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OST-2005-21709 - Centurion Air Cargo - US-Mexico Scheduled All-Cargo
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Centurion Air Cargo, Inc. OST-2005-21709 - Exemption - US-Mexico Scheduled All-Cargo Services June 24, 2005 Application for an Exemption and Designation Centurion proposes to operate five scheduled all‑cargo flights each week Miami and Mexico City/Guadalajara and five scheduled all‑cargo flights each week between Los Angeles and Mexico City/Guadalajara. Centurion will provide these services using DC‑10 freighter aircraft. United Parcel Service holds Los Angeles-Guadalajara authority; Astar Air Cargo, Inc. holds Los Angeles - Mexico City authority; and Amerijet International holds Miami-Mexico City and Miami-Guadalajara authority. Atlas Air Cargo currently holds authority in the Los AngelesMexico City and Los Angeles-Guadalajara markets. See DOT Order 96-11-24 (Dec. 2, 1996) (for Amerijet; Astar; and UPS authority); Notice of Action Taken, Docket OST-2000-7282 (Dec. 10, 2003); (UPS); Notice of Action Taken, Docket OST-2002-13299 (Sept. 10, 2004) (Atlas); and Notice of Action Taken, Docket OST-2005-21306 (June 14, 2005) (Astar). Counsel: Zuckert Scoutt, William Callaway, 202-298-8660, whcallaway@zsrlaw.com OST-2005-21709 - Exemption - US-Mexico Scheduled All-Cargo July 11, 2005 Answer of Capital Cargo International Airlines to Application for an Exemption and Designation Capital Cargo simply wants to use this occasion to reiterate its long-standing, strong interest in providing scheduled all-cargo services between the U.S. and Mexico, in the event that an existing designation becomes available or additional designations are negotiated by the U.S. with the Government of Mexico. If and when an existing or new designation becomes available, Capital Cargo will file an application for an exemption and designation for scheduled all-cargo services between the U.S. and Mexico. As it proposed in the 2002 US.-Mexico All-Cargo Exemption Service Case (OST-2002-13299) and during the most recent round of U.S.-Mexico bilateral negotiations late last year and earlier this year, Capital Cargo would specifically propose to provide scheduled allcargo services between Toledo, Ohio, on the one hand, and Saltillo, Guadaljara, and Monterrey, Mexico, on the other hand. Counsel: Preston Gates, Jonathan Blank, 202-628-1700, jblank@prestongates.com OST-2005-21709 - Exemption - US-Mexico Scheduled All-Cargo Services July 14, 2005 Re: Atlas Air Relinquish of US-Mexico All-Cargo Designations We believe it would be in the public interest to highlight for all concerned that Atlas Air, Inc. recently relinquished its U.S.-Mexico scheduled all-cargo designation. This was done June 6, 2005 by letter to the Director of the Office of International Avia-tion, in which we indicated that we can meet the Mexico capacity needs of our customers by operating charters, and was reported the same day in a filing in Docket OST-2005-21441. Consequently, the scheduled all-cargo designation formerly held by Atlas should be available for reassignment. Counsel: Atlas Air, Russell Pommer, 202.822.9121, rpommer@atlasair.com Centurion Air Cargo, Inc. OST-2005-21709 - Exemption - US-Mexico Scheduled All-Cargo August 15, 2005 Supplement No. 1 to Application for an Exemption and Designation Centurion proposes to operate five scheduled all-cargo flights each week in each of the following markets: Miami-Mexico City; Miami-Guadalajara; Los Angeles-Mexico City; and Los Angeles-Guadalajara. The services would be operated on a year-round basis. The routing of individual flights may vary depending upon seasonal and directional fluctuations in demand. Centurion would operate the proposed services with DC-10 freighter aircraft. The Company currently operates a fleet of 3 DC-10-30 freighters and 1 DC-10-40 freighter, each with a capacity of approximately 155,000 pounds. In addition, a fourth DC-10-30 freighter will enter service in early September, and a fifth DC-10-30 freighter will enter service a month later. Counsel: Zuckert Scoutt, William Callaway, 202-298-8660, whcallaway@zsrlaw.com OST-2005-21709 - Exemption - US-Mexico Scheduled All-Cargo Services August 29, 2005 Withdrawn Representation of William Callaway This is to advise the Department that the undersigned counsel has had to withdraw from its representation of Centurion Air Cargo in the referenced proceeding due to an unforeseen and unanticipated potential conflict of interest. Future correspondence with respect to this matter should be addressed to:
