Ask the Scholar
Document scope · 1 page
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory.
For page-specific OCR and visual context, open one of the page chats.
Scholar Source Context
Document identity
localId
118567818
label
JGR/Civil Aviation Board Decisions (15 of 16)
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
118567818
contentType
document
title
JGR/Civil Aviation Board Decisions (15 of 16)
citationUrl
identifierLocal
485
collections
Records of the Office of Counsel to the President (Reagan Administration)
John Roberts' Subject Files
thumbnailUrl
largeImageUrl
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
118567818
coverageEndDate
logicalDate
1986-12-31
year
1986
coverageStartDate
logicalDate
1982-01-01
year
1982
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
0883a1ec13cacb0b
ocrText
Ronald Reagan Presidential Library
Digital Library Collections
This is a PDF of a folder from our textual collections.
Collection: Roberts, John G.: Files
Folder Title: JGR/Civil Aviation Board Decisions
(15 of 16)
Box: 10
To see more digitized collections visit:
https://reaganlibrary.gov/archives/digital-library
To see all Ronald Reagan Presidential Library inventories visit:
https://reaganlibrary.gov/document-collection
Contact a reference archivist at: [email protected]
Citation Guidelines: https://reaganlibrary.gov/citing
National Archives Catalogue: https://catalog.archives.gov/
WITHDRAWAL SHEET
Ronald Reagan Library
Collection Name
Withdrawer
IGP
8/30/2005
File Folder
JGR/CIVIL AVIATION BOARD DECISIONS (15 OF 16)
FOIA
F05-139/01
Box Number
10
COOK
73IGP
DOC Doc Type
Document Description
No of Doc Date Restrictions
our I - Reagan Presidential Record
NO
Pages
1 APPLICATIO SUMMARY APPLICATION FROM AERO
1
ND
B4
962
N
CHAGO FOR FOREIGN AIR CARRIER
PERMIT (OPEN IN WHOLE)
2
APPLICATIO SUMMARY APPLICATION FROM
1
ND
B4
963
N
TRADEWINDS AIRWAYS FOR FOREIGN
AIR CARRIER PERMIT (OPEN IN WHOLE)
Freedom of Information Act - [5 U.S.C. 552(b)]
B-1 National security classified information [(b)(1) of the FOIA]
B-2 Release would disclose internal personnel rules and practices of an agency [(b)(2) of the FOIA]
B-3 Release would violate a Federal statute [(b)(3) of the FOIA]
B-4 Release would disclose trade secrets or confidential or financial information [(b)(4) of the FOIA]
B-6 Release would constitute a clearly unwarranted Invasion of personal privacy [(b)(6) of the FOIA]
B-7 Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA]
B-8 Release would disclose information concerning the regulation of financial institutions [(b)(8) of the FOIA]
B-9 Release would disclose geological or geophysical information concerning wells [(b)(9) of the FOIA]
E.O. 13233
C. Closed in accordance with restrictions contained in donor's deed of gift.
THE WHITE HOUSE
WASHINGTON
November 2, 1984
MEMORANDUM FOR RICHARD G. DARMAN
ASSISTANT TO THE PRESIDENT
FROM:
JOHN G. ROBERTS
DER
ASSOCIATE COUNSEL TO THE PRESIDENT
SUBJECT:
Civil Aeronautics Board Decisions:
Arrow Air; Key Airlines; Skystar
International; Connie Kalita Services;
London-Frankfurt; and Spokane-Alberta
Service Case
Counsel's Office has reviewed the above-referenced CAB
decisions and related materials, and has no legal objection
to the procedure that was followed with respect to
Presidential review of such decisions under 49 U.S.C.
$ 1461 (a).
We also have no legal objection to OMB's recommendation that
the President not disapprove these orders or to the substance
of the letter from the President to the CAB Chairman prepared
by OMB.
ID # 244992 CU
WHITE HOUSE
CORRESPONDENCE TRACKING WORKSHEET
o - OUTGOING
H . INTERNAL
I . INCOMING
Date Correspondence
Received (YY/MM/DD)
/
Name of Correspondent:
Richard / Darman
MI Mail Report
User Codes: (A)
(B)
(C)
Subject: CAB Decision ve Arrow Airi key
Airlines Skenstar International; Connie
Kalita Services: London - Fran kfurt and
Spokane -Alberta Service Case
ROUTE TO:
ACTION
DISPOSITION
Tracking
Type
Completion
Action
Date
of
Date
Office/Agency
(Staff Name)
Code
YY/MM/DD
Response
Code
YY/MM/DD
Cutton
ORIGINATOR 84111107
/
/
Referral Note:
CUAT 18
B 84111101
584,11,05
Referral Note:
noon
/
/
/ /
-
Referral Note:
/
/
/
/
-
Referral Note:
/
/
/
/
I
Referral Note:
ACTION CODES:
DISPOSITION CODES:
A Appropriate Action
I into Copy Only/No Action Necessary
A Answered
C Completed
C - Comment/Recommendation
R Direct Reply w/Copy
B - Non-Special Referral
S Suspended
D Draft Response
S For Signature
F Furnish Fact Sheet
X Interim Reply
to be used as Enclosure
FOR OUTGOING CORRESPONDENCE
Type of Response = Initials of Signer
Code = "A"
Completion Date = Date of Outgoing
Comments:
Keep this worksheet attached to the original incoming letter.
Send all routing updates to Central Reference (Room 75, OEOB).
Always return completed correspondence record to Central Files.
Refer questions about the correspondence tracking system to Central Reference, ext. 2590.
5/81
EXECUTIVE OFFICE OF THE PRESIDENT
SYECUTIVE GUNA OFFICE
OFFICE OF MANAGEMENT AND BUDGET
STATE
WASHINGTON, D.C. 20503
NOV 1 1984
ACTION
MEMORANDUM FOR:
ASSISTANT TO THE PRESIDENT
AND DEPUTY TO THE CHIEF OF STAFF
SUBJECT:
Civil Aeronautics Board Decisions:
Arrow Air, Inc.
Connie Kalitta Services, Inc.
Docket 41617
Docket 42125
Date due: November 12, 1984
Date due: November 18, 1984
Key Airlines, Inc.
London-Frankfurt
Docket 42171
Route Proceeding
Date due: November 26, 1984
Docket 42056
Date due: December 10, 1984
Skystar International, Inc.
Spokane-Alberta Service Case
Fitness Investigation
Docket 41638
Docket 41675
Date due: November 20, 1984
Date due: November 20, 1984
Attached is a memorandum for the President about the above
international aviation cases. The interested executive agencies
have reviewed the Board's decisions and have no objection to the
proposed orders.
These are routine, noncontroversial matters. No foreign policy
or national defense reasons for disapproving the Board's orders
have been identified. I recommend that the President sign the
attached letter to the Chairman which indicates that he does not
intend to disapprove the Board's orders within the 60 days
allowed by statute. Otherwise, the Board's orders become final
on the 61st day.
Original signed by
Constance Horner
Constance Horner
Associate Director
Economics and Government
Attachments:
Memorandum to the President
CAB letters of transmittal
CAB orders
Letter to the Chairman
EXECUTIVE OFFICE OF THE PRESIDENT
STATE
UNITED
OFFICE OF MANAGEMENT AND BUDGET
STRECTIVE
WASHINGTON, D.C. 20503
NOV 1 1984
ACTION
MEMORANDUM FOR THE PRESIDENT
SUBJECT:
Civil Aeronautics Board Decisions:
Arrow Air, Inc.
Connie Kalitta Services, Inc.
Docket 41617
Docket 42125
Date due: November 12, 1984
Date due: November 18, 1984
Key Airlines, Inc.
London-Frankfurt
Docket 42171
Route Proceeding
Date due: November 26, 1984
Docket 42056
Date due: December 10, 1984
Skystar International, Inc.
Spokane-Alberta Service Case
Fitness Investigation
Docket 41638
Docket 41675
Date due: November 20, 1984
Date due: November 20, 1984
The Civil Aeronautics Board (CAB) proposes to take the following
actions with regard to the above international aviation cases:
-- Amend the certificate of Arrow Air, Inc., allowing Arrow to
add Paramaribo, Surinam, to its current South and Central
American points of service.
-- Authorize Connie Kalitta Services, Inc., to engage in foreign
charter air transportation of property and mail.
- Authorize Key Airlines, Inc to engage in foreign charter
air transportation of persons, property, and mail between the
United States and Canada, Mexico, certain points in the
Caribbean, and South or Central America.
- Approve an agreement between the Board's Bureau of
International Aviation, Northwest Airlines, Inc., and World
Airways, Inc., whereby Northwest and World are each awarded a
five-year experimental certificate to carry local traffic
between London, England, and Frankfurt, Federal Republic of
Germany. Only one carrier would be authorized to provide
service at any given time, with Northwest providing service
in the peak summer season and World in the off-peak winter
season. Each carrier is given back-up authority during the
other carrier's assigned season. Concurrently, the Board
also proposes to remove the existing, unused authority of Air
Florida, Inc., and Trans World Airlines, Inc., for the
London-Frankfurt market.
-- Find Skystar International, Inc., fit to provide service
authorized by a proposed certificate which allows Skystar to
engage in foreign charter air transportation of persons,
property, and mail.
2
-- Award primary authority to serve the Spokane-Alberta market
to Alaska Airlines, Inc., with back-up authority given to
Cascade Airways, Inc. Concurrently, the Board proposes to
remove the unused authority of Republic Airlines, Inc., for
the same market.
The Departments of State, Defense, Justice, and Transportation
and the National Security Council have not identified any foreign
policy or national defense reasons for disapproving the orders in
whole or in part.
The Office of Management and Budget recommends that you approve
the Board's decisions by signing the attached letter to the
Chairman which indicates that you do not intend to disapprove the
Board's orders within the 60 days allowed by statute for your
review. Also, OMB recommends that you state in your letter that
no national defense or foreign policy reason underlies your
actions. This will preserve whatever opportunity is available
under the statute for judicial review.
Original signed by
Constance Horner
Constance Horner
Associate Director
Economics and Government
Attachments:
CAB letters of transmittal
CAB orders
Letter to the Chairman
Options and Implementation Actions:
( ) 1) Approve the Board's orders and preserve whatever
opportunity is available for judicial review (DOS, DOD,
DOJ, DOT, NSC, OMB).
-- Sign the attached letter to the Chairman.
( ) 2) Approve the Board's orders and do nothing to preserve
whatever opportunity is available for judicial review.
- Implementation materials to be prepared.
(
) 3) Disapprove the Board's orders.
- Implementation materials to be prepared.
( ) 4) See me.
THE WHITE HOUSE
WASHINGTON
Dear Mr. Chairman:
I have reviewed the orders proposed by the Civil Aeronautics
Board in the following cases:
Arrow Air, Inc.
Connie Kalitta Services, Inc.
Docket 41617
Docket 42125
Key Airlines, Inc.
London-Frankfurt
Docket 42171
Route Proceeding
Docket 42056
Skystar International, Inc.
Spokane-Alberta Service Case
Fitness Investigation
Docket 41638
Docket 41675
I have decided not to disapprove the Board's orders. No foreign
relations or national defense reason underlies my actions.
