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OST-1998-3770
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Aeropostal Alas de Venezuela, C.A. / Linea Aeropostal Venezolana, C.A. - LAV
OST-1998-3770 - Exemption - Venezuela-US Scheduled Combination | 44068 | 46979
April 24, 1998
Application for Exemption and/or Transfer of Exemption Authority and Motion to Shorten Answer Period
Requests that the Department shorten the Answer Period to May 1, 1998 as requested herein and issue it an exemption to the extent necessary to authorize it to: (1) engage in scheduled foreign air transportation of persons, property and mail between: a) the coterminal points Caracas and Porlamar, Venezuela, and San Juan, PR; and b) Caracas, Venezuela and the Orlando, FL and Atlanta, GA, via the intermediate point Aruba, together with the authority to operate charters pursuant to 14 C.F.R. Part 212; and/or (2) transfer from the predecessor company Linea Aeropostal Venezolana, C.A. (LAV) to New Aeropostal the scheduled route authorities previously held by LAV. In the alternative, Applicant requests such other, further, or different relief as the Department may deem appropriate.
Answers are due by May 1, 1998 - Will Poll
Counsel: Pierre Murphy, Elizabeth Collins, 202-872-1679
OST-1998-3770 - Exemption - Venezuela-US Scheduled Combination | 44068 | 46979
May 1, 1998
Answer of Greater Orlando Aviation Authority in Support for Exemption
On average, nearly 300 visitors arrive in Orlando from Venezuela every day. During the calendar year 1996, 444,276 visitors from Venezuela arrived in the United States. Of these visitors, 80.9% visited Florida, and 24.2% visited Orlando. Of the Venezuelans visiting Orlando, 99.2% arrived through gateways other than Orlando. The service proposed by New Aeropostal will generate additional international visitors to Orlando, many of which may not have otherwise visited Orlando. The number of visitors to Orlando is clearly sufficient to support nonstop or one-stop direct jet service between Caracas and Orlando.
Counsel: Preston Gates, Jonathan Blank, 202-628-1700
Answer of The Government of Puerto Rico
Puerto Rico is extremely pleased that Aeropostal has undergone successful financial reorganization and is contemplating the possibility of San Juan service. Even though Aeropostal has not presented a concrete San Juan service proposal or announced a firm start-up date, the Department should grant the requested San Juan authority expeditiously. That action will facilitate and, indeed, encourage Aeropostal's commencement of San Juan operations.
Counsel: Verner Liipfert, John Merrigan
May 15, 1998
Exemption from 49 U.S.C. 41301 to conduct scheduled foreign air transportation of persons, property and mail between (1) Caracas and Porlamar, Venezuela, and San Juan, PR; and (2) Caracas and Orlando FL and Atlanta, GA, via the intermediate point Aruba; and charters pursuant to 14 CFR 212 of the Department's regulations.
Applicant Rep: Pierre Murphy, 202-872-1679
May 27, 1998
Amendment No. 1 to Application for Exemption Authority
In addition to the direct and significant damage the FAA's IASA program has already caused carriers such as Aeropostal, the FAA seems now to be engaging in micromanagement of the economic regulation and bilaterally-required authorities of the carriers affected by the FAA's IASA program. Aeropostal is a substantial operating carrier in its own right, flying to ten (10) countries in the region and operating a fleet of nine (9) DC-9 aircraft, with additional A-3 10 and A-320 aircraft to be delivered. The FAA's unilateral ban has no effect on these non-U.S. operations. But, as a result of FAA fiat, Aeropostal, and all Category 2 new entrant carriers like it, cannot fly their aircraft to the U.S. Pursuant to the DOT and FAA's own definitions and policies, Aeropostal is therefore obliged to wet lease from U.S. §401/Part 121 carriers.
