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OST-1997-2447

http://www.continental.com/


Continental Airlines, Inc.

OST-1997-2447 - US-Ecuador Frequencies

May 5, 1997

Application for Renewal of Frequency Allocation

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Continental urges the Department to renew its current allocation of fourteen weekly U.S.-Ecuador frequencies for its Newark-Panama City-Guayaquil and Newark-Bogota-Quito services.

Service List 

Answers are due by May 20, 1997

Counsel:  Continental and Crowell Moring, Bruce Keiner, 202-624-2500 



May 21, 1997

Supplement No. 1 to Application for Renewal of Frequency Allocation

Continental supplements its unopposed application to renew its present allocation of fourteen weekly New York/Newark-Ecuador roundtrip frequencies for a two-year period, to clarify that the renewal request applies also to Continental's Newark-Bogota-Quito and Newark-Panama City-Guayaquil exemption authority. Additionally, Continental requests a waiver of the 60-day advance filing requirements under Part 377 as they relate to the pending application.

Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2500



June 25, 1997

Notice of Action

Scheduled foreign air transportation of persons, property, and mail between NewYork/Newark and Guayaquil, Ecuador, via Panama City, Panama.

Allocation for two years of 7 weekly combination New York-Ecuador frequencies XX Exemption for two years under 49 U.S. C. 40109 to provide the following service: Scheduled foreign air transportation of persons, property, and mail between NewYork/Newark and Quito, Ecuador, via Bogota, Colombia, as last authorized by Notice of Action Taken dated February 14, 1996

By: Paul Gretch / Counsel: Steven Mirmina, 202-624-2500



Order 1997-7-33

Issued July 30, 1997 | Served August 5, 1997

Order



OST-97-2447 April 22, 1999 pdficon.gif (881 bytes)Application for Renewal of Frequency Allocation and Exemptions US-Ecuador Frequencies
    Service List  

Continental is currently operating seven weekly frequencies between New York/Newark and Quito via Bogota and seven weekly frequencies between New York/Newark and Guayaquil via Panama City. Continental's original exemption authority and frequency allocations for New York/Newark-Quito via Bogota and New York/Newark-Guayaquil via Panama City were granted by a Notice of Action Taken dated February 14, 1996 and by Order 96-7-4, respectively. The exemption authority and frequency allocations for both routes were renewed for a two-year period by Order 97-7-33.

Counsel:  Continentl and Crowell Moring, Bruce Keiner, 202-624-2615



OST-97-2447 Filed April 22, 1999
Issued May 10, 1999
pdficon.gif (881 bytes)Notice of Action Taken New York/Newark-Guayaquil via Panama City; New York/Newark-Quito via Bogota

Scheduled foreign air transportation of persons, property, and mail between (1) New York/Newark and Guayaquil, Ecuador, via Panama City, Panama, and (2) between New York/Newark and Quito, Ecuador, via Bogota, Colombia.  Renew allocation of 14 weekly combination New York-Ecuador frequencies to operate the above service (7 frequencies in each market)

By:  Paul Gretch



OST-97-2447 February 23, 2001 Application for Renewal of Frequency Allocation and Exemptions U.S.- Ecuador Frequencies
    Service List  

Continental is currently operating seven weekly frequencies between New York/Newark and Quito via Bogota and seven weekly frequencies between New York/Newark and Guayaquil via Panama City. Continental's exemption authority and frequency allocations for New York/Newark- Quito via Bogota and New York/Newark- Guayaquil via Panama City were originally granted by Notice of Action Taken dated February 14, 1996 and by Order 96-7-4, respectively. The exemption authority and frequency allocations for both routes were most recently renewed by Notice of Action Taken dated May 10, 1999, and, absent renewal, they will expire on May 10, 2001.

Counsel:  Crowell Moring, Bruce Keiner, 202.624.2615, rbkeiner@cromor.com



OST-97-2447 Filed February 23, 2001
Issued March 15, 2001
Notice of Action Taken U.S.- Ecuador Frequencies

By:  Paul Gretch



OST-97-2447 January 8, 2003 Application for Renewal of an Exemption US-Ecuador Frequencies

Continental currently operates daily service between New York/Newark and Quito via Bogota and between New York/Newark and Guayaquil via Panama City. Continental's original exemption authority and frequency allocations for New York/Newark-Quito via Bogota and New York/Newark­ Guayaquil via Panama City were granted by Notice of Action Taken dated February 14, 1996 and by Order 96-7-4, respectively.  By sustaining its present New York/Newark­Ecuador service, Continental will continue to provide significant inter-gateway competition with American's Miami-Ecuador service.

