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OST-2007-28361 - US-China Combination and All-Cargo Frequency Allocation Proceeding
US-China Memorandum of Consultations Signed May 22, 2007
OST-2007-27019 - Delta Air Lines' Certificate Application for Atlanta-Shanghai
Prior US-China ProceedingsOST-2007-28567 - 2007/2008/2009 US-China Air Services and Combination Frequency Allocation Proceeding
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US-China Combination and All-Cargo Frequency Allocation Proceeding Served May 25, 2007 On May 23, 2007, the United States and China signed a memorandum of consultation that anticipates a new agreement to liberalize aviation relations. The agreement provides for extensive increases in service opportunities for U.S. carriers for both combination and all‑cargo services between the two countries. The first of these new U.S. carrier rights become available August 1, 2007. All other rights become available March 25 of the applicable year.
By this Notice the Department is soliciting the views of interested persons on procedural options for awarding these U.S. carrier rights. Given our desire to move quickly on formulating appropriate procedures in light of the new rights available, we are seeking only a single round of comments, to be completed by June 1. Accordingly, to ensure their full consideration, comments should be submitted to the Department by close of business on June 1, 2007. Comments should be addressed to the Office of International Aviation, U.S. Department of Transportation, 400 7th Street, S.W. Room 6412, Washington, D.C. 20590, and submitted to the Department by facsimile to: (202) 366-3694, or electronic mail to the following email address: Catherine.Brown@dot.gov. In light of the currently-underway transition of the Department's Docket Section to the new DOT headquarters building, we strongly urge all persons submitting comments to do so by electronic mail By: Paul Gretch
June 8, 2007 Re: Comments of James Oberstar I would like to congratulate the Department on a job well done in terms of securing a major expansion of U.S. carrier rights to China. The scarce supply of China flights has imposed significant hardship on the traveling public, on carriers that would like to offer service, and has pitted airports and communities against one another in bitterly contested route case proceedings. I note that the Department is seeking views on how best to allocate the new rights, and would strongly urge that the Department consider in a single case at least the rights that become available between now and 2009. It is important that the Department put at issue enough opportunities to provide carriers and communities with a reasonable chance of sharing in the good news of the new China agreement. With just a single route available this year and in 2008, a case that fails to include the four flights available in 2009 creates unnecessary scarcity and inevitable disappointment. The Department often conducts multi-year consolidated cases, such as the recent 2005/2006 China case. Deciding the route awards through 2009 provides carriers with beneficial advance notice and avoids the cost and inefficiency of conducting one route case on the heels of another. I also hope the Department will give serious consideration to streamlining its route case procedures. The Department has used expedited procedures to award routes to countries such as Argentina and Brazil, and should look to do the same for China.
June 1, 2007 ABX urges the Department to limit its initial focus on the award of the additional designation that is available as of August 1, 2007 and the frequency allocation for 2008. Obviously the award of the new 2007 designation, which can be either for all-cargo or combination services, presents a threshold issue that must be considered by the DOT. This is somewhat complicated by the fact that at the current time there are only two unused all-cargo frequencies available for allocation. Therefore, it appears to be a practical necessity to consider 2007 and 2008 opportunities in a single proceeding. Beyond the issues raised by the 2007 and 2008 opportunities, ABX would urge the DOT to withhold establishing at this time any proceeding to address the 2009 route opportunities. Were the 2009 (and 2010) opportunities to be considered now (either in the ABX recommended 2007/2008 proceeding, or in a separate proceeding), the record could grow stale well before the 2009 opportunities can first be exercised in March of that year. Rather, the year 2009 opportunities can and should be considered at the earliest some time in mid-2008, and only after the 2007/2008 issues are addressed and finally decided by the DOT. Consideration now of these more distant opportunities in the ABX recommended 2007/2008 proceeding would overly complicate the 2007/2008 proceeding and will not result in a more efficient adjudication process. In fact, just the opposite will occur, with the need to greatly expand the issues that must be addressed in the 2007/2008 proceeding as outlined above. Therefore, ABX urges that the instituting of any proceeding