Counsel: Pierre Murphy, Elizabeth Collins, 202-872-1679
Filed April 24, 1998 | Issued May 15, 1998
Notice of Action - Corrected Copy
In keeping with our policy in granting Venezuelean carriers charter authority, this Notice of Action Taken is corrected to add the condition requiring Aeropostal to obtain our approval in the form of a statement of authorization before operating any charter trips in the U.S.-Venezuela market, as provided for in section 212.4(e). (See Orders 88-8-15 and 81-5-44.) We note that, under 14 CFR 212.4, all foreign carriers are required to obtain a statement of authorization to engage in Fifth Freedom charter flights to and from the United States. 2 Aeropostal stated that it intends to initiate its U.S.-Venezuela operations by placing its designator code on flights operated by Delta Air Lines, Inc. between Atlanta and Caracas. Aeropostal acknowledges that it is not permitted to operate to the U.S. with its own aircraft and that therefore the proposed code-share arrangement with Delta on Delta's existing Atlanta-Caracas scheduled service is the only way Aeropostal can operate to the U.S. (Application at 2.) 3 We concurrently granted Delta's request for a statement of authorization to conduct the proposed Atlanta-Caracas code-share operations on behalf of Aeropostal.
Applicant Rep: Pierre Murphy, 202-872-1679
June 8, 1998
Answer of The Government of Puerto Rico to Amendment No. 1
Initially, when Aeropostal applied for exemption authority to Atlanta, Orlando and San Juan, it stated that it intends to provide San Juan-Venezuela (and Orlando-Venezuela) service but did not offer a specific service proposal or start-up date. The Government of Puerto Rico supported Aeropostal's request, noting in its May 1 answer (at 2) that favorable DOT action would "facilitate, and indeed, encourage Aeropostal's commencement of San Juan operations." However, by May 15, 1998 Notice of Action Taken, the Department authorized Aeropostal to conduct "the operations for which it had firm plans" and deferred ruling on the San Juan and Orlando aspects of the carrier's application.
Counsel: Verner Liipfert, John Merrigan
June 11, 1998
Amendment No. 2 to Application for Exemption Authority
On May 27, 1998 Aeropostal filed an Amendment #I to Application for Exemption Authority requesting that the Department grant the remainder of the authority applied for herein, citing firm plans to operate on the Caracas/Porlamar - San Juan and Caracas-Orlando routes pursuant to a wet lease with TransMeridian Airlines ("TransMeridian"). Upon grant of the authority requested herein, Aeropostal similarly intends to commence operations as soon as possible on the additional Caracas - Miami route pursuant to the wet lease from TransMeridian or another duly qualified and supervised U.S. or foreign carrier as soon as possible.
On page three of this Amendment #2, we refer to Attachment #1 from the Government of Venezuela. Due to administrative error, we did not include the necessary Attachment #1 to which we refer. Attached herewith please find an original and seven (7) copies of Attachment #1 to be included with this Amendment to the Application of Aeropostal Alas de Venezuela, C.A.
Attachment 1: Government of Venezuela Correspondence
Answers are due by June 26, 1998
Counsel: Pierre Murphy, Elizabeth Collins, 202-872-1679
Filed May 27, 1998 | Issued June 12, 1998
Amend exemption from 49 U.S.C. 41301 by granting the deferred portion of its application: scheduled foreign air transportation of persons, property and mail between (1) Caracas and Porlamar, Venezuela, and San Juan, PR; and (a) Caracas and Orlando, FL and Atlanta, GA, via the intermediate point Aruba; and charters pursuant to 14 CFR 21o of the Department's regulations. using aircraft wet leased from a duly authorized and properly supervised carrier.
Applicant Rep: Pierre Murphy, 202-872-1679
June 23, 1998
Aeropostal is in the process of contracting with the Airline Publishing Company ("APC") to prepare and file the tariffs required under 49 U.S.C.§41504. Ordinarily, the tariffs would have been filed in time to permit the loading of the fares into the computer at least thirty (30) days in advance of the first flight. Due to administrative delays, however, the tariffs have not yet been loaded into the computer, and Aeropostal requests that it be permitted to operate for forty-five (45) days without tariffs being on file.
