OST-97-2646
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OST-97-2646
Florida West International Airways, Inc. (Renewal of Certificate and Exemption Authority)
OST-97-2646 | June 23, 1997
Since the Department's confirming order was issued in February 1997, FWIA has made substantial and continuous progress. FWlA's financial condition has improved steadily in the past six months, generating profits in six of the past seven months. FWIA has expanded the scope of its operations, hired additional employees, is planning to increase the size of its fleet and has made arrangements to move its warehouse, sales and administrative facilities to a new cargo building adjacent to the ramp at Miami International Airport--all factors pointing to a healthy and growing carrier that provides its customers with valuable and much-needed service.
To All Interested Parties | Index of Information | Exhibit A - Form of Organization | Exhibit B - Certificate of Good Standing | Exhibit C - Affidavit of Citizenship | Exhibit D - Recent Financial Data | Exhibit E - Aircraft Fleet | Exhibit F - Operating Authority | Exhibit G - Description of Services and Financial Forecast | Exhibit H - Certification | Exhibit I - Evidence of Community Support | Exhibit J - Lease Agreement (Confidential Treatment)
Subpart Q, Answers are due by July 21, 1997
Application
for Confidential Treatment
Pursuant to Rule 39 of the Department of Transportation's Rules of Practice, Florida West International Airways, Inc. ("FWIA") hereby submits this motion to withhold from public disclosure certain documents being submitted under seal herewith as part of FWIA's application for renewal of its current operating authority. FWIA believes that the documents submitted herewith are confidential and commercially sensitive, the public disclosure of which would cause substantial injury to FWIA and third parties. The confidential information consists of (i) an aircraft lease agreement between Tranship Investments Limited and FWIA; (ii) an aircraft sublease agreement between FWIA and Fast Air Carrier, S.A. ("Fast Air"); (iii) an airport facilities sublease between FWIA and Fast Air; (iv) interline cargo rate agreements between FWIA, Fast Air and LAN Chile; and (v) the portion of the auditor's notes accompanying FWIA's 1996 financial statements which discloses certain financial terms of the Tranship lease agreement
Counsel: Squire Sanders, Marshall Sinick, 202-626-6651
Florida West International Airways, Inc. (Exemption Renewal)
OST-97-2646 | June 30, 1997
Letter in
Support from Skyking Freight Systems – June 23, 1997
By: William W. La Mothe, President and CEO, 972-466-0103
Florida West International Airways, Inc.
OST-97-2648, OST-97-2646, OST-95-418 | July 3, 1997
Letter from
John Coleman to Mark Atwood Regarding Mansour Rasnavad
This is to advise you that, based on our review of this material, we are tentatively of the view that Mr. Rasnavad's performance at Buffalo Airways does not reflect an unsatisfactory compliance disposition. We note that FWIA has recently applied to the Department for renewal of its operating authority beyond the current August 6, 1997, expiration date. The issue of Mr. Rasnavad's participation will be taken up in that proceeding. In the meantime, we have no objection to Mr. Rasnavad's voting his stock interest and serving on the carrier's Board of Directors.
Florida West International Airways, Inc.
OST-97-2646 | July 15, 1997
Re:
Confidentiality Affidavits for Outside Counsel
Counsel: Wilmer Cutler, Jeffrey Shane, 202-663-6000
Florida West International Airways (Renewal of Certificate and Exemption Authority / Renewal of Exemption and Frequency Allocation)
OST-97-2646 | OST-97-2648 | July 21, 1997
Answer of Fine
Airlines and Motion for Leave to File
In light of Fast Air's continued equity participation in FWIA and the enhanced relationship between the carriers, the Department should continue to subject the carrier to the reporting requirements set forth in Ordering paragraph #10. FWIA continues to test the limits of the Department's policy prohibiting foreign "effective control" of a U.S. carrier; continuation of reporting requirements that can hardly be described as onerous is clearly essential to the Department's ability to monitor this unique and troubling relationship.
