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Updated: Tuesday, August 24, 2004 9:01 AM

OST-04-17405 - Champion Air - Detroit-Cancun

Grand Holdings, Inc. d/b/a Champion Air

OST-04-17405 - Exemption - Detroit-Cancun

March 24, 2004

Application for an Exemption

By this application, Champion Air seeks an exemption from 49 U.S.C. § 41101 to engage in scheduled foreign air transportation of persons, property and mail between Detroit, Michigan, on the one hand, and Cancun, Mexico, on the other hand. Champion Air intends to operate these services with Boeing 727‑200 aircraft and intends to operate one flight per week on a year round basis and two additional flights per week on a seasonal basis, commencing on May 1, 2004 or as soon as all U.S. and Mexican authority to operate is received.

By: Champion Air, Curt Berchtold, 952-814-8785


OST-04-17405 - Exemption - Detroit-Cancun

April 7, 2004

Answer of Spirit Airlines

On March 24, Champion Air applied in this docket for authority to provide scheduled Detroit-Cancun service. This application, and an Application filed by Spirit for identical authority on March 2, 2004 in Docket OST-2004-17234, are mutually exclusive, unless the U.S. Government were somehow able to persuade the Mexican Government to waive the designation limits under the U.S.-Mexico Air Service Agreement.

Champion Air, "a dedicated provider of charter airlift," proposes to serve the Detroit-Cancun market only once per week, moving up to three times a week during certain points in the year. Such a service would squander a scarce designation, and would prevent a scheduled carrier, Spirit, from offering far superior and far more frequent service in the market. As Spirit made clear in its Reply filed in Docket OST-2004-17234 (which is attached and hereby incorporated by reference), there simply is no comparison between Spirit’s Detroit-Cancun service proposal, and that of Champion. While Champion previously has argued that it should be chosen because it has "regularly and frequently offered" charter service in the Detroit-Cancun market, Spirit submits that the opposite is true. If Champion has so easily operated charter flights for MLT, the Northwest-owned charter operator, for as long as it has (and for other charter operators), there should be no reason why Champion should not continue to do so. This is particularly the case since Spirit only can serve the market on a scheduled basis.

If the Department were to grant pendente lite authority in this case, the choice should be clear. Spirit would offer service in this market which would compete with that of Northwest. Moreover, Champion would not be prejudiced, as it could continue to operate the charter service that it “presently” provides. Accordingly, Spirit’s request for scheduled Detroit-Cancun authority should be granted without delay.

Counsel: Garfinkle Wang, Anita Mosner, 703-294-5890


2004 US-Mexico Combination Service Proceeding

Order 04-07-17
OST-2004-18692 - 2004 US-Mexico Combination Service Proceeding
OST-2004-17416 - Allegiant Air - Denver-Cancun
OST-2004-17407 - Champion Air - Denver-Cancun
OST-2004-17299 - United Air Lines - Denver-Cancun
OST-2004-17408 - Champion Air - US-Mexico
OST-2004-17491 - United Air Lines - Denver-Puerto Vallarta
OST-2004-17405 - Champion Air - Detroit-Cancun
OST-2004-17234 - Spirit Airlines - Detroit-Cancun
OST-2004-17351 - USA 3000 - Detroit-Cancun
OST-2004-17470 - Frontier Airlines - St. Louis-Cancun
OST-2004-17479 - USA 3000 - St. Louis-Cancun/Cozumel

Issued and Served July 21, 2004

Instituting Order | Word

By this order we: (1) institute the 2004 U.S.-Mexico Combination Service Proceeding to select one primary and one backup carrier, to provide foreign air transportation of persons, property, and mail over the following transborder routes: Denver-Cancun, Denver-Puerto Vallarta, Detroit-Cancun, and St. Louis-Cancun; (2) consolidate the already-filed captioned applications into this new proceeding; and (3) direct the applicants to file the requested information, as set forth below.

Petitions for Reconsideration:

July 28, 2004

Answers to Petitions:

August 2, 2004

Direct Exhibits:

August 16, 2004

Rebuttal Exhibits:

August 30, 2004

Briefs:

September 7, 2004

By: Karan Bhatia


OST-04-17234 - Spirit - Detroit-Cancun
OST-04-17351 - USA 3000's Application
OST-04-17405 - Champion's Application

August 20, 2004

Motion of Spirit Airlines

By Motion dated August 18, 2004, United Airlines requested, among other things, that the Department remove Champion as a party to the Denver-Cancun/Puerto Vallarta portion of the US-Mexico 2004 Combination Service Proceeding because of Champion’s failure to file Direct Exhibits in this Proceeding, or otherwise prosecute its pending requests for U.S.-Mexico authority.

Spirit Airlines hereby files this Motion to request that, to the extent that the DOT decides to dismiss Champion’s request for Denver-Mexico authority, it should do the same with respect to Champion’s request for Detroit-Cancun authority, as Champion failed to submit Direct Exhibits or otherwise respond to the requests for information required by Order 04-7-17 with regard to that city-pair.

Counsel: Garfinkle Wang, Anita Monser, 703-294-5890


OST-04-17470 - Frontier - St. Louis-Cancun
OST-04-17408 - Champion Air - US-Mexico
OST-04-17479 - USA 3000 - St. Louis-Cancun/Cozumel
OST-04-17234 - Spirit - Detroit-Cancun
OST-04-17351 - USA 3000's Application
OST-04-17405 - Champion's Application
OST-04-17299 - United Air Lines - Denver-Cancun
OST-04-17407 - Champion Air - Denver-Cancun
OST-04-17416 - Allegiant Air - Denver-Cancun
OST-04-17491 - United Air Lines - Denver-Puerto Vallarta

August 20, 2004

Answer of USA 3000 to Motions of United and Spirit and Motion of USA 3000

In addition to supporting the dismissal of Champion's applications in the Denver-Cancun, Denver‑Puerto Vallarta, and Detroit‑Cancun portions of this proceeding sought by United and Spirit in their motions, USA 3000 would also urge that Champion's other application in the St. Louis‑Cancun portion of this proceeding be similarly dismissed for the same fundamental reasons advanced by United and Spirit, and to the extent necessary, USA 3000 so moves. Neither USA 3000 nor the other competing applicant for St. LouisCancun transborder city‑pair should be put to the trouble and expense of trying to rebut direct exhibits which do not exist.

Counsel: Pierre Murphy, 202-776-3980, pmurphy@lopmurphy.com

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