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OST Docket Filings for May 7, 2008

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Updated: 5/8/08 | 9:04 AM

Applications and Renewals:

Aloha Airlines and Aeko Kula d/b/a Aloha Air Cargo - Transfer of Certificate / Pendente Lite Exemption

American - Additional Chicago-Moscow Frequency Allocation

Delta and Czech - Prague-Thesaloniki, Greece and Tbilisi, Georgia 30-Day Codeshare Notice

Answers and Replies:

2009 US-China All-Cargo - Joint Petition for Reconsideration of FedEx, Northwest, Polar Air Cargo and UPS

EAS at Athens and Macon, GA - Proposals of Pacfic Wings, Vintage Props & Jets and Wings Air

EAS at Oil City, PA - City of Oil City in Support of Gulfstream Int'l Option 2

Santa Barbara Airlines - Reply of Santa Barbara to Answers of Amerijet and American

United - Answer of American (US-Russia Frequency Allocation)

Notices of Action Taken:

None

Notices and Orders:

ACM Air Charter - Final Order (Germany-US Executive Passenger Charters)

Astraeus - Final Order (EU-US Open-Skies)

Blanket Route Integration - Issuing Certificates

DCA Slots - Denying Motion of AirTran to Amend Slot Exemptions

EAS at Kearney, North Platte and Scottsbluff, NE - Requesting Proposals

Nondiscrimination on the Basis of Disability in Air Travel - Final Rule (Original) - From April 28

SAS - Final Order (EU-US Open-Skies)




2009 US-China All-Cargo Designation and Frequency Allocation Proceeding

OST-2008-0127

May 7, 2008

Motion for Leave to File and Joint Petition for Reconsideration of FedEx, Northwest, Polar Air Cargo and UPS

Federal Express Corporation, Northwest Airlines, Inc., Polar Air Cargo Inc. and United Parcel Service Co. hereby ask the Department to amend Order 2008-4-22 by removing Item 10 of the Evidence Request in the Order's Appendix. In light of the simplified procedures the Department has adopted for this case -- which do not include a traffic forecast requirement -- the Petitioners move to be relieved of the burdensome incumbent data request, which is unnecessary for the sole issue of detennining which new entrant carrier will receive the available all-cargo designation.

None of the Petitioners intend to participate in this proceeding as applicants. They should not be required, therefore, to incur the expense of gathering and submitting such information, especially when it is not required for the Department's determination in this case.

Imposing any evidence requests on the Joint Petitioners, while eliminating the Department's own information response requirements is contrary to the simplified procedures that are intended to reduce burdens on carriers appearing before the Department in route proceedings. Parties in designation and frequency proceedings already incur great expense and use a considerable amount of valuable resources when gathering requested infonnation and evidence that is pertinent to the proceedings. While applicants seeking designations and frequencies typically would not object to reasonable requests for data that are necessary for Department determinations, it is unnecessary for non-applicants that do not anticipate participating in a proceeding to incur costs and expend valuable resources in gathering and submitting infonnation when such infonnation is not necessary for the Department to render its decision.

Counsel: Bailey Leopard, 901-434-6664, gbleopard@fedex.com for FedEx / Alexander Van der Bellen, 202-841-4184, sascha.vanderbellen@nwa.com for Northwest / Kevin Montgomery, 202-828-1002, kevin.montgomery@polaraircargo.com for Polar / Michael Francesconi, 502-329-6541, mfrancesconi@ups.com for UPS

Index


ACM Air Charter Luftfahrtgesellschaft mbH

Order 2008-5-8
OST-2006-24190 - Foreign Air Carrier Permit - Germany-US Executive Passenger Charters

Issued March 6, 2008 | Served May 7, 2008

Final Order

By Order 2008-2-15, issued February 12, 2008, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions stated therein and award an amended foreign air carrier permit in the form attached to the Order and subject to the conditions attached thereto. We gave interested persons 21 days to file objections to the Order. We said that if no objections were filed, all further procedural steps would be deemed waived, and the Department would enter an order (subject to Presidential review under 49 U.S.C. §41307) which would make final the findings and conclusions of the Order.

No objections were received within the time period provided.