looking beyond 2008 be deferred until the 2007/2008 opportunities are first considered and decided. With respect to the DOT'S consideration of the 2009 opportunities, ABX would suggest that like the need to link 2007 and 2008, as suggested above, 2009 and 2010 are logically connected. In 2009, the DOT may select a new all-cargo and a new combination carrier and these two services do not need to compete for the same designation. Assuming all other available frequencies will have been allocated to incumbent carriers at the time of this subsequent route proceeding, the DOT will have 28 combination and 15 all-cargo frequencies to allocate in 2009, first to the newly designated carriers, and then to any incumbent carriers, to the extent they are competing for these designations. The year 2010 opportunities present a somewhat similar scenario, except that the new 2010 designation may go to either an all-cargo or combination carrier. In 2010 the DOT can also allocate an additional 21 combination and 15 all-cargo frequencies. In the interest of Departmental efficiency considering all of these 2009 and 2010 opportunities in a single proceeding is advisable, since the newly designated 2009 and 2010 carriers may not otherwise seek to make use of all of the newly available frequencies, thereby making it necessary to allow for incumbent carriers to compete for such frequencies-those available in 2009 and 2010. However, as suggested above, the allocation of frequencies to the newly designated carriers must be given first priority since a new designation is worthless without a sufficient number of frequencies consistent with each applicant's service proposal. Once, but only once, the needs of the newly designated carriers are considered, should the DOT consider awarding frequencies to any incumbent carriers that may apply for such rights, assuming any frequencies remain to be allocated. Counsel: ABX, Joseph Payne
June 1, 2007 Comments of American Airlines on Procedural Options American's comments address the opportunities that become effective in 2007, 2008, and 2009, since it is clearly premature to consider the opportunities for 2010 and beyond. In our view:
Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com
June 1, 2007 Cargo 360 offers two comments on procedures for award of the new U.S.-China rights. First, in the interest of efficiency for all concerned, DOT should adopt a phased approach; i.e., there should be a discrete selection proceeding corresponding to each of the annual effective dates listed in the Department's Notice. Second, Cargo 360 urges that the Department, in its order setting procedures, affirm that applicants electing to participate only in the latter stages of the multi-year process will not be prejudiced by having not participated in earlier stages. Stated differently, the Department should affirm that timely-filed applications will be analyzed de novo at each stage of the proceedings, and that no applicant will be accorded an advantage by virtue of having submitted more than one application in the overall course of the proceedings. Counsel: Garofalo Goerlich, 202-776-3970, agoerlich@ggh-airlaw.com
June 1, 2007 Comments of Continental Airlines Continental applauds the Department's success in achieving a dramatic breakthrough that will more than double the number of daily U.S.-flag flights between the U.S. and China and urges the Department to institute a single expedited proceeding to select among applicants for authority to use new opportunities available to combination carriers in the twenty one months between now and March 25, 2009, so the benefits flowing from the new agreement can be maximized. Instituting an expedited proceeding to consider allocation of all of the 57 frequencies and three designations available within the next two years2 will enable the Department to establish a broad pattern of new services between the U.S. and China's primary cities to fill the most significant service gaps, to expand competition among U.S. airlines and between U.S. and foreign airlines and to begin meeting the pent-up demand for competitive U.S.-China service in critical markets. Once these initial opportunities have been awarded, the Department should institute proceedings to consider opportunities available in 2010 and beyond to meet the needs of additional cities for U.S.-China service. Of vital importance, reaching a decision promptly on all of the opportunities available during the next two years will enable airlines and cities to prepare for, plan and market new U.S.-flag services to be offered in 2008 and 2009 well in advance of the institution of the new flights and enable the carriers to maximize the benefits from their new services and compete effectively from the very first day operating their new flights. With March 25, 2009 less than two years away already, the Department should immediately institute a proceeding to consider allocating the opportunities available between now and then. In light of the "longstanding Department policy to maximize the timely use of bargained-for rights in limited entry markets,"3 the Department should award a broad spectrum of available rights as promptly as possible. As the Department said in a recent China proceeding, "Given the phase-in schedule of the agreement, we feel that the traveling and shipping public, as well as the applicants, would be best served by our considering now, at the same time and in a single proceeding, the opportunities that will become available in the next two years."4 The traveling and shipping public as well as the applicants will be equally well-served by instituting a proceeding to consider allocation of all of the U.S.-China frequencies available during the next twenty-one months. Counsel: Continental and Crowell & Moring, Bruce Keiner, 202-624-2615