Counsel: Wilmer Cutler, Jeffrey Shane, 202-663-6000
Florida West International Airways, Inc. (Renewal of Certificate and Exemption Authority / Frequency Allocation)
OST-97-2646 | OST-97-2648 | July 24, 1997
Reply of Florida
West International Airways and Motion for Leave to File
To be perfectly clear, FWIA would strongly oppose the imposition of any unusual condition on its renewed authority. FWIA has had to endure more than its share of financing and other problems because of the short-term restricted authority under which it has labored. FWIA has earned the right to be treated no differently than any other U.S. carrier.
Counsel: Squire Sanders, Marshall Sinick, 202-626-6651
Florida West International Airways, Inc. (Renewal of Certificate Authority)
OST-97-2646 | July 25, 1997
Amendment
No. 1 to Application for Renewal of Certificate Authority
The amendment is occasioned by FWIA's recently signed agreement proposing to transfer, subject to the approval of the Department of Transportation, its U.S.-Colombia scheduled authority to Federal Express.' FWIA is now submitting revised financial forecasts appropriately reflecting the elimination of U.S.-Colombia scheduled service as well as related service adjustments in FWIA's calendar year 1998 operating plan. Under the revised operating forecast, FWIA's projected operating profit would be $3.2 million.
Counsel: Squire Sanders, Marshall Sinick, 202-626-6651
Florida West International Airways, Inc. (Renewal of Certificate Applications)
OST-97-2646 | OST-97-2648 | July 30, 1997
Re:
Correspondence from Air Carrier Fitness to Counsel
This refers to the renewal of authority applications filed on behalf of Florida West International Airways (FWIA) in Dockets OST-97-2646 and 2648. The information in these proceedings remains under review at this time. However, our review thus far has revealed some areas, as set out in the enclosed Information Request, where additional and/or clarifying information is needed. We ask that FWIA file the requested information in the above noted dockets within 21 days of the date of this letter. In the meantime, should we need additional information from FWIA as a result of our continued review, we will let you know as soon as possible.
It is our understanding from the information provided that FWIA is currently operating one DC-8-61 aircraft and wet-leasing eight other aircraft. Is this correct? If not, please clarify. If this is correct, based on the forecasts provided, for the remainder of 1997 and for 1998, FWIA is projecting a substantial increase in revenues and profits from its operations than it experienced in past months using what appears to be approximately the same number of aircraft. Please elaborate on the reasons for the assumptions behind these projections. Are any of the current wet-leased aircraft being obtained from Fast Air or Lan Chile or any of their affiliates?
By: Delores King, Air Carrier Fitness Division
Florida West International Airways, Inc.
OST-97-2648 | OST-97-2646 | August 8, 1997
Re: Letter from Air Carrier Fitness to Counsel
Florida West states that for the next few months, it will sublease office and warehouse space from Fast Air. Will Florida West and Fast Air share any resources (including employees (with the exception of Emesto Ramirez who serves on Florida West's Board), financial, or otherwise) in connection with the lease of these facilities?
By: Delores King, Air Carrier Fitness Division
Florida West International Airways, Inc. (Renewal Application)
OST-97-2646 and OST-97-2648
Re: Renewal Application – Letter to Air Carrier Fitness
FWIA is in receipt of both your July 30, 1997 letter, and your letter of August 8, 1997, in which you requested additional information. FWIA has been diligently preparing its response, However, due to vacation schedules and delays in obtaining the necessary information from FWIA’s shareholders, we find it necessary to ask for an extension of time to file the requested information until August 29, 1997.
