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OST-2005-22243 - Delta Air Lines - Cincinnati-San Jose del Cabo / Atlanta-Merida / New York-Acapulco/Cozumel/Puerto Vallarta/San Jose del Cabo
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OST-2005-22243 - Exemption - Cincinnati-San Jose del Cabo / Atlanta-Merida / New York-Acapulco/Cozumel/Puerto Vallarta/San Jose del Cabo August 24, 2005 Delta plans to operate all of these services on a year-round basis using Boeing 737-800 aircraft with 16 premium and 134 coach seats. The proposed start-up dates and initial days of operation are as follows:
Delta proposes to introduce the only nonstop service on each route.' Given the extensive Delta and Delta Connection services offered by Delta at its Atlanta and Cincinnati hubs, and the substantial connecting opportunities and local demand for Mexico service at Delta's major international gateway at JFK, Delta's proposed new services will provide travelers throughout the eastern United States with enhanced online service to Los Cabos, Merida, Cozumel, Puerto Vallarta and Acapulco, which are all popular leisure destinations. Continental Airlines, Inc. provides New York-Los Cabos and New York-Puerto Vallarta service but via Newark, whereas Delta proposes service via JFK. Counsel: Delta and Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
August 25, 2005 Answer of Continental Airlines, Inc. Delta has applied for Cincinnati-San Jose del Cabo, Atlanta-Merida, and New York-Acapulco, Cozumel, Puerto Vallarta and Los Cabos authority and requested expedited action on its application. Continental does not object to Delta's requests for Cincinnati-Los Cabos or Atlanta-Merida authority, and Continental does not object to Delta's requests for New York-Cozumel, Los Cabos, Puerto Vallarta or Acapulco authority so long as Continental's authority to provide New York/Newark- Cozumel, Los Cabos, Puerto Vallarta and Acapulco service remains effective so Continental can continue to serve these routes. Counsel: Crowell & Moring, R. Bruce Keiner, 202-624-2615, rbkeiner@crowell.com
August 31, 2005 Under the U.S.-Mexico Air Transport Agreement, as amended, two U.S. carriers may be designated to serve the New York-San Jose del Cabo route. Service is currently operated by Continental Airlines, Inc. via Newark, leaving one opportunity available. American is this day applying for exemption and certificate authority to operate nonstop service between New York (JFK) and San Jose del Cabo, thus requiring the Department to conduct a carrier-selection proceeding. See Ashbacker Radio Corp. v FCC 326 U.S. 327. In that proceeding, American will demonstrate why its application should be favored over Delta's. American will provide important competition in the New York‑San Jose del Cabo market with service via JFK, offering substantial benefits for the traveling and shipping public. Americans proposal to operate two weekly roundtrips in the peak season is superior to Delta's proposal, and should be granted without delay. Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com
September 1, 2005 We have polled the U.S. carrier representatives served with the above-referenced application, and no carrier has objected to Delta's request for exemption authority, with the exception of American Airlines, Inc., which opposes the application only insofar as Delta is seeking authority to operate nonstop service on the New York-San Jose del Cabo route, because it has filed a competing application. 11 Accordingly, Delta urges that the remainder of the exemption application be granted as soon as possible, and that the New York-San Jose del Cabo authority be deferred pending any necessary carrier selection proceedings. Counsel: Hogan & Hartson, Alexander Van der Bellen, 202-637-8382, sascha.vanderbellen@hhlaw.com
OST-2005-22331 - American Airlines - Exemption and Certificate of Public Convenience - New York-San Jose del Cabo September 22, 2005 Motion of American for Grant of Applications Under New US-Mexico Agreement American Airlines, Inc. hereby moves the Department to grant the captioned applications for New York (JFK) -San Jose del Cabo authority submitted by American in OST-2005-22331 on August 31, 2005 and by Delta Air Lines, Inc, in OST-2005-22243 on August 24, 2005. On September 21, 2005, the United States and Mexico reached agreement on a liberalized aviation accord under which three airlines from each country may fly between any U.S. city and any of 14 Mexican cities, including San Jose del Cabo. See attached DOT news release. Service in the New York-San Jose del Cabo market is currently operated by Continental Airlines, Inc. (via Newark), leaving two opportunities available under the new agreement. In these circumstances, the captioned applications by American and Delta should be granted without further procedures. Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com
