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OST-98-4911

American Airlines, Inc.

OST-98-4911 December 14, 1998 pdficon.gif (87 bytes)Application for Exemption US-Venezuela Points; Codesharing with Aeropostal Alas de Venezuela
    Service List  

American Airlines, Inc., under 49 USC 40109, hereby applies for exemption authorizing it to engage in foreign air transportation of persons, property, and mail between points in the United States and the following points in Venezuela: Barcelona, Barquisimeto, Maturin, Puerto Ordaz, San Antonio, and Valencia.

Counsel:  American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com


American Airlines, Inc.

OST-98-4911 December 15, 1998 pdficon.gif (87 bytes)Re:  Correction to Application Codeshare with Aeropostal

The first sentence of the last paragraph on page 2 of the captioned application, submitted on December 14, 1998, should be amended to read as follows: "American and Aeropostal are planning to implement their proposed codesharing services promptly following regulatory approval." We are serving this amendment on all persons named on the service list attached to American's initial application.

Counsel:  American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com


Aeropostal Alas de Venezuela, C.A. and American Airlines, Inc.

OST-98-4917
OST-98-4911
Undocketed
December 22, 1998 pdficon.gif (87 bytes)Consolidated Answer of Alas International Limited Venezuela-Dallas/Houston -
US-Venezuela Codesharing
document.gif (123 bytes)HTML
    Service List    
  Exhibits Added 12/24 Exhibit 1:  Non-Final Disposition of Alas Intl Ltd v. Nelson Ramiz et al    
    Exhibit 2:  Summons and Complaint    
    Exhibit 3:  Answer with Counterclaims
pp.1-21 | 22-54
   
    Exhibit 4:  First Amended Answer and Counterclaims of Defendant Valazquez Morales    
    Exhibit 5:  Reply to Counterclaims    
    Exhibit 6:  Dominican Affidavit (with Certified Translation)    

Alas international Limited ("Alas International") opposes the captioned applications, which involve a proposed code-sharing arrangement between American Airlines, Inc. and Aeropostal Alas de Venezuela ("Aeropostal"). As set forth below, the aircraft being operated by Aeropostal for domestic routes within Venezuela that would be included in the code-sharing arrangement are the subject of litigation in New York (New York State Supreme Court, County of New York Index No. 601817-97) which has reached an advanced stage. In the litigation there are disputes as to ownership of the aircraft, and the principals of Aeropostal, Mr. Nelson Ramiz ("Ramiz") and his wife Mrs. Haydhelen Velasquez Morales ("Velasquez"), are the subject of a finding in the New York Courts that they breached their fiduciary duties to transfer title and possession to said aircraft to Alas International and failed to return monies advanced to them by Alas International. Alas International claims to be entitled to ownership and possession of the aircraft. Consequently, it is not in the public interest to permit a code-sharing arrangement that would entail sales of tickets for passage on aircraft as to which Aeropostal's ability to control the aircraft is in serious doubt.

By:  David Massie for Alas


American Airlines, Inc. and Aeropostal Alas de Venezuela, C.A.

OST-98-4911
OST-98-4917
Undocketed
December 29, 1998 pdficon.gif (87 bytes)Consolidated Answer of Continental Airlines US-Venezuela Codeshare

While the American/Aeropostal code-share arrangement is comparable in concept and structure to the alliance announced by Continental and ASERCA, American and Aeropostal are proposing to serve more U.S. gateways, more U.S. points and more Venezuelan points under their code-share arrangement. (See the Joint Application of American Airlines. Inc. and Aeropostal Alas de Venezuela, C.A. dated December 14, 1998, for Statements of Authorization to Engage in Reciprocal Codesharing Services, at 1-2) Because American is already the dominant U.S. carrier in Latin America and Aeropostal is the largest Venezuelan airline, the Department should not approve the American/Aeropostal alliance unless it also approves the Continental/ASERCA alliance and gives Northwest underlying exemption authority to serve Venezuela by placing its code on Continental's flights. Continental/ASERCA and Continental/Northwest will act as a counterbalance to the American/Aeropostal alliance and compete effectively with American and Aeropostal on U.S.-Venezuela routes.

