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OST-04-17416 - Allegiant Air - Denver-Cancun
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Allegiant Air, Inc. OST-04-17416 - Exemption - Denver-Cancun March 25, 2004 Allegiant plans to operate Denver-Cancun scheduled service with aircraft from its existing fleet. The route is comparable to domestic scheduled routes operated by Allegiant, and is currently served by regular and frequent Allegiant charter flights (four days per week). As such, Denver-Cancun scheduled service is well within Allegiant's established scope of operations. Allegiant plans to begin scheduled Denver-Cancun service on July 1, 2004, or as soon thereafter as all necessary U.S. and Mexican licenses have been obtained. Service will operate year-round. 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 Denver and Cancun, leaving one additional designation available for allocation. United Air Lines and Champion Air have applied for Denver-Cancun exemption authority on March 10 and March 24, 2004, in Dockets OST-2004-17299 and OST-2004-17407, respectively. Allegiant has today answered in opposition to both applications. On or after March 30, 2004, Allegiant will merge with and into Allegiant Air, LLC, a Nevada limited liability company, which will be the surviving entity. This corporate restructuring is being undertaken for business and tax reasons, and will have no effect upon the management, ownership, control, operations, financial condition or citizenship of Allegiant. See Docket OST-2004-17121 for additional information. 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-04-17416 - Denver-Cancun August 16, 2004 Motion of Allegiant Air for Leave to Withdraw Application One can scarcely imagine what circumstances could have changed so dramatically that a proposed market in which United would commit to only one flight per week in March 2004, merited a seven-fold increase in that commitment by June 2004. The only plausible explanation for such absurdity is that United's intent in March was to tie up the sole remaining Denver-Cancun designation with the bare minimum of service accepted by the Department - one round trip per week - to foreclose the introduction of scheduled Cancun service by an independent carrier, such as Allegiant, at United's Denver hub. No doubt this desire was inflamed by the presence of United's principal competitor at Denver, Frontier Airlines, on the Denver-Cancun scheduled route. Based on its own year-round Denver-Cancun operating experience, Allegiant knows the market will not support two carriers operating daily flights, no matter the form of service. Consequently, were Allegiant to continue as a participant in the Denver-Cancun selection case, it could not in good faith prosecute a service proposal involving more than the four round trips per week it originally proposed. Counsel: Garofalo Goerlich, Aaron Goerlich, 202-776-3974, agoerlich@ggh-airlaw.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-04-17470 - 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 |
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