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Updated: Tuesday, December 4, 2007 7:44 AM


OST-2005-22149 - Capital Cargo International - US-Mexico All-Cargo

http://www.capitalcargo.com/


US-Mexico All-Cargo Notice


Capital Cargo International Airlines, Inc.

OST-2005-22149 - Exemption and Designation - US-Mexico All-Cargo

August 15, 2005

Application for an Exemption and Designation

Hereby requests an exemption from 49 U.S.C. § 41101 to provide foreign scheduled air transportation of property and mail between Toledo, Ohio, on the one hand, and Saltillo, Guadalajara, and Monterrey, Mexico, on the other. Capital Cargo further requests the right to integrate such authority with both its current scheduled interstate all-cargo air transportation certificate authority and its foreign charter all-cargo air transportation certificate authority. In addition, Capital Cargo requests that the U.S. Government designate it to provide U.S.- Mexico all-cargo service under the U.S.- Mexico Air Transport Agreement.

Capital Cargo proposes to provide these services using B727-200 freighter aircraft. The operational capacity of Capital Cargo's B727-200F aircraft on the proposed U.S.- Mexico routing of Toledo-Saltillo-Guadalajara-Monterrey-Toledo is 50,400 pounds per flight, providing 252,000 pounds per week or 13,104,000 pounds per year, in each direction.

Counsel: Capital Cargo and Preston Gates, Jonathan Blank, 202-628-1700, jblank@prestongates.com



OST-2005-21709 - Exemption - US-Mexico Scheduled All-Cargo Services
OST-2005-22151 - Exemption and Designation - US-Mexico All-Cargo
OST-2005-22149 - Exemption and Designation - US-Mexico All-Cargo

August 30, 2005

Amended of Centurion Cargo Application and Opposition to Applications of Capital Cargo International Airlines and Florida West International Airways

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
OST-2005-21709 - Exemption - US-Mexico Scheduled All-Cargo Services
OST-2005-22151 - Exemption and Designation - US-Mexico All-Cargo

September 2, 2005

Motion to Strike

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



OST-2005-21709 - Exemption - US-Mexico Scheduled All-Cargo Services
OST-2005-22149 - Exemption and Designation - US-Mexico All-Cargo Service
OST-2005-22151 - Exemption and Designation - US-Mexico All-Cargo

September 9, 2005

Answer of Centurion Air Cargo in Opposition to the Motion to Strike of Florida West International Airways

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
OST-2005-22149 - Capital Cargo - Exemption and Designation - US-Mexico All-Cargo Service
OST-2005-22151 - Florida West - Exemption and Designation - US-Mexico All-Cargo


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



OST-2005-22151 - FWIA - Exemption and Designation - US-Mexico All-Cargo
OST-2005-21709 - Capital Cargo - Exemption - US-Mexico Scheduled All-Cargo Services
OST-2005-22149 - Centurion - Exemption and Designation - US-Mexico All-Cargo Service
OST-2005-22751 - Kitty Hawk - Exemption - US-Mexico Scheduled Cargo Service

Issued December 12, 2005

Notice of Action Taken

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



March 2, 2006

Application for a Waiver of Dormancy Condition

Capital Cargo hereby requests a 90-day waiver of the 90-day dormancy condition imposed by the Department's award of all-cargo scheduled exemption authority to Capital Cargo by Notice of Action Taken dated December 12, 2005. The 90-day dormancy notice period associated with Capital Cargo's all cargo scheduled authority began on December 12, 2005, when the Notice of Action Taken was issued, and ends on March 13, 2006. Given that answers to this application would normally not be due until after March 13th, Capital Cargo will poll the carriers list d on the attached service list to determine if there are any objections to this Application and notify the Department accordingly.

While Capital Cargo expects to have the necessary Mexican Government approvals in hand before March 13th, in the event that it should take longer to obtain those approvals, a 90-day waiver of the dormancy condition - as opposed to a shorter waiver period - should prevent the need for the Department to act on a further waiver request in the future. This would thereby minimize the administrative burden to the Department associated with this matter.

Counsel: Preston Gates, Jonathan Blank, 202-628-1700, jblank@prestongates.com



March 7, 2006

Re: Polling Results

Please be advised that we have contacted all U.S. cargo carriers serving the U.S.-Mexico market, and the representatives for those carriers have advised us that they have no objection to the above-referenced application.

Counsel: Preston Gates, David Thomas, 202-661-3864, davidth@prestongates.com



Filed March 2, 2006 | Approved March 9, 2006

Department Action on Application

The new dormancy deadline for the subject authority is June 12, 2006.