Sincerely,
The Honorable Dan McKinnon
Chairman
Civil Aeronautics Board
Washington, D.C. 20428
244992SS
Document No.
WHITE HOUSE STAFFING MEMORANDUM
DATE: 11/1/84
ACTION/CONCURRENCE/COMMENT DUE BY:
NOON Monday, 11/5
CAB DECISION RE ARROW AIR: KEY AIRLINES; SKYSTAR INTL.; CONNIE
SUBJECT:
KALITTA SERVICES: LONDON-FRANKFURT AND SPOKANE-ALBERTA SERVICE CASE
ACTION FYI
ACTION FYI
VICE PRESIDENT
MURPHY
MEESE
OGLESBY
BAKER
ROGERS
DEAVER
SPEAKES
STOCKMAN
SVAHN
DARMAN
P
185
VERSTANDIG
FIELDING
WHITTLESEY
FULLER
HERRINGTON
HICKEY
McFARLANE
McMANUS
REMARKS:
May we have your comments by noon Monday, November 5. Thank you.
RESPONSE:
1934 NOV - / Pill 4: 12
Richard G. Darman
Assistant to the President
Ext. 2702
THE WHITE HOUSE
WASHINGTON
December 3, 1984
MEMORANDUM FOR RICHARD G. DARMAN
ASSISTANT TO THE PRESIDENT
FROM:
JOHN G. ROBERTS, JR. .JJR
ASSOCIATE COUNSEL TO THE PRESIDENT
SUBJECT:
Civil Aeronautics Board Decisions:
Alfonso Airways and Export, Inc.,
Puerto Rico - Venezuela Service
Proceeding, Pacific Freight Airlines,
Inc., and JFC Enterprises, Inc.,
d/b/a Concord International Airlines
Our office has reviewed the above-referenced CAB decisions and
related materials, and has no legal objection to the procedure
that was followed with respect to Presidential review of such
decisions under 49 U.S.C. § 1461 (a).
We also have no legal objection to OMB's recommendation that the
President not disapprove these orders or to the substance of the
letter from the President to the CAB Chairman prepared by OMB.
bcc: Dianna Holland
ID #
CU
WHITE HOUSE
CORRESPONDENCE TRACKING WORKSHEET
0 - OUTGOING
H INTERNAL
I . INCOMING
Date Correspondence
Received (YY/MM/DD)
/
/
Name of Correspondent:
Richard Darman
MI Mail Report
User Codes: (A)
(B)
(C)
Subject: CAB Decisions re. Alfonso Airways
4 Export, Inc., Puerto Rico - Venezuela Services
Proceeding, Pacific Freight Airlines, Inc,
and JFC Enterprises, Inc., d/b/a Concord
international Airlines
ROUTE TO:
ACTION
DISPOSITION
Tracking
Type
Completion
Action
Date
of
Date
Office/Agency
(Staff Name)
Code
YY/MM/DD
Response
Code
YY/MM/DD
Cuttore
ORIGINATOR 84,11,30
/
/
Referral Note:
CUAT 18
R 84,11,30
584,12,04 584,
Referral Note:
/
/
/
/
Referral Note:
/
/
/
/
I
Referral Note:
/
/
/
/
-
Referral Note:
ACTION CODES:
DISPOSITION CODES:
A Appropriate Action
I * Info Copy Only/No Action Necessary
A Answered
C Completed
C - Comment/Recommendation
R Direct Reply w/Copy
B . Non-Special Referral
S Suspended
D - Draft Response
S For Signature
F - Furnish Fact Sheet
X Interim Reply
to be used as Enclosure
FOR OUTGOING CORRESPONDENCE
Type of Response = Initials of Signer
Code = "A"
Completion Date = Date of Outgoing
Comments:
Keep this worksheet attached to the original incoming letter.
Send all routing updates to Central Reference (Room 75, OEOB).
Always return completed correspondence record to Central Files.
Refer questions about the correspondence tracking system to Central Reference, ext. 2590.
5/81
Document No.
WHITE HOUSE STAFFING MEMORANDUM
DATE: 11/30/84
12/4/84
ACTION/CONCURRENCE/COMMENT DUE BY:
CAB DECISIONS RE: ALFONSO AIRWAYS & EXPORT, INC., PUERTO RICO -
SUBJECT:
VENEZUELA SERVICE PROCEEDING, PACIFIC FREIGHT AIRLINES, INC, AND
JFC ENTERPRISES, INC., d/b/a CONCORD INTERNATIONAL AIRLINES
ACTION FYI
ACTION FYI
VICE PRESIDENT
MURPHY
MEESE
OGLESBY
BAKER
ROGERS
DEAVER
SPEAKES
STOCKMAN
SVAHN
DARMAN
P
SS VERSTANDIG
FIELDING
WHITTLESEY
FULLER
HERRINGTON
HICKEY
McFARLANE
McMANUS
REMARKS:
May we have your comments by c.o.b. Tuesday, December 4. Thank you.
RESPONSE:
1984 NOV 30 Fill 6: 26
Richard G. Darman
Assistant to the President
Ext. 2702
PRESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE
UNITED
OFFICE OF MANAGEMENT AND BUDGET
SYECUTIVE
SERVIS
WASHINGTON, D.C. 20503
NOV 30 1984
ACTION
MEMORANDUM FOR:
ASSISTANT TO THE PRESIDENT
AND DEPUTY TO THE CHIEF OF STAFF
SUBJECT:
Civil Aeronautics Board Decisions:
Alfonso Airways & Export, Inc.
Pacific Freight Airlines, Inc.
Fitness Investigation
Docket 42181
Docket 42028
Date due: December 14, 1984
Date due: December 10, 1984
Puerto Rico - Venezuela
JFC Enterprises, Inc., d/b/a
Service Proceeding
Concord International Airlines
Docket 41998
TRA Airlines, Inc.
Date due: December 17, 1984
Docket 42498
Date due: December 18, 1984
Attached is a memorandum for the President about the above
international aviation cases. The interested executive agencies
have reviewed the Board's decisions and have no objection to the
proposed orders.
These are routine, noncontroversial matters. No foreign policy
or national defense reasons for disapproving the Board's orders
have been identified. I recommend that the President sign the
attached letter to the Chairman which indicates that he does not
intend to disapprove the Board's orders within the 60 days
allowed by statute. Otherwise, the Board's orders become final
on the 61st day.
Original signed by
constance Horner
Constance Horner
Associate Director
Economics and Government
Attachments:
Memorandum to the President
CAB letters of transmittal
CAB orders
Letter to the Chairman
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE
CENHO
OFFICE OF MANAGEMENT AND BUDGET
DECUTIVE
STATES
WASHINGTON, D.C. 20503
NOV 30 1984
ACTION
MEMORANDUM FOR THE PRESIDENT
SUBJECT:
Civil Aeronautics Board Decisions:
Alfonso Airways & Export, Inc.
Pacific Freight Airlines, Inc.
Fitness Investigation
Docket 42181
Docket 42028
Date due: December 14, 1984
Date due: December 10, 1984
Puerto Rico - Venezuela
JFC Enterprises, Inc., d/b/a
Service Proceeding
Concord International Airlines
Docket 41998
TRA Airlines, Inc.
Date due: December 17, 1984
Docket 42498
Date due: December 18, 1984
The Civil Aeronautics Board (CAB) proposes to take the following
actions with regard to the above international aviation cases:
-- Authorize Alfonso Airways & Export, Inc., to engage in
foreign air transportation of persons, property, and mail in
the United States-Dominican Republic and the United States-
Costa Rica markets.
-- Authorize Pacific Freight Airlines, Inc., to engage in
foreign air transportation of property and mail between the
United States and Taiwan, Korea, Thailand, Indonesia, and
Singapore.
-- Authorize American Airlines, Inc., to engage in foreign air
transportation of persons, property, and mail for the market
between Puerto Rico and Venezuela. Concurrently, the Board
proposes to award back-up authority for the market to Arrow
Air, Inc., and to revoke the current unused authority for the
market, held by Pan American World Airways, Inc.
-- Revoke the foreign charter air transportation authorities of
JFC Enterprises, Inc., and TRA Airlines, Inc. Neither
airline is currently operating and neither objected to the
Board's proposed action.
2
The Departments of State, Defense, Justice, and Transportation
and the National Security Council have not identified any foreign
policy or national defense reasons for disapproving the orders in
whole or in part.
The Office of Management and Budget recommends that you approve
the Board's decisions by signing the attached letter to the
Chairman which indicates that you do not intend to disapprove the
Board's orders within the 60 days allowed by statute for your
review. Also, OMB recommends that you state in your letter that
no national defense or foreign policy reason underlies your
actions. This will preserve whatever opportunity is available
under the statute for judicial review.
Original signed by
Constance Horner
Constance Horner
Associate Director
Economics and Government
Attachments:
CAB letters of transmittal
CAB orders
Letter to the Chairman
Options and Implementation Actions:
( ) 1) Approve the Board's orders and preserve whatever
opportunity is available for judicial review (DOS, DOD,
DOJ, DOT, NSC, OMB).
- Sign the attached letter to the Chairman.
( ) 2) Approve the Board's orders and do nothing to preserve
whatever opportunity is available for judicial review.
-- Implementation materials to be prepared.
( ) 3) Disapprove the Board's orders.
-- Implementation materials to be prepared.
( ) 4) See me.
THE WHITE HOUSE
WASHINGTON
Dear Mr. Chairman:
I have reviewed the orders proposed by the Civil Aeronautics
Board in the following cases:
Alfonso Airways & Export, Inc.
Pacific Freight Airlines, Inc.
Fitness Investigation
Docket 42181
Docket 42028
Puerto Rico - Venezuela
JFC Enterprises, Inc., d/b/a
Service Proceeding
Concord International Airlines
Docket 41998
TRA Airlines, Inc.
Docket 42498
I have decided not to disapprove the Board's orders. No foreign
relations or national defense reason underlies my actions.
Sincerely,
The Honorable Dan McKinnon
Chairman
Civil Aeronautics Board
Washington, D.C. 20428
THE WHITE HOUSE
WASHINGTON
December 20, 1984
MEMORANDUM FOR RICHARD G. DARMAN
ASSISTANT TO THE PRESIDENT
FROM:
JOHN G. ROBERTS, JR.
ASSOCIATE COUNSEL TO THE PRESIDENT
SUBJECT:
Civil Aeronautics Board Decisions:
Aero-Chago, S.A. & Tradewinds
Airways Ltd.
Our office has reviewed the above-referenced CAB decisions and
related materials, and has no legal objection to the procedure
that was followed with respect to Presidential review of such
decisions under 49 U.S.C. $ 1461 (a).
We also have no legal objection to OMB's recommendation that the
President not disapprove these orders or to the substance of the
letter from the President to the CAB Chairman prepared by OMB.
bcc: Dianna Holland
THE WHITE HOUSE
WASHINGTON
December 20, 1984
MEMORANDUM FOR RICHARD G. DARMAN
ASSISTANT TO THE PRESIDENT
FROM:
JOHN G. ROBERTS, JR.
OSR
ASSOCIATE COUNSEL TO THE PRESIDENT
SUBJECT:
Civil Aeronautics Board Decisions:
Aero-Chago, S.A. & Tradewinds
Airways Ltd.