Counsel: Squire Sanders, Marshall Sinick, 202-626-6600
Federal Express Corporation and Florida West International Airways, Inc. (Approval of Transfer of Route Authority, US-Colombia) / Florida West International Airways, Inc. (Renewal of Certificate and Exemption Authority)
OST-96-2764 | OST-97-2646 | August 22, 1997
Answer of Fine Air Services and Motion for Leave to File
This is the second application in as many months in which FedEx seeks to purchase - in exchange for massive amounts of cash—authority to operate in a highly restricted South American market from a carrier that has never used the authority. In Docket OST-97-2548, FedEx sought to acquire for $1.5 million two U.S.-Argentina allcargo scheduled frequencies awarded by the Department to Arrow Air, Inc. (harrows). Arrow, it turned out, had not utilized these frequencies since being allocated them 17 months ago. In the instant proceeding, FedEx seeks to purchase for $5.5 million FWIA's authority to operate scheduled all-cargo services in the restricted-entry U.S.-Colombia market (and with it, FWIA's status as an Authorized carrier" under the U.S.-Colombia bilateral agreement), even though FWIA has not utilized this authority since it was transferred to the carrier a year ago. It is antithetical to Departmental policy and the public interest to permit a carrier to sell for private profit a valuable public franchise which it applied for, was granted, but has never used.
Exhibit A - Information Request for FWIA
Counsel: Wilmer Cutler, Jeffrey Shane, 202-663-6000
Florida West International Airways, Inc. (Certificate of Public Convenience)
OST-97-2646 | OST-97-2648
Florida West International Airways, Inc. ("FWIA") respectfully submits this supplement to its application for renewal of its certificate and exemption authority. The information contained in this supplement responds to questions posed by the Department of Transportation (the "Department") in correspondence dated July 30 and August 8, 1997. FWIA's answers generally follow the order of the Department's questions as set forth in its correspondence.
Insofar as the DC-8-71 aircraft are concerned, FWIA's interchange agreement with Fast Air will similarly permit FWIA to select from among four separate DC-8-71 aircraft. This type of arrangement again is designed to provide FWIA with the maximum degree of fleet and schedule reliability. In terms of forecast usage of the DC-8-71, FWIA is planning to start operating the DC-8-71 aircraft this fall with the expectation that usage in the first three-four months should approximate the equivalent of one fulltime aircraft. FWIA still has the $2 million line-of-credit with Atlas Air Cargo. To date, FWIA has not drawn on this line-of-credit. FWIA never finalized the $1 million line-of-credit with the Mercury Air Group because Mercury was going to require that FWIA pay a substantial commitment fee each month. FWIA did not feel that it was prudent to incur such fees for a line-of-credit which FWIA did not, and currently does not, need.
Exhibit 1 | Exhibit 2 | Exhibit 3
Counsel: Squire Sanders, Marshall Sinick, 202 626 6651
Exhibits Available September 2nd p.m.
Florida West International, Inc. (Renewal of Certificates of Public Convenience)
OST-97-2646 | OST-97-2648 | September 2, 1997
On August 29, 1997, Florida West International Airways, Inc. ("FWIA") filed Amendment No. 2 to its Application for Renewal of its Certificate and Exemption Authority in Dockets OST-97-2646 and 2648. At that time, FWIA indicated that it would supply signature copies of Boris Hirmas Rubio's Affidavits in a subsequent filing. Enclosed are the signature copies of Boris Hirmas Rubio's Affidavits which are properly contained in Exhibit 1 of FWIA's Amendment No. 2. FWIA respectfully requests that these documents be appended to its August 29 filing.
Affidavit of Boris Hirmas Rubio
Counsel: Squire Sanders, Heather Boals, 202-626-6600
Federal Express Corporation and Florida West International Airways, Inc. (for approval of transfer of route authority) and Florida West International Airways, Inc. (for renewal of certificate and exemption authority)
OST-97-2764 | OST-97-2646 | September 5, 1997
Motion for Leave to File and Surreply of Fine Air Services,
Inc. to the Joint Reply
Fine Air does not dispute that the Department has permitted carriers to purchase authority to operate in restricted markets from other carriers, nor that such authority has been purchased from carriers who once utilized that authority but subsequently ceased doing so. But FedEx and FWIA have offered no precedent to support what FWIA seeks to do here: apply for authority (and the accompanying designation) to operate in a restricted market, fail ever to utilize the authority, fail even to seek corresponding authority from the foreign government for over six months, and then seek to sell the authority. Clearly, this is incompatible with Departmental policy and the public interest.