By: George Wellington



May 15, 2006

Application for a Waiver of Dormancy Condition

After obtaining the exemption authority from the Department, Capital Cargo applied to the Mexican Government for the necessary approvals to operate this scheduled all-cargo service. Capital Cargo had expected to obtain the necessary Mexican approvals and to be operating on a scheduled basis by now, but despite Capital Cargo's best efforts the Mexican Government has not yet granted those approvals. Capital Cargo is already operating, on a charter basis, the services authorized by the Notice of Action Taken to be provided on a scheduled basis, such that Capital Cargo will be able to quickly convert the services to a scheduled basis once the Mexican Government approvals are obtained. In the event that the Mexican Government still has not granted the necessary approvals by June 12, 2006, Capital Cargo hereby applies for an additional 90-day waiver of the 90-day dormancy condition from the Department.

Counsel: Preston Gates, Jonathan Blank, 202-628-1700, jblank@prestongates.com



May 30, 2006

Re: Polling Results

Please be advised that I have contacted all parties named on the service list attached to the above-referenced application dated May 15, 2006, and they have advised me that they have no objection to the above-referenced application.

Counsel: Preston Gates, David Thomas, 202-661-3866, davidth@prsestongates.com



Filed May 15, 2006 | Approved June 1, 2006

Department Action on Application - Waiver of Dormancy Condition

By: Esta Rosenberg



August 9, 2006

Application for a Waiver of Dormancy Condition

On December 12, 2005, the Department issued a Notice of Action Taken in this Docket granting Capital Cargo exemption authority to provide foreign scheduled air transportation of property and mail between Toledo, Ohio, on the one hand, and Saltillo, Guadalajara, and Monterrey, Mexico, on the other.

After obtaining the exemption authority from the Department, Capital Cargo applied to the Mexican Government for the necessary approvals to operate this scheduled all-cargo service. Pending those approvals, Capital Cargo continues to operate, on a charter basis, the services authorized by the Notice of Action Taken to be provided on a scheduled basis, such that Capital Cargo will be able to quickly convert the services to a scheduled basis once all Mexican Government approvals are obtained. In the event that all Mexican Government approvals have not been obtained by September 12, 2006, Capital Cargo hereby applies for an additional 90-day waiver of the 90-day dormancy condition from the Department.

Counsel: Preston Gates, David Thomas, 202-628-1700, davidth@prestongates.com



August 22, 2006

Re: Polling Results of Capital Cargo International

Please be advised that I have contacted all parties named on the service list attached to the above-referenced application dated August 9, 2006, and they have advised me that they have no objection to the above-referenced application.

Counsel: Pretson Gates, Davis Thomas, 202-661-3864, davidth@prestongates.com



Filed August 9, 2006 | Issued September 8, 2006

Notice of Action Taken

Additional waiver of 90-day dormancy condition for U.S.-Mexico all-cargo service.

By: Paul Gretch



November 27, 2007

Application for Renewal of an Exemption

By Notice of Action Taken on December 12, 2005, in Docket OST-2005-22149, the Department granted Capital Cargo exemption authority to conduct 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. This exemption authority will expire by its terms on December 12, 2007.

If granted a renewal of the exemption authority requested herein, Capital Cargo will continue to provide services on the proposed U.S.-Mexico routing of Toledo-Saltillo-Guadalajara-Monterrey-Toledo using its fleet of B727-200F aircraft. The operational capacity of Capital Cargo's B727-200F aircraft on the proposed route is 50,400 pounds per flight, providing 252,000 pounds per week or 13,104,000 pounds per year, in each direction. This is equivalent to 26,208,000 pounds of capacity per year in total. The B727-200F aircraft with which Capital Cargo proposes to provide these services is on-hand, in-service, and FAR 36-compliant.

Counsel: Kirkpatrick & Lockhart, Jonathan Blank, 202-778-9000, jonathan.blank@klgates.com



December 3, 2007

Re: Polling Results

We have polled the air carrier representatives served with the above-referenced application, and no carrier has objected to the relief sought therein. Accordingly, Capital Cargo International Airlines, Inc., respectfully asks that the requested exemption be renewed as soon as possible.

Counsel: K&L | Gates, Jonathan Blank, 202-661-6250, jonathan.blank@klgates.com


Filed November 27, 2007 | Issued December 3, 2007

Notice of Action Taken | Word

Renewal of 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.

Capital Cargo’s current exemption authorization to serve the Toledo-Saltillo/Guadalajara/Monterrey markets includes authority to integrate the subject services with Capital Cargo’s existing certificate and exemption authority (see Notice of Action Taken dated December 12, 2005, in Docket OST-2005-22149).  Although, the carrier did not specifically request renewal of the route integration authority in the present application, we will construe the carrier’s request for renewal of its authority as a request for renewal of the existing route integration authority, as well.

By: Paul Gretch


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