OST-97-2912
Home | OST Filings by Number | OST Orders
and Notices | 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-97-2912
Polar Air Cargo, Inc. (Exemption, US-Colombia Scheduled All-Cargo)
OST-97-2912 | September 17, 1997
Polar Air urges the Department to grant its exemption application to enable it to make use of the now-dormant U.S. carrier designation to offer U.S. carrier scheduled lift to the U.S. shipping community. Polar Air can begin services quickly by linking its Colombia services to its existing scheduled operations. Polar Air's B-747 widebody freighters, operating three times weekly, will provide valuable new lift for U.S. shippers and consignees and establish a viable U.S. carrier presence in Colombia.
Attachment A - Fuel Consumption | Service List
Counsel: Ginsburg Feldman, Alfred Eichenlaub, 202-637-9034
Polar Air Cargo, Inc. (US-Colombia Scheduled All-Cargo)
OST-97-2912 | September 23, 1997
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. This certificate is not subject to a dormancy condition. Prior to the Ecuador crash, Millon Air had a long-standing--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
Polar Air Cargo, Inc. (Exemption, US-Colombia Scheduled All-Cargo)
OST-97-2912 | October 2, 1997
Polar's touted focus on "traditional common carriage, individually waybilled, scheduled service" is not a significant benefit in the U.S.-Colombia cargo market. Up to six U.S.-flag, scheduled all-cargo carriers can carry such traffic, as can combination carriers. Polar's restoration of a Flying Tiger-like "competitive presence" may echo history and satisfy its customers in other markets. However, consolidators and multinational freight forwarders dominate the U.S.-Colombia market today, and they seek the frequent, high-capacity, dedicated service Atlas intends to provide.
Counsel: Verner Liipfert, William Evans, 202-371-6000
Polar Air Cargo, Inc. (Exemption, US-Colombia Scheduled All-Cargo)
OST-97-2912 | October 14, 1997
Consolidated Reply of Polar Air Cargo
Unless the Department has reason to believe that Millon is likely to recommence service in the immediate future, it should authorize another U.S. carrier to operate under those rights. Polar Air, which has been awaiting that opportunity for over two years, and which is the only applicant proposing to offer traditional scheduled all-cargo air transportation open to all forwarders, consolidators and shippers, would make the best use of that authority.
Atlas, the other applicant for the authority now held by Millon, claims that it should be favored over Polar Air for two reasons: first, it argues that its aircraft are capable of carrying more freight than Polar Air's out of Bogota; second, it asserts that it will operate a daily service whereas Polar Air will commence service on a three-times-per-week basis. Atlas dismisses the fact that it is not a carrier specializing in the traditional common carriage of air freight, and it does not refute Polar Air's contention that Atlas would operate what is essentially a regular charter service for a consolidator with close ties to Fast Air, a Chilean carrier with whom Atlas has two long-term wet-lease contracts.
The lengthy description in the "Strategy" section of the most recent Atlas 10-K makes it quite clear that Atlas is not a company dedicated to, or even interested in providing common carriage services to the broader air freight market.
Counsel: Ginsburg Feldman, Alfred Eicenlaub, 202-637-9034
Polar Air Cargo, Inc. (Exemption, US-Colombia)
OST-97-2912 | October 22, 1997
Motion for Leave to File and Surreply of Atlas Air
For the record, Atlas does not intend to offer U.S.-Colombia scheduled service exclusively to any single consolidator, forwarder, or other customer. Atlas does not have an exclusive arrangement with Fast Air, a company associated with Fast Air, or any other potential customer to provide U.S.-Colombia lift on the scheduled service Atlas proposes. What Atlas does have is a strong array of existing customers and contacts throughout South America that will support frequent, scheduled Atlas service in this market. There is no magic to Polar's invocation of "traditional common carriage" as a benefit -- what counts in a limited-entry market is the ability to maximize a scarce bilateral resource. Atlas' attention to the large multinational consolidators and forwarders operating in the U.S.-Colombia market will best use the U.S.-Colombia authority at issue.
Polar's discussion of operational frequency speaks volumes about its approach to U.S.-Colombia traffic. Atlas anticipates that a substantial portion of its northbound traffic will consist of agricultural products and other perishables. These commodities grow seven days a week, and packing and shipping facilities handling them do not arbitrarily close one, two, or four days a week (like Polar's service would). If Polar would limit the scope of its customer base only to companies that tender traffic three or five days a week, Atlas respectfully submits that valuable U.S.-Colombia rights would be better used by Atlas.
Counsel: Verner Liipfert, William Evans, 202-371-6000
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 Number | OST Orders
and Notices | 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
