Order 00-2-12

1999 U. S.-Brazil Combination Service/Continental Airlines

It is clear from Continental's response to Order 99-12-27 that it is not prepared to use the frequencies before the April 3 dormancy date applicable to the frequencies. We, therefore, have determined that those frequencies should be included for allocation in the 1999 Brazil Case. As a corollary, we have determined not to award immediately the three Houston frequencies to Delta for its proposed Atlanta-Rio de Janeiro service. Both Delta and Continental have proposed to use the three subject frequencies beginning in June 2000. As these proposals are mutually exclusive, we are required to afford them comparative consideration. Moreover, contrary to Delta's allegations, at least one other eligible airline has expressed interest in using the frequencies on a long-term basis. Having concluded that the three frequencies require consideration in a proceeding, we have also determined that the proper proceeding is the 1999 Brazil Case and not a separate proceeding. We have instituted the 1999 Brazil Case for consideration of the long-term needs-of the U.S.-Brazil market. The inclusion of the Houston frequencies in that proceeding is fully consistent with purpose of that case and comparable to other similar proceedings handled by the Department.8 A separate proceeding would be duplicative, unnecessarily burdensome on the parties and the Department, and not an economical use of the Department's resources. The Department's efforts in this regard are better used in considering all of the frequencies in one proceeding.

By:  Bradley Mims

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