Our office has reviewed the above-referenced CAB decisions and
related materials, and has no legal objection to the procedure
that was followed with respect to Presidential review of such
decisions under 49 U.S.C. $ 1461 (a).
We also have no legal objection to OMB's recommendation that the
President not disapprove these orders or to the substance of the
letter from the President to the CAB Chairman prepared by OMB.
bcc: Dianna Holland
THE WHITE HOUSE
WASHINGTON
December 20, 1984
MEMORANDUM FOR RICHARD G. DARMAN
ASSISTANT TO THE PRESIDENT
FROM:
JOHN G. ROBERTS, JR. OZR
ASSOCIATE COUNSEL TO THE PRESIDENT
SUBJECT:
Civil Aeronautics Board Decisions:
Aero-Chago, S.A. & Tradewinds
Airways Ltd.
Our office has reviewed the above-referenced CAB decisions and
related materials, and has no legal objection to the procedure
that was followed with respect to Presidential review of such
decisions under 49 U.S.C. $ 1461 (a).
We also have no legal objection to OMB's recommendation that the
President not disapprove these orders or to the substance of the
letter from the President to the CAB Chairman prepared by OMB.
bcc: Dianna Holland
ID #.
CU
WHITE HOUSE
CORRESPONDENCE TRACKING WORKSHEET
o . OUTGOING
H . INTERNAL
I . INCOMING
Date Correspondence
Received (YY/MM/DD)
/
/
Name of Correspondent:
Richard Darman
MI Mail Report
User Codes: (A)
(B)
(C)
Subject: CHB Decisions Acro-Chango S.A. & Tradewind
Airways Ltd.
ROUTE TO:
ACTION
DISPOSITION
Tracking
Type
Completion
Action
Date
of
Date
Office/Agency
(Staff Name)
Code
YY/MM/DD
Response
Code
YY/MM/DD
CUHOU
ORIGINATOR 8411220
/ /
Referral Note:
CURT 18
Pt 84,12,20
584,12+20
Referral Note:
5:00pm
/ /
/ /
-
Referral Note:
/ /
/
/
-
Referral Note:
/ /
/ /
-
Referral Note:
ACTION CODES:
DISPOSITION CODES:
A . Appropriate Action
I - Info Copy Only/No Action Necessary
A Answered
C Completed
C - Comment/Recommendation
R - . Direct Reply w/Copy
B - Non-Special Referral
S Suspended
D Draft Response
S For Signature
F - Furnish Fact Sheet
X Interim Reply
to be used as Enclosure
FOR OUTGOING CORRESPONDENCE:
Type of Response = Initials of Signer
Code = "A"
Completion Date = Date of Outgoing
Comments:
Keep this worksheet attached to the original incoming letter.
Send all routing updates to Central Reference (Room 75, OEOB).
Always return completed correspondence record to Central Files.
Refer questions about the correspondence tracking system to Central Reference, ext. 2590.
5/81
Document No.
WHITE HOUSE STAFFING MEMORANDUM
DATE: 12/20/84
ACTION/CONCURRENCE/COMMENT DUE BY: 5:00 P.M. TODAY 12/20
CAB DECISIONS: AERO-CHANGO, S.A. & TRADEWINDS AIRWAYS LTD.
SUBJECT:
ACTION FYI
ACTION FYI
VICE PRESIDENT
MURPHY
MEESE
OGLESBY
BAKER
ROGERS
DEAVER
SPEAKES
STOCKMAN
SVAHN
1
DARMAN
P
SS VERSTANDIG
FIELDING
WHITTLESEY
FULLER
HERRINGTON
HICKEY
McFARLANE
McMANUS
REMARKS:
Please provide any comments/recommendations by c.o.b. today.
Thank you.
RESPONSE:
Richard G. Darman
1934 DEC 20 M 10: 49
Assistant to the President
Ext. 2702
EXECUTIVE OFFICE OF THE PRESIDENT
UNITED -
OFFICE OF MANAGEMENT AND BUDGET
STATE
WASHINGTON, D.C. 20503
DEC 20 1984
ACTION
MEMORANDUM FOR THE PRESIDENT
SUBJECT: Civil Aeronautics Board Decisions:
Aero-Chago, S.A.
Tradewinds Airways Limited
Docket 41056
Docket 41484
Date due: January 5, 1985
Date due: February 8, 1985
The Civil Aeronautics Board proposes to take the following
actions with regard to the above international air cases:
-- Authorize Aero-Chago, S.A., to engage in nonscheduled
foreign air transportation of property and mail between the
Dominican Republic and Miami, Florida, and also between the
Dominican Republic and certain points in the Caribbean.
-- Issue a permit authorizing Tradewinds Airways Limited to
engage in scheduled foreign air transportation of property
and mail between London, England, and certain points in the
United States. The permit would also allow Tradewinds to
conduct various charter flights of property and mail to and
from the United States.
The Departments of State, Defense, Justice, and Transportation
and the National Security Council have not identified any foreign
policy or national defense reasons for disapproving the Board's
orders in whole or in part.
The Office of Management and Budget recommends that you approve
the Board's decisions by signing the attached letter to the
Chairman which indicates that you do not intend to disapprove the
Board's orders within the 60 days allowed by statute for your
review.
signed by
Checklance Hornez
Constance Horner
Associate Director
Economics and Government
Attachments:
CAB letters of transmittal
CAB orders
Letter to the Chairman
2
Options and Implementation Actions:
(
) 1) Approve the Board's orders (DOS, DOD, DOJ, DOT, NSC,
OMB). .
-- Sign the attached letter to the Chairman.
(
)
2) Disapprove the Board's orders.
-- Implementation materials to be prepared.
( ) 3) See me.
THE WHITE HOUSE
WASHINGTON
Dear Mr. Chairman:
I have reviewed the orders proposed by the Civil Aeronautics
Board in the following cases:
Aero-Chago, S.A.
Tradewinds Airways Limited
Docket 41056
Docket 41484
Date due: January 5, 1985
Date due: February 8, 1985
I have decided not to disapprove the Board's orders.
Sincerely,
The Honorable Dan McKinnon
Chairman
Civil Aeronautics Board
Washington, D.C. 20428
FOR OFFICIAL USE ONLY
THE CHAIRMAN
OF THE
CIVIL AERONAUTICS BOARD
THE STATE
WASHINGTON. D. C. 20428
NOV 6 1984
The President
The White House
Washington, D.C. 20500
Dear Mr. President:
I transmit the Board's proposed order on the application of Aero-Chago,
S.A., Docket 41056, for your consideration under section 801(a) of the Federal
Aviation Act of 1958, as amended by the Airline Deregulation Act of 1978. The
order will finalize the Board's tentative findings and conclusions set forth in
Order to Show Cause 84-10-32, (enclosed) unless you disapprove it within 60
days of this transmittal.
If you should decide earlier that you will not disapprove, please advise
me to that effect; this will allow earlier issuance of the authority.
We are submitting the proposed decision to you before publication under
the provisions of section 801(a) of the Federal Aviation Act of 1958. In
accordance with Executive Order 11920, however, we plan to release all unclas-
sified portions of the decision on or after the sixth day following this
transmittal unless notified by your Assistant for National Security Affairs.
Respectfully yours,
signed Dan McKinnon
Dan McKinnon
Enclosures
CC: National Security Counsil
Department of Transportation
Department of State
Department of Defense
Department of Justice
The White House
FOR OFFICIAL USE ONLY
And
FOR OFFICIAL USE ONLY
smhgleps
THE CHAIRMAN
OF THE
CIVIL AERONAUTICS BOARD
THE
IIIII
WASHINGTON. D.C. 20428
DECISE 1984
The President
The White House
Washington, D.C. 20500
Dear Mr. President:
I transmit the Board's proposed order on the application of Tradewinds
Airways Limited, Docket 41484, for your consideration under section 801(a) of
the Federal Aviation Act of 1958, as amended by the Airline Deregulation Act of
1978. The order will issue the applicant a foreign air carrier permit, and
adopt the Board's tentative decision in its Order to Show Cause 84-11-38
(enclosed) unless you disapprove it within 60 days of this transmittal.
If you should decide earlier that you will not disapprove, please advise
me to that effect; this will allow the earlier issuance of the authority.
We are submitting the proposed decision to you before publication under
the provisions of section 801(a) of the Federal Aviation of 1958. In
accordance with Executive Order 11920, however, we plan to release all unclas-
sified portions of the decision on or after the sixth day following this
transmittal unless notified by your Assistant for National Security Affairs.
Respectfully yours,
Dan McKinnon
Enclosures
FOR
UNITED STATES OF AMERICA
CIVIL AERONAUTICS BOARD
WASHINGTON, D. C.
Adopted by the Civil Aeronautics Board
at its office in Washington, D.C.
on the 30th day of October, 1984
Application of
:
:
AERO-CHAGO, S.A.
:
Docket 41056
for an initial foreign air carrier
:
permit pursuant to section 402 of
:
the Federal Aviation Act of 1958,
:
as amended
:
ORDER
By Order 84-10-32, adopted October 9, 1984, the Board directed all
interested persons to show cause why the Board should not, subject to the
disapproval of the President, issue a foreign air carrier permit to
Aero-Chago, S.A., for a period of five years to authorize it to engage in
nonscheduled foreign air transportation of property and mail, as follows:
A. Between a point or points in the Dominican Republic,
and the terminal point Miami, Florida.
B. Between a point or points in the Dominican Republic,
the intermediate points Borinquen, Ponce, and San
Juan, Puerto Rico; and St. Croix, Virgin Islands;
and the terminal point St. Thomas, Virgin Islands.
The order directed persons having objections to the Board's tentative
findings and conclusions set forth in that order, or to the issuance of
the proposed foreign air carrier permit, to file their objections within
14 days. In addition, the order provided that in the event no objections
were filed, all further procedural steps would be considered waived, and
the Secretary would enter an order which (1) would make final the Board's
tentative findings and conclusions, and (2) subject to the disapproval of
the President pursuant to section 801(a) of the Act, would issue a foreign
air carrier permit to Aero-Chago, S.A. in the specimen form attached to
that order.
No objections to Order 84-10-32 have been filed.
FOR
OFFICIAL
USE
ONLY
suf
8/6/05
- 2 -
ACCORDINGLY,
1. We make final our tentative findings and conclusions set forth in
Order 84-10-32;
2. We issue a foreign air carrier permit to Aero-Chago, S.A. in the
form attached;
3. The Secretary of the Board shall sign the permit on our behalf
and shall affix the seal of the Board; and
4. Unless disapproved by the President of the United States under
section 801(a) of the Act, this order and the permit attached shall become
effective on the 61st day after its submission to the President, 1/ or
upon the date of receipt of advice from the President that he does not
intend to disapprove the Board's order under that section, whichever is
earlier.
By the Civil Aeronautics Board:
PHYLLIS T. KAYLOR
Secretary
(SEAL)
All Members concurred.
1/ This order was submitted to the President on NOV 6 1984
The 61st day is JAN 6 1985
UNITED STATES OF AMERICA
CIVIL AERONAUTICS BOARD
WASHINGTON, D. C.
PERMIT TO FOREIGN AIR CARRIER
AERO-CHAGO, S. A.
is authorized, subject to the provisions set forth, the provisions of the
Federal Aviation Act of 1958, as amended, and the Board's orders, rules
and regulations, to engage in foreign air transportation of property and
mail, as follows:
A. Between a point or points in the Dominican Republic,
and the terminal point Miami, Florida.