Counsel: Pierre Murphy, 202-872-1679, pmurphy@lopmurphy.com
Filed June 11, 1998 | Action June 24, 1998
Amend exemption from 49 U.S.C. 41301, last granted June 12. 1998, to add authority to conduct scheduled foreign air transportation of persons, property and mail between (1) Venezuela and Miami, FL; and (a) Venezuela and New York, NY/Newark, NJ, using aircraft wet leased from a duly authorized and properly supervised carrier.
Applicant Rep.: Sheryl Israel, 202.663.8312
| OST-1998-3770 - Exemption - Venezuela-US Scheduled Combination | May 7, 1999 | Application for Renewal of Exemption Authority | Venezuela-US Scheduled Combination |
| Service List |
Hereby applies for renewal of its exemption authorities to provide foreign scheduled transportation of persons, property and mail on the following routes:
Counsel: Pierre Murphy, 202-872-1679
| OST-1998-3770 - Exemption - Venezuela-US Scheduled Combination | Issued July 19, 1999 | Notice of Action Taken | United States-Venezuela |
Renew exemption from 49 U.S.C. 41301 to conduct scheduled foreign air transportation of persons, property
and mail between (1) Caracas/Porlamar, Venezuela, and San Juan, PR; (2) Caracas and Orlando, FL/Atlanta, GA, via the intermediate point Aruba; (3) Venezuela and Miami, FL; (4) Venezuela (except Maracaibo) and New York, NY/Newark, NJ; and charters pursuant to 14 CFR 212 of the Department’s regulations, using aircraft wet leased from a duly authorized and properly supervised carrier.By: Paul Gretch
| OST-1998-3770 - Exemption - Venezuela-US Scheduled Combination | July 7, 2000 | Application for Renewal of Exemption Authority | Venezuela-US Scheduled Combination |
| Service List |
Between Caracas and Porlamar, Venezuela and San Juan, PR; and Between Caracas, Venezuela and Orlando, FL and Atlanta, GA via the intermediate point Aruba; and Between a point or points in Venezuela and Miami, FL; and Between a point or points in Venezuela (except Maracaibo) and New York, NY/Newark, NJ; and to conduct charters. Aeropostal has successfully been operating a variety of Venezuela -U.S. scheduled services pursuant to a code share with Delta Airlines or a wet lease with duly authorized and properly supervised Category I country carriers since May of 1998. Aeropostal continues to be fit, willing, and able to operate the scheduled service referred to herein.
Counsel: Pierre Murphy, 202-872-1679
| OST-1998-3770 - Exemption - Venezuela-US Scheduled Combination | Filed May 7, 2000 Issued August 24, 2000 |
Notice of Action Taken | U.S.- Venezuela Scheduled Combination |
Renew exemption to conduct scheduled foreign air transportation of persons, property and mail between (1) Caracas/Porlamar, Venezuela, and San Juan, PR; (2) Caracas and Orlando, FL/Atlanta, GA, via the intermediate point Aruba; (3) Venezuela and Miami, FL; (4) Venezuela (except Maracaibo) and New York, NY/Newark, NJ
By: Paul Gretch
| OST-1998-3770 - Exemption - Venezuela-US Scheduled Combination | June 8, 2001 | Application for Renewal of Exemption Authority | Venezuela-US Scheduled Combination |
| Service List |
Counsel: Pierre Murphy, 202.872.1679
| OST-1998-3770 - Exemption - Venezuela-US Scheduled Combination | Filed June 8, 2001 Issued July 3, 2001 |
Notice of Action Taken | U.S.- Venezuela Scheduled Combination |
Amend exemption, last granted August 24, 2000, to add authority to conduct scheduled foreign air transportation of persons, property and mail between Caracas, Venezuela, and Fort Lauderdale, FL, using aircraft wet leased from a duly authorized and properly supervised carrier.
