TAMPA Cargo S.A. and Aerovias Nacionales de Colombia S.A.

Order 04-12-09
OST-04-18910 - Exemption - Miami-Colombia via Ecuador and Peru
Undocketed

Issued and Served December 13, 2004

Order | Word

In this order, we (1) grant an exemption request by TAMPA CARGO S.A. and (2) affirm a staff action under assigned authority approving a statement of authorization for Aerovias Nacionales de Colombia S.A. TAMPA and Avianca are foreign air carriers of Colombia.

The exemption authority requested by TAMPA is provided for in our bilateral aviation agreement with Colombia, and TAMPA is properly licensed and designated by its government to conduct the proposed services. With respect to the issues raised by Atlas and Arrow, the record indicates that Colombia has recently approved or has announced approval of the requests of Florida West, Atlas and Arrow to U.S-Colombia all-cargo services on a "triangular routing" basis, authority similar to that requested by TAMPA.

It is our view that Colombia's practice of setting a uniform commission rate serves only to increase prices to the traveling public and deprive consumers of choices and competition among airlines serving that country, and that such commissions should properly be negotiated between air carriers and their travel agents, without government interference. Notwithstanding Colombia's actions, it nevertheless appears that the practices reported by American are being applied by the Colombian authorities on a non‑discriminatory basis and apply equally to all carriers in Colombia conducting international services, including Colombian and U.S. carriers.

As to American's petition, for the reasons set forth above, we have decided to affirm the staff's action approving Avianca's request to operate the roundtrip charter flight between Colombia and San Juan. We find that the staff acted properly and in accordance with established practices and policies in reaching its decision. The staff correctly concluded that the matters raised by American could not be resolved in the context of Avianca's request to operate the subject charter flight, and were more appropriately pursued through ongoing U.S. efforts at resolution with the Government of Colombia, through diplomatic channels.

By: Karan Bhatia