B. Between a point or points in the Dominican Republic,
the intermediate points Borinquen, Ponce, and San
Juan, Puerto Rico; and St. Croix, Virgin Islands;
and the terminal point St. Thomas, Virgin Islands.
The holder shall be authorized to engage in charter trips of property
only in foreign air transportation, subject to the terms, conditions and
limitations prescribed by the Board's Regulations governing charters.
This permit and the exercise of the privileges granted in it shall be
subject to the terms, conditions and limitations attached, and to the
following:
(1) The authority granted above shall be subject to the
condition that the holder not engage in scheduled inter-
national air service.
(2) This permit shall be subject to all applicable provi-
sions of any treaty, convention, or agreement affecting
international air transportation now in effect, or that
may become effective during the period the permit remains
in effect, to which the United States and the Dominican
Republic shall be parties.
(3) In the event any practice develops which the Board
regards as inimical to fair competition, the holder and the
Board will consult and will use their best efforts to agree
upon modifications satisfactory to the Board and the holder.
- 2 -
This permit shall be effective on
, and shall
terminate five years thereafter, except that it shall be subject to
termination at any time if the authority to conduct flight operations to
and from the Dominican Republic granted by the Government of the Dominican
Republic to any carrier authorized by the United States is cancelled or
restricted.
The Civil Aeronautics Board, through its Secretary, has executed this
permit and affixed its seal on October 30, 1984.
Secretary
(SEAL)
Order 84-10-32
UNITED STATES OF AMERICA
CIVIL AERONAUTICS BOARD
WASHINGTON, D. C.
Adopted by the Civil Aeronautics Board
at its office in Washington, D. C.
on the 9th day of October, 1984
Application of
:
:
AERO-CHAGO, S.A.
:
Docket 41056
:
for an initial foreign air carrier
:
permit pursuant to section 402 of
:
the Federal Aviation Act of 1958,
:
as amended
:
STATEMENT OF TENTATIVE FINDINGS AND CONCLUSIONS
AND ORDER TO SHOW CAUSE
ERRATUM
Order 84-10-32 was not served on the original calculated date due to an
exorbitant amount of orders in the Board's printing plant. Consequently, the
dates in ordering paragraph 3 should be October 29, 1984 for objections to be
filed and November 9, 1984 for answers.
Dated: October 15, 1984
Order 84-10-32
UNITED STATES OF AMERICA
CIVIL AERONAUTICS BOARD
WASHINGTON, D. C.
Adopted by the Civil Aeronautics Board
at its office in Washington, D. C.
on the 9th day of October, 1984
Application of
:
:
AERO-CHAGO, S.A.
:
Docket 41056
:
for an initial foreign air carrier
:
permit pursuant to section 402 of
:
the Federal Aviation Act of 1958,
:
as amended
:
STATEMENT OF TENTATIVE FINDINGS AND CONCLUSIONS
AND ORDER TO SHOW CAUSE
By application filed on October 18, 1982, 1/ and noted in the
Federal Register (47 FR 49051, October 29, 1982), Aero-Chago, S.A.
(Aero-Chago), a Dominican Republic air carrier, requests an initial foreign
air carrier permit to provide nonscheduled foreign air transportation of
property and mail over the following routes:
A. Between a point or points in the Dominican Republic,
and the terminal point Miami, Florida.
1/ The application as initially filed was incomplete. By Order 82-11-1,
the Director, Bureau of International Aviation, acting under delegated
authority, deferred processing Aero-Chago's application until such time as
the applicant complied fully with the evidentiary and procedural
requirements of Part 211 and Subpart Q of Part 302. Aero-Chago did so on
January 6, 1983. In addition, by telephone call on April 23, 1983, the
staff requested that Aero-Chago clarify and supplement previously submitted
evidentiary materials. On August 18 and October 11, 1983, Aero-Chago
submitted the additional information necessary for us to proceed on its
application.
- 2 -
B. Between a point or points in the Dominican Republic,
the intermediate points Borinquen, Ponce, and San
Juan, Puerto Rico; and St. Croix, Virgin Islands;
and the terminal point St. Thomas, Virgin Islands. 2/
In addition, Aero-Chago requests that its application be processed under
Subpart Q of the Board's Procedural Regulations. 3/
There were 10 answers to the application in Docket 41056.
TENTATIVE DECISION
We have tertatively decided that grant of Aero-Chago's application is
in the public interest and request that interested persons show cause why
we should not issue the carrier a foreign air carrier permit in the
specimen form attached to this order.
In support of its application, which is summarized in Attachment A,
Aero-Chago provided the following evidentiary information as required by
Part 211 of the Board's Regulations.
OPERATING HISTORY
Aero-Chago was incorporated in the Dominican Republic in October
1981. The carrier holds an operating certificate from the Government of
the Dominican Republic authorizing it "to operate services of irregular air
transportation of passengers and cargo (with no fixed schedules) between
2/ Aero-Chago further requests a Special Authorization under Part 216 of
the Board's Regulations to allow it to commingle revenue traffic moving in
foreign air transportation along the route described in paragraph "B",
above, with traffic not moving in foreign air transportation between the
Dominican Republic and St. Kitts, Leeward Islands. We will dismiss the
Special Authorization request. Aero-Chago provided no supporting
information for it, as required by Part 216. It requested dismissal of an
identical request made in conjunction with its exemption application in
Docket 41064. We conclude that the carrier is no longer interested in
pursuing such authority in connection with its permit application. See
Order 83-3-58. Our dismissal is without prejudice to Aero-Chago filing a
Special Authorization request, properly supported pursuant to Part 216 of
the Board's Regulations.
3/ By Order 83-1-79, January 20, 1983, the Director, Bureau of
International Aviation, acting under delegated authority, granted
Aero-Chago exemption authority to engage in nonscheduled foreign air
transportation of property and mail over these routes for a period of one
year or 90 days after we submit an order to the President in this case,
whichever occurs first. In its exemption renewal application, filed
January 19, 1984, Aero-Chago relies upon the automatic-extension provisions
of the Administrative Procedure Act, 5 U.S.C. 558(c), as implemented by
Part 377 of our regulations, to keep the authority granted in Order 83-1-79
in effect pending final disposition of the instant application.
- 3 -
the Dominican Republic and points outside the country." Aero-Chago began
international operations early in 1982, providing round-trip charter
service between the Dominican Republic and Aruba. Since that time,
Aero-Chago has also operated round-trip charter flights to Punama, St.
Maarten, and Curacao. As previously noted, Aero-Chago holds exemption
authority to perform the U.S.-Dominican Republic nonscheduled cargo
operations for which it seeks permit authority. Pursuant to its exemption
authority, Aero-Chago states that it has been operating two or three weekly
round-trip flights between Santo Domingo and San Juan, and weekly flights
to the U.S. Virgin Islands.
OWNERSHIP AND CONTROL
Aero-Chago states that all of its stock is held by Dominican
citizens, 4/ that none of its stock has been pledged as collateral, and
that all of its officers, directors, and key personnel are Dominican
citizens, except its commercial manager, who is a U.S. citizen. 5/ In
addition, none of Aero-Chago's officers, directors, or key personnel holds
any stock or other interest in any U.S. or other foreign air carrier,
common carrier, or person engaged in the business of aeronautics.
Aero-Chago itself holds no stock or other interest in any other person, and
no government holds any interest in Aero-Chago.
FINANCIAL AND OPERATING FITNESS
Aero-Chago submitted audited financial statements which show that at
June 30, 1983, it had current assets of $47,000, current liabilities of
$30,000, total assets of $440,000, total liabilities of $333,000, and
stockholders' equity of $108,000. 6/ Aero-Chago states that it has been
able to meet all of its financial and transportation commitments and that
it has not been refused debt financing in whole or in part. Aero-Chago
also reported an operating profit in excess of $51,000 for the 12 months
ending June 30, 1983. Aero-Chago states that it has not received any
government financial assistance and that none is expected in the future.
Aero-Chago dry leases two L-1049 Constellation aircraft from Aerotour
Dominicano and states that it is in the process of acquiring another
Constellation. The carrier expects that its San Juan-Santo Domingo cargo
traffic will nearly double when the third Constellation aircraft is put
4/ Mr. Pedro S. Rodriguez Echevarria holds approximately 97 percent of
the company's stock and serves as Aero-Chago's chairman of the board of
directors, president, treasurer, and chief pilot. The remaining three
percent of the company's stock is held by persons who are Mr. Echevarria's
close relatives.
5/ Mr. Filipo d'Plana is Aero-Chago's commercial manager. He holds no
stock in the company.
6/ Aero-Chago's financial statements are shown in Dominican dollars,
asserted to be par with U.S. dollars.
- 4 -
into service. Aero-Chago does most of its own maintenance on its aircraft,
including a continuous inspection system. Heavy maintenance on the
aircraft is done at the facilities of the Dominican Air Force. Aero-Chago
states that it has never been refused any insurance in whole or in part,
and it has on file with the Board a certificate of insurance indicating
that its aircraft accident liability insurance coverage meets the
requirements contained in Part 205 of our Regulations.
The Dominican Republic's General Director of Civil Aeronautics has
certified that the Dominican Republic is a contracting state to the Chicago
Convention, with reference to the qualifications of Aero-Chago's pilots and
crew, and that, at the time Aero-Chago's permit application was filed, the
carrier had not violated any aeronautical law of the Dominican Republic. 7/
PUBLIC INTEREST CONSIDERATIONS
A number of U.S. and Dominican air carriers currently provide
scheduled combination and all-cargo service in the U.S.-Dominican Republic
market. U.S. flag scheduled combination service, much of it with
wide-bodied aircraft, is provided by American Airlines, Eastern Air Lines,
Capitol Air, 8/ and two commuter air carriers--Puerto Rico International
Airlines, Inc. (PRINAIR) and Ocean Air. 9/ American is also providing
all-cargo scheduled service, while The Flying Tiger Line recently received
a Dominican license to serve the market. Dominicana, the national carrier
of the Dominican Republic, provides scheduled combination service in the
market as does a Dominican commuter, Aerolineas Dominicanas. Dominican
flag scheduled all-cargo service is provided by Aeromar C. por A. and APA
International Air, S.A.
Although Aero-Chago holds the requisite authority from its government
to operate nonscheduled cargo services between the Dominican Republic and
points outside that country, our aviation agreement with the Dominican
Republic does not provide for such services. Accordingly, any award of
such nonscheduled authority must be premised on the principles of
reciprocity and a finding that the proposed transportation would be in the
public interest.
We have two primary concerns in our aviation relationship with the
Dominican Republic. First, U.S. carriers have been experiencing difficulty
in obtaining prompt conversion and remittance of their Dominican revenues
in excess of local expenses. Second, the Dominican aviation authorities
have unilaterally imposed an aircraft weight limitation in the license of
Flying Tiger.
7/ We were advised by the Federal Aviation Administration that it knows
of no reason why the Board should act unfavorably on Aero-Chago's permit
application.
8/ Capitol's Dominican authority was recently expanded to include Miami-
Port-au-Prince-Santo Domingo operations.
