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U.S.- Colombia Scheduled Combination Service Opportunities

By:  Paul Gretch

American proposes to initiate, on October 1, 2002, and to operate on a year-round basis, daily nonstop service between Miami and Medellin, with 176-seat B757-200 aircraft.  American began operations to Colombia in 1990 as the successor to Eastern Air Lines, following the American/ Eastern Route Transfer, Order 90-5-3, May 1, 1990. American has a well-established presence in the U.S.-Colombia market, with service to Bogota, Cali, and Barranquilla.

Counsel: American, Carl Nelson, 202.496.5647, carl_nelson@aa.com

Granting Continental’s application for authority to institute New York/Newark-Cali/Medellin service will provide extremely important public benefits and best utilize the important opportunity to allocate the seven U.S.-Colombia frequencies which become available to a U.S. carrier October 1, 2001. Thanks to the Department’s efforts, the U.S.-Colombia agreement now provides the opportunity for Continental to offer service between New York/Newark and both Cali and Medellin, Colombia to compete with service by American Airlines and foreign-flag carriers between the U.S. and Colombian points other than Bogotá and to supplement Continental’s New York/Newark and Houston-Bogota service. Continental proposes to institute daily nonstop roundtrip New York/Newark-Cali service on October 1, 2001, and to expand the service to include Medellin, Colombia on October 1, 2002. Continental intends to use B-737-700 or other suitable aircraft in its fleet or on order to institute its proposed New York/Newark-Cali and Medellin service.

Counsel:  Crowell Moring, Bruce Kiener, 202.624.2500

The Department's Notice called for applications for U.S.-Colombia route authority and the allocation of up to 14 weekly frequencies (seven effective October 1, 2001, and seven effective October 1, 2002), consistent with the U.S.-Colombia Memorandum of Consultations of March 15, 2000. Since American and Continental are the only carriers to respond to the Notice, since each is seeking only seven of the 14 available frequencies, and since Continental proposes to start on October 1, 2001, while American proposes to start on October 1, 2002, the two applications are not mutually exclusive. Both may be granted in their entirety, without the need for a carrier-selection case.

Accordingly, the Department should promptly grant the applications for route authority and frequencies submitted on March 2, 2001 by American and Continental, without further procedures.

Continental's proposal to add Medellin as a one-stop tag beyond Cali, effective October 1, 2002, does not require additional frequencies; the seven frequencies that Continental would receive for service to Cali would also be sufficient to operate beyond to Medellin. Nor is there any limitation on the number of U.S. carriers that may be authorized to serve Medellin as of October 1, 2002.

Counsel: American, Carl Nelson, 202.496.5647, carl_nelson@aa.com

American’s proposal to initiate daily nonstop Miami-Medellin service on October 1, 2002, using the seven weekly frequencies which become available on that date presents no conflict with Continental’s proposal to initiate daily nonstop New York/Newark-Cali service using the seven weekly frequencies which become available October 1, 2001, and to add Medellin to the flights on October 1, 2002, when that point becomes available. Thus, Continental urges the Department to grant the Continental and American applications for frequencies and certificate authority, subject to the Department’s normal conditions, as promptly as possible so Continental can begin securing foreign approval, planning the institution of its new services and marketing them. Continental has attached, for the Department’s convenience, a draft Continental certificate reflecting the authority sought.

Although the certificate does not explicitly defer Continental’s authority to institute Medellin service until October 1, 2002, provision (2) precludes Continental from instituting service at Medellin prior to that date so long as the U.S.-Colombia agreement continues to preclude such service.

Counsel:  Continental and Crowell Moring, Bruce Keiner, rbkeiner@cromor.com

Order 2001-5-26 amends/issues in the form attached, certificates of public convenience and necessity to the applicants listed in the caption of this order. The order renews, for indefinite duration, the allocation of six weekly frequencies to American Airlines to conduct its San Jose- Tokyo operations The allocation of frequencies is subject to the condition that any frequencies not used for a period of 90 days will revert automatically to the Department for reallocation, and also grants Continental an allocation of seven weekly frequencies to operate services in the New York/Newark- Cali/Medellin markets. The allocation of frequencies is effective immediately for services commencing no earlier than October 1, 2001, for New York/Newark- Cali service, and no earlier than October 1, 2002, for New York/Newark- Cali- Medellin service

By:  Susan McDermott

By:  Susan McDermott

Continental applies for a waiver of the Department's 90-day dormancy condition on Continental's seven weekly frequencies for service between New York/Newark and Cali, Colombia, awarded in the U.S.-Colombia Scheduled Combination Opportunities Proceeding , so Continental can institute the planned service on June 1, 2002. Under current economic conditions in Colombia and the United States, Continental has concluded that nonstop New York/Newark- Cali flights should not begin until June 1, 2002.

