i . 

,. SQUIRE 

SANDERS 

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COUNSEL 

WORLDWIDE 

DEPARTMENT OF 

^^•ANSPORWiON 

0'<U OPERATIONS 

2010 W6 2U P 3: 25 

SQUIRE, SANDERS & DEMPSEY L.LP. 

Suite 500 

1201 Pennsylvania Avenue, N.W. 

Washington, D.C. 20004 

Office: +1,202.626.6600 

rax:+1.202.626.6780 

Direct: +1.202.626.66S1 

msinick@ssd.com 

August 9, 2010 

Paul Gretch, Esq. 

Director, Office of International Aviation 

U.S. DeparUTicnt of Transportation 

800 Independence Avenue, SW 

Washington, DC 20590 

Re: Surreply of Florida West International Airways, Inc. to Responses of Atlas Air, FedEx, 

Southern and UPS 

Dear Mr. Gretcii: 

Florida West International Airways, Inc. ("FWIA") did not file an answer to Atlas' initial request 

that the Department eliminate the scheduled v. charter carrier distinction in the U.S.-Brazil market. 

However, FWIA now feels compelled to express its position after reviewing the responses of Atlas, 

FedEx and UPS. 

First and foremost, FWIA agrees with the well-presented arguments put forth by Southern in its 

consolidated response. Beyond that, FWIA would underscore Southern's argument that the elimination of 

the long established scheduled v. charter carrier distinction would represent far too significant a policy 

change for the Department to consider in the context of Atlas' temporary waiver request. Indeed, with 

just one month of the new cargo charter year having elapsed, there is a paucity of data for the Department 

to make an informed decision about the extent and duration of any material change in the U.S.-Brazil 

cargo charter market. While it is indeed the case that the July 2010 U.S.-Brazil cargo market was stronger 

than in the prior year, the market sill presents financial and demand challenges which effectively limit the 

number of charters that may be operated. In particular, the market remains heavily uni-directional in the 

southbound direction which requires every charter carrier to seek sufficient northbound traffic in other 

countries in order to maintain a viable roundtrip operation. Nor has there been any indication whatsoever 

of any changes in this fundamental self-limiting market characteristic. FWIA, for example, which is 

shortly taking delivery of another B-767 freighter, is already having to address the challenges it will 

encounter because of the uni-directional nature of the U.S.-Brazil cargo market. 

Lastly, UPS' suggestion that each scheduled carrier be allowed access to ten monthly charters 

fi-om the charter pool is nothing more than a repackaged Atlas request. That figure would be greater than 

Southern's current annual allocation which amounts to eight charters per month. Therefore, although 

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Paul Gretch, Esq. August 9, 2010 

Page 2 

FWLA believes for the reasons expressed above and in Southern's response that no further relief is 

warranted, should the Department nonetheless decide to give serious consideration to Atlas' or UPS' de 

facto "double-dip" requests, the number of permitted monthly charters should be significantly less than 

Southern's allocation. 

Sincerely yours. 

3^,^-s-Uu Ow^ssto 

Marshall S. Sinic 

Mary Street 

Ester Rosenberg 

Brian Hedberg 

Bemice Gray 

All persons on attached service list 
X ^ 

Paul Gretch, Esq. 

August 9, 2010 

Page 3 

SQUIRE, SANDERS & DEMPSEY L.L.P. 

Service List 

Pierre Murphy (Arrow) 

Russell Pommer (Atlas) 

William Evans (Centurion) 

Nancy Sparks (FedEx) 

Bailey Leopard (FedEx) 

Mark Atwood (Kalitta) 

Kevin Montgomery (Polar) 

David Vaughan (UPS) 

Danielle Fisher (UPS) 

Malcolm L. Benge (World) 

Robert Silverberg (ABX Air Inc.) 

Aaron Goerlich (Southern) 

pmurphy@lopmurphy.com 

rpommer@atlasair. com 

bill@mietuslaw.com 

nssparks@ fedex. com 

gbleopard@fedex.com 

matwood@sherblackwen.com 

K.evin.montgomery@polaraircargo.com 

dvaughan@kelleydrye.com 

dfisher@kelleydrye.com 

mlbenge@zsrlaw.com 

rsi!verberg@sgbdc.com 

agoerlich@ggh-airlaw.com