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OST-04-17408 - Champion Air - US-Mexico
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Grand Holdings, Inc. d/b/a Champion Air OST-04-17408 - Exemption - US-Mexico Applies for an exemption from 49 U.S.C. § 41101 authorizing it to engage in.scheduled foreign air transportation of persons, property and mail between the following six city pairs: Denver (DEN) and Puerto Vallarta (PVR), Dallas/Fort Worth (DFVV) and Cozumel (CZM), Dallas/Fort Worth (DFW) and Puerto Vallarta (PVR), Minneapolis/St. Paul (MSP) and Mazatlan (MZT), St. Louis (STL) and Cancun (GUN), and St. Louis (STL) and Puerto Vallarta (PVR). Champion Air plans to operate once weekly seasonal scheduled service between DEN and PVR commencing in January 2005. Champion Air plans to operate four flights per week seasonal scheduled service between DFW and CZM commencing in May 2004. Champion Air plans to operate two flights per week seasonal scheduled service between DFW and PVR commencing in May 2004. Champion Air plans to operate three flights per week seasonal scheduled service between MSP and MZT commencing in December 2004. Champion Air plans to operate two flights per week year round• scheduled service between STL and CUN along with additional seasonal services commencing in May 2004. Champion Air plans to operate two flights per week seasonal scheduled service between STL and PVR commencing in June 2004. Champion Air asks that the requested authority be effective immediately and remain in effect for two years. By: Champion Air, Curt Berchtold, 952-814-8785 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-04-17470 - Frontier - St. Louis-Cancun April 8, 2004 On April 1, 2004 Frontier Airlines, Inc. applied for authority to provide scheduled service between St. Louis, Missouri and Cancun, Mexico. On April 2, USA 3000 Airlines filed an application to operate service on this route and on March 24 Champion Air filed an application to operate service on this route. If true open skies existed between the U.S. and Mexico, Frontier would not object to the petitions of either Champion or USA 3000 to serve the STL-CUN market. However, given the fact that only one additional carrier can be designated and licensed to provide this service, the choice should be Frontier. In addition to introducing year-round scheduled service between STL and CUN, Frontier is working with the airport authority and the STL community to establish alternative travel options to various domestic and international locations from STL. Frontier would make far greater use of its STL-CUN route rights than would either USA 3000 or Champion. As the Department of Transportation stated when it recently allocated (Order 2004-4-1) Ronald Reagan Washington National Airport slots to Frontier. Frontier is a new entrant/limited incumbent with a record as a low-fare competitor that will help discipline the multiple markets that it serves via its Denver hub. If Frontier can add international service to its domestic presence in STL, that same discipline will be brought to all markets in STL. Moreover, by adding an international destination, Frontier’s base in STL will also expand. Counsel: Ungaretti & Harris, Edward Faberman, 202-639-7501, epfaberman@uhlaw.com OST-04-17408 - US-Mexico April 8, 2004 Brendan Airways, LLC, d/b/a USA 3000 Airlines hereby answers in opposition to a portion of the March 24, 2004 application submitted by Grand Holdings, Inc., d/b/a Champion Air requesting an exemption to operate scheduled services on a number of U.S.-Mexico combination routes, including the 81. Louis, MO-Cancun, Mexico route. As Champion Air states in its application, under the terms of the U.S.-Mexico Bilateral Air Service Agreement the United States is entitled to designate up to two (2) airlines to provide U.S.-Mexico scheduled airline services in any city-pair. USA 3000 understands that, at present only American Airlines is designated and currently operates scheduled services in the St. Louis-Cancun city-pair, leaving one additional designation available for designation. In view of the fact that Champion Air and USA 3000 both have pending applications for St. Louis-Cancun exemption authority and only one designation is available, USA 3000 submits that these applications are mutually exclusive. Under the principles established by the Supreme Court in Ashbacker Radio Corn v. FCC, the Department is required to conduct a carrier selection proceeding to choose the applicant whose proposal will generate the maximum public benefit. Counsel: Pierre Murphy, 202-776-3980, pmurphy@lopmurphy.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 OST-04-17408 - Champion Air - St. Louis-Cancun April 16, 2004 Consolidated Answer and Motion of Champion Air for Consolidation Grand Holdings, Inc. d/b/a Champion Air hereby submits the following answer in support of its application and in opposition to the applications of Frontier Airlines, Inc. and USA 3000 Airlines for authority to operate nonstop service between St. Louis, Missouri and Cancun, Mexico. Champion Air also requests that the Department set down a simplified and expedited carrier selection proceeding consolidating the above-captioned applications and to establish uniform procedural dates for consideration of these applications. Champion Air objects to the applications of Frontier and USA 3000 for exemption authority in the St. Louis-Cancun city-pair market to the extent that these applications preclude Champion Air's applications for authority in this market. If true open skies existed between the U.S. and Mexico, Champion Air would not object to the petitions of either Frontier or USA 3000 to serve the St. Louis-Cancun market. However, given the fact that only one additional carrier can be designated and licensed to provide this service, the choice should be Champion Air. Champion Air understands that American Airlines holds one of the two designations in the St. Louis-Cancun market, leaving one designation available for allocation. By: Champion Air, Edward Davidson, 952-814-8785, edward.davidson@championair.com OST-04-17408 - US-Mexico Filed March 24, 2004 | Issued June 1, 2004 Scheduled foreign air transportation of persons, property, and mail between: (1) the terminal point Denver, Colorado, and the terminal point Puerto Vallarta, Mexico; (2) the terminal point Dallas/Ft. Worth, Texas, and