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OST-2003-16444 - America West and Mesa - Phoenix-Los Cabos/Puerto Vallarta
http://www.americawest.com/
http://www.mesa-air.com/
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America West Airlines, Inc. and Mesa Airlines, Inc. OST-2003-16444 - Exemption - Phoenix-Los Cabos/Puerto Vallarta October 30, 2003 Joint Application for Exemptions America West Airlines, Inc. has been providing uninterrupted service between Phoenix, Arizona and both Los Cabos, Mexico and Puerto Vallarta, Mexico since 1995. Now America West is positioned to upgrade its service in these markets beginning April 1, 2004, by incorporating daily flights operated by its codeshare partner, Mesa Airlines, Inc., as America West Express, using CRJ-900 aircraft. Since the Bilateral limits the number of U.S. air carriers that may be designated for any city pair to two, the designation of Mesa in the PHX-SJD and PVR markets will require withdrawal of the designation of Alaska Airlines, Inc. in these markets. Alaska, which in the past has only operated in these markets during the winter, has opted not to utilize these valuable rights at all this winter. Unless Alaska's designation is reallocated to Mesa these rights will remain unused for at least one year, and, more than likely, for the foreseeable future. Accordingly, America West and Mesa further request the Department to withdraw Alaska's designation in the PHX-SJD and -PVR markets. Counsel: America West and Baker & Hostetler, Joanne Young, 202-861-1532
November 14, 2003 Under the scenario proposed by the Applicants, the United States would be required to withdraw Alaska's designations for these markets and reassign them to Mesa, precluding Alaska from ever resuming Phoenix-Los Cabos/Puerto Vallarta service and providing America West with a defacto and dejure U.S. carrier monopoly in the Phoenix-Los Cabos/Puerto Vallarta markets. No other U.S. carrier could enter these markets given current bilateral restrictions. Before taking this drastic step, Alaska would ask that the Department favorably consider any one of several less anticompetitive alternatives. Counsel: Alaska and Squire Sanders, Marshall Sinick, 202-626-6651, msinick@ssd.com
November 25, 2003 Reply of America West Airlines and Mesa Airlines Alaska's assertions are erroneous and each of its proposed alternatives is unworkable. Instead, the public interest is best served by transferring valuable unused limited-entry operating rights to Mesa which, with America West, will expand year-round low-fare daily service to meet consumer demand. In this regard, Alaska has confirmed in its Answer that it will not resume service in the PHX-SJD/PVR markets as of April 1, 2004. Accordingly, under Order 2003-4-18, Alaska's authority in these markets is dormant and a U.S. designation in each market is now available. America West and Mesa respectfully request the Department to reject Alaska's objections and proposals, grant Mesa the requested exemption authority to operate in the PHX-SJD/PVR markets and reallocate Alaska's designations to Mesa. As the Department knows, for Mesa to operate its own aircraft in these markets, regardless of the airline code displayed on the flights, the Department must designate Mesa as an operating carrier. This is absolutely clear from the Department's actions in Docket Nos. OST-2003-16350 and OST-2003-16302, where the Department has requested the U.S. Embassy to designate Express Jet d/b/a Continental Express to operate in Houston - Mexico markets for Continental. Counsel: Baker Hostetler, Joanne Young, 202-861-1532
November 25, 2003 United Air Lines, Inc. submits the following reply to the answer of Alaska Airlines, Inc. in the captioned proceeding: In its Answer, Alaska notes the anticompetitive consequences of the Department's practice of using one of the two operating U.S. carrier designations under the U.S./Mexico agreement in order to authorize commuter carrier service that displays the code of a separately designated carrier. In this instance, one of America West's commuters, Mesa Airlines, is seeking exemption authority and an operating carrier designation in two U.S.-Mexico city pairs: Phoenix-San Jose del Cabo and Phoenix-Puerto Vallarta. In both city pairs, America West is already designated and operating. Moreover, Mesa will use its authority to operate services which will display only America West's designator code and not that of Mesa itself. United joins with Alaska in urging the Department to adopt an alternative authorization process for transborder commuter services that avoids such service pre-empting U.S. carrier competition. The best solution would be, as Alaska has proposed, to treat these services like wet leases and include them under the designation of the carrier whose designator code appears on the flights. Counsel: United and Wilmer Cutler, Jeffrey Manley, 202-663-6670
