services pursuant to a wet lease arrangement with a duly authorized and properly supervised U.S. or foreign air carrier.

By: Paul Gretch

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