Cousel: Wilmer Cutler, Jeffrey Shane, 202 663 6000
Federal Express Corporation and Florida West International Airways, Inc. / Florida West International Airways, Inc. (Approval of Route Transfer / Renewal of Certificate and Exemption Authority)
Order 97-10-23 | OST-97-2764 | OST-97-2646 | Issued October 23, 1997 | Served October 29, 1997
Order Approving Route Transfer
By this order we approve that portion of Florida West's renewal application in Docket OST-972646 to the extent that it seeks renewal of its U.S.-Colombia operating authority, and approve the Joint Application of Federal Express Corporation (Federal Express) and Florida West international Airways, Inc. (Florida West) for the transfer to Federal Express of Florida West's certificate authority on Route 599 to provide scheduled all-cargo foreign air transportation between the United States and Colombia.
By: Charles Hunnicutt
Federal Express Corporation and Florida West International Airways, Inc. (Route Transfer, US-Colombia)
OST-97-2764 | OST-97-2646 | November 10, 1997
Petition for Reconsideration of Fine Air Services
Fine Air's objections to the Joint Application -- obvious from even a cursory reading of the "Answer of Fine Air Services, Inc. and Motion for Leave to File" which Fine Air filed on August 22, 1997 -- were twofold:
Counsel: Wilmer Cutler, Jeffrey Shane, 202-663-6000
Federal Express Corporation and Florida West Internaitonal Airways, Inc. (Route Transfer, US-Colombia / Renewal of Certificate and Exemption Authority)
OST-97-2764 | OST-97-2646 | November 18, 1997
Joint Answer of Federal Express and FWIA to
Petition for Reconsideration
There is no factual or legal basis for reconsideration of Order 97-10-23 on the ground of any non-use by FWIA of its U.S.-Colombia all-cargo certificate authority. Equally important -- and undisputed by Fine Air -- the record demonstrates that Federal Express will make active, effective and aggressive use of the transferred U.S.-Colombia authority as successor to FWIA.
Counsel: Squire Sanders, Marshall Sinick, 202-626-6651 for FWIA / FedEx and Shaw Pittman, Nathaniel Breed, 202-663-8078
Florida West International Airways, Inc. - (Response to Request for Additional Information)
OST-97-2646 | OST-97-2648 | October 28, 1997 | Docketed on November 21, 1997
In December 1996, the Chilean Antitrust Commission charged Lan Chile, Ladeco and another Chilean airline (which is unrelated to Lan Chile/Fast Air's principals) with certain anticompetitive practices in conjunction with another Chilean regional airline which operates exclusively within Chile. Specifically, the airlines were charged with engaging in anticompetitive and predatory behavior because of their refusal to continue to provided maintenance services to the regional airline and their offer of lower fares in certain markets in an alleged effort to adversely affect the regional airline. This matter was concluded in July 1997 with a payment by the parties of a $340,000 fine to the Chilean Antitrust Commission. Lan Chile, Ladeco and Fast Air, including their principals and subsidiaries, have not been previously charged with any such practice nor have any such charges been subsequently filed.
Statement of Operations
| May | June | July | August | Year-to-Date: January thru August | |
| Revenues | 4,918,234 | 6,102,604 | 5,936,379 | 8,183,426 | 43,773,629 |
| Expenses | 4,842,993 | 6,237,925 | 5,849,184 | 8,120,715 | 43,576,362 |
| Profit/(Loss) | 75,241 | (135,321) | 87,195 | 62,711 | 197,267 |
Counsel: Squire Sanders, Marshall Sinick, 202.626.6651
Federal Express Corporation and Florida West International Airways, Inc. - (US-Colombia All-Cargo) / Florida West International Airways
Order 97-11-40 | OST-97-2764 | OST-97-2646 | Issued and Served November 25, 1997
By this order, we grant the petition of Fine Air Services for reconsideration of Order 97-10-23 and, upon reconsideration, affirm our decision to transfer the U.S.-Colombia certificate authority held by Florida West International Airways to Federal Express Corporation.
By: Charles Hunnicutt
Florida West International Airways, Inc.
