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OST Docket Filings for December 23, 2014

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December 30, 2014 8:37 AM Pacific Time

Applications and Renewals:

Alitalia and Alitalia Societa - Supplement No. 2 (EU-US Open-Skies)

Ben Edelman v SriLankan Airlines - Website Tax Complaint

China Eastern - Beijing/Shanghai-Saipan/San Francisco/Los Angeles Renewals

Fiji Airways - Fiji-Apia-Honolulu Renewal

UPS - Los Angeles-Guadalajara All-Cargo Renewal

Volaris - Toluca-Las Vegas Renewal

Answers and Replies:

Asiana Airlines - Polling Results (Seoul-Los Angeles/San Francisco Codesharing with Etihad Airways)

EAS at Kingman, AZ - Comments of City of Kingman

Silk Way West - Surreply of Kalitta Air (Baku-Hong Kong-Chicago-Hong Kong-Luxembourg-Baku)

Southwest - Comments of Southwest Airlines Pilots' Association (Houston-Cancun/Mexico City/Puerto Vallarta/San Jose del Cabo) / Comments of Southwest Airlines Pilots' Association (US-Belize)

Notices of Action Taken:

None

Notices and Orders:

DCA Slots - Transfer of Within-Perimeter Slots due to Southwest Merger with AirTran

Delta - Enforcement Proceeding and Proposed Assessment of Civil Penalties (Codeshare Disclosure)

EAS at Adak, AK - Requesting Proposals

EAS at Mason City and Fort Dodge, IA - Revising Subsidy

North American Airlines - Revoking Foreign Certificates




Air Pacific Limited d/b/a Fiji Airways

OST-2009-0145 - Exemption - Fiji-Apia-Honolulu

December 19, 2014

Application for Renewal of Exemption

On January 9, 2014, the Department renewed Fiji Airways’ exemption authority in this docket to perform “scheduled air transportation of persons, property and mail between Nadi, Fiji and Honolulu, Hawaii via Apia, Samoa.” Fiji Airways' exemption authority expires on January 9, 2015. By this application, Fiji Airways seeks renewal of its exemption authority to continue operating these services.

Counsel: Zuckert Scoutt, Malcolm Benge, 202-973-7904

http://www.airpacific.com/

Index




Alitalia - Compagnia Aerea Italiana S.p.A. and Alitalia - Societa Aerea Italiana S.p.A.

OST-2014-0210 - Exemption and Foreign Air Carrier Permit - EU-US Open-Skies

December 23, 2014

Supplement No. 2

On December 15, 2014, the Joint Applicants supplemented their Joint Application with additional information and documentation, including, but not limited to, Alitalia Societa's draft air operator certificate and operating license issued by Ente Nazionale per l'Aviazione Civile.

The Joint Applicants hereby further supplement their Joint Application as follows:

  • Alitalia Societa's final AOC and operating license, with an effective date of January 1, 2015, issued by ENAC for an indefinite duration, are attached hereto as Exhibit A.
  • In their December 1, 2014 Joint Application, the Joint Applicants requested that a blanket statement of authorization previously issued to Alitalia for the display of the DL * code of Delta Air Lines, Inc. in Docket OST-2001-10417 be transferred and re-issued to Alitalia Societa. See Joint Application at 4. The correct date corresponding to the underlying Notice of Action Taken is December 23, 2008, not January 12, 2009, as originally stated in the Joint Application.

Counsel: Zuckert Scoutt, Jonathon Foglia, 202-298-8660

https://www.alitalia.com/

Index




Asiana Airlines, Inc.

OST-2014-0225 - Blanket Statement of Authorization - Seoul-Los Angeles/San Francisco Codesharing with Etihad Airways

December 23, 2014

Re: Polling Results

We have polled the air carrier representatives on the attached service list regarding the above-referenced Application and received no objection. Accordingly, we respectfully request expedited consideration of this Application.

