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OST-2002-12503


In the Matter of U.S.- Ecuador All-Cargo Frequencies 

OST-2002-12503 Served June 4, 2002 Notice U.S.- Ecuador All-Cargo Frequencies

While there are no limitations on the number of U.S. all-cargo carriers that may provide scheduled all cargo services to Ecuador, there are limitations on the number of weekly frequencies that may be provided. U.S. all-cargo carriers have been limited to 15 weekly frequencies. Furthermore, those frequencies have been subject to an aircraft substitution formula (i.e., whereby use of wide-body aircraft requires more frequencies than use of narrow-body aircraft). Current frequency allocations for U.S. carriers are as follows (in narrow-body equivalences): UPS, 7; Arrow Air, 5; and Gemini Air Cargo, 3.

On May 30, 2002, following discussions in Quito, delegations of the United States and the Republic of Ecuador signed "Minutes of the Meeting" that stated that the delegations had reached agreement ad referendum on the text of a diplomatic note to extend application of the Air Transport Agreement of 1986 with certain modifications. As set forth in the initialed draft diplomatic note attached to the Minutes, U.S. all-cargo carriers would be permitted to operate 30 round-trip all-cargo scheduled frequencies in the U.S.-Ecuador market over routes specified in Section 2 of Annex I of the agreement, and the aircraft substitution formula would not apply. The Minutes state that pending execution of the diplomatic note, the aeronautical authorities of both countries intend to permit operation consistent with the terms of the draft diplomatic note on the basis of comity and reciprocity. Thus, there are now 15 additional frequencies available for U.S. carrier scheduled all-cargo services, and each of these frequencies (as well as existing frequencies) can be used for wide-bodied or narrow-bodied services.

It is our desire to enable interested carriers to use these opportunities as soon as possible. Before we decide to award the available opportunities, to ensure that we have applications from all interested carriers, we request that all other U.S. carriers interested in making use of the available frequencies file applications as specified below with the Department no later than June 28, 2002. Answers to applications should be filed no later than July 8, 2002. Replies to answers should be filed no later than July 15, 2002.

By:  Paul Gretch



OST-02-12503 June 28, 2002 Application of Arrow Air for Allocation of Five Additional All-Cargo Frequencies U.S.- Ecuador All-Cargo Frequencies
    Service List  

Arrow Air, Inc. hereby applies for the allocation of five (5) additional U.S.-Ecuador all-cargo scheduled frequencies pursuant to the Notice issued by the Department of Transportation served June 14, 2002 in the above-referenced Docket. Arrow currently provides all-cargo service to Quito and Guayaquil, Ecuador under an existing allocation of five (5) frequencies. The additional frequencies are required to enable Arrow to offer improved all-cargo scheduled service between Miami and Quito and between Miami and Guayaquil.  

Arrow will provide daily round-trip service between Miami and Quito and service three times a week between Miami and Guayaquil by supplementing the current operations with the additional frequencies herein requested. The additional frequency allocations will be used as soon as possible after authorization by the Department, preferably by no later than September 1, 2002. Arrow proposes to use a mix of aircraft in the Quito market as follows: Monday and Wednesday - DC-10-30F aircraft, Tuesday, Thursday, Friday and Saturday - B747-200F aircraft, and Sunday -DC-8 or DC-1030F aircraft. In the Guayaquil market Arrow will maintain current operations with DC-10-30F aircraft. The DC-10-30F and DC-8 aircraft to be used for additional flights are currently in Arrow's fleet and listed in its FAA approved Operations Specifications and used for services in the Ecuador markets. The B747-200F aircraft is being added to the company's Operations Specifications at the present time and will be immediately available for use in the Ecuador market.

Counsel:  Arrow, Lawrence Wasko, 202.862.4370, ldwasko@erols.com 

OST-02-12503 June 28, 2002 Application of Atlas Air for an Exemption and Frequency Allocation U.S.- Ecuador All-Cargo Frequencies
    ExhibitsProposed Schedule  
    Service List  

Requests an exemption to provide foreign scheduled air transportation of property and mail between a point or points in the United States and a point or points in Ecuador, plus the right to combine services authorized by such exemption with all services authorized by other Atlas exemption and certificate authorities. In addition, Atlas requests allocation of six (6) of the 15 additional weekly all-cargo frequencies that have become available as a result of the recent intergovernmental agreement between the United States and Ecuador.

Atlas has had a longstanding interest in Ecuador, unsuccessfully pursuing a request for scheduled authority in the 2000 U.S.-Ecuador All-Cargo Frequency Allocation case and subsequently initiating an extensive charter program. Since November 2001, Atlas has been operating Ecuador charter flights consistently at a level of three per week. Because of marketing impediments and uncertainty created by the need to obtain Ecuadorian flight approval on a case-by-case basis, operating charters is far from the optimal way of serving the U.S.-Ecuador market. Atlas is eager to inaugurate U.S.Ecuador scheduled service now that our government and Ecuador have expanded all-cargo opportunities. Therefore, Atlas is responding to the Department's June 14 Notice by requesting exemption authority and an allocation of six all-cargo frequencies.

Counsel:  Atlas, Russell Pommer, 202.354.3843, rpommer@atlasair.com 

OST-02-12503 June 28, 2002 Application of Custom Air Transport for Exemption and Frequency Allocation U.S.- Ecuador All-Cargo Frequencies
    Attachment:  Illustrative Service Proposal  
    Service List  

Hereby requests an exemption from the terms of 49 U.S.C. § 41101 and the Department's rules to the extent necessary to permit it to operate scheduled foreign air transportation of property and mail between Miami, Florida and Quito and Guayaquil, Ecuador. CAT further requests an allocation of three weekly frequencies out of those now available for U.S. carriers pursuant to the recently concluded ad referendum agreement between the United States and Ecuador.  

CAT proposes to operate scheduled all-cargo service three times weekly on a Miami-Quito-Guayaquil-Miami routing. No intermediate stops are contemplated at this time, though the carrier is exploring the possibility of a south-bound stop en route to Quito, since the market is dominant in the north bound direction . The carrier expects to inaugurate its service using B-727-200 "Super-27" aircraft, but may shift to a DC-10-10 or -30 once those aircraft types are introduced into the fleet sometime in December. Though it is not a widebody aircraft, CAT believe that the Super-27 is well adapted to the Ecuador market. This aircraft will be able to carry 58,000 pounds of cargo out of Quito; its actual weight capacity would be higher, but the cargo to be transported - flowers - would fill the volumetric capacity of the aircraft at about that weight. Moreover, the more powerful engines of this aircraft would enable it to operate economically at higher elevations and on longer stagelengths. CAT already has this aircraft in its fleet.

Counsel:  Sher Blackwell, Mark Atwood, 202.463.2513 

OST-02-12503 June 28, 2002 Application of Evergreen International Airlines for an Exemption and Allocation of Frequencies U.S.- Ecuador All-Cargo Frequencies

Requests an exemption from 49 U.S.C. § 41101 to the extent necessary to permit it to engage in scheduled foreign air transportation of property and mail between Miami, Florida and the co-terminals Guayaquil, Latacunga and Quito, Ecuador. Evergreen also seeks to integrate the proposed authority with its existing certificate and exemption authority consistent with applicable aviation agreements. In addition, Evergreen seeks an allocation of two weekly round trip frequencies.  In addition to Miami-Ecuador nonstop service, Evergreen also proposes to offer service behind Miami to and from New York. Today, there is no freighter service between New York and Ecuador, so that the selection of Evergreen would generate significant new service benefits for the shipping public. Moreover, Evergreen would be able to link up its Ecuador-U.S. service with its U.S.-Asia services and thereby afford Ecuadorian importers and exporters a new opportunity to gain improved access to the Far East.

Counsel:  Verner Liipfert, William Evans, 202.371.6030

OST-02-12503 June 28, 2002 Application of Florida West International Airways U.S.- Ecuador All-Cargo Frequencies
    Service List  

Hereby requests allocation of five weekly roundtrip all-cargo frequencies between the United States and Ecuador permitting FWIA to engage in scheduled foreign air transportation of property and mail between Miami, Florida and Quito and Guayaquil, Ecuador.  Grant of the five weekly frequencies FWIA requests would add a new entrant in the U.S.Ecuador scheduled cargo market. Approval of FWIA's application would also permit FWIA to much more fully develop and expand its Ecuador cargo services, which have become an important and profitable part of FWIA's cargo services. Unlike many carriers, FWIA has an excellent track record in the United States-Ecuador cargo market and is uniquely qualified to make maximum use of the valuable frequencies the United States obtained from Ecuador in May 2002. Although FWIA is restricted currently to operation of only charter services, it has used these services to maximum advantage. Despite the downturn in economic conditions generally and in U.S.-Latin America air cargo in particular since September 11, 2001, FWIA has continued to operate almost daily charter service between Miami and Quito/Guayaquil-an impressive record by any measure but especially so for a smaller company such as FWIA. During the period January 1 through June 15, 2002, FWIA operated a total of 137 charter flights between the United States and Ecuador-averaging approximately 25 flights per month

Counsel:  Squire Sanders, Marshall Sinick, 202.626.6651, msinick@ssd.com



OST-02-12503 July 19, 2002 Supplement No. 1 of Arrow Air to Application for Exemption and Frequency Allocation U.S.- Ecuador Exemption and Frequency Allocation
    Attachments:  Arrow's Service  
    Service List  

Counsel:  Arrow, Lawrence Wasko, 202.862.4370, ldwasko@erols.com 

OST-02-12503 July 19, 2002 Supplement No. 1 of Atlas Air to Application for Exemption and Frequency Allocation U.S.- Ecuador Exemption and Frequency Allocation
    Exhibits 6-8:  Recent Service  
    Service List  

Supplementing its June 28, 2002 application for a U.S.-Ecuador exemption and allocation of six (6) of the 15 additional weekly all-cargo frequencies that have become available as a result of the recent intergovernmental agreement between the United States and Ecuador. As indicated in the application, Atlas is proposing service with 747-200 freighters, which are highly efficient and offer more capacity than the smaller aircraft operated by many all-cargo carriers. Exhibit 7, attached hereto, compares the weight-based and spacebased capacity of the 747-200 to other aircraft types. Using weight capacity figures in Exhibit 7 for the 757F and DC8-63F aircraft types, Atlas has made minor adjustments to Exhibit 6. A new Exhibit 6 (Rev.) is attached hereto.

Atlas also indicated in the application that it has consistently operated U.S.-Ecuador charter flights at a level of three per week since November 2001. Exhibit 8, attached hereto, provides the precise numbers. Between November 2001 and May 2002, on average, Atlas operated 4.7 Miami-Quito weekly flights, 3.8 Quito-Guayquil weekly flights and 3.8 weekly Guayaquil-Miami weekly flights.

Counsel:  Atlas, Russell Pommer, 202.354.3842, rpommer@atlasair.com 

OST-02-12503 July 19, 2002 Supplement No. 1 of Custom Air Transport to Application for Exemption and Frequency Allocation U.S.- Ecuador Exemption and Frequency Allocation
    Service List  

The data show that the Miami-Quito and Miami-Guayaquil markets continue to be by far the largest airfreight markets in the United States-Ecuador country pair. The tremendous growth in these markets in the past two years, including the first month of the current year, evidence the need for additional competition - in the form of both additional service and additional competitors that will provide new service alternatives and lower prices. The data also evidence the extreme volatility of the market, particularly on a month-over-month basis. This important fact demonstrates the value of being able to serve the market with either narrowbody or widebody aircraft, as CAT intends to do. This ability would enable the carrier to meet demand in the peak periods as well as the slow periods without decreasing frequency due to overcapacity.

Counsel:  Sher Blackwell, Mark Atwood, 202.463.2513 

OST-02-12503 July 19, 2002 Supplement No. 1 of Evergreen International to Application for Exemption and Frequency Allocation U.S.- Ecuador Exemption and Frequency Allocation
    Service List  

Counsel:  Verner Liipfert, William Evans, 202.371.6030, wcevans@verner.com



OST-02-12503 July 24, 2002 Re:  Corrected Page 2 to Supplement No. 1 of Arrow Air U.S.- Ecuador Exemption and Frequency Allocation
    Attachment:  Page 2  

Counsel:  Arrow, Lawrence Wasko, 202.862.4370, ldwasko@erols.com



OST-02-12503 August 2, 2002 Answer of Atlas Air U.S.- Ecuador All-Cargo Frequencies
    ExhibitsAtlas Service  
    Service List  

Counsel:  Atlas, Russell Pommer, 202.354.3843, rpommer@atlasair.com 

OST-02-12503 August 2, 2002 Consolidated Answer of Custom Air Transport U.S.- Ecuador All-Cargo Frequencies

The Department is faced with the task of allocating 15 new cargo frequencies among five applicants proposing 21 weekly frequencies. Of the applicants, all but Arrow would be new entrants to the Ecuador scheduled cargo market. As described below, CAT submits that given the near-match between requested and available frequencies, it would best serve the public interest to use the new frequencies to admit new competitors to the market, and accordingly that the application of Arrow should be denied.

Counsel:  Sher Blackwell, Mark Atwood, 202.463.2513 

OST-02-12503 August 2, 2002 Answer of Evergreen International Airlines U.S.- Ecuador All-Cargo Frequencies
    Exhibits 1-4:  Schedule and Rates, Arrow Air News, Atlas Air  Release, Balance Sheet  
    Service List  

A comparative analysis clearly demonstrates that Evergreen should be awarded two weekly frequencies. Evergreen intends to use the appropriate aircraft to offer a reasonable level of service, adding a new, U.S.-flag competitor in the Miami-Ecuador market. It also is the only applicant that proposes to offer new, single-plane, freighter service in the important New York-Ecuador market. Thus, so long as Evergreen is authorized to operate two weekly roundtnps, it does not object to allocation of the remaining frequencies to the other applicants as the Department sees fit.

Counsel:  Verner Liipfert, John Mietus, 202.371.6030, jrmietus@verner.com 

OST-02-12503 August 2, 2002 Consolidated Answer of Florida West International Airways U.S.- Ecuador All-Cargo Frequencies
    Service List  

The Department will maximize benefits to the shipping public by awarding frequencies to a new entrant carrier with a proven and demonstrated commitment to the U.S.-Ecuador market and the experience required to successfully operate wide-bodied scheduled service to Ecuador. FWIA better satisfies these criteria than any other applicant.

FWIA has had a longstanding interest in the U.S.-Ecuador market. FWIA requested the allocation of frequencies in the 1997 U.S.-Ecuador frequency allocation proceeding but was unsuccessful due in large part to FWIA's lack of wide-bodied aircraft. FWIA understood from the Department's 1997 order that access to wide-bodied aircraft was an important decisional factor, as it should be in this proceeding. FWIA now operates B767-300F aircraft and has been using them aggressively to develop its U.S.-Ecuador charter business. These are the same aircraft FWIA would use in operating new scheduled service to Ecuador.

Counsel:  Squire Sander, Marshal Sinick, 202.626.6651, msinick@ssd.com 

OST-02-12503 August 2, 2002 Answer of the Port Authority of New York and New Jersey to Application of Evergreen International U.S.- Ecuador All-Cargo Frequencies
    Service List  

Strongly supports the application of Evergreen International Airlines to offer service from New York to Ecuador. This all-cargo service will be offered twice weekly to the co-terminal points of Quito, Guayaquil, and Latacunga. This is the only cargo service application, which proposes linking the New York region with Ecuador, a significant exporter of seafood, vegetables, live trees and plants to the U.S.

Counsel:  Port Authority, William DeCota, 212.435.3741



OST-02-12503 August 9, 2002 Consolidated Reply of Arrow Air U.S.- Ecuador All Cargo Frequencies
    Exhibit:  Flight Schedule  
    Service List  

Counsel:  Arrow, Lawrence Wasko, 202.862.4370, ldwasko@erols.com 

OST-02-12503 August 9, 2002 Reply of Atlas Air U.S.- Ecuador All Cargo Frequencies
    Exhibit 1:  Atlas Capacity  
    Service List  

In their answers, Florida West and Evergreen challenge the appropriateness of awarding Atlas all six frequencies it has requested.  As explained below, the arguments are ineffective in undercutting the well-supported proposition that the Atlas proposal is superior to all others and should be fully funded. The Department will maximize public benefits by allocating six frequencies to Atlas and apportioning the remaining nine among some or all other applicants except Custom Air.