By: Paul Gretch

http://www.acm-air-charter.de/

Index


Aloha Airlines, Inc. and Aeko Kula, Inc. d/b/a Aloha Air Cargo


OST-2008-0158 - Transfer of Certificate of Public Convenience and Necessity

May 6, 2008

Application for Transfer of a Certificate - Bookmarked

Aloha Airlines, Inc. and Aeko Kula, Inc. d/b/a Aloha Air Cargo hereby request that the Department transfer AAl's Certificate of Public Convenience and Necessity (and certain other exemption authority) to AKI. This request is submitted as a result of the March 20, 2008 filing by AAI filed for protection under Chapter 11 of the Bankruptcy Code, and the subsequent efforts (described below) to find a buyer for the assets of AAI. Despite the recent conversion of the bankruptcy action from Chapter 11 to Chapter 7, the Bankruptcy Court on May 1, 2008 authorized AAI to continue its cargo operations in anticipation of a proposed sale of those operations to AKI. A formal hearing on the transaction is slated for May 12, with closing scheduled to occur as soon as possible after that date, but no later than May 14, 2008.

The viability of AKI depends on the timely approval of the requested certificate transfer. AKI requires the timely certificate transfer to continue the operations of AAI with minimal disruption to service. As noted above, approval of this certificate transfer will preserve over 200 jobs and ensure continued critical air cargo services in Hawaii. Hawaii is unique in that there are few (if any) substitutes for the critically important air cargo service that has been provided by AAI up to now, and local businesses throughout the islands are heavily reliant on the economic lifeline that these air services provide. Failure to authorize the transfer of the certificate on or before May 14, 2008, would have severe consequences, as the company's interim financing expires on that date. The failure to transfer the certificate to AKI, and provide the company with a fresh source of capital, will cause severe disruption of air cargo services in Hawaii, and a threat to the local economy.

Counsel: Holland & Knight, Anita Mosner, 202-419-2604, anita.mosner@hklaw.com for Aeko Kula / Squire Sanders, Edward Sauer, 202-626-6641, esauer@ssd.com for Aloha Airlines


OST-2008-0159 - Pendente Lite Exemption

May 6, 2008

Application for Pendente Lite Exemption

Aloha Airlines, Inc. and Aeko Kula, Inc. d/b/a Aloha Air Cargo hereby request a pendente lite exemption from the provisions of 49 U.S.C. § 41105 to the extent necessary to permit AKI to close its purchase of AAl's cargo-related assets and perform intra-Hawaii cargo operations under new ownership, while the Department considers the Joint Application filed today to transfer AAl's certificate and exemption authority to AKI.

As the Department is aware, AAI filed for protection under Chapter 11 of the U.S. bankruptcy laws on March 20, 2008, and ceased scheduled passenger flights on March 30, 2008. In the period immediately following the shutdown of passenger operations, AAI continued to provide critical intra-Hawaii air cargo transportation services, with the intent of selling its cargo assets in the bankruptcy process. On April 25, an auction for AAl's assets was held, with the process failing to produce a successful bidder for the cargo assets.

To ensure the continued operation of cargo service in the market, the Joint Applicants require approval before May 14, 2008 (the proposed closing date of the transaction) of the transfer of AAl's certificate (and exemption authority) to AKI pursuant to 49 U.S.C. § 41105. Due to the short time frame required by the asset acquisition, the Joint Applicants request expedited processing of this pendente lite exemption application.

Counsel: Holland & Knight, Anita Mosner, 202-419-2604, anita.mosner@hklaw.com for Aeko Kula / Squire Sanders, Edward Sauer, 202-626-6641, esauer@ssd.com for Aloha Airlines

http://www.alohaairlines.com/
http://www.saltchuk.com/aloha.aspx

Index


American Airlines, Inc.

OST-2007-0021 - Exemption and Allocation of Six Weekly Combination Frequencies - Chicago-Moscow

May 7, 2008

Application for Allocation for One Additional Weekly Frequency

Hereby applies for the allocation of one additional U.5.-Russia weekly combination frequency in order to operate daily service between Chicago and Moscow starting the week of May 3, 2009. On May 6, 2008, United Air Lines, Inc. applied for the allocation of seven weekly frequencies to operate Washington (IAD)-Moscow service starting October 26, 2008 (OST-2008‑0157).

