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Updated: Wednesday, September 20, 2006 8:20 AM


OST-2006-25616 - Elysair - Foreign Air Carrier Permit - US-France

http://www.elysair.com


OST-2006-25617 - Elysair - Exemption - US-France


Elysair SAS d/b/a Elysair

OST-2006-25616 - Foreign Air Carrier Permit - US-France

August 11, 2006

Application for a Foreign Air Carrier Permit - Bookmarked

ELYSAIR is a new French airline. At this time, it has no previous operating history. ELYSAIR is expecting to launch the first ever non-stop, French scheduled, "Business Class only - Low Fares" airline operation, starting with Paris (Orly) to New York (Newark). It will be the only non-stop service currently serving the Orly-Newark market. Using a second aircraft, to be leased next year, ELYSAIR plans to operate between Paris, Orly and another U.S. point. ELYSAIR's second aircraft, too, will be configured as business class only.

ELYSAIR intends to begin operations to the United States on December 15, 2006. Initially, ELYSAIR intends to operate between Paris, Orly and New York, Newark six times weekly. Beginning in March 2007, ELYSAIR also expects to operate between Paris, Orly and another U.S. point four times weekly.

ELYSAIR has leased the following aircraft from GOAL Verwaltungsgesellschaft MBH & Co. Projekt Nr. 11 KG and expects delivery in November 2006:

Aircraft Type Registration Number Country of Registry Status
Boeing B757-200 D-ABNF Germany Leased

ELYSAIR will have exclusive use of this aircraft. At present, this aircraft is German registered. It will be re-registered in France in November 2006. By the first half of 2007, ELYSAIR intends to lease one additional Bowing B757-200 aircraft.

Counsel: Garofalo Goerlich, Gary Garofalo, 202-776-3970, ggarfalo@ggh-airlaw.com


OST-2006-25616 - Foreign Air Carrier Permit - US-France

August 11, 2006

Motion to Withhold Information from Public Disclosure

Counsel: Garofalo Goerlich, Gary Garofalo, 202-776-3970, ggarfalo@ggh-airlaw.com


OST-2006-25616 - Foreign Air Carrier Permit - US-France
OST-2006-25617 - Exemption - US-France


August 28, 2006

Answer of American Airlines

American Airlines, Inc. hereby answers the captioned applications submitted on August 11, 2006 by Elysair SAS d/b/a Elysair proposing service between Newark and Paris Orly. American does not object to these applications, provided that the French aeronautical authorities will permit U.S. carriers, including American, to operate scheduled flights between the U.S. and Paris Orly if they choose to do so. Authority granted to Elysair should be conditioned accordingly.

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


Consolidated Answer of Continental Airlines

Elysair has applied for both permit and exemption authority to provide foreign air transportation between any point or points in the U.S. and any point or points in France and proposed to commence service in December between New YorkINewark and Paris (Orly). Continental has no objection to the award of authority to Elysair so long as the authority is conditioned to prohibit operations between points in the U.S. and Paris (Orly).

Since U.S. airlines have been prohibited from offering services at Paris (Orly), the same considerations should apply to Elysair, and the Department should condition the authority sought by Elysair to preclude operations between Paris (Orly) and the United States. At the very least, no authority should be granted permitting Elysair to serve Paris (Orly) on U.S. flights unless France provides firm assurances that U.S. airlines are now permitted to operate their own flights between the U.S. and Paris (Orly), that economically-viable, competitive slots and facilities will be made available to U.S. carriers at Paris (Orly), and that U.S. airlines will be permitted to codeshare with other airlines on flights serving Paris (Orly).

Even if France were now to change its policy and permit Continental and other U.S. airlines to provide service at Paris (Orly), such a change would be meaningless unless U.S. airlines are assured that they can secure the economically viable slots and facilities necessary to serve Paris (Orly) competitively after having been forced to give up slots and facilities suitable for U.S.-France operations there in the past.

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


OST-2006-25616 - Foreign Air Carrier Permit - US-France
OST-2006-25617 - Exemption - US-France

August 31, 2006

Consolidated Answer of The Port Authority of New York and New Jersey

The Port Authority of New York and New Jersey supports the introduction of new air service that would result from granting the applications of ELYSAIR for a foreign air carrier permit and for an exemption authorizing ELYSAIR to introduce air transportation services under the U.S.-France Air Transport Agreement. The Port Authority specifically endorses ELYSAIR's selection of Newark Liberty International Airport as the carrier's first transatlantic destination. Service by ELYSAIR between Newark and Paris, France will help foster economic, social and cultural ties between the United States and France, and benefit consumers and businesses in the New York/Newark region in particular.