Counsel:  Atlas, Russell Pommer, 202.354.3843, rpommer@atlasair.com

OST-02-12503 August 9, 2002 Consolidated Reply of Custom Air Transport  U.S.- Ecuador All Cargo Frequencies
    Service List  

In their answers, Atlas, Evergreen and Florida West have taken pains to point out the weaknesses in the others' applications. Not surprisingly, all of the proposals have their weaknesses as, well as strengths. These assertions, however, serve to support CAT's contention, as described in its answer: that the Department should use this exceptional opportunity to maximize the number of competitors in the market, and not to bolster the market share of incumbent carriers.

Counsel:  Sher Blackwell, Mark Atwood, 202.463.2513 

OST-02-12503 August 9, 2002 Reply of Evergreen International Airlines U.S.- Ecuador All Cargo Frequencies
    Service List  

The fifteen weekly frequencies available for allocation in this proceeding represent a significant opportunity for the Department to enhance competition in the U.S.-Ecuador market.  However, three applicants – Arrow, Atlas, and Florida West – appear to be involved in relationships with each other or incumbents in the U.S.-Ecuador market.  Thus, inter-carrier competition might not be fostered, and could even be harmed, if these applicants are awarded new or additional Ecuador rights.  As Evergreen explained in its answer, Arrow and Atlas share a common relationship with Air Global International, making it appear that the Boeing 747 aircraft Arrow proposes would be flown by Atlas.  Further, Florida West's minority owner and lessor of its B767 freighter aircraft, LanChile, already has a significant presence in the U.S.-Ecuador market that it proposes to further through the reported creation of an Ecuadorian airline, LanEcuador.

Counsel:  Verner Liipfert, William Evans, 202.371.6030, wcevans@verner.com 

OST-02-12503 August 9, 2002 Consolidated Reply  of Florida West International Airways U.S.- Ecuador All Cargo Frequencies
    Service List  

This proceeding provides the Department with an infrequent and valuable opportunity to substantially increase competition in an important and rapidly growing cargo market-Miami­-Ecuador. After review of the applications, supplemental applications and answers, it is clear that FWIA's service proposal of five weekly frequencies is not only the most reasonable, based on actual operating experience in the market, but also most likely to provide significant competition on a long-term basis. FWIA's highly successful experience in Ecuador, longstanding interest in operating scheduled flights in the Miami-Ecuador market, use of highly-efficient, one-year old wide-bodied B767-300F aircraft and its commitment to the South American cargo markets generally make FWIA the logical choice for award of five weekly frequencies.

Counsel:  Squire Sanders, Marshall Sinick, 202.626.6651, msinick@ssd.com



OST-02-12503 September 12, 2002 Correspondence of Export Flower Association in Support of Evergreen U.S.-Ecuador All-Cargo Frequencies

On behalf of the Export Flower Association of Ecuador and due to the increase of frequencies agreed between Ecuador and the United States we are writing you to express our support for an application submitted by Evergreen International Airlines to inaugurate new all-cargo services between Ecuador and the United States. At the moment there is no freighter service between the New York area and Ecuador, therefore this new initiative will increase the volumes of exports from our country m benefit of the flower exporters and the importers in the United States.

By: Jorge Lopez Cordovez



OST-02-12503 October 16, 2002 Letter of Support of Senator Charles Schumer US-Ecuador All-Cargo Frequencies

Counsel: Atlas Air, Russell Pommer,  202 354-3843



OST-02-12503 October 28, 2002 Correspondence of Atlas Air U.S.- Ecuador All-Cargo Frequencies

Atlas Air, Inc. wishes to submit the attached letter of support for its pending application in the referenced proceeding.

Counsel: Russell Pommer,  202 354-3843



Order 2003-8-11
OST-02-12503 - US-Ecuador All-Cargo Frequencies

Issued and Served August 12, 2003

Order to Show Cause | Word

Order 2003-8-11, the Department tentatively awards 15 weekly frequencies to U.S. carriers for U.S.-Ecuador all-cargo services, as follows: Atlas Air, Inc. -5; Florida West International Airlines, Inc. -5; Custom Air Transport, Inc. - 3; and Evergreen International Airlines, Inc. -2. Also, tentatively awards the requisite underlying exemption authority to Atlas, Custom Air, and Evergreen for their proposed services; and award certain route integration authority to Atlas and Evergreen.

The new-entrant proposals in this case reflect a diversity of routing patterns. Specifically, Atlas would offer certain third-country (Europe and Asia) traffic options by linking its new Ecuador flights with other flights to and from Miami; Evergreen would offer certain third-country traffic options by linking its Ecuador-U.S. service with its U.S.-Asia service; Evergreen would also offer U.S.-Ecuador service from New York (via Miami) and proposes service at Latacunga, as an alternate stop to Quito, depending on traffic demands; Custom Air would focus on the nonstop U.S.-Ecuador market with service from Miami; and Florida West would serve the U.S.-Ecuador market from Miami with stops in Panama City and Lima, southbound, during low-traffic seasons. Further, we note that all of the new-entrant carriers in this case have experience providing either charters and/or scheduled all-cargo services in international markets, including Latin America, and all of the new-entrant carriers have stated that they have the aircraft available to commence the services proposed.

By: Susan McDermott



August 22, 2003

Objection of Arrow Air to Order to Show Cause

Arrow Air, Inc. hereby respectfully objects to the tentative decision of the Department of Transportation (the "Department") set forth in Order 2003-8-11, Order to Show-Cause served August 12, 2003 and in ordering paragraphs 1 and 2, thereof, which would award 15 weekly frequencies only to new-entrant U.S. carriers for U.S. -Ecuador allcargo scheduled services and deny the application of Arrow in its entirety. Arrow urges the Department to reconsider its tentative decision and upon such review find and conclude that the public interest requires the grant of Arrow's application in whole or in part.

Counsel: Lawrence Wasko, 202-331-0599, ldwasko@erols.com



August 29, 2003

Answer of Atlas Air to Objection of Arrow Air | Word

Atlas Air, Inc. takes no position on the merits of the Arrow objection and frequency request. However, if the Department decides to award frequencies to Arrow, it should do so without reducing the tentative award of five frequencies to Atlas. As Atlas explained and supported in prior submissions in this proceeding, granting its application will do the most to improve service for the shipping public, increase competition and maximize the utilization of valuable bilateral rights. Atlas serves the U.S.-Ecuador market today on a charter basis and has been diligently working with the Government of Ecuador to obtain authority to commence so-called "nonregular" operations. The next step in the logical marketing progression is to upgrade to scheduled service. Accordingly, Atlas' application is superior to those of the other applicants. Atlas requested six frequencies and was tentatively awarded five.' Under no circumstances should it be awarded fewer.

Counsel: Atlas, Russell Pommer, 202-354-3843, rpommer@atlasair.com


August 29, 2003

Answer of Custom Air Transport to Objection of Arrow Air

Arrow essentially claims that it has been denied procedural due process because its service proposal was not given "comparative consideration" along side the competing proposals, as required by the Ashbacker doctrine.' Arrow bases this assertion on the fact that the Department chose to award the newly available frequencies to new entrant carriers, rather than to add to the frequencies already held by Arrow, an incumbent in the scheduled U.S. Ecuador market. The real basis of Arrow's complaint, however, is that it does not like the policy criterion the Department has applied in this case.

Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513


August 29, 2003

Answer of Evergreen International Airlines to Objection of Arrow Air

Contrary to Arrow's allegations, the Department did consider Arrow's position; it did compare Arrow's proposal to those of the new entrant applicants; and, it found the Arrow proposal inferior, concluding that "the diverse service benefits arid increased market competition offered by the new-entrant carriers outweigh the benefits of increased frequencies by Arrow." Certainly, Arrow's proposal is inferior to Evergreen's, which not only adds capacity in the Miami-Ecuador market but also offers new single-plane allcargo service between Ecuador and New York, the second largest gateway for Ecuador traffic. In sum, the record clearly supports the allocation of two frequencies to Evergreen regardless of how the remaining frequencies are finally allocated.

Counsel: Piper Rudnick, William Evans, 202-861-6459, bill.evans@piperrudnick.com


August 29, 2003

Reply of Florida West International Airways

The gravamen of Arrow's objection-the only objection filed by any of the three incumbent carriers-is, of course, that Arrow would prefer not to have to face the rigors of the enhanced competition that will ensue from the addition of four new carriers to the U.S.-Ecuador all-cargo market. FWIA operates an extensive number of charters in the U.S.-Ecuador market. The fact that FWIA has invested in serving the U.S.-Ecuador market, albeit on a charter basis, and is familiar with the needs of certain planeload shippers in the market, is a decided advantage for FWIA. FWIA will almost certainly find it much easier than several of the other new entrant carriers to use its knowledge of the U.S.-Ecuador market and to convert its charter authority from the Government of Ecuador to scheduled authority. More importantly, however, Arrow's argument completely ignores the significant attributes of scheduled service in terms of schedule reliability and the ability to fulfill the needs of customers with varying shipment volumes.

Counsel: Squire Sanders, Marshall Sinick, 202-626-6651, msinick@ssd.com



September 8, 2003

Motion of Arrow for Leave to File an Otherwise Unauthorized Document and Reply to Answers

No party to this proceeding challenges the legal concept that the Ashbacker Doctrine' is applicable to this proceeding. This is a limited entry proceeding involving the allocation of 15 new frequencies to/from Ecuador. Each applicant for an allocation is entitled to have its proposal considered on its merits. Arrow's application which is mutually exclusive with those of the other applicants has not been given that consideration. Three applicants, Custom Air Transport, Evergreen and Florida West, argue that the Department, as a matter of policy, can ignore the Ashbacker doctrine. As shown below, the arguments of the three applicants opposing a frequency allocation award to Arrow are erroneous. The Department, upon consideration of the matters set forth herein and of all of the facts and applicable law, should revise its decision so as to make an award of some additional frequencies to Arrow.

Arrow was the only incumbent to file an application. While the Department has historically favored new entrant applications with respect to newly available frequencies, to award all frequencies on the basis that carriers are new entrants and award no frequency to the incumbent applicant is to create a situation of mutual exclusivity requiring comparative consideration as addressed by the Ashbacker Doctrine. To suggest Arrow can add capacity simply by changing aircraft is an oversimplification of the current situation. Substituting larger aircraft will not save Arrow from the harm it will face in light of the market realities and the service integration requirements associated with other Central American and South American points to which Arrow operates in conjunction with Ecuador.

Replacement Page 6

Counsel: Lawrence Wasko, 202-862-4370, ldwasko@erols.com



September 10, 2003

Correspondence of Florida West International Airways

On behalf of Florida West International Airways, Inc. , we would like to advise the Department that FWIA., after reviewing the recent Motion for Leave to File and Reply of Arrow Airways, Inc., will fbi burden the record with an additional formal response.

FWIA would, however, take this opportunity to encourage the Department to move forward, as expeditiously as possible, with the issuance of a final order. This proceeding has already been much delayed and the recipients still have to obtain authority from the Government of Ecuador, a process which cannot begin until the Department issues a final decision.

Counsel: Squire Sanders, Marshall Sinick, 202-626-6651, msinick@ssd.com


September 9, 2003

Correspondence of Piper Rudnick, Counsel for Evergreen

After reviewing the "Motion of Arrow, Inc. for Leave to File an Otherwise Unauthorized Document and Reply to Answers" dated September 8, 2003, Evergreen International Airlines, Inc., finds no need to burden the record by filing a further responsive pleading since Arrow's Reply merely reiterates the arguments set forth in its Objection to the Order to Show Cause. Consequently, Evergreen recommends that the Department proceed and issue its final decision.

Counsel: Piper Rudnick, William Evans, 202-861-6459, bill.evans@puperrudnick.com



September 12, 2003

Motion of Custom Air Transport to Withdraw Application

CAT originally applied for these frequencies on June 28, 2002, and the various service proposals and pleadings were filed throughout the summer. Though CAT was prepared at that point to initiate service to Ecuador, during the intervening year before the Department's Order to Show Cause was issued in August 2003 CAT was forced to consider other opportunities for service in Latin America and the Caribbean.

As noted in CAT's August 29, 2003 Answer to Objection of Arrow Air, Inc., CAT has instituted scheduled service between Miami and Santo Domingo, Dominican Republic, and San Jose, Costa Rica, and will very shortly expand that service to include Managua, Nicaragua and Panama City, Panama. Opening up daily service to four points in such a short time, however, is fully utilizing CAT's resources. It would be very difficult for CAT to devote the necessary time and infrastructure to establishing the necessary presence in Ecuador in the near future.

Rather than put the Department in the position of having to grant extensions of the 90-day startup deadline, therefore, CAT has determined to withdraw from further consideration in this proceeding, thus freeing three more frequencies for allocation to carriers that will, presumably, be able to use them sooner than CAT. CAT is, however, hopeful that there will be further liberalization of the frequency regime with Ecuador, and that it will be able to renew its plans to serve that important market when an opportunity emerges.

Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513



February 6, 2004

Application for Exemption and Allocation of Frequencies

If it is awarded the three U.S.-Ecuador frequencies it seeks, Amerijet will provide service from its base in Miami to both Quito and Guayaquil over a Miami-Quito-Guayaquil-Miami routing. Amerijet's Miami service will be supported by its extensive beyond-Miami road and interline connecting services. Amerijet's services will be provided with Boeing 727-200 freighter aircraft presently in Amerijet's fleet or with other aircraft Amerijet may acquire in the future. Amerijet is in the advanced stages of evaluating larger aircraft (DC-8 and DC-10 freighters) that it could employ in the U.S.-Ecuador market.

Amerijet's interest in the U.S.-Ecuador market has increased recently for another reason. On January 28, 2004, Arrow Air, Inc. reentered reorganization in the Bankruptcy Court in Miami, Florida. Amerijet and its principal investor have entered into an Asset Purchase Agreement with Arrow, which will be filed with and considered by the Bankruptcy Court in due course. If Amerijet is successful before the Bankruptcy Court and the Asset Purchase Agreement is approved and allowed to be consummated, Amerijet will acquire, inter alia the U.S.-Ecuador operating authority currently held by Arrow. Amerijet looks forward to receiving and utilizing that authority in the public interest.

Counsel: John, Richardson, 202-371-2258, jrichardson@johnlrichardson.com



Served February 10, 2004

Notice Shortening Response Dates

By Notice dated June 14, 2002, the Department instituted the 2002 US.-Ecuador All-Cargo Service Case to award 15 new frequencies to serve the U.S.-Ecuador all-cargo market. By Order 2003-8-11, the Department issued a tentative decision in the case. Comments in response to the Department's tentative decision have been filed and the case is ripe for final decision. Amerijet, not previously a participant in this proceeding, has now filed an application for exemption authority and frequency allocations in the case. In the interest of providing interested parties a prompt opportunity to respond to the application filed, we believe that it is in the public interest to shorten the response period to the Amerijet application.

Therefore, acting under authority assigned in 14 CFR 385.3, we will require that answers to the Amerijet application be filed no later than Wednesday, February 11, 2004; with replies filed no later than Thursday, February 12, 2004.

By: Paul Gretch



February 11, 2004

Answer of Arrow Air in Opposition to Amerijet International Application for Exemption and Allocation of Frequencies

Grant of the Amerijet application would be contrary to law, fact and equity, and would not be in the public interest. It should be denied. This case has been pending before the Department of Transportation for a long time. The summary of the proceeding set out by Amerijet in its application, see paragraphs 8 and 9, failed to note that on August 22, 2003 Arrow filed an objection to the Order to Show­ Cause, Order 2003‑8‑11, served August 12, 2003. Arrow stated that as a matter of law the Ashbacker Doctrine' was applicable. No party to this proceeding challenged this legal concept. It remains applicable to this case and to the late‑filed Amerijet exemption application.

