OST Docket Filings for June 25, 1997
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OST Docket Filings for June 25, 1997
FedEx, Arrow and FWIA | FWIA | Korean Air (2) | UPS (2) | Volga Dnepr
Notices of Action Taken:
Mexicana and United | United and Mexicana
Notices and Orders:
Compania Mexicana de Aviacion, S.A. de C.V. and United Air Lines, Inc. (Notice of Action Taken)
OST-96-1988 and Undocketed | Posted June 24, 1997
Statement of Authorization under 14 CFR Part 212 to permit Mexicana to carry United's code in 21 U. S -Mexico and intra-Mexico city-pair markets (see Attachment 1 of the application), for a period of two years. (The joint application also includes requests by Mexicana and United for underlying operating authority in certain markets and by United for authority to carry Compania Mexicana's code in certain markets. We have concurrently addressed these requests separately.)
In reaching our decision to grant Mexicana authority to carry United's code in the above 18 markets for a period of 179 days (this is not a license with reference to an activity of a continuing nature within the meaning of 5 U.S.C. 558(c)), we found that favorable action for that duration was supported by adequate reciprocity by the Government of Mexico. In that connection, we noted that Mexican authorities have approved the Northwest/Alaska Airlines code-share request (see above) for two consecutive six-month periods. Also, we noted that American Airlines had set forth substantially similar arguments in its petition for review (filed December 11, 1996) of the staff's action approving the Delta/Aeromexico reciprocal codeshare services in various U.S.-Mexico markets (undocketed), which action has been affirmed by the Department in Order 97-1-15 (issued January 21, 1997). American has not raised any new issues for consideration since that Order was issued that would warrant unfavorable or different action on the instant application. Moreover, we note that general issues relating to limitations on authorization of code-share services in the U.S.-Mexico market have been raised in the context of the American Airlines/Aero California code-share application, Dockets OST-97-2477/2481 and undocketed. We intend to address those issues in the context of our decision in that case. The parties in this case are on notice that the authorities granted by our action here will be subject to any decision made on the general issues raised in the American/Aero California code-share case. Further, while granting the above authority, we also deferred action on Mexicana's pending request to carry United's code in the Chicago-Puerto Vallarta, Miami-Cancun, and Newark-Cancun markets and for underlying authority by exemption to conduct scheduled services in various U.S.-Mexico markets (see Attachment 4 ofthe application). That portion of Mexicana's re quest to carry United's code in the three additional markets was not ripe for consideration, because United, at this point, lacks authority to conduct scheduled services in those markets.
By: Paul Gretch / Counsel: Joel Burton for United, 202-637-9130 / Robert Papkin for Mexicana, 202-626-6601
Crescent City, California (EAS)
Order 97-6-29 | OST-97-2649 (40825) | Issued June 25, 1997 | Served July 1, 1997
Order Tentatively Reselecting Carrier,
Establishing Subsidy Rates, and Requesting Carrier Proposals
We have reviewed WestAir's proposals and the community s traffic history and find that the restoration of subsidy for the service levels that were in place before the program-wide reductions is appropriate. We also find that WestAir's service has been reliable and its proposed subsidy is reasonable. In that respect we note that Crescent City's traffic has grown steadily and that WestAir has acknowledged the community's traffic-generating potential by continuing to provide three round trips a day, despite the fact we have been subsidizing only ten round trips a week. The subsidy rate we are tentatively authorizing here reflects the full three-round-trip-a-day service pattern.
Appendix A | Appendix B | Appendix C | Appendix D
By: Charles Hunnicutt
Federal Express Corporation and Arrow Air, Inc. and Florida West International Airways, Inc. (Transfer of Frequency Allocations, US-Argentina All-Cargo)
OST-97-2548 | June 25, 1997
Consolidated Joint Surreply and Motion
for Leave to File
Polar's competition arguments rest heavily on an unwarranted assumption that the current 12-weekly-frequency ceiling on U.S.-flag all-cargo operations between the U.S. and Argentina is necessarily static and immutable. Contrary to that assumption, however, the Joint Applicants believe that there are substantial reasons to anticipate that a significant relaxation of frequency limitations on U.S.-Argentina cargo operations may occur in the near future. Among other factors presaging such a shift in Argentina Government policy are the dramatic growth in trade between the U.S. and Argentina, the express desire of the primary Argentinean carrier, Aerolineas Argentinas, for expanded access to the U.S. market, and the growing proliferation -- and success -- of more liberal aviation bilateral agreements between the U.S. and other countries throughout Europe, the Asia/Pacific region, Cariada, Mexico and Latin America.
Counsel: Allan Markham for Arrow, 202-337-2149 / Squire Sanders, Marshall Sinick, 202-626-6651 / Shaw Pittman, Nathaniel Breed, 202-663-8078
Florida West International Airways, Inc. (Exemption Renewal)
OST-97-2648 | June 25, 1997
Counsel: Squire Sanders, Heather Boals, 202-626-6790
Jim Air, Inc. (Certificate of Public Convenience and Necessity, Interstate Scheduled)
Order 97-6-26 | OST-96-1676 | Issued June 19, 1997 | Served June 25, 1997
Order Issuing Effective Certificate and
Confirming Oral Action
By Order 97-3-1, served March 7, 1997, the Department found that Jim Air, Inc., was fit, willing, and able to conduct interstate scheduled air transportation of persons, property, and mail and issued Go it a certificate authorizing such operations.