Counsel:  Continental and Crowell Moring, Bruce Keiner, 202-624-2500

OST-98-4911
OST-98-4917
Undocketed
December 29, 1998 pdficon.gif (87 bytes)Consolidated Answer of United Air Lines US-Venezuela Codeshare

In conclusion, United urges the Department to establish the principle of reciprocity with Venezuela for approval of code shares involving U. S., Venezuelan and third-country carriers. Based on the evidence available, it appears that Venezuela may be willing to grant reciprocal code-share authority to U. S. carriers. Assuming that to be the case, and assuming further that the Department receives satisfactory evidence of reciprocity directly from thegovernment of 'Venezuela, United has no objection to the Department's approving American'sand Aeropostal's applications. However, should the Department determine that full reciprocitywill not be available, then action on the American/Aeropostal applications should be deferred pending the conclusion of a comprehensive bilateral agreement between the U. S. and Venezuela governing code sharing in U. S.-Venezuela city pairs.

Counsel:  United and Kirkland Ellis, Jeffrey Manley, 202-879-5161, jeffrey_manley@kirkland.com


American Airlines, Inc. and Aeropostal Alas de Venezuela, C.A.

OST-98-4917
OST-98-4911
Undocketed
January 8, 1999 pdficon.gif (87 bytes)Motion for Additional Time to Reply to Answers of Alas Intl Ltd and Aerovias Venezolana Requests Extention until January 20, 1999 to Respond

Since the issues raised by Alas in its Answer require a detailed response involving a complete summary of the status of the Venezuelan, Dominican and New York legal proceedings referred to by Alas and since the seven (7) day answer period ran over the seasonal holiday period, a response by January 8 will not be possible. To enable a complete response to be filed, an extension until January 20, 1999 is therefore requested. This extension will enable complete and detailed affirmations to be prepared by the appropriate litigation counsel summarizing the Venezuelan, Dominican and New York legal proceedings to enable Aeropostal to respond to the charges of Alas and Avensa.

Counsel:  Pierre Murphy for Aeropostal, 202.872.1679


American Airlines, Inc. and Aerpostal Alas de Venezuela C.A.

OST-98-4911
OST-98-4917
Undocketed
January 11, 1999 pdficon.gif (87 bytes)Joint Reply of American Airlines and Aeropostal Alas de Venezuela US-Venezuela Codesharing document.gif (123 bytes)HTML

American Airlines, Inc. and Aeropostal Alas de Venezuela C.A., under 14 CFR 302.407, hereby submit this joint reply to the answers filed on December 29, 1998 by Continental Airlines, Inc., United Air Lines, Inc., and Polar Air Cargo, Inc. Aeropostal will separately reply to the answers submitted on December 22, 1998 by Alas International Limited, and on December 30, 1998 by Aerovias Venezolana, S.A.

Counsel:  American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com / Pierre Murphy, 202-872-1679 for Aeropostal


Aeropostal Alas de Venezuela, C.A. and American Airlines, Inc.

OST-98-4917
OST-98-4911
Undocketed
January 20, 1999 pdficon.gif (87 bytes)Motion Aeropostal Alas de Venezuela for Additional Time to Reply to Answers of Alas International and Aerovias Venezolana US-Venezuela Codesharing

Since the issues raised by Alas in its Answer require a detailed response involving a complete summary of the status of legal proceedings in Venezuela, the Dominican Republic and New York a response by January 20 has not been possible due to the inability to complete the detailed affirmations of the appropriate counsel regarding those proceedings. To enable a complete response to be filed, an extension until January 25, 1999 is therefore requested. This brief extension will enable complete and detailed affirmations to be completed by the appropriate counsel summarizing the Venezuelan, Dominican and New York legal proceedings to enable Aeropostal to respond to the charges of Alas and Avensa. No party shall be prejudiced by this brief extension of time.

Counsel:  Pierre Murphy, 202-872-1679


Aeropostal Alas de Venezuela, C.A. and American Airlines, Inc.

OST-98-4917
OST-98-4911
Undocketed
January 25, 1999 pdficon.gif (87 bytes)Consolidated Reply of Aeropostal Alas de Venezuela to Anwers of Alas International and Aerovias Venezolana US-Venezuela Codesharing
  Attachments Added Jan 26th Tab 1:  Affirmation of Michael S. Devorkin in Support of Application of Aeropostal Alas De Venezuela, C.A., Docket OST-98-4917 Dated:  New York, New York, January 22, 1999
    Tab 2:  Affidavit of Alfonso J. Perez January 22, 1999

The key dispute between the parties concerns the restraints in Venezuela regarding use of certain DC-9 aircraft. CAV asserts that the aircraft were acquired from the bankruptcy estate of the old Aeropostal with the intent, for the purpose, and pursuant to the requirement of the Venezuelan Government that the successful bidder could only dedicate these aircraft to the operation of a new Venezuelan airline. CAV asserts that Alas' intent was to remove these aircraft from Venezuela without the permission of the Venezuelan Government and to disregard the contractual commitments to the Venezuelan Government, the Bankruptcy Court and the Bankruptcy Court-appointed Receivers.