OST-2005-22243 - Delta Air Lines - Exemption - Cincinnati-San Jose del Cabo / Atlanta-Merida / New York-Acapulco/Cozumel/Puerto Vallarta/San Jose del Cabo September 26, 2005 Answer of Delta Air Lines in Support of Motion to Grant Applications Delta Air Lines, Inc. hereby answers in support of the Motion submitted by American Airlines, Inc. on September 22, 2005, urging that the Department grant the above-captioned applications of Delta and American for New York-San Jose del Cabo authority. Further, since all of the additional city-pair routes requested by Delta in its pending application are uncontested, those routes should also be granted without delay. As a result of the new liberalizing agreement reached with Mexico, there are now sufficient designations available to authorize both Delta and American to serve the New York-San Jose del Cabo route without the need for carrier selection procedures. Under the new agreement, the Department will be able to dcsinate three U.S. carriers for service from any point in the United States to several specified points in Mexico, including San Jose del Cabo. Counsel: Delta and Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
Filed August 24, 2005 | Issued October 5, 2005 Scheduled foreign air transportation of persons, property, and mail between (1) the terminal point Cincinnati, Ohio, and the terminal point San Jose del Cabo, Mexico; (2) the terminal point Atlanta Georgia, and the terminal point Merida, Mexico; (3) the terminal point New York, New York/ Newark, New Jersey, on the one hand, and each of the following terminal points in Mexico on the other hand: (a) Cozumel, (b) Puerto Vallarta, (c) San Jose del Cabo, and (d) Acapulco; and to integrate this authority with Delta’s existing exemption and certificate authority, to the extent permitted by applicable international agreements. Delta proposes to operate these services on a year-round basis. Delta proposed the following start-up dates: Cincinnati-San Jose del Cabo - December 3, 2005; Atlanta-Merida - February 25, 2006; New York-Cozumel/Puerto Vallarta - March 4, 2006; and New York-Acapulco - March 11, 2006. Continental Airlines filed an answer stating it does not object to Delta’s application so long as its New York/Newark-Cozumel, San Jose del Cabo, Puerto Vallarta, and Acapulco service remains effective. American Airlines opposes Delta’s request for route authority for the New York-San Jose del Cabo market. American filed a competing application to serve the New York-San Jose del Cabo market in Docket OST-2005-22331. Because only one designation opportunity is available, American states that a carrier selection proceeding is required for this service. By letter dated September 1, 2005, counsel for Delta requested that we proceed with Delta’s application, but defer decision on the New York-San Jose del Cabo portion pending a carrier selection proceeding. A recently negotiated amendment to the Agreement that would expand the number of U.S. carrier scheduled service designations in certain city-pair markets, including the New York-San Jose del Cabo market, is not yet effective between the Governments of the United States and Mexico. We note that American submitted a motion in this docket and Docket OST-2005-22331, requesting that we grant the applications of Delta and American with respect to New York-San Jose del Cabo route authority in light of the increase in designation opportunities for this market under the amended Agreement. Delta answered in support of American’s motion and urges us to grant the two applications. We are taking no action on American’s motion or Delta’s response at this time By: Paul Gretch
