OST-98-4291
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OST-98-4291
Aero Continente, S.A. (Exemption and Foreign Air Carrier Permit, Lima-Miami)
OST-98-4291 | August 7, 1998
Application for a Foreign Air Carrier Permit
Answers are due by September 4, 1998
Counsel: Lawrence Wasko, 202-862-4370
Aero Continente, S.A. (Foreign Air Carrier Permit and Exemption, Peru-US)
OST-98-4291 | OST-98-4292 | August 24, 1998
Fine Air urges the Department to defer all action on Aero Continente's application until the Peruvian Government has lifted the ban on Fine Air Services, and investigate published reports suggesting that control of Aero Continente may be exercised by Fernando Zevallos.
Counsel: Wilmer Cutler, Jeffrey Shane, 202-663-6000
Aero Continente, S.A. - [Foreign Air Carrier Permit and Exemption (US-Peru)]
OST-98-4291 | OST-98-4292 | September 2, 1998
Reply of Aero Continente, S.A. to Answer of
Fine Air Services
The answer of Fine Air is wholly without merit and must be rejected by the Department of Transportation (the "Department"). Fine Air makes two arguments. First, it claims that because the Government of Peruhas placed a ban on Fine Air's service to/from Peru theDepartment should not take action on Aero Continente's applications until the ban is lifted. This argument is simply a rehash of the allegations Fine Air made in its earlier complaint against the Government of Peru. Second, that there are reports that the "Head" of Aero Continente is under investigation and facing charges for drug trafficking which must be investigated by the Department. The second argument is equally fallacious.
Fine Air argues that Fernando Zevallos is "an alleged drug trafficker" and that "if there is any possibility of Fernando Zevallos having any direct or indirect relationship with the carrier" then the Department must investigate the allegations. In reply to this contention Aero Continente reiterates and states unequivocally that Fernando Zevallos has no ownership interest, direct or indirect, with Aero Continente and is not an officer or director of the company. An independent investigation into the development of Aero Continente shows that the source of funds and their financial application has been consistent and reasonable and properly evidenced in the company's financial records.
Counsel: Lawrence Wasko, 202.862.4370
Aero Continente, S.A.C. / Alas del Pacifico
| OST-98-4291 | September 21, 1998 | Motion for Leave to File and Surreply of Fine Air
Services, Inc. |
Foreign Air Carrier Permit and Exemptions |  HTML |
Fine Air again respectfully urges theDepartment to defer all action on the applications of AeroContinente and Alas del Pacifico until such time as the Peruvian Government permits Fine Air to operate services in the U.S.-Peru market.
Counsel: Wilmer Cutler, Jeffrey Shane, 202-663-6000
| OST-98-4291 OST-98-4292 |
October 2, 1998 | Motion for Leave to File Otherwise Unauthorized Document and
Response of Aero Continente to Surreply of Fine Air Services, Inc. |
Permit and Exemption: Peru - U.S. | HTML |
In summary, the self-serving assertions of Fine Air are wrong as a matter of fact and law. Fine Air asks the Department to act unlawfully to assist its reentry into Peru. The Department, as a matter of law and policy, must reject Fine Air's arguments.
Counsels: Laurence Wasko and Jacquelyn Gluck, 202.862.4370
Aero Continente, S.A.C. / Alas del Pacifico
| OST-98-4291 OST-98-4292 OST-98-4351 OST-98-4352 |
October 14, 1998 |  Motion for Leave to File and
Reply of Fine Air Services, Inc. |
Peru-US Cargo |
| Supporting Article: From El Comercio 12/10/97 | |||
| Service List |
In their most recent pleadings, Aero Continente and Alas argue that the Department is precluded from delaying action on Aero Continente's applications by federal law. Aero Continente also argues that, notwithstanding that it and its former chairman have been indicted in connection with drug trafficking charges, no further investigation of its fitness to hold a U.S. Government license is merited. Both arguments are unavailing.