December 2, 2003 Surreply of Continental Airlines and Motion for Leave to File Alaska, United and America West/Mesa have made arguments in this proceeding based on various designations of Continental and ExpressJet for U.S.- Mexico routes, and Continental is constrained to submit this surreply to address the issues raised about Continental, ExpressJet and other U.S.-Mexico designations which could affect the successful Continental and ExpressJet operations on U.S.-Mexico routes. Both Alaska and United are asking the Department to change its current policy on U.S.-Mexico designations and contest Mexico's interpretations of the U.S.-Mexico bilateral air transport agreement because Alaska and United might someday want to institute unspecified flights on U.S.-Mexico routes already served by U.S.-flag codeshare partners operating both small and large aircraft. Although Continental does not oppose re-opening a dialogue with Mexico regarding interpretations of the U.S.-Mexico agreement, Continental strongly opposes any change in the Department's policy unless and until interpretations permitting U.S. airlines and their codeshare partners to operate flights on U.S.-Mexico routes using only one designation are agreed upon between Mexico and the United States. Counsel: Continental and Crowell & Moring, Bruce Keiner, 202-624-2615
December 3, 2003 Surreply of ExpressJet Airlines and Motion for Leave to File Alaska and United have asked the Department to alter its policy of designating regional airlines such as ExpressJet and their mainline partners on the same U.S.-Mexico city-pairs. If the Department were to accede to the Alaska/United request, ExpressJet's service on several U.S.-Mexico routes would be jeopardized and the public would be deprived of the combination of service with ExpressJet's regional jets and Continental's large jets which allow the carriers to meet public demand fluctuating by season, day of week and hour of the day with appropriate service. The ability to operate U.S. ‑Mexico services on the same routes served by Continental is important to ExpressJet, which continues to codeshare with Continental but is no longer a Continental subsidiary. As an independent airline, ExpressJet is responsible to both its shareholders and its customers, and the opportunity to provide U.S. ‑Mexico services is an important contributor to ExpressJet's success. Continental should not be forced to choose between its own operations and ExpressJet's operations on U.S. ‑Mexico routes where the combination of flights by both airlines provides the best service options to the traveling public, and ExpressJet's revenue opportunities should not be limited by theoretical concerns of other airlines about routes they might choose to serve at some unspecified point in the future. Counsel: ExpressJet, Scott Peterson, 713-324-5018
December 10, 2003 Re: Letter in Support from City of Phoenix, Aviation Department By: City of Phoenix
Filed October 30, 2003 | Issued February 13, 2004 Scheduled foreign air transportation of persons, property, and mail between (1) the terminal point Phoenix, Arizona, and the terminal point San Jose del Cabo, Mexico; and (2) the terminal point Phoenix, Arizona, and the terminal point Puerto Vallarta, Mexico. The joint applicants state that they will use the requested authority to permit Mesa to offer service in the subject markets with regional-sized aircraft (CRJ-900s), placing the code of America West on its flights. The applicants state that America West will also provide year-round service in the markets with its own B757 and/or B-737 aircraft, in addition to Mesa’s new direct-carrier service (own-aircraft) flights. We have carefully examined the evidence presented in this case, and have decided that it is in the public interest to (1) grant the exemption request of Mesa for the proposed services, along with the requested America West/Mesa code-share authorizations; (2) withdraw the dormant designation authority of Alaska to serve the Phoenix-San Jose del Cabo/Puerto Vallarta markets; (3) designate Mesa for direct-carrier service in the Phoenix-San Jose del Cabo/Puerto Vallarta markets; and (4) convert America West’s current exemption authority to provide direct-carrier service in the subject markets from seasonal service to year-round service. Under the U.S.