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Updated: Thursday, September 20, 2007 7:50 AM


OST-2005-22151 - Florida West International Airways - US-Mexico All-Cargo

http://www.fwia.com/


Florida West International Airways, Inc.

OST-2005-22151 - Exemption and Designation - US-Mexico All-Cargo

August 15, 2005

Application for Exemption and Designation

FWIA requests an exemption and designation permitting it to engage in foreign scheduled air transportation of property and mail between Mexico City/Guadalajara and Miami/Los Angeles/Houston/Chicago. FWIA will serve multiple U.S.-Mexico markets every day. FWIA proposes to operate (a) daily flights serving Miami and Mexico City, and five weekly flights serving Miami and Guadalajara; (b) twice weekly flights serving Chicago and Mexico City; (c) twice weekly flights in the Houston-Guadalajara and Houston-Mexico markets; and (d) three weekly flight serving the Los Angeles-Mexico City and Los Angeles-Guadalajara markets.

As FWIA develops and expands its U.S.- Mexico services it anticipates adding aircraft to its fleet, further diminishing any need for the use of wet leased equipment. FWIA's state-of-the-art B767-300F aircraft have a capacity of 53,000 kg. and do not suffer the payload penalty of some aircraft when operating at high Mexican altitudes

Counsel: FWIA and Squire Sanders, Marshall Sinick, 202-626-6651, msinick@ssd.com

US-Mexico All-Cargo Notice



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

August 30, 2005

Answer of Capital Cargo to Applications of Centurion Air Cargo and Florida West International Airways

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


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-2005-22551 - Delta - Exemption - New York-Cancun
OST-2005-22579 - JetBlue - Exemption - US-Cancun
OST-2005-22636 - USA 3000 - Exemption - Newark/Chicago-Cancun
OST-2005-22580 - Frontier - Exemption - Chicago (MDW)-Cancun
OST-2005-22589 - Spirit - Exemption - Dallas-Ft. Worth/Chicago-Cancun
OST-2005-22767 - United - Exemption - Chicago-Cancun; Los Angeles-San Jose del Cabo; Chicago-Puerto Vallarta; Los Angeles-Puerto Vallarta
OST-2005-22620 - Delta - Exemption - Atlanta-Acapulco; Boston-Cancun; Los Angeles-Puerto Vallarta/San Jose del Cabo/Zihuatanejo; Washington, DC-Cancun
OST-2005-22590 - Frontier - Exemption - Los Angeles-San Jose del Cabo
OST-2005-22766 - ExpressJet - Designation - Los Angeles-San Jose del Cabo
OST-2005-22769 - America West - Exemption - Los Angeles-San Jose del Cabo
OST-2005-22151 - FWIA - Exemption and Designation - US-Mexico All-Cargo
OST-2005-21709 - Centurion - Exemption - US-Mexico Scheduled All-Cargo Services
OST-2005-22751 - Kitty Hawk - Exemption - US-Mexico Scheduled Cargo Service

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
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



February 8, 2006

Application for Waiver of Dormancy Condition

Florida West International Airways, Inc. hereby requests a waiver of the ninety-day dormancy condition attached to the Department of Transportation's award of certain limited U.S.-Mexico scheduled authority to FWIA by Notice dated December 12, 2005, until such time as the Department decides the deferred portions of FWIA's August 15, 2005, exemption application pending in this docket.

FWIA's U.S.-Mexico route proposal is an integrated whole with many of its proposed U.S.-Guadalajara flights also serving another destination in Mexico. Beyond the issue of actual aircraft routings, FWIA's business plan also assumed FWIA would attract shippers by having the authority to sell multiple Mexican destinations. For these reasons, although FWIA appreciates the Department's award to it of an exemption to serve Chicago/Houston-Guadalajara, FWIA cannot feasibly begin operations only on these routes without also instituting its other proposed services to Mexico City and Guadalajara.

Counsel: Squire Sanders, Marshall Sinick, 202-626-6651, msinick@ssd.com



February 28, 2006

Re: Polling Results

We have completed our polling of all persons named on the service list of FWIA's application filed on February 8, 2006 and that, with the one exception described in the next sentence, each such person has advised us that they either have no comment or no objection. The one such person whom FWIA did not hear from was the U.S. Military Airlift Command which, because FWIA is not a member of CRAF, would have no interest in FWIA's application.

Counsel: Squire Sanders, Marshall Sinick, 202-626-6600



Filed February 8, 2006 | Approved March 9, 2006

Department Action on Application

We waive the dormancy conditions on the subject authority until further notice.