American is separately answering United's application in OST-2008-0157, advising that we do not object, provided that American's request here for one additional frequency is simultaneously granted. Such allocations - seven to United and one to American - will leave seven weekly frequencies unallocated and available.

The Department's policy is to grant limited entry authority to carriers with firm service plans. See Notice of Action Taken, OST-2007-28057, June 29, 2007. American has firm plans to operate daily Chicago-Moscow service starting next spring. Our request is consistent with the public interest, and should be granted at the same time the Department acts in United's docket.

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

OST-1996-1672 - Northwest and KLM Third-Country Codeshare - Currently Granted 90-Day Dormancy Waiver

http://www.aa.com/

Index


Astraeus Limited

Order 2008-5-7
OST-2007-0096 - Exemption and Foreign Air Carrier Permit - EU-US Open-Skies

Issued March 6, 2008 | Served May 7, 2008

Final Order

By Order 2008-2-18, issued February 13, 2008, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions stated therein and award a foreign air carrier permit in the form attached to the Order and subject to the conditions attached thereto. We gave interested persons 21 days to file objections to the Order. We said that if no objections were filed, all further procedural steps would be deemed waived, and the Department would enter an order (subject to Presidential review under 49 U.S.C. §41307) which would make final the findings and conclusions of the Order.

No objections were received within the time period provided.

By: Paul Gretch

http://www.flystar.com/

Index


Blanket Route Integration Authority

Order 2008-5-4
OST-2005-22228 - Streamlining Regulatory Procedures for Licensing US and Foreign Carriers

Issued March 4, 2008 | Served May 7, 2008

Order Issuing Certificates - Bookmarked

We grant the request of each of the following applicants for a blanket route integration certificate of public convenience and necessity: Air Wisconsin Airlines Corporation; Alaska Airlines, Inc.; Atlantic Southeast Airlines, Inc.; ATA Airlines, Inc.; Cargo 360, Inc.; Chautauqua Airlines, Inc.; Comair, Inc.; Custom Air Transport, Inc.; Mesa Airlines, Inc.; North American Airlines, Inc.; Republic Airlines, Inc.; Shuttle America Corporation; Southern Air, Inc.; and World Airways, Inc.

The certificate issued to each applicant will be effective upon the service date of this order.

We defer action on the request of Freedom Airlines, Inc. for a blanket route integration certificate of public convenience and necessity.

We accept Air Wisconsin Airlines Corporation’s late-filed request for a blanket route integration certificate of public convenience and necessity.

By: Paul Gretch

Index


Delta Air Lines, Inc., Atlantic Southeast Airlines, Inc., Comair, Inc. and Czech Airlines

OST-2000-8207 - US-Czech Republic Open Skies Codesharing

May 7, 2008

Notice of Additional Codesharing

Hereby notify the Department that, beginning no earlier than 30 days from today, the carriers plan to display Delta’s designator code on flights operated by Czech Airlines between Prague and the following additional points:

Thessaloniki, Greece (SKG)
Tbilisi, Georgia (TBS)

Counsel: Sher & Blackwell, Allan Mendelsohn, 202-463-2508, amendelsohn@sherblackwell for Czech / Delta, Scott McClain, scott.mcclain@delta.com, 404-773-6514

http://www.delta.com/
http://www.czechairlines.com/

Index


Essential Air Service at Athens and Macon, Georgia

OST-2002-11348 - Athens
OST-2007-28671 - Macon


May 5, 2008

Re: Proposal of Pacific Wings

In response to Order 2008-3-21, Pacific Wings submits its bid for provision of EAS for Athens and Macon, Georgia.