Amerijet has provided no basis in support of its application other than the representation that grant of its application would allow it to enter the U.S.‑Ecuador market if it is otherwise unsuccessful in obtaining Arrow's operating rights to Ecuador. That does not substantiate an award to Amerijet and the denial of Arrow's application.

Counsel: Lawrence Wasko, 202-331-0599, ldwasko@erols.com


February 11, 2004

Answer of Atlas Air to Application of Amerijet International for an Exemption and Allocation of Frequencies | Word

Amerijet was not an applicant in the ongoing frequency assignment proceeding. In contrast to the five applicants, Amerijet did not submit a service proposal or make a public interest showing for the parties to critique and the Department to evaluate comparatively. The fact that Custom Air Transport, Inc. has withdrawn its request for three frequencies should not constitute grounds for a non-participant to enter the case at the eleventh hour and secure frequencies long sought by the participating in Order 2003-8-11, the Department tentatively decided to award all 15 available frequencies to new entrant carriers. It fully funded the frequency requests of three new entrants, including Custom Air, but not Atlas. Now that Custom Air's three tentatively assigned frequencies are available, the Department can achieve its stated objective of fostering new entry by awarding Atlas all six of the frequencies for which it applied, instead of the five tentatively awarded by the show-cause order. By taking such action, moreover, the Department will be placing Atlas on equal footing with the other new entrant applicants, which are receiving their full frequency requests.

Counsel: Atlas, Russell Pommer, 202-822-9121, rpommer@atlasair.com


February 11, 2004

Answer of Florida West International Airways to Application of Amerijet International for an Exemption and Allocation of Frequencies

Florida West submits that the Department should avoid further delay in the use of these valuable operating rights by immediately making final the tentative conclusions it reached last August in Order 2003-8-11 except for the allocation of three frequencies to Custom Air Transport, Inc. ("Custom"). Those three frequencies should remain unallocated while the Department conducts any further selection proceedings that may be necessary. Florida West takes no position at this time on whether Amerijet is the appropriate carrier ultimately to receive them.

Florida West submits that it is time to bring this twenty month old proceeding to a close by making final the conclusions of Order 2003-8-11 and granting U.S.- Ecuador scheduled all-cargo frequencies to Florida West and to the other two remaining applicants. Amerijet and any other interested carrier will still have an opportunity to show that they are entitled to the remaining three slots. That opportunity should come, however, in a separate proceeding.

Counsel: Squire Sanders, Marshall Sinick, 202-626-6651, msinick@ssd.com


February 11, 2004

Answer of Tradewinds Airlines to Application of Amerijet

Similarly to Amerijet, TradeWinds submits that its interest in the Ecuador market has developed recently as well. The all‑cargo market which existed in mid‑2002 when this proceeding was initiated is quite different from that which exists in early 2004. TradeWinds therefore submits that it and other interested parties should be afforded a sufficient and reasonable opportunity to evaluate whether to participate in this proceeding for allocation of the 3 frequencies which have now been unawarded for approximately five (5) months.

Trade Winds wishes to advise the Department that it is also a competing potential interested investor in Arrow and has been a participant in the Arrow Bankruptcy Court proceeding in Miami. Unlike Amerijet however, if TradeWinds is successful in its acquisition of the assets of Arrow in the bankruptcy proceeding, any application by TradeWinds herein will not be necessary. It is TradeWinds understanding that the Bankruptcy Court auction scenario referred to by Anierijet in its application will be made clear by February 23, 2004.

Counsel: Pierre Murphy, 202-776-3980, pmurphy@lopmurphy.com



February 12, 2004

Reply of Amerijet International | Word

When the Department issued its Order to Show Cause and announced a reasoned and rational allocation of the new scheduled all-cargo frequencies available to it, only Arrow objected to the Department's tentative decision. Custom, one of the successful applicants, subsequently determined that it could not responsibly accept the Department's proposed award and announced that decision to the Department and all parties. No party -- including Arrow -- responded to Custom's motion. No party including Arrow -- then or later suggested that the Department could accomplish one of the critical goals of the tentative decision by awarding one or more of the three available frequencies to it. Over the succeeding five months, no applicant which had failed to acquire all the operating authority it sought or might have sought asked the Department to use one or more of the frequencies tentatively awarded to Custom to let it increase the number of U.S.-Ecuador frequencies it could operate. In fact, no party did anvthinq followinq the filing of Custom's motion until Amerijet filed its application. In these circumstances, the answers filed by three of the parties and one nonparty to this proceeding should be rejected, and the three frequencies tentatively awarded to Custom should be awarded to Amerijet so that the Department can achieve the goals it hoped to achieve when it issued its Order to Show Cause.

Counsel: John Richardson, 202-371-2258, jrichardson@johnlrichardson.com


February 12, 2004

Reply of Florida West International Airways to Application of Amerijet International for an Exemption and Allocation of Frequencies

TradeWinds’ request to further delay this twenty month old proceeding so that it can decide whether to apply for frequencies in this proceeding or seek them in a Bankruptcy Court auction of Arrow’s assets should be denied. As Florida West pointed out in its answer filed yesterday, even Amerijet’s late- filed application for frequencies and an exemption authorizing service does not justify additional delay in a case that is on the verge of final action. The prospect that TradeWinds might file a competing application does not even rise to the level of Amerijet’s request. This case has been fully litigated and a thoroughly considered order to show cause has been issued. Valuable rights bargained for by the United States have lain dormant for far too long. It would unfair to the other parties, and a grossly inefficient use of the Department’s resources to postpone decision in this case any further. This is particularly true since the length of the delay is unknown. While TradeWinds indicates that the Bankruptcy Court is expected to decide how it will proceed on February 23, there can be no assurance that the Court will in fact make a final disposition at that time. Even if it did decide, further time would be necessary for the auction itself, and thus additional delay would be likely.

Counsel: Squire Sanders, Marshall Sinick, 202-626-6651, msinick@ssd.com


February 12, 2004

Reply of Tradewinds Airlines

Arrow and Atlas each indicate that they are interested in all or some of the available frequencies. Both suggest deciding the case on the existing record. Atlas, like Florida West, proposes postponing action on the three frequencies tentatively allocated to Custom Air. In Order 2003-8-11 the Department reached tentative conclusions concerning the allocation of the available frequencies. Except for the three frequencies proposed for Custom Air, no party has shown that the proposed allocation was in error. Florida West therefore renews its request that the Department immediately make the conclusions of Order 2003-8-11 final with respect to the remaining applicant carriers and commence appropriate proceedings to allocate the remaining three frequencies. This approach would put an end to the ongoing waste of twelve of the fifteen new frequencies, and allow the Department to consider the requests of Amerijet, Atlas, Arrow and, potentially, TradeWinds. This would be the fairest approach for all concerned and would offer the best opportunity to serve the public interest by enhancing U.S. carrier all-cargo service to Ecuador.

Counsel: Pierre Murphy, 202-776-3980, pmurphy@lopmurphy.com



Order 04-3-16
OST-02-12503 - US-Ecuador All-Cargo Frequencies

Issued and Served March 16, 2004

Final Order | Word

After careful review of the record, and in light of the fact that Custom Air has withdrawn its request for three frequencies in this proceeding, we have decided to make final our tentative decision in Order 2002-8-11, with certain modifications, to award the subject 15 weekly frequencies to U.S. carriers for scheduled U.S.-Ecuador all-cargo services, as follows: Atlas-6; Florida West-5; Evergreen-2; and Arrow-2. We will also award the requisite underlying exemption authority and certain route integration authority to Atlas and Evergreen for their proposed services. In addition, we will grant the motion of Custom Air to withdraw its application in this proceeding.

In our show-cause order in this proceeding, we recognized that the doubling of available frequencies (and the potentially even greater capacity expansion possible, in light of the elimination of the wide-body counting formula) presented a genuine market-opening opportunity. We stated that this opportunity is all the more meaningful given the long history of our restrictive bilateral relationship with Ecuador. Against this background, we tentatively concluded that the public interest was best served by allocating frequencies to the new-entrant applicants in this proceeding. We stated our belief that this approach would best promote competition, while providing a broad combination of service to shippers and significantly expanding the use of our bilateral rights.

By: Susan McDermott



May 13, 2004

Re: Letter from Evergreen Inernational Returning Frequencies

Rather than wait until the expiration of the 90-day start-up period, Evergreen is now returning the two frequencies allocated to it by the Department so that other U.S. airlines, such as Amerijet International, Inc. and Tradewinds Airlines which have evinced an interest in serving the route, have an opportunity to do so in a timely manner. Evergreen wishes to retain its exemption authority in the event that the market recovers and additional frequencies become available.

Counsel: Piper Rudnick, Williams Evans, 202-861-6459, bill.evans@piperrudnick.com



May 27, 2004

Application of Amerijet International for an Exemption and Allocation of Frequencies

If it is awarded the two U.S.‑Ecuador frequencies it seeks, Amerijet will provide service from its base in Miami to both Quito and iayaqui1 over a Miami‑Quito‑Guayaquil‑Miami routing. Amerijet's Miami service will be supported by its extensive beyond‑Miami road and interline connecting services, and its operations to and from Ecuador would be supplemented by ser‑:ices to other countries in the area that Amerijet has authority to serve.

Counsel: John Richardson, 202-371-2258, jrichardson@johnlrichardson.com


May 27, 2004

Application of Florida West International Airways for a Temporary Waiver of Start-Up Condition

Florida West International Airlines, Inc. hereby requests a waiver of the condition, imposed by Order 2004-3-16, which awarded FWIA five (5) U.S.-Ecuador scheduled all-cargo frequencies, requiring that FWIA commence U.S.-Ecuador schedule service within ninety (90) days of the Department’s decision. FWIA respectfully requests that the start-up period be extended through September 15, 2004 by which date FWIA is hopeful that it will have obtained the required corollary scheduled authority from the Government of Ecuador.

The Department has also granted a number of similar waivers as a result of delays experienced in obtaining corollary foreign government authority. See, e.g., Notice of Action Taken dated February 15, 2002 in Docket OST-2000-7153 (Gemini - Ecuador); Notice of Action Taken dated August 13, 2003 in Docket OST-2002-12683 (Evergreen - Brazil).

Counsel: Squire Sanders, Marshall Sinick, 202-626-6651, msinick@ssd.com



May 28, 2004

Application of Atlas Air for Waiver Start-Up Condition | Word

Atlas Air, Inc. requests a temporary waiver of the 90-day start-up condition attached to the Department’s award of U.S.-Ecuador frequencies in Order 2004-3-16, requiring Atlas to commence U.S.-Ecuador service on or before June 14, 2004. To accommodate what we believe will be a reasonable timetable for completing the on-going licensing process in Ecuador, Atlas asks that the Department extend the start-up period for an additional three months, through September 15, 2004.

Commencement of the Ecuadorian licensing process has been delayed by the failure on the part of the Foreign Affairs Ministry to notify the CNAC that Atlas holds the requisite U.S. government designation for the scheduled services Atlas intends to implement. Alas has been working diligently to effect that notification and has compiled all the documents necessary to satisfy the CNAC's licensing requirements. Because the process is complex, involving a public hearing, among other steps, Atlas anticipates that it will take several more months to complete.

Atlas has had longstanding interest in Ecuador, has operated charters there for several years and only recently completed the lengthy process of securing Ecuadorian rights to operate so‑called non‑regular services (essentially, a regular pattern of charter flights). Atlas is prepared to inaugurate scheduled service to Ecuador as soon as it receives the requisite Ecuadorian authority and, indeed, today regularly operates flights in and out of Ecuador pursuant to its existing authority.

Counsel: Atlas, Russell Pommer, 202-822-9121, rpommer@atlasair.com



June 8, 2004

Re: Polling Letter of FWIA

I am writing to advise the Department of Transportation of the results of the poll conducted in connection with Florida West International Airways, Inc.’s application for a temporary waiver of the startup condition, which was filed on May 27, 2004, in the above-captioned docket. FWIA served its application on all persons identified in the service list attached to the application.

FWIA has been advised that no carrier served with the application objects to extending the start-up period for FWIA’s U.S.-Ecuador scheduled all-cargo frequencies through September 15, 2004.

By: Elizabeth Collins



Filed May 27, 2004 and May 28, 2004 | Issued June 14, 2004

Notice of Action Taken | Word

We are granting the applications filed by Florida West and Atlas Air for waivers of the startup deadline imposed by Order 2004-3-16 in the 2002 U. S. All-Cargo Service Case, and are amending the startup deadline through September 15, 2004, for frequencies allocated to Florida West and Atlas Air in this matter.

We found that the requested waivers from the startup condition imposed on Florida West's and Atlas Air's award in Order 2004-3-16 were in the public interest in the circumstances presented; namely, that both of the carriers have indicated on the record that they are working to obtain the requisite Ecuadorian Government authority to commence services as soon as possible, and that no party has opposed their respective requests for waivers of the startup deadline.

By: Paul Gretch



OST-02-12503 - U.S.-Ecuador All-Cargo Frequencies
OST-04-18183 - For Allocation of Two U. S.-Ecuador All-Cargo Frequencies


June 14, 2004

Application or Re-Application of Arrow Air for Allocation of Two Additional U.S.-Ecuador All-Cargo Frequencies

Arrow Air, Inc. hereby applies or re-applies for allocation of two (2) U.S.-Ecuador all-cargo scheduled frequencies which have become available because Evergreen International Airways, Inc. has determined not to use the frequencies awarded to it in Order 2004-3-16, served March 16, 2004 in the above-captioned proceeding, and has returned them to the Department of Transportation. Arrow requests that it be granted these frequencies subject to the same terms and conditions under which its current authority has been issued.

Arrow previously applied for five additional frequencies in the proceeding and was granted two. If the Department determines that Arrow's application for the remaining frequencies has been dismissed, then this application represents a re-application for the frequencies it previously requested in this case, or, in the alternative, is a new application for allocation of said frequencies.

Ecuador has been a major market for Arrow and Arrow is desirous of maintaining its market share. Of the fifteen available frequencies prior to this case, Arrow had been awarded and was using five. When the number of frequencies was increased by fifteen to a total of thirty, Arrow applied for an additional five frequencies to maintain its historic position. Initially the Department denied Arrow's request but after reconsideration, and after Custom Air Cargo withdrew its application, the Department awarded Arrow two additional frequencies for a total allocation of seven.

The DC‑10 aircraft are currently under an ACMI lease from Gemini Air Cargo and Centurion Air Cargo. These aircraft are currently being used in the Ecuador market at the present time.

Counsel: Lawrence Wasko and Jacquelyn Gluck, 202-331-0599, ldwasko@erols.com and jngluck@erols.com


June 14, 2004

Answer of Arrow Air in Opposition to Amerijet Application for Exemption and Allocation of Frequencies

Amerijet's attempt to resurrect or breath new life into an application that was rejected by the Department is without merit and should be denied. If the Department determines to make a further allocation of the frequencies returned to it by Evergreen International Airlines in this proceeding, then Arrow submits that all of its arguments opposing the February 6, 2004 application are fully applicable to the Amerijet May 27, 2004 application and it respectfully incorporates by reference herein the Answer of Arrow Air, Inc. In Opposition to Amerijet filed February 11, 2004 in this case, and hereby makes it a a part hereof.

Amerijet has heretofore had no interest in the U.S. ‑Ecuador cargo market. It acknowledges that it has not had previous activity. Its sudden interest, claimed in its application, must be examined, however, as to its source and authenticity. On information and belief Arrow herein asserts that Amerijet has operated no flights to Ecuador in the recent past.