By: Zuckert Scoutt, William Callaway, 202-298-8660 OST-2005-21709 - Exemption - US-Mexico Scheduled All-Cargo Services August 30, 2005 Based on the applications filed to date, Capital Cargo respectfully submits that it is the only one of the three applicants that will fully operate its proposed U.S.-Mexico services at maximum capacity on a year-round basis. For its part, Centurion proposes to use excessively large DC 10 freighter aircraft, with a capacity of between 152,600 and 161,500 pounds. It proposes to operate an incredible five flights weekly in each of four U.S.-Mexico markets, presumably using three to five of the DC 10's described in its application. It also reserved the right to seek to operate scheduled services in even more U.S.-Mexico markets. Similarly, Florida West also proposes to use excessively large aircraft of its own (B767-300F) and wet leased from others (e.g. B747-200, DC 10-30, B767-200), with its own aircraft having a capacity of more than 116,000 pounds. It proposes to operate an astonishing 24 flights each week and serve seven different U.S.-Mexico markets. Although it proposes to operate these services year-round, as Florida West also states, "During low traffic periods, FWIA may add stops in Costa Rica, Guatemala, Panama, Honduras, El Salvador, Colombia or Ecuador to ensure maximum utilization of it aircraft." This indicates that Florida West itself does not believe it can fully operate its proposed U.S.-Mexico services on a year-round basis. It also reveals that Florida West is as much, if not more, focused on further developing its presence in both Central and South America through beyond-Mexico service, as it is in starting up and fully operating U.S.-Mexico services themselves. In contrast, Capital Cargo has operated its service proposal (a Toledo-SaltilloGuadaijara-Monterrey-Toledo roundtrip routing using B727-200 aircraft), profitably and without interruption, five times weekly on a charter basis for more than two years for the same customer. Capital Cargo proposes to operate such service on a scheduled basis for that customer and to sustainably build on such service with that customer and others in the months and years ahead. Counsel: Preston Gates, Jonathan Blank, 202-628-1700, jblank@prestongates.com
Centurion Air Cargo, Inc. OST-2005-21709 - Exemption - US-Mexico Scheduled All-Cargo Services August 30, 2005 Capital proposes to operate service for a single customer, BAX Global, between Toledo, Ohio and Saltillo-Guadalajara-Monterrey, five days a week using a B727-200F with a payload of 50,400 pounds per flight. This service is significantly inferior to Centurion's service which would operate in four U.S. - Mexico markets, which currently lack U.S. all-cargo competition. Florida West proposes 3 day a week service in the MIA/LAX-GDL/MEX market, 2 day a week service in the ORD-MEX and 2 day a week service in the MIA/IAD-GDL/MEX market. The Centurion service of 14 flights a week is substantially superior to the Florida West 7 flight a week proposal. Importantly, the Florida West proposal also raises serious competitive concerns that should disqualify it from consideration in the restricted entry U.S. - Mexico market. Counsel: Greenberg Traurig, Joanne Young, 202-530-8520, youngj@gtlaw.com OST-2005-22149 - Exemption and Designation - US-Mexico All-Cargo Service September 2, 2005 Florida West International Airways, Inc. respectfully files this motion to strike that portion of the just-filed two week late amendment of Centurion Air Cargo, Inc. to its pending application for U.S.-Mexico all-cargo authority. Centurion’s “amended” application, filed on August 27 as part of an Answer to the application filed by other carriers in the proceeding, proposes for the first time to add service to two U.S.-Mexico city-pairs which Centurion’s timely-filed August 15th application did not include. Consideration of Centurion’s request would place the other applicants in this proceeding at an unfair disadvantage. It will thus disrupt completely the short expedited proceeding the Department intended to permit a quick resumption of the use of valuable bilateral rights. The Department should not countenance Centurion’s procedural gamesmanship. Instead it should strike Centurion’s inappropriate amendment and proceed either to evaluate the applications of the parties as filed on August 15 or provide for a rebuttal round addressing the August 15 filings. Counsel: Squire Sanders, Marshall Sinick, 202-626-6651, msinick@ssd.com September 9, 2005 OST-2005-21709 - Exemption - US-Mexico Scheduled All-Cargo Services Centurion Air Cargo, Inc. submits this Answer in Opposition to the Motion to Strike filed by Florida West International Airways, Inc. on September 2, 2005. Contrary to the suggestion of FWIA, Centurion has no intent or desire to place any applicant at a competitive disadvantage in the selection process for the single available U.S.-Mexico all-cargo designation, by seeking to add two U.S. gateways, Boston and Huntsville, to its original application. Counsel: Greenberg Traurig, Joanne Young, 202-530-8520, youngj@gtlaw.com OST-2005-21709 - Centurion - Exemption - US-Mexico Scheduled All-Cargo Services