Wilmer Cutler, Jeffrey Shane
| OST-98-4291 OST-98-4292 |
October 23, 1998 | Motion for Leave to File Otherwise Unauthorized Document and
Response of Aero Continente to Reply of Fine Air Services |
|
| Service List | |||
| Exhibit: Aero Response-1 | |||
| Exhibit: Aero Response-2 |
Aero Continente, S.A. respectfully requests that the Department of Transportation, without further delay, grant its Application for an Exemption, Docket OST-98-4292, authorizing it to engage in the scheduled foreign air transportation, as described, pending action of its Application for a Foreign Air Carrier Permit in Docket OST-98-4291, and that it take such other or further action, consistent with the premises herein, as may be in the public interest.
Counsels: Lawrence Wasko and Jacquelyn Gluck, 202.862.4370
| OST-98-4291 OST-98-4292 |
March 22, 1999 | Re: Govt of Peru |
Peru-US Cargo |
| Attachment: Resolution (Note: An English Translation Is Not Yet Available) |
The Government of peru by document officially published March 20, 1999 has lifted the prohibition dated March 17, 1995 imposed upon Fine Airlines, INc. This action reinstates the authority of Fine Air to serve between Peru and the United States and to implement service for which it has been designated under the bilateral Air Transport Agreements between Peru and the United States. Please note that this action has been taken by the Government of Peru although there is legal action involving Fine Air pending in Peru arising out of the circumstances on which the original suspension was based.
Counsel: Lawrence Wasko for Aero Continente, 202.862.4370
| OST-98-4291 OST-98-4292 |
Dated March 23, 1999 Docketed March 25, 1999 |
Additional Information |
Peru-US Cargo |
Additional Information of Aero Continente, S.A. submitting an English translation of Resolution No. 097-99-MTC/15, 16 of the Government of Peru lifting the ban on operations by Fine Air Servics, Inc. to Peru.
Counsel: Lawrence Wasko for Aero Continente, 202.862.4370
| OST-98-4291 OST-98-4292 |
June 22, 1999 | Re: Additional Information | Foreign Air Carrier Permit - Peru-US |
Letters of Aero Continente, S.A. providing additional information re: evidence that the Government of Peru by Ministerial Resolution repealed the prohibition of the import and operation of Fine Airlines aircraft in Peru.
Counsel: Lawrence Wasko
Aero Continente, S.A. / Ceilos del Peru, S.A. / Alas del Pacifico, S.A.C.
| OST-98-4291 OST-98-4292 OST-95-617 OST-98-4351 OST-98-4352 |
July 22, 1999 | Notice of Fine Air of Withdrawal of Objection and Rule 4F Motion | Foreign Air Carrier Permit and Exemption Authority Modification and Reissuance of Exemption Authority |
Counsel: Pierre Murphy, 202.872.1679, pmurphy@lopmurphy.com
| OST-98-4291 OST-98-4292 |
July 30, 1999 | Answer of Aero Continente to Motion of Fine Air Services | Foreign Air Carrier Permit and Exemption - US-Peru |
| Attachments: |
Fine Air has moved to withdraw its pleadings in opposition to the grant to Aero Continente of authority to serve the United States. Fine Air had based its opposition on two arguments, the first that because the Government of Peru has placed a ban on Fine Air's service to/from Peru the Department should not take action on Aero Continente's applications until the ban is lifted and, second, that there were reports that the "head" of Aero Continente and Aero Continente itself are under investigation and facing charges for drug trafficking which must be investigated by the Department. The Government of Peru has lifted the ban on Fine Air and the motion to withdraw has been filed. But having hurled the charge, based on unsubstantiated hearsay, Fine Air's withdrawal of its pleadings does not clear the record of the evil aura created by its allegations of drug trafficking. Accordingly, Aero Continente wishes to take the opportunity of this answer to provide a summary rebuttal to Fine Air's second line of attack.
