Order 00-7-19

Continental Airlines, Inc. / Delta Air Lines, Inc. / U.S. - Colombia Combination Service Proceeding (2000)

While both of the applicants in this case have presented proposals that would benefit travelers, based on our review of the record and all relevant factors, we tentatively conclude that Delta is the better choice. Delta's proposal offers greater service benefits and better fulfills our goal of increasing competition in the U.S.-Colombia market. Delta would provide Colombia service at a new U.S. gateway, thereby benefiting both local and connecting passengers. Furthermore, selecting Delta would add a significant new competitor to a major South America market.

Currently, American and Continental are the two carriers authorized to serve Colombia. American operates 35 weekly frequencies, all from its large Miami gateway, with three daily flights to Bogota and a daily flight each to Barranquilla and Cali. Continental operates 14 weekly flights to Bogota with a daily flight each from its two major hubs-Newark and Houston. Colombian carriers operate 47 weekly frequencies, nearly all from Miami. /11 Bogota is by far the largest market, as reflected by the predominant level of services provided to that city. American operates the majority of its services to Bogota, Continental operates all of its services to Bogota, and the Colombian carriers serve Bogota on over half of their services.

Delta's proposal would offer the public service to this important Colombian destination from a new U.S. gateway, Delta's hub at Atlanta. This service would afford Atlanta passengers their first nonstop service to Colombia. Delta's Atlanta hub, which serves passengers throughout the United States with over 150 daily flights, would also provide travelers in the Atlanta catchment area with an important competitive service option for connecting service to Colombia to the services offered by American at Miami and Continental at Houston. Given the size of Delta's Atlanta hub and the fact that U.S. services are now provided by U.S. carriers from only two U.S. cities, the addition of a new gateway will increase significantly the service options for Colombia passengers.

By:  Bradley Mims

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