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OST-99-6080

Compania Mexicana de Aviacion, S.A. de C.V.

Mexicana submits this request only because it has not been able to obtain slots for its services from the Federal Aviation Administration or alternative sources. Until the 1998-1999 winter season, Mexicana had been able to obtain from the FAA slots sufficient to operate its daytime services to Mexico, or had obtained slots for these flights from other carriers through barter at various carrier slot conferences. Mexicana learned from the FAA within the past several weeks that, due to excessive carrier demand, the FAA will be unable to accommodate Mexicana’s request for slots for its Mexico City-Chicago and Monterrey-Chicago flights for the 1999-2000 winter season. In accordance with past practice, Mexicana contacted other carriers holding slots at O’Hare in an attempt to obtain the required slots. Despite Mexicana’s efforts, the only slots available were offered to Mexicana at unattractive lease rates. Mexicana therefore remains in need of four slots to enable it to operate to Mexico City and Monterrey from Chicago on and after October 31, 1999.

Counsel:  Squire Sanders, Robert Papkin, 202-626-6601

Compania Mexicana de Aviacion, S.A. de C.V.

Hereby answers the Mexicana application, and strongly urges the Department, for several reasons, to grant expeditiously the slot exemptions requested in this application. First, grant of this application is in the public interest, because it provides important inter- and intra- gateway competition, significant benefits to the traveling and shipping public, and a substantial benefit to the Chicago region in terms of increased jobs, travel and tourism. Second, on May 6, 1999, Mexicana filed a timely request with the FAA for Winter 1999-2000 slots, and was orally notified that the slots requested by Mexicana and other carriers exceeded the total number available. In spite of efforts to exchange or otherwise obtain slots from other carriers at O’Hare, Mexicana was unable to obtain slots at the times it requires or at lease rates that would permit the operation of an economically viable service. Finally, grant of the application is fully consistent with the bilateral air service obligations of the United States under the 1960 Air Transport Agreement between the United States and Mexico. As the Department is aware, Chicago strongly supports the liberal use of the Secretary’s slot exemption authority to ensure the highest and best use of O’Hare’s available capacity. Toward that end, Chicago urges prompt, favorable action on Mexicana’s application.

Counsel:  Chicago and Winthrop Stimson, Kenneth Quinn

Chicago O'Hare International Airport/All Nippon Airways/Air France/Compania Mexicana de Aviacion, S.A. de C.V./Iberia Lineas Aereas De Espana/Scandinavian Airlines/Japan Airlines Co., Ltd.

Order 99-10-25 (1) dismisses applications of Japan Airlines, Co., Ltd. in Docket OST-99-5893; All Nippon Airways Co., Ltd. in Docket OST-99-5892; Societe Air France in Docket OST-98-4824; Scandinavian Airlines System in Docket OST-99-5916; and Iberia Lineas Aereas de Espana, S.A. in Docket
OST-99-6008. and (2) dismisses that portion of the application of Compania Mexicana de Aviacion, S. A. de C.V. in Docket OST-99-6080 requesting temporary exemption from 14 C.F.R. Part 93, Subparts K and S under 49 U.S.C. 41714(b)(1) to the extent necessary to enable it to operate daily scheduled arrival at Chicago's O'Hare International Airport between 11:15 A.M. and 11:44 A.M. (local time) and one daily scheduled departure at Chicago's O'Hare International Airport between 2:15 P.M. and 2:44 P.M. (local time), for round trip service between Chicago's O'Hare International Airport and Mexico City, Mexico.

During the period June 25, 1999 through August 6, 1999, the above captioned air carriers requested slot exemptions from 14 C. F. R. Part 93, Subparts K and S, under 49 U. S. C. § 41714(b)(1), to the extent necessary to enable them to continue nonstop, round-trip flights between various foreign gateways and Chicago, Illinois (O'Hare International Airport). In all but one case, the Department had previously granted slot exemption authority for the requested services on a seasonal basis. The instant applications seek to renew the same exemption authority for the 1999-2000 winter season.

By:  Bradley Mims

Compania Mexicana de Aviacion, S.A. de C.V. 

We will grant Mexicana an exemption to enable it to perform one daily scheduled flight arrival and one daily scheduled flight departure at O'Hare to implement round trip service to Monterrey during the 1999-2000 winter season. We find that grant of this exemption authority is consistent with the public interest.  Since grant of this exemption authority is dependent upon the applicant's existing U.S.-Mexico operating authority, we attach the condition that this exemption authority may be used only in the provision of Mexicana's scheduled service between Monterrey and Chicago O'Hare. Furthermore, in accordance with the requirements of the statute, all aircraft operations performed under this exemption shall be conducted by Stage 3 aircraft. We also note that grant of this exemption provides Mexicana with only a temporary slot allocation at O'Hare Airport and does not confer to the applicant any ability to sell, trade, transfer, or convey this exemption authority.

By:  Bradley Mims

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