OST-2005-21284 - Exemption - Orlando-Cancun October 17, 2005 Supplement to Applications for Exemption and Amended Certificate Authority Pursuant to the Department's Notice served October 5, 2005, Delta Air Lines, Inc. hereby supplements its applications for U.S.-Mexico exemption authority pending in the above-captioned dockets by confirming the proposed start-up dates, types of service (seasonal or year-round), number of weekly flights, and types, capacity and availability of aircraft, as follows: 1. Atlanta, GA -Acapulco, Mexico (Docket OST-2005-22620). On or about March 11, 2006, Delta proposes to introduce two weekly frequencies (Saturdays/Sundays) on this route using Boeing 737-800 aircraft with 16 premium and 134 coach seats, on a year-round basis. No other U.S. carriers currently provide Atlanta-Acapulco service and, provided that no other applications are submitted, the Department need not await the signing of the new U.S.-Mexico agreement in order to grant Delta's request for exemption authority with respect to this route. 2. Atlanta, GA - Ixtapa/Zihuatanejo, Mexico (Docket OST-2005-22620). On or about March 18, 2006, Delta proposes to introduce two weekly frequencies (Saturdays/Sundays) on this route using Boeing 737-800 aircraft with 16 premium and 134 coach seats, on a year-round basis. No other U.S. carriers currently provide Atlanta-Ixtapa/Zihuatanejo service and, provided that no other applications are submitted, the Department need not await the signing of the new U.S.-Mexico agreement in order to grant Delta's request for exemption authority with respect to this route. 3. Boston, MA - Cancun, Mexico (Docket OST-2005-22620). On or about February 4, 2006, Delta proposes to introduce one weekly roundtrip flight (Saturdays) on this route using Boeing 737-800 aircraft with 16 premium and 134 coach seats, on a year-round basis. 4. Los Angeles, CA - Cancun, Mexico (Docket OST-2005-22415). On or about December 1, 2005, Delta proposes to introduce daily yearround service on this route using Boeing 737-800 aircraft with 16 premium and 134 coach seats. 5. Los Angeles, CA - Ixtapa/Zihuatanejo, Mexico (Docket OST-2005-22620). On or about March 18, 2006, Delta proposes to introduce one weekly roundtrip flight (Saturdays) on this route using Boeing 737800 aircraft with 16 premium and 134 coach seats, on a year-round basis. 6. Los Angeles, CA - Puerto Vallarta, Mexico (Docket OST-2005-22620). On or about February 4, 2006, Delta proposes to introduce one weekly roundtrip flight (Saturdays) on this route using Boeing 737800 aircraft with 16 premium and 134 coach seats, on a year-round basis. 7. Los Angeles, CA - San Jose del Cabo, Mexico (Docket OST-2005-22620). On or about February 4, 2006, Delta proposes to introduce one weekly roundtrip flight (Saturdays) on this route using Boeing 737-800 aircraft with 16 premium and 134 coach seats, on a yearround basis. 8. New York, NY/Newark, NJ- Cancun, Mexico (Docket OST-2005-22551). On or about December 17, 2005, Delta proposes to introduce daily year-round service on this route using Boeing 757-200 aircraft with 24 premium and 159 coach seats. 9. New York, NY/Newark, NJ - San Jose del Cabo, Mexico (Docket OST-2005-22243). On or about March 4, 2006, Delta proposes to introduce one weekly roundtrip flight (Saturdays) on this route using Boeing 737-800 aircraft with 16 premium and 134 coach seats, on a year-round basis. 10. Orlando, FL - Cancun, Mexico (Docket OST -2005-21284). As early as November 1, 2005, but no later than 90 days after the Department approves exemption authority to serve this route, Delta proposes to introduce daily year-round service on the Orlando-Cancun route using Boeing 737-800 aircraft with 16 premium and 134 coach seats. 11. Washington, D.C. - Cancun, Mexico (Docket OST-2005-22620). On or about February 4, 2006, Delta proposes to introduce one weekly roundtrip flight (Saturdays) on this route using Boeing 737-800 aircraft with 16 premium and 134 coach seats, on a year-round basis. Delta proposes to provide service via Washington Dulles International Airport. Delta proposes to operate all of the foregoing services using its existing fleet resources. Delta has 71 Boeing 737-800 aircraft and 121 Boeing 757-200 aircraft in its fleet, in addition to a number of other aircraft types, and has additional aircraft on order. Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
OST-2001-10457 - Exemption - Cincinnati-Cancun November 22, 2005 Motion for a Temporary Dormancy Waiver Delta Air Lines, Inc. hereby moves for a temporary dormancy waiver with respect to the following U.S.-Cancun/Cozumel city-pairs:
Due to the devastation caused by Hurricane Wilma in Cancun and Cozumel, Delta has been forced to revise its service plans for the identified routes. Delta currently anticipates that it will resume or commence these services on or about June 1, 2006. Accordingly, Delta requests a temporary waiver so that the 90‑day dormancy period for each route will commence on June 1. Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
OST-2005-22243 - Exemption - Cincinnati-San Jose del Cabo / Atlanta-Merida / New York-Acapulco/Cozumel/Puerto Vallarta/San Jose del Cabo Filed August 24/31, 2005 | Supplemented October 17/14, 2005 | Issued December 12, 2005 Scheduled foreign air transportation of persons, property, and mail between New York, New York/Newark, New Jersey, on the one hand, and San Jose del Cabo, Mexico, on the other hand, and to integrate this authority with Delta’s existing certificate and exemption authority. Delta states that it will provide year-round service in the market beginning March 4, 2006. By Notice of Action Taken dated October 5, 2005, in Docket OST-2005-22243, we granted Delta’s requests for exemption authority to serve the Cincinnati-San Jose del Cabo, Atlanta-Merida, and New York/Newark-Cozumel, New York/Newark-Puerto Vallarta, and New York/Newark-Acapulco markets. We deferred action on Delta’s request to serve the New York/Newark-San Jose del Cabo market. This Notice of Action Taken addresses the still-pending portion of the applicant’s request. Delta also requests that its exemption authority for New York/Newark-San Jose del Cabo be awarded under the Department’s streamlined licensing procedures. To the extent that Delta is seeking certificate authority for the subject market, we will handle that request subsequently. Scheduled foreign air transportation of persons, property, and mail between New York (JFK), New York, and San Jose del Cabo, Mexico. American states that it will provide year-round service in the market beginning February 4, 2006. Although American did not specify, we will consider American’s request for exemption authority to be for a two-year term, the duration we normally award for authorizations of this type. American also requests that its exemption authority for New York-San Jose del Cabo be awarded under the Department’s streamlined licensing procedures. To the extent that American is seeking certificate authority for the subject market, we will handle that request subsequently. Granted: exemption authority to Delta to serve the New York/Newark-San Jose del Cabo market, including corresponding route integration authority. Granted: exemption authority to American to serve the New York (JFK)-San Jose del Cabo market. Deferred: on Delta’s request for certificate authority to serve the New York/Newark-San Jose del Cabo market and American’s request for certificate authority to serve the New York (JFK)-San Jose del Cabo market. At the time the captioned applications were filed, the operative U.S.-Mexico aviation agreement provided that the United States could designate only two U.S. carriers to provide scheduled combination services in the New York/Newark-San Jose del Cabo market. Continental Airlines, Inc., was already authorized and designated to serve the market. Thus, only one designation opportunity was available for the New York/Newark-San Jose del Cabo service. Continental filed answers to both applications stating that, among other things, it did not oppose either application for New York/Newark-San Jose del Cabo authority so long as Continental’s authority to serve the market remained effective and Continental could continue to serve the route. Additional responsive pleadings were filed regarding comparative selection issues. On September 21, 2005, the United States and Mexico reached an ad referendum agreement on certain amendments to the U.S.-Mexico aviation agreement, providing for the expansion of services between the two countries for both combination and all-cargo air transportation services, including combination services in the New York/Newark-San Jose del Cabo market. We are now in a position to award authority pursuant to these amendments. Two route opportunities are now available for New York/Newark-San Jose del Cabo services. Because only two applicants (Delta, in Docket OST-2005-22331, and American, in Docket OST-2005-22331) have applied for the authority in the New York/Newark-San Jose del Cabo market, we will now grant the applicants’ requests for exemption authority here. In order to grant promptly Delta’s and American’s requests for new authority under the expanded U.S.-Mexico aviation agreement, we have acted on the exemption requests, only, by this Notice. We will handle, subsequently, American’s request (in Docket OST-2005-22331), for New York (JFK)-San Jose del Cabo certificate authority, and Delta’s request (in Docket OST-2005-22243), for New York/Newark-San Jose del Cabo certificate authority. By: Paul Gretch
