OST-97-2578
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OST-97-2578
Polar Air Cargo, Inc. (All-Cargo Frequency Allocation, US-Argentina)
OST-97-2578 | June 2, 1997
Application for All-Cargo Frequency Allocation
Polar Air has a pressing need to increase the frequency of its Argentina scheduled service, if it is to succeed in establishing a viable competitive presence in the market. Polar Air has already incurred $3 million in losses in developing a foothold in Argentina. Despite southbound load factors that averaged 89 percent in the months of March and April, Polar Air's single weekly service is not profitable, primarily because higher yielding freight gravitates toward the much more frequent services of Federal Express. A second weekly frequency would help to offset that disadvantage as well as permit the carrier's fixed costs in Argentina to be supported by a much larger revenue base.
Counsel: Ginsburg Feldman, Alfred Eichenlaub, 202-637-9034
Polar Air Cargo, Inc. (All-Cargo, US-Argentina)
OST-97-2578 | June 9, 1997
Federal Express urges the Department to defer action of the application of Polar for reallocation of the two Argentina cargo frequencies formerly allocated to Challenge until after the issuance of a Final Order granting the pending Joint Application of Federal Express, Arrow and FWIA in Docket OST-97-2548.
Counsel: Federal Express and Shaw Pittman, Nathaniel Breed, 202-663-8078
Polar Air Cargo, Inc. (All-Cargo Frequency Allocation, US-Argentina)
OST-97-2578 | June 10, 1997
The sole premise underlying Polar's application is its assertion - based upon vague and unsubstantiated "inquiries" in Argentina - that Challenge may not have utilized one of both of the frequencies that were allocated to it by the Department during the last 90 days. That claim is not correct. Challenge's most recent flight in the U.S.-Argentina market operated on May 17-19, 1997. That particular flight - which was operated with wide-body equipment equating to two narrow-body operations - operated over a Miami-Bogota-Sao Paulo-Buenos Aires-Sao Paulo-Bogota-Miami routing. Consequently, any suggestion that Challenge has failed to exercise its Argentine authority within the last 90 days simply is wrong. To the contrary, Challenge would like to take this opportunity to reassure the Department that it fully intends to retain and operate its Argentine authority. To be sure, Polar is not the only carrier which has experienced significant losses in attempting to maintain its Argentine service in the face of a prolonged slump in the market. However, that fact does not lessen Challenge's enthusiasm for the market nor its commitment to establishing and maintaining a meaningful presence in the market.
Counsel: Zuckert Scoutt, William Callaway, 202-298-8660
Polar Air Cargo, Inc. (All-Cargo Frequency Allocation, US-Argentina)
OST-97-2578 | June 18, 1997
Motion for Leave to File and Reply of Polar Air to Answer of Challenge Air Cargo
Challenge was awarded two weekly narrow body all-cargo scheduled frequencies; the last over six months ago. Polar Air believes that Challenge's operation of a single, apparently non-scheduled flight in the past 90 days is insufficient to fulfill its obligation to use the scheduled frequencies. Similarly, Polar Air believes that Challenge's proposed schedule of one flight per month will not constitute adequate "scheduled" utilization of the weekly frequencies. As such, these frequencies should be available for re-allocation to a carrier which will properly utilize them. In the alternative, Polar Air requests that the Department investigate Challenge's utilization of the scheduled frequencies and initiate a proceeding to revoke Challenge's allocation.
Counsel: Ginsburg Feldman, Alfred Eichenlaub, 202-637-9034
Polar Air Cargo, Inc. (All-Cargo Frequency Allocation, US-Argentina)
OST-97-2578 | June 27, 1997
Motion for Leave to File and Opposition of Challenge Air Cargo
Polar's Reply inaccurately attempts to characterize Challenge's May 17-19, 1997 Miami-Bogota-Sao Paulo-Buenos AiresSao Paulo-Bogota-Miami wide-body flight as an isolated charter flight and asserts that Challenge therefore failed to exercise its scheduled all-cargo frequencies (i.e., two narrow-body frequencies or one wide-body frequency) in the U.S.-Argentina market during the 90-day period specified in the Department Is February 25, 1997 Notice of Action Taken. That simply is not correct. Contrary to what Polar would have the Department believe, Challenge's May 17-19 wide-body flight was not a random, nonscheduled charter flight. It was operated as part of a pattern of regularly scheduled service, pursuant to scheduled authority granted by the Argentine government and in accordance with a schedule filed with the Argentine authorities. Under that schedule, Challenge is operating one wide-body flight (i.e., two narrow-body equivalents) every fourth week (i.e., on the third Sunday of every month)!/, a level of operations that is fully consistent with the requirements of the Department's February 25, 1997 Notice. Pursuant to that schedule, Challenge operated another scheduled Miami -Bogota-Sao Paulo-Buenos Aires -Sao PauloBogota-Miami wide-body flight last weekend, and the next scheduled Miami-Bogota-Sao Paulo-Buenos Aires-Sao Paulo-Bogota-Miami wide-body flight will operate on July 20 - 21. There can be little question, then, that Challenge has satisfied - and is continuing to satisfy - the requirements of the Department's Notice of Action Taken, Docket OST-96-1042 (Feb. 25, 1997)
Counsel: Zuckert Scoutt, William Callaway, 202-298-8660
OST-97-2548 | OST-97-2852 | OST-97-2594 | OST-97-2578 | OST-97-2855 | OST-97-2848 | September 2, 1997
Answer of Fine Air Services, Inc.