Counsel:  Continental and Crowell Moring, Bruce Keiner, rbkeiner@cromor.com

By Order 2001-5-26, the Department granted certificate authority to Continental to provide service between New York/Newark and Cali, Colombia, and allocated it a total of seven weekly frequencies for services commencing no earlier than October 1, 2001. The frequencies are subject to the condition that if any frequencies are not used for a period of 90 days, the allocation as to those frequencies will expire automatically and the unused frequencies will revert to the Department for reallocation. Continental seeks a waiver of the 90-day dormancy condition with respect to these frequencies until June 1, 2002. Continental states that because of the current economic conditions in Colombia and the United States it plans to delay the start-up of its New York/Newark Cali flights until June 1, 2002.

Continental’s waiver from the dormancy condition is effective until June 1, 2002. If Continental does not begin service by June 1, 2002, its frequency allocation expires automatically. The 90-day dormancy period will begin on the date Continental begins service.

By:  Paul Gretch

OST-03-15021 - Waiver of the Formancy Condition on Limited-Entry Route Authority
OST-01-8910 - Miami-Medillin

February 3, 2004

Notice of American Airlines of Intent to Use Frequencies and Application for Limited Dormancy Waiver

Hereby gives notice of intent to use two weekly frequencies in order to increase its nonstop service between Miami and Medellin, Colombia from five days a week to daily, effective June 15, 2004.

American presently operates nonstop service between Miami and Medellin on Monday, Thursday, Friday, Saturday, and Sunday. Effective June 15, 2004, American will add nonstop service on Tuesday and Wednesday. American serves the route with 188‑seat B757‑200 aircraft (22F/166Y), providing substan–tial benefits in the local market as well as in dozens of on–line beyond markets served through American's Miami hub.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com

OST-03-15021 - Waiver of the Formancy Condition on Limited-Entry Route Authority
OST-01-8910 - Miami-Medillin

February 4, 2004

Re: Polling Letter

American Airlines, Inc. has polled all parties served with our application of February 3, 2004 for limited dormancy waiver (Miami-Medellin), and there are no objections. We accordingly request expedited approval.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com

OST-03-15021 - Waiver of the Formancy Condition on Limited-Entry Route Authority
OST-01-8910 - Miami-Medellin

February 5, 2004

Re: Application of American Airlines for Limited Dormancy Waiver

In our application submitted on February 3, 2004, we requested a limited dormancy waiver for two Miami-Medellin weekly frequencies to cover the period until June 15, 2004, when American will begin operating daily Miami-Medellin service.

On February 5, 2004, the Department issued an Amendment to Notice of Action Taken in OST-2003-15021 and OST-1999-6210 with respect to the Atlanta-Buenos Aires dormancy waiver granted to Delta Air Lines, Inc. on January 30, 2004. By that Amendment, Delta in effect is given a two-week cushion - from its announced start date of December 1 until to December 15 to use its frequencies.

In these circumstances, American requests similar treatment of its Miami-Medellin application, so that our dormancy waiver is granted until June 30, 2004. As we stated in our polling letter submitted in the captioned dockets on February 4, 2004, we request expedited approval.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com

OST-03-15021
OST-01-8910 - Miami-Medillin, Colombia

Filed February 3, 2004 | Issued February 13, 2004

Notice of Action Taken

American filed a Notice of its intent to increase its nonstop service between Miami and Medellin, Colombia, from five days a week to daily, effective June 15, 2004. It included with that Notice an application for an interim waiver for two Miami-Medellin frequencies beyond the March 31 date until June 15, 2004. American stated that it would poll all parties served with its application for non-objections. By letter dated February 4, 2004, American advised the Department that there are no objections to its application. By letter dated February 5, 2004, American requested that its waiver request date be extended until June 30, 2004, citing the Department's amendment to a Delta notice of February 5, extending Delta's request relating to the Atlanta-Buenos Aires market. American requests similar treatment in regard to its Miami-Medellin application.

By: Linda Senese

November 8, 2005

Application for Renewal of Certificate for Route 804

American Airlines, Inc. hereby applies for renewal of its certificate for Route 804, authorizing scheduled foreign air transportation of persons, property and mail between Miami, Florida and Medellin, Colombia. This authority was initially granted by Order 2001-5-26.

American has continuously operated nonstop service between Miami and Medellin since 2001. American presently operates one daily roundtrip using 188-seat B757 aircraft.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com

November 17, 2005

Application for Continental Airlines for Renewal of Certificate Authority

Continental' applies, pursuant to 49 U.S.C. § 41102 and Subpart B of the Department's Rules of Practice, for renewal of its Route 805 certificate authorizing Continental to provide scheduled foreign air transportation of persons, property and mail between New York/Newark, New Jersey, and Cali and Medellin, Colombia and to integrate this authority with other authority held by Continental. Continental asks that its Route 805 certificate authority be renewed for a period of no less than five years and that this application be processed by expedited non-hearing procedures under Subpart B of the Department's Rules of Practice.

Although Continental is not currently providing New York/Newark Cali/Medellin flights, Continental offers Houston-Cali service and is interested in expanding its U.S.- Colombia service if and when additional frequencies become available to Continental.

Counsel: Crowell & Moring, Bruce Keiner, 202-624-2615, rbkeiner@crowell.com

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