World Airways, Inc. - Exemption - Houston-Luanda, Angola (OST-2009-0146)
OST-2009-0146 - Exemption - Houston-Luanda, Angola
World Airways, Inc.
5-Aug-2009
Re: Motion for Leave to File an Otherwise Unauthorized Document and Response of World Airways - Bookmarked
Enough evidence has now been presented to the Department to establish beyond contradiction what World has asserted all along: there is no practical difference between Sonair's plans for the Houston Express program and an unlawful wet lease from a foreign operator to a U.S. carrier. In both cases, the aircraft and at least one crew member come from an unauthorized source. All Sonair needs to implement its scheme is the Houston Express exemption and a willing U.S. carrier, which it seems to have found in Atlas Air.
The Department can head off this arrangement by granting World's application for scheduled service between Houston and Luanda. Once World is up and running, there will be no further need for the Houston Express exemption, which is susceptible to abuse. Terminating the current exemption will have no negative consequences for the market, as World's scheduled service will be able to accommodate all those who currently use the Houston Express service plus all those additional members of the traveling public who are not eligible to participate in the USAEA.
There is no need for further comment in this docket. The Department will have the opportunity to evaluate the merits of World's arguments in the context of its review of Atlas Air's forthcoming application for passenger service authority. Given Sonair's plans for the US-Angola market, laid bare by World in this proceeding, it would be advisable for the Department to give rigorous scrutiny to any Atlas proposal for passenger operations.
Counsel: Zuckert Scoutt, Malcolm Benge, 202-298-8660
7-Aug-2009
Re: Answer of the Houston Express Parties in Opposition to Response of World Airways - Bookmarked
World's Motion and Response is nothing more than an effort to attack and disparage the partners with whom it has enjoyed the considerable financial benefit of a lengthy contractual relationship to operate the Houston Express private charter flights.
The USAEA is comprised of members that are substantially involved in the development of petroleum resources in West Africa. These companies have played an important role in enhancing the cooperation between the United States and Angola and have fostered business partnerships that will certainly continue to improve the cooperation between the two countries. SonAir, as an individual member of the USAEA has been instrumental in fostering these relationships. SonAir and its parent, Sonangol E.P., owned by the government of Angola, have provided significant financial backing to ensure that the Houston Express serves the needs of the USAEA members. As a result, USAEA members have realized substantial and profitable commercial opportunities that provide significant benefits to the economy of the Houston area and the United States. Obviously, a DOT exemption proceeding is not the appropriate forum to attack the integrity of foreign state-owned enterprises that not only have been the reliable business partners of U.S. companies in the energy sector, but also reliable suppliers of the energy needs of the United States.
Counsel: Thompson Coburn, Warren Dean, 202-585-6900
Source: AirlineInfo, http://airlineinfo.com
This report includes original source company information.