Service Profile
Frequency
Annual Subsidy
Athens / Charlotte
2 round trips Monday thru Friday
1 round trip Saturday
1 round trip Sunday
$1,436,320.00
Athens / Atlanta
2 round trips Monday thru Friday
1 round trip Saturday
1 round trip Sunday
$1,051,386.00
Macon / Atlanta
4 round trips Monday thru Friday
3 round trips Saturday
3 round trips Sunday
$1,386,306.00

By: Pacific Wings, Greg Kahlstorf

May 5, 2008

Proposals of Vintage Props & Jets

Athens:

Option 1: Option #1 will give Athens, Georgia roughly 4 flights a day to Atlanta Hartsfield-Jackson International Airport, with service reductions on the weekend. First year service pattern will require a subsidy amount of $1,793,189; per departure $718.43; and per passenger $117.39. Second year subsidy requirement is $1,840.277; per departure $737.29; and per passenger $117.03

Option 2: Our second option allows the Department to continue servicing Athens with a minimal frequency to allow connectivity and is focused on maintaining passenger boardings. VPJ is proposing roughly 3 flights a day with service reductions on the weekends (or midweek). First year service patter will require a subsidy amount of $1 ,519,661; per departure $801.10; and per passenger $132.85. Second year subsidy requirement is $1,537,444; per departure $810.48; and per passenger $130.51.

Athens, Georgia Options #1 or Option #2 must be selected along with Option #1, #2, or #3 for Macon, Georgia. All bids are based on 9 passenger Beechcraft King Air 100/200 equipment; with 2 pilots and luggage pod.

Macon:

Option 1: Option #1 will give Macon, Georgia roughly 7 flights a day to Atlanta Hartsfield-Jackson International Airport, with service reductions on the weekend and midweek. Management feels offering "shuttle-type" frequency will build the Macon market & help reduce the overall subsidy per passenger. First year service pattern will require a subsidy amount of $2,521,373; per departure $601.29; and per passenger $98.25. Second year subsidy requirement is $2,679,391; per departure $638.97; and per passenger $101.42.

Option 2: Option #2 will give Macon, Georgia roughly 6 flights a day to Atlanta Hartsfield-Jackson International Airport, with service reductions on the weekend. First year service pattern will require a subsidy amount of $2,317,484; per departure $627.35; and per passenger $104.04. Second year subsidy requirement is $2,448,712; per departure $662.87; and per passenger $106.74.

Option 3: Our third option allows the Department to continue servicing Macon with a minimal frequency to allow connectivity and is focused on maintaining passenger boardings. VPJ is proposing roughly 5 flights a day with service reductions on the weekends (or midweek). First year service patter will require a subsidy amount of $2,013,021 ; per departure $672.08; and per passenger $113.15. Second year subsidy requirement is $2,105,656; per departure $703.01; and per passenger $114.87.

Macon, Georgia Options #1, #2, or #3 must be selected along with Option #1 or #2 for Athens, Georgia. All bids are based on 9 passenger Beechcraft King Air 100/200 equipment; with 2 pilots and luggage pod.

By: Vintage Props & Jets, Nathan Vallier, 754-422-2535, nate@vpj.com


May 5, 2008

Proposal of Wings Air - Bookmarked

Wings Air's proposal requires subsidy for the first year in the amount of $1,615,985 in the Athens-Atlanta market and $542,710 in the Macon-Atlanta market, and for the second year in the amount of $853,823 in the Athens-Atlanta market and zero in the Macon-Atlanta market. These subsidy rates are markedly lower than existing rates, an advantage attributable to "rightsizing" of equipment and type of operation to these very short haul markets.

Concurrently with submission of this EAS proposal, Wings Air has applied to the Department for a Commuter Air Carrier Authorization as required to engage in scheduled service. Since 2005, Wings Air has been based in Lawrenceville, Georgia, and has developed a successful business targeted to charter customers traveling frequently between the Atlanta area and resort destinations such as Charleston/Kiawah Island, South Carolina, Destin, Florida, and St. Simon's Island, Georgia, as well as providing a variety of other charter flights. The carrier will utilize aircraft from its existing fleet of five PA-31-350's to serve Athens and Macon as proposed here.

Wings Air's operating plan will enable it to provide a total of 54 seats per day in each direction spread over six departures in the Athens market (i.e., a total of 12 one-way sectors per day), and a total of 63 seats per day in each direction spread over seven departures in the Macon market (i.e., a total of 14 one-way sectors per day). These service levels are appropriate to the historical passenger data identified by the Department in its order re-soliciting proposals with reasonable provision for traffic growth.