-Mexico aviation agreement, up to two U.S. carriers may be designated to operate direct-carrier service in a given city-pair market. Mesa needs a designation for the services proposed here. As discussed above, both America West and Alaska are already designated to provide scheduled direct-carrier service in the Phoenix-San Jose del Cabo/Puerto Vallarta markets. However, Alaska is not now using its authority and has provided no firm plans to resume services. It is not our policy to allow valuable operating rights to go unused, particularly when another carrier is interested in serving the routes and has firm plans to do so. While Alaska maintains that its authority is protected under the Department’s blanket dormancy waiver Order 2003-4-18, it has clearly stated that it will not meet the resumption of service deadline for the Phoenix-San Jose del Cabo/Puerto Vallarta markets specified in that order. In the circumstances presented, with carriers ready and willing to use the authority at issue, we find that the public interest calls for withdrawing Alaska’s designation. With respect to United, we appreciate the concerns raised here regarding the use of two designations for affiliated-carrier services in U.S.-Mexico markets. Indeed, we have sought Mexican aviation authorities acceptance of such services without the need for separate designations. However, such an arrangement has not been forthcoming. We will continue our efforts in this regard. However, under the circumstances, we believe that the public interest is best served by granting the requested authority here for the proposed services while we continue to work on this issue with the Mexican aviation authorities. Notwithstanding this, however, should a competing U.S. carrier present a proposal to provide regularly-scheduled service in the subject city-pair markets with its own aircraft, we would be prepared to reconsider whether, in the circumstances presented, award of the authority granted here continues to be in the public interest. By: Paul Gretch
October 26, 2005 Joint Application for Renewal of an Exemption and Code Share Authorization America West Airlines, Inc. d/b/a US Airways and Mesa Airlines, Inc. apply for a two-year renewal of their exemption and code share authorization to engage in scheduled foreign air transport of persons, property, and mail between Phoenix, Arizona and both Los Cabos, Mexico, and Puerto Vallarta, Mexico. Mesa has provided continuous service on these routes, using its CRJ-900 aircraft, since 2004, with America West placing its designation code on combination flights. Counsel: Greenber Traurig, Joanne Young, 202-530-8520, youngj@gtlaw.com
Filed October 26, 2005 | Issued November 30, 2005 Scheduled foreign air transportation of persons, property, and mail between (1) the terminal point Phoenix, Arizona, and the terminal point San Jose del Cabo, Mexico; and (2) the terminal point Phoenix, Arizona, and the terminal point Puerto Vallarta, Mexico. The joint applicants state that they will use the requested authority to permit Mesa to offer service in the subject markets, placing the code of America West (HP*) or US Airways (US*) on its flights. America West states that on September 27, 2005, America West Holdings Corporation merged with US Airways Group, Inc. As a result, America West became a subsidiary of US Airways Group and is beginning operations under the "US Airways" brand name. America West also states that it will advertise, sell tickets, and market under the "US Airways" brand, and may use either designator code (HP* or US*) on these flights. By: Paul Gretch
OST-2005-22645 - US Airways - Exemption - Various US-Mexico City-Pairs Codesharing with America West October 2, 2007 Re: Partial Cancellation of Codesharing On November 4, 2005, the Department authorized US Airways, Inc. to code-share on flights operated by America West Airlines, Inc. and Mesa Airlines, Inc. between various points in the United States and Mexico. (See Erratum, Docket OST-2005-22645). On September 26, 2007, America West and US Airways combined their operations under US Airways' Operating Certificate, and all international air service is now being conducted pursuant to certificate and exemption authority previously granted to US Airways. Accordingly, US Airways hereby requests that the Department cancel its exemption authority to codeshare on flights previously operated by America West in the markets listed:
US Airways intends to continue to place its code on Mesa-operated flights in these markets, as evidenced by its renewal application. (See Application of US Airways for Renewal of Exemptions, September 6, 2007, Docket OST-2005-22645). Counsel: US Airways, Howard Kass |
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