May 7, 2007 Comments of Dallas/Ft. Worth International Airport The Dallas/Fort Worth International Airport takes this opportunity to provide its comments on the draft U.S. Government counter-proposal in connection with the US.-China negotiations. We had previously commented on U.S.-China negotiations in our letter to you of April 19, 2007. As stated in our April 19 letter DFW Airport supports an agreement that provides for a substantial liberalization of the U.S.-China bilateral relationship even if it falls short of Open Skies. In our view a good agreement - one that provides new opportunities for DFW-China nonstop service - is better than no agreement at all. Specifically, DFW Airport would like to reiterate, as stated in our April 19 letter, that we support a more liberalized U.S.-China agreement containing many of the elements that are in the draft US Government counter-proposal. Realistically, under the U.S. counter-proposal, there would be opportunities for DFW Airport to secure nonstop U.S.-flag DFW-China service effective as soon as summer 2009. American Airlines could be awarded seven frequencies to begin daily DFW-Beijing service as proposed, once it reaches a new agreement with its pilots. A Chinese carrier such as China Eastern or Shanghai Airlines could be awarded authority by Chinese Authorities to begin DFW service in 2009 or sooner. In addition, new Chinese cargo carriers could be designated to begin scheduled cargo flights from Chinese cities to DFW, on top of the recently-approved Shanghai Airlines’ service that will begin later this year. Counsel: Silverberg Goldman, Michael Goldman
June 1, 2007 Comments of Dallas/Fort Worth International Airport DFW Airport urges the Department to establish the following procedures to award new U.S.‑China rights:
The airlines and other parties should not be pressured to decide those issues now in order to participate in a case in the second half of 2007 that will allocate rights that cannot be used until March 2009. The proceeding itself will be complicated due not only to the fact that 43 combination and all‑cargo frequencies will be at issue, but also because each of the many combination carrier applicants will be applying for multiple routes and submitting multiple service proposals as four different route awards (28 frequencies) are at stake. Additionally, of particular concern to DFW Airport, is that American Airlines will need this additional time to resolve collective bargaining issues with its pilots' union so that there will be no It should be possible to complete this expedited case in 90 days.
Counsel: Silverberg Goldman, Michael Goldman, mgoldman@sgbdc.com
June 1, 2007 The right to designate a new entrant for combination carrier service is the most valuable opportunity available in 2007 under the MOC. While the 2007 designation could be used to add another cargo carrier for U.S.-China service, that result would squander this valuable opportunity. There remain unallocated cargo frequencies for U.S.-China service today, and, under the new MOC, cargo carriers will soon have unrestricted 3rd and 4th freedom designations. If the 2007 designation is used for another all-cargo carrier, the designation will become moot in just a few years when the unlimited designations for cargo service become available. In contrast, the designation of new carriers to provide combination services will continue to be tightly controlled for the foreseeable future. Delta has already filed an application in Docket OST-2007-27019 for the new designation and seven frequencies to operate daily nonstop service between Atlanta, Georgia, and Shanghai, China, connecting the commercial and financial center of the world's largest country with Delta's expansive route hub at Hartsfleld-Jackson Atlanta International Airport, the largest hub in the world. Delta looks forward to demonstrating to the Department that the selection of its Atlanta-Shanghai application will maximize the public and competitive benefits. Counsel: Delta and Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