Counsel: Lawrence Wasko and Jacquelyn Gluck, 202-331-0599, ldwasko@erols.com and jngluck@erols.com


June 14, 2004

Application of Arrow Air for Waiver Start-Up Condition

Arrow Air, Inc. hereby requests a temporary waiver of the 90-day start-up condition on the two frequencies it was awarded by the Department of Transportation in the U.S.-Ecuador All-Cargo Service Case. Because Arrow already holds the requisite Ecuadorian authority to operate to Ecuador, Arrow did not expect to encounter difficulty in securing authority for an additional two frequencies. Arrow has been informed through its counsel in Ecuador, that the Ecuadorian civil aviation authorities have not been informed of Arrow's authority to operate additional scheduled frequencies to Ecuador.

Arrow has just been informed, as of the date of this application, that the Ecuadorian civil aviation authorities are unable to locate documents issued by the US Department of Transportation that evidence Arrow Air Inc.'s authority to operate scheduled service to Ecuador.

Counsel: Lawrence Wasko and Jacquelyn Gluck, 202-331-0599, ldwasko@erols.com and jngluck@erols.com



June 23, 2004

Reply of Amerijet International

Counsel: John Richardson, 202-371-2248, jrichardson@johnlrichardson.com



OST-02-12503 - US-Ecuador All-Cargo Frequencies
OST-04-18183 - Allocation of Two US-Ecuador All-Cargo Frequencies

June 29, 2004

Answer of Amerijet International

It is hard to understand how, when the Department's stated purpose was to increase competition through the addition of more scheduled all‑cargo competitors in this market, Arrow can now contend that the public interest requires preservation of the market share ‑‑ measured by frequencies ‑‑ that Arrow had historically enjoyed. Arrow offers no argument explaining how its request and the Department's decision can be reconciled and, of course, it cannot.

It is especially noteworthy that Arrow offered no evidence with respect to its current financial condition, even though such information must have been developed as part of the reorganization process. But Arrow provided nothing. Neither did it even refer the parties to any operational or financial materials which could be noticed by the Department under Rule 24(g). And the reason for this failure is important. Arrow remains out of compliance with its regulatory obligation to file financial reports with the Department. In fact, it appears that Arrow has not filed any required reports with the Department since December 2002.

Counsel: John Richardson, 202-371-2258



OST-02-12503 - US-Ecuador All-Cargo Frequencies
OST-04-18183 - Arrow Air - Allocation of Two US-Ecuador All-Cargo Frequencies

July 9, 2004

Reply of Arrow Air to Answer of Amerijet International

In the original case, Docket OST-2002-12503, Arrow requested five frequencies. Only when another applicant determined it could not use the three frequencies granted to it did the Department award two of those frequencies to Arrow. (The other was awarded to Atlas Air, Inc. See Final Order 2004-3-16). Now, after final decision in the proceeding, another successful applicant has decided it cannot use its allocation of two frequencies and surrendered them to the Department resulting in Arrow's application. If successful Arrow would still only have been awarded a total of four of the five frequencies for which it originally applied.

Amerijet was not a participant in the original case, and notwithstanding that the Department rejected its attempt to late file an application in the proceeding, far out of time, it is attempting to block an award to Arrow.

Counsel: Lawrence Wasko, 202-331-0599, ldwasko@erols.com



Filed June 14, 2004 | Issued July 13, 2004

Notice of Action Taken | Word

On June 14, 2004, Arrow filed an application in the above-captioned docket for a waiver of the startup condition imposed by Order 2004-3-16, and asked that the startup period be extended for an additional 90 days.  Arrow stated that it was just informed, “as of the date of this application,” that the Ecuadorian civil aviation authorities have been unable to locate documents issued by the U.S. Department of Transportation that evidence Arrow’s authority to operate the subject frequencies.  Arrow explained that, as an incumbent carrier already providing scheduled services to Ecuador, it did not expect to encounter difficulty in obtaining the requisite authority to provide the additional services authorized.  Arrow stated that, in the circumstances presented, it is in the public interest to grant the start-up waiver requested.

We have granted the application filed by Arrow for a waiver of the start-up deadline imposed by Order 2004-3-16 in the 2002 U.S.-Ecuador All-Cargo Service Case, and have amended the start-up deadline through September 15, 2004, for frequencies allocated to Arrow in this matter.  We also granted Arrow, sua sponte, an interim waiver of the start-up deadline from June 14, 2004, until July 13, 2004, as the answer date for Arrow’s late-filed application had not passed, nor had Arrow completed polling all parties, before the June 14 start-up deadline. 

Arrow’s extension of the start-up deadline is effective through September 15, 2004, or until the date on which Arrow begins service with each of its allocated frequencies, whichever occurs earlier.  As to any frequency with which Arrow does not begin service by September 15, 2004, its allocation with respect to that frequency will expire automatically.

By: Paul Gretch



Dated July 13, 2004 | Served July 16, 2004

Notice Inviting Applications | Word

By letter dated May 13, 2004, Evergreen gave notice to the Department that it does not intend to implement its proposal to use two all‑cargo frequencies. Thus, two U.S.‑Ecuador all‑cargo frequencies are now available for reallocation by the Department. Before we decide to award the available frequencies, to ensure that we have applications from all interested carriers, we request that all U.S. carriers interested in making use of the available frequencies file applications, as specified below, with the Department no later than July 30, 2004. Answers to applications should be filed by August 6, 2004, and replies should be filed by August 11, 2004.

By: Paul Gretch



July 30, 2004

Supplement to Application of Amerijet International for an Exemption and Allocation of Frequencies

Amerijet proposes to operate two scheduled all‑cargo flights each week in the U.S.‑Ecuador market, the maximum available to a new entrant. Amerijet's scheduled service will be designed to supplement and support its recently sanctioned all‑cargo charter services, which should begin later this summer. Current plans anticipate scheduled service flights on Wednesdays and Saturdays. The Wednesday flight will originate at Miami and serve Panama City, Quito and Manta before returning to Miami. The Saturday flight will also originate in Miami and will operate over a Panama City‑Quito‑Guayaquil‑Miami routing. This initial schedule pattern will complement and take advantage of Amerijet’s extensive beyond‑Miami road and interline connecting services. Amerijet will be flexible in scheduling its flights and will change its schedules to accommodate new and different demand for intermediate point service as it may arise.

Counsel: John Richardson, 202-371-2258, jrichardson@johnlrichardson.com



August 6, 2004

Answer of Amerijet Inetrnational to the Application of Arrow Air

The record remains silent with respect to the deficiencies noted by Amerijet and the additional information regarding schedules, rotations and aircraft utilization specifically requested by the Department. Accordingly, the Arrow application is deficient and unsupported and should not be given further consideration by the Department. Rather, the Department should reaffirm the guiding principles it announced in its order to Show Cause and provide for the allocation of the two available frequencies to Arnerijet, a new competitor in the market.

Counsel: John Richardson, 202-371-2258, jrichardson@johnlrichardson.com


August 6, 2004

Answer of Arrow Air to Supplement and Application of Amerijet International for an Exemption and Allocation of Frequencies

Ecuador comprises approximately 20% of Arrow's scheduled service in Latin America. Arrow has been serving Ecuador longer than any other U.S. carrier. Arrow and UPS currently are allocated the same number of frequencies - seven - with Arrow operating DC-10 aircraft while UPS operates B767's. While there are a number of authorized carriers in the market, there are actually only four highly competitive participants: UPS, Arrow, TAMPA and Lan Chile. The reality of the marketplace discloses that Florida West, an ostensible U.S. flag operator with 5 frequencies, is closely affiliated with Lan Chile; Atlas, with 6 frequencies, provides ACMI B-747 service for Lan Chile; and finally Gemini, with 3 frequencies, provides DC-10 service for both TAMPA and Lan Chile. The reality is that UPS has 7 frequencies, Arrow has 7 frequencies and Lan Chile has up to 14 frequencies. Arrow needs the additional available two frequencies to try to remain competitive with Lan Chile in the Ecuador-U.S. market.

Amerijet would not provide needed competition for the benefit of U.S.-Ecuador shippers. The shipping community exporting flowers out of Quito already has significant competitive service available. The smaller, narrow-bodied aircraft service proposed by Amerijet would be of limited value for shippers and, significantly, the full capacity of the aircraft would not be devoted to the U.S.-Ecuador markets.

Counsel: Lawrence Wasko and Jacquelyn Gluck, 202-862-4370, ldwasko@erols.com and jngluck@erols.com



August 11, 2004

Reply of Amerijet International

Arrow only recently emerged from reorganization and, according to published trade press reports, it has new owners, a new business plan, new (and fewer) employees and different equipment than it had before it entered reorganization. In these circumstances, Arrow cannot and should not simply rely on past experience to show it can do what it proposes to do in a way that will benefit the shipping public and not put them at risk. Rather, it is and has been incumbent upon Arrow to present probative evidence to demonstrate to the satisfaction of the Department that it is capable of providing the services it seeks authority to provide.

Counsel: John Richardson, 202-371-2258, jrichardson@johnlrichardson.com


August 11, 2004

Reply of Arrow Air to Answer of Amerijet International

There is no merit to any of the arguments presented by Amerijet in opposition to the rant of Arrow's application. In summary, Amerijet claims a preference because it would be a "new entrant" compared to Arrow's status as an "incumbent" and argues Arrow is not fit; and claims that Arrow's application is incomplete. Amerijet's representations are incorrect.

Counsel: Lawrence Wasko and Jacquelyn Gluck, 202-862-4370, ldwasko@erols.com and jngluck@erols.com



September 9, 2004

Application of Florida West International Airways for a Second Waiver of Start-up Condition

Florida West International Airways, Inc. respectfully requests a second temporary waiver of the start-up conditions set forth in the Department’s decision (Order 2004-3-16) in the above-referenced proceeding. That decision awarded, inter alia, FWIA weekly scheduled all-cargo frequencies in the U.S.-Ecuador market. The Department’s Notice of Action Taken, dated June 14, 2004, postponed the initial start-up date from June 15 to September 15, 2004. FWIA had hoped that the Ecuadorian Consejo Nacional de Aviación Civil would by now have issued the required scheduled service authorization. However, it is now certain that process will not be completed before September 15, 2004. FWIA is therefore obliged to request another postponement until December 1, 2004.

FWIA wants to assure the Department that FWIA has been diligently pursuing its request before the CNAC for scheduled all-cargo authority. The next milestone in that process will be a September 22 hearing. FWIA, however, does not know how long after that hearing it may take the CNAC to issue a final decision and, for that reason, FWIA is now requesting a postponement until December 1.

Counsel: Squire Sanders, Marshall Sinick, 202-626-6651, msinick@ssd.com



September 9, 2004

Re: FWIA Polling Letter

I am writing to advise the Department of Transportation of the results of the poll conducted in connection with Florida West International Airways, Inc.’s Application for a Second Waiver of Start-Up Condition, which was filed earlier today in the above-captioned docket. FWIA served its application on all persons identified in the service list attached to the application.

FWIA has been advised that no carrier served with the application objects to extending the start-up period for FWIA’s U.S.-Ecuador scheduled all-cargo frequencies through December 1, 2004.

Counsel: Squire Sanders, Elizabeth Collins, 202-626-6207, ecollins@ssd.com


September 10, 2004

Application of Atlas Air for Waiver of Start-Up Condition

Since obtaining that waiver, Atlas has diligently prosecuted its permit application. Atlas has submitted all the required documentation and obtained the necessary final report of the Dirección General de Aviación Civil. The CNAC, however, still must schedule the Atlas application for consideration at a public hearing and, thereafter, approve the application and issue a permit to Atlas. Our attorney in Ecuador anticipates that this process may take an additional 60-75 days.

Atlas has had longstanding interest in Ecuador, has operated charters there for several years and only recently completed the lengthy process of securing Ecuadorian rights to operate so-called non-regular services (essentially, a regular pattern of charter flights). Atlas is prepared to inaugurate scheduled service to Ecuador as soon as it receives the requisite Ecuadorian authority and, indeed, today regularly operates flights in and out of Ecuador pursuant to its existing authority. It is therefore in the public interest to give Atlas additional time to obtain the new permit necessary to start scheduled service.

Counsel: Atlas, Russell Pommer, 202-822-9121, rpommer@atlasair.com



September 10, 2004

Re: Polling Letter (Atlas Air) | Word

Earlier today, Atlas Air, Inc. filed an application for a further waiver of the 90-day start-up condition attached to the Department’s award of U.S.-Ecuador frequencies, bringing the new start-up deadline to December 1, 2004. We have polled the carriers served with the application (American, Continental, Delta, Northwest, United, FedEx, UPS, Gemini, Evergreen, Amerijet, Arrow, Custom Air and Florida West) and have been authorized to state that none objects to the Atlas request

Counsel: Atlas, Russell Pommer, 202-822-9121, rpommer@atlasair.com



Filed September 9, 2004 (FWIA) and September 10, 2004 (Atlas) | Issued September 14, 2004

Notice of Action Taken | Word

We grant the applications filed by Florida West and Atlas Air for waivers of the startup deadline imposed by Order 2004-3-16 in the 2002 U.S.-Ecuador All-Cargo Service Case, and amend, through December 1, 2004, the startup deadline for the frequencies allocated to Florida West and Atlas Air in this matter.

In taking this action, we found that grant of the requested waivers was in the public interest in the circumstances presented; namely, that both of the carriers have indicated on the record that they are diligently working to obtain the requisite Ecuadorian Government authority, and that no party opposed their respective waiver requests here.

By: Paul Gretch



November 12, 2004

Application of Atlas Air for Waiver of Start-Up Condition

In its September 10, 2004 start-up waiver application, Atlas indicated that the next step in the process was to be a public hearing about its pending application. That hearing in fact was held and resulted in issuance of the attached CNAC resolution authorizing Atlas to perform scheduled operations. The authorization will not be finalized until Atlas has completed its presentation of the requisite technical documents, including a local bank warranty in favor of the Government of Ecuador and modified Ecuadorian operations specifications.

Atlas is preparing the required documents for submission, but does not think the process will have been completed by December 1, 2004, the current start-up deadline. To secure needed additional time, Atlas seeks an additional 45-day waiver of the start-up deadline, to January 15, 2005.

Counsel: Atlas, Russell Pommer, 202-822-9121, rpommer@atlasair.com



November 17, 2004

Application of Florida West International Airways for a Third Waiver of Start-Up Condition

FWIA has been diligently pursuing its request before the CNAC for scheduled all– cargo authority. On September 22, 2004, the CNAC held a hearing about its pending application. As a result of that hearing, the CNAC on October 7, 2004 issued a tentative "favorable acceptance" authorizing FWIA to perform scheduled service. That authorization, however, will not be finalized until FWIA finishes presenting the required technical documents particularly including several operations specifications amendments. Although FWIA is preparing the necessary documents for submission to the CNAC, that process will not be complete by December 1, the current start‑up deadline. Therefore, FWIA is now requesting a postponement until January 15, 2005, in which to start scheduled service.

Counsel: Squire Sanders, Marshall Sinick, 202-626-6651, msinick@ssd.com



November 19, 2004

Re: Atlas Air Polling Results

On November 12, 2004, Atlas Air, Inc. filed an application for a further waiver of the 90-day start-up condition attached to the Department’s award of U.S.-Ecuador frequencies, bringing the new start-up deadline to January 15, 2004.  We have polled the carriers served with the application (FedEx, UPS, Gemini, Amerijet, Arrow and Florida West) and have been authorized to state that none objects to the Atlas request.

Because the current start-up condition requires service inauguration by December 1, 2004, Atlas requests that the Department grant the waiver extension request as soon as possible.

Counsel: Atlas, Russell Pommer, 202-822-9121, rpommer@atlasair.com



Filed November 12 and 17, 2004 | Issued November 30, 2004

Notice of Action Taken | Word

Waiver of startup deadline in Order 2004-3-16 for U.S.-Ecuador all-cargo services (Atlas)

Waiver of startup deadline in Order 2004-3-16 for U.S.-Ecuador all-cargo services (FWIA)

By: Paul Gretch



January 10, 2005

Application of Atlas Air for Further Waiver of Start-Up Condition | Word

Atlas has been working diligently to complete the Ecuadorian licensing process and is now almost ready to start scheduled service.  The only regulatory task remaining is to provide Ecuador with an Atlas official’s signature on the Ecuadorian operations specifications.  Atlas had thought it could transmit a copy electronically but has been informed that Ecuador requires the original.  The process will take several days.

