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Updated: Wednesday, October 24, 2007 6:55 AM


OST-2005-22331 - American Airlines - New York-San Jose del Cabo

http://www.aa.com/


OST-2000-7448 - Continental Airlines New York/Newark-San Jose del Cabo Authority


American Airlines, Inc.

OST-2005-22331 - Exemption and Certificate of Public Convenience - New York JFK-San Jose del Cabo

August 31, 2005

Application for Exemption and Certificate Authority

Hereby applies under 49 USC 40109 for an exemption and under 49 USC 41101 for a certificate of public convenience and necessity authorizing scheduled foreign air transportation of persons, property, and mail between New York (JFK) and San Jose del Cabo, Mexico.

American proposes to start year-round service on February 4, 2006, or upon securing all required governmental authorizations. American will operate two weekly frequencies during the peak season, and one weekly frequency during the off-peak season, using 188-seat B757W aircraft (22F/166Y).

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. On August 24, 2005, Delta Air Lines, Inc. applied for several U.S.-Mexico routes, including New York (JFK) -San Jose del Cabo (OST-2005-22243). American is this day answering in opposition to Delta's New York (JFK) -San Jose del Cabo application in the cited docket.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com



September 7, 2005

Answer of Continental Airlines

American has applied for New York (JFK)-San Jose del Cabo authority, answered Delta's application for the same authority and requested a carrierselection proceeding on the American and Delta applications.

Continental does not object to American's request for New York (JFK)-San Jose del Cabo authority or its request for a carrier-selection proceeding so long as Continental's authority to provide New York/Newark-San Jose del Cabo service remains effective so Continental can continue to serve the route.

Counsel: Continental and Crowell & Moring, Bruce Keiner, 202-624-2615, rbkeiner@crowell.com



OST-2005-22331 - American Airlines - Exemption and Certificate of Public Convenience - New York-San Jose del Cabo
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 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
OST-2005-22331 - American Airlines - Exemption and Certificate of Public Convenience - New York-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



October 14, 2005

Supplement in Response to Department Notice

American Airlines, Inc. hereby responds to the Notice issued by the Department on October 5, 2005 (U.S.-Mexico) by supplementing our application for New York (JFK) -San Jose del Cabo authority initially submitted in the captioned docket on August 31, 2005.

City-pair market to be served: New York (JFK)-San Jose del Cabo.

Proposed start-up date: February 4, 2006, or within 90 days of securing all required governmental authorizations.

Type of service: Year-round.

Number of weekly flights: Two weekly frequencies during the peak season (December-April), and one weekly frequency during the off-peak season (May-November).

Type and capacity of aircraft: 3757 (22F/166Y).

Aircraft availability: From American's current fleet; American has 143 B757 aircraft in its fleet.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com



OST-2005-22243 - Exemption - Cincinnati-San Jose del Cabo / Atlanta-Merida / New York-Acapulco/Cozumel/Puerto Vallarta/San Jose del Cabo
OST-2005-22331 - Exemption and Certificate of Public Convenience - New York JFK-San Jose del Cabo

Filed August 24/31, 2005 | Supplemented October 17/14, 2005 | Issued December 12, 2005

Notice of Action Taken

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



February 16, 2006

Motion for Temporary Dormancy Waiver

American Airlines, Inc. hereby moves for a temporary dormancy waiver - until December 15, 2006 - to start nonstop service between New York (JFK) and San Jose del Cabo, Mexico. American received exemption authority to serve this route by Notice of Action Taken in this docket on December 12, 2006. Under that award, American is required to inaugurate service within 90 days of its initially proposed start-up date of February 4, 2006.

American applied for the route on August 31, 2005. However, the Department was unable to act until December 12, 2005 as it awaited entry into force of the new U.S.-Mexico agreement on route expansion, which was signed in Mexico City on December 12, 2005.

In these circumstances, our proposed February 4, 2006 start-up date has been deferred until December 15, 2006. We request a temporary dormancy waiver reflecting our revised plans.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com



Filed February 16, 2006 | Approved March 17, 2006

Department Action on Application

We will require the carrier to institute service no later than December 15, 2006.

By: Esta Rosenberg



July 28, 2006

Motion for One-Day Dormancy Waiver

American Airlines, Inc. hereby moves for a one-day dormancy waiver - until December 16, 2006 - to start nonstop service between New York (JFK) and San Jose del Cabo, Mexico. The current dormancy provision for this route - established under assigned authority on March 17, 2006 - requires that service be instituted "no later than December 15, 2006."

For scheduling reasons, American is now planning to inaugurate New York (JFK)-San Jose del Cabo service on December 16, and we thus require a waiver of the dormancy period by one day. We believe that such relief is not adverse to the public interest, and we request that it be granted.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com



July 31, 2006

Answer of Northwest to Motion of American

Northwest Airlines Inc. does not object to one-day dormancy waiver requested by American Airlines. American’s application highlights the burdensome licensing procedures that have resulted from the new date-specific startup condition applied to certain U.S.-Mexico awards. For the reasons stated by Northwest and Delta/ASA in dockets OST-2006-25251 and OST-2006-24984, Northwest urges that the Department, consistent with long-standing policy, provide a 90-day dormancy period running from the applicant’s proposed start date for all U.S.-Mexico awards.

Counsel: Northwest, Alexander Van der Bellen, 202-842-4184, sascha.vanderbellen@nwa.com



Filed July 28, 2006 | Approved September 19, 2006

Department Action on Application

Northwest Airlines filed an answer to American's motion stating that it had no objection to American's request.

By: Esta Rosenberg



October 2, 2007

Application for Renewal of Exemption

American Airlines, Inc., under 49 USC 40109 and 14 CFR Part 377, hereby applies for renewal of its exemption, initially granted by Notice of Action Taken in this docket on December 12, 2005, authorizing scheduled foreign air transportation of persons, property, and mail between New York and San Jose del Cabo, Mexico.

American has operated seasonal service on this route, but we are exiting the market after our last scheduled flight on December 29, 2007. We request renewal through January 5, 2008, to provide a one-week cushion.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com



Filed October 2, 2007 | Issued October 22, 2007

Notice of Action Taken

Renewal for two years of scheduled foreign air transportation of persons, property, and mail between New York, New York, and San Jose del Cabo, Mexico. American states that it has been providing seasonal service in the market, but will cease service on the route after its last scheduled flight on December 29, 2007. American seeks renewal of its authority through January 5, 2008, to provide a one-week cushion for these soon-to-be-discontinued service.

American's existing authority in this market is scheduled to expire December 12, 2007 (See Notice of Action Taken issued December 12, 2005).

By: Paul Gretch


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