June 1, 2007 Comments of Evergreen International Evergreen urges the Department to first conduct a separate proceeding to allocate the one additional designation that becomes available on August 1, 2007 for combination or all-cargo services between the United States and China and to allocate the fifteen all-cargo frequencies that are available as of March 25, 2008. In conducting the fist proceeding to allocate the 2007 and 2008 service opportunities, the Department will have to address the initial question of whether the one additional airline to be designated in 2007 should be awarded to a combination carrier or an all-cargo carrier. The Department will then need to select the combination or all-cargo carrier to be awarded the one additional designation. The Department should also allocate in the first proceeding the fifteen additional all-cargo frequencies that are available in 2008. Finally, Evergreen understands that there are currently two unused all-cargo frequencies available, the allocation of which Evergreen suggests should be made part of this first proceeding. Evergreen respectfully submits that the Department should defer establishing a proceeding to allocate the service opportunities that become available in 2009 and later until DOT has completed the first proceeding to allocate the 2007 and 2008 service opportunities. Evergreen believes that it will be difficult for the Department to determine at this time how best to allocate the service opportunities that do not become available for another two years, at the earliest. Evergreen is of the opinion that consideration of the 2009 through 2012 service opportunities at this time will likely work to delay the allocation of the 2007 and 2008 service opportunities by over complicating the process with issues related to these more distant opportunities. Evergreen believes that the proceeding to allocate the 200712008 designations and frequencies alone will be difficult enough since it will require DOT to decide the threshold issue of whether the one additional designation that becomes available in 2007 should be used for the provision of combination or all-cargo services. Evergreen further suggests that it would be most efficient if the Department were to conduct one subsequent proceeding to allocate the service opportunities that become available in 2009 and 2010. In 2009, the United States may designate one new air carrier to operate combination services and one new cargo air carrier to operate all-cargo services. In this year, 28 combination and 15 all-cargo frequencies are available for allocation. In the next year (2010), DOT may designate one new air carrier to provide either combination or all-cargo service. 21 combination and 15 all-cargo frequencies become available for allocation in 2010. Evergreen believes the Department should conduct a single subsequent proceeding to select the three additional carriers it may designate in 200912010 and to give the newly designated carriers first priority in the award of the frequencies that become available in those years. Only after the newly designated carriers have been awarded a sufficient number of frequencies should any remaining frequencies be allocated to incumbent carriers. By: Evergreen, John Palo, 503-472-0011
June 1, 2007 In planning for the August 2007 frequencies, the Department should place a high priority on the need for expedition and adopt the most streamlined procedures that will allow it to determine which applicant's proposal is most consistent with the public convenience and necessity. Since less than two months remain before those opportunities become effective, FedEx Express suggests that the Department seek applications that will give the minimal information needed for the Department to make an informed decision. Should a cargo operator seek the limited opportunities that are available, FedEx Express proposes that a single opportunity to respond from interested parties would complete the record for decision. FedEx Express sees no need for the Department to establish any special procedure to allocate any future frequencies at this time, because the tranches of capacity that will become available may well satisfy the immediate demand needed by the designated all-cargo airlines. Instead, FedEx Express proposes that, as we look toward full cargo liberalization, the Department mimic the process that carriers would use in a deregulated world to the greatest extent possible, thereby allowing them to respond to market opportunities and customer demand. The Department can best mimic this process not by seeking applications now, but rather by allowing carriers to apply when and as the demand arises. Any new applicant for future cargo frequencies would, of course, be required to notify all designated cargo operators of its request, which would enable the Department to have a competitive proceeding if required. The proposed process would come closer to a market-based solution if coupled with a truly expedited procedure that would allow carriers to know that they have the opportunity to acquire as many frequencies as they need with no more than about 45 days' regulatory notice. FedEx Express urges the Department to pay special attention to the Department's requests for information to support its review. Such requests should be trimmed to that which is used and useful; boilerplate requests should be carefully reviewed. Counsel: FedEx, Bailey Leopard, 901-434-6664, gbleopard@fedex.com