9/ Air Florida also served the market until it ceased all operations on
July 3, 1984.
- 5 -
Recent progress has been made on the remittance problem. We
understand that U.S. carriers serving the Dominican Republic are no longer
accumulating backlogs of funds and that Dominican Republic banking
authorities are being cooperative in seeking to release previously
accumulated U.S. carrier funds. We will continue to monitor this
situation.
During United-States Dominican Republic consultations held August 8
and 9, 1984, the United States maintained that the restriction on Flying
Tiger's license was in violation of the U.S.-D.R. Air Transport Services
Agreement. The Dominican delegation argued that the capacity provisions
in the Agreement supported imposition of the restriction and that Flying
Tiger was granted a license for the capacity (DC-8 service) it had
proposed in its application.
While we remain concerned about this matter, we do not find that
present circumstances dictate that insufficient reciprocity exists to
the extent warranting denial of the authority sought by Aero-Chago--a
small, privately held carrier. The United States, through diplomatic
channels, will pursue appropriate steps to deal with the Dominican
Republic's weight restriction on Flying Tiger's aircraft.
Other factors support a finding that adequate reciprocity exists.
U.S. carriers garner two-thirds of passenger traffic in the market. U.S.
and Dominican carriers share equally in cargo traffic. The Dominican
Republic has also granted U.S. carriers substantial operating rights
outside the Agreement. Capitol's present, and Air Florida's former
services to Puerto Plata and U.S. commuter carriers' services to Santiago
and La Romana are not provided for in the Agreement. Under these
circumstances, we find that sufficient reciprocity exists to grant the
authority requested by Aero-Chago. A grant of the requested permit
authority to Aero-Chago should serve to expand existing reciprocity and
increase competition for cargo traffic in the market, thereby benefiting
the shipping public in the form of additional price and service options.
Accordingly, we tentatively find that it is in the public interest to
grant Aero-Chago's application and issue it a foreign air transportation
of property and mail over the routes requested.
TENTATIVE FINDINGS AND CONCLUSIONS
In view of the foregoing and all the facts of record, we tentatively
find and conclude that:
1. It is in the public interest to issue a foreign air carrier
permit to Aero-Chago, S.A. in the specimen form attached, authorizing
nonscheduled foreign air transportation of property and mail between the
Dominican Republic and certain points in the United States;
- 6 -
2. Aero-Chago, S.A. is fit, willing, and able properly to perform the
nonscheduled foreign air transportation described in the specimen permit,
and to conform to the provisions of the Act, and our rules, regulations,
and requirements;
3. The public interest requires that the exercise of the privileges
granted by the permit should be subject to the terms, conditions, and
limitations contained in the specimen permit attached to this order and to
such other reasonable terms, conditions, and limitations required by the
public interest as we may prescribe;
4. The applicant is substantially owned and effectively controlled by
nationals of the Dominican Republic;
5. The proposed issuance of Aero-Chago's foreign air carrier permit
will not constitute a "major regulatory action" under the Energy Policy and
Conservation Act of 1975 as defined in section 313.4(a) (1); 10/
6. The public interest does not require an oral evidentiary hearing
on the application; and
7. Except to the extent granted, the application of Aero-Chago, S.A.
in Docket 41056 should be denied.
ACCORDINGLY,
1. We direct all interested persons to show cause why the Board
should not (1) make final its tentative findings and conclusions, and
(2) subject to the disapproval of the President pursuant to section 801(a)
of the Act, issue a foreign air carrier permit to Aero-Chago, S.A. in the
specimen form attached;
2. We dismiss without prejudice Aero-Chago's request for a Special
Authorization pursuant to Part 216 of the Board's Regulations;
3. Any interested persons objecting to the issuance of an order
making final the Board's tentative findings and conclusions and issuing the
attached specimen permit shall, no later than October 26, 1984, file with
10/ Our tentative findings are based upon the fact that Aero-Chago's
proposed operations will not result in increased fuel consumption in excess
of 10 million gallons per year.
- 7 -
the Board and serve on the persons named in paragraph 6, a statement of
objections specifying the part or parts of the tentative findings and
conclusions objected to, together with a summary of testimony, statistical
data, and concrete evidence to be relied upon in support of the
objections. An oral evidentiary hearing or discovery procedures may be
requested. The objector should state in detail why such a hearing or
discovery is considered necessary and what material issues of decisional
fact he/she would expect to establish through such hearing or discovery
which cannot be established in written pleadings. The objector should
consider whether discovery procedures alone would suffice to resolve
material issues of decisional fact; if so, the type of procedures should be
specified (see Part 302, Rules 19 and 20); if not, the reasons why not
should be explained. If objections are filed, answers may be filed, but no
later than November 5, 1984;
4. If timely and properly supported objections are filed, we will
give further consideration to the matters and issues raised by the
objections before we take further action: Provided, that we may proceed to
enter an order in accordance with our tentative findings and conclusions
set forth in this order if we determine that there are no factual issues
present that warrant the holding of an oral evidentiary hearing or the
institution of discovery procedures; 11/
5. In the event that no objections are filed, all further procedural
steps shall be deemed waived, and the Secretary shall enter an order which
(1) shall make final our tentative findings and conclusions set forth in
this order, and (2) subject to the disapproval of the President pursuant to
section 801 (a) of the Act, shall issue a foreign air carrier permit to the
applicant in the specimen form attached; and
6. We shall serve a copy of this order upon Aero-Chago, S.A., the
Ambassador of the Dominican Republic in Washington, D.C., the U.S.
Departments of State and Transportation, and the Federal Aviation
Administration (AF0-220).
We shall publish a summary of this order in the Federal Register.
By the Civil Aeronautics Board:
PHYLLIS T. KAYLOR
Secretary
(SEAL)
All Members concurred.
11/ Since provision is made for the filing of objections to this order,
petitions for reconsideration will not be entertained.
Attachment A
SUMMARY OF APPLICATION
Docket 41056
Homeland Country: Dominican Republic
Designated By Its Government: No, since nonscheduled authority is not
provided for in the United States-Dominican Republic Air Transport
Agreement.
our I Reagan Presidential Record
Reciprocity And Comity As Basis For Authority Sought: Yes--adequate comity
and reciprocity exist.
Holds Government License For Authority Sought: Exhibit 9, Docket 41056.
Operating History: Charter service between the Dominican Republic and
other Caribbean and Central American countries since 1982. Began non-
scheduled foreign air transportation of property and mail between the
U.S. and the Dominican Republic in 1983, pursuant to exemption authority
granted in Order 83-1-79.
Aircraft Owned (0) And Leased (L): 2 L-1049 Constellation (L);
in the process of acquiring a third L-1049
Aircraft Maintenance Performed By: Aero-Chago
Financial Indicators (As Of):
June 30, 1982 June 30, 1983
(000)
(000)
Total Assets
$ 290
$ 440
Total Liabilities
233
333
Stockholders' Equity
57
108
Operating Profit (Loss)--12 mos. ended
24
51
Majority Ownership By Nationals Of: Dominican Republic
Effective Control By Nationals Of: Dominican Republic
Insurance Coverage: Meets requirements of 14 CFR 205
Insurance Refused Or Involuntarily Canceled During Last 3 Years: No
Refused Debt Financing Last 3 Years: No
Defaulted On Transportation Commitments Last 3 Years: No
Failed To Meet Current Financial Obligations Last 3 Years: No
Safety Or Tariff Violations During Last 5 Years: No
Subscribes To Standard Permit Conditions Regarding Insurance And Annex 6
Of Chicago Convention And C.A.B. Agreement 18900: Yes
Near-term Annual Fuel Consumption Exceeds 10 Million Gallons: No
SPECIMEN PERMIT
UNITED STATES OF AMERICA
CIVIL AERONAUTICS BOARD
WASHINGTON, D. C.
PERMIT TO FOREIGN AIR CARRIER
AERO-CHAGO, S. A.
is authorized, subject to the provisions set forth, the provisions of the
Federal Aviation Act of 1958, as amended, and the Board's orders, rules
and regulations, to engage in foreign air transportation of property and
mail, as follows:
A. Between a point or points in the Dominican Republic,
and the terminal point Miami, Florida.
B. Between a point or points in the Dominican Republic,
the intermediate points Borinquen, Ponce, and San
Juan, Puerto Rico; and St. Croix, Virgin Islands;
and the terminal point St. Thomas, Virgin Islands.
The holder shall be authorized to engage in charter trips of property
only in foreign air transportation, subject to the terms, conditions and
limitations prescribed by the Board's Regulations governing charters.
This permit and the exercise of the privileges granted in it shall be
subject to the terms, conditions and limitations attached, and to the
following:
(1) The authority granted above shall be subject to the
condition that the holder not engage in scheduled inter-
national air service.
(2) This permit shall be subject to all applicable provi-
sions of any treaty, convention, or agreement affecting
international air transportation now in effect, or that
may become effective during the period the permit remains
in effect, to which the United States and the Dominican
Republic shall be parties.
(3) In the event any practice develops which the Board
regards as inimical to fair competition, the holder and the
Board will consult and will use their best efforts to agree
upon modifications satisfactory to the Board and the holder.
- 2 -
This permit shall be effective on
9 and shall
terminate five years thereafter, except that it shall be subject to
termination at any time if the authority to conduct flight operations to
and from the Dominican Republic granted by the Government of the Dominican
Republic to any carrier authorized by the United States is cancelled or
restricted.
The Civil Aeronautics Board, through its Secretary, has executed this
permit and affixed its seal on
Secretary
(SEAL)
FOR OFFICIAL USE ONLY
UNITED STATES OF AMERICA
CIVIL AERONAUTICS BOARD
WASHINGTON, D. C.
Adopted by the Civil Aeronautics Board
at its office in Washington, D.C.
on the 3rd day of December, 1984
Application of
:
:
TRADEWINDS AIRWAYS LIMITED
:
Docket 41484
..
for amendment of its foreign air carrier :
permit pursuant to section 402 of the
:
Federal Aviation Act of 1958, as amended :
ORDER
By Order 84-11-38, adopted November 9, 1984, we directed all
interested persons to show cause why we should not, subject to review by the
President, reissue and amend the foreign air carrier permit to Tradewinds
Airways Limited, to authorize the carrier to (1) engage in the scheduled
foreign air transportation of property and mail between London, England; the
intermediate point Toronto, Canada; and the U.S. coterminal points Boston,
Chicago, Detroit, Los Angeles, and New York (without local traffic rights
between Toronto and Los Angeles); (2) conduct scheduled services between London
and the U.S. coterminal points Atlanta, Boston, Chicago, Detroit, Los Angeles,
Miami, New York, and San Francisco; and (3) conduct various charter flights of
property and mail to and from the United States.
The order directed persons objecting to our tentative findings and
conclusions set forth in that order, or to the issuance of the proposed foreign
air carrier permit, to file their objections within 14 days. In addition, the
order provided that in the event no objections were filed, all further
procedural steps would be deemed waived, and the Secretary would enter an order
which (1) would make final our tentative findings and conclusions, and, (2)
subject to the disapproval of the President pursuant to section 801(a) of the
Act, would issue a foreign air carrier permit to Tradewinds Airways in the
specimen form attached.
No objections to Order 84-11-38 have been filed.
