OST-97-3266
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OST-97-3266
Fine Air Services, Inc. (Reallocation of Disgnation and Scheduled All-Cargo Authority, US-Colombia)
OST-97-3266 | December 18, 1997
Application
for Reallocation of Designation and, to the Extent Necessary, Scheduled All-Cargo
Fine Air hereby requests that the Department reallocate to it the frequency (and, to the extent necessary, the other U.S.-Colombia economic authority) held by Millon Air to conduct scheduled all-cargo services in the U.S.-Colombia market. The substitution of Fine Air for Millon Air is consistent with the 1996 MOC. Fine Air would promptly and fully utilize the designation to commence scheduled services in this market in which it has had a long-standing interest.
Counsel: Wilmer Cutler, Jeffrey Shane, 202-663-6000
Fine Air Services, Inc. (US-Colombia Scheduled All-Cargo)
OST-97-3266 | December 31, 1997
Atlas has proposed to serve the market daily with wide-body B-747 aircraft; Fine Air has not proposed any particular level of service or equipment. If Fine Air proposes to operate daily DC 8-54 and/or DC-8-61 service, as indicated in its 1994 exemption application, it simply will not be able to offer the capacity that the market requires. The load factors experienced by Atlas in providing daily, and sometimes more frequent, B-747 service for LAS clearly has demonstrated that wide-body service is in high demand by both U.S. and Colombian shippers. Consequently, whatever "justice" might support Fine Air's "first in time" argument, the market as well as the Department's objective of maximizing use of bilateral rights in restricted markets, demand that Atlas be the successful applicant.
Counsel: Verner Liipfert, William Evans, 202-371-6000
The Department has the right to designate an additional U.S. carrier on September 1, 1998, as well as to replace Millon before that date. In addition to Polar Air and FAS, Atlas Air has expressed an interest in serving Colombia. Polar Air opposes any award of the Millon designation to either FAS or Atlas on the basis of the present record. Instead, the Department should grant Polar Air's instant application to replace Millon and decide between FAS and Atlas as to which of them should receive the September 1, 1998, opportunity. Polar Air's selection will assure an immediate replacement of Millon's services. In the alternative, the Department should consolidate all pending applications and make two selections for U.S.-Colombia service -- one for immediate replacement of Millon and one for the September 1, 1998, opportunity.
Counsel: Ginsburg Feldman, Alfred Eichenlaub, 202-637-9034
Fine Air Services, Inc. (US-Colombia)
OST-97-3266 | January 12, 1998
Contingent
Motion for Leave to File and Reply of Fine Air
Significantly, the one carrier most affected by Fine Air's application to reallocate Millon's U.S.-Colombia designation - namely, Millon - did not file any answer to Fine Air's application. Millon's failure to object to Fine Air's application must be treated by the Department as reflecting Millon's acquiescence in the proposed transfer of designations In any event, Fine Air understands that the plans of Millon's owners to sell the carrier (and its accompanying authority) have recently fallen through. The attached article from the January 6, 1998 edition of the Journal of Commerce quotes Millon's own attorney as confirming that "the deal is off" and, with respect to other prospective purchases, asking the reporter "Do you know anyone who wants to buy an airline?" It appears that (i) Millon, under its current ownership, will not reintroduce U.S.-Colombia service, and (ii) there is no basis to believe that new ownership is at hand. Further delay in reallocating the scarce designation -- based on the off-chance that Millon's current owners may be able to put together a new transaction that someday may result in the carrier using its designation again -- simply cannot be reconciled with the public interest.
Attachment: 'Sale Sign' Back at Millon Air as deal unravels - Journal of Commerce, 1/6/98
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
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