Even under the most optimistic view, it is not possible for Atlas to have started service and operated six flights by Saturday.  To provide additional time for the referenced document transfer and to allow for other unforeseen events, Atlas requests a further startup waiver through January 31, 2005.

Counsel: Atlas, Russell Pommer, 202-822-9121, rpommer@atlasair.com


January 10, 2005

Re: Polling Results Letter

Earlier today, Atlas Air, Inc. filed an application for a short further waiver of the startup condition attached to the Department’s award of U.S.-Ecuador exemption authority and frequencies, to January 31, 2005.  We have polled the carriers served with the application (FedEx, UPS, Gemini, Amerijet, Arrow and Florida West) and have been authorized to state that none objects to the Atlas request.

Because the current start-up condition requires service inauguration by this Saturday, January 15, Atlas requests that the Department grant the waiver extension request as soon as possible.

Counsel: Atlas, Russell Pommer, 202-822-9121, rpommer@atlasair.com



Filed January 10, 2005 | Issued January 14, 2005

Notice of Action Taken | Word

On January 10, 2005, Atlas filed an application in the captioned docket for a waiver of the startup condition imposed by Order 2004-3-16, and asked that the startup period be extended for an additional period through January 31, 2005. Atlas states that it has been working diligently to complete the Ecuadorian licensing process and is almost ready to start the scheduled service. Atlas further states that the only regulatory task remaining is to provide Ecuador with an Atlas official’s signature on the Ecuadorian operations specifications. Atlas states that while it thought it could transmit a copy electronically, it has been informed that Ecuador requires the original document, a process which will take several days. To provide for additional time for the referenced document transfer and to allow for other unforeseen events, Atlas requests a further startup waiver through January 31, 2005.

Extension of the startup deadline is effective through January 31, 2005, or until the date on which Atlas begins service with their allocated U.S.-Ecuador frequencies, whichever occurs earlier. As to any frequency with which Atlas does not begin service by January 31, 2005, the allocation with respect to that frequency will expire automatically and revert to the Department for reallocation.

By: Paul Gretch



January 26, 2005

Application of Atlas Air for Further Waiver of Start-Up Condition | Word

Earlier in the month, when Atlas filed its last start-up waiver request, it thought the Ecuadorian licensing process would be completed within two weeks. Unfortunately, that has turned out not to be the case. Legal counsel in Quito recently has advised that completion of the process now requires Ecuadorian Consejo Nacional de Aviación Civil and Dirección General de Aviación Civil review and approval of Atlas’ bank warranty, plus subsequent passage and issuance of a CNAC resolution of final approval. Ecuadorian counsel is hopeful those steps can be accomplished within 30 days. Atlas is seeking an additional month to account for further unexpected delays.

Atlas regrets having to make this request so soon after submitting its last start-up waiver request. It did not anticipate these difficulties. In further support of this request, Atlas would note that the present situation is unlike the normal start-up waiver situation, where a U.S. carrier seeks to postpone the commencement of new flights in a new market. Here, Atlas is already operating a regular pattern of Ecuador charter flights and plans to upgrade those to scheduled service as soon as Ecuador grants the final scheduled license.

Counsel: Atlas, Russell Pommer, 202-822-9121, rpommer@atlasair.com



January 26, 2005

Re: Polling Letter (Atlas Air) | Word

Earlier today, Atlas Air, Inc. filed an application for a further waiver of the startup condition attached to the Department’s award of U.S.-Ecuador exemption authority and frequencies, to March 31, 2005. We have polled the carriers served with the application (FedEx, UPS, Gemini, Amerijet, Arrow and Florida West) and have been authorized to state that none objects to the Atlas request.

Counsel: Atlas, Russell Pommer, 202-822-9121, rpommer@atlasair.com



Filed January 26, 2005 | Issued January 27, 2005

Notice of Action Taken | Word

We grant the application filed by Atlas Air for a waiver of the startup deadline imposed by Order 2004-3-16 in the 2002 U.S.-Ecuador All-Cargo Service Case, and extend, through March 31, 2005, the startup deadline for the frequencies allocated to Atlas Air. In taking this action, we find that grant of the requested waiver is in the public interest in the circumstances presented; namely, that the carrier has indicated on the record that it continues to work diligently to complete the Ecuadorian licensing process, and that no party opposed the waiver request here.

By: Paul Gretch



Order 2005-2-6
OST-2002-12503

Issued and Served February 8, 2005

Order to Show Cause

We have tentatively decided to select Amerijet and allocate it two weekly frequencies for all‑cargo services in the U.S.‑Ecuador market. In addition, we have tentatively decided to award backup authority to Arrow.

Both Arrow and Amerijet would use both available frequencies, and both carriers would serve from Miami, the largest U.S. gateway to Ecuador. The record shows, however, that Amerijet's use of the two frequencies would provide service to a greater number of points in Ecuador than would Arrow. Amerijet would serve three points in Ecuador (Quito, Guayaquil, and Manta) compared to one point (Guayaquil) for Arrow. In addition, the record shows that Amerijet would be a new-entrant carrier in the U.S.-Ecuador market. Thus, allocating the two frequencies to Amerijet would add a new choice of air carrier for the benefit of the shipping public. Based on these tentative findings, we have tentatively concluded that Amerijet's proposal would offer the greatest public benefits in this case.

By: Karan Bhatia



Order 2005-4-11
OST-2002-12503

Issued and Served April 12, 2005

Final Order

We have decided to make final our tentative decision since no objections were filed. Specifically, we have decided to make final our tentative decision to select Amerijet and allocate it two weekly frequencies for all-cargo service in the U.S.-Ecuador market. In addition, we have decided to make final our tentative decision to grant Arrow backup authority. Consistent with our standard practice, the backup authority will remain in effect for a period of one year, and will be activated automatically in the event that Amerijet fails to inaugurate or maintain its proposed service

By: Karan Bhatia



June 17, 2005

Application of Amerijet International for Waiver of Start-Up Condition

Amerijet aslo commenced the local licensing process, the functional equivalent of the Part 129 process foreign air carriers use when seeking authority to serrved the US. Amerijet has been advised that the process is moving fowrward effectively, but it is not yet complete. Based on the most reliable information presently available, the scheduled authority Amerijet is seeking will not have been finished by July 11.

Counsel: John Richardson, 202-371-2258, jrichardson@johnlrichardson.com



June 28, 2005

Answer of Arrow Air to Application of Amerijet International for Waiver of Start-Up Condition

In contrast to Amerijet, there is no question but that Arrow can and will use the two frequencies to supplement its existing schedule in Ecuador. It will implement the frequency allocation within the time limits set by the Department. In this connection, Arrow currently provides scheduled all‑cargo service to Ecuador. The shipping public will benefit with the use of the available frequencies by a carrier ready, willing and able to make use of them. Arrow's back up award should be allowed by the Department to become effective upon the failure of Amerijet to timely implement service.

A review of the pleadings and applications in this case to date confirm Arrow's arguments that Amerijet cannot and will not provide needed competition for the benefit of U.S.‑Ecuador shippers. Amerijet has no presence, even now, in Ecuador. Its claims to be in the process of starting charter service (by September, 2004) have not been fulfilled. Its proposals to add DC‑10 aircraft to its fleet have remained proposals. Amerijet is no closer now to providing new competitive service in Ecuador than it was when the Department issued its Order to Show Cause and then its Final Order in this case.

Counsel: Lawrence Wasko, 202-862-4370, ldwasko@erols.com



July 5, 2005

Reply of Amerijet International

Arrow's answer in opposition to Amerijet's request is little more than a thinly veiled petition for reconsideration of the Department's final order. In its answer, Arrow once again attempts to claim exclusive dominion over the US-Ecuador scheduled all-cargo market despite the Department's unequivocal rejection of Arrow's claim only tow and half months eralier.

Arrow's answer is hard to fathom. The carrier seems so intent on resisting new competition from Amerijet that it virtually accuses Amerijet of deciet and an abuse of the regulatory process by failing to have its Ecuadorian scheduled all-cargo service authority in place withinthree months after its DOT award became final. Arrow even suggests that Amerijet does not intend to serve the US-Ecuador all-cargo market and never intended to. Arrow alleges that Amerijet refused to do what was necessary to implement its new authority and would not be in a position to do so at any measurable time in the future.

Counsel: John Richardson, 202-371-2258, jrichardson@johnlrichardson.com



July 7, 2005

Motion of Arrow Air for Leave to File and Response to Reply of Amerijet International

Amerijet's rhetoric fails to rebut Arrow's representations that Amerijet provided no factual support for its application to waive the 90 day start up condition. Amerijet does not acknowledge that Arrow is the holder of a back up award, granted in the same order that issued the conditional authority to Amerijet. Arrow has not made any misrepresentation of any facts. Amerijet has failed to comply with the timelines established by the Department and there is no factual support that a further extension of time would be beneficial to the public.

Counsel: Lawrence Wasko, 202-862-4370, ldwasko@erols.com


Filed June 17, 2005 | Issued July 7, 2005

Notice of Action Taken | Word

By Order 2005-4-11, we decided to award Amerijet rather than Arrow two unallocated frequencies for all-cargo service between the U.S. and Ecuador. We fully set forth our reasons in our tentative decision (Order 2005-2-6) as to why we believed that the public interest warranted Amerijet's selection. We continue to believe that the introduction of Amerijet's new scheduled Ecuador service will be in the public interest. We had hoped that Amerijet would have been able to commence these operations within the timeframe of our standard 90-day start-up condition. While it has not done so, we believe that it has provided a basis on the record for us to conclude that it is actively working to begin its new scheduled service. In these circumstances, we shall grant Amerijet the waiver it requests. However, we are putting Amerijet on notice that there should be no expectation that an additional request will similarly be granted. As is our policy in considering waiver requests, we reserve the right to reexamine whether grant of this waiver continues to be in the public interest. Any future request to extend the waiver for the frequencies at issue here will have to be considered in light of the specific arguments offered and responses thereto, and in the context of the circumstances present at that time, including whether another carrier seeks to use the frequencies at issue.

Amerijet's waiver is effective through October 11, 2005. As to any frequency with which Amerijet does not begin service by that date, its allocation with respect to that frequency will expire automatically.

By: Paul Gretch



June 6, 2005

Re: Atlas Air and Polar U.S.-Ecuador All-Cargo Frequencies

We are seeking DOT approval of the transfer of Atlas' scheduled rights in the U.S.-Ecuador market to Polar Air Cargo, Inc. as part of the corporate strategy of their common parent, Atlas Air Worldwide Holdings, Inc., to increase functional efficiencies by merging Atlas operationally into Polar, with the surviving certificated air carrier doing business under both the Atlas and Polar brands. Atlas and Polar have been evaluating their commercial needs for Ecuador frequencies in connection with the carrier realignment and have ascertained that four weekly frequencies ought to be sufficient going forward. Accordingly, and to facilitate full use of valuable bilateral rights by other carriers, Atlas is herein relinquishing the remaining two Ecuador frequencies.

By: Russell Pommer

OST-2005-21441 - Atlas and Polar Transfer of Ecuador Frequencies



August 8, 2005

Application of Amerijet International for Allocation of Frequencies

Amerijet will provide additional services in the market from its base in Miami to Quito, Guayaquil and Manta as the markets develop and as demand dictates. Amerijet's Miami service will be supported by its extenisve beyond-Miami road and interline connecting services, and its operations to and from Ecuador will be supplemented by services to and from other countries in the area that Amerijet has authority to serve.

Amerijet's services will be provided with freighter aircraft currently available to it or that may become available to it in the future. Amerijet has and is using Boeing 727-200 freighters to serve the U.S.-Ecuador market. Pursuit of its goal of acquiring access to a larger freighter equipment is progressing well so that when the need is established, Amerijet will be albe to accomodate the market with the most suitable equipment available.

Counsel: John Richardson, 202-371-2258, jrichardson@johnlrichardson.com



August 29, 2005

Letter Expressing Interest in US-Ecuador Market

This is to advise the Department that Centurion Air Cargo, Inc. has an interest in securing the two weekly scheduled all-cargo frequencies that recently became available in the U.S.-Ecuador market. Centurion intends to file an application for exemption authority in the market within the next several days.

Counsel: Zuckert Scoutt, William Callaway, 202-298-8660



OST-2002-12503 - US-Ecuador All-Cargo
OST-2005-22422 - Miami-Ecuador All-Cargo

Served September 15, 2005

Notice Inviting Applications | Word

By this notice we request that all U.S. carriers interested in new or additional frequencies for all-cargo scheduled services to Ecuador file applications, as specified below, with the Department no later than September 30, 2005.

While there are no limitations on the number of U.S. all-cargo carriers that may provide scheduled all-cargo services to Ecuador under the U.S.-Ecuador aviation agreement, there are limitations on the number of weekly frequencies that may be provided. U.S. all-cargo carriers are limited to 30 weekly frequencies. Current frequency allocations for U.S. carriers are as follows: United Parcel Service – 7; Arrow Air – 7; Gemini Air Cargo – 3; Atlas Air – 4; Amerijet – 2; and Florida West – 5. The remaining 2 frequencies are currently unallocated as outlined below.

By Order 2004-3-16, served on March 16, 2004, in the above-captioned docket, the Department awarded Atlas Air six frequencies to operate allcargo services in the U.S.-Ecuador market. By letter dated June 6, 2005, in the above-captioned docket, Atlas Air gave notice that it has relinquished two of its six frequencies for reallocation by the Department. Thus, two U.S.-Ecuador all-cargo frequencies are now available for reallocation by the Department. Before we decide to award the available frequencies, to ensure that we have applications from all interested carriers, we request that all U.S. carriers interested in making use of the available frequencies file applications, as specified below, with the Department no later than September 30, 2005. Answers to applications should be filed by October 7, 2005, and replies should be filed by October 13, 2005.

By: Paul Gretch



September 30, 2005

Supplement to Application of Amerijet International for an Allocation of Frequencies

Amerijet will continue its service over a Miami-Panama City-Guayaquil-Quito routing with the two new frequencies it is seeking serving each of the markets included within this schedule pattern. Because of tis extensive beyond-Miami air and ground connecting system, Amerijet will also be able to link the rest of the US beyond Miami to these important new markets with convenient efficient individually waybilled services. The Manta market remains of great interest to Amerijet but in all likelihood will not be served until Amerijet is more firmly established wiht more weekly frequencies in the primary Ecuadorian markets.

All Amerijet flights will originate and terminate at Amerijet's Miami hub where they can take advantage of Ecuador's largest cargo origin and destination point as well as Amerijet's extensive air/ground connections to the rest of the country and the world. Flight routings will, in all cases, be Miami-Panama City-Guayaquil-Quito-Panama City-Miami.

At the present time, Amerijet's scheduled service offers flights over the routing described above every Tuesday and Friday. With two more weekly frequencies, Amerijet will add one regular scheduled flight on Wednesdays and a second on Saturdays.

As a traditional common carrier holding out scheduled individually waybilled service to the shipping public, Amerijet depends principlally on its fleet of Boeing 727-200 freighters and would continue to do so in providing enhanced service in the US-Ecuador market.

Counsel: John Richardson, 202-371-2258, jrichardson@johnlrichardson.com



September 30, 2005

Supplement No. 1 to Application of Centurion Air Cargo for an Exemption and Allocation of Frequencies

Centurion proposes to operate two scheduled all-cargo flights each week in the Miami-Quito and Miami-Guayaquil markets. The flights would operate on Mondays and Saturdays of each week and would operate over the following routing: Miami-Quito-GuayaquilMiami. The services will be operated on a year-round basis.

Centurion has firm plans to begin service to Ecuador and expects to inaugurate service in the Miami-Quito-Guayaquil-Miami market as soon as possible - and in any event within thirty days - after obtaining the necessary approvals from the Ecuadorian authorities. The Company is willing to accept the standard 90-day startup and dormancy conditions that the Department previously has placed on U.S.-Ecuador frequencies.