OST-97-2646 | November 25, 1997
Re: Lease Agreement for Office Space
Please find enclosed a copy of Florida West International Airways' ("FWIA") lease agreement with Dade County, Florida for office space at MIA. Even though the signature page does not contain Dade County's signature, FWIA, since September 15, 1997, has been paying rent on a regular basis to Dade County. FWIA previously filed its MIA warehouse space sublease agreement with Silvarrey & Colon Cargo Service. The warehouse sublease agreement is appended as Exb. 3 to FWIA's Amendment No. 2 to its Renewal Application filed on August 29.
Counsel: Squire Sanders, Marshall Sinick
Florida West International Airways, Inc. (Renewal of Certificate Authority, Exemption Authority and Frequency Allocations)
Order 97-1-27 | OST-97-2646 | OST-97-2648 | Issued January 26, 1998 | Served January 27, 1998
Order
Renewing Certificate and Exemption Authority
By this order, we find that Florida West International Airways, Inc. (FWIA) continues to be fit, willing, and able to provide interstate and foreign scheduled all-cargo air transportation, and we renew its certificate and exemption authority.
Mansour Rasnavad, the carrier's majority shareholder and its then-Chairman had been the Chief Executive Officer of Buffalo Airways, another certificated air carrier, during a time when that carrier's compliance with FAA regulations and the Department's Form 41 reporting requirements was deteriorating. Our concerns were exacerbated by what appeared to be an evasiveness on the part of Mr. Rasnavad concerning his involvement with Farhad Azima, Buffalo's owner and a long-time associate of Mr. Rasnavad's. Prior to our tentatively finding FWIA fit in Order 9-6-19, however, FWIA advised us that Mr. Rasnavad intended to divest himself of all, or most, of his interest in FWIA.
After carefully considering the supplementary information he had provided, we advised Mr. Rasnavad by letter dated July 3, 1997, that it was our tentative view that his past performance at Buffalo did not reflect an unsatisfactory compliance disposition on his part. As a result, at that time, we noted that we had no objection to Mr. Rasnavad's voting his stock and serving on FWIA's Board pending a decision in the instant renewal proceeding. We remain of that view and will not impose any restrictions on Mr. Rasnavad's financial or directorial involvement with FWIA at this time.
Certificates | Attachment - Service List
By: Charles Hunnicutt
Florida West International Airways, Inc. (Renewal of Certificate Authority)
Order 98-2-6 | OST-97-2646 | Issued January 26, 1998 | Served February 6, 1998
Order Renewing Authority and Reissuing Certificates (First Page Only - Dept Has Not Officially Released to the Public)
By Order 98-1-27 we found FWIA fit, willing, and able to engage in interstate and foreign air transportation, renewed its interstate cargo authority and reissued its certificate to reflect that renewal. By this order, we are renewaing FWIA's foreign cargo certificate authority and reissuing the carrier's certificates for Routes 599 and 712.
Florida West International Airways, Inc.
| OST-97-2646 | Filed June 23, 1998 Action Taken November 5, 1998 |
Notice of Action Taken | Houston/Miami-Lima/Iquitos-Beyond to Santiago All-Cargo Scheduled |
Scheduled foreign air transportation of property and mail between Houston, Texas, and Miami, Florida, on the one hand, and Lima, and Iquitos, Peru, on the other hand, with beyond service to Santiago, Chile. This notice addresses the outstanding frequency request only. With this action, there are no remaining requests in Docket OST-97-2646.
By: Paul Gretch
Florida West International Airways, Inc.
| OST-97-2646 | August 9, 2002 | Application for Renewal of Certificate of Public Convenience and Necessity | Houston/Miami- Lima/Iquito and Beyond to Santiago All-Cargo Scheduled |
| Service List |
Hereby requests renewal of its Certificate of Public Convenience and Necessity authorizing it to engage in the foreign air transportation of property and mail between the coterminal points Houston, Texas and Miami, Florida, on the one hand, and Lima and Iquitos, Peru, on the other hand, with beyond service to Santiago, Chile. FWIA also requests that this authority be integrated with all other services it is otherwise authorized to conduct pursuant to its exemption and certificate authorities, consistent with applicable agreements between the U.S. and foreign countries.