By: Paul Gretch
| OST-1998-3770 - Exemption - Venezuela-US Scheduled Combination | August 3, 2001 | Application for Renewal of Exemption Authority | U.S.- Venezuela Scheduled Combination Service |
| Service List |
Hereby applies for renewal of its exemption authorities to provide foreign scheduled transportation of persons, property and mail on the following routes: Between Caracas and Porlamar, Venezuela and San Juan, PR; and Between Caracas, Venezuela and Orlando, FL and Atlanta, GA via the intermediate point Aruba; and Between a point or points in Venezuela and Miami, FL; and Between a point or points in Venezuela (except Maracaibo) and New York, NY/Newark, NJ; and to conduct charters pursuant to 14 C.F.R. §212 of the Department's regulations.
Aeropostal understands that due to the FAA's assessment of Venezuela as a Category 2 country, all U.S. - Venezuela operations must be conducted using aircraft wet leased from a duly authorized and properly supervised carrier, or pursuant to a code-share with a duly authorized and properly supervised carrier.
Aeropostal has for a number of years now successfully been operating a variety of Venezuela -U.S. scheduled services pursuant to a code share with Delta Airlines or a wet lease with duly authorized and properly supervised Category 1 country carriers. Aeropostal continues to be fit, willing, and able to operate the scheduled service referred to herein.
Counsel: Pierre Murphy, 202.872.1679
| OST-1998-3770 - Exemption - Venezuela-US Scheduled Combination | Filed August 3, 2001 Issued September 6, 2001 |
Notice of Action Taken | U.S.- Venezuela Scheduled Combination Service |
By: Paul Gretch
| OST-1998-3770 - Exemption - Venezuela-US Scheduled Combination | June 13, 2002 | Application for Renewal of Exemption Authority | Caracas-Fort Lauderdale Scheduled Combination |
| Service List |
Counsel: Pierre Murphy, 202-822-8050
| OST-1998-3770 - Exemption - Venezuela-US Scheduled Combination | Filed June 11, 2002 Issued July 5, 2002 |
Notice of Action Taken | Caracas-Fort Lauderdale Scheduled Combination |
Renew exemption from 49 U.S.C. 41301 to conduct scheduled foreign air transportation of persons, property and mail between Caracas, Venezuela, and Fort Lauderdale, FL, using aircraft wet leased from a duly authorized and properly supervised carrier.
By: Paul Gretch
| OST-1998-3770 - Exemption - Venezuela-US Scheduled Combination | August 28, 2002 | Application for Renewal of Exemption Authority | U.S.- Venezuela Scheduled Combination |
| Service List |
By a Notice of Action Taken dated May 15, 1998, as amended by Notices of Action Taken dated June 12, 1998, June 24, 1998, and August 24, 2000, Aeropostal was granted scheduled combination exemption authority on the routes described above. This Exemption Authority was most recently renewed by Notice of Action Taken dated September 6, 2001 for a period of one (1) year and therefore will expire by its own terms on September 6, 2002. Aeropostal therefore requests that its authority to conduct scheduled combination service on these routes be extended by a further year. Aeropostal has for a number of years now successfully been operating a variety of Venezuela -U.S. scheduled services pursuant to a code share with Delta Airlines or a wet lease with duly authorized and properly supervised Category 1 country carriers. Aeropostal continues to be fit, willing, and able to operate the scheduled service referred to herein.
Respectfully requests that the Department renew its exemption authority to the extent necessary to enable it to continue to provide scheduled transportation of persons, property and mail on the following routes: (1) between Caracas and Porlamar, Venezuela and San Juan, PR; (2) between Caracas, Venezuela and Orlando, FL and Atlanta, GA via the intermediate point Aruba; (3) between a point or points in Venezuela and Miami, FL; (4) Between a point or points in Venezuela (except Maracaibo) and New York, NY/Newark, NJ; and (5) to conduct charters pursuant to 14 C.F.R. §212 of the Department's regulations.
Counsel: Aeropostal, Pierre Murphy, 202.822.8050, pmurphy@lopmurphy.com
| OST-1998-3770 - Exemption - Venezuela-US Scheduled Combination | September 19, 2002 | Notice of Action Taken | Exemption- U.S.-Venezuela |
Renew exemption from 49 U.S.C. 41301 to conduct scheduled foreign air transportation of persons, property and mail between (1) Caracas/Porlamar, Venezuela, and San Juan, PR; (2) Caracas and Orlando, FL/Atlanta, GA, via the intermediate point Aruba; (3) a point or points in Venezuela and Miami, FL; (4) a point or points in Venezuela (except Maracaibo) and New York, NY/Newark, NJ; and (5) charters pursuant to 14 CFR 212 of the Department's regulations; using aircraft wet leased from a duly authorized and properly supervised carrier.
