~~ ~ Application of ) 1 1 AEROTRANSPORTE DE CARGA ) UNION, S.A. DE C.V. ) ) For an Exemption to Engage in Scheduled Air ) Transportation of Property and Mail Pursuant to) 49 U.S.C. $40109 1 (U.S. - Mexico) 1 Docket OST-2004-1Wb l-i APPLICATION FOR AN EXEMPTION Communications with respect to this document should be sent to: Lic. Luis R. Ramos Lander0 President & CEO Aerotransporte de Carga Union, S.A. de C.V. Quetzalcoatl No. 113 3er Piso Col. Penon de 10s Banos Delegacion Venustiano Carranza Mexico 15520, D.F. Mexico Pierre Murphy Law Offices of Pierre Murphy 1200 New Hampshire Avenue, NW Suite 800 Washington, DC 20036 Telephone: (202) 776-3980 Facsimile: (202) 776-3975 Email: pmurphy@lopmurphy.com Attorney for Aerotransporte de Carga Union, S.A. de. C.V. NOTICE: ANY PERSON WHO WISHES TO SUPPORT OR OPPOSE THIS APPLICATION MUST BY MAY 31,2004 FILE AN ANSWER WITH THE DEPARTMENT OF TRANSPORTATION AND SERVE A COPY ON THE APPLICANT AND ALL OF THE PERSONS SERVED WITH THIS APPLICATION. IT IS REQUESTED THAT THIS APPLICATION BE PROCESSED UNDER SUBPART C OF THE DEPARTMENT S REGULATIONS. May 14,2004
BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. ) Application of ) ) AEROTRANSPORTE DE CARGA ) UNION, S.A. DE C.V. ) For an Exemption to Engage in Scheduled Air ) Transportation of Property and Mail Pursuant to) 49 U.S.C. $40109 1 (U.S. - Mexico) 1 1 Docket OST-2004 APPLICATION FOR AN EXEMPTION Pursuant to 49 U.S.C. $40109 and the Department s Procedural Regulations, Aerotransporte de Carga Union, S.A. de C.V. ( AeroUnion or Applicant ) hereby submits its application for an Exemption from 49 U.S.C. $41301 to the extent necessary to permit AeroUnion to engage in scheduled foreign air transportation of property and mail on the following route: Guadalajara, Mexico - Los Angeles, CA AeroUnion respectfully requests that the Department accord this application and its accompanying exhibits expedited consideration under the nonhearing procedures set forth in Subpart C of the Department s Procedural Regulations.
APPLICATION OF AEROTRANSPORTE DE CARGA UNION, S.A. DE C.V. In support of its exemption application herein and pursuant to the Department s Procedural Regualations, AeroUnion submits the following information: 1. AeroUnion is a flag carrier of the United Mexican States which currently holds exemption authority to conduct both scheduled and charter U.S.-Mexico all-cargo services. By a Notice of Action Taken ( NOAT ) dated December 9,2003, the Department renewed AeroUnion s exemption authority to conduct scheduled all-cargo service on the scheduled routes Mexico City/Guadalajara/Monterrey and Dayton, OH (See: Docket OST-02-13864); and by NOATs dated August 22,2003 and September 9,2003, the Department granted AeroUnion exemption authority to conduct scheduled all-cargo service on the scheduled routes Guadalajara - Miami/Chicago; Mexico City - ChicagoLos Angeles; Mexico City/Guadalara - Huntsville (See: Docket OST-2003-15861). By a NOAT dated April 26, 2001, the Department granted AeroUnion its original exemption authority to conduct U.S. - Mexico all-cargo charters. &: Docket OST-00-843 8, with subsequent NOAT renewals. AeroUnion continues to conducted large numbers of U.S. - Mexico all-cargo scheduled and charter flights on a variety of U.S. - Mexico routings using A-300B4-203F aircraft. 2. Applicant is seeking an exemption authorizing it to provide foreign scheduled all- cargo air transportation on the U.S.-Mexico scheduled route listed above. Round-trip non- 8437. 1 AeroUnion s application for a Foreign Air Carrier Permit remains pending in Docket OST-00-2
APPLICATION OF AEROTRANSPORTE DE CARGA UNION, S.A. DE C.V. stop service will be operated week-daily using AeroUnion s A-300B4-203F aircraft. 3. The aviation relationship between the U.S. and Mexico is governed by the Air Transport Agreement dated August 15,1960, (EIF January 17,1961) as amended by Memoranda of Consultations dated November 21,1991 and January 26,1999. Pursuant to this Agreement, as amended, duly licensed airlines of Mexico may operate scheduled and charter and all-cargo services to and from the U.S. AeroUnion has been authorized by the Mexican Government to provide scheduled all-cargo service on this route and understands that designation was effectuated May 10,2004. Enclosed herewith are Notes from the Mexican DGAC to the Ministry of Foreign Relations directing that the Ministry designate AeroUnion for service on the U.S. - Mexico routes indicated above. AeroUnion understands that pursuant to the U.S. - Mexico Air Service Agreement, AeroUnion was the fifth designated Mexico scheduled all-cargo carrier. See: Docket OST-02-13864 (Mexico City / Guadalajara - Dayton Exemption and designation.) 4. Pursuant to 49 U.S.C. $40109, the Department may grant an exemption if it finds that such an award is consistent with the public interest. The designation of a foreign air carrier by its homeland government pursuant to a bilateral agreement is clearly the most significant factor in determining whether grant of an application is in the public interest. &. See: Linea Aerea Nacional de Chile, Foreign Permit, 26 C.A.B. (1958), where the Civil Aeronautics Board stated as follows: 3