Counsel:  Continental and Crowell Moring, Bruce Keiner, 202-624-2500



December 19, 2005

Application for Waiver of Dormancy Conditions

Continental requests a waiver of the dormancy conditions applied to seven U.S. -Ecuador frequencies awarded to it for New York/Newark-Quito service until December 15, 2006, so Continental can restore its New York/Newark-Quito flights when they can be operated on an economic basis starting with the peak December 2006 travel season.

Continental holds seven weekly U.S.-Ecuador combination frequencies for New York/Newark-Quito service, and Continental currently offers daily New York/Newark-Panama City-Quito service. Although Continental will continue to offer daily nonstop New York/Newark-Panama City service, Continental plans to suspend operations on the Panama City-Quito sector on January 25, 2006.

In light of extraordinarily high fuel prices, burdensome tax structures and economic uncertainties, Continental is continuing to evaluate all of its schedules to match demand with capacity and frequency requirements on a sound, economic basis. In this instance, Continental requires a waiver of the dormancy requirements with respect to all seven of its New York/Newark-Quito frequencies so Continental can provide appropriate schedules in light of economic and marketing conditions on U.S.-Ecuador routes, including Ecuador's refusal to allow codesharing on Continental's U.S.-Ecuador flights. Since unused frequencies remain available for other airlines to serve Ecuador from U.S. gateways other than Miami, Continental's waiver will not preclude additional operations by other U.S. airlines.

Counsel: Continental, Thomas Bolling, 713-324-5606, thomas.bolling@coair.com



Janaury 3, 2006

Answer of Delta Air Lines

Delta does not oppose Continental's request for a dormancy waiver provided that Delta's application filed today for seven U.S.-Ecuador frequencies is granted in full. Delta proposes to use seven frequencies for daily Atlanta -Quito/Guayaquil service, beginning on or about June 1, 2006. Since there are eight currently available unallocated frequencies. However, should carrier selection proceedings become necessary for any reason, Continental's dormant frequencies should be placed at issue.

Counsel: Delta and Hogan & Hartson, 202-637-4999, recohn@hhlaw.com



Filed January 8, 2003 | Waiver Filed December 19, 2005 | Issued February 7, 2006

Notice of Action Taken | Word

Scheduled air transportation of persons, property and mail (1) between New York/Newark and Quito, Ecuador, via Bogota, Colombia and (2) between New York/Newark and Guayaquil, Ecuador, via Panama City, Panama.

By a Notice of Action Taken, Continental was awarded an allocation of seven weekly U.S.-Ecuador combination frequencies to provide scheduled service between New York/Newark and Quito, Ecuador. The allocation is subject to a dormancy condition, whereby if a carrier discontinues service for 90 days, the allocation as to that frequency will, absent the grant of a waiver by the Department, expire automatically and the frequency will revert to the Department for reallocation.  On December 19, 2005, Continental filed an application for a waiver of the dormancy condition through December 15, 2006, since it plans to suspend this service for the period January 25-December 15, 2006.  Continental states that in light of high fuel prices, burdensome tax structures and economic uncertainties, it is evaluating all of its schedules to match demand with capacity requirements on an economic basis.  Continental further states that unused frequencies remain available for other airlines to serve Ecuador from U.S. gateways other than Miami.

Delta Air Lines, Inc. filed an answer stating that it has an application pending before the Department for exemption authority to provide service between Atlanta and Quito/Guayaquil, and also for the award of seven U.S.-Ecuador frequencies to offer this service.  Delta states that its application and Continental’s request for a dormancy waiver do not appear to be mutually exclusive and it does not oppose Continental’s request as long as Delta’s application for a frequency award is granted.

By: Paul Gretch



OST-1997-2447 - US-Ecuador Frequencies
OST-2004-16941 - Ecuador Combination Frequencies

October 6, 2006

Application for Re-Allocation of Frequencies

Continental has been analyzing its Houston and New York/Newark-Ecuador service patterns to optimize its Ecuador service in light of strong seasonality and traffic variations from market to market. To provide Continental the flexibility it requires to maximize the effectiveness of its Ecuador service, Continental asks the Department to: (1) allow Continental to use seven of the 14 frequencies it holds for Houston-Ecuador service on a seasonal basis on either the Houston-Quito or Houston-Guayaquil routes, (2) award Continental an additional frequency for seasonal Houston-Ecuador service on either route, and (3) allow Continental to use two of its New York/Newark-Guayaquil frequencies on a seasonal basis.

