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Updated: Friday, August 27, 2004 10:43 AM

OST-04-17491 - United Air Lines - Denver-Puerto Vallarta

United Air Lines, Inc.

OST-04-17491 - Exemption - Denver-Puerto Vallarta

Application for an Exemption

United seeks an exemption authorizing it to provide scheduled foreign air transportation of persons, property and mail between Denver, Colorado and Puerto Vallarta, Mexico. United plans initially to operate daily service using its "Ted" product on a seasonal basis from Denver International Airport December through April. The services will start December 16, 2004. From its Denver hub, United serves 89 non-stop destinations, offering connection opportunities to points throughout its system. United plans to operate its proposed services with A320 equipment with 156 seats, including 66 Economy Plus and 90 Economy seats, or similar aircraft.

See Application of Champion filed March 24, 2004, in Docket OST-04-17408, seeking inter alia, exemption authority to operate scheduled services between Denver and Puerto Vallarta. United has today filed a Consolidated Answer and Motion for Consolidation of the pending competing applications for Denver-Puerto Vallarta and Denver-Cancun service in Dockets OST-04-17299/17407/17408/17416 and the docket assigned to this application. See Notice of Action Taken dated July 23, 2003, in Docket OST-03-15371 (granting an exemption to Frontier Airlines, Inc. for Denver-Puerto Vallarta service).

Counsel: United and Wilmer Cutler, Jeffrey Manley, 202-663-6670, jeffrey.manley@wilmer.com


OST-04-17299 - Denver-Cancun (United Air Lines)
OST-04-17407 - Denver-Cancun (Champion Air)
OST-04-17408 - Denver-Puerto Vallarta (Champion Air)
OST-04-17416 - Denver-Cancun (Allegiant Air)
OST-04-17491 - Denver-Puerto Vallarta (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-04-17491 - Denver-Puerto Vallarta
OST-04-17676 - Denver-Ixtapa/Zihuatenejo, Denver-San Jose del Cabo

June 17, 2004

Re: Letter in Support from the City and County of Denver for Exemption to Serve Denver-Puerto Vallarta, Ixtapa/Zihuatanejo, and San Jose del Cabo Markets

Counsel: Wilmer Cutler, Jonathan Moss, 202-663-6655, jonathan.moss@wilmerhale.com


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-04-18692 - 2004 US-Mexico Combination Service Proceeding
OST-04-17299 - United Air Lines - Denver-Cancun
OST-04-17407 - Champion Air - Denver-Cancun
OST-04-17408 - Champion Air - US-Mexico
OST-04-17416 - Allegiant Air - Denver-Cancun
OST-04-17491 - United Air Lines - Denver-Puerto Vallarta

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
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


OST-04-18692 - 2004 US-Mexico Combination Service Proceeding
OST-04-17299 - United Air Lines - Denver-Cancun
OST-04-17407 - Champion Air - Denver-Cancun
OST-04-17408 - Champion Air - US-Mexico
OST-04-17416 - Allegiant Air - Denver-Cancun
OST-04-17491 - United Air Lines - Denver-Puerto Vallarta

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.

OST-04-17407 - Champion Denver-Cancun Application
OST-04-17408 - Champion Denver-Puerto Vallarta Application

By: Paul Gretch

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