By: Paul Gretch
July 1, 2003
Application for Renewal of Exemption Authority
Application of Aeropostal Alas de Venezuela, S.A. pursuant to 49 USC Section 40109 and 14 CFR Part 302.4, requesting a renewal of exemption from 49 USC Section 41301 to engage in scheduled combination air transportation between Caracas, Venezuela, on the one hand, and Fort Lauderdale, Florida on the other hand; and charters pursuant to 14 CFR Part 212. Aeropostal has for a number of years now successfully been operating a variety of Venezuela -U.S. scheduled services pursuant to wet leases with duly authorized and properly supervised Category I country carriers. Aeropostal continues to be fit, willing, and able to operate the scheduled service referred to herein.
Counsel: Aeropostal, Pierre Murphy, 202-776-3980, pmurphy@lopmurphy.com
August 25, 2003
Application for Renewal of Exemption
Pursuant to the terms of 49 U.S.C. §40109 and §41301, and the Economic and Procedural Regulations of the Department of Transportation, Aeropostal Alas de Venezuela, C.A. hereby applies for renewal of its exemption authorities to provide foreign scheduled transportation of persons, property and mail on the following routes:
Aeropostal understands that due to the FAA's assessment of Venezuela as a Category 2 country, all U.S. - Venezuela operations must continue to be conducted using aircraft wet leased from a duly authorized and properly supervised.
Counsel: Pierre Murphy, 202-776-3980, pmurphy@lopmurphy.com
Filed July 1, 2003 | Issued August 26, 2003
Exemption from 49 USC section 41301 to permit the applicant to continue to conduct scheduled foreign air transportation of persons, property and mail, between Caracas, Venezuela, and Ft. Lauderdale, Florida, using aircraft wet leased from a duly authorized and properly supervised carrier.
By: Paul Gretch
Filed August 25, 2003 | Issued September 17, 2003
Exemption from 49 U.S.C. 41301 to permit the applicant to continue to conduct, by wet lease of equipment from other carriers (see below), scheduled foreign air transportation of persons, property, and mail between: 1) The Venezuelan coterminal points Caracas and Porlamar, and San Juan, Puerto Rico; 2) Caracas, Venezuela, and the U.S. coterminal points Orlando, Florida, and Atlanta, Georgia, via the intermediate point Aruba; and 3) a point or points in Venezuela and Miami, Florida; and 4) a point or points in Venezuela (except Maracaibo) and New York, NY/Newark, NJ; and 5) charters to/from the United States pursuant to 14 CFR Part 212.
By: Paul Gretch
July 22, 2004
Application for Renewal of Exemption Authority
By a Notice of Action Taken dated August 26, 2003, Aeropostal was granted exemption authority on the Caracas, Venezuela -Ft. Lauderdale, FL route. See: Notice of Action Taken dated August 26, 2003, herein. This exemption authority was granted for a period of one (1) year and therefore will expire by its own terms on August 26, 2004. Aeropostal therefore requests that its authority to conduct scheduled combination service on this route be extended by a further year.
Counsel: Pierre Murphy, 202-776-3980, pmurphy@lopmurphy.com
August 20, 2004
Application for Renewal of Exemption Authority
Hereby applies for renewal of its exemption authorities to provide foreign scheduled transportation of persons, property and mail on the following routes:
• Between Caracas and Porlamar, Venezuela and San Juan, PR; and • Between Caracas, Venezuela and Orlando, FL and Atlanta, GA via the intermediate point Aruba; and • Between a point or points in Venezuela and Miami, FL; and • Between a point or points in Venezuela (except Maracaibo) and New York, NY/Newark, NJ; and • To conduct charters pursuant to 14 C.F.R. §212 of the Department's regulations.