Counsel: Garofalo Goerlich, Aaron Goerlich, 202-776-3974, agoerlich@ggh-airlaw.com

OST-2008-0154 - Wings Air's Athens/Macon-Atlanta Commuter Authority Application

Index


Essential Air Service at Kearney, North Platte and Scottsbluff, Nebraska

Order 2008-5-6
OST-1996-1715 - Kearney, NE
OST-1999-5173 - North Platte, NE
OST-2003-14535 - Scottsbluff, NE

Issued and Served May 7, 2008

Order Requesting Proposals | Word

By this order, the Department is requesting proposals from carriers interested in providing essential air service at Kearney, North Platte, and Scottsbluff, Nebraska, for the two-year period beginning November 1, 2008, with or without subsidy. Proposals are due June 20, 2008.

With specific respect to Kearney, North Platte, and Scottsbluff, we expect proposals to Denver or another suitable hub with connections to the national air transportation system with 15-seat or larger, pressured aircraft, with three nonstop round trips a day (18 per week).

Great Lakes Aviation, Ltd. was selected to provide essential air service with subsidy support at Kearney, North Platte, and Scottsbluff, for two years, beginning when Air Midwest, Inc. d/b/a US Airways Express, inaugurated service at Grand Island and McCook, which it did on October 29, 2006, at a total annual subsidy of $2,393,305 ($897,142 for Kearney; $976,026 for North Platte; and $520,137 for Scottsbluff). Each community currently receives three nonstop round trips to Denver each weekday and weekend (18 total round trips per week) with Beech 1900-D aircraft.

By: Todd Homan

http://www.cityofkearney.org/index.asp?ID=21 - Kearney Municipal Airport
http://www.northplatteairport.com/ - North Platte Regional Airport - Lee Bird Field
http://www.flyscottsbluff.com/ - Western Nebraska Regional Airport

Index


Essential Air Service at Oil City, Pennsylvania

OST-1997-2523

April 25, 2008

Re: City of Oil City in Support of Gulfstream International Airlines Option 2

During the past eleven months, reliable air service through the Venango County Regional Airport has suffered due to the downsizing of the airport's current carrier in anticipation of its leaving the East Coast EAS market. On behalf of the City of Oil City, I urge you to support Gulfstream International Airlines bid Option 2.

By: Mayor Sonja Hawkins

Index


Nondiscrimination on the Basis of Disability in Air Travel

OST-2004-19482 - Nondiscrimination on the Basis of Disability in Air Travel
OST-2005-22298 - Disability in Air Travel - Medical Oxygen and Portable Respiration
OST-2006-23999 - Accommodations for Individuals who are Deaf, Hard of hearing or Deaf-Blind

April 28, 2008

Final Rule (Original) - Bookmarked - 12MB

The Department of Transportation is amending its Air Carrier Access Act rules to apply to foreign carriers. The final rule also adds new provisions concerning passengers who use medical oxygen and passengers who are deaf or hard-of-hearing. The rule also reorganizes and updates the entire ACAA rule. The Department will respond to some matters raised in this rulemaking by issuing a subsequent supplemental notice of proposed rulemaking.

By: Mary Peters

Index


Ronald Reagan Washington National Airport Slot Exemptions

Order 2008-5-9
OST-2000-7182

Issued and Served May 7, 2008

Order Denying Motion to Amend AirTran's Slot Exemptions | Word

By this order, the Department is denying AirTran Airways, Inc.’s motion to vary the markets served by two of its allocated slot exemptions at Ronald Reagan Washington National Airport on a seasonal basis. AirTran must continue to provide year-round, nonstop service between DCA and Fort Myers, Fort Lauderdale, or West Palm Beach, Florida, or lose the allocated slot exemptions.

AirTran is correct in asserting that it is a limited incumbent at DCA, and that a grant of its application would not violate the five specific restrictions in section 41714(d). However, as to its specific claims to meet the paramount “exceptional circumstances” requirement of that section, there are numerous situations in which there is no (or competitive) low fare service available to a particular medium hub airport from DCA. AirTran offers justification of the competitive value of its entrance onto a monopoly nonstop route, but otherwise offers no substance to support the rather remarkable claim that without the seasonal shift in the market served it will be “unable to best serve the public interest.” It also does not adequately acknowledge that it will begin serving the DCA-Milwaukee market in May, thereby eliminating it as a monopoly market. Further, “improved ability to compete” is not exceptional, as any carrier could make such an assertion.

