OST-1997-2787

OST-1997-2787

Pan American Corporation and Carnival Air Lines, Inc. (Transfer of Route Authority)

OST-97-2787 | August 6, 1997

Joint Application for Approval of Route Authority Transfer

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After consummation of the acquisition, Pan Am would have common control through stock ownership of Carnival and Pan Am World, both of which hold interstate and international route authority for persons, property and mail. Pan Am World and Carnival would be operated as independent airlines pending finalization of plans for the integration of the two companies. The only international route authority held both by Carnival and Pan Am World involves New York-Santo Domingo, and Ft. Lauderdale/ Miami/New York-Nassau; neither the Dominican Republic nor the Bahamas are limited entry markets. Moreover, other international markets authorized for service by Carnival -Guyana, Haiti and Venezuela -- are open to entry by U.S. airlines. The only restricted market in Carnival's Route 574 is San Juan-Toronto, and those restrictions will be lifted early next year.

Route Authority | Service List

Counsel: Boros Garofalo, Aaron Goerlich, 202-822-9070 for Carnival / Verner Liipfert, William Evans, 202-317-6030 for Pan Am

Pan American Corporation and Carnival Air Lines, Inc. (Route Transfer)

OST-97-2787 | September 30, 1997

Supplement No. 1 to Joint Application for Approval of Route Authority Transfer

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Pan Am advises the Department that neither it nor Pan Am World Airways, Inc., has any objection to Carnival changing its name to "Pan American Airways Corp." or to using the name "Pan American Airways Corp." in holding out and performing authorized air transportation.

Attachment: Route Authority of Carnival

Counsel: Boros Garofalo, Aaron Goerlich for Carnival / Verner Liipfert, William Evans for Pan Am

Pan Am Corporation and Carnival Air Lines, Inc. (Transfer of Route Authority, Exemptions, Slot Restrictions at JFK)

OST-97-2787 | OST-97-2786 | OST-97-2885 | October 7, 1997

Motion for Filing of "Unauthorized Documents" / Opposition of Richard C. Bartel

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We oppose the exemptions because the granting of such exemptions and allowance of route transfers would put the DOT in a position of facilitating the stripping of assets from Carnival Air Lines, Inc., which is explicitly anticipating a bankruptcy filing, without valuation or arm's length consideration, leaving creditors of Carnival Air Lines, Inc. without a viable estate from which to recover, thus in violation of 11 U.S.C. 547-548 (and 18 U.S.C. 151, et seq., and 1961(1)(D), et seq), and applicable State laws protecting creditors (28 U.S.C. 959(b), Florida, Delaware statutes).

Attachment: Special Meeting Proxy Statement of September 5, 1997
Attachment: Pan Am Annual Report for 1996 - Will Not be Available, email or call for copy

Counsel: Richard Bartel, 202-728-3841

Pan Am Corporation and Carnival Air Lines (Route Transfer, Exemptions, Slot Restrictions at JFK)

OST-97-2787 | OST-97-2786 | OST-97-2885 | October 8, 1997

Amended Motion for Filing of an Otherwise Unauthorized Document and Pleading, and Amended Opposition of Richard Bartel

I oppose the exemptions and transfers because they would put the DOT in a position of facilitating the apparent stripping of assets from Carnival Air Lines, Inc., which is explicitly anticipating a bankruptcy filings, without valuation or arm's length consideration, leaving creditors of Carnival Air Lines, Inc. without a viable estate from which to recovers, thus in violation of the Bankruptcy Code 11 U.S.C. 547-548 (and 18 U.S.C. 151, et seq., and 1961(1)(D), et seq), and applicable State laws protecting creditors (28 U.S.C. 959(b), Florida, Delaware statutes).

By: Richard Bartel, 202-728-3841

Pan Am Corp/Pan American World Airways, Inc. and Carnival Air Lines, Inc.

OST-97-2787 | OST-97-2786 | OST-97-2885 | October 17, 1997

Contingent Motion for Leave to File of Pan Am and Carnival and Reply to Amended Opposition of Richard Bartel

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Bartel's financial information is not news to the Department. Moreover, the Department already has begun to consider the fitness of both carriers without Bartel's preferred assistance. Pan Am and Carnival will be addressing issues relating to their financial fitness in response to standard, post-transaction inquiries the Department already has made.