June 1, 2007 In response to the Department's solicitation of the views of interested persons regarding the procedural options that the Department should exercise to award U.S.-China rights that become available from 2007 through 2012, Gemini Air Cargo, Inc., asks the Department to make an initial determination whether the United States will select an all-cargo or a combination carrier in 2007. Effective August 1, 2007, the United States will be able (a) to designate one additional U.S. all-cargo or combination carrier and (b) allocate seven additional combination frequencies. One logical inference from the availability of seven new combination frequencies and no new all-cargo frequencies is that the U.S. would designate an additional combination carrier and award many or all of the new combination frequencies to that new market entrant. Gemini would like to avoid the investment of resources to participate in a 2007 carrier selection proceeding if the Department has effectively predetermined that it will award the U.S. carrier designation for 2007 to a combination carrier. Gemini and other all-cargo carriers made a similar request that asked the Department to first decide whether it would make the 2005/2006 award to an all-cargo or to a combination carrier, but the Department declined. The result was that the Department considered quite disparate all-cargo and combination service proposals. Gemini respectfully still believes that the public interest would have been better served by a process in which the Department first decided whether the carrier would be an all-cargo or a combination carrier and then proceeded to the selection of that type of carrier -- just as Gemini asks the Department to do with respect to the 2007 selection. Such an initial determination does not need to be procedurally burdensome or time-consuming. If the Department has already made a tentative decision regarding the type of carrier that it will designate in 2007, the Department should issue an order to show cause why it should not make that decision final, giving the reasons for its decision. and providing a reasonable, but fairly short, answer period. If the Department has not made a tentative decision, it could still solicit comments on which category of carrier it should select and then make that decision based on its consideration of the comments that it receives. Counsel: Roller & Bauer, Moffett Roller, 202-331-3300, mroller@rollerbauer.com
June 1, 2007 Comments of Hartsfield-Jackson Atlanta International Airport First, given the substantial demand for new service to China and the need for any new entrant gateway and the operating carrier to market extensively any such new intercontinental service, H-JAIA strongly encourages the Department to move expeditiously to institute and complete a proceeding to award the available 2007 frequencies and designation. Second, in order to streamline further the comparative selection process, eligibility for the 2007 frequencies and designation should, as a matter of public interest, be limited to new entrant passenger carriers. It is our understanding that in the most recent US.-China cargo frequency proceeding, all requests for frequencies were satisfied. In the most recent U.S.-China passenger frequency allocation proceeding, new entrant carriers (like Delta) were not eligible to participate. Now, for the first time since the 2004/2005 U.S.-China proceeding (when then-new entrants Continental Airlines and American Airlines received awards), a new U.S. combination carrier designation is available with corresponding frequencies. Given this context, it makes sense for the Department to provide in the instituting order that only new entrant passenger airlines will be eligible to apply for the 2007 route rights. Failure to award these frequencies to a new entrant utilizing the new designation is likely to result in the delay in entry by a new combination carrier for at least two more years (when more combination frequencies become available). That result would not serve the public interest and would be contrary to the competitive market structure. Third, H-JAIA does not believe that the Department should combine its consideration of the 2008 or 2009 U.S.-China rights with its consideration of the applications for the 2007 route rights. The 2008 and 2009 rights are distinct and temporally distant from the 2007 rights. There would be no obvious efficiency gains from the simultaneous consideration of applications for these distinct route rights. Moreover, an award of the 2007 route rights would provide the Department with useful experience for the future allocation of the 2008 and 2009 route rights. By: Deputy General Manager, Mario Diaz, 404-209-4958, mario.diaz@atlanta-airport.com
May 31, 2007
Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513
June 1, 2007 Re: Comments of Hawaiian Airlines
Counsel: Dow Lohnes, Jonathan Hill