Counsel: Zuckert Scoutt, William Callaway, 202-298-8660, whcallaway@zsrlaw.com

Centurion's Application for an Exemption and Allocation of Frequencies - 09/08/05


October 3, 2005

Application of Amerijet International for Waiver of Start-Up Condition

On July 7, 2005, the Department issued a Notice of Action Taken granting Amerijet International, Inc. a temporary waiver of the start-up condition attached to the Department's award to Amerijet of US-Ecuador exemption authority and two frequencies. That Notice extended the start-up period for an additional three months, through October 11, 2005, to give Amerijet the opportunity to complete the licensing process in Ecuador. Amerijet respectfully requests an additional ninety days in order to complete that process.

Amerijet is hopeful that it will have completed the license process before the Ecuadorian authorities within the period of the extended waiver it is seeking here. Amerijet will advise the Department and all parties if it is not able to execute this plan under the schedule it contemplates.

Counsel: John Richardson, 202-371-2258, jrichardson@johnlrichardson.com



October 6, 2005

Answer of Arrow Air, Inc. in Opposition to Application for Amerijet for Waiver of Start-Up Condition | Word

Arrow Air, Inc. is opposed to the grant to Amerijet International, Inc. of a further extension of time to commence Ecuador all-cargo scheduled service using the two frequencies allocated to it.  The public interest would be better served if the back- up authority awarded by the Department of Transportation to Arrow for the two frequencies is allowed to become effective on October 11, 2005.

In granting Amerijet a waiver of the standard 90-day start-up condition, the Department stated that “we are putting Amerijet on notice that there should be no expectation that an additional request will be granted.”  See Notice of Action Taken – Docket OST-2002-12503, issued July 7, 2005.  It would seem that Amerijet has not taken the Department’s warning seriously, filing its further waiver application only a few days before the time to commence service is set to expire.  Nevertheless, the Department must consider the current circumstances including the fact that Arrow can use of the two available frequencies to the benefit of the shipping public.  The Department should weigh the fact that Amerijet, in the interim since the grant of the last waiver of the start-up condition, has commenced charter cargo services to Ecuador.  Amerijet is operating to Ecuador and is a competitor in the market, notwithstanding that it is not using the scheduled service frequencies.  Amerijet alleges that it currently operates in excess of the two round trips frequencies allocated to it between Miami and Guayaquil and Quito.  See Application of Amerijet International, Inc. for Allocation of Frequencies, filed August 8, 2005 in this Docket.  It can be reasonably concluded that denial of the requested waiver will not result in any diminution of competition but on the contrary will result in the timely use, by Arrow, of the available frequencies.

Counsel: Lawrence Wasko, 703-356-8010, ldwasko@erols.com


October 6, 2005

Reply of Amerijet International

Once again, Arrow Air, Inc. approaches the Department with the strangest of contentions in its long-running effort to keep Amerijet International, Inc. out of the US-Ecuador scheduled all-cargo market. As before, the Department should reject Arrow's unfounded, illogical, and internally inconsistent attacks against its newest competitor in the market.

It must be recalled that Arrow has not accused Amerijet of any wrongful act of omission or commission. Its only argument is that beacause the Government of Ecuador has not fully completed its revew of Amerijet's application before the Department's extended start-up date arrived, Amerijet should be eliminated from the market, and the Department should turn its back on the good reasons it relied upon when it selected Amerijet over Arrow in the first place.

Arrow's answer should be rejected for what it is -- a cynical, hypocritical, and baseless effort to eliminate a competitor from the market. Arrow has been in the same position Amerijet is in today and, as it did when asked by Arrow, the Department should grant Amerijet a limited extension of the effectiveness of the start-up condition to permite the Government of Ecuador to complete its work.

Counsel: John Richardson, 202-371-2258, jrichardson@johnlrichardson.com



October 7, 2005

Answer of Amerijet International

Centurion asks the Department to award the two available frequencies to it so that it can enter the US-Ecuador scheduled all-cargo market as a new competitor. It proposes to offer large wide-body freighter equipment serving the Miami-Guayaquil/Quito markets. While Centurion professes to want to become a new entrant scheduled service carrier in the market, it appears that what Centurion really wants is to continue its effort to develop as a specialist carrier concentrating largely on ACMI sub-charter operations. If this is its chosen business model - and it seems to be, espcially based upon the historic interest it has shown in the US-Ecuador market - it does not need the frequencies at issue in this case, and they should not be awarded to it.

Counsel: John Richardson, 202-371-2258, jrichardson@johnlrichardson.com



Filed October 3, 2005 | Issued October 11, 2005

Notice of Action Taken

Amerijet’s waiver is effective through January 11, 2006. As to any frequency with which Amerijet does not begin service by that date, its allocation with respect to that frequency will expire automatically.

By Order 2005-4-11, we decided to award Amerijet rather than Arrow two unallocated frequencies for all-cargo service between the U.S. and Ecuador. We fully set forth our reasons in our tentative decision (Order 2005-2-6) as to why we believed that the public interest warranted Amerijet’s selection. We continue to believe that the introduction of Amerijet’s new scheduled Ecuador service will be in the public interest. We had hoped that Amerijet would have been able to commence these operations by now. While it has not done so, we believe that it has provided a basis on the record for us to conclude that it is actively working to begin its new scheduled service. In these circumstances, we shall grant Amerijet the waiver extension it requests.

However, taking into account that other carriers have expressed strong interest in providing service in this market, we would expect the selected carrier to move expeditiously to complete the steps required for inauguration of the authority that we awarded it. Accordingly, we will require Amerijet to file in this docket every 30 days beginning on the 30th day from issuance of this notice a letter apprising the Department in detail of its progress towards meeting the prescribed service start-up date. This letter should include a complete status report of their application process before the Ecuadorian authorities, including thorough discussion of Ecuadorian government evidentiary and other requirements, whether the carrier has met its target dates (consistent with timely start up) for completion of each requirement and, if not, an explanation as to why it did not. Failure to meet this reporting requirement may result in revocation of this waiver.

Notwithstanding this reporting requirement, we are putting Amerijet on notice that there should be no expectation that an additional request will similarly be granted. As is our policy in considering waiver requests, we reserve the right to reexamine whether grant of this waiver continues to be in the public interest. Any future request to extend the waiver for the frequencies at issue here will have to be considered in light of the specific arguments offered and responses thereto, and in the context of the circumstances present at that time, including whether another carrier seeks to use the frequencies at issue.

By: Paul Gretch



October 7, 2005

Re: Amerijet International Polling Results

We have completed our polling for the referenced application which was filed on October 3, 2005 and, with the exception of Arrow Air, no carrier has objected to approval of our request. Arrow Air filed its objection yesterday, and Amerijet responded to that objection.

Counsel: John Richardson, 202-371-2258, jrichardson@johnlrichardson.com


October 7, 2005

Answer of Centurion Air Cargo to Application of Amerijet International for Allocation of Frequencies

By its application, Centurion has applied for an exemption and frequencies that would authorize the Company to provide scheduled foreign air transportation of property and mail between Miami, Florida, on the one hand, and Quito and Guayaquil, Ecuador, on the other hand. Centurion proposes to provide these services over a Miami-Quito-Guayaquil-Miami routing using DC-10-30 aircraft. Centurion will use these frequencies to provide important new wide-body service options in the Ecuadorian market.

When the two competing service proposals are compared side-to-side, Centurion's clearly comes out on top. Consider the following:

Centurion will use the available frequencies to provide twice-weekly scheduled services in the Miami-Quito and Miami-Guayaquil markets. Centurion will offer 100% of its available capacity in the Miami-Quito and Miami-Guayaquil markets. In contrast, Amerijet will operate via Panama City in each direction, which is likely to significantly reduce the amount of capacity being offered in the Miami-Quito and Miami-Guayaquil markets.

Centurion will operate the services using wide-body DC-10-30 aircraft with an average payload of approximately 150,000 pounds (approximately 130,000 pounds in the case of flights departing Quito), a nonstop range of more than 5,000 nautical miles, and the ability to handle 23 main deck pallets, 5 lower deck pallets and up to 10 lower deck (LD3) containers. In contrast, Amerijet is proposing to use narrow-body B-727-200 aircraft for its proposed services - aircraft that are not capable of operating nonstop from Quito with meaningful loads; these aircraft have a maximum payload of only 50,000 to 60,000 pounds (approximately 35,000 pounds on flights departing Quito) and are able to handle only 12 main deck pallets. A rough comparison of the available capacity (per week) being offered by each carrier in the primary markets is set forth below.

Counsel: Zuckert Scoutt, William Callaway, 202-298-8660, whcallaway@zsrlaw.com



October 13, 2005

Reply of Amerijet International

The operating proposals of the two applicants in this proceeding could not be more different. Neither could the decisional criteria the two carriers urge the Department to employ.

Amerijet will use the two new frequencies to better establish itself and to serve individually waybilled shippers more effectively. An award of the frequencies to Amerijet will also permit the carrier to spread the cost of the substantial investment it has made in the Ecuador market over a much larger service pattern base. Amerijet will provide true scheduled all-cargo service more completely responsive to the needs of the shippers and receivers of freight with and aircraft fleet plan that assures maximum flexibility and responsiveness at the lowest possible cost.

Centurion, in contrast, proposes to provide service identical to the service that Atlas Air, Inc. recently determined was uneconomic in the Ecuador market. Atlas had been using the two frequencies to offer large freighter service including ACMi subcharter service for other US and foreign air carriers. Atlas obviously determined either that that service was not needed in the market or that it could continue to be provided without relying upon scarce scheduled service frequencies that could be used by other US carriers. In either event, it relinquished the frequencies and returned them to the Department for reallocation to another US all-cargo carrier.

Centurion proposes to reintroduce the very same service back into the market that Atlas withdrew from it without any evidence to show that it can do what Atlas determined to be unproductive. Centurion has introduced no market evidence indicating that the shippers and receivers of freight will respond any more positively to its service proposal than they did to Atlas, and it is very clear that Centurion does not intend to make the investment in the market that Amerijet has made and is continuing to make to create a genuine scheduled presence in Ecuador.

Counsel: John Richardson, 202-371-2258, jrichardson@johnlrichardson.com


October 13, 2005

Reply of Centurion Air Cargo to Answer of Amerijet International

Amerijet' s answer is remarkable not so much for what it says, but rather for what it does not say.

In an effort to divert attention from the weakness of its own service proposal, Amerijet devotes a substantial portion of its answer to an exposition on the benefits of scheduled service. The fundamental premise underlying its argument is the carrier's contention that Centurion intends to concentrate solely on ACMI operations and, in effect, "rent" its valuable scheduled service rights to other carriers, "many of which are not even U.S. carriers." (Answer at 1-2.) That assertion is patently erroneous and utterly false. Moreover, Amerijet's contention that Centurion has no intention of becoming a scheduled carrier (or operating scheduled service) is completely at odds with the facts.

Counsel: Zuckert Scoutt, William Callaway, 202-298-0683, whcallaway@zsrlaw.com



November 10, 2005

Withdrawal of Amerijet

Amerijet has determined that it should withdraw from the US-Ecuador all-cargo market. Accordingly, it is relinquishing the two scheduled service frequencies the Department awarded to it and is withdrawing its request for two additional frequencies currently pending before the Department in the referenced docket. As a result of the foregoing, a waiver of the startup condition and the requirement for periodic status reports imposed on Amerijet when the Department last extended the waiver (see Notice of Action Taken in Docket OST-2002-12503, dated October 11, 2005) is mooted.

Counsel: John Richardson, 202-828-2558, jrichardson@johnlrichardson.com



OST-2002-12503 - US-Ecuador All-Cargo Frequencies
OST-2005-22422 - US-Ecuador All-Cargo - Allocation of Two Weekly Frequencies

Filed September 8, 2005 | Issued December 14, 2005

Notice of Action Taken | Word

Scheduled foreign air transportation of property and mail between Miami, Florida, and Quito and Guayaquil, Ecuador.  Centurion states that, depending on demand, it may add a stop in Cali, Colombia, or may substitute a stop in Cali for a stop in Guayaquil.

Under the U.S.-Ecuador Air Transport Agreement, U.S. all-cargo carriers are limited to 30 weekly frequencies.  Current frequency allocations for U.S. carriers are as follows: United Parcel Service – 7; Arrow Air – 9; Gemini Air Cargo – 3; Atlas Air – 4; and Florida West – 5.  The remaining 2 frequencies are currently unallocated.

Allocation of two weekly U.S.-Ecuador roundtrip all-cargo frequencies to operate its proposed services.

On August 8, 2005, Amerijet filed an application for allocation of two Ecuador frequencies in Docket OST-2002-12503.  In this connection, Amerijet initially opposed Centurion’s application for the same two frequencies at issue here.  Subsequently, on November 10, 2005, Amerijet filed a letter stating that it had decided to withdraw its application for two Ecuador frequencies and that Amerijet no longer opposes Centurion’s application.

By: Paul Gretch



February 14, 2006

Application for Renewal of an Exemption

Requests renewal of the exemption authorizing it to provide scheduled foreign air transportation of property and mail between a point or points in the United States and a point or points in Ecuador, and to integrate that authority with its existing certificate and exemption authorities. Atlas further requests that the Department grant it such other and further relief as the Department finds to be consistent with this application and the public interest.

Atlas has operated U.S.-Ecuador services pursuant to Order 2004-3-16 and wishes to retain its authority until such time as its operations are combined with those of its affiliate, Polar Air Cargo, Inc., and the Ecuador rights are transferred to Polar in the pending route transfer proceeding.

Counsel: Atlas Air, Russell Pommer, 202-822-9121, rpommer@atlasair.com



Filed February 14, 2006 | Issued March 3, 2006

Notice of Action Taken | Word

Renewal of scheduled foreign air transportation of property and mail between a point or points in the United States and a point or points in Ecuador, and to integrate this authority with its existing exemption and certificate authority.

By: Paul Gretch



March 10, 2006

Application for Waiver of Dormancy Condition

In the December 14, 2005 Notice, the Department awarded Centurion exemption authority and two frequencies for scheduled all-cargo services between Miami, Florida and Quito/Guayaquil, Ecuador. Consistent with existing policy in limit entry markets, the Department conditioned the frequency award upon the Company commencing scheduled services within 90 days of the Notice or by March 14, 2006.

Centurion is in the process of obtaining the necessary authority from the Government of Ecuador to implement the Company's planned new scheduled service to Ecuador. However, as the Department is aware, the process of obtaining the required authority in Ecuador is a complicated and lengthy one that involves establishing a legal presence in the country and completing the procedures necessary to obtain a license from the Ecuadorian civil aviation authority to provide scheduled air service. While that process is well underway, it is not likely to be completed prior to March 14, 2006.

Centurion is prepared to commence scheduled services to/from Ecuador as soon as it obtains Ecuadorian authority. Centurion hopes that it will complete the licensing process by June 2006. It, therefore, requests that the Department waive the dormancy condition for 90 days or through June 12, 2006.

Counsel: Zuckert Scoutt, William Callaway, 202-342-0683, whcallaway@zsrlaw.com



March 10, 2006

Application for Waiver of Dormancy Condition

In the December 14, 2005 Notice, the Department awarded Centurion exemption authority and two frequencies for scheduled all-cargo services between Miami, Florida and Quito/Guayaquil, Ecuador. Consistent with existing policy in limit entry markets, the Department conditioned the frequency award upon the Company commencing scheduled services within 90 days of the Notice or by March 14, 2006.

Centurion is in the process of obtaining the necessary authority from the Government of Ecuador to implement the Company's planned new scheduled service to Ecuador. However, as the Department is aware, the process of obtaining the required authority in Ecuador is a complicated and lengthy one that involves establishing a legal presence in the country and completing the procedures necessary to obtain a license from the Ecuadorian civil aviation authority to provide scheduled air service. While that process is well underway, it is not likely to be completed prior to March 14, 2006.

