ost972492

OST Filings by Docket Number

Arrow Air, Inc. (Allocation of US-Ecuador Scheduled All-Cargo Frequency)

OST-97-2492 | May 8, 1997

Application for Additional Frequency and Motion to Consolidate

HTML

As clearly is demonstrated by the number of applications seeking Millon's frequency allocation, the demand for all-cargo lift in the U.S.-Ecuador market has increased considerably in recent months. Unlike Challenge who, in addition to holding seven frequencies, is able to operate extra sections, Arrow is not allowed by Ecuador to operate extra sections. This causes serious problems for Arrow and its shippers because demand considerably exceeds the capacity of three weekly frequencies.

Arrow could easily use all three of Millon's frequencies if the Department decides to reallocate them on a temporary or permanent basis. It believes, however, that a more equitable decision would be to allocate one frequency to each of the current incumbent carriers, Arrow and Fine, and one to the former incumbent, FWIA, which together currently hold fewer frequencies (5) that Challenge (7). Arrow believes that because of this disparity each of the other incumbents should receive additional frequencies before either Challenge or new entrants. Arrow also urges the Department to make these reallocations permanent if Millon does not recommence operations July 1, 1997.

Service List

Counsel: Allan Markham, 202-337-2149

U.S. - Ecuador Frequencies

OST-97-2492, 97-2443, 97-2423, 97-2342, 97-2444 | May 19, 1997

Consolidated Answer, Motion for Leave to File, and Surreply of American International Airways

HTML

Given all of the factors discussed above, the most logical choice for reallocation of all three frequencies is AIA. Through the diversity and large size of its fleet, and its ability to utilize AIA's hub-based nationwide freight system, AIA is best positioned to provide long-term benefits and improved service to the U.S.-Ecuador market both northbound and southbound. Furthermore, the Department will best achieve its policy goals to fully utilize bilateral rights, increase competition and improve overall market structure by reallocating the frequencies to AIA, and thereby increasing the available capacity and service options, as well as providing downward pressure on rates through the entry of a strong competitor to the incumbents.

Counsel: Sher Blackwell, Steven Quan, 202-463-2500

U.S.-Ecuador All-Cargo Frequencies / American International Airways, Inc. / Arrow Air, Inc. / Challenge Air Cargo, Inc. / Fine Airlines, Inc. / Florida West International Airways, Inc. / Polar Air Cargo, Inc. / Millon Air, Inc.

Order 97-7-14 | OST-97-2711 | OST-97-2342, 97-2492, 97-2443, 97-2423, 97-2325, 97-2444 | OST-96-1913 | Issued and Served July 14, 1997

Order Rescinding Frequency Allocation and to Show Cause

HTML

By this order, we rescind the allocation of frequencies to Millon Air for US-Ecuador services and we tentatively (1) grant American International Airways an exemption to perform scheduled foreign air transportation of property and mail between Miami and Quito and Guayaquil, and to integrate this authority with the carrier’s certificate authority to serve points in Colombia and (2) allocate AIA three US-Ecuador all-cargo frequencies for these services for a one-year period. In addition, we propose to condition the frequencies tentatively allocated here, as well as frequencies allocated to incumbent carriers, with our standard 90-day dormancy rule. We dismiss the request of Millon Air for renewal of its frequency.

Appendix A – Ecuador Applications | Appendix B – Summary of Responsive Pleadings

By: Patrick Murphy