ACCORDINGLY,
1. We make final our tentative findings and conclusions set forth in
Order 84-11-38;
sm/6/05
- 2 -
2. We are issuing a foreign air carrier permit in the form attached to
Tradewinds Airways Limited to engage in scheduled foreign air transportation of
property and mail between London, England, and certain points in the United
States, some of the services via the intermediate point Toronto, Canada; and to
conduct various charter flights of property and mail to and from the United
States;
3. The Secretary of the Board shall sign the permit on our behalf and
hall affix the seal of the Board; and
4. Unless disapproved by the President of the United States under section
801(a) of the Act, this order and the permit attached shall become effective on
the 61st day after its submission to the President, 1/ or upon the date of
receipt of advice from the President that he does not intend to disapprove the
Board's order under that section, whichever is earlier.
By the Civil Aeronautics Board:
PHYLLIS T. KAYLOR
Secretary
(SEAL)
1/ This order was submitted to the President on DEC 10 0 1984
The 61st day is 1985
SPECIMEN PERMIT
UNITED STATES OF AMERICA
CIVIL AERONAUTICS BOARD
WASHINGTON, D. C.
PERMIT TO FOREIGN AIR CARRIER
(as amended and reissued)
TRADEWINDS AIRWAYS LIMITED
is authorized, subject to the provisions of the Federal Aviation Act of 1958,
as amended, and the orders, rules, and regulations of the Board or Department of
Transportation (U.S.D.O.T.), to engage in foreign air transportation:
A. 1. Between London, England; the intermediate point Toronto, Canada;
and the coterminal points Boston, Massachusetts, New York, New York, Chicago,
Illinois, Detroit, Michigan and Los Angeles, California (without rights to
carry local traffic between Toronto and Los Angeles).
A. 2. Between London, England, and the coterminal points Atlanta,
Georgia, Boston, Massachusetts, New York, New York, Chicago, Illinois, Detroit,
Michigan, Miami, Florida, Los Angeles, California, and San Francisco,
California.
B. Between any point or points in the United Kingdom 1/ and any point or
points in the United States, either directly or via intermediate or beyond
points in other countries, with or without stopovers.
C. Between any point or points in the United States and any point or
points not in the United Kingdom or the United States.
This permit and the exercise of the privileges granted in it shall be
subject to the following conditions:
1. The exercise of authority granted by paragraphs A.1 and A.2 shall be
limited to scheduled transportation of property and mail.
2. The exercise of authority granted by paragraphs B and C shall be
limited to charter foreign air transportation of property and mail.
1/ For the purpose of this permit, "United Kingdom" shall mean the United
Kingdom of Great Britain and Northern Ireland, but not any territory outside
the British Isles which may be under the sovereignty, protection, jurisdiction,
or trusteeship of the Government of the United Kingdom.
- 2 -
3. Flights authorized by paragraph C must be individually approved by the
U.S.D.O.T. unless this requirement is waived by U.S.D.O.T. order. Application
shall be made as provided in the order issuing this permit or as required by
subsequent U.S.D.O.T. order or regulation.
4. The authority of the holder to perform charters originating in the
United Kingdom shall be subject to the terms, conditions, and limitations
contained in the rules, regulations, or licenses issued by the Civil Aviation
wthority of the United Kingdom authorizing the performance of such charters,
ncluding waivers or variations. The authority of the holder to perform
charters (1) originating in the United States or, (2) between any point or
points in the United States and any point or points not in the United Kingdom
or the United States, 1s subject 30 applicable U.S.D.D.T. regulations, except
where waivers of these regulations have been granted by the U.S.D.O.T.
5. The holder shall not allow charter traffic to stop over at one point
in the United States before transporting 1t to, or after transporting it from,
any other point in the United States.
6. Charter transportation, provided pursuant to paragraph B of this
permit, which originates in the United States and stops over at any point or
points outside the United Kingdom, shall also stop over in the United Kingdom
for at least two consecutive nights. Unless the U.S.D.O.T. specifically
authorizes, in advance, shortening or eliminating the United Kingdom stopover,
all traffic originating in the United States and stopping over in the United
Kingdom for less than two consecutive nights shall be carried pursuant to
paragraph C of this permit.
7. The U.S.D.O.T., by order or regulation and with or without hearing,
may require advance approval of individual charter trips conducted under the
authority granted by paragraph B of the permit, if it finds (i) either (a) that
the requirement of such prior approval is authorized under the terms of a
treaty, agreement, or understanding, or amendments or protocols to such
instrument, in effect between the United States and the United Kingdom; or (b)
that the Government of the United Kingdom has denied or failed to prevent the
denial of, in whole or in part, the fair and equal opportunity to exercise the
operating rights provided for in an air transport agreement between the United
Kingdom and the United States of any U.S. air carrier designated thereunder
with respect to flight operations to, from, through, or over the United
Kingdom; and (ii) that such action is required in the public interest.
8. The holder shall conform to the airworthiness and airman competency
requirements of the Government of the United Kingdom of Great Britain and
Northern Ireland for British international air service.
9. The holder shall not provide foreign air transportation under this
permit unless it holds a currently effective authorization from the Government
of the United Kingdom for such operations.
- 3 -
10. The holder shall not operate any aircraft under the authority granted
by this permit unless the holder complies with operational safety requirements
at least equivalent to Annex 6 of the Chicago Convention.
11., By accepting this permit the holder waives any right it may possess to
assert, any defense of sovereign immunity from suit in any action or proceeding
instituted egainst it in any court or other tribunal in the United States (or
its territories or possessions) based upon any claim arising out of its
aperations under this permit.
12. The holder shall comply with the requirements of 14 CFR 203,
concerning waiver of Marsaw Convention liability limits and defenses.
13. The holder shall comply with the requirements for minimum Insurance
coverage contained in 14 CFR 205.
14. This permit shall be subject to all applicable provisions of any
treaty, convention, or agreement affecting international air transportation now
in effect, or that may become effective to which the United States and the
United Kingdom of Great Britain and Northern Ireland shall be parties.
15. The exercise of the privileges granted by this permit will be subject
to such other reasonable terms, conditions, and limitations required by the
public interest as may be prescribed by the U.S.D.O.T.
This permit shall be effective on
Unless otherwise
terminated at an earlier date pursuant to the terms of any applicable treaty,
convention, or agreement, this permit shall terminate (1) upon the effective
date of any treaty, convention, or agreement or amendment, which shall have the
effect of eliminating the bilaterally authorized service authorized by this
permit from the service which may be operated by airlines designated by the
Government of the United Kingdom of Great Britain and Northern Ireland (or in
the event of the elimination of any part of the authorized service, the
authority granted shall terminate to the extent of such elimination); or (2)
upon the effective date of any permit granted by the U.S.D.O.T. to any other
carrier designated by the Government of the United Kingdom in lieu of the
holder; or (3) upon the termination or expiration of the Air Services Agreement
or any part thereof between the Government of the United States of America and
the Government of the United Kingdom of Great Britain and Northern Ireland, as
amended (or in the event of the termination or expiration of any part of the
Air Services Agreement the authority granted by this permit shall cease to the
extent of such termination or expiration). However, clause (3) of this
paragraph shall not apply if the operation of the authorized foreign air
transportation becomes the subject of any treaty, convention, or agreement to
which the United States of America and the United Kingdom of Great Britain and
Northern Ireland are or shall become parties.
The Civil Aeronautics Board, through its Secretary, has executed this
permit and affixed its seal on
Secretary
(SEAL)
Order 84-11-38
UNITED STATES OF AMERICA
CIVIL AERONAUTICS BOARD
WASHINGTON, D. C.
Adopted by the Civil Aeronautics Board
at its office in Washington, D. C.
on the 9th day of November, 1984
Application of
:
:
TRADEWINDS AIRWAYS LIMITED
:
Docket 41484
:
for amendment of its foreign air carrier
:
permit pursuant to section 402 of the
:
Federal Aviation Act of 1958, as amended
:
STATEMENT OF TENTATIVE FINDINGS AND CONCLUSIONS
AND ORDER TO SHOW CAUSE
ERRATUM
The dates in ordering paragraph two should be changed so that any
interested person objecting to the issuance of the order should file no later
than November 30, 1984 and answers may be filed but no later than December 10,
1984.
Dated: November 16, 1984
Order 84-11-38
UNITED STATES OF AMERICA
CIVIL AERONAUTICS BOARD
WASHINGTON, D. C.
Adopted by the Civil Aeronautics Board
at its office in Washington, D. C.
on the 9th day of November, 1984
Application of
:
:
TRADEWINDS AIRWAYS LIMITED
:
Docket 41484
:
for amendment of its foreign air carrier
:
permit pursuant to section 402 of the
:
Federal Aviation Act of 1958, as amended
:
STATEMENT OF TENTATIVE FINDINGS AND CONCLUSIONS
AND ORDER TO SHOW CAUSE
Background
Tradewinds Airways Limited, a carrier of the United Kingdom, currently
holds a foreign air carrier permit issued by Order 80-4-119, effective
April 16, 1980. The permit authorizes the airline to engage in charter
foreign air transportation of property to and from the United States.
In March 1983 the Government of the United Kingdom designated
Tradewinds under Article 3 of Bermuda 2 to provide scheduled all-cargo
services on U.K. Routes 10, 11, and 12. 2/
1/ The permit has no fixed termination date. Tradewinds is designated to
provide charter flights between the United States and the United Kingdom
under the U.S.-U.K. Air Services Agreement (Bermuda 2). Under permit
provisions, it may operate certain charter flights between the United
States and third countries, subject to prior approval.
2/ The U.K. Government made the designation by Diplomatic Note No. 39,
dated March 23, 1983. U.K. Routes 10, 11, and 12 are in Section 4 of
Annex 1 to Bermuda 2 and are delineated in Attachment A of this order.
After the designation was made, we granted Tradewinds authority by
exemption (see Order 83-8-14) to provide scheduled cargo services between
London, United Kingdom, and the United States points New York, Boston, and
Chicago, via Toronto, Canada. The airline relies on the automatic
extension provisions of the Administrative Procedure Act, 5 U.S.C. 558(c),
as implemented by 14 CFR 377, to keep the exemption authority in effect
(see Tradewinds' renewal application filed April 30, 1984, in Docket
42169.).
- 2 -
Application
By application filed May 12, 1983, 3/ as supplemented May 12, 1983,
June 9, 1983, June 23, 1983, March 15, 1984, and June 19, 1984, Tradewinds
requests that we amend its foreign air carrier permit to authorize it to
engage 10 scheduled all-cargo foreign air transportation "pursuant to its
(March 1983) designation."
In support of its application, Tradewinds asserts (Attachment B is a
summary of the application) that it is a carrier of the United Kingdom,
substantially owned and effectively controlled by nationals of the United
Kingdom; 5/ that It is financially and operationally qualified to conduct
the scheduled all-cargo services it proposes; and that it is licensed and
designated by its government to do so. 6/
3/ A notice of the application appeared in the Federal Register,
48 FR 22768, May 20, 1983.
4/ Tradewinds wants us to add three scheduled routes to its permit for
the carriage of property and mail, as follows: (1) Between any point or
points in the United Kingdom, either directly or via an intermediate point
or points in Canada, and any point or points in the United States, and
beyond to Panama (without rights to carry local traffic between Los Angeles
and Canada and Los Angeles and Panama); (2) Between any point or points in
the United Kingdom and any point or points in the United States, and beyond
to Venezuela, Colombia, Manaus, and/or Peru (without rights to carry local
traffic between Houston and Peru); and (3) Between any point or points in
the United Kingdom and any point or points in the United States, and beyond
to Mexico City. The airline also requests that we amend its charter
authority to include the carriage of mail. (See Specimen Permit Exhibit
TRW-15 in this docket.)
