OST-97-3261 / Federal Express / US-Thailand Start-Up Delay / Answer of Air Micronesia / January 2, 1998
Application of :
FEDERAL EXPRESS CORPORATION
for grant of an exemption pursuant to 49 U.S.C. § 40109
(Thailand Cargo Service)
ANSWER OF
AIR MICRONESIA, INC.
Federal Express /1 has asked for one of three alternative forms of relief an exemption from the 90-day dormancy condition for one of its six U.S.-Thailand cargo frequencies, substitution of a notice requirement for the automatic termination provision applicable to U.S.-Thailand frequencies or elimination of the 90-day dormancy condition altogether for its sixth Thailand cargo frequency.
Air Micronesia supports relief for Federal Express so long as comparable relief is given to other holders of U.S.-Thailand cargo frequencies and states as follows in support of its position:
1/ Common names of carriers are used.
Answer of Air Micronesia
Page 2
1. Although Air Micronesia has no objection to the Federal Express request for an exemption from the dormancy condition for its sixth weekly frequency, Air Micronesia submits that an appropriate notification requirement, if applied to both certificate authority and frequencies, /2 could provide important benefits by "decreasing the administrative burdens imposed on [airlines] and the Department by the necessity of preparing and processing repeated exemption applications." (
Federal Express Application at 4) As Air Micronesia understands the Federal Express notification proposal, carriers would notify the Department when they are neither using the frequencies allocated to them nor have a plan to do so. At that time, the frequencies would be returned to the Department for reallocation and interested carriers could apply for them. Based on this understanding, Air Micronesia supports the Federal Express proposal.2. If the Department decides to require notification at a particular date in lieu of requiring renewals of exemptions from startup requirements, the Department could adopt a modified notification provision pursuant to which the holders of U.S.-Thailand frequencies would retain their authority but notify DOT and other parties to the Thailand allocation proceeding that they are not currently
2/ Unlike Federal Express, Air Micronesia has dormancy conditions imposed on both its Thailand all-cargo certificate and its frequency allocation. Whatever relief the Department provides with respect to the Federal Express frequency condition should also be applied to the Air Micronesia certificate condition as well as to the frequency allocation conditions of all carriers holding Thailand cargo frequencies.
Answer of Air Micronesia
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using the frequencies. /3 As in the Federal Express proposal, no further action by the holder or DOT would be required unless some other carrier sought the unused authority. The Department's resources would not be expended unless and until some other airline sought the authority and the Department then establishes procedures to allocate whatever frequencies are dormant at that time. Both carrier and Department resources would be conserved with no loss of opportunities for carriers seeking authority other carriers have allowed to become dormant.
3. Alternatively, Federal Express asks the Department to exempt its sixth Thailand frequency from the 90-day dormancy condition "so as to make the utilization of that single frequency wholly discretionary with Federal Express." (Federal Express Application at 5) If such relief were given to Federal Express, similar relief should be given to Air Micronesia and other carriers as well. No one carrier should have the discretion to discontinue using authority granted to it without risk while other carriers holding the same authority place their authority at risk by not using it.
For the foregoing reasons, Air Micronesia urges the Department to substitute a notification provision for the 90-day dormancy provision in U.S.-Thailand cargo certificate and frequency authority held by all carriers and permit carriers to retain their unused authority until they determine it will not be used
3/ Requiring such notifications initially as of September 28, 1998, would allow the Department and other parties to evaluate frequency utilization at the end of the dormancy period currently imposed on dormant Thailand frequencies.
Answer of Air Micronesia
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or until mutually-exclusive applications are submitted seeking the use of that authority.
Respectfully submitted,
CROWELL & MORING LLP
By:
R. Bruce Keiner, Jr.
Steven A. Mirmina
Counsel for Air Micronesia, Inc.