Home | OST Filings by Docket | OST Filings by Carrier | OST Filings by Proceeding | OST Filings by Day
Office of Intl Aviation Filings by Carrier | Office of Intl Filings by Day

OST-97-2852

Fine Airlines, Inc. (U.S.-Argentina All-Cargo)

OST-97-2852 | August 25, 1997

Application for Exemption Authority and Request for Allocation of Frequencies

HTML

Although Fine Air has conducted ad hoc charter flights to Argentina, bilateral frequency limitations have precluded it from entering the scheduled U.S.-Argentina all-cargo market. Fine Air believes that the introduction of its brand of efficient, low-cost service would inject significant competition into this market, as it has in every other market that Fine Air has been permitted to enter, to the benefit of shippers and receivers. Fine Air hereby applies for all four U.S.-Argentina scheduled allcargo frequencies which have reverted back to the Department and are now available for reallocation.'' As described below, Fine Air would make use of these frequencies primarily by using widebody L101 1 (operated by Fine Air) or DC-10 or B747 aircraft (to be obtained on a wet lease basis). As necessary to ensure full utilization of all frequencies, Fine Air would also use narrowbody DC-8 aircraft (operated by Fine Air).

Fine Air took possession of an L101 1 aircraft in July 1997. Currently, Fine Air is in the process of adding the aircraft to its operations specifications. Fine Air expects to begin L101 1 operations in November 1997, and to add three more widebody aircraft to its fleet in the upcoming year. Should Fine Air be allocated the requisite authority prior to November 1997, it would use wet leased DC-10 or B-747 aircraft on an interim basis.

Exhibit 1 – Proposed U.S.-Argentina Flight Schedule

Service List

Counsel: Wilmer Cutler, Karan Bhatia, 202 663 6000

Fine Air Services, Inc. and Southern Air Transport, Inc. / Federal Express Corporation, Arrow Air, Inc., Florida West International Airways, Inc.

OST-97-2852 | OST-97-2855 | OST-97-2548 | August 26, 1997

Joint Consolidated Answer of Federal Express, Arrow Air, and Florida West

HTML

For the reasons discussed in this Answer and the attached and referenced Petition for Review, Federal Express, Arrow and FWIA urge the Department to issue an Order dismissing the applications of Fine Air and Southern Air, insofar as those applications request the allocation of any of the Argentina cargo frequencies at issue in Docket OST-97-2548. The Joint Applicants further respectfully urge the Department to issue an immediate Final Order approving the transfer of three Argentina cargo frequencies to Federal Express in Docket OST-97-2548.

Attachment - Joint Petition for Review dated August 21, 1997

Counsel: For Arrow Air, Allan Markham, 202 337 2149 | Federal Express, Shaw Pittman, Nathaniel Breed, Jr., 202 663 8078 | For Federal Express, A. Doyle Cloud, Jr. | For Florida West, Squire Sanders, Marshall Sinick, 202 626 6651

US-Argentina All-Cargo Services / Federal Express Corporation, Arrow Air, Inc., and Florida West International Airways, Inc.

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.

HTML

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.

HTML

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.

HTML

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

Order Instituting Proceeding

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:

• Date for Incumbent Responses: December 2, 1997
• DOT IRs: December 2, 1997
• Supplemented applications: December 23, 1997
• Answers to supplemented applications: January 21, 1998
• Replies to Answers: February 4, 1998

Appendix

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.

HTML

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

Notice of Action Dismissing Applications- Various Dockets; Arrow Air, Inc., Federal Express Corporation, Southern Air Transport, Inc., Challenge Air Cargo, Inc., Fine Airlines, Inc. and Polar Air Cargo, Inc.

By:  Paul Gretch

Home | OST Filings by Docket | OST Filings by Carrier | OST Filings by Proceeding | OST Filings by Day
Office of Intl Aviation Filings by Carrier | Office of Intl Filings by Day