If the seasonal authority requested has not been granted by December 5, 2006, Continental requests a dormancy waiver for six of its Houston-Guayaquil frequencies and two of its New York/Newark-Guayaquil frequencies until December 20, 2006.

Continental is returning to the Department for re-allocation the seven frequencies awarded to it for New York/Newark-Quito service.

Continental currently holds 14 frequencies for Houston-Ecuador service, awarded by Notices of Action Taken dated February 20, 2004, Docket OST-2004-16941, and by Order 2000-8-19. Continental intends to continue providing daily nonstop roundtrip service between Houston and Quito, and it seeks the flexibility to provide supplementary Houston-Quito flights from time to time on a seasonal basis. Continental also intends to continue providing nonstop Houston-Guayaquil service subject to seasonal variations depending on demand. To maximize Continental's flexibility to meet market demand for Houston-Ecuador service, Continental asks the Department for approval to use seven of its 14 Houston-Ecaudor frequencies to serve either the Houston-Quito or Houston-Guayaquil routes on a seasonal basis and asks the Department to award it the one remaining non-Miami/New York frequency available to use on either Houston-Ecuador route on a seasonal basis.

Counsel: Crowell & Moring, Bruce Keiner, 202-624-2615, rbkeiner@crowell.com



OST-1997-2447 - US-Ecuador Frequencies
OST-2004-16941 - US-Ecuador Combination Frequencies

October 23, 2006

Answer of American Airlines

Hereby answers the application submitted on October 6, 2006 by Continental Airlines, Inc. American opposes Continental's request that seven of its 14 frequencies for Houston-Ecuador be permanently converted from year-round to seasonal use.

In a limited entry market such as U.S.-Ecuador, carriers should not be authorized on a permanent basis to use frequencies for seasonal-only service, leaving them dormant for part of the year. Although American has no immediate plans to increase its flights to Ecuador, we may be interested in seeking additional frequencies in the future. If the Department were to permanently convert Continental's authority to seasonal use, that could block competing carriers from using these frequencies on a year-round basis.

While we oppose Continental's request for permanent transformation of frequencies from year-round to seasonal, we would not object to the issuance of discrete short-term waivers of the dormancy condition applicable to Ecuador frequencies, provided that any such waivers would end - and the frequencies would be subject to re-allocation - when another carrier applies to conduct year- round Ecuador operations.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com



OST-1997-2447 - US-Ecuador Frequencies
OST-2004-16941 - Ecuador Combination Frequencies

November 1, 2006

Reply of Continental

Since "American has no immediate plans to increase its flights to Ecuador" and Continental is already returning the seven Ecuador frequencies it has been using for New York/Newark-Quito service to the Department for re-allocation, the current supply of Ecuador frequencies exceeds the demand for them. American has objected to the permanent conversion of seven Continental Houston-Ecuador frequencies to seasonal, and Continental is willing to accept a one year limitation on the conversion of four Houston-Ecuador frequencies while it continues to evaluate service options for the Ecuador market. Since four of Continental's Houston-Ecuador frequencies have already been converted to seasonal use on a permanent basis, Continental does not require further action to convert those frequencies to seasonal use. (see Notice of Action Taken, Docket OST-2004-16941, November 17, 2004) Continental has requested one additional seasonal frequency for Houston-Ecuador service, so Continental requires allocation of only four Houston-Ecuador frequencies for seasonal use at this time: three frequencies already held plus one new frequency. With a year of further experience with U.S. Ecuador operations, Continental should be in a position to request further seasonal relief for these four frequencies at the end of the one year period, operate the frequencies year-round, or return some or all of the frequencies for re-allocation as it has just done with seven of its New York-Ecuador frequencies.

Neither American nor any other party has objected to Continental's request for flexibility to use seven of its 14 Houston-Ecuador frequencies on either the Houston-Quito or Houston-Guayaquil routes, its request for an additional frequency for Houston-Ecuador service, its request to use two of its New York/Newark- Guayaquil frequencies on a seasonal basis, or its request for a temporary dormancy waiver for six of its Houston-Guayaquil frequencies and two of its New York/Newark-Guayaquil frequencies until December 20, 2006, if the seasonal conversion requested has not taken place prior to December 6, 2006.

