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OST Docket Filings for March 17, 2017


Applications and Renewals:

JetBlue and Royal Air Maroc - US-Morroco Blanket Codesharing Renewal

Answers and Replies:

EAS at Tatitlek, AK - Proposal of Alaska Air Transit / DOT Request for Community Comments

PT Garuda Indonesia - Surreply of Kalitta Air

Notices of Action Taken:

Alaska Air, Horizon Air and Cathay Pacific - Hong Kong-US Codesharing Renewal

Notices and Orders:


Alaska Airlines, Inc. and Horizon Air Industries, Inc. and Cathay Pacific Airways Limited

OST-2010-0227 - Statement of Authorization - Hong Kong-US Codesharing

Filed March 3, 2017 | Issued March 17, 2017

Notice of Action Taken

Exemption - Scheduled foreign air transportation of persons, property, and mail between Hong Kong and 25 US codeshare points beyond Cathay Pacific’s US and Canadian gateways pursuant to its codeshare agreement with Alaska and Horizon.

  • The Government of the Hong Kong Special Administrative Region of the People’s Republic of China may, at its discretion, change the code-share points in the United States on not less than 30 days’ notice in writing to the Government of the United States. By letter dated April 28, 2011, the HKSAR confirmed that it has selected the following 25 code-share points under the Agreement and MOU: Atlanta, Boston, Charlotte, Cleveland, Columbus, Dallas/Fort Worth, Denver, Detroit, Houston, Kansas City, Las Vegas, Miami, Minneapolis/St. Paul, New Orleans, Orlando, Philadelphia, Phoenix, Pittsburgh, Portland, Raleigh-Durham, Salt Lake City, San Diego, Seattle, St. Louis, and Washington/Baltimore.
  • We note that Cathay Pacific’s previous exemption authority in this docket lapsed. See Notice of Action Taken issued December 17, 2014, in the present docket. Consequently, the associated statements of authorization of Alaska and Horizon ceased to be in effect. See Notice of Action Taken issued September 21, 2010, in the present docket, Appendix B, paragraph (a). Our approval of the present joint application does not serve to insulate the carriers from any enforcement action which may be taken by the Assistant General Counsel for Aviation Enforcement and Proceedings.

Blanket Statement of Authorization - Alaska and Horizon request statements of authorization to display Cathay Pacific’s “CX*” designator code on flights operated by Alaska or Horizon between Cathay Pacific’s US and Canadian gateways, on the one hand, and 25 US codeshare points, on the other hand.

By: Brian Hedberg


Essential Air Service at Tatitlek, Alaska


March 15, 2017

Proposal of Alaska Air Transit

Proposal A is the continuation of AAT's existing EAS service schedule. It provides two weekly EAS flights to Tatitlek, Alaska, with optional flag stops in Chenega Bay. This service would continue to utilize AAT's newer model nine-passenger Grand CaravanEX turboprop aircraft. AAT would continue its current pricing for Tatitlek residents, currently $120 per seat fare, and 55¢ per pound for freight.

Proposal B is for twice weekly direct non-stop scheduled service to Tatitlek with no Chenega Bay flag stop option, using one of its nine seat Grand CaravanEX aircraft.

AAT has successfully operated the Proposal A schedule under its existing EAS contract since October, 2015, including one additional non-EAS flight per week, for a total of three weekly flights.

By: Daniel Owen

March 17, 2017

DOT Request for Community Comments

The Department issued Order 2017-2-3, on February 9, 2017, requesting proposals from air carriers interested in providing EAS at your community for a new term beginning October 1, 2017. in response to that Order, Alaska Air Transit, the incumbent, was the only air carrier to submit a proposal. Nonetheless, we want to give you an opportunity to submit any formal comments for the record that you may have regarding AAT’s various service options that have been proposed. I request that you review the proposal and submit any comments you may have as soon as possible, but no later than April 26, 2017.

By: Scott Faulk, 202-366-9967 - Tatitlek Airport


JetBlue Airways Corporation and Royal Air Maroc

OST-2015-0046 - Statement of Authorization and Exemption - US-Morroco Blanket Codesharing

March 17, 2017

Application for Renewal of Exemption Authority

Royal Air Maroc hereby applies for renewal of its existing exemption authority to engage in in scheduled foreign air transportation of persons, property and mail from points behind Morocco, via Morocco and intermediate points to points in the United States, and beyond, pursuant to its codeshare arrangement with JetBlue Airways Corporation. The authority for which RAM is requesting renewal was initially granted on March 25, 2015, and is scheduled to terminate on March 25, 2017. RAM requests that its exemption authority be renewed for an additional two-year period.

RAM is a flag carrier of Morocco and currently operates scheduled service between Casablanca and New York (JFK) pursuant to authority contained in its Foreign Air Carrier Permit, issued February 12, 1975, by Order 1975-2-61. RAM also operates scheduled service between Casablanca and Washington, DC (IAD) pursuant to exemption authority granted by Notice of Action Taken December 17, 2015, in Docket OST-2015-0262. RAM's service to New York began in 1975 and has operated continuously since that time, and it began Washington, DC service in September 2016.

Counsel: Garofalo Goerlich, Don Hainbach, 202-776-3970


PT Garuda Indonesia (Persero) Tbk.

OST-2017-0030 - Exemption and Amended Foreign Air Carrier Permit - Jakarta-Los Angeles via Tokyo (Narita)

March 17, 2017

Surreply of Kalitta Air

As expected, Garuda belabors the point that the DGCA's denial noted in Kalitta's answer was seven long years ago. The carrier would have the Department believe that everything is different now, and the Indonesian DGCA would not hesitate to grant another application by a US carrier for fourth freedom cargo authority. However, Garuda has offered no evidence that there have been any changes in Indonesian law or policy that would alter the result.

Garuda concedes that Indonesia has still not ratified the Open Skies bilateral agreement that was signed back in 2004. There is no explanation for this long delay, or evidence that ratification is forthcoming. Nor is there any evidence that the law under which the DGCA denied Kalitta's application in 2010 has been repealed. Rather, it is apparently still on the books. Garuda baldly asserts that the "the domestic law referenced is not a bar to foreign cargo carriers operating charters to and from Indonesia because, pursuant to this law, authority may be granted by permission of the Ministry of Transportation." We are not in a position to opine on the correct interpretation of this "domestic" Indonesian law; however, in 2010-2011 it was made abundantly clear by various levels of the Indonesian government to representatives of the US government at the highest levels that the DGCA's hands were tied - the law forbad granting of fourth freedom cargo charters to non-Indonesian air carriers. Garuda has presented no reason to believe that this law would be interpreted differently now.

If the Indonesian legal landscape has in fact changed, and the DGCA is now in a position to apply the provisions of the Open Skies bilateral as they had previously agreed, its government should provide this commitment formally to the US government through diplomatic channels. There has, however, been no attempt to provide assurances by the DGCA itself, even in the form of a reciprocity statement under 14 CFR §212.10(c)(1).

Kalitta Air has no interest in impeding Garuda's plans to reinstitute US scheduled passenger service. However, Kalitta reiterates its position that until the Department is fully satisfied that US air carriers will receive the benefits guaranteed to them under the 2004 bilateral, it should not grant entirely new and broad authority to an Indonesian carrier. We trust that the Indonesian government will take swift action to make the necessary formal assurances that the incident of 2010 will not repeat itself.

Kalitta Air therefore requests that the Department deny Garuda's application for an exemption and amended foreign air carrier permit authority, or defer action on it until the necessary governmental assurances have been received.

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


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