Aeropostal understands that due to the FAA's assessment of Venezuela as a Category 2 country, all U.S. - Venezuela operations must continue to be conducted using aircraft wet leased from a duly authorized and properly supervised carrier, or pursuant to a code-share with a duly authorized and properly supervised carrier. Aeropostal has for a number of years now successfully been operating a variety of Venezuela -U.S. scheduled services pursuant to a code share with Delta Air Lines or a wet lease with duly authorized and properly supervised Category 1 country carriers.
Counsel: Pierre Murphy, 202-776-3980, pmurphy@lopmurphy.com
July 31, 2006
Amendment #1 for Renewal of Exemption - Lifting of Wet-Lease Condition
AeroPostal respectfully submits this Amendment #1 to AeroPostal's currently pending application for renewal of Exemption authority and hereby submits its application for authority to operate aircraft in its own right. AeroPostal seeks the elimination of the wet-lease condition currently imposed by the Department on AeroPostal in its award of various Venezuela-U.S. scheduled combination authorities.
AeroPostal has conducted all of its substantial Venezuela - U.S. scheduled services exclusively using the aircraft wet lease services of various authorized U.S. air carriers as required by the exemption condition. AeroPostal currently operates its authorized Venezuela - U.S. scheduled services with B-737-800, MD-80 and B-727-200 aircraft wet-leased from U.S. air carriers.
Due to the FAA's recent elevation of Venezuela to IASA "Category 1 " status, AeroPostal is therefore now permitted and now wishes to operate aircraft in its own right on its authorized Venezuela-U.S. scheduled services as soon as all FAA and DOT authorities have been amended and/or obtained. In light of this changed circumstance, therefore, AeroPostal hereby seeks a lifting of the wet-lease condition currently imposed on its exemption authority herein and grant of the deferred portion of its application.
Counsel: Pierre Murphy, 202-776-3980, pmurphy@lopmurphy.com
August 11, 2006
Motion of Falcon Air Express Bankruptcy Trustee for Extension of Time to File an Answer
Mr. Welt, as Trustee for Falcon, is under an obligation to the Bankruptcy Court and Falcon's creditors to take whatever action is necessary to preserve the carrier. To this end, he is considering filing an answer in opposition to the request by Aeropostal to be released from its obligation to use wet leased capacity to serve the United States. Aeropostal owes Falcon over $6 million in unpaid wet lease charges - a fact that significantly contributed to the necessity of filing for Chapter 11 relief in May 2006.
Since proceedings in this case are closely supervised by the Honorable A.J. Cristol in the U.S. Bankruptcy Court, Southern District of Florida, however, the Trustee will have to request an order of the Court expanding the scope of undersigned counsel's employment, authorizing him to prepare and file an answer to this effect. The grounds for the Trustee's position will be laid out in some detail in this answer. The Trustee has requested the Court to hear this motion at the next scheduled status conference, which is scheduled for August 17, 2006.
As a result of the uncertainty as to when the Court will issue the requested order, it will obviously be impossible for the Trustee to file his answer by August 15. Mr. Welt, accordingly, requests that the Department permit him to file his by August 29, or such date as the Court may direct counsel to file the answer - an extension of at most two weeks.
Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513
Served August 15, 2006
Notice Extending Answer Period
On August 20, 2004, Aeropostal Alas de Venezuela, C.A. filed an application for renewal of its exemption authority to provide scheduled and charter foreign air transportation of persons, property, and mail between certain points in Venezuela and certain points in the United States. The application remains pending. On July 31, 2006, Aeropostal filed an amendment to that application requesting that its exemption authority be amended to the extent that Aeropostal would be permitted to conduct operations using its own aircraft and crews.
Under the Department’s regulations, answers to Aeropostal’s amended exemption renewal application would normally be due August 15, 2006, and replies would be due August 24, 2006. On August 11, Kenneth A. Welt, Bankruptcy Trustee for the estate of Falcon Air Express. Inc., filed a motion in the above-captioned Docket requesting an extension of time until August 29 to file an answer to Aeropostal’s amended application.
