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Updated: Friday, May 26, 2006 11:06 AM


OST-2005-22751 - Kitty Hawk Aircargo - US-Mexico Scheduled Cargo

http://www.kha.com/


Kitty Hawk Aircargo, Inc.

OST-2005-22751 - Exemption - US-Mexico Scheduled Cargo Service

October 17, 2005

Application for an Exemption

Kitty Hawk proposes to operate all-cargo flights between its Fort Wayne, Indiana hub, on the one hand, and Mexico Pity (Benito Juarez International Airport) Guadalajara and Monterrey, Mexico, on the other hand. Kitty hawk plans to operate these services five times per week on a year-round basis.

Kitty hawk intends to commence service to Mexico City, Coadelajara and Honterrey on or about February 1, 2006 (or within 90 days alter Kitty Hawk receives authoriry from the Department and all other required approvals, whichever is later) with B-727 aircraft. Kitty Hawk's B727 aircraft have a payload capacity of approximately 50,000 pounds. Kitty hawk already possesses the B-727 aircraft to be used for its proposed Mexico services and will not have to reduce or terminate any of its other services to support its new flights operating to Mexico.

Kitty Hawk requests this authority be effective for a minimum two-year period.

Counsel: Silverberg Goldman, Robert Silverberg, 202-944-3300


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
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


OST-2005-22751 - US-Mexico Scheduled Cargo Service

April 5, 2006

Application for Waiver of Dormancy Condition

Singed by the Governments of the United States and Mexico on December 12, 2005. Under the amended bilateral, restrictions remain on scheduled all-cargo service to Mexico City and Guadalajara that prevented the Department from approving Kitty Hawk's request to serve the Ft. Wayne-Mexico City market as well as certain portions of the requests of Florida West International Airways, Inc. and Centurion Air Cargo, Inc. to serve Mexico City and Guadalajara.

Authority to serve Mexico City is an important component of the service Kitty Hawk intends to provide between its Ft. Wayne hub and Mexico. Without grant of this authority, Kitty Hawk will be required to reevaluate whether it could profitably serve Guadalajara and Monterrey absent the authority to serve Mexico City. Thus, Kitty Hawk is not currently in a position to initiate service in the Ft. Wayne and Guadalajara /Monterrey markets without knowing whether or not it will also be granted authority to serve Mexico City.

Counsel: Silverberg Goldman, Robert Silverberg


OST-2005-22751 - US-Mexico Scheduled Cargo Service

Filed April 5, 2006 | Approved May 1, 2006

Department Action on Application

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

By: Esta Rosenberg


OST-2005-22751 - Kitty Hawk - Exemption - US-Mexico Scheduled Cargo Service
OST-2006-24671 - 2006 US-Mexico All-Cargo Service Proceeding

May 23, 2006

Motion of Kitty Hawk Aircargo for Leave to Withdraw Application

While Kitty Hawk applied for the Mexico City authority last October believing that scheduled service to Mexico would be a significant revenue opportunity for the carrier, the passage of time since the initial application filing and subsequent events have caused Kitty Hawk to now determine that it must focus its efforts away from Mexico City and toward the completion of a recent transaction acquiring a substantial less-than-truckload ground network serving a seven state area. This transaction,  just announced on May 10, 2006, has required management to devote a significant amount of time and resources to integrate the trucking operation into the existing Kitty Hawk ground network. Given the limitations on management time and the capital resources of the company, it is with regret that Kitty Hawk seeks leave to the extent necessary to withdraw its application for exemption authority to serve Mexico City now consolidated in Docket OST-2006-24671.

The Department has granted Kitty Hawk exemption authority to service the Ft. Wayne-Guadalajara and Ft. Wayne-Monterrey markets (OST-2005-22751), including corresponding route integration authority. On May 1, 2006, the Department granted the application of Kitty Hawk for waiver of the dormancy condition imposed on this exemption authority until further notice. Kitty Hawk stated in its dormancy waiver application that its service to Guadalajara and Monterrey is liked with it providing service to Mexico City. Kitty Hawk is now in the process of evaluating its use for the Ft. Wayne-Guadalajara/Monterrey exemption authority without also providing service to Mexico City and will advise the Department as soon as it makes a determination.

Counsel: Silverberg Goldman, Robert Silverberg, 202-944-3300


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