the terminal point Cozumel, Mexico; (3) the terminal point Dallas/Ft. Worth, Texas, and the terminal point Puerto Vallarta, Mexico; (4) the terminal point Minneapolis/St. Paul, Minnesota, and the terminal point Mazatlan, Mexico; (5) the terminal point St. Louis, Missouri, and the terminal point Cancun, Mexico; (6) the terminal point St. Louis, Missouri, and the terminal point Puerto Vallarta, Mexico. With the exception of the St. Louis-Cancun market (where Champion Air proposes year-round service), Champion Air proposes to provide seasonal service in all of the subject markets. No party opposed the applicant’s request for authority to serve the Dallas/Ft. Worth-Cozumel/Puerto Vallarta, Minneapolis/St. Paul-Mazatlan, and St. Louis-Puerto Vallarta markets. By: Paul Gretch 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-04-17408 - US-Mexico August 10, 2004 Re: Dormancy Notice - Minneapolis/St.Paul-Mazatlan Pursuant to the Department’s dormancy procedures with regard to U.S.-Mexico services, Grand Holdings, Inc. d/b/a Champion Air hereby notifies the Department that Champion Air does not intend to operate scheduled Minneapolis/St. Paul-Mazatlan, Mexico service, approved by Notice of Action Taken dated June 1, 2004 in Docket OST-2004-17408. Champion Air has no objection therefore to the request by Northwest Airlines, Inc. for designation on the Minneapolis-Mazatlan route By: Champion Air, Edward Davidson, 952-814-8785, edward.davidson@championair.com 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-04-18692 - 2004 US-Mexico Combination Service Proceeding August 20, 2004 Motion of Frontier for Immediate Action By Order 04-7-17 the Department instituted this proceeding, in part, to select a carrier to operate scheduled service between St. Louis and Cancun. Frontier, Champion, and USA 3000 submitted applications for the St. Louis-Cancun authority. The Order established a procedural schedule for the filing of direct exhibits setting forth detailed information regarding each applicant's service proposals, and required the filing of certain additional documents. The Department also made clear that the provision of the information was mandatory, and stated "we expect all applicants to set out their firm proposals at the Direct Exhibit stage." (p. 6, footnote 8) As Champion failed to present any information or exhibits in the Denver-Cancun and Denver-Puerto Vallarta docket, it has also not submitted any of the information that the Department ordered to be submitted in the St. Louis-Cancun proceeding. On August 16, 2004, Frontier and USA 3000 filed the STL-CUN information required to be submitted under the Order. However, Champion has not filed any of the additional information set forth in the Order. Champion cannot be allowed to participate in this proceeding unless it provides all the requested information. If Champion had a valid basis for not submitting the information requested, it should have filed a motion. Since Champion has elected not to participate in this proceeding, its application for St. Louis-Cancun should be dismissed. Of course, Champion can continue to operate charter flights in this market. Counsel: Ungaretti & Harris, Edward Faberman, 202-639-7502, epfaberman@uhlaw.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 20, 2004 Answer of Frontier Airlines to Motions of United and Spirit Frontier Airlines, Inc. files this answer in response to certain issues raised in the August 18 Motion of United Airlines, Inc. and the August 20 Motion of Spirit Airlines, Inc. seeking dismissal of the Denver-Cancun, Denver-Puerto Vallarta, and Detroit-Cancun exemption applications of Grand Air Holdings, Inc., d/b/a Champion Air, due to Champion's failure to prosecute its pending applications or to comply with any of the terms or requirements of the Instituting Order in the 2004 U.S.-Mexico Combination Service Proceeding (see: Order 2004-7-17 herein). This filing supplements Frontier's earlier filing of today asking the Department of Transportation to dismiss to dismiss Champion's application for St. Louis-Cancun service since Champion has not filed documents in the STL-CUN proceeding. As to other issues raised by United and Spirit, Frontier does not support changing the briefing schedule set forth in Order 2004-7-17 nor does Frontier support elimination of the briefing requirement. Wherefore, Frontier again urges the Department to dismiss Champion's STL-CUN application. Moreover, Frontier opposes any proposal to accelerate or eliminate the briefing requirements. Counsel: Ungaretti & Harris, Edward Faberman, 202-639-7502, epfaberman@uhlaw.com
OST-04-17470 - Frontier - St. Louis-Cancun August 23, 2004 United's basis for requesting that the Department dismiss Champion's Denver-Cancun and Denver-Puerto Vallarta applications is identical to the motion submitted for Frontier to dismiss Champion's St. Louis-Cancun application and Spirit Airlines' motion to dismiss Champion's Detroit-Cancun application. Since Champion has elected not to participate in any of those proceedings, its applications for Cancun authority, including for the St. Louis‑Cancun authority, should be handled simultaneously, and dismissed at the same time. This is particularly so since the various Champion Cancun applications involve the same legal and factual issues. Counsel: Ungaretti & Harris, Edward Faberman, 202-639-7502, epfaberman@uhlaw.com
OST-04-17299 - United Air Lines - Denver-Cancun 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 OST-04-18692 - 2004 US-Mexico Combination Service Proceeding August 23, 2004 United's basis for requesting that the Department dismiss Champion's Denver-Cancun and Denver-Puerto Vallarta applications is identical to the motion submitted for Frontier to dismiss Champion's St. Louis-Cancun application and Spirit Airlines' motion to dismiss Champion's Detroit-Cancun application. Since Champion has elected not to participate in any of those proceedings, its applications for Cancun authority, including for the St. Louis‑Cancun authority, should be handled simultaneously, and dismissed at the same time. This is particularly so since the various Champion Cancun applications involve the same legal and factual issues. Counsel: Ungaretti & Harris, Edward Faberman, 202-639-7502, epfaberman@uhlaw.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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