Home | Search | Help
OST by Number | OST by Order | OST by Carrier | OST by Subject | OST by Day
OIA by Carrier/Subject | OIA by Day | FAA by Number | FAA by Subject | FAA by Day
Carrier Financials | Charter Office | Answer/Reply Calendar

OST-1996-1379

Challenge Air Cargo, Inc. (Exemption Renewal, Miami-Caracas)

OST-96-1379 | April 6, 1998

Application for Renewal of an Exemption

Challenge presently operates three weekly flights in the Miami-Caracas market and intends to continue operating the service.

Answers are due by April 21, 1998

Service List

Counsel:  Zuckert Scoutt, William Callaway, 202-298-8660

OST-96-1379 | Filed April 6, 1998 | Action Taken June 24, 1998

Notice of Action

Scheduled foreign air transportation of property and mail between (1) Miami, Florida, the intermediate point San Juan, Puerto Rico, and Caracas, Venezuela; and (2) Miami, Florida, and the coterminal points Valencia and Maracaibo, Venezuela, and to integrate this authority with its existing exemption and certificate authority.

Applicant Rep.: William Calloway, 202.298.8660

United Parcel Service Co. and Challenge Air Cargo, Inc.

We tentatively find that the route transfer meets our standards for approval. Specifically, the introduction of UPS' service will provide new service options to the shipping public, more fully use our bilateral route opportunities and enhance competition in the U.S.-Latin America all-cargo market. In these circumstances, we tentatively conclude that approval of the transfer will benefit the public and will not conflict with our international aviation objectives.

We also tentatively find that both carriers will remain fit to provide their authorized services and that the transfer of Challenge's Latin America route authority to UPS will have a positive impact on the viability-of both carriers- Challenge will benefit from the, infusion of new capital to support its future plans. UPS will benefit from the ability to expand its operations to new markets, improving its competitive posture. The improvement in each carrier's viability will enable each carrier to compete more effectively and thereby enhances competition in the airline industry. 

Furthermore, we tentatively find that there will be a positive impact on the U.S. trade position in the international air transportation market as a result of this transfer. Since UPS has a much more extensive route network and worldwide infrastructure than Challenge, UPS will able to provide more effective competition to both foreign carriers and other U.S. carriers in the U.S.-Latin America market. In these circumstances, air commerce between the United States and Latin America should increase, improving the U.S. trade position.

By:  Bradley Mims

Counsel:  Zuckert Scoutt, William Callaway, 202-298-8660

United Parcel Service Co. and Challenge Air Cargo, Inc.

We have decided to make final our tentative decision in Order 2000-3-2 to approve the transfer of Challenge's Latin America authority to UPS and also to grant Challenge an interim exemption to permit it to continue operating its existing services until UPS is prepared to begin its own operations in the transferred markets.  The record in this proceeding shows that UPS is hiring 90% of the Challenge employees. Moreover, as we noted in our show-cause order, the expansion of UPS' services into Latin America will create jobs, having an overall positive impact on airline workers. Furthermore, it is clear from the record of this proceeding that collective bargaining provisions are in Place to address employment issues and, as noted by the IBT, additional supplemental agreements also have been presented to the pilots relevant to these issues. In this regard, the IBT has stated that supplemental agreements provide an additional two million dollars in separation benefits.

By: Bradley Mims

Counsel:  Zuckert Scoutt, William Callaway, 202-298-8660

Challenge Air Cargo, Inc. and United Parcel Service Co.

Scheduled foreign air transportation of property and mail between (1) Miami, Florida, the intermediate point San Juan, Puerto Rico, and Caracas, Venezuela; and (2) Miami, Florida, and the coterminal points Valencia and Maracaibo, Venezuela. UPS also requests authority to renew its authority to combine this exemption with UPS' existing certificate and exemption authority.

The aviation agreement between the United States and Venezuela does not provide for coterminalization of Caracas and Maracaibo. These points may only be served as separate terminal points.

By:  Paul Gretch

UPS is currently operating in the Miami-Venezuela market. UPS continues to be a U.S. citizen and is fit, willing and able to provide the above-described transportation. See, e.g., Order 2002-7-31, Docket OST-99-6389, May 21, 2002. UPS requests that the renewal be granted for a period of five years.

Counsel:  Kelley Drye, David Vaughan, 202.955.9792, dvaughan@kelleydrye.com 

Scheduled foreign air transportation of property and mail between (1) Miami, Florida, the intermediate point San Juan, Puerto Rico. and Caracas. Venezuela: and (2) Miami, Florida, and the coterminal points Valencia and Maracaibo, Venezuela.  The route integration authority granted UPS is subject to the condition that any service provided under this exemption shall be consistent with all applicable agreements between the United States and the foreign countries involved.  The aviation agreement between the United States and Venezuela does not provide for coterminalization of Caracas and Maracaibo, These points may only be served as separate terminal points.

By: Paul Gretch

December 15, 2004

Application for Renewal of Exemption Authority

Hereby applies for renewal of its exemption authorizing UPS to engage in the scheduled foreign air transportation of property and mail between Miami, Florida and Caracas, Venezuela; via the intermediate point, San Juan, Puerto Rico, and between Miami, Florida and the terminal points Valencia and Maracaibo, Venezuela.

UPS is currently operating regularly scheduled all-cargo service in the Miami-Venezuela market.

Counsel: UPS and Kelley Drye, David Vaughan, 202-955-9792, dvaughan@kelleydrye.com

Filed December 15, 2004 | Issued June 20, 2006

Notice of Action Taken | Word

Scheduled foreign air transportation of property and mail between (1) Miami, Florida and Caracas, Venezuela, via the intermediate point San Juan, Puerto Rico, and (2) Miami, Florida, and the coterminal points Valencia and Maracaibo, Venezuela, and to integrate this authority with its existing certificate and exemption authority.

By Order 2006-1-1, the Department awarded the carrier a blanket route integration certificate.

By: Paul Gretch

March 19, 2008

Application for Renewal of Exemption Authority

UPS hereby applies for renewal of its exemption authorizing UPS to engage in the scheduled foreign air transportation of property and mail between Miami, Florida and Caracas, Venezuela; via the intermediate point, San Juan, Puerto Rico, and between Miami, Florida and the terminal points Valencia and Maracaibo, Venezuela.

The authority was most recently renewed by the Department in a Notice of Action Taken, dated June 20, 2006, in the captioned docket, for a period of two years, through June 20, 2008. UPS requests that the renewal be granted for a period of at least two years. UPS is currently operating regularly scheduled all-cargo service in the Miami-Venezuela market.

Counsel: Kelley Drye, David Vaughan, 202-342-8462, dvaughan@kelleydrye.com

Home | Search | Help
OST by Number | OST by Order | OST by Carrier | OST by Subject | OST by Day
OIA by Carrier/Subject | OIA by Day | FAA by Number | FAA by Subject | FAA by Day
Carrier Financials | Charter Office | Answer/Reply Calendar