June 1, 2007 Comments of Northwest Airlines The Department Should Consolidate the Combination Frequency Awards for 2007 through 2009. It is vital for the Department to put enough opportunities at issue to provide interested carriers and communities with a reasonable chance of sharing in the good news of the new China agreement. Northwest strongly urges the Department to consider in a single case the new combination frequencies that become available between now and 2009. The public need and the level of U.S. carrier interest in combination service to China has never been greater. With just seven frequencies in 2007, and seven restricted frequencies in 2008, a case that fails to include the 28 combination frequencies available in 2009 creates unnecessary scarcity -- and would force the Department to turn away beneficial proposals that could otherwise be authorized immediately. Conversely, with 42 combination frequencies available in a consolidated case, the Department would be in a position to maximize benefits to carriers, communities, and the traveling public. U.S.-China cargo frequencies are currently undersubscribed by two opportunities, and there are fifteen all-cargo opportunities that become available for allocation in 2008 and 2009. Unless a new cargo carrier is selected for the 2007 designation opportunity, it is unlikely that cargo frequencies will be oversubscribed in the next two years. In these circumstances, the Department should institute a case to award cargo opportunities only when and if it becomes necessary. Northwest applauds the Department's success in achieving a breakthrough agreement with China, and urges the Department to immediately put at issue the combination frequencies that become available through 2009. The Department now has the ability to award substantial new frequencies to interested carriers and their gateway communities. Having achieved success in liberalizing the agreement with China, it would make no sense to create artificial regulatory scarcity by unduly limiting the scope of this proceeding. Counsel: Northwest, Alexander Van der Bellen, 202-842-8184
June 1, 2007 Comments of the Port Authority of New York and New Jersey The Port Authority respectfully submits that the Department should address the frequencies that become available in 2007, 2008 and 2009 in a single proceeding as soon as possible rather than burdening potential applicants, their supporters and the Department's staff with multiple proceedings. In addition to reducing burdens on the parties, holding a consolidated proceeding to consider 2007,2008 and 2009 awards will allow the Department to consider the inter-relationships among the proposals and the distribution of potential traffic and benefits within both the U.S. and China to make awards based on broad-based considerations rather than focusing on a single award in a single market in 2007 and 2008 and a limited number of awards and markets in 2009. Moreover, acting promptly to institute and complete a single proceeding will enable organizations such as the Port Authority and other airports to work with the selected carriers to coordinate in advance with Customs and Border Protection and plan for the orderly introduction of the new China services in 2008 and 2009. With adequate advance planning shared by airport and airline officials, each of the new China flights will be far more successful from their dates of inauguration forward. Counsel: PANYNJ, Bradley Rubinstein, brubinst@panynj.gov
June 1, 2007 Comments of TradeWinds Airlines
Since neither the current allocation of weekly all-cargo frequencies nor the combination frequencies are currently being fully utilized and it is not clear which carrier (whether combination or all-cargo) will be awarded the single 2007 designation, Tradewinds respectfully submits that it makes no sense to tie the designation and frequency awards for 2009 to 2007 rights which, Tradewinds believes, must be immediately awarded to avoid wastage. The airlines, other parties and the Department should not be pressured to decide in mid-2007 rights which by definition cannot be used until March 2009. The issues involved in awarding 2009 rights will be complex and should not be tied to an award of 2007 rights. Counsel: Law Offices of Pierre Murphy, 202-776-3980, pmurphy@lopmurphy.com
June 1, 2007 Re: Comments of United Air Lines We feel that any proposals to conduct a combined proceeding covering frequencies for multiple years will have significant disadvantages. The aviation industry in the U.S. and especially in China is evolving rapidly. China is one of the fastest growing aviation markets in the world. Major structural changes, new injections of foreign capital and improved management expertise, and delivery of new aircraft will greatly enhance the Chinese carriers’ competitiveness and make it more likely they will initiate additional service to the U.S. The CAAC and the PRC carriers have been considering the possibility of further consolidation in the Chinese aviation industry. Such major structural changes will affect the U.S.