Certificate of Public Convenience and Necessity | Service List
By: John Coleman
Korean Air Lines Co., Ltd. (Exemption Renewal, Seoul-Boston/Denver)
OST-96-1380 and OST-96-1381 | June 25, 1997
Application for Renewal of Exemption
Requests renewal of exemption authority granted to KAL in Dockets OST-96-1380 and OST-96-1381, in order to provide scheduled single-plane, one-stop foreign air transportation of persons, property, and mail between Seoul, Korea, and Boston, Massachusetts, via New York, New York, and between Seoul and Denver, Colorado, via Los Angeles, California. KAL submits this Application in accordance with the Department's Program for Expanding International Air Service Opportunities to More U.S. Cities (the "Cities Program"). KAL requests that the Department renew the requested authority for one year.
Answers are due by July 10, 1997
Counsel: Zuckert Scoutt, James Devall, 202-298-8660
Korean Air Lines Co., Ltd. (Exemption Renewal, Seoul-Washington, DC)
OST-95-234 | June 25, 1997
Application for Renewal of Exemption
Requests that the Department renew for one year the exemption authority granted to KAL by the Notice of Action Taken dated July 9, 1996 and confirmed in Order 96-8-46 authorizing KAL to engage in scheduled foreign air transportation of persons, property, and mail between Seoul, Korea, and Washington, D.C., via New York, New York, and grant KAL such further and additional relief as the Department may deem appropriate under the circumstances.
Answers are due by July 10, 1997
Counsel: Zuckert Scoutt, James Devall, 202-298-8660
United Air Lines, Inc. and Compania Mexicana de Aviacion, S.A. de C.V. (New – Notice of Action Taken)
OST-96-1988 | Posted June 24, 1997
Scheduled foreign air transportation of persons, property, and mail in the following U.S.-Mexico citypair markets: Chicago-Guadalajara; Chicago-Puerto Vallarta; Denver-Mazatlan; Denver-Puerto Vallarta; Denver-San Jose del Cabo; Los Angeles-Cancun; Miami-Cancun; Miami-Cozumel; Newark-Cancun; San Antonio-7VIesico City; San Francisco-Guadalajara; and San Jose-Guadalajara. United stated that it plans to operate these services under a code-share arrangement with Mexicana on flights operated by Mexicana.
In addition, United applied for exemption authority to serve the Chicago-Acapulco market (where American is designated and is currently serving) and the Washington, D.C.-Cancun market (where US Airways is designated and is currently serving). Each of these markets is approved only for single-designation services. Should we obtain double-designation approval from the Mexican aviation authorities for these routes, we will proceed to act on United's requests.
Finally, we have deferred action on United's request to put Mexicana's code on its flights in the ChicagoBoston and Los Angeles-Honolulu markets. Mexicana does not currently hold the necessary underlying economic authority to serve the Mexico-Boston and Mexico-Honolulu markets requested in Docket OST-961988. See Notice of Action Taken dated June 23, 1997, acting on Mexicana's requests in Docket OST-961988.
By: Paul Gretch / Counsel: Joel Burton for United, 202-637-9130 / Robert Papkin for Mexicana, 202-626-6601
United Parcel Service Co. (Amendment of Certificate of Public Convenience and Necessity for Route 569, US-Mexico)
OST-97-2626 | June 25, 1997
DHL Airways, Inc. has no objection to the application of United Parcel Service Co. for an amendment to its certificate authority to provide all-cargo service on its Route 569 between San Antonio and Mexico City and between Houston and Guadalajara, provided that, as UPS requests, the U.S. Government first obtains the agreement of the Mexican Government to the designation of a second U.S. all-cargo carrier in the Houston-Guadalajara city-pair market. As UPS correctly notes, DHL is currently providing scheduled all-cargo service in this market, Order 96-11-24, and intends to continue to do so.
Counsel: DHL and R. Tenney Johnson, 202-663-9030
United Parcel Service Co. (Exemption, US-Mexico)
OST-97-2627 | June 25, 1997
DHL Airways, Inc. has no objection to the application of United Parcel Service Co. for exemption authority to provide all-cargo service between San Antonio and Mexico City and between Houston and Guadalajara, provided that, as UPS requests, the U.S. Government first obtains the agreement of the Mexican Government to the designation of a second U.S. all-cargo carrier in the Houston-Guadalajara city-pair market. As UPS correctly notes, DHL is currently providing scheduled all-cargo service in this market, Order 96-11-24, and intends to continue to do so.
Counsel: DHL and R. Tenney Johnson, 202-663-9030
Volga Dnepr J.S. Cargo Airlines (Renewal and Amendment of Exemption, Scheduled and Charter Cargo, Russia – US)
Volga-Dnepr further notes that recent developments in the U.S.-Russia bilateral relationship warrant reexamination of the presumed basis for the Department's earlier decision to take no action with respect to VolgaDnepr's request for expanded services. Specifically, the Department has recently stated in the context of the United-Lufthansa relationship "that further efforts between the governments will be required before a solution will be forthcoming, and the optimum approach is to pursue that diplomatic course." Letter of Paul Gretch to Counsel for Aeroflot, granting, in part, request for fifth freedom charter services, at 2. Considering the Department's position, and, more importantly, that Volga-Dnepr's request is consistent with the current bilateral, Volga-Dnepr respectfully requests that the Department approve all the bilateral authority requested in its October 2, 1995 application, as modified by this amendment.. Volga-Dnepr notes, with some concern, that it remains the only Russian carrier to have authority for services explicitly provided for in the bilateral withheld as a result of these and other ongoing intergovernmental issues.
Exhibit A – Charter Flight Schedule | Service List
Counsel: Hogan Hartson, George Carneal, 202-637-5683
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