OST-2001-10457 - Exemption - Cincinnati-Cancun Filed November 22, 2005 | Approved January 11, 2006 Motion for a Temporary Dormancy Waiver Delta Air Lines, Inc. hereby moves for a temporary dormancy waiver with respect to the following U.S.-Cancun/Cozumel city-pairs:
Due to the devastation caused by Hurricane Wilma in Cancun and Cozumel, Delta has been forced to revise its service plans for the identified routes. Delta currently anticipates that it will resume or commence these services on or about June 1, 2006. Accordingly, Delta requests a temporary waiver so that the 90-day dormancy period for each route will commence on June 1. By: Esta Rosenberg
March 3, 2006 Motion for Extension of Dormancy Waiver Delta hereby moves for an extension of the temporary dormancy waiver applicable to the New York/Newark-Cozumel route. On January 11, 2006, the Department granted Delta a dormancy waiver for certain U.S.-Mexico routes due to the impact of Hurricane Wilma, including, inter alia, New York/Newark-Cozumel. Delta anticipates that it will restore most of its Cancun services in June, 2006. However, Cozumel is a smaller market and many of its hotels are still under construction. In light of the market conditions and ongoing recovery efforts, Delta has decided to defer implementation of its planned JFK-Cozumel service until December 16, 2006. Accordingly, Delta requests an extension of its dormancy waiver to run from that date. Counsel: Hogan & Hartson, 202-637-4999, recohn@hhlaw.com
Filed March 3, 2006 | Issued March 29, 2006 Department Action on Application We will require the carrier to institute service no later than December 16, 2006. By: Esta Rosenberg
OST-2005-22243 - Exemption - New York/Newark-Cozumel October 17, 2006 Notice of Discontinuation and Transition Pursuant to the dormancy notice condition attached to its exemption authority in Notice of Action Taken, October 5, 2005, Docket 2005-22243, Delta Air Lines, Inc. hereby informs the Department that it will be discontinuing its JFK-Cozumel service as of February 24, 2007. In addition, Delta plans to transition its Atlanta-Ixtapa/Zihuatanejo service to a "winter season" service, in lieu of year-round. Counsel: Hogan & Hartson, Patrick Rizzi, 202-637-5600, prizzi@hhlaw.com
December 4, 2006 Motion of Delta Air Lines for a One-Week Extension of Dormancy Waiver Delta hereby moves for a nominal, one-week extension, through December 23, 2006, of the temporary dormancy waiver applicable to Delta's New York/Newark- Cozumel exemption authority. On March 29, 2006, the Department granted Delta a dormancy waiver for this route through December 16, 2006, requiring Delta to institute service no later than that date. Although Delta had intended to institute Saturday-only service on December 16, Delta has since adjusted its December schedules, and now intends to commence New York-Cozumel service one week later, on December 23. Delta plans to operate only a limited number of flights on this route during the peak winter travel period, through February 23, 2007. Pursuant to its letter to Paul Gretch dated October 17, 2006, filed in Docket OST-2005-22243, Delta advised the Department it intends to relinquish its New York-Cozumel designation effective February 24, 2007. That intention has not changed. Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999
December 7, 2006 We have polled the U.S. carrier representatives served with the above-referenced motion, and no carrier has objected to Delta's request for a one-week extension of its dormancy waiver. Delta requests that the extension be granted as soon as possible. Counsel: Hogan & Hartson, Jonathan Echmalian, 202-637-5439, jechmalian@hhlaw.com
Filed December 4, 2006 | Approved December 8, 2006 Department Action on Application We will require the carrier to institute service no later than December 23, 2006. We acted on this application without awaiting expirations of the 7-day answer period with the consent of all parties served with the application. By: Esta Rosenberg
