Globespan Airways Limited d/b/a FlyGlobespan

OST-2006-23543 - Foreign Air Carrier Permit - UK-US Scheduled Passenger

January 4, 2006

Application for a Foreign Air Carrier Permit - Bookmarked

In 2005, Flyglobespan purchased four B-737-600 aircraft and introduced three new leased B-737-800 aircraft, which has resulted in a significant expansion of routes and frequencies within Europe. Most recently, Flyglobespan has entered into leases for one B-767-300ER for delivery in April 2006 and one B-737-700 for delivery in May 2007. In 2006 Flyglobespan plans to introduce additional European destinations, as well as scheduled service between Glasgow and Orlando (Sanford) to be operated with the B-767-300ER.

Flyglobespan began operating charter flights in 2001 as a brand of The Globespan Group Plc, a major U.K. inclusive tour provider. Flyglobespan's flights operated between Edinburgh, Scotland and Nice, France and were operated by Channel Express (Air Services) Ltd. on behalf of Flyglobespan. In 2002, Flyglobespan began operating daily flights from Glasgow (Prestwick) to various destinations in Spain, France and Italy while continuing to operate out of Edinburgh. In 2003, the airline moved its operations from Prestwick Airport to Glasgow International. Channel Express (Air Services) Ltd. continued operating Flyglobespan's charter flights in 2002 and 2003.

Counsel: Garofalo Goerlich, Aaron Goerlich, 202-776-3970, agoerlich@ggh-airlaw.com

OST-2006-23542 - Exemption - UK-US Scheduled Passenger
OST-2006-23543 - Foreign Air Carrier Permit - US-UK Scheduled Passenger

January 11, 2006

Joint Answer of American Airlines and United Air Lines

Hereby jointly answer in opposition to the captioned applications submitted on January 4, 2006 by Globespan Airways Limited d/b/a Flyglobespan for exemption and permit authority to serve between the United States and the United Kingdom (except London Heathrow and London Gatwick). Action on Flyglobespan's applications should be deferred until the Government of the United Kingdom ends the discriminatory fuel rationing scheme imposed by BAA plc at Heathrow Airport following the Buncefield oil depot fire on December 11, 2005.

American and United do not dispute the temporary need for fuel rationing at Heathrow as a result of the Buncefield fire and the ensuing fuel shortage while pipeline repairs are made and alternative delivery methods are arranged. However, the action taken by BAA is blatantly discriminatory against American and United - the two U.S. carriers serving Heathrow in direct violation of Article 11, paragraph 1 of the United States-United Kingdom Air Transport Agreement (Bermuda 2).

Under BAA's rationing scheme, so‑called "base" carriers at Heathrow, including British Airways and Virgin Atlantic, are provided 82% of their fuel requirements for longhaul services, while so‑called "visiting" carriers at Heathrow, including American and United, are provided only 70% of their fuel requirements for long‑haul services. This disparity has required American and United to tanker in extra fuel to Heathrow on their transatlantic flights from the United States, resulting in additional fuel expenses of approximately $20,000 per day for American and approximately $15,000 per day for United. That is because each gallon of fuel tankered across the Atlantic by aircraft requires approximately one‑third of a gallon in extra fuel burn.

Counsel: United and Wilmer Cutler, Jeffrey Manley, 202-663-6670, jeffrey.manley@wilmerhale.com / American, Carl Nelson, 202-496-5647, carl.nelson@aa.com

OST-2006-23542 - Exemption - UK-US Scheduled Passenger
OST-2006-23543 - Foreign Air Carrier Permit - US-UK Scheduled Passenger

January 23, 2006

Reply of FlyGlobespan to Joint Answer

By joint answer filed January 11, 2006, American Airlines, Inc. and United Air Lines, Inc. requested that the Department defer action on Flyglobespan’s applications, alleging that fuel rationing as recently implemented by BAA plc at Heathrow Airport constitutes a violation of the United Kingdom’s bilateral obligations.

It is clear American and United have seized the opportunity to target Flyglobespan’s applications in an attempt to gain leverage in a Heathrow-specific dispute between private parties. Were the Department to elevate this matter to a bilateral issue, it would set an unwise precedent whereby U.S. carriers would not hesitate to complain to the Department about even the most trivial perceived slights in international business matters. The Department should discourage, not encourage, such misuse of its processes.

The Government of the United Kingdom has not violated the bilateral agreement, and any dispute between American, United and BAA plc is a private matter. Flyglobespan urges that the Department deny American and United’s request to defer action on Flyglobespan’s applications and process the applications as contemplated under the U.S.-U.K. bilateral agreement.

Counsel: Garofalo Goerlich, Aaron Goerlich, 202-776-3970, agoerlich@ggh-airlaw.com

OST-2006-23542 - Exemption - UK-US Scheduled Passenger
OST-2006-23543 - Foreign Air Carrier Permit - US-UK Scheduled Passenger

November 20, 2006

Application for Amended Authority

Flyglobespan seeks an amendment to its existing exemption and pending permit authority to operate scheduled combination service between any point or points in the United States and any point or points in the United Kingdom, excluding London's Heathrow and Gatwick airports, via intermediate points. Beginning Spring 2007, Flyglobespan intends to operate scheduled flights between Liverpool and New York and between Glasgow and Boston. Flyglobespan plans for these flights to operate via Knock, Ireland approximately three to six times per week with the remaining frequencies operating nonstop between Liverpool and New York and between Glasgow and Boston.

Currently there is no service between the U.S. and Ireland West Airport in Knock, and Flyglobespan's service would thus offer an additional Irish destination to the U.S. traveling public on a nonstop basis.

Pursuant to its existing exemption authority, Flyglobespan currently operates daily combination service between Glasgow and Orlando (Sanford), Florida. Flyglobespan intends to continue this service on a year-round basis, with reduced frequencies during the winter season.

Counsel: Garofalo Goerlich, Aaron Goerlich, 202-776-3970, agoerlich@ggh-airlaw.com

OST-2006-23542 - Exemption - UK-US Scheduled Passenger
OST-2006-23543 - Foreign Air Carrier Permit - US-UK Scheduled Passenger

December 12, 2006

Re: Confirmation Letter for Amended Authority

This letter is to confirm that the application for amended authority submitted by Globespan Airways Limited d/b/a in the above-referenced dockets is to obtain DOT authorization to serve the intermediate point Ireland West Airport in Knock, Republic of Ireland, over three city pairs, Glasgow-New York, Glasgow-Boston, and Liverpool-New York. This proposed service is consistent with the designations on Route 1 received by Flyglobespan, which are included in the application.

Counsel: Garofalo Goerlich, Aaron Goerlich, 202-776-3070