American Airlines, Inc. against AVIANCA, ACES, and The Goverment of Colombia (Order 96.7.10, Complaint)

OST.96.1315 / Issued and Served July 5, 1996

FullText - Order to Show Cause

By this order we tentatively impose sanctions on Avianca or ACES, to prohibit daily nonstop service between New York or Miami and Bogota. We direct interested persons to file comments by Tuesday, July 9, with answers due Wednesday, July 10.

American Airlines, Inc against AVIANCA, ACES, and Government of Colombia (Complaint of)

OST.96.1315 / Filed July 9, 1996

The following comments were filed:

FullText - Comments of Aerolineas Centales de Colombia

American's complaint is but one facet of the bilateral dispute that has been the subject of recent negotiations between the countries. Colombia has raised legitimate complaints concerning the impairment of its carriers' bilateral right to a fair and equal opportunity to compete. The present state of competitive imbalance in the market is further exacerbated by the U.S. government's designation of Colombia as a Category 2 country.

Counsel: Zuckert Scoutt

FullText - Objections of Aerovias Nacionales de Colombia

The Colombian Government's position with respect to American's institution of service between New York and Bogota is fully consistent with the express terms of the Agreement.

Letter from American's Station in Bogota not included

Counsel: Squire Sanders Dempsey

FullText - Comments of American on Show Cause Order 96.7.10

American believes that the Department should prohibit Avianca from operating nonstop service between New York (JFK) and Bogota, effective July 15, 1996. This proceeding arose because the Government of Colombia has refused to permit American to resume daily nonstop service between New York (JFK) and Bogota, in violation of the U.S.-Colombia Air Transport Agreement and American's valid operating permit issued by the Colombian aeronautical authorities. In these circumstances, the appropriate and proportional countermeasure would be to prohibit Avianca from operating daily nonstop service in the identical market, New York (JFK)-Bogota, until this matter has been satisfactorily resolved.

Counsel: American

FullText - Comments by the Government of Colombia

The Government of Colombia believes that the tentative sanctions described in the Order To Show Cause would render the United States in violation of the provisions of the Air Transport Agreement in force between the two countries. The use of unilateral sanctions by the United States is also contrary to the spirit of cooperation that has characterized commercial aviation negotiations between the two countries.

By: Colombia

FullText - Objections of Continental Airlines

Continental urges the Department to negotiate with Colombia rather than imposing sanctions. If the Department decides to impose sanctions, it should defer implementation of those sanctions until at least 30 days after issuance of the Department's final order and implement sanctions at Miami rather than at New York.

Counsel: Crowell Moring

FullText - Comments of Fine Airlines

Fine Air believes it important that any final order in the instant proceeding, consistent with the Department's representations to the Colombian delegation during recent bilateral consultations, note that the Colombian Government's violations of its bilateral obligations are not limited to its failure to permit American to conduct the proposed New York--Bogota service, but also include its refusal to approve Fine Air's application

Counsel: Wilmer Cutler Pickering

FullText - Comments of Southern Air Transport

American's IATFCPA Complaint against AVIANCA, ACES and the Government of Colombia has been pending, Southern's otherwise uncontroversial June 14, 1996 application for all-cargo long-term wet-lease authority to the Colombian all-cargo carrier LAS has also been pending solely due to American's objection, with no action by the Department for over three (3) weeks now. The sole basis for American's objection to Southern's application are the complaints raised by it in the IATFCPA complaint herein (See June 14, 1996 letter of American) and dealt with in the Show Cause Sanctions Order. Neither LAS nor Southern's all-cargo operations to Colombia have anything to do with American's Complaint or, more importantly, the sanctions now imposed by Order 96-7-10.

Counsel: Pierre Murphy

American Airlines, Inc. against AVIANCA, ACES, and the Government of Colombia (Complaint of)

OST.96.1315 / Filed July 10, 1996

The following answers and replies were filed:

FullText - Answer of American to Objection to Show Cause Order 96.7.10

Due to Colombia's conduct, American has been forced to leave a B757-200 aircraft unused for the entire month of June, and now for part of July. American has paid crews that did not fly. Travelers and shippers have been inconvenienced. Reservations have not been fulfilled.

Counsel: American

FullText - Comments of The Port Authority of NY & NJ

We are hopeful that the Department's tentative decision to impose sanctions against Columbian air carriers service to the United States will result in the Government of Columbia reconsidering its refusal to permit American Airlines to resume its daily service between New York and Bogota.

By: Gerald P. Fitzgerald

FullText - Reply of Southern Air Transport to Comments of American

Southern takes no position on American's recommendation that sanctions should be imposed against AVIANCA between New York (JFK) and Bogota

Counsel: Pierre Murphy

American Airlines, Inc. against Avianca, ACES, and The Government of Colombia (Order 96-9-12)

OST-96-1315 / Issued and Served September 10, 1996

Order Dismissing Complaint

By this order we dismiss the complaint filed by American Airlines, Inc. against Aerovias Nacionales de Colombia S.A. ("Avianca"), Aerolineas Centrales de Colombia ("ACES"), and the Government of Colombia, alleging that Colombia is violating our bilateral agreement by refusing to permit American to resume daily nonstop service between New York and Bogota and beyond to Quito.