OST-1997-2338
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OST-1997-2338
Delta Air Lines, Inc. (Renew and Amend – Notice of Action Taken)
OST-97-2338 | Posted June 12, 1997 (From Office of Intl Aviation)
Integrate its existing authority to provide scheduled foreign air transportation of persons, property, and mail on Routes 27-F, 52, 114, 152, 1S4, 158, 167, 178, 404, 515, 526, 562, 5O5, 586, 606, 616, and 630, and under exemption authority it holds to permit foreign air transportation services involving any points named on the above certificates of public convenience and necessity and exemptions. Delta also requests amendment of this authority to include Routes 660, 667, 672, 678, 685, 717, 719, and 732.
By: Paul Gretch / Counsel: Robert Cohn, 202-663-8060
Order Confirming Notices of Action Taken
Order 97-7-16 | Issued July 17, 1997 | Served July 23, 1997
By: Paul Gretch
| OST-97-2338 | April 12, 1999 | Application for Renewal and Amendment of Exemption Authority | Route Integration |
| Exhibit A: Delta Requests the Following Route Integration Authority | |||
| Service List |
Delta Air Lines, Inc. respectfully requests that theDepartment renew and amend the route integration authority described herein,and grant such other additional relief as the Department determines to be in thepublic interest.
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
| OST-97-2338 | Filed April 12, 1999 Issued May 5, 1999 |
Notice of Action Taken | Route Integration |
By: Paul Gretch
| OST-97-2338 | March 1, 2001 | Application for Renewal and Amendment of Exemption Authority | Route Integration |
| Exhibit: Route Authority | |||
| Service List |
Delta's current route authority is listed in Exhibit A, attached hereto. Delta requests amendment of its route integration exemption to the extent that such operational flexibility has not already been conferred upon any certificate or exemption granted to Delta subsequent to the most recent approval of Delta's route integration exemption.
Counsel: Shaw Pittman, Robert Cohn for Delta, 202.663.8060, robert.cohn@shawpittman.com
American Airlines, Inc. and Delta Air Lines, Inc.
| OST-97-2336 OST-97-2338 |
March 13, 2001 | Consolidated Answer of United Air Lines | Broad Route Integration Authority Exemption Renewal |
| Service List |
United joins American and Delta in believing that granting U.S. carriers the broadest possible route integration authority would serve the public interest, provided that it incorporates the Department's standard conditions concerning consistency with international agreements and the use of limited-entry rights. So long as the Department is willing to grant the same relief to all U.S. carriers requesting the authority, United supports the American and Delta applications. Accordingly, United requests that the Department amend United's route integration exemption sua sponte, to incorporate the same degree of flexibility afforded American and Delta.,
Eliminating the need for ad hoc amendments and renewal applications will reduce the administrative burden on the Department and assure U.S. carriers the ability to conduct their operations with the maximum flexibility permitted under U.S. international agreements. In recent years, route integration provisions and the conditions attached thereto have become standard Department practice. Because route integration authority is already conditioned on compliance with international agreements and specific procedures governing limited entry routes, there should be no impediment to the grant of uniform, open-ended integration authority covering all of a carrier's international operations., In view of the potential efficiency benefits, both for U.S. airlines and the Department, United submits that it would be appropriate for the Department to revisit its policy on this issue, and fashion a standard that promotes both ease of operations and efficiency in administration.
Counsel: Wilmer Cutler, Jeffery Manley, 202.663.6670, jmanley@wilmer.com
| OST-97-2338 | Filed March 1, 2001 Issued June 8, 2001 |
Notice of Action Taken | Route Integration |
Integrate its existing authority to provide scheduled foreign air transportation of persons, property, and mail under its certificates of public convenience and necessity for Routes 27-F, 52, 114, 152, 154, 158, 167, 178, 404, 515, 526, 562, 585, 586, 606, 616, 630, 660, 667, 672, 678, 685, 717, 719, and 732, 740, 744, 751, 754, 756, and 757, and under its currently held exemptions, so as to permit foreign air transportation services involving any points named on the above certificates and exemptions.
By: Paul Gretch
| OST-97-2338 | April 7, 2003 | Application for Renewal of Exemption | Route Integration |
Renewal of Delta's route integration exemption authority is in the public interest. Continued approval of such authority will provide Delta with the marketplace needs, and will allow Delta to provide consumers with more convenient international air services. Moreover, under the Department's policy concerning route integration authority, Delta will continue to be able to implement new services to any foreign point named in its existing certificates and exemptions (subject to a notification requirement for limited-entry routes), without the regulatory burden of submitting discrete exemption and certificate requests.
