OST-97-2876
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-97-2876
Atlas Air, Inc. (Exemption US-Colombia scheduled cargo service)
OST-97-2876 | September 2, 1997
Application for Exemption and Reallocation of a Designation
Requests an exemption from 49 U.S.C. § 41101 to the extent necessary to permit it to operate scheduled foreign air transportation of property and mail between Miami, Florida, on the one hand, and Barranquilla, Bogota and Call, Colombia on the other, and beyond Colombia to other points in South America, which Atlas may be authorized to serve now or in the future. Atlas also requests that the Department rescind the U.S.-Colombia scheduled service designation currently held by Millon Air, Inc. ("Millon"), which has been unused for over ten months, and reissue it to Atlas.
Answers are due by September 17, 1997
Counsel: Verner Liipfert, John Mietus, 202 371 6000
Atlas Air, Inc. (Exemption, US-Colombia Scheduled Cargo)
OST-97-2876 | September 12, 1997
If the Department were to disapprove the proposed route transfer, however, Federal Express would file and prosecute a competing application for reallocation of the authority, including the formal designation, held by Millon.
Accordingly, Federal Express urges the Department to take no action on the application by Atlas in this proceeding until after the Department has either: (1) issued a Final Order approving the route transfer at issue in Docket OST-97-2674, or (2) issued a Notice soliciting applications for reallocation of the Colombia authority, including the formal designation, now held by Millon.
Counsel: FedEx and Shaw Pittman, Nathaniel Breed, 202-663-8078
Atlas Air, Inc. (Exemption, US-Colombia Scheduled All-Cargo)
OST-97-2876 | September 17, 1997
Millon Air's authority to provide U.S.-Ecuador scheduled service is set forth in its certificate of public convenience and necessity, which grants extensive scheduled routes throughout Central and South America, via intermediate and beyond points. This certificate is not subject to a dormancy condition. Prior to the Ecuador crash, Millon Air had a longstanding--twelve years-history of providing economical, reliable all-cargo service between the United States and Colombia. The airline has invested considerable capital and energy developing a customer base and infrastructure in this market, and should not be dislodged while its fitness review remains under Department consideration. Certainly, no determination rescinding Millon Air's designation should be made before the Department conducts a factual inquiry whether other designated carriers--some having entered the market more recently and with less dedication than Millon Air--are making full use of their rights.
Counsel: Suzette Matthews, 540-364-3470
Atlas, on the other hand, prides itself on the fact that its business is the wet-leasing of its aircraft under what are called "ACMI" contracts in which its customers bear "all of the operating expenses, including fuel and fuel servicing; marketing costs associated with obtaining cargo; airport cargo handling; landing fees; ground handling, aircraft push-back and de-icing services; and specific cargo and mail insurance. The Company's customers are also responsible under these contracts for utilizing the capacity of such aircraft."" It is safe to assume, therefore, that Atlas is not planning to change its business strategy to serve one Latin American route. Indeed, reports in the market indicate that what Atlas proposes to operate is essentially a daily flight chartered to a consolidator closely associated with Fast Air, a Chilean carrier for whom Atlas provides extensive South American wet-lease services. Were there no limitations on U.S. carrier designations, Polar Air would not raise this objection. However, where as here U.S.-flag scheduled service designations are limited, Polar believes the Department should give priority to true, traditional individually-waybilled services conducted by a U.S. carrier that specializes in the marketing and sale of those services to a broad spectrum of the U.S. shipping community
Counsel: Ginsburg Feldman, Alfred Eichenlaub, 202-637-9034
Answer of Transportes Aereos Mercantiles Panamericanos
Although TAMPA's application was filed almost four months ago, no action has been taken and TAMPA continues to be at a serious disadvantage as compared to its U.S. all-cargo competitors. TAMPA also notes that the Government of Colombia has communicated to the U.S. Government its support of TAMPA's application.
Under DOT policy, TAMPA is thereby limited as to its service to the U.S. and cannot increase its services so long as Colombia is so listed. Yet, here we are facing the possibility of a daily B-747 all-cargo operation by Atlas with up to 248,000 pounds of lift (Atlas Application, p.3) as compared to the limited lift of Millon's B-707 (Id., p.4) but with no opportunity by TAMPA to meet the competitive challenge. We cannot believe that the DOT would countenance such an unfair situation, much less would the Government of Colombia. TAMPA is perfectly willing to compete with U.S carriers, but it cannot do so without the opportunity to meet increased service with increased frequency or capacity.
Counsel: Winthrop Stimson, Robert Gray, 202-775-9800
Atlas Air, Inc. (Exemption, US-Colombia)
OST-97-2876 | September 25, 1997
Re: Erratum to Millon Air's Answer
Line five of page two of the referenced Answer of Millon Air refers to Millon Air's "U.S.-Ecuador" authority. This is a clerical error. This reference should read "U.S.-Colombia." The sentence in full should state, "Millon Air's authority to provide U.S.-Colombia scheduled service is set forth in its certificate of public convenience and necessity, which grants extensive scheduled routes throughout Central and South America, via intermediate and beyond points."
Counsel: Suzette Matthews, 540-364-3470
Atlas Air, Inc. (Exemption, US-Colombia All-Cargo)
OST-97-2876 | September 26, 1997
Consolidated Reply of Atlas Air
The answers filed to Atlas' application form no basis for delay or denial of the exemption and reallocation Atlas seeks. A valuable right to operate U.S.-Colombia cargo service has remained dormant for almost a year, and Atlas is ready, willing, and able to provide additional, U.S.-flag service in the market. The Department's policy of maximizing scarce bilateral rights should be controlling, and the Department should process and grant Atlas' application expeditiously.
Counsel: Verner Liipfert, William Evans, 202-371-6000
Atlas Air, Inc. (Exemption, US-Colombia Scheduled All-Cargo)
OST-97-2876 | December 9, 1997
Motion of
Atlas for Expedited Treatment
Counsel: Verner Liipfert, William Evans, 202-371-6000
Atlas Air, Inc. (Exemption, US-Colombia Scheduled All-Cargo / Reallocation of Designation)
OST-97-2876 | December 18, 1997
Fine Air sympathizes with Atlas' and Polar's frustration at their inability to obtain scheduled authority to serve the U.S.-Colombia market; Fine Air has felt this same frustration since May 1994. Moreover, Fine Air readily agrees that Millon has now had ample time to demonstrate its ability to recommence U.S.-Colombia services; the public interest demands that Millon's designation be reallocated. But there can be no doubt that the most appropriate and deserving recipient for Millon's authority is Fine Air, whose entry to the U.S.-Colombia market has been unfairly delayed by over three and a half years.
Counsel: Wilmer Cutler, Jeffrey Shane, 202-663-6000
US-Colombia All-Cargo Services - (for exemption and/or reallocation of authorization )
Order 98-2-24 | OST-98-3543 | Issued February 23, 1998 | Served February 26, 1998
Order on Replacement Service and to Show Cause
By this order, we have decided to replace Millon Air, Inc., as one of the six U.S. carriers authorized to provide U.S.-Colombia scheduled all-cargo services, and we tentatively select Atlas Air, Inc., to provide scheduled foreign air transportation of property and mail between Miami, Florida, on the one hand, and Barranquilla, Bogota, and Call, Colombia, on the other hand.
By: Patrick Murphy
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