Counsel: Covington & Burling, Brian Smith, 202-662-5090

http://kr.flyasiana.com/

Index


Benjamin Edelman v SriLankan Airlines Limited

OST-2014-0230 - Carrier-Imposed Surcharges as Tax Complaint

December 23, 2014

Complaint of Benjamin Edelman

On December 22, 2014, I used the SriLankan web site, srilankan.com, to quote ordinary paid coach round-trip travel from New York JFK to Colombo, Sri Lanka. I found that the SriLankan site misrepresented carrier-imposed surcharge as “tax.”

On information and belief, there is no “tax” of $587.60 on this route. Clicking the label “taxes” and expanding the window, I received an itemization describing a “Surcharge” of $500 (which is not a “tax” and is not properly include in “tax”), along with other charges that I believe are indeed taxes. I conclude that SriLankan overstates the amount of tax by $500 per passenger on this route.

SriLankan’s statement of “tax” is literally false.

It is unfair and deceptive to characterize a charge as “tax” when it is set by a carrier of its own volition and need not be remitted to any government, airport, or similar authority. Such false statements provide consumers with inaccurate information as to the actual cost of their travel.

By: Ben Edelman

OST-2013-0214 - Carrier-Imposed Surcharges as Tax Complaint Against Air Europa
OST-2013-0215
 - Carrier-Imposed Surcharges as Tax Complaint Against Middle East Airlines
OST-2013-0216 - Carrier-Imposed Surcharges as Tax Complaint Against TAROM
OST-2014-0156 - Carrier Imposed Surcharges as Tax Complaint Against Virgin Atlantic

Index




China Eastern Airlines Corporation Limited

OST-2004-17665 - Exemption - Shanghai/Saipan-Northern Mariana Islands
OST-2005-23074
- Exemption - Beijing and/or Shanghai-Los Angeles
OST-2012-0185
- Exemption - Beijing-Saipan
OST-2013-0079 - Exemption - China-San Francisco via Shanghai

December 23, 2014

Application for Renewal of Exemption Authority

China Eastern Airlines Corporation Limited asks that the Department renew its exemption authorizing it to conduct scheduled foreign air transportation of persons, property and mail (i) between Beijing, People's Republic of China and Saipan, Commonwealth of the Northern Mariana Islands; (ii) between Shanghai, People's Republic of China and Saipan, Commonwealth of the Northern Mariana Islands; (iii) between any point or points in the People's Republic of China and San Francisco, California, with all flights operating via Shanghai; and (iv) between any point or points in the People's Republic of China and Los Angeles, California with all flights operating via Shanghai and/or Beijing.

Absent renewal, China Eastern's exemption authority is scheduled to expire on January 9, 2015. China Eastern requests that DOT renew its exemption for a period of at least one year.

Counsel: Eckert Seamans, Evelyn Sahr, 202-659-6622

http://www.flychinaeastern.com

Index




Concesionaria Vuela Compania de Aviacion, S.A.P.I. de C.V. d/b/a Volaris

OST-2011-0031 - Exemption - Toluca-Las Vegas

December 23, 2014

Application for Renewal of Exemption

Volaris hereby requests renewal of the exemption authority granted to it by the Department of Transportation in the above-captioned docket to perform scheduled foreign air transportation of persons, property and mail between Toluca, Mexico and Las Vegas, Nevada. Volaris requests renewal of this exemption for a oneyear period.

Volaris is not currently operating nonstop to Las Vegas from Toluca, but requests renewal of its exemption for a one-year period so that service may be resumed without delay when appropriate.

Counsel: Squire Patton Boggs, Charles Donley, 202-626-6840

http://www.volaris.com.mx/

Index




Delta Air Lines, Inc.

OST-2014-0229 - Violations of 14 CFR Part 257 and 49 USC § 41712

Issued and Served December 23, 2014

Notice of Enforcement Proceeding and Proposed Assessment of Civil Penalties

The attached complaint of the Office of Aviation Enforcement and Proceedings alleges that Delta Air Lines, Inc. failed on a number of occasions to comply with the code-share disclosure requirement of 49 USC § 41712(c) and the Department's codeshare disclosure rule, 14 CFR 257.5(b). In doing so, Delta committed unfair and deceptive practices in violation of 49 USC § 41712, and violated the cease-and-desist provisions of a prior codeshare disclosure order.

