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OST-04-17407 - Champion Air - Denver-Cancun
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Grand Holdings, Inc. d/b/a Champion Air OST-04-17407 - Exemption - Denver-Cancun 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 Denver, Colorado, 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 two flights per week (Wednesdays and Saturdays) on a .year round basis (except for September) commencing on May 1, 2004 or as soon as all necessary U.S. and Mexican permits are received. By: Champion Air, Curt Berchtold, 952-814-8785 OST-04-17407 - Exemption - Denver-Cancun March 25, 2004 Answer and Motion to Consolidate of Allegiant Air Allegiant Air, Inc., pursuant to Rules 13 and 307 of the Department's Rules of Practice, answers in opposition to the Denver-Cancun exemption application of Grand Holdings, Inc. dlbla Champion Air, and moves for consolidation. Allegiant has today filed an application for exemption authority to engage in scheduled air transportation of persons, property, and mail between Denver, Colorado and Cancun, Mexico. As stated in that application, Allegiant has an established interest in Denver-Cancun service, having operated regular and frequent public charter flights in that market for over 10 months which are expected to continue until supplanted by Allegiant scheduled service. Allegiant has, to date, carried over 40,000 passengers on these flights. Conversion of Allegiant's Denver-Cancun flights to scheduled service will enable the carrier to serve an even broader segment of the public. Champion's proposal to operate two round trips per week pales in comparison to the four weekly round trips Allegiant would operate. These factors, among others, establish that Allegiant's Denver-Cancun scheduled service would provide far greater public benefits than Champion's. Accordingly, given that Denver-Cancun is a limited entry market, Allegiant opposes Champion's application. Under the U.S.-Mexico Bilateral Air Services Agreement, the United States may designate up to two U.S. carriers to serve each eligible U.S.-Mexico city pair. At present, Frontier Airlines is designated to provide service between DeQ.ver and Cancun, leaving one additional designation available for allocation. Three carriers - Allegiant, Champion, and United - have applied for Denver-Cancun exemption authority. Given these circumstances, Allegiant submits that contemporaneous consideration of the three applications will be conducive to the proper dispatch of the Department's business and to the ends of justice, and will not unduly delay the proceedings. Allegiant therefore moves for consolidation of the proceedings in Docket OST-2004-17299, Docket OST-2004-17407, and the Docket in which Allegiant's application has been filed today. Counsel: Garofalo Goerlich, Aaron Goerlich, 202-776-3974, agoerlich@ggh-airlaw.com
OST-04-17299 - Denver-Cancun (United Air Lines) April 5, 2004 Consolidated Answer of United Air Lines Under the U.S./Mexico bilateral air services agreement, only two U.S. carriers may be designated in each city pair, and one of those designations has already been made in both the Denver-Cancun and Denver-Puerto Vallarta city pairs. In these circumstances, the applications of United, Allegiant and Champion for authority to serve Denver-Cancun are mutually exclusive, as are the applications of United and Champion to serve Denver-Puerto Vallarta. For this reason, and because both city pairs involve Denver-Mexico authority as well as applications from both United and Champion (the only carriers with Puerto Vallarta applications and two of the three carriers with Cancun applications), all of the applications should be consolidated into a single carrier selection case for contemporaneous consideration. Counsel: United and Wilmer Cutler, Jeffrey Manley, 202-663-6670, jeffrey.manley@wilmer.com
OST-04-17299 - United - Denver-Cancun April 8, 2004 Consolidated Answer of Frontier Airlines, Inc. Frontier Airlines, Inc. hereby submits the following comments in response to the applications of United Airlines, Inc. for authority to operate nonstop service between Denver, Colorado and Cancun, Mexico and for authority to operate nonstop service between DEN and Puerto Vallarta, Mexico and United’s motion to consolidate its application along with its opposition to the applications of Allegiant Air, Inc. and Grand Holdings, Inc. d/b/a Champion Air to serve CUN. On April 5, United sought an exemption authorizing "it" to provide scheduled foreign air transportation of persons, property and mail between DEN and PVR. In its application, United stated that, "United plans initially to operate daily service using its ‘Ted’ product on a seasonal basis from DEN December through April." Champion also has an application for PVR service. In order to consolidate multiple cases before the Department of Transportation, a finding must be made that the carrier seeking the consolidation is identical in every respect. For some time, United has treated Ted as a separate brand and entity. While many in the industry and industry observers have noted that United and Ted operate with the same personnel and costs and out of the same facilities, United continues to imply through various means including advertising and its website that Ted is somehow different. For example, a Reuters March 23, 2004 article noted, "United Airlines Tuesday said Ted, its low-fare carrier, is running ahead of internal forecasts and said it will expand to offer flights out of Chicago O’Hare Airport. " Is Ted a carrier or not? Before the Department grants United’s motion to consolidate, United should agree that there is no difference between United and Ted and that no Ted entity exists. It is United that is seeking both Mexico authorities. Counsel: Ungaretti & Harris, Edward Faberman, 202-639-7501, epfaberman@uhlaw.com OST-04-17299 - United - Denver-Cancun April 9, 2004 Consolidated Answer and Motion of Champion Air for Consolidation Champion Air objects to the applications of United and Allegiant for exemption authority in both the Denver‑Cancun city‑pair and the Denver‑Puerto Vallarta city‑pair to the extent that these applications preclude Champion Air's applications for authority in these markets. Pursuant to the U.S.