October 17, 2005 Supplement to Application for an Exemption of Centurion Air Cargo Centurion Air Cargo, Inc. submits this supplement to its application for U.S. - Mexico all-cargo exemption authority in reponse to the Department's Notice of October 5, 2005, concerning the liberalized U.S. - Mexico Air Transport Agreement of September 21, 2005.' The amended Agreement eliminates the prior cap on the number of U.S. all-cargo carriers that may be designated to serve Mexico and increases to 3 the number of all-cargo carriers that may be designated in most city-pair markets. As a result of these changes, the Department can grant the majority of the markets requested by Centurion in it pending application. Specifically, the Department can immediatel grant its requested authority for the following city-pairs: Los Angeles - Mexico City, Boston - Mexico City, Huntsville - Mexico City, Boston - Guadalajara and Huntsville - Guadalajara. Centurion also urges the Department to grant it the contested routes of Los Angeles-Guadalajara and Miami-Mexico City/Guadalajara. Counsel: Greenberg Traurig, Joanne Young, 202-530-8520, youngj@gtlaw.com
October 14, 2005 Supplement of Florida West International Airways Florida West International Airways, Inc. hereby supplements its pending application for an exemption and designation to engage in the scheduled foreign air transportation of property and mail between Miami, Florida, Los Angeles, California, Chicago, Illinois, and Houston, Texas, on the one hand, and Mexico City and Guadalajara, Mexico, on the other hand, and integrate this authority with all other services it is otherwise authorized to conduct pursuant to its exemption and certificate authorities, consistent with applicable agreements between the U.S. and foreign countries. FWIA affirms its request for authority to serve these routes, and that it will begin service within ninety days of receipt of all government approvals. To be perfectly clear, FWIA is the superior applicant for the limited-entry route authority at issue because FWIA, using a combination of more fuel efficient B767-300F aircraft and, as needed, larger capacity DC-10 and B747 aircraft, is proposing a more economically sustainable service pattern. Of equal significance, FWIA has a track record of carrying more than twice as much cargo in the aggregate as Centurion Air Cargo, Inc. in the Los Angeles/Miami-Mexico City/Guadalajara markets, in addition to FWIA's greater experience in the retail scheduled freight business. The combined weight of all these factors establishes FWIA decisively as the more attractive applicant. Counsel: Squire Sanders, Marshall Sinick, 202-626-6651, msinick@ssd.com Delta Air Lines, Inc. / JetBlue Airways Corp. / USA 3000 Airlines / Frontier Airlines, Inc. / Spirit Airlines, Inc. / United Air Lines, Inc. / ExpressJet Airlines, Inc. / America West Airlines, Inc. / Florida West International Airways, Inc. / Centurion Air Cargo, Inc. / Kitty Hawk Air Cargo, Inc OST-2005-22551 - Delta - Exemption - New York-Cancun Served October 20, 2005 Notice Suspending Further Procedures | Word By Notice dated October 5, 2005, we invited interested U.S. carriers to supplement already-filed applications and/or to file new exemption/certificate applications for new U.S.-Mexico combination and all-cargo air transportation services under the September 21, 2005, Memorandum of Consultations between the United States and Mexico. We instructed U.S. carriers to file their submissions within seven business days of the Notice, that is, not later than October 17, 2005. Our stated objective in issuing the October 5 Notice was to be in a position promptly to implement the new rights once they become effective (currently anticipated to occur on October 26, 2005), and to promote an orderly process for doing so. We have received numerous applications and supplements to existing applications for the newly available authority and, accordingly, have now identified the service markets for which carrier selection proceedings will be necessary. Captioned above are those city-pair markets for which we will be instituting carrier selection proceedings. Also captioned above are dockets reflecting limited designation opportunities for