APPLICATION OF AEROTRANSPORTE DE CARGA UNION, S.A. DE C.V. Where, as here, the applicant has shown that it holds the appropriate designation under an effective bilateral agreement to operate the route embraced by the application, the applicant has presented highly significant evidence bearing on the public Interest. See also: Application of Aerovias Venezolanas. S.A., Order 86-8-88 at 3 (provision for authority in a bilateral is prima facie evidence that grant thereof is in the public interest); and Aerolineas Peruanas Foreign Permit, 3 1 C.A.B. 18 1 (1960). The same findings are warranted herein, where AeroUnion is designated carrier for the routes sought to be served. 5. In addition to being consistent with the U.S. - Mexico bilateral, AeroUnion s proposed new Mexico - U.S. scheduled all-cargo services will generate significant public benefits by providing U.S. and Mexican shippers with a new all-cargo service option. Moreover, AeroUnion s proposed schedule will continue to hrther the growing business and cultural links between the U.S. and Mexico, including many new business opportunities being developed under the North American Free Trade Agreement ( NAFTA ). Grant of this application is, therefore, in the public interest. 6. AeroUnion is fit, willing, and able to provide the additional U.S.-Mexico scheduled all-cargo services applied for herein. The officers, directors and key management personnel all possess substantial aviation experience and are all highly experienced in their respective fields. 4
APPLICATION OF AEROTRANSPORTE DE CARGA UNION, S.A. DE C.V. 7. Because of the limited scope of its proposed operations, the issuance to Applicant of the exemption sought herein will not constitute a major federal action significantly affecting the quality of the human environment within the meaning of 5 105(2)(c) of the National Environmental Policy Act or a major regulatory action under the Energy Policy and Conservation Act. WHEREFORE, Aerotransporte de Carga Union, S.A. de C.V. respectfully requests that the Department grant it an exemption authorizing scheduled all-cargo service on the following route: Guadalajara, Mexico - Los Angeles, CA, and for such other, further or different relief as may be deemed necessary by the Department. f ------- P emurphy aw Offices of Pierre Murphy 1200 New Hampshire Avenue, NW Suite 800 Washington, DC 20036 Telephone: (202) 776-3980 Facsimile: (202) 776-3975 Email: pmurphy@lopmurphy.com May 14,2004 Attorney for Aerotransporte de Carga Union, S.A. de C.V. 5
Certificate of Service I hereby certify that on May 14,2004, a copy of the foregoing Application of Aerotransporte de Carga Unih, S.A. de C.V. was served via U.S. Mail to the following persons: Marshall S. Sinick ALASKA AIRLINES Squire, Sanders & Dempsey 1201 Pennsylvania Ave., N.W. Washington, D.C. 20004 msinick@ssd.com David Kirstein AMERICA WEST Baker & Hostetler 1050 Connecticut Avenue, N.W. Suite 1100 Washington, D.C. 20036 dkirstein@bakerlaw.com Carl Nelson, Jr. Associate General Counsel AMERICAN AIRLINES 1101 17th Street, N.W. #600 Washington, D.C. 20036 carl.nelson@aa.com Brian Hunt AMERICAN TRANS AIR General Counsel P.O. Box 51609 Indianapolis, IN 4625 1 brian. hunt@iflyata.com John Richardson AMERLTET INTERNATIONAL John L. Richardson, PLLC 1156 15th Street, N.W. Suite 1105 Washington, D.C. 20005 jrichardsonaj ohnlrichardson.com Hershel Kamen CONTINENTAL AIRLINES Dept. HQSGV P.O. Box 4607 Houston, TX 772 10-4607 hkamen@coair.com John Moloney DELTA AIRLINES 1275 K Street, N.W. Suite 1200 Washington, D.C. 20005 j oh. molone y @del t a. com Stephen Lachter ASTAR Lachter & Clements 1150 Connecticut Avenue, N.W. Suite 900 Washington, D.C. 20036 lachter@starpower.net Angela Bird FEDERAL EXPRESS 3620 Hacks Cross Road Building B, 3rd Floor Memphis, TN 38125 anbird@fedex.com Edward Faberman FRONTIER AIRLINES Ungaretti & Harris 1500 K Street, N.W. Suite 250 Washington, D.C. 20005 epfaberman@uhlaw.com Megan Rae Rosia NORTHWEST AIRLINES 901 15th Street, N.W. #500 Washington, D.C. 20005 megan.rosia@nwa.com Jeffrey Manley UNITED AIRLINES Wilmer Cutler & Pickering 2445 M Street, N.W. Washington, D.C. 20037 j manley@wilmer.com
David Vaughan UPS Kelley, Drye & Warren 1200 19th Street, N.W. Suite 500 Washington, D.C. 20036 dvaughan@kelleydrye.com Joel Burton Pat Rizzi US AIRWAYS O'Melveny & Myers, LLP 1625 Eye Street, N.W. Washington, D.C. 20006-4001 j burton@omm.com prizzi@omm.com Office of Transportation Affairs (via US mail) U.S. Department of State Main Building 2201 C Street, N.W. Room 5830, EB/TRA/SN Washington, D.C. 20520 U.S. Department of State Office of Civil Aviation Room 553 1 EB/TRA/AN 2201 C Street, N.W. Washington, D.C. 20520 Int'l Liason Staff Manager (via US mail) Flight Standards Service AFS-200 Federal Aviation Administration 800 Independence Avenue, S.W. Room 821 Washington, D.C. 20591 Manager (via US mail) FAA-FS-DFW-IF0 P.O. Box 619020 DFW Airport, TX 75261 Kristin K. Leake