In 2013 and 2014, the Enforcement Office conducted an investigation to determine whether Delta's telephone representatives were making code-share disclosures as required. The investigation revealed that Delta failed to make the full, required codeshare disclosures during eight separate telephone conversations.

Each failure to disclose code-share information as required constitutes a violation of 14 CFR 257.5(b) and 49 USC § 41712(c). Moreover, in each instance, Delta omitted material information in a manner that is likely to mislead prospective consumers who were acting reasonably under the circumstances. Accordingly, Delta committed eight acts of unfair practices or unfair methods of competition in violation of 49 USC § 41712(a).

This is not the first time that Delta has violated the code-share requirements of 14 CFR Part 257. Delta has been the subject of a consent order involving code-share disclosures with respect to online listings (not oral communications). On July 9, 2010, the Department issued a consent order against Delta for failing to disclose code-share information as required. Delta Air Lines, Inc. and Northwest Airlines, Inc., DOT Order 2010-7-4, Docket OST-2010-0005. The Department found that Delta failed to submit code-share information to the Official Airline Guide, and that this failure resulted in code-share information being omitted from online listings of Delta codeshare flights. In mitigation, Delta stated that it is "committed to strict compliance with the disclosure requirements of Part 257." Delta agreed to the assessment of $80,000 in civil penalties, and agreed to cease and desist from future similar violations of Part 257 and 49 USC § 41712. Each failure to comply with the 2010 consent order constitutes a violation of a Department order, subjecting Delta to separate civil penalties.

Based on the investigation undertaken, the Enforcement Office believes that Delta has violated 14 CFR Part 257, 49 USC § 41712, and the cease-and-desist provisions of DOT Order 2010-7-4, and that an investigation of the alleged violations is in the public interest. Accordingly, pursuant to Rule 407 of the Department's Rules of Practice, 14 CFR 302.407, by this notice and complaint we are instituting a formal enforcement proceeding to investigate the allegations set forth in the attached complaint. The Assistant General Counsel for Aviation Enforcement and Proceedings seeks an assessment of civil penalties in the enforcement proceeding instituted by this notice. Under Rule 407(d) ofthe Department's Rules of Practice, 14 CFR § 302.407(d), Delta is notified that it may be liable for civil penalties of $660,000, reflecting violations of 14 CPR Part 257 and 49 USC § 41712, and the cease-and-desist provisions of Consent Order 2010-7-4.

By: Blanke Workie

http://www.delta.com/

Index


Essential Air Service at Adak, Alaska

Order 2014-12-13
OST-2000-8556

Issued and Served December 23, 2014

Order Requesting Proposals

By this Order, the Department is requesting proposals from carriers interested in providing Essential Air Service at Adak, Alaska, for a new contract period, beginning October 1, 2015, with or without subsidy. Carriers should file their proposals no later than February 11, 2015.

With respect to Adak, the Department expects proposals consisting of service consistent with what the community currently receives, namely two nonstop round trips per week to Anchorage with large jet aircraft, or more frequent service with smaller aircraft to a suitable regional hub airport.

By: Todd Homan

http://en.wikipedia.org/wiki/Adak_Airport - Adak Airport

Index




Essential Air Service at Fort Dodge and Mason City, Iowa

Order 2014-12-15
OST-2001-10682 - Mason City
OST-2001-10684 - Fort Dodge

Issued and Served December 23, 2014

Order Revising Subsidy

By this Order, the Department is revising the Essential Air Service annual subsidy rate for Multi-Aero Inc. d/b/a Air Choice One at Mason City, Iowa, from February 23, 2015, through October 31, 2016, from an annual subsidy of $4,290,533 to $3,715,953.