all-cargo Mexico City services that will also require carrier selection proceedings. For each of the captioned city-pair markets we are suspending further procedures under 14 CFR part 302 (part 302). Instead, we intend to issue notices shortly, establishing procedures and timetables for the applicants and other interested parties to follow so that we may establish a decisional record for carrier selection as to each of the subject markets. Accordingly, for the city-pair and all-cargo markets captioned, we request that interested parties not file responsive pleadings at this time, but rather that they await the issuance of the aforementioned notices. We hereby suspend as to applications filed for those markets, and until further notice, the procedural requirements of part 302 to the extent consistent with this approach. For all other applications filed in response to our October 5 Notice (i.e., applications seeking authority in markets other than those listed above), the procedures set forth in part 302, including the time limits for filing responsive pleadings, will continue to apply. By: Paul Gretch Delta Air Lines, Inc. / JetBlue Airways Corp. / USA 3000 Airlines / Frontier Airlines, Inc. / Spirit Airlines, Inc. / United Air Lines, Inc. / ExpressJet Airlines, Inc. / America West Airlines, Inc. / Florida West International Airways, Inc. / Centurion Air Cargo, Inc. / Kitty Hawk Air Cargo, Inc OST-2005-22551 - Delta - Exemption - New York-Cancun Served October 20, 2005 Notice Suspending Further Procedures | Word By Notice dated October 5, 2005, we invited interested U.S. carriers to supplement already-filed applications and/or to file new exemption/certificate applications for new U.S.-Mexico combination and all-cargo air transportation services under the September 21, 2005, Memorandum of Consultations between the United States and Mexico. We instructed U.S. carriers to file their submissions within seven business days of the Notice, that is, not later than October 17, 2005. Our stated objective in issuing the October 5 Notice was to be in a position promptly to implement the new rights once they become effective (currently anticipated to occur on October 26, 2005), and to promote an orderly process for doing so. We have received numerous applications and supplements to existing applications for the newly available authority and, accordingly, have now identified the service markets for which carrier selection proceedings will be necessary. Captioned above are those city-pair markets for which we will be instituting carrier selection proceedings. Also captioned above are dockets reflecting limited designation opportunities for all-cargo Mexico City services that will also require carrier selection proceedings. For each of the captioned city-pair markets we are suspending further procedures under 14 CFR part 302 (part 302). Instead, we intend to issue notices shortly, establishing procedures and timetables for the applicants and other interested parties to follow so that we may establish a decisional record for carrier selection as to each of the subject markets. Accordingly, for the city-pair and all-cargo markets captioned, we request that interested parties not file responsive pleadings at this time, but rather that they await the issuance of the aforementioned notices. We hereby suspend as to applications filed for those markets, and until further notice, the procedural requirements of part 302 to the extent consistent with this approach. For all other applications filed in response to our October 5 Notice (i.e., applications seeking authority in markets other than those listed above), the procedures set forth in part 302, including the time limits for filing responsive pleadings, will continue to apply. By: Paul Gretch OST-2005-22151 - FWIA - Exemption and Designation - US-Mexico All-Cargo Issued December 12, 2005 Florida West International Airways - Scheduled foreign air transportation of property and mail between (1) Miami, Florida; Chicago, Illinois; Houston, Texas; and Los Angeles, California; on the one hand, and Mexico City, Mexico, on the other hand; and (2) Miami, Florida; Houston, Texas; and Los Angeles, California; on the one hand, and Guadalajara, Mexico, on the other hand, and to integrate this authority with Florida West's existing certificate and exemption authority. Deferred on Florida West's requests for authority to serve the Houston/Miami/Chicago/Los Angeles-Mexico City and Miami/Los Angeles-Guadalajara markets, including corresponding route integration authority. Capital Cargo International - Scheduled foreign air transportation of property and mail between Toledo, Ohio, on the