By: George Wellington



OST-2005-22151 - Exemption and Designation - US-Mexico All-Cargo
OST-2006-24671 - 2006 US-Mexico All-Cargo Service Proceeding

March 8, 2007

Application for Waiver of Dormancy Condition

Florida West International Airways. Inc. hereby requests a waiver of the ninety-day dormancy condition imposed by the Department of Transportation's Order 2006-11-11 on the exemption authority granted to FWIA to provide scheduled all-cargo foreign air transportation between: (1) Chicago and Mexico City; and (2) Los Angeles and Mexico City; and further imposed on the authority granted to FWIA to provide scheduled allcargo foreign air transportation between: (1) Chicago and Guadalajara; and (2) Houston and Guadalajara. FWIA respectfully requests that the dormancy condition be extended through June 18, 2007, by which date FWIA is hopeful that it will have obtained the required corollary scheduled authority from the Government of Mexico.

FWIA is prepared to inaugurate scheduled service to Mexico as soon as it receives its Mexican authority. FWIA hopes that it will be able to begin scheduled all-cargo service between the United States and Mexico by June 18, 2007. FWIA therefore requests a waiver of the ninety-day start-up condition, which would otherwise require it to commence service to Mexico by March 19, 2007, to June 18, 2007.

Counsel: Squire Sanders, Marshall Sinick, 202-626-6651, msinick@ssd.com



OST-2005-22151 - Exemption and Designation - US-Mexico All-Cargo
OST-2006-24671 - 2006 US-Mexico All-Cargo Service Proceeding


March 15, 2007

Re: Polling Results

This will confirm that FWIA has completed its poll of all persons served with its March 8, 2007, application for waiver of the Mexico dormancy condition. There are no objections to FWIA's application. FWIA therefore requests that the DOT approve its application without delay.

Counsel: Squire Sanders, Marshall Sinick, 202-626-6651, msinick@ssd.com


Filed March 8, 2007 | Approved March 15, 2007

Department Action on Application

We will require the carrier to institute service no later than June 18, 2007.

We acted on this application without awaiting expiration of the answer period with the consent of all parties served with the application.

By: Esta Rosenberg



OST-2006-24671 - US-Mexico All-Cargo Service Proceeding
OST-2005-22151 - Exemption and Designation - US-Mexico All-Cargo

June 11, 2007

Application for Further Waiver of Dormancy Condition

Florida West International Airways, Inc. hereby requests a further waiver of the ninety-day dormancy condition imposed by the Department of Transportation's Order 2006-11-11 on the exemption authority granted to FWIA to provide scheduled all-cargo foreign air transportation between: Los Angeles and Mexico City; and further imposed on the authority granted to FWIA to provide scheduled all-cargo foreign air transportation between: Houston and Guadalajara. See Notice of Action Taken dated December 12, 2005 in Docket OST-2005-22151. FWIA respectfully requests that the dormancy condition, which currently expires on June 18, 2007, be extended through September 17, 2007, by which date FWIA is hopeful that it will have obtained the required corollary scheduled authority from the Government of Mexico.

FWIA is prepared to inaugurate scheduled service to Mexico as soon as it receives its Mexican authority. FWIA hopes that it will be able to begin scheduled all-cargo service between the United States and Mexico by September 17, 2007. FWIA therefore requests a further waiver of the ninety-day start-up condition.

Other than approval of the amended operations specifications, FWIA believes that the only aspects of its permit application that must still be prepared for review by the DGAC are its itineraries and schedules, and its rates for scheduled routes. FWIA is working on these tasks in parallel with its work on the technical matters, and understands that a permit for scheduled all-cargo operations can be issued within 10-15 days of approval of its amended operations specifications.

Counsel: Squire Sanders, Marshall Sinick, 202-626-6651, msinick@ssd.com



OST-2006-24671 - US-Mexico All-Cargo Service Proceeding
OST-2005-22151 - Exemption and Designation - US-Mexico All-Cargo

Filed June 11, 2007 | Approved June 18, 2007

Department Action on Application

We note that ABX filed an answer opposing the waiver request, urging the Department to withdraw Florida West's designation and institute a proceeding to select another carrier to provide the subject services. Under the circumstances presented, we found that ABX did not provide any informarion to persuade us that Florida West failed to provide good cause for requesting and obtaining an extension of its startup date in this matter.

By: Esta Rosenberg



OST-2005-22151 - Exemption and Designation - US-Mexico All-Cargo
OST-2006-24671 - US-Mexico All-Cargo Service Proceeding

September 13, 2007

Re: Will Not Seek a Waiver of the Dormancy Condition

I am writing on behalf of Florida West International Airways to advise the Department of Transportation that FWIA will not seek a waiver of the dormancy condition applicable to the U.S.-Mexico routes awarded to FWlA in Orders 2006-11-11 and 2006-12-18.

FWlA regrets that it will not be able to institute service between the United States and Mexico. FWIA had hoped that commercial conditions would improve sufficiently to permit it to begin service. Unfortunately, conditions have not improved tmd FWIA does not believe improvement in the near term
is likely. FWIA will therefore not seek additional waivers of the domlallcy condition, and it does not object to the allocation orthcse route rights to othcr U.S. carricrs.

Counsel: Squrie Sanders, Charles Donley, 202-626-6600, cdonley@ssd.com


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