-Mexico Air Services Agreement, only two U.S. carriers may be designated for scheduled services on each city-pair. Frontier Airlines holds one of the two designations in the Denver-Cancun market (Docket OST-2002-13061) and one of the two designations in the Denver-Puerto Vallarta market (Docket OST-2002-15371). Consequently, the applications of Champion Air, United and Allegiant for authority to serve Denver-Cancun are mutually exclusive, as are the applications of Champion and United to serve Denver-Puerto Vallarta. Champion Air supports United's Motion to consolidate all of the Denver applications into a single carrier selection case for contemporaneous consideration. Champion Air agrees with United that consideration of these Denver-Mexico applications in separate proceedings would result in duplication of efforts and a relative inefficient utilization of both carrier and Departmental resources. However, Champion Air urges the Department to conduct a simplified and expedited proceeding. By: Champion, Edward Davidson, 952-814-8785, edward.davidson@championair.com 2004 US-Mexico Combination Service Proceeding Order 04-07-17 Issued and Served July 21, 2004 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.
By: Karan Bhatia OST-04-18692 - 2004 US-Mexico Combination Service Proceeding August 18, 2004 Motion of United Air Lines for Immediate Action On August 16, when direct exhibits were due, Allegiant filed a motion seeking leave to withdraw its application, and Champion filed nothing, electing, in effect, to abandon its application without any formal filing of a motion for leave to withdraw. There are no direct exhibits of Champion (or Allegiant) for United to rebut and the Department can rely on United's Direct Exhibits and this Motion as United's Brief. To delay a decision on United's application until the procedural schedule, which is now superfluous as it relates to Denver markets, has run its course would be contrary to any legitimate procedural concern. To include United's applications in any tentative decision in an Order to Show Cause would likewise be to put form over substance in circumstances where no other carrier is presenting an application for authority in either of the markets United seeks. There are no due process concerns to be considered here and the matter should be brought quickly to a conclusion by granting Allegiant's Motion to Withdraw and dismissing Champion's applications as to Denver‑Cancun and Denver-Puerto Vallarta. Counsel: United and Wilmer Cutler, Jeffrey Manley, 202-663-6670, jeffrey.manley@wilmerhale.com OST-04-17470 - Frontier - St. Louis-Cancun 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 OST-04-18692 - 2004 US-Mexico Combination Service Proceeding August 23, 2004 Consolidated Answer and Reply of United Air Lines United respectfully requests that the Department issue an order immediately granting United's exemption applications for Denver‑Cancun and Denver Puerto Vallarta service as requested in United's Motion for Immediate Action dated August 18, 2004. United objects to any delay in such action while the Department reviews the unrelated motions of Spirit, USA 3000 and Frontier. United also requests that the Department grant it such other and further relief as is deemed consistent with this consolidated answer and reply and the public interest. Counsel: Wilmer Cutler, Jeffrey Manley, 202-663-6670, jeffrey.manley@wilmerhale.com 2004 US-Mexico Combination Service Proceeding OST-04-18692 - 2004 US-Mexico Combination Service Proceeding Filed March 10, 2004 and April 5, 2004 | Issued August 25, 2004 Notice of Action Taken (United) | Word Scheduled foreign air transportation of persons, property, and mail between Denver, Colorado, and Cancun, Mexico. United states that it will serve the market on a year-round basis. Scheduled foreign air transportation of persons, property, and mail between Denver, Colorado, and Puerto Vallarta, Mexico. United states that it will serve the market on a seasonal basis.
Under the circumstances presented, United is now the only applicant requesting exemption authority in both the Denver‑Cancun and Denver‑Puerto Vallarta markets. In light of the fact that there are no longer competing requests for these markets, no party has opposed United's request for an immediate award of Denver‑Cancun and Denver‑Puerto Vallarta exemption authority, and there is one designation opportunity available for both the Denver‑Cancun and Denver‑Puerto Vallarta services, we have decided to grant United's August 18 motion and (1) grant Allegiant's request to withdraw its application for Denver‑Cancun authority; (2) dismiss Champion Air's applications for authority to serve the Denver‑Cancun and Denver‑Puerto Vallarta markets; and (3) award United the Denver‑Cancun and Denver‑Puerto Vallarta exemption authority it requests.
By: Paul Gretch |
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