Counsel: Crowell & Moring, Bruce Keiner, 202-624-2615, rbkeiner@crowell.com



OST-1997-2447 - US-Ecuador Frequencies
OST-2004-16941 - Ecuador Combination Frequencies

Filed October 6, 2006 | Issued November 27, 2006

Notice of Action Taken | Word

OST-1997-2447: Continental holds 14 frequencies for New York/Newark-Ecuador service, seven for New York/Newark-Quito and seven for New York/Newark-Guayaquil. Continental states that it has been analyzing its New York/Newark-Ecuador service patterns to optimize its Ecuador service in light of strong seasonality and traffic variations from market to market. In this regard, Continental is returning to the Department its seven New York/Newark-Quito frequencies. (Continental states that it has discontinued New York/Newark-Quito service.) It is also requesting authority to use two of its seven New York/Newark-Guayaquil frequencies on a seasonal basis.

OST-2004-16941: Continental currently holds 14 frequencies for Houston-Ecuador service, seven for Houston-Quito and seven for Houston-Guayaquil. Continental states that it intends to continue providing daily nonstop roundtrip service between Houston-Quito, and it seeks the flexibility to provide supplementary Houston-Quito flights from time to time on a seasonal basis. The carrier further states that it intends to continue providing nonstop Houston-Guayaquil service subject to seasonal variations depending on demand Continental requests a dormancy waiver for six of its Houston-Guayaquil frequencies until December 20, 2006, if the seasonal authority requested has not been granted by December 5, 2006.

Continental also requests that the Department award it the one remaining non-Miami/New York frequency available to use on either Houston-Ecuador route on a seasonal basis.

In light of the fact that we are acting on Continental’s requests before December 5, 2006, we are dismissing the requests for dormancy waivers.

The allocation of the one non-Miami/New York frequency for use on either the Houston-Quito or Houston-Guayaquil route will remain in effect indefinitely; however, its use on a seasonal basis is authorized for one year, consistent with the other Houston-Ecuador conversion actions taken here.

By: Paul Gretch



July 2, 2007

Re: Returning US-Ecuador Frequencies

Continental currently holds seven Ecuador frequencies for New York/Newark-Guayaquil service. Continental has suspended its New York/Newark-Guayaquil service and returns those seven frequencies to the Department.

Counsel: Crowell & Moring, Bruce Keiner, 202-624-2615, rbkeiner@crowell.com



OST-1997-2447 - US-Ecuador Frequencies
OST-2004-16941 - US-Ecuador Combination Frequencies

September 28, 2007

Application for Renewal

Continental currently holds 15 frequencies for Houston-Ecuador service, awarded by Notice of Action Taken dated November 27, 2006 in Dockets OST-1997-2447 and OST-2004-16941, Notice of Action Taken dated February 20, 2004, Docket OST-2004-16941, and by Order 2000-8-19. To maximize Continental's flexibility to meet market demand for Houston-Ecuador service, Continental asks
the Department for renewal of its authority to use three of its Houston-Ecuador frequencies on a seasonal basis rather than a year-round basis.

Continental returns to the Department for re-allocation the non-Miami/New York frequency awarded to it by Notice of Action Taken dated November 27, 2006 in Dockets OST-1997-2447 and OST-2004-16941.

Four of Continental's Houston-Guayaquil frequencies were previously converted permanently to seasonal Notice of Action Taken, dated November 17, 2004, Docket OST-2004-16941).

Counsel: Crowell & Moring, Bruce Keiner, 202-624-2615, rbkeiner@crowell.com



OST-1997-2447 - US-Ecuador Frequencies
OST-2004-16941 - US-Ecuador Combination Frequencies

Filed September 28, 2007 | Issued October 26, 2007

Notice of Action Taken

Renewal of of authority to use three Houston-Guayaquil frequencies on a seasonal basis.

By Notice of Action Taken dated November 27, 2006, in the instant docket, the Department granted Continental's request to convert three frequencies for Houston-Guayaquil service from year-round service to seasonal service. The authority was effective for one year, and would expire on November 27, 2007. On September 28, 2007, Continental filed an application requesting renewal of its authority to use these frequencies on a seasonal basis rather than a year-round basis. Continental states that the flexibility allows it to meet market demand for Houston-Ecuador service.

Continental states that it returns to the Department for re-allocation the non-Miami/New York frequency awarded to it by Notice of Action Taken dated November 27, 2006 in the instant docket.

By: Paul Gretch


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