5/ Tradewinds states that all its stock is owned, through intermediate
United Kingdom holding companies, by Lonrho PLC, which is a public limited
company organized and existing under the laws of the United Kingdom (see
Revised Exhibit TRW-2, filed June 23, 1983). Lonrho was incorporated in
England in 1909, is comprised of over 800 companies engaged in various
activities, and has about 64,000 shareholders (see the supplementary
materials concerning Lonrho filed May 12, 1983, in this docket). The
applicant further states that its officers, directors, and key management
personnel are all British citizens (see Exhibit TRW-1).
6/ The applicant submitted copies of three licenses from the U.K.'s Civil
Aviation Authority which authorize it to transport cargo and mail on
scheduled flights to and from points in various countries. License No.
1B/24555 authorizes Tradewinds to serve nine specific North American points
to and from London (Gatwick) as follows: Toronto and/or Atlanta and/or
Boston and/or Chicago and/or Detroit and/or Miami and/or New York and/or
Los Angeles and/or San Francisco. None of the three scheduled licenses
list any South American point or any other points in North America. See
Exhibit TRW-7.
- 3 -
Answers 7/
On June 14, 1983, The Flying Tiger Line Inc. and Transamerica
Airlines, Inc., both filed answers to the application, which indicate their
opposition to large portions of Tradewinds' request for scheduled
authority. 8/
Flying Tigers and Transamerica argue that we should only grant
Tradewinds authority for which it is both designated and licensed. The
U.S. carriers assert that because Tradewinds was not designated under
Annex 5 (but only under Article 3) of Bermuda 2, the carrier's designation
for Third, Fourth, and Fifth Freedom scheduled services covers only the
specified U.K., U.S., Intermediate, and beyond points listed in Section 4
of Annex 1, and does not entitle Tradewinds to the "Liberalized Cargo Air
Services" provisions of Annex 5, Part III (See Attachment A). 9/
Reply
On June 24, 1983, Tradewinds filed a reply to the U.S. carriers'
answers, together with a motion to file an otherwise unauthorized
document. 10/
In its reply, Tradewinds again asserts that its designation under
Article 3 entitles it to the broad route rights it requests, and, in
addition, argues that its lack of homeland license for portions of the
scheduled authority it requests should not preclude its having the
7/ By Notice in this docket dated June 10, 1983, the Secretary of the
Board extended the due date for filing answers to June 14, 1983.
8/ Transamerica also asserts that the U.K. Government has a protectionist
policy concerning Fifth Freedom cargo charters and requests that we,
therefore, remove such charter authority from U.K. carrier permits, which,
in effect, would require those airlines to file applications for exemption
from section 402 of the Act for our consideration prior to conducting such
flights.
9/ Flying Tigers and Transamerica thus argue that, at most, we should
only add scheduled authority to Tradewinds' permit for the carriage of
property and mail, as follows: (1) Between London, (Gatwick), either
directly or via the intermediate point Toronto, Canada, and Boston/Chicago/
Detroit/Los Angeles/New York (without rights to carry local traffic between
Toronto and Los Angeles); (2) Between London, (Gatwick), and Atlanta; and
(3) Between London, (Gatwick), and Miami. Flying Tigers, in addition,
avows that comity and reciprocity with the United Kingdom are inadequate in
the area of scheduled cargo services to warrant grant of the requested
authority which is not provided for by Bermuda 2.
10/ We will grant the motion.
- 4 -
authority in its amended permit, 11/ and that the U.S. carriers did not
adequately support their allegations of cargo reciprocity problems with the
United Kingdom.
Decision
After thoroughly reviewing all facts and pleadings in the record, we
tentatively have decided to amend Tradewinds' permit to add authority to
conduct scheduled services between London and eight U.S. coterminal points
(Atlanta, Boston, Chicago, Detroit, Los Angeles, Miami, New York, and San
Francisco) and to provide certain U.S. services (to and/or from Boston,
Chicago, Detroit, Los Angeles, and New York) via Toronto. Me also
tentatively have decided to reissue Tradewinds' authority to conduct
charter flights to and from the United States, 12/ and to amend its charter
authority to authorize the carriage of mail.
Based on Tradewinds' submissions, we tentatively find and conclude
that the applicant is substantially owned and effectively controlled by
nationals of the United Kingdom, and that it 1s fit, willing, and able to
perform properly the scheduled and charter foreign air transportation
described in the attached permit and to conform to the provisions of the
Act, and to our rules, regulations, and requirements. In this regard, no
party has challenged Tradewinds' ownership and control by homeland
11/ The applicant asserts that requiring a foreign airline to apply for
additional permit authority from the Board each time it seeks to start
service at a new point or receive new authority from its homeland
government is anticompetitive and inefficient. Tradewinds cites Belize
Airways, Permit Amendment, 79 CAB 657 (1978), in which the Board granted
Belize Airways scheduled authority to serve New Orleans, even though the
carrier did not hold authority from its government to serve that point.
Tradewinds, moreover, argues that it could not serve points without
homeland license under the requested permit anyway, because the amended
permit would include the standard condition which prohibits the carrier
from providing the foreign air transportation authorized thereunder unless
it holds "a currently effective authorization from its Government" for such
operations.
12/ We are not convinced by Transamerica's pleading that we should remove
the underlying Fifth Freedom charter authority from the permit of
Tradewinds and other U.K. carriers. Those airlines currently must file for
prior approval under Part 212 of our Economic Regulations to operate
various Fifth Freedom charter flights, and we, therefore, have adequate
means to deal with Fifth Freedom charter problems which may arise. We
tentatively find and conclude that adequate comity and reciprocity underlie
Tradewinds' request to conduct those charter flights to and from the United
States which are not provided for under Bermuda 2.
- 5 #
nationals, its financial and operational fitness, 13/ nor the adequacy of
the carrier's compliance disposition. Moreover, Tradewinds is both
designated and licensed by its homeland government to provide the scheduled
services which we tentatively find and conclude should be authorized by
amendment and reissuance of its foreign air carrier permit.
We are not, however, inclined to grant Tradewinds' broad request to
conduct scheduled services between its homeland and any point or points in
the United States, or to conduct such services via any intermediate point
or points in Canada and beyond to various points and countries south of the
United States.
Our long standing policy is not to grant scheduled permit authority
which exceeds the scope of the carrier's homeland license. 14/ The scope
of Tradewinds' homeland scheduled license is clear-the carrier holds
authority only to conduct scheduled North and South American services to
Toronto, Atlanta, Boston, Chicago, Detroit, Los Angeles, Miami, New York,
and San Francisco. 15/ Nor do we believe that it is appropriate to award
the authority on the basis of reciprocity, as much of it is provided for by
the Agreement.
13/ By letter dated June 20, 1983, the Federal Aviation Administration's
Acting Manager, Air Transportation Division, Office of Flight Operations,
advised us that Tradewinds conducts its U.S. operations in accordance with
Part 129 of the Federal Aviation Regulations, and that he sees no reason
why we should act unfavorably on the application.
Favorable action in this matter would not be an endorsement for
Tradewinds' obtaining relief from the Federal Aviation Administration's
noise-abatement rules under FAR Parts 36 and 91.
14/ See, e.g., Order 76-4-20; Internacional de Aviacion, Permit Amendment,
70 CAB 417 (1976) at 420-421.
15/ We are not authorizing the applicant to conduct its services to
Atlanta, Miami, and San Francisco via Toronto, because such authority
exceeds the carrier's designation for U.K. Route 10. Tradewinds'
designation for services on U.K. Routes 10, 11, and 12, to be conducted via
intermediate points or to beyond points, covers only the specific U.S.
points listed in Column C for each route (see Attachment A). We do not
accept Tradewinds' position that its designation would entitle it to
conduct its requested Canadian and beyond services to and/or from U.S.
points which are not specified in Column C of the routes. Tradewinds'
designation, however, covers Third and Fourth Freedom services between any
point or points in the United States and any point or points in the United
Kingdom. The U.S. carriers' position that Tradewinds would have to be
designated under Annex 5 to be entitled to the liberal Third and Fourth
Freedom provisions of Part III thereunder is incorrect.
- 6 -
We tentatively find and conclude that to grant Tradewinds scheduled
authority in this case which exceeds the scope of either its designation
and/or license would not be in the public interest. 16/
In view of the foregoing and all facts of record, we tentatively find
and conclude that:
1. The applicant is qualified and has been designated by its
government to perform the air services described in the attached foreign
air carrier permit;
2. The applicant is fit, willing and able properly to perform the
foreign air transportation described 1n the attached permit and to conform
to the provisions of the Act, and our rules, regulations and requirements;
3. The public interest requires that the exercise of the privileges
granted by the permit shall be subject to the terms, conditions, and
limitations contained in the attached permit, and to such other reasonable
terms, conditions, and limitations required by the public interest as we
may prescribe;
4. The applicant is substantially owned and effectively controlled by
nationals of its homeland country;
5. Issuance of this foreign air carrier permit will not constitute a
"major regulatory action" under the Energy Policy and Conservation Act of
1975, as defined in subsection 313.4(a) (1) of our Regulations; 17/
16/ In the Belize Airways case, cited by the applicant, the Board only
authorized the airline to serve a single point for which it was not
licensed. Here, Tradewinds is seeking authority to serve hundreds of
points for which it is not licensed. Moreover, the standard permit
condition which prohibits the carrier from providing the foreign air
transportation unless it holds a currently effective authorization from its
homeland, precludes the airline from continuing permit operations under
circumstances in which it loses license authority from its government which
it held at the time it received the permit authority. We do not use the
condition to enable operations which exceed the scope of the airline's
homeland license.
17/ Our finding is based upon the fact that reissuance and amendment of
the applicant's permit would not result in a near-term annual increase in
fuel consumption in excess of 10 million gallons.
- 7 -
6. The public interest does not require an oral evidentiary hearing
on the application; and
7. Except to the extent granted, the application in Docket 41484
should be denied.