By: Todd Homan

http://www.flymcw.com/ - Mason City Municipal Airport
http://www.fortdodgeiowa.org/department/?fDD=5-0 - Fort Dodge Regional Airport

Index


Essential Air Service at Kingman, Arizona

OST-1996-1899

December 14, 2014

Comments of City of Kingman

The City of Kingman supports the Kingman Airport Authority, Inc. objection:

  • Passenger enplanements cannot reach 10 per day when less than 4 seats per day are available.
  • Passenger confidence in local airline service will not be achieved when 25% of the flights are cancelled due to federal mandates.
  • It is difficult to produce FY 2015 enplanement numbers if the EAS Program is terminated in Kingman April 2015.
  • The Kingman Airport Authority, Inc. continues to work with Great Lakes Airlines addressing issues contributing their decline in enplanements. Issues however, are primarily federal in which the community has limited input.
  • As a community, it is extremely difficult to implement correction efforts when the US DOT, the Program Manager, issues in November an Order to Show Cause to Terminate the EAS Subsidy April 30, 2015 when only 60 days prior there was an Order Granting Waiver extending the data collection period until September 30, 2015.

This ever-growing cloud of uncertainty of the availability of air service adversely influences customer choices and participation. As a growing community with a significant industrial and manufacturing base located on the Kingman Regional Airport, local air service will become an increasing priority. I urge you to reconsider any potential termination of service by helping work through conflicting and diametric policies that seem to result in only unintended consequences for struggling economies.

By: Mayor Richard Anderson

http://www.kingmanairportauthority.com/ - Kingman Airport

Index




North American Airlines, Inc.

Order 2014-12-17
OST-1999-5998 - New York-Guyana
OST-2001-9319 - US- Dominican Republic
OST-2005-22228 - Streamlining Regulatory Procedures for Licensing US and Foreign Carriers

Issued July 31, 2014 | Served December 23, 2014

Order Revoking Foreign Certificates

By Order 2014-7-21, issued July 31, 2014, we revoked the Section 41102 certificate of public convenience and necessity authorizing North American Airlines, Inc. to engage in interstate air transportation of persons, property and mail.

By this order, we are revoking the company’s companion foreign certificates and blanket route integration authority. Instead of repeating our findings and conclusion in Order 2014-7-21, we incorporate them here by reference.

By: Todd Homan

OST-2014-0123 - Revocation of Certificate Authority

http://www.flynaa.com

Index




Ronald Reagan Washington National Airport Within-Perimeter Slot Exemptions

OST-2000-7182

Served December 23, 2014

Notice of Transfer of Within-Perimeter Slots due to Southwest Airlines' Merger with AirTran Airways

This Notice updates the record concerning slot exemptions issued to AirTran Airways Inc.

Prior to its 2011 acquisition by Southwest Airlines Co., AirTran held six within-perimeter slot exemptions at Ronald Reagan Washington National Airport under the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century and the Vision 100-Century of Aviation Act. AirTran utilized these exemptions to provide two daily round trips between DCA and Atlanta and one daily round trip between DCA and Fort Myers, Florida.

The Department had also granted an exemption under 49 USC 41714(d) to AirTran to operate two slots, used for service to Atlanta, at new times (a slot slide). The exemption pertaining to those slots remains in effect for Southwest. See Order 2008-3-25 (March 28, 2008), Docket OST-2003-15968.

Since 2011, Southwest has been working to complete the operational its merger with AirTran. As permitted by 49 USC 41714(j), the DCA exemptions that had been awarded to AirTran are now held and operated by Southwest, under the same terms and conditions.

By: DOT

Index




Silk Way West Airlines

OST-2014-0111 - Exemption and Foreign Air Carrier Permit - Azerbaijan-US Scheduled and Charter All-Cargo

December 22, 2014

Surreply of Kalitta Air

The real point of contention in this lengthy exchange of pleadings still remains clear, despite Silk Way's rhetoric: the "cargo handling fee" charged to US carriers for ad hoc operations over Baku, outside the established contracts in which Silk Way is a participant, is grossly out of proportion to the very reasonable rate charged under those contracts. This makes independent ad hoc charters completely non-competitive. Silk Way's attempts to minimize the significance of this difference only serve to amplify it.