Counsel: Verner Liipfert, William Evans, 202-371-6030

Pan Am Corporation and Carnival Air Lines, Inc.

OST-97-2787 | OST-97-2786 | OST-97-2885 | October 24, 1997

Preacipe and Contingent Intial Reply to Pan Am and Carnival's "Contingent Motion and Reply"

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By: Richard Bartel, 202-728-3841

Pan American World Airways, Inc. and Carnival Air Lines, Inc.

OST-97-2787 | OST-97-2786 | OST-97-2885 | November 18, 1997

Supplement to Initial Reply - Richard Bartel

This Supplemental filing is made to update the Department on information released by Pan Am on Friday, November 14, 1997 regarding its $21,100,000 net loss for the third Quarter, 1997. The Press Release speaks for itself, confirming the previous rate of financial deterioration of the Pan Am entities alone, without reference to that of the "merged" Carnival entity, which had an equivalent loss rate.

By: Richard Bartel, 202-728-3841

Pan Am Corporation and Carnival Airlines, Inc.

OST-97-2786
OST-97-2787

January 6, 1999

Motion of Pan American to Dismiss Joint Application

Approval of Transfer of Route Authority and Exemptions

On June 29, 1998, Pan Am and Carnival, and various other affiliated corporations, were acquired by PAL pursuant to a Chapter 11 Plan of Reorganization confirmed by the U.S. Bankruptcy Court for the Southern District of Florida, Miami Division. PAL submitted a formal notification of that acquisition with various pertinent information and documents, pursuant to Section 204.5 of the Department’s Economic Regulations, on June 30, 1998. PAL is now the sole owner and corporate successor-in-interest to Pan Am and Carnival. Pan Am ceased operations on February 4, 1998 and has surrendered its FAA Part 121 Operating Certificate. Ongoing charter operations are being held out, sold and conducted by Carnival which now does business under the name Pan American Airways Corp.

As a result of the foregoing transactions and developments, PAL submits that the matters at issue in the Section 41105 route transfer proceeding are now moot. Accordingly, PAL hereby moves the Department to dismiss the pending Joint Application in Docket OST-97-2787 on the ground of mootness. The exemption application in Docket OST-97-2786 has been concluded by Order 97-9-3 and no longer remains pending.

Counsel: Pan Am and Shaw Pittman, Robert Cohn, 202-663-8078

Pan American Airways Corp. and Carnival Air Lines Inc. d/b/a Pan American Airways Corp. and Pan Am Corporation and Pan American World Airways, Inc.

Order 99-8-15
OST-99-5945
OST-98-3570
OST-97-2787
OST-97-2918
OST-96-1166

Issued and Served August 19, 1999

Order

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Captured PDF
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Making Fitness Determination, Reissuing and Revoking Certificates, Confirming Grant of Waiver, and Dismissing Applications

By this order. we (1) find Pan American Airways Corp. fit, willing, and able to resume interstate scheduled air transportation operations under its certificate authority; (2) reissue to it the certificate held by Carnival Air Lines, Inc. d/b/a Pan American Airways Corp.; (3) revoke on grounds of dormancy the certificate reissued to Pan American World Airways. Inc. ("PAWA") by Order 96-10-33) to engage in interstate scheduled passenger operations, and the exemption authority issued to PAWA by Order 98-1-23 to serve Santo Domingo, Dominican Republic; (4) confirm staff actions of February 27 and March 3, 1998, in Docket OST-98-3570 granting Carnival waivers of 14 CFR 204.7 to the extent necessary to permit it to engage in limited charter operations; (5) dismiss the joint application of Pan American Corporation ("PAC") and Carnival in Docket OST-97-2787 for approval of a de facto transfer of route authority; (6) dismiss the application of PAWA in Docket OST-97-2918 for a certificate to engage in foreign scheduled air transportation of persons. property and mail (Dominican Republic and the Bahamas), for which it had been issued exemption authority; (7) dismiss the application of Pan American Airways Corp. for renewal of exemption authority previously issued to Carnival (Ft. Lauderdale-Caracas) in Docket OST-96-1166, and revoke that exemption and the exemption granted to Carnival by Order 97-9-29 to serve Port-au-Prince, Haiti-, and (8) dismiss the motions of Mr. Richard C. Bartel, PAC, and Carnival to file otherwise unauthorized documents in Docket OST-97-2787.

By: Brad Mims