Centurion is prepared to commence scheduled services to/from Ecuador as soon as it obtains Ecuadorian authority. Centurion hopes that it will complete the licensing process by June 2006. It, therefore, requests that the Department waive the dormancy condition for 90 days or through June 12, 2006.

Counsel: Zuckert Scoutt, William Callaway, 202-342-0683, whcallaway@zsrlaw.com



Filed March 10, 2006 | Issued March 14, 2006

Notice of Action Taken | Word

On March 10, 2006, Centurion filed an application in the captioned docket for a waiver of the startup condition imposed by Order 2004-3-16, and asked that the startup period be extended through June 12, 2006.  Centurion states that it is in the process of obtaining the necessary authority from the Government of Ecuador to implement its planned new scheduled service to Ecuador.  Centurion further states that the process of obtaining the required authority in Ecuador is a complicated and lengthy one that involves establishing a legal presence in the country and completing the necessary procedures to obtain a license from the Ecuadorian civil aviation authority to provide scheduled air service.  Centurion believes that it will be prepared to commence scheduled services to and from Ecuador as soon as it obtains Ecuadorian authority.  Centurion states that it hopes to complete the licensing process by June 2006.  Therefore, the carrier requests a waiver of the dormancy condition for 90 days or through June 12, 2006.

We are granting Centurion an interim waiver of the dormancy condition without awaiting expiration of the seven day answer period so that the applicant can retain its frequency allocation while we await any responsive pleadings to the application.

Extension of the startup deadline is effective through March 24, 2006, or until the date on which Centurion begins service with their allocated U.S.-Ecuador frequencies, whichever occurs earlier.  As to any frequency with which Centurion does not begin service by March 24, 2006, the allocation with respect to that frequency will expire automatically and revert to the Department for reallocation.

We will consider the applicant’s request for a longer term waiver upon expiration of the period for filing answers.

By: Paul Gretch



March 21, 2006

Answer of Arrow Air in Opposition to Application of Centurion Air Cargo for Waiver of Start-Up Condition

Centurion is requesting the Department of Transportation to grant it a waiver of the standard 90-day start-up condition, which it accepted when it was awarded authority to operate two weekly U.S.-Ecuador all-cargo round trips. At the time it received its award Centurion knew or should have known that there are a variety of conditions in the Ecuador markets, including both economic and regulatory, that make entry into these markets marginal. Centurion was an applicant for frequencies surrendered by Atlas Air, Inc. which carrier could not use them, apparently for marketing or other reasons. At almost the same time Amerijet International, Inc. chose to abandon its efforts to enter the Ecuador scheduled all cargo market and return the two frequencies allocated to it to the Department. It is Arrow's position that these haphazard efforts by airlines without experience or genuine interest in the Ecuador-U.S. markets have been disruptive and that the public interest is not well served by allowing them to continue. These facts demonstrate that the application of Centurion should be denied.

Arrow believes that the Ecuador market is well served at the present with ample capacity provided by all-cargo carriers now authorized and operating. There is no need for any of the service proposed by Centurion, even if Centurion had the aircraft and required license approvals to perform high altitude operations required at the Ecuador air terminals. It is Arrow's further position that the type of service Centurion would offer, basically ACMI contract operations for other air carriers, is not designed to served the real needs of the shipping public and, in fact, can be harmful for carriers required to provide regular scheduled all-cargo service in these markets and comply with the regulatory requirements imposed by the U.S. and the Ecuadorian aviation authorities. At least at the present time Centurion cannot demonstrate that there is a need to justify the grant of the special waiver of the dormancy condition and that it has met all operational requirements to provide scheduled all-cargo service to and from Ecuador.

Counsel: Lawrence Wasko, 703-356-8010, ldwasko@erols.com



March 23, 2006

Reply of Centurion Air Cargo to Answer of Arrow Air

Only one carrier has filed an objection: Arrow Air, Inc. Arrow’s sole basis for objecting to the pending request is nothing more than a thinly-disguised effort to shield itself from competition by eliminating an important new entrant in the U.S.-Ecuador market. The Department should reject Arrow’s blatant appeal for protection from competition and should grant a waiver allowing Centurion another ninety days (i.e. trough June 12, 2006) to commence its planned scheduled service to Ecuador.

Contrary to Arrow’s assertion, the fact that two carriers recently have withdrawn from the U.S.-Ecuador market hardly constitutes a legitimate ground for denying Centurion’s pending waiver request. Simply stated, these other carriers have had their own business reasons for departing from this market, and their actions say nothing about Centurion’s commitment to serving the market. To the contrary, as has already been well documented in this proceeding - a proceeding from which Arrow was noticeably absent - Centurion has a solid history of charter operations in the market, with more than 150 flights operated and 31 million pounds of cargo transported during the past three calendar years.

Arrow also argues that Department should deny the pending request on the grounds that the Ecuadorian market already is well-served and does not need Centurion’s services. Thus, Arrow would have the Department reverse almost three decades of well-established precedent that embraces open competition and maximum utilization of valuable bilateral rights. Notably, Arrow has been a significant beneficiary of that policy in the past, and it ill-befits a carrier that heretofore has argued forcefully for greater access to limited entry markets to now be heard to argue, under the guise of an objection to a relatively routing request for waiver of a 90 day start-up condition, that an entrenched carrier should be protected from competition.

A number of U.S. carriers have been unable to obtain Ecuadorian authority within the ninety-day period set forth in their awards, and the Department has granted waivers to the carriers to allow them additional time to complete the cumbersome regulatory process. Hence, the circumstances in which Centurion now finds itself is hardly unique, nor is it a situation that is specific to Centurion. Instead, it is a situation that has plagued U.S. carriers for a number of years. Thus, Centurion is not asking for anything different than other carriers - including Arrow - have already sought. It simply wants to continue the process in Ecuador so that it can commence scheduled services between Miami and Quito/Guayaquil.

Counsel: Zuckert Scoutt, William Callaway, 202-298-8660, whcallaway@zsrlaw.com



Filed February 10, 2006 | Issued March 24, 2006

Notice of Action Taken | Word

We grant the application filed by Centurion for a waiver, and extend, through June 12, 2006, the startup deadline for the frequencies allocated to Centurion. In taking this action, we find that grant of the requested waiver is in the public interest in the circumstances presented; namely, that the carrier has indicated on the record that it is working to complete the Ecuadorian licensing process and the frequencies at issue here represent a valuable opportunity to promote competition and service in the U.S.-Ecuador all-cargo market.

Extension of the startup deadline is effective through June 12, 2006, or until the date on which Centurion begins service with the allocated U.S.-Ecuador frequencies, whichever occurs earlier.  As to any frequency with which Centurion does not begin service by June 12, 2006, the allocation with respect to that frequency will expire automatically and revert to the Department for reallocation.

We had hoped that Centurion would have been able to commence operations within the time frame of our standard 90-day start-up condition. While it has not done so, we believe that it has provided a basis on the record for us to conclude that it is taking steps to begin its new scheduled service. In these circumstances, we shall grant Centurion the waiver it requests. However, we are putting Centurion on notice that there should be no expectation that an additional request will similarly be granted.  As is our policy in considering waiver requests, we reserve the right to reexamine whether grant of this waiver continues to be in the public interest.

Any future request to extend the waiver for the frequencies at issue here will have to be considered in light of the specific arguments offered and responses thereto, and in the context of the circumstances present at that time, including whether another carrier seeks to use the frequencies at issue.

By: Paul Gretch



June 6, 2006

Application Centurion Air Cargo for Waiver of Dormancy Condition

Centurion is in the process of obtaining the necessary authority from the Government of Ecuador to implement the Company's planned new scheduled service to Ecuador. However, as the Department is aware, this process is complicated and lengthy and involves establishing a legal presence in the country and completing the procedures necessary to obtain a license from the Ecuadorian civil aviation authority to provide scheduled air service.

Despite several initial missteps ‑ and a recent change in senior management ‑ that delayed the process of completing the necessary filings in Ecuador, Centurion is confident that it now has experienced counsel in Ecuador to help guide it through the difficult process and is on the right track toward securing the necessary approvals. Although Centurion is making every effort to expedite the approval process, it is not likely to obtain the Ecuador license before June 12, 2006.

In the interim, Centurion has been providing regularly scheduled charter services in the U.S.‑Ecuador market under charter permits issued by the Ecuadorian government. Centurion currently operates at least two weekly charter flights between Miami and Quito/Guayaquil. While these charter services have established Centurion in the U.S.‑Ecuador market, they are no substitute for scheduled service. Indeed, because the Ecuadorian authorities limit the number of charters each year, Centurion needs to convert its charter services to scheduled services to continue its successful operations to Ecuador as soon as possible. Consequently, Centurion will convert its charter operations to scheduled services as soon as the Ecuadorian licensing process is complete.

Counsel: Zuckert Scoutt, William Callaway, 202-342-0683, whcallaway@zsrlaw.com



June 8, 2006

Answer of Arrow Air in Opposition to Application of Centurion Air Cargo for Further Waiver of Start-Up Condition

Centurion presently operates some charter services to Ecuador. On information and belief Arrow represents that Centurion does not market is charter availability to the general public or to individual charter shippers, but has allocated its planeload capacity to a single entity. Under this arrangement there is no benefit to the shipping public to award Centurion scheduled service all-cargo allocations. The charter arrangement can provide the public with the special capacity that it may require. There is no demonstrated need for any of the scheduled all-cargo service proposed by Centurion and for the further extension of time to begin such scheduled all-cargo service.

The U.S.-Ecuador scheduled all-cargo market is competitive and well served by the carriers presently operating. Arrow, itself, provides ample, responsive low-cost all-cargo scheduled service. It will soon inaugurate service with wide-body DC-10-30 aircraft in all of its Ecuador scheduled all-cargo markets, providing more capacity when shippers have a need for such additional service. Arrow is acting with knowledge of the markets and improving service in a responsive and responsible manner consistent with the public interest. Under these circumstances Centurion cannot demonstrate that there is a public need or benefit to support a grant to it of a further waiver of the start-up condition.

Counsel: Lawrence Wasko, 703-356-8010, ldwasko@erols.com



June 9, 2006

Reply of Centurion Air Cargo to Answer of Arrow Air

Centurion has polled all interested U.S. carriers, and only one carrier has objected: Arrow Air, Inc. Once again Arrow urges the Department to deny Centurion's request and thereby eliminate the prospect of additional competition in the U.S.-Ecuador market. For the reasons set forth in its Waiver Application, the Department should reject Arrow's repeated appeal for protection from competition and should grant a waiver allowing Centurion another ninety days (i.e., through October 10, 2006) to commence its planned scheduled service to Ecuador.

The simple response to Arrow's self-serving and protectionist claims is that - in April of this year, the first full month of Centurion's scheduled DC-10 charter flights to Ecuador -Centurion ranked ahead of Arrow, Amerijet, American, Tampa and UPS in terms of the total amount of cargo transported from Ecuador to Miami. Indeed, Centurion conservatively estimates that, in April 2006, it transported more than five times the amount of cargo from Ecuador to Miami that was transported by Arrow. This solid record of accomplishment demonstrates quite clearly Centurion's commitment to the Ecuadorian market, the urgent need for its proposed scheduled wide-body service and the important competitive stimulus that such service will provide.

Arrow also argues that Department should deny the pending request on the grounds that the Ecuadorian market already is well-served and does not need Centurion's services. Arrow would have the Department reverse almost three decades of well-established precedent that embraces open competition and maximum utilization of valuable bilateral rights. Notably, Arrow has been a significant beneficiary of that policy in the past, and it ill-befits a carrier that heretofore has argued forcefully for greater access to limited entry markets to now be heard to argue, under the guise of an objection to a relatively routine request for waiver of a 90-day start-up condition, that an entrenched carrier (i.e. Arrow) should be protected from competition.

As the record in this proceeding makes clear, Centurion will make full use of the two scheduled frequencies that have been awarded to it and will maximize the benefits from these frequencies by offering new scheduled wide-body, all-cargo services in the U.S.-Ecuador market. The Company's new service will increase competition and benefit the shipping public. Thus, the granting of Centurion's pending waiver request will serve to ensure that valuable bilateral rights are used and to enhance competition.

Counsel: Zuckert Scoutt, William Callaway, 202-298-8660, whcallaway@zsrlaw.com



Filed June 6, 2006 | Approved June 12, 2006

Notice of Action Taken

By Notice of Action Taken dated December 14, 2005 the Department granted to Centurion, among other things, two available frequencies to conduct scheduled U.S.-Ecuador all-cargo air transportation services. The award was subject to our standard dormancy condition under which the carrier was required to commence service with the frequencies no later than March 14, 2006. On March 14, 2006, the Department granted the applicant an interim waiver of the dormancy condition, extending the startup deadline through March 24, 2006. The Department then extended, on March 24, 2006, the startup deadline through June 12, 2006. See notices of action taken in this docket dated March 14, 2006 and March 24, 2006, respectively. Centurion now requests an additional 90 days to conclude all of the necessary steps to obtain Ecuadorian authority. Centurion states that despite its best efforts otherwise, the licensing process in Ecuador still is continuing.

Our action here extends, through September 11, 2006, the startup deadline for the frequencies allocated to Centurion. Extension of the startup deadline is effective through September 11, 2006, or until the date on which Centurion begins service with the allocated U.S.-Ecuador frequencies, whichever occurs earlier. (We note that at several places in its pleadings the applicant referred to the 90-day period as running through October 10, 2006. In our action here we have substituted the appropriate date.) As to any frequency with which Centurion does not begin service by September 11, 2006, the allocation with respect to that frequency will expire automatically and revert to the Department for reallocation.

By: Paul Gretch



September 1, 2006

Application of Centurion Air Cargo for Waiver of Dormancy Condition

Centurion Air Cargo, Inc. hereby requests an additional waiver of the 90-day dormancy condition attached to the two U.S.-Ecuador frequencies the Department issued to the Company by Notice of Action Taken dated December 14, 2005. On June 12, 2006, the Department issued a Notice of Action extending the dormancy deadline for an additional three months through September 11, 2006. The purpose of the extension was to give Centurion an opportunity to complete the licensing process in Ecuador. Despite Centurion’s best efforts otherwise, the licensing process in Ecuador is not yet complete. Therefore, Centurion respectfully requests an additional ninety days to conclude all of the necessary steps to obtain the requisite Ecuadorian authority.

Counsel: Zuckert Scoutt, William Callaway, 202-298-8660, whcallaway@zsrlaw.com



Filed September 1, 2006 | Issued September 8, 2006

Notice of Action Taken - Centurion Air Cargo

Additional waiver of 90-day dormancy condition for U.S.-Ecuador all-cargo services.

By: Paul Gretch



December 5, 2006

Application of Centurion Air Cargo for Waiver of Dormancy Condition

Centurion Air Cargo, Inc. hereby requests an additional waiver of the 90-day dormancy condition attached to the two U.S.-Ecuador frequencies the Department issued to the Company by Notice of Action Taken dated December 14, 2005. On September 8, 2006, the Department issued a Notice of Action extending the dormancy deadline for an additional three months through December 10, 2006. The purpose of the extension was to give Centurion an opportunity to complete the licensing process in Ecuador. Despite Centurion's best efforts otherwise, the licensing process in Ecuador is not yet complete. Therefore, Centurion respectfully requests an additional 90 days to conclude all of the necessary steps to obtain the requisite Ecuadorian authority.

In the interim, Centurion has been providing charter services in the U.S.-Ecuador market under charter permits issued by the Ecuadorian government. While these charter services have established Centurion in the U.S.-Ecuador market, they are no substitute for scheduled service.

Counsel: Zuckert Scoutt, William Callaway, 202-298-8660, whcallaway@zsrlaw.com



Filed December 4, 2006 | Approved December 8, 2006

Department Action on Application of Centurion Air Cargo

While we are granting Centurion the waiver it requests, we are putting it on notice that there should be no expectation that an additional request will similarly be granted. As is our policy in considering waiver requests, we reserve the right to reexamine whether grant of this waiver continues to be in the public interest. Any future request to extend the waiver for the frequencies at issue here will have to be considered in light of the specific arguments offered and responses thereto, and in the context of the circumstances present at that time, including whether another carrier seeks to use the frequencies at issue.