Silk Way chides Kalitta for comparing the Baku cargo handling fee with landing fees at va rious US airports, saying that Kalitta is trying to mislead the Department with an inappropriate comparison . However, it was Silk Way that made this comparison in its November 5 filing . It said that the extreme discrepancy in handling fees at Baku are nothing more than the ordinary difference in landing fees experienced by "signatory" versus "non-signatory" carriers in the United States. Kalitta's response showed that this argument is specious. In fact, however, the comparison is not irrelevant. While "signatory" carriers naturally enjoy lower landing fees than do transient carriers, the difference is not dramatic, whereas the discrepancy in cargo handling fees at Baku is more than six-fold.

While Silk Way emphasizes that the EUR 0.50 (US$0.64) per kg. handling rate is "a published fee, but is subject to negotiation based upon airport use ," this is of no relevance to a US carrier that wishes to operate occasional charters at Baku, outside of an arrangement with Silk Way. The examples Silk Way gives of carriers that enjoy preferred rates are all scheduled carriers that operate more than daily service at the airport - hardly a meaningful comparison. Silk Way also claims that though Kalitta was charged the published 64-cent rate for its partial cargo load on a flight operated in April , had it operated with a full 100,000 kg . load , this rate "would have been discounted 50% off of the published rates, had [Kalitta] simply requested it. " Kalitta has no reason to accept this claim apart from Silk Way's say-so; the lower rates cited by the carrier all pertain to frequency of operation , not the size of the load. In fact, BCT quoted Kalitta only the published rate, did not indicate that any discount was available, and never even asked how large the planned load was. And in any event, a volume discount does nothing to make partial planeload charters competitive.

Kal itta fully understands that airports offer better rates on a variety of charges for carriers that are regular users. That "volume discount," however, is not what is represented by the royalty charged by the Baku Cargo Terminal.

Counsel: Cozen O'Connor, Mark Atwood, 202-463-2513

Index




Southwest Airlines Co.



OST-2014-0222 - Exemption - Houston-Cancun/Mexico City/Puerto Vallarta/San Jose del Cabo

December 23, 2014

Comments of the Southwest Airlines Pilots' Association

SWAPA strongly supports Southwest Airline’s application for exemption to engage in scheduled foreign air transportation between Houston Hobby International Airport and Cancun, Mexico City, Puerto Vallarta and San Jose del Cabo, Mexico. SWAPA believes that this represents an opportunity to bring the “Southwest Effect” to several major markets that lack effective low fare competition.

The US-Mexico market is currently artificially constrained by the archaic US Mexico Air Transport Agreement. As such low cost carrier penetration significantly lags the domestic US market. While we applaud the US Department of Transportation and Department of State for recently negotiating a new treaty that will remove virtually all artificial constraints, until that treaty is ratified and in force, this case is about how to ensure the public the greatest gains within the context of the existing rules.

By: Paul Jackson, 800-969-7972




OST-2014-0223 - Exemption - US-Belize Scheduled Passenger

December 23, 2014

Comments of the Southwest Airlines Pilots' Association

SWAPA strongly supports Southwest Airline’s application for exemption to engage in scheduled foreign air transportation between points in the United States and points in Belize. The US-Belize market currently lacks low fare competition with service to the US only provided by American, Delta, and United Airlines.

By: Paul Jackson, 800-969-7972

Index





United Parcel Service Co.

OST-2000-7282 - Exemption - Los Angeles-Guadalajara All-Cargo

December 19, 2014

Application for Renewal of Exemption

United Parcel Service Co. hereby applies pursuant to 49 USC § 40109 for renewal of an exemption from 49 USC § 41101, authorizing UPS to provide certain scheduled non-stop all-cargo service between Los Angeles, California and Guadalajara, Mexico.

UPS currently provides the service and has been providing the service since the original grant of the exemption.

Counsel: Holland & Knight, Anita Mosner, 202-419-2604

http://www.ups.com/

Index


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