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Order 1998-4-19

Brazil Cargo Charter Authorizations - (1998/1999)

Order 98-4-19 | OST-98-3746 | Issued April 16, 1998 | Served April 21, 1998

Order to Show Cause

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We have tentatively decided to use simplified procedures rather than conducting a competitive allocation proceeding to distribute flights for the upcoming 1998/99 charter year. Based on experience over the past few years, and changes in the Brazil cargo market, including the large number of available charters and reduced use in the past few charter years by U.S. carriers, we believe that more simplified procedures are appropriate and that such procedures will continue to ensure maximum opportunities for all competing interests. Specifically, we propose to reinstitute the simplified procedures previously used to distribute the available flights. Under those procedures, a portion of the 750 available Brazil all-cargo charters would be allocated in advance to incumbent carriers, on a use-or-lose basis based on their most recent two years' experience in the market; the balance would be maintained in a charter pool for distribution on a firstcome, first-served basis under procedures similar to those currently in effect for Brazil all-cargo charters. In circumstances comparable to those before us here, such simplified procedures have shown themselves to be a fair, equitable, and efficient means of allocating the available flights and of ensuring that the interests of all parties are met.

By: Charles Hunnicutt

Brazil Cargo Charter Authorizations 1998/1999

By Order 98-9-14, the Department issued its final order for distribution of the 750 available U. S.-Brazil all-cargo charters for the 1998/1999 charter year. Specifically, we allocated the 750 all-cargo charter flights as follows: Florida West International Airways, Inc. - 154; Southern Air Transport, Inc. - 146; Atlas Air, Inc. - 80; Arrow Air, Inc. - 28; Air Transport International L.L.C. - 26; Tower Air, Inc. - 24; and 292 charters retained in a charter pool for distribution on a first-come, first-served basis.

The advance allotments are subject to the condition that where fewer than 40 percent of a carrier's allocated charters have been used or been committed for use by firm contracts during the six-month period ending December 31, l 99X, the remaining charter allotments exceeding the number equal to the number of those already operated or committed in the preceding six months would be forfeited and placed in the charter pool. After reviewing the monthly reports on their flight operations, we have determined that Southern Air Transport and Air Transport International have not used 40 percent of their allotments; therefore a total of 137 charters will be returned to the charter pool at this time. (Southern Air Transport forfeits 131 and Air Transport International forfeits 6.) (See attached Appendix.) Tower and Air Transport International informed the Department earlier in the charter year that they were returning 24 and 20 charters, respectively. As of January :31, 1999, 302 flights are available in the charter pool. Flights issued from the charter pool are subject to the conditions and procedures established for such flights in ordering paragraph 5(a) through (e) of Order 98-614.

By:  Paul Gretch

Brazil Cargo Charter Authorizations 2000/2001

By:  Bradley Mims

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