On August 15, 2006, Aeropostal orally objected to the motion, stating that the requested extension would interpose a delay in the processing of the application that would prevent Aeropostal from taking full advantage of the bilaterally-agreed rights at issue in this proceeding, and questioning whether any arguments likely to be raised by the movant would affect the result.
Taking all factors into account, and in the circumstances presented, we have decided to grant in part the request for an extension to the answer period. Specifically, acting under authority assigned in 14 CFR 385.13(p), we shall make answers to the Aeropostal amended renewal application for exemption authority due no later than Tuesday, August 22, 2006, with replies due no later than Thursday, August 31, 2006. To the extent not granted, we deny the movant’s motion.
By: Paul Gretch
August 22, 2006
Answer of Kenneth A. Welt, Bankruptcy Trustee for the Estate of Falcon Air Express
The Trustee believes that if Aeropostal's application is granted, such that it is permitted to operate its own aircraft, it will abandon any and all obligations it has to pay the bankruptcy estate the debt that it owes, leaving creditors - including various departments, agencies and instrumentalities of the United States -- with very little remedy in order to receive a meaningful distribution under the Bankruptcy Code. The Chapter 11 Trustee believes that Aeropostal's blatant disregard of its financial obligations raises serious questions as to the carrier's compliance disposition, and therefore its qualifications to hold a foreign carrier permit and exemption authority from the Department.
Questions have been raised, moreover, about the role of the Venezuelan government in this matter. Shortly before the Trustee's appointment, the Internal Revenue Service, in an attempt to collect the taxes owed by Falcon, placed a levy on Aeropostal's funds. The Central Bank of Venezuela, however, refused to pay any funds to the IRS. In order to free up these funds for payment to Falcon, the Trustee was able to persuade the IRS to lift the levy. Nevertheless, as shown above, very little money has been forthcoming since that time. Aeropostal has averred that the Central Bank is impeding its ability to agree to an expedited repayment schedule, as the Trustee has requested.
Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513
August 28, 2006
Reply of Aeropostal - Bookmarked | Word
On July 31, 2006, Aeropostal Alas de Venezuela C.A. filed Amendment #1 to its Application for Renewal of an Exemption requesting that the Department remove a condition requiring that operations to the United States be conducted by wet leasing aircraft. In what is described as an “extraordinary step,” the Trustee in Bankruptcy for the Estate of Falcon Air Express Inc. opposed this request as being contrary to the financial interests of a U.S. air carrier and its creditors.
“Extraordinary” is indeed the correct characterization. The Department of Transportation lacks legal authority to deny Aeropostal’s request to remove an unnecessary condition on its exemption authority or to remedy the Trustee’s wide-ranging complaints. A decision to reject or delay Aeropostal’s fully justified request would substantially undermine the Department’s credibility with other governments and erode the precepts of international law from which the U.S. airline industry derives significant economic benefits.
Counsel: Susan Jollie, 703-354-8450, sjollie@cox.net
September 5, 2006
Motion and Surreply of Bankruptcy Trustee for the Estate of Falcon Air Express - Bookmarked
The Trustee believes that the Department should defer action on Aeropostal's request until expiration of the Falcon-Aeropostal wet lease agreement on February 17, 2007, or until repayment of Aeropostal's outstanding debt, whichever occurs first. However, the Department may wish to defer to the Bankruptcy Court, which is considering how to handle the matter of the wet lease. Aeropostal has filed a motion to be released from the automatic stay provision of Chapter 11 to enable it to terminate the wet lease with Falcon. That motion will be the subject of a preliminary hearing on September 7, 2006, at which time the Court may make a determination on the motion or reserve a decision pending further findings of fact. The Trustee is concerned that a Department decision to amend the carrier's authority may be taken as prejudging the request now pending in Court.
Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513
September 12, 2006
Re: Update on Bankruptcy Court for Estate of Falcon Air Express
We would like to further advise the Department that the court has continued the matter, and has instructed the parties to present oral and written evidence at a hearing to be conducted in court on September 21. A decision on the motion will be made at that time, or thereafter. Judge Cristol did, however, indicate that he would be disposed to grant Aeropostal's motion at any time, provided that the carrier pay the debt of $5.8 million dollars owed to Falcon.
Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513
October 31, 2006
Motion of Bankruptcy Trustee for the Estate of Falcon Air Express to Withdraw Objection
Kenneth A. Welt, the Chapter 11 Trustee in the bankruptcy of Falcon Air Express, Inc., hereby requests leave to withdraw his objection, filed August 22, 2006, to the application of Aeropostal Alas de Venezuela, C.A. for amendment of its foreign carrier exemption authority to remove the "wet lease" condition. The Trustee has reached a settlement agreement with Aeropostal that clears the way for payment of the majority of the arrearages owed to Falcon, and extends the expiration of the wet lease arrangement being operated on Aeropostal's behalf. The Creditors' Committee has agreed to the arrangement, and the Bankruptcy Court has now issued an order approving the settlement. That order takes effect October 31, 2006.
Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513
Filed July 22 and August 20, 2004 | Amended July 31, 2006 | Issued November 16, 2006
Renewal of exemption from 49 USC § 41301 to permit the applicant to conduct scheduled foreign air transportation of persons, property, and mail between: 1) the Venezuelan coterminal points Caracas and Porlamar, on the one hand, and San Juan, Puerto Rico, on the other hand; 2) Caracas, Venezuela and the U.S. coterminal points Orlando, Florida, and Atlanta, Georgia, via the intermediate point Aruba; 3) a point or points in Venezuela and Miami, Florida; 4) a point or points in Venezuela (except Maracaibo) and New York, New York/Newark, New Jersey; 5) Caracas, Venezuela, and Fort Lauderdale, Florida; and 6) charter operations in accordance with 14 CFR Part 212. The applicant also requests amendment of that authority to allow the carrier to conduct these operations using its own aircraft and crews.
At the time that Aeropostal flied its July 22, 2004 and August 20, 2004 renewal applications, its homeland of Venezuela was assessed in Category 2 of the Federal Aviation Administration International Aviation Safety Assessment program. Accordingly, Aeropostal's exemption authority was limited to operations conducted only by wet lease from a duly authorized and properly supervised U.S. or foreign air carrier. In April of 2006, the FAA upgraded the IASA status of Venezuela to Category 1. On July 31, 2006, Aeropostal flied an amendment to its pending renewal applications, requesting the Department to eliminate the wet lease condition placed on its authority. The FAA has since advised us that it knows of no reason why we should act unfavorably on the applicant's amended request.
By: Paul Gretch
November 15, 2007
Application for Renewal of Exemption Authority
Aeropostal Alas de Venezuela, C.A. respectfully requests that the Department renew its exemption authority to the extent necessary to enable it to continue to provide scheduled transportation of persons, property and mail on the following routes: (1) between Caracas and Porlamar, Venezuela and San Juan, PR; (2) between Caracas, Venezuela and Orlando, FL and Atlanta, GA via the intermediate point Amba; (3) between a point or points in Venezuela and Miami, FL; (4) between a point or points in Venezuela (except Maracaibo) and New York/Newark, NJ; (5) between Caracas, Venezuela and Fort Lauderdale, FL; and (6) to conduct charters pursuant to 14 C.F.R. 212.
Counsel: Pierre Murphy, 202-776-3980, pmurphy@lopmurphy.com
November 29, 2007
Application for Renewal of Exemption Authority - Correction
To correct an error on the cover page of AeroPostal Alas de Venezuela, C.A.'s Exemption Renewal Application filed herein November 15, 2007, AeroPostal respectfully seeks leave to file the corrected cover page attached. As the Department has previously been advised, Mr. Ramiz ceased being President of AeroPostal February 9 of 2007 when he resigned the presidency, and a cover sheet from several years ago was used in error. The President of AeroPostal is Dr. Erwin Genie.
Counsel: Pierre Murphy, 202-776-3980, pmurphy@lopmurphy.com
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