We will require the carrier to institute service no later than March 8, 2007.

We acted on this application without awaiting expiration of the 7-day answer period with the consent of all parties served with the application.

By: Esta Rosenberg



February 9, 2007

Application of Amerijet for Renewal of an Exemption

Amerijet submits this application for renewal of an exemption to permit it to provide scheduled all-cargo service between the US and Ecuador. Amerijet also requests authority to integrate the authority requested hereby with its existing certificates and exemptions subject to the conditions normally imposed by the Department on such integration authority

This exemption was issued by the Department to Amerijet in the above-captioned docket on April 12, 2005 pursuant to Order 2005-4-11 for a period of two years. Amerijet requests that the exemption be renewed for an additional two-year term.

Order 2005-4-11 also included an award to Amerijet of two weekly scheduled round-trip all-cargo frequencies to enable it to operate its US-Ecuador service. However, on November 10, 2005, Amerijet notified the Department that it had determined that it should withdraw from the market, it relinquished its two frequencies, and it withdrew its request for two additional frequencies it had been seeking at the time.

Amerijet wants to retain its exemption authority to enable it to institute all-cargo service in the US-Ecuador market at some time in the future when Amerijet determines market conditions are appropriate and it is able to secure the frequencies that will be required to begin new service. To maintain the necessary flexibility and to retain the service option it seeks, it is necessary for Amerijet to submit this application and to have it approved.

Counsel: John Richardson, 202-371-2258, jrichardson@johnlrichardson.com



March 5, 2007

Application of Centurion Air Cargo for Waiver of Dormancy Condition

Centurion Air Cargo, Inc. hereby requests an additional waiver of the 90-day dormancy condition attached to the two U.S.-Ecuador frequencies the Department issued to the Company by Notice of Action Taken dated December 14, 2005. On December 8, 2006, the Department issued a Notice of Action extending the dormancy deadline for an additional three months through March 8, 2007. The purpose of the extension was to give Centurion an opportunity to complete the licensing process in Ecuador. Despite Centurion’s best efforts otherwise, the licensing process in Ecuador is almost, but not yet, complete. Therefore, Centurion respectfully requests an additional ninety days to obtain the requisite Ecuadorian authority.

Counsel: Zuckert Scoutt, William Callaway, 202-298-8660, whcallaway@zsrlaw.com



March 7, 2007

Email Message - Re: Polling Results

We wanted to update you on our polling efforts with respect to Centurion Air Cargo's Application for Waiver of the Dormancy Condition in the U.S.-Ecuador Frequency Proceeding (Docket OST-2002-12503). We have polled all interested air carriers. None of the carriers had any objections to the application.

We would greatly appreciate your prompt attention to this matter. The current start up deadline is tomorrow March 8, 2007.

Counsel: Zuckert Scoutt, Lonnie Pera, 202-973-7913, lapera@zsrlaw.com


Filed March 5, 2007 | Approved March 7, 2007

Department Action on Application

While we are granting Centurion the waiver it requests, we are putting it on notice that there should be no expectation that an additional request will similarly be granted. As is our policy in considering waiver requests, we reserve the right to reexamine whether grant of this waiver continues to be in the public interest. Any future request to extend the waiver for the frequencies at issue here will have to be considered in light of the specific arguments offered and responses thereto, and in the context of the circumstances present at that time, including whether another carrier seeks to use the frequencies at issue.

We acted on this application without awaiting expiration of the 7-day answer period with the consent of all parties served with the application.

By: Esta Rosenberg



June 6, 2007

Centurion Air Cargo Returning Two Frequencies

By Notice of Action Taken, dated December 14, 2005, in the above-captioned docket, the Department granted Centurion Air Cargo, Inc. exemption authority to provide scheduled all-cargo service between Miami, Florida and Quito and Guayaquil, Ecuador. The exemption is effective through December 14, 2007. In addition, the Department awarded Centurion two weekly scheduled all-cargo frequencies. Lengthy and complex licensing procedures in Ecuador have led Centurion to obtain from the Department several extensions of the date-now June 5, 2007 - by which Centurion must institute scheduled Ecuador service or return those frequencies to the Department.

At the time the exemption application was filed in September 2005, management believed, based primarily upon its experience operating U.S.-Ecuador cargo charters, that traffic levels could economically support two weekly frequencies over a Miami-Quito-Guayaquil-Miami routing. However, since receiving the required scheduled permits from Ecuador earlier this year, the company's current management has re-examined the viability of a twice weekly nonstop operation and has concluded that, at this time, the proposed Miami-Quito-Guayaquil-Miami service simply cannot be operated on an economic basis without the traffic support of an intermediate stop.

Consequently, Centurion is returning the two frequencies allocated to it by the Department in this proceeding. Centurion would like to retain its exemption authority in the event future circumstances justify scheduled service, at which time Centurion would apply for available frequencies. In the meantime, it is Centurion's intention to rely on charter service to serve the U.S.-Ecuador cargo market.

Counsel: Law Office of John Mietus, William Evans, 410-827-5074, bill@mietuslaw.com



October 12, 2007

Application of Centurion Air Cargo for Renewal for an Exemption

Centurion Air Cargo, Inc. respectfully requests renewal of an exemption from the provisions of 49 U.S.C. 41101, granted by Notice of Action Taken, dated December 14, 2005, which permits Centurion to engage in scheduled foreign air transportation of property and mail between Miami, Florida, and the co-terminal points Guayaquil and Quito, Ecuador, via Cali Colombia, and to integrate this exemption authority with Centurion's existing authority. The exemption is set to expire on December 14, 2007. Centurion seeks an extension for an additional period of two years.

The Department also allocated two weekly U.S.-Ecuador frequencies to Centurion. In June 2007, Centurion notified the Department that it could not operate two weekly frequencies on an economic basis and it returned those frequencies to the Department. Nevertheless, Centurion does believe that in the future when economic circumstances improve, the market will be able to support additional all-cargo service so it is seeking renewal of its exemption authority. It fully understands that it cannot operate the service without first obtaining a frequency allocation.

Counsel: Mietus Law, William Evans, 410-827-5074, bill@mietuslaw.com



Filed October 12, 2007 | Issued November 2, 2007

Notice of Action Taken for Centurion Air Cargo

Scheduled foreign air transportation of property and mail between Miami, Florida, and the co-terminal points Guayaquil and Quito, Ecuador, via Cali, Colombia, and to integrate this exemption authority with its existing authority.

The route integration authority granted is subject to the condition that such operations are consistent with the applicable bilateral aviation agreements.  Furthermore, (a) nothing in the award of the route integration authority requested should be construed as conferring upon Centurion rights (including fifth-freedom intermediate and/or beyond rights) to serve markets where U.S. carrier entry is limited unless Centurion first notifies the Department of its intent to serve such a market and unless and until the Department has completed any necessary carrier selection procedures to determine which carrier(s) should be authorized to exercise such rights; and (b) should there be a request by any carrier to use the limited-entry route rights that are included in Centurion’s authority by virtue of the route integration authority granted here, but that are not then being used by Centurion, the holding of such authority by route integration will not be considered as providing any preference for Centurion in a competitive carrier selection proceeding to determine which carrier(s) should be entitled to use the authority at issue.

By: Paul Gretch



OST-2002-12503 - US-Ecuador All-Cargo Frequencies
OST-2000-7477 - Exemption - US-Colombia All-Cargo


March 7, 2008

Application of Atlas Air for Emergency Renewal of an Exemption

Atlas requests immediate renewal of its exemption authorizing it to provide scheduled foreign air transportation of property and mail between a point or points in the United States and a point or points in Ecuador. Atlas inadvertently allowed this authority to lapse and requests immediate renewal. Atlas wishes to retain this authority but inadvertently allowed it to lapse earlier this week and, accordingly, requests immediate reinstatement and renewal.

Counsel: Atlas Air, Russell Pommer, 202-822-9121, rpommer@atlasair.com


March 7, 2008

Re: Polling Results

Atlas Air, Inc. has completed its poll of all carriers served with its application, filed earlier today, for reinstatement and renewal of its Ecuador exemption authority. Please be advised that no carrier objects to the Atlas request.

Counsel: Atlas Air, Russell Pommer, 202-822-9121, rpommer@atlasair.com


Filed and Approved March 7, 2008

Notice of Action Taken

Scheduled foreign air transportation of property and mail between a point or points in the United States and a point or points in Ecuador.

Atlas has characterized its application as a renewal request. However, since its authority expired on March 3, 2008, we are treating Atlas’ application as a request for new authority.

By: Paul Gretch



September 11, 2009

Application for Renewal of an Exemption

Centurion Air Cargo, Inc. respectfully requests renewal of an exemption from the provisions of 49 USC § 41101, granted by Notice of Action Taken, dated December 14,2005, which permits Centurion to engage in scheduled foreign air transportation of property and mail between Miami, Florida, and the co-terminal points Guayaquil and Quito, Ecuador, via Cali Colombia, and to integrate this exemption authority with Centurion's existing authority. The exemption is set to expire on November 2, 2009. Centurion recently decided to seek renewal of the authority and seeks an extension for an additional period of two years. Centurion recognizes that due to timing, it may not invoke the automatic extension provisions of 5 USC § 558(c) and Part 377 of the Department's Special Regulations. As a result, it seeks a waiver of the 60-day advance filing requirement or requests that the Department act on the application prior to the current expiration date.

The Department also allocated two weekly US-Ecuador frequencies to Centurion. In June 2007, Centurion notified the Department that it could not operate two weekly frequencies on an economic basis and it returned those frequencies to the Department. Nevertheless, Centurion continue to believe that in the future when economic circumstances improve, the market will be able to support additional all-cargo service so it is seeking renewal of its exemption authority. It fully understands that it cannot operate the service without first obtaining a frequency allocation.

Counsel: Mietus Law, William Evans, 202-747-5212



September 15, 2009

Re: Polling Results

On September 11, 2009, Centurion Air Cargo, a US air carrier, filed an application to renew its exemption authority to operate scheduled all-cargo service between the US and Ecuador. This is to advise you that we have conducted a poll of the US carriers served with the applicatoin and there are no objections to the application. Consequently, Centurion requests that the Department act prior to the current termination date of the authority.

Counsel: Mietus Law, William Evans, 410-827-5074



Filed September 11, 2009 | Issued September 24, 2009

Notice of Action Taken - Centurion Air Cargo

Renewal of scheduled foreign air transportation of property and mail between Miami, Florida, and the co-terminal points Guayaquil and Quito, Ecuador, via Cali, Colombia, and to integrate this exemption authority with its existing authority.

By: Paul Gretch



March 1, 2010

Application of Atlas Air for Renewal of an Exemption

Atlas requests renewal of its exemption authorizing it to provide scheduled foreign air transportation of property and mail between a point or points in the United States and a point or points in Ecuador. Atlas inadvertently allowed this authority to lapse and requests immediate renewal. The authority remains in effect through March 3, 2010, so Atlas is requesting immediate renewal.

Counsel: Atlas Air, Russell Pommer, 202-822-9121


March 2, 2010

Re: Polling Results

Atlas Air, Inc. has completed its poll of all carriers served with its application, dated March 1, 2010, for renewal of its Ecuador exemption authority. Please be advised that no carrier objects to the Atlas request. We therefore request expedited action on this matter.

Counsel: Atlas Air, Russell Pommer, 202-822-9121



Filed March 1, 2010 | Issued March 5, 2010

Notice of Action Taken

Renewal of scheduled foreign air transportation of property and mail between a point or points in the United States and a point or points in Ecuador.

Atlas’s renewal application was not timely filed under the terms of 14 CFR 377.10(c). In the circumstances presented, including the absence of opposition to Atlas’s application, we will grant the carrier a waiver of the advance filing requirement.

By: Paul Gretch



January 18, 2012

Application for Renewal of an Exemption

Atlas Air, Inc. requests two-year renewal of its exemption authorizing it to provide scheduled foreign air trimsportation of property and mail between a point or points in the United States and a point or points in Ecuador.

By Notice of Action Taken, issued March 5, 2010, the Department renewed Atlas' exemption authority to operate scheduled foreign air transportation of property and mail between a point or points in the United States and a point or points in Ecuador. Atlas' exemption authority was granted for a period oftwo years, through March 5, 2012.

Counsel: Atlas Air, Russell Pommer, 202-822-9121



January 23, 2012

Re: Polling Results

Atlas Air, Inc. has completed its poll of all carriers served with its application, filed January 18, 2012, for renewal of its Ecuador exemption authority. Please be advised that no carrier objects to the Atlas request. We therefore request expedited action on this matter.

Counsel: Atlas Air, Russell Pommer



Filed January 18, 2012 | Issued January 24, 2012

Notice of Action Taken

Renewal of scheduled foreign air transportation of property and mail between a point or points in the United States and a point or points in Ecuador.

By: Paul Gretch


 

October 16, 2013

Application for Renewal of an Exemption

Atlas operates regularly to Ecuador and wishes to retain the authority in question. Renewal of this exemption authority is in the public interest because of the potential service benefits.

Counsel: Atlas, Russell Pommer, 202-822-9121


 

Filed October 16, 2013 | Issued February 5, 2014

Notice of Action Taken

Renewal of scheduled foreign air transportation of property and mail between a point or points in the United States and a point or points in Ecuador.

By: Paul Gretch


 

November 20, 2015

Application for Renewal of an Exemption

Atlas Air, Inc. requests two-year renewal of its exemption authorizing it to provide scheduled foreign air transportation of property and mail between a point or points in the United States and a point or points in Ecuador. Notice of Action Taken, issued February 5, 2014, the Department renewed Atlas' exemption authority to operate scheduled foreign air transportation of property and mail between the United States and Ecuador. Atlas' exemption authority was granted for a period of two years, through February 6, 2016.

Counsel: Atlas Air, Russell Pommer, 202-822-9121


 

January 25, 2019

Application for Renewal of Exemption

Amerijet initially received an exemption to serve Ecuador by Final Order issued on April 12, 2005 in Docket OST-2002-12503. In 2007, Amerijet timely-filed an application for renewal of the exemption authorizing service to Ecuador. While no objections were raised, the Department has not acted on the application.

The Department has never acted on the exemption renewal. In response to an inquiry by the civil aviation authority of Ecuador regarding the continuing validity of Amerijet’s authority to serve Ecuador, Amerijet now seeks to have the long-standing renewal application granted.

Amerijet respectfully requests that the pending application for renewal of exemption authority (US-Ecuador) be granted, and that the Department provide for integration of such authority with any future grant of international authority granted to Amerijet.

Counsel: Amerijet, Joan Canny, 305-962-2156


 

Filed February 9, 2007 | Supplemented January 25, 2019 | Issued February 5, 2019

Notice of Action Taken

On January 25, 2019, Amerijet submitted a letter to the docket updating certain information contained in its February 9, 2007 application, and requesting Department action on the pending request to renew the exemption and route integration authority initially granted by Order 2005-4-11. Since the Department’s last grant of authority to Amerijet in this Docket, Amerijet has been granted blanket route integration certificate authority. See Order 2010-12-24. Thus, our action here serves to renew only Amerijet’s exemption authority.

By: Brian Hedberg


 

November 10, 2020

Application for Renewal of an Exemption

Amerijet International, Inc. authorizing Amerijet to provide scheduled foreign air transportation of property and mail between a point or points in the United States and a point or points in Ecuador for a period of two years. The renewed exemption will expire by the terms of the Notice on February 5, 2021.

Counsel: Amerijet, Indyara Andion

 

November 16, 2020

Re: Polling Results

We have completed our polling of each of the carrier parties on the attached service list and have received no objections to the above-referenced application.

Counsel: Amerijet, Indyara Andion


 

Filed November 10, 2020 | Issued January 6, 2021

Notice of Action Taken

Renewal of scheduled foreign air transportation of property and mail between a point or points in the United States and a point or points in Ecuador.

By: Benjamin Taylor

 

 

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