OST-2000-6816 - Exemption - Mexico City-Chicago April 5, 2007 Application for Renewal of Exemptions Delta Air Lines, Inc. hereby applies under 49 U.S.C. § 40109 for renewal of exemptions authorizing Delta to continue to provide scheduled foreign air transportation of persons, property, and mail on the U.S.-Mexico routes identified in Exhibit A. This renewal application encompasses multiple docketed exemptions that Delta relies upon to provide nonstop U.S. Mexico services with its own aircraft or pursuant to codeshare arrangements with Aerovias de Mexico, S.A. de C.V. or Delta Connection carriers. Delta requests that these exemptions be renewed for a period of at least two years, with a common expiration date, or until 90 days after the Department's final determination on Delta's application for amended certificate authority as it pertains to each of the routes identified herein, filed on November 30, 2004, and supplemented on October 17, 2005, in Docket OST-1999-6275, whichever occurs earlier. The establishment of a common renewal date will promote administrative efficiency and reduce the burden on Delta and the Department in maintaining these multiple non-controversial U.S.-Mexico exemption authorities. Delta does not seek renewal of route integration authority included with these exemptions because such authority is now covered by its blanket route integration certificate issued by Order 2006-1-1. In certain instances, Delta holds two exemptions for a single U.S.-Mexico route: one for codesharing service and one for service with its own aircraft. Although it is Delta's understanding that a single "own aircraft" exemption would be sufficient to cover both types of service (just as a city-pair designation authorizes both own-aircraft service and codeshare service), Delta is seeking to renew potentially redundant exemption authority out of an abundance of caution. Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
OST-2000-6816 - Exemption - Mexico City-Chicago Filed April 5, 2007 | Issued July 10, 2007
By: Paul Gretch
OST-2004-19231 - Exemption - Atlanta-Cozumel August 28, 2007 Notice of Seasonal Service and Dormancy Delta hereby notifies the Department that (i) the service operated by Delta between Atlanta and Cozumel will be on a seasonal, rather than a year-round, basis going forward, and (ii) Delta's service between Cincinnati and San Jose del Cabo has been discontinued and may be considered dormant effective immediately. Counsel: Hogan & Hartson, Patrick Rizzi, 202-637-5659, prizzi@hhlaw.com
OST-2004-19231 - Exemption - Atlanta-Cozumel Filed August 28, 2007 | Approved October 2, 2007 Department Action on Application Includes Delta's request to convert its Atlanta-Cozumel service to seasonal. By: Paul Gretch
OST-2005-22243 - Exemption - Cincinnati-San Jose del Cabo June 30, 2008 Motion for Approval of Conversion to Seasonal US-Mexico Services Unfortunately, the market conditions for air transportation have radically deteriorated in recent months, in particular due to the unprecedented increase in jet fuel costs during that period. The fuel cost increases have had disastrous financial consequences for U.S. carriers, forcing all of them to reevaluate and restructure their route networks. Several carriers have already been forced into bankruptcy and/or liquidation in recent months. Permitting Delta the flexibility to adjust its service offerings in these markets so as to more accurately match capacity to demand on a seasonal basis will allow it to maintain transborder services in these markets, which enhances competition and expands price and service options for U.S.-Mexico travelers and shippers. Puerto Vallarta, Mazatlan, San Jose del Cabo, Acapulco, and Cancun are all triple-designation markets under the U.S.-Mexico Air Transport Services Agreement, as amended. There are at least one and in several cases two unallocated designations for U.S. carrier-operated service available in each of these markets except Los Angeles - La Paz. Up to ten carriers from each country may be designated to serve each city pair market on a codeshare basis. As such, there are abundant unused service opportunities for other carriers on each of these routes. La Paz is not a triple‑designation market under the U.S.‑Mexico Air Transport Services Agreement as amended, and competitive service is currently operated in this market by Alaska Airlines. Counsel: Delta, Scott McClain, 404-773-6514 |
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