Counsel: Squire Sanders, Marshall Sinick, 202.626.6651, msinick@ssd.com
Continental Airlines, Inc. / Federal Express Corporation / Florida West International Airways, Inc. / Polar Air Cargo, Inc. / United Air Lines, Inc.
Order 04-05-23
OST-2001-9622 - Continental - Houston- Lima
OST-1996-1530 - Federal Express - U.S.-China All Cargo
OST-1997-2646 - FWIA - Houston/Miami-Lima/Iquito and Beyond to Santiago All-Cargo Scheduled
OST-1999-6425 - Polar - U.S.-Argentina; U.S.-Chile Certificate of Public Convenience and Necessit
OST-1997-2911 - United - US-South Africa Codeshare
OST-1997-2046 - United - U.S.-Argentina, Brazil, and Columbia on Route 632
Issued March 29, 2004 | Served May 28, 2004
Order Issuing Certificates | Word
We amend or issue in the form attached, certificates of public convenience and necessity to the applicants listed in the caption of this order. We dismiss, as moot, the application of Polar Air Cargo to the extent that it seeks certificate authority to serve the Argentina and Grenada markets. We deny United's application in Docket OST-1997-2046 to the extent that it seeks to renew U.S-Brazil authority on segments 1 and 6 for an indefinite duration
By: Karan Bhatia
Order 04-05-23
OST-2001-9622 - Houston- Lima
OST-1996-1530 - U.S.-China All Cargo
OST-1997-2646 - Houston/Miami-Lima/Iquito and Beyond to Santiago All-Cargo Scheduled
OST-1999-6425 - U.S.-Argentina; U.S.-Chile Certificate of Public Convenience and Necessity
OST-1997-2911 - US-South Africa Codeshare
OST-1997-2046 - U.S.-Argentina, Brazil, and Columbia on Route 632
Issued March 29, 2004 | Served May 28, 2004
Order Issuing Certificates - Corrected Copy | Word
*To reflect insertion of dates omitted from certificates and the fact that United was not issued a certificate for China authority, as indicated on page 3 of the posted copy.
By: Karan Bhatia
Continental Airlines, Inc. / Federal Express Corporation / Florida West International Airways, Inc. / Polar Air Cargo, Inc. / United Air Lines, Inc.
Order 04-05-23
OST-2001-9622 - Houston- Lima
OST-1996-1530 - U.S.-China All Cargo
OST-1997-2646 - Houston/Miami-Lima/Iquito and Beyond to Santiago All-Cargo Scheduled
OST-1999-6425 - U.S.-Argentina; U.S.-Chile Certificate of Public Convenience and Necessity
OST-1997-2911 - US-South Africa Codeshare
OST-1997-2046 - U.S.-Argentina, Brazil, and Columbia on Route 632
Issued March 29, 2004 | Served May 28, 2004
Order Issuing Certificates - Corrected Copy | Word
*Corrects Order 2004-5-23, served May 28, 2004, to include Chile in Polar’s certificate for Route 651. Only Polar’s certificate is attached to this correction.
By: Karan Bhatia
Continental Airlines, Inc. / Federal Express Corporation / Florida West International Airways, Inc. / Polar Air Cargo, Inc. / United Air Lines, Inc.
Order 04-05-23
OST-2001-9622 - Houston- Lima
OST-1996-1530 - U.S.-China All Cargo
OST-1997-2646 - Houston/Miami-Lima/Iquito and Beyond to Santiago All-Cargo Scheduled
OST-1999-6425 - U.S.-Argentina; U.S.-Chile Certificate of Public Convenience and Necessity
OST-1997-2911 - US-South Africa Codeshare
OST-1997-2046 - U.S.-Argentina, Brazil, and Columbia on Route 632
Issued March 29, 2004 | Served June 15, 2004
Order Issuing Certificates - Corrected Copy | Word
By: Karan Bhatia
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