As the Department has repeatedly noted, authority to operate air transportation services in a limited entry international market is a public asset of considerable value. See. e.g., Order 97-7-14 (U.S.-Ecuador), 97-7-8 (U.S.-Czech Republic); 97-4-13 (U.S.-Brazil). Carriers which do not possess such authority (including, in those markets where foreign governments limit the total number of weekly flights that U.S. carriers may operate, an allocation of frequencies) are thus excluded from the market.
Contingent Motion for Leave to File and Answer of Fine Air Services, Inc.
With extensive on-airport warehouse and aircraft-support facilities at MIA and unsurpassed connections among local freight forwarders, Fine Air has become an established competitor in numerous Miami - Latin American markets. Fine Air believes that its resources, experience and presence in these markets would give it a significant edge in establishing itself as a viable competitor in the Miami - Buenos Aires market.
Exhibit FN-1 - Pre-Transfer HHI Index for Published Scheduled Freighter Services from the US to Argentina
Counsel: Wilmer Cutler, Jeffrey Shane, 202 663 6000
Consolidated Answer of Southern Air Transport, Inc.
By a Notice served August 18, 1997, the Department requested applications by any U.S. carrier interested in operating those U.S.-Argentina scheduled all-cargo frequencies currently allocated to certain U.S. carriers by DOT Orders 95-1-9 and 95-3-30 which are dormant. In response to that Notice, Applications were filed by Southern Air Transport, Inc. ("Southern") and by Fine Air Services ("Fine") for four (4) weekly narrow-body frequencies each.
Counsel: Pierre Murphy, 202 872 1679
U.S.-Argentina All-Cargo Frequency Proceeding / Federal Express Corp., Arrow Air, Inc. and Florida West International Airways, Inc. (Transfer of Frequency Allocations) / Arrow Air, Inc., Federal Express Corp., Fine Airlines, Inc., Polar Air Cargo, Inc. and Southern Air Transport, Inc. (Allocation of Frequencies and/or Exemption Authority)
Order 97-11-35 | OST-97-3139 | OST-97-2548 | OST-97-2848 | OST-97-2594 | OST-97-2852 | OST-97-2578 | OST-97-2855 | Issued and Served November 20, 1997
HTML (With Appendix)
By this order, we institute the 1997 U.S.-Argentina All-Cargo Frequency Proceeding to determine whether U.S.-Argentina all-cargo frequencies currently held by Florida West, Arrow Air, and Challenge should be reallocated, including the issue of whether frequencies should be transferred jurors Florida West and Arrow Air to Federal -Express. We will consolidate all of the captioned applications into this new proceeding.
In order to facilitate a prompt decision in the case, we intend to conduct the proceeding according to the following schedule:
By: Charles Hunnicutt
U.S.-Argentina All-Cargo Frequency Proceeding
Joint Application of
Federal Express Corporation, Arrow Air, Inc., and Florida West
International Airways, Inc. (Transfer of Frequency
Allocations in US-Argentina All-Cargo Frequencies)
Applications of Arrow Air, Inc., Federal Express Corporation,
Fine Airlines, Inc., Polar Air Cargo, Inc., and Southern Air
Transport, Inc. (Allocation of Frequencies and/or
Exemption Authority in US-Argentina All-Cargo Frequencies)
Application of Florida West International Airways, Inc. (Renewal
of Frequency Allocation)
Motion and Request of Challenge Air Cargo, Inc.
(For Clarification of Department's August 14, 1997 Notice
Regarding US-Argentina All-Cargo Services)
Application of Challenge Air Cargo (Renewal of
Exemption)
Joint Petition for Review of Staff Action of Federal
Express Corporation and Arrow Air, Inc. (Regarding
August 14, 1997 Notice on US-Argentina All-Cargo Services)
OST-97-3139 | OST-97-2548 | OST-97-2848 | OST-97-2594 | OST-97-2852 | OST-97-2578 OST-97-2855 | OST-97-2648 | Undocketed | OST-96-1042 | Undocketed | November 28, 1997
Motion for Leave to File and Reply of Challenge Air Cargo, Inc. to Answer of Polar Air Cargo, Inc.
Polar has fundamentally misconstrued and mischarachterized the issues raised in Challenge's Petition for Reconsideration of Order 97-11-35. In the interest of a complete and accurate record for the Department's consideration, and given the importance of the issues at stake, Challenge should be given an opportunity to respond. Good cause, therefore, exists for acceptance of this Reply.
Polar contends that because Challenge has the opportunity to participate in this proceeding, its procedural rights have been protected. Polar is flat wrong. Challenge cannot lawfully be placed in a position where it has to recompete for frequencies that it has already been awarded based on an unarticulated use standard. In exercising its frequency allocation, Challenge has justifiably relied on the Department's 90-day dormancy condition and its prior statements of policy.
Counsel: Zuckert Scoutt, William Calloway, 202.298.8660
| OST-97-2848 OST-97-2594 OST-97-2855 OST-96-1042 OST-97-2852 OST-97-2578 |
Filed August 25, 1997 Filed June 9, 1997 Filed August 25, 1997 Filed January 30, 1996 Filed August 25, 1997 Filed June 2, 1997 Issued June 12, 2001 |
Notice of Action Dismissing Applications | U.S.- Argentina Frequencies |
By: Paul Gretch
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