The Department recognizes the importance of low-fare competition and the current difficulties faced by the airline industry; however, we cannot use those factors as justification to deviate from the clear direction of the statute. Therefore, based on all the above, the Department will deny AirTran’s motion.

By: Michael Reynolds

Index


Santa Barbara Airlines, C.A.

OST-2000-8448 - Exemption - Venezuela-US via Colombia All-Cargo

May 6, 2008

Reply of Santa Barbara Airlines to Answers of Amerijet International and American Airlines

Amerijet's claim that it is "barred from the U.S.-Valencia market" is a serious allegation but it is not true. Santa Barbara noted in its filing dated April 11, 2007 in this Docket that the Valencia Airport Authority, for cause not known to Santa Barbara, revoked the concession held by the Venezuelan company "ISCAR" to provide ground handling services at Valencia. ISCAR has been the Venezuela representative of Amerijet. The action by the Airport Authority did not affect Amerijet's licensed authority issued by INAC to fly between the U.S. and Valencia. U.S. flag all-cargo carriers, Centurion Air Cargo and others, continue to operate to Valencia and so can Amerijet. The unrelated third-party problems of ISCAR are no basis to deny Santa Barbara's application to provide combination service to Valencia. Amerijet noted in its Answer that its agent in Venezuela has asked a Venezuela court to review the matter. Clearly a third party law suit in Venezuela is not a basis for delay or denial of Santa Barbara's application. Amerijet's position is without merit and should be rejected.

American would have the Department delay approval of Santa Barbara's application until INAC has acted favorably on American's application to operate between Miami and Valencia. Santa Barbara has not opposed the application of American pending before INAC and has and will support American consistent with Santa Barbara's interests. But it asks that the Department take into consideration what the real public interest issue is - that of the traveling public and the need for direct service in the Valencia-Miami market. It would not be in the public interest to delay approval of Santa Barbara's application pending resolution of the American application. It would be harmful and inconsistent with the provisions of the bilateral agreement itself.

Santa Barbara further asks that the Department look at the real differences between Santa Barbara and American. Santa Barbara is a small but growing Venezuelan flag air carrier. It has a limited route structure and is just now in the process of recovering from the years of being deprived of serving the United States because of limitation imposed by Venezuela's classification as a Category 2 country by the Federal Aviation Administration. American, in contrast, is a long established, very, very large U.S. flag air carrier that has enormous resources and serves markets throughout the world. The impact that the delay or denial of Santa Barbara's request has on it as it tries to emerge from years of operating under the wet-lease restrictions imposed as a result of Venezuela's previous status as a Category 2 country far out weigh the impact on American, which carrier is a dominating presence in international markets including Venezuela markets. Santa Barbara has a lot of catching up to do and delaying its entry into the Valencia market will cause it harm in addition to not being in the public interest for reasons stated.

Counsel: Lawrence Wasko, 703-356-8010

Index


Scandinavian Airlines System

Order 2008-5-5
OST-2007-0030 - Exemption and Amended Foreign Air Carrier Permit - EU-US Open-Skies

Issued March 6, 2008 | Served May 7, 2008

Final Order

By Order 2008-2-17, issued February 12, 2008, we directed all interested persons to show cause why we should not make final our tentative findings and conclusions stated therein and award a foreign air carrier permit in the form attached to the Order and subject to the conditions attached thereto. We gave interested persons 21 days to file objections to the Order. We said that if no objections were filed, all further procedural steps would be deemed waived, and the Department would enter an order (subject to Presidential review under 49 U.S.C. §41307) which would make final the findings and conclusions of the Order.

No objections were received within the time period provided.

By: Paul Gretch

http://www.flysas.com/

Index


United Air Lines, Inc.

OST-2008-0157 - Frequency Allocation - US-Russia

May 7, 2008

Answer of American Airlines

American does not object to United's request, provided that the Department simultaneously grants our application, filed today in OST-2007-0021, for allocation of one additional frequency for Chicago-Moscow service effective next spring.

In its application, United states that "according to information from the Department, there are currently 15 frequencies still remaining for allocation. The grant of United's request will, therefore, leave an additional eight frequencies unallocated."

There are ample frequencies available to meet the requests of American and United, and the Department should simultaneously grant both applications.

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

Index



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