Counsel:  Pierre Murphy, 202-872-1679


Aeropostal Alas de Venezuela, C.A. and American Airlines, Inc.

OST-98-4917
OST-98-4911
Undocketed
February 8, 1999 pdficon.gif (87 bytes)Motion for Leave to File an Otherwise Unauthorized Document and Surreply of Alas International US-Venezuela Codeshare document.gif (123 bytes)HTML
    Exhibit A: Order of Supreme Court New York 1/7/99    
    Exhibit B & C:  Stipulation    

We have no doubt that Ramiz and Velasquez and their litigation counsel will do everything possible to delay the day of reckoning in the New York litigation. In fact, they raised meritless objections to service of process at the outset of the case which bought them several months of delay. The DOT may properly take account of that in its review of Aeropostal's application and the rights of American citizens who may buy tickets for flights on Aeropostal through the proposed code-sharing agreement. If Ramiz and Velasquez were tnuly confident in their position, they would be hurrying the case along rather than stringing it along. Ultimately, however, the DOT need not worry about who is going to win the New York case and who is going to lose. Ramiz and Velasquez have already lost, and the DOT should rely on the actual rulings of the court and not on Velasquez's counsel's self-serving predictions of reversal on appeal.

Counsel:  Alas, David Massie



Termination of Dockets

Order 2008-2-36

Docket 43430 - Trans World Airlines - Certificate Authority
Docket 49564 - Trans World Airlines - New York-London Heathrow
Docket 49654 - American Airlines - Certificate Amendmet
Docket 49686 - Continental Airlines - Certificate Amendment
Docket 50218 - Delta Air Lines - Certificate Amendment
Docket DOT-OST-1996-1442 - Trans World Airlines - New York-London
Docket DOT-OST-1996-1668 - United Air Lines and Saudi Arabian Airlines - Renewal
Docket DOT-OST-1997-2089 - Laker Airways - UK-Florida Renewal
Docket DOT-OST-1997-2637 - Air Exel - Codeshare with Northwest Airlines
Docket DOT-OST-1998-4333 - Air Exel - Codeshare with Northwest Airlines
Docket DOT-OST-1998-4830 - Continental Airlines - Detroit-Cayman Islands
Docket DOT-OST-1998-4911 - American Airlines - US-Venezuela Codeshare with Aeropostal
Docket DOT-OST-1999-5078 - Air Exel - Codeshare with Northwest Airlines
Docket DOT-OST-1999-5527 - American Airlines - US-London Gatwick
Docket DOT-OST-2000-7089 - Trans World Airlines - US-Japan Renewal
Docket DOT-OST-2000-7606 - American Airlines - Codeshare with TACA Group Carriers
Docket DOT-OST-2000-7660 - Aeromexico and Delta Air Lines - Chicago-Morelia
Docket DOT-OST-2001-10617 - Aeromexico - Acapulco-New York
Docket DOT-OST-2002-11945 - Continental Airlines and Air Exel -US-Netherlands Codeshare
Docket DOT-OST-2002-13400 - Aeromexico - Mazatlan-San Diego Renewal
Docket DOT-OST-2003-15013 - Planet Airways - US-Bahamas
Docket DOT-OST-2003-15729 - America West Airlines - US-Costa Rica Renewal
Docket DOT-OST-2003-16741 - America West Airlines and Mesa Airlines - Los Angeles-Mazatlan
Docket DOT-OST-2003-16745 - America West Airlines and Mesa Airlines - Los Angeles-Mazatlan
Docket DOT-OST-2004-18002 - America West Airlines - Phoenix-Mexico Certificate
Docket DOT-OST-2004-18615 - America West Airlines - US-Jordan Certificate
Docket DOT-OST-2004-19453 - Aeromexico - Puerto Vallarta-San Diego
Docket DOT-OST-2005-21441 - Atlas Air and Polar Air Cargo - US-Ecuador All-Cargo

Issued February 28, 2008 | Served March 4, 2008

Order Terminating Proceedings

The Department has identified the following proceedings as moot, inactive, or pending Departmental action on the applicant’s request for withdrawal or dismissal. It is in the public interest for administrative management reasons to terminate the proceedings and close the corresponding dockets, and we will do so under authority assigned by the Department in its Regulations, 14 CFR §385.3 and §385.13.

By: Paul Gretch


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