Counsel: Carlene McIntyre, 212-435-3503


OST-2006-25616 - Foreign Air Carrier Permit - US-France
OST-2006-25617 - Exemption - US-France

September 5, 2006

Consolidated Reply of Elysair to American Airlines and Continental Airlines

The attached letter from Mr. Pierre-Hughes Schmit, Le Chef du Bureau des Compagnies aeriennes francaises, dated August 30, 2006, confirms that US carriers operating scheduled international service may serve Paris Orly on a non-discriminatory basis. Under these circumstances, American's and Continental's requests to condition Elysair authority should be denied, and Elysair's applications should be granted without further delay.

Counsel: Garofalo Goerlich, Gary Garofalo, 202-776-3970, ggarofalo@ggh-airlaw.com


OST-2006-25616 - Foreign Air Carrier Permit - US-France
OST-2006-25617 - Exemption - US-France

September 8, 2006

Reply of United Air Lines and Motion for Leave to File

Elysair seeks authority to operate services, inter alia, between Paris Orly Airport and Newark Airport. As both American Airlines and Continental Airlines have pointed out in their answers, the French authorities previously forced both of them to relocate their Paris operations from Orly to Charles de Gaulle airport.

Given this previous action by France, United joins American and Continental in urging any authority awarded to Elysair for service between the U.S. and Paris Orly be conditioned so that such authority to serve Orly will continue only so long as France allows U.S. carriers nondiscriminatory access to that airport. Under this condition, should such access be denied to U.S. carriers, Elysair would be required to terminate its services to Orly.

Elysair has submitted a reply attaching a letter from the French DGAC stating that "currently" nothing prevents U.S. carriers from serving Orly. However, what may be permitted currently is hardly relevant given the previous actions by France to force U.S. carriers to transfer services from Orly to CDG. In these circumstances, the conditions proposed by American and Continental should be imposed on any U.S.-Paris authority issued to Elysair. The proposed conditions will avoid the future development of an airport policy at Orly such as that now prevailing at Milan's Linate Airport where EU-carriers are grandfathered in and U.S. carriers are shut out, notwithstanding the access they once enjoyed to Linate under earlier policies.

Counsel: United and Wilmer Cutler, Jeffrey Manley, 202-663-6670, jeffrey.manley@wilmerhale.com


OST-2006-25616 - Foreign Air Carrier Permit - US-France
OST-2006-25617 - Exemption - US-France

September 19, 2006

Answer of Elysair to Motion of United Air Lines

Answers to Elysair's application for exemption authority in Docket OST-2006-25617 were due August 28, 2006, and answers to Elysair's application for permit authority in Docket OST-2006-25616 were due September 1, 2006.

Accordingly, United's response was not one day late. It was either seven or eleven days late. United has failed to demonstrate good cause for granting even a one-day extension, much less for the more accurate seven-day delay in responding to Elysair's application in Docket OST-2006-25616 or the eleven-day delay in responding to Elysair's application in Docket OST-2006-25617. Accordingly, its motion should be denied.

To the extent the Department nonetheless decides to accept United's "Reply", Elysair requests leave to file the following response in the interest of ensuring a complete record in this proceeding.

United inexplicably asserts that the current situation at Orly "is hardly relevant given the previous actions by France." It apparently believes that Elysair's applications should be evaluated by reference to circumstances that are more than six years old and which no longer apply. The DGAC has provided written assurances that US. carriers currently enjoy equal access to Orly, United would have the Department ignore those assurances as well as the subsequent 2001 Open Skies agreement between the United States and France. It would prefer to resuscitate a years-old dispute by prohibiting Elysair from operating to the United States from Orly (as requested by Continental) and/or by subjecting Elysair's authority to serve Orly to the now demonstrably unnecessary condition that U.S. carriers receive equal treatment (as requested by American before the DGAC explicitly confirmed that US. carriers already receive equal treatment).

The assurances provided by the DGAC demonstrate that the Government of France accepts and acknowledges its obligations pursuant to the 2001 Open Skies agreement. US. obligations pursuant to that agreement require grant of the applications filed by Elysair in Dockets OST-2006-25616 and OST-2006-25617 without unwarranted conditions and without farther delay.

Counsel: Garofalo Goerlich, Gary Garofalo, 202-776-3970, ggarofalo@ggh-airlaw.com


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