-China aviation market. In the U.S., we have witnessed significant changes in the competitive landscape over the past several years and more change is likely. Under these circumstances, it is difficult to predict market conditions two years from now and attempts to do so risk introducing further distortions into this regulated market. Any proceedings held with respect to frequencies to be granted more than a year in advance would necessarily be based on assumptions and extrapolations that may be highly uncertain. In addition, we do not believe combining frequency allocations for multiple years would improve the efficiency of the process or reduce burdens on DOT or the applicants. To the contrary, combined proceeding would likely be highly complex, unnecessarily burdensome and lengthy for both DOT and participating airlines. We, therefore, urge DOT to avoid combining frequencies to be allocated in 2009 or beyond with allocation proceedings involving frequencies available in 2007 and 2008. This will ensure that DOT has the most up-to-date information and is able to fully evaluate current market conditions at the time each award is made. Counsel: United, Michael Whitaker
June 1, 2007 With respect to any future cargo frequency allocation proceedings, UPS is of the view that, while it is possible that such proceedings might be necessary in the future, none need be instituted at this time. The fifteen all-cargo fiequencies that became available on March 25,2007 were not fully subscribed, and two frequencies are currently unused, available to any designated cargo carrier that might want them. Also, there are seven frequencies available to serve China Zone 2. Furthermore, fifteen additional allcargo frequencies become available in 2008, and each year thereafter until 2011 when all limitations on cargo carrier designations and frequencies will be removed. Accordingly, there is currently no shortage of all-cargo frequencies, and therefore no need to conduct a frequency allocation proceeding. Under the May 23,2007 Memorandum of Consultations one additional combination or all-cargo carrier may be designated and commence services as of August 1, 2007. If an all-cargo carrier applies for that designation, and is awarded the designation, it is conceivable that this could possibly lead to a shortage of all-cargo frequencies. If that should occur, then an all-cargo frequency allocation proceeding might become necessary. Again, the Department should not jump to this conclusion and anticipate a problem that might not arise. Counsel: Kelley Drye, David Vaughan, 202-342-8642, dvaughan@kelleydrye.com
June 1, 2007 US Airways respectfully submits that the dual goals of efficiency and speed call for a series of simplified proceedings whereby DOT can separately compare similar carriers that are competing for similar categories of rights - new designations, new frequencies, new cargo opportunities - rather than a single, complex, "monster case" in which apples-to-apples comparisons are obscured. By "deconstructing" the award process, the Department can most effectively assess the public interest implications of potential decisions, act expeditiously, and minimize the likelihood of extended, complex, and contentious allocations.
US Airways respectfully urges the Department to adopt the suggested procedure for disaggregating the China Rights matter into smaller proceedings, beginning with the allocation of combination carrier designations for 2007 and 2009. With two key determinations as to the need for new combination over cargo service in 2007, and the allocation of a daily frequency for each new designee, DOT can utilize expedited procedures to ensure prompt allocation of these valuable new rights in the public interest. Counsel: US Airways, Howard Kass, 202-326-5153
June 1, 2007 Comments of Wayne County Airport Authority Northwest Airlines has already indicated its strong interest in new nonstop service on the Detroit-Shanghai and Detroit-Beijing routes. See, NWA Press Release dated May 23, 2007. Detroit is, without a doubt, the largest and most effective hub gateway for service to China that does not currently have nonstop service, and the Department should make new China service at Detroit a top priority. The Wayne County Airport Authority participated in the 2007 China Case, and was very disappointed that Northwest was not selected last year for Shanghai service. However, with so many applicants, and so few opportunities, the Department faced a difficult and very limited choice. With the breakthrough China agreement, the Department now has the ability to allocate many more frequencies to the benefit of carriers, communities, and the traveling public. The Department has conducted multi-year consolidated cases in the past, such as the recent 2005/2006 China case, and deciding the route awards through 2009 avoids the cost and inefficiency of conducting immediately sequential route cases. In these circumstances, The Department should immediately establish an expedited proceeding and award the 42 China frequencies that are available through 2009, so that the Wayne County Airport Authority, the State of Michigan and regional Detroit, and Northwest Airlines and can share in the good news of the successful China negotiations. By: Wayne County Airport Authority, Lester Robinson, 734-942-3550, laura.jackson@wcaa.us
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