Counsel: Lawrence Waskon, 202-862-4370
| OST-98-4291 OST-98-4292 |
July 30, 1999 | Letter of Aero Continente | Foreign Air Carrier Permit and Exemption - US-Peru |
Letter of Aero Continente, S.A. requesting the Office of International Aviation provide it with such written advice, including information regarding the FAA's position on the Aero Continente applications, to enable Aero Continente to take steps within its own organization as may be required, and to solicit the cooperation of Peru's Ministry of transport so as to obtain full, satisfactory clearance from the FAA and from the Department of Transportation.
Counsel: Lawrence Waskon, 202-862-4370
| OST-98-4291 OST-98-4292 |
August 19, 1999 | Re: Additional Information | Permit and Exemption; Peru- U.S. |
| Attachments |
This is in response to your telephone request of August 10, 1999 that Aero Continente provide certain supplementary information to its July 30, 1999 Answer to the Motion of Fine Air Services, Inc. Dr. Erick Bellido has prepared written answers to the questions I provided to him, based upon our conversation, which answers have been translated into English, copies attached hereto.
Counsel: Lawrence Wasko, 202.862.4370
| OST-98-4291 OST-98-4292 |
May 30, 2000 | Re: Additional Information | Foreign Permit/Exemption; U.S.- Peru |
| Attachments: Public Notice |
Aero Continente, S.A. has issued a public announcement that it will stop operating between Peru and the U.S. effective June 5, 2000 because the Department of Transportation will not allow it to use its own aircraft to serve the U.S. and to compete fairly on even terms with U.S. flag air carriers. A copy of the announcement and a translation is attached hereto.
The actions of the U.S. Department of Transportation, through the. office of the Secretary and,the Federal Aviation Administration, which limit Aero Continente to a "wet lease" service,
i.e., flights operated with aircraft and crews that are under the control of some other, non-Peruvian air carrier, are contrary to the provisions of the Air Transport Agreement between the U.S. and Peru. There is no equality of competitive opportunity and the result has been to harm privately owned and operated Peruvian businesses such as Aero Continente.
Instead of implementing the first truly Open Skies transport agreement between a Latin American nation and the U.S., an agreement that has been the model for other Central and South American countries, the Department has erected barriers to the entry of Peruvian carriers to the U.S., barriers which a commercial enterprise such as Aero Continente cannot overcome. For nearly two years, from the date of signing of the agreement, June 10, 1998 to the present, no Peru flag carrier has been authorized by the Department to operate its own aircraft to the U.S. and there is currently no Peruvian flag carrier operating its own aircraft to the U.S.
In contrast, the Department has made certain that U.S. flag carriers have obtained full and open rights to serve to and through Peru, even using the licensing process as a weapon against Aero Continente and other Peruvian carriers to obtain even more benefits for the
U.S. It is clear that this "Open Skies" agreement in reality only benefits the U.S. flag carriers.
Aero Continente does not believe that this situation is an international safety compliance issue. Aero Continente does not believe that the Department is taking action restricting Aero
Continente's service to protect United States citizens travelling to Peru. In support of this view Aero Continente notes that Secretary of Transportation Rodney E. Slater stated publicly that Peru has never lost its Category I compliance status with ICAO safety standards. Peru has been audited by ICAO. The U.S. Department of Transportation has reviewed the ICAO report including references to certain aeronautic legislation matters which the Secretary, in his public statements, described as "minor" and not effecting Category I status. Nevertheless, your office and the office of International Flights Standards in Miami have refused to allow Aero Continente, or any other Peruvian air carrier, to fly to the United States.
The economic impact of these circumstances falls squarely on Aero Continente and it has been devastating. The cost of implementing and providing "wet-lease" service has been significantly greater than when service is performed with Aero Continente's own aircraft and crews, because many functions, airport and ground service needs, passenger servicing as well as overseeing and coordinating aircraft operations, must be duplicated and added to the lease rental expense. A Peruvian carrier limited to a wet-lease operation cannot compete economically in the same market with an American carrier operating its own aircraft.
Counsel: Lawrence Wasko, 202.862.4370
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