one hand, and Saltillo, Guadalajara, and Monterrey, Mexico, on the other hand, and to integrate this authority with Capital Cargo's existing certificate and exemption authority. Granted exemption authority to Capital Cargo to serve the Toledo-Saltillo, Toledo-Guadalajara, and Toledo-Monterrey markets, including corresponding route integration authority. We will handle, subsequently, Capital Cargo's application, filed in Docket OST-2005-22750, requesting Toledo-Mexico certificate authority under the Department's recently announced streamlining procedures. Centrion Air Cargo - Scheduled foreign air transportation of property and mail between (1) Miami, Florida; Los Angeles, California; Boston, Massachusetts; and Huntsville, Alabama; on the one hand, and Mexico City, Mexico, on the other hand; and (2) Miami, Florida; Los Angeles, California; Boston, Massachusetts; and Huntsville, Alabama; on the one hand, and Guadalajara, Mexico, on the other hand, and to integrate this authority with Centurion's existing certificate and exemption authority. Granted exemption authority to Centurion to serve the Boston-Guadalajara, and Huntsville-Guadalajara markets, including corresponding route integration authority (subject to conditions, see below) Deferred on Centurion's requests for authority to serve the Miami-Mexico City, Los Angeles-Mexico City, Boston-Mexico City, Huntsville-Mexico City, Miami-Guadalajara, and Los Angeles-Guadalajara markets, including corresponding route integration authority (see remarks, below) Dismissed, as moot, Florida West's September 2 Motion to Strike Centurion's August 30 Amendment. Kitty Hawk Aircargo - Scheduled foreign air transportation of property and mail between Ft. Wayne, Indiana, on the one hand, and Guadalajara, Monterrey, and Mexico City (Benito Juarez), Mexico, on the other hand, and to integrate this authority with Kitty Hawk's existing certificate and exemption authority. Granted exemption authority to Kitty Hawk to serve the Ft. Wayne-Guadalajara and Ft. Wayne-Monterrey markets, including corresponding route integration authority (subject to conditions, see below) Deferred on Kitty Hawk's request for authority to serve the Ft. Wayne-Mexico City (Benito Juarez) market, including corresponding route integration authority. By: Paul Gretch OST-2005-21709 - Exemption - US-Mexico Scheduled All-Cargo February 24, 2006 Application for Waiver of Dormancy Condition Centurion Air Cargo, Inc. requests a waiver of the 90-day dormancy condition imposed on the Department's award of all-cargo route authority issued to centurion by Notice of Action Taken dated December 12, 2005. Centurion requests that the dormancy condition be waived until 90 days after the Department acts on the deferred portion of the pending application of centurion in this Docket for authority to Mexico city from various U.S. cities and to Guadalajara from Los Angeles and Miami. Serving Mexico City and Guadalajara from Miami and Los Angles are critical components of the scheduled all‑cargo service Centurion seeks to operate to Mexico. After reviewing potential traffic for just the Boston/Huntsville‑ Guadalajara markets, Centurion has concluded it cannot economically operate such limited scheduled service necessitating the filing of this waiver request. Centurion understands given conflicting applications for Mexico City authority and Los Angles and Miami authority to Guadalajara that the Department must complete a comparative selection process. The NOAT indicated the Department would initiate such a process. Centurion has additional information to submit in support of an award to it of the deferred markets requested in its application and urges the Department to issue an instituting order as soon as possible establishing a procedural schedule to allocate the additional all‑cargo authority created by the new bilateral. Counsel: Greenberg Traurig, Joanne Young, 202-530-8520, youngj@gtlaw.com OST-2005-21709 - Exemption - US-Mexico Scheduled All-Cargo Services March 2, 2006 This is to advise that we have completed our polling of the carriers on Centurion's service list in connection with its Application for Waiver of Dormancy Condition for start up of all-cargo service in the Boston/Huntsville-Guadalajara markets. There were no objections. Counsel: Greenberg Traurig, David Kirstein, 202-560-8521, kirsteind@gtlaw.com OST-2005-21709 - Exemption - US-Mexico Scheduled All-Cargo Services Filed February 24, 2006 | Approved March 9, 2006 Department Action on Application We waive the dormancy conditions on the subject authority until further notice. By: George Wellington |
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