ACCORDINGLY,
1. We direct all interested persons to show cause why we should not
(1) make final our tentative findings and conclusions, and (2) subject to
the disapproval of the President pursuant to section 801(a) of the Act,
reissue and amend the foreign air carrier permit issued to Tradewinds
Airways Limited by Order 80-4-119, to authorize, among other things,
scheduled and charter air service of property and mail between the United
States and the United Kingdom, in the specimen form attached;
2. Any interested person objecting to the issuance of an order making
final our tentative findings and conclusions and reissuing the attached
specimen permit shall, no later than December 3, 1984 9 file with the
Board and serve on the persons named in ordering paragraph 6, a statement
of objections specifying the part or parts of the tentative findings and
conclusions objected to, together with a summary of testimony, statistical
data, and concrete evidence to be relied upon in support of the
objections. An oral evidentiary hearing or discovery procedures may be
requested. The objector should state in detail why such a hearing or
discovery is considered necessary and what material issues of decisional
fact he or she would expect to establish through such hearing or discovery
which cannot be established in written pleadings. The objector should
consider whether discovery procedures alone would suffice to resolve
material issues of decisional fact; if so, the type of procedure should be
specified (see Part 302, Rules 19 and 20); if not, the reasons why not
should be explained. If objections are filed, answers may be filed, but no
later than December 13, 1984;
3. If timely and properly supported objections are filed, we will
give further consideration to the matters and issues raised by the
objections before we take further action: Provided, that we may proceed to
enter an order in accordance with our tentative findings and conclusions
set forth in this order if we determine that there are no factual issues
presented that warrant the holding of an oral evidentiary hearing; 18/
4. In the event no objections are filed, all further procedural steps
will be deemed to have been waived, and the Secretary shall enter an order
which (1) shall make final our tentative findings and conclusions set forth
in this order, and (2) subject to the disapproval of the President pursuant
to section 801 (a) of the Act, shall reissue a foreign air carrier permit to
the applicant in the specimen form attached;
18/ Since we are providing for the filing of objections to this order, we
will not entertain petitions for reconsideration.
- 8 -
5. We grant the applicant's motion filed June 24, 1983, for leave to
file an otherwise unauthorized document in this docket; and
6. We shall serve this order on Tradewinds Airways Limited, the
Ambassador of Great Britain and Northern Ireland in Washington, D.C., the
Federal Aviation Administration (AF0-220), and the Departments of State and
Transportation.
We shall publish a summary of this order in the Federal Register.
By the Civil Aeronautics Board:
PHYLLIS T. KAYLOR
Secretary
(SEAL)
All Members concurred.
Attachment A
UNITED KINGDOM ROUTES 10, 11, AND 12 IN SECTION 4 OF ANNEX 1 TO BERMUDA 2 */
Column (A)
Column (B)
Column (c)
Column (D)
NO.K. Gateway Pts.
Intermediate Pts.
Points in U.S.
Points Beyond
it. 10:
London
Canada 1/
Boston
Panama 1/
Manchester
Chicago
Prestwick/Glasgow
Detroit
Los Angeles 1/
New York
Washington/Balt.
1/ Without rights to carry local traffic between Los Angeles and Canada and
between Los Angeles and Panama.
Rt. 11:
London
Atlanta
Venezuela
Manchester
Houston 2/
Colombia
Prestwick/Glasgow
Manaus
Peru 2/
2/ Without rights to carry local traffic between Houston and Peru.
Rt. 12:
London
Miami
Mexico City
Manchester
Prestwick/Glasgow
*/ Beginning January 1, 1983, all airlines designated by either government for
scheduled air services may operate such services between any point or points in
the United States and any point or points in the United Kingdom. See
sub-paragraph (3) (b) of Part III, Liberalized Cargo Air Services, of Annex 5.
Attachment B
SUMMARY OF APPLICATION
Docket 41484
Homeland Country: United Kingdom
Current Permit Issued By: Order 80-4-119, dated April 16, 1980
Authority Covered By Bilateral Agreement: See p. 5, n. 15 of this order.
our I Reagan Presidential Record
resignated By Its Government: Yes, for various charter flights and for
scheduled all-cargo services on U.K. Routes 10, 11, and 12 in Section 4
of Annex 1.
Government Licenses: See Exhibit TRW-7.
Operating History: Tradewinds states that it was founded in 1968 and commenced
worldwide cargo charter operations that year, using CL-44 equipment. In
1980 Tradewinds began using B-707 equipment. In 1983 the U.K. Government
awarded the carrier scheduled authority to 21 points 1n various world areas,
authority which the airline is implementing. (See Exhibit TRW-18.)
Aircraft Owned (0) And Leased (L): (0) 1 B-707, (L) 1 B-707
Aircraft Maintenance Performed By: Dan Air Services Ltd., at Lasham Air Field,
Hampshire, U.K.
Financial Statements: See Exhibit TRW-17, as supplemented by Tradewinds
submissions filed in the correspondence section of Docket 41484 by letters
dated May 12, 1983, June 3, 1983, and June 19, 1984.
Majority Ownership By Nationals Of: United Kingdom
Effective Control By Nationals Of: United Kingdom
Insurance Coverage: Yes, meets the requirements of 14 CFR 205.
Insurance Refused Or Involuntarily Canceled During Last 3 Years: No
Refused Debt Financing Last 3 Years: No
Defaulted On Transportation Commitments Last 3 Years: No
Failed To Meet Current Financial Obligations Last 3 Years: No
Safety Violations During Last 5 Years: No
Tariff Violations During Last 5 Years: No
Subscribes To Standard Permit Conditions Regarding Insurance And Annex 6 Of
Chicago Convention And C.A.B. Agreement 18900: Yes
Near-term Annual Fuel Consumption Exceeds 10 Million Gallons: No
SPECIMEN PERMIT
UNITED STATES OF AMERICA
CIVIL AERONAUTICS BOARD
WASHINGTON, D. C.
PERMIT TO FOREIGN AIR CARRIER
(as amended and reissued)
TRADEWINDS AIRWAYS LIMITED
is authorized, subject to the provisions of the Federal Aviation Act of 1958,
as amended, and the orders, rules, and regulations of the Board or Department of
Transportation (U.S.D.O.T.), to engage in foreign air transportation:
A. 1. Between London, England; the intermediate point Toronto, Canada;
and the coterminal points Boston, Massachusetts, New York, New York, Chicago,
Illinois, Detroit, Michigan and Los Angeles, California (without rights to
carry local traffic between Toronto and Los Angeles).
A. 2. Between London, England, and the coterminal points Atlanta,
Georgia, Boston, Massachusetts, New York, New York, Chicago, Illinois, Detroit,
Michigan, Miami, Florida, Los Angeles, California, and San Francisco,
California.
B. Between any point or points in the United Kingdom 1/ and any point or
points in the United States, either directly or via intermediate or beyond
points in other countries, with or without stopovers.
C. Between any point or points in the United States and any point or
points not in the United Kingdom or the United States.
This permit and the exercise of the privileges granted in it shall be
subject to the following conditions:
1. The exercise of authority granted by paragraphs A.1 and A.2 shall be
limited to scheduled transportation of property and mail.
2. The exercise of authority granted by paragraphs B and C shall be
limited to charter foreign air transportation of property and mail.
1/ For the purpose of this permit, "United Kingdom" shall mean the United
Kingdom of Great Britain and Northern Ireland, but not any territory outside
the British Isles which may be under the sovereignty, protection, jurisdiction,
or trusteeship of the Government of the United Kingdom.
- 2 -
3. Flights authorized by paragraph C must be individually approved by the
U.S.D.O.T. unless this requirement is waived by U.S.D.O.T. order. Application
shall be made as provided in the order issuing this permit or as required by
subsequent U.S.D.O.T. order or regulation.
4. The authority of the holder to perform charters originating in the
United Kingdom shall be subject to the terms, conditions, and limitations
contained in the rules, regulations, or licenses issued by the Civil Aviation
Authority of the United Kingdom authorizing the performance of such charters,
including waivers or variations. The authority of the holder to perform
charters (1) originating in the United States or, (2) between any point or
points in the United States and any point or points not In the United Kingdom
or the United States, is subject to applicable U.S.D.O.T. regulations, except
where waivers of these regulations have been granted by the U.S.D.O.T.
5. The holder shall not allow charter traffic to stop over at one point
in the United States before transporting 1t to, or after transporting it from,
any other point in the United States.
6. Charter transportation, provided pursuant to paragraph B of this
permit, which originates in the United States and stops over at any point or
points outside the United Kingdom, shall also stop over in the United Kingdom
for at least two consecutive nights. Unless the U.S.D.O.T. specifically
authorizes, in advance, shortening or eliminating the United Kingdom stopover,
all traffic originating in the United States and stopping over in the United
Kingdom for less than two consecutive nights shall be carried pursuant to
paragraph C of this permit.
7. The U.S.D.O.T., by order or regulation and with or without hearing,
may require advance approval of individual charter trips conducted under the
authority granted by paragraph B of the permit, if it finds (i) either (a) that
the requirement of such prior approval is authorized under the terms of a
treaty, agreement, or understanding, or amendments or protocols to such
instrument, in effect between the United States and the United Kingdom; or (b)
that the Government of the United Kingdom has denied or failed to prevent the
denial of, in whole or in part, the fair and equal opportunity to exercise the
operating rights provided for in an air transport agreement between the United
Kingdom and the United States of any U.S. air carrier designated thereunder
with respect to flight operations to, from, through, or over the United
Kingdom; and (ii) that such action is required in the public interest.
8. The holder shall conform to the airworthiness and airman competency
requirements of the Government of the United Kingdom of Great Britain and
Northern Ireland for British international air service.
9. The holder shall not provide foreign air transportation under this
permit unless it holds a currently effective authorization from the Government
of the United Kingdom for such operations.
- 3 -
10. The holder shall not operate any aircraft under the authority granted
by this permit unless the holder complies with operational safety requirements
at least equivalent to Annex 6 of the Chicago Convention.
11. By accepting this permit the holder waives any right it may possess to
assert. any defense of sovereign immunity from suit in any action or proceeding
instituted against it in any court or other tribunal in the United States (or
its territories or possessions) based upon any claim arising out of its
operations under this permit.
12. The holder shall comply with the requirements of 14 CFR 203,
concerning waiver of Warsaw Convention liability limits and defenses.
13. The holder shall comply with the requirements for minimum insurance
coverage contained in 14 CFR 205.
14. This permit shall be subject to all applicable provisions of any
treaty, convention, or agreement affecting international air transportation now
in effect, or that may become effective to which the United States and the
United Kingdom of Great Britain and Northern Ireland shall be parties.
15. The exercise of the privileges granted by this permit will be subject
to such other reasonable terms, conditions, and limitations required by the
public interest as may be prescribed by the U.S.D.O.T.
This permit shall be effective on
Unless otherwise
terminated at an earlier date pursuant to the terms of any applicable treaty,
convention, or agreement, this permit shall terminate (1) upon the effective
date of any treaty, convention, or agreement or amendment, which shall have the
effect of eliminating the bilaterally authorized service authorized by this
permit from the service which may be operated by airlines designated by the
Government of the United Kingdom of Great Britain and Northern Ireland (or in
the event of the elimination of any part of the authorized service, the
authority granted shall terminate to the extent of such elimination); or (2)
upon the effective date of any permit granted by the U.S.D.O.T. to any other
carrier designated by the Government of the United Kingdom in lieu of the
holder; or (3) upon the termination or expiration of the Air Services Agreement
or any part thereof between the Government of the United States of America and
the Government of the United Kingdom of Great Britain and Northern Ireland, as
amended (or in the event of the termination or expiration of any part of the
Air Services Agreement the authority granted by this permit shall cease to the
extent of such termination or expiration). However, clause (3) of this
paragraph shall not apply if the operation of the authorized foreign air
transportation becomes the subject of any treaty, convention, or agreement to
which the United States of America and the United Kingdom of Great Britain and
Northern Ireland are or shall become parties.
The Civil Aeronautics Board, through its Secretary, has executed this
permit and affixed its seal on
Secretary
(SEAL)