Cited Order: Order 98-9-3 at 4-5
Counsel: Shaw Pittman, Robert Cohn, 202-663-8060
Delta Air Lines, Inc.
Filed April 7, 2003 | Issued April 24, 2003
OST-97-2338 - Route Integration
Integrate its authority to provide scheduled foreign air transportation of persons, property, and mail under its certificates of public convenience and necessity and currently held exemptions.
By: Paul Gretch
OST-97-2338 - Route Integration
February 9, 2005
Application for Renewal of Exemption Authority
Renewal of Delta's route integration exemption authority is in the public interest. Continued approval of such authority will provide Delta with the maximum flexibility to modify its flight patterns and respond quickly to marketplace needs, and will allow Delta to provide consumers with more convenient international air services. Moreover, under the Department's policy concerning route integration authority,' Delta will continue to be able to implement new services to any foreign point named in its existing certificates and exemptions (subject to a notification requirement for limited‑entry routes), without the regulatory burden of submitting discrete exemption and certificate requests.
Counsel: Shaw Pittman, Alexander Van der Bellen, 202-663-8060
OST-1997-2338 - Route Integration
December 15, 2005
Delta Air Lines, Inc. hereby provides notice of its intent to rely on route integration authority to commence new nonstop service between New York (JFK) and Sao Paulo, Brazil, effective April 1, 2006. By virtue of Delta’s existing certificate authority and U.S.-Brazil frequency allocations, Delta already holds the necessary authority for its proposed services. Advance sales and marketing efforts are critical to the success of this important new service, and Delta requests that the Department immediately issue a confirming Notice of Action Taken to permit Delta to load and sell New York-Sao Paulo services by no later than December 23, 2005.
Delta is conducting a poll of the carrier representatives on the attached service list and will advise the Department of the results.
Delta holds certificate authority to serve Sao Paulo, pursuant to Delta’s route authority for Route 740 last issued by Order 2002-7-31.
Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
OST-1997-2338 - Route Integration
December 20, 2005
Notice Shortening Answer Period
On December 15. 2005, Delta Air Lines, Inc. filed a notice in the captioned docket staling its intent to rely on route integration authority to commence new nonstop service between New York (JFK) and Sao Paulo, Brazil effective April 1, 2006.
Delta requests that the Department shorten the answer period to the notice such that answers would he due no later than December 21, 2005, instead of December 30, 2005, the date by which answers to this type of request would normally be due. Delta polled carrier representatives and notified the Department by letter dated December 19, 2005, that Continental intended to file an answer by December 21, and that neither American nor UPS objected to Delta's Notice. By email dated December 20, 2005, Delta advised that United did not object to the shortened answer period.
As no party has opposed Delta's request for a shortened answer period, we will grant the request. Therefore, acting under authority assigned in 14 CFR 38513(r). answers to Delta's December 15 notice will now he due no later than December 21, 2005. Persons entitled to petition the Department for review of the action set forth in this Notice under the Department's regulations, 14 CFR 385.30. may file their petitions within seven (7) days after the date of issuance of this Notice
By: Paul Gretch
December 19, 2005
On December 15, 2005 Delta filed a route integration Notice and conducted a poll of all carrier representatives served with its filing. Neither American nor UPS had any objection. Continental has stated that it will file an answer by no later than Wednesday, December 21. Delta has been unable to ascertain whether United intends to file an answer, or by what date it would agree to do so. In these circumstances, Delta respectfully requests that the Department issue a notice to interested parties in this proceeding shortening the answer date to 5pm, Wednesday, December 21.
As stated in Delta's Notice, Delta already has sufficient frequencies to conduct its proposed service, so no new limited entry rights are at issue. Order 2004-6-25 makes clear that U.S.-Brazil frequencies may be used in any city-pair, and Delta holds the necessary economic authority to serve JFK-Sao Paulo, subject only to the advance notice requirement of Delta's route integration exemption. The ability to load and sell the service immediately is critical to the successful launch of the new nonstop JFK-Sao Paulo flight on April 1, barely 3 months away. The shortened answer date will permit Delta one business day to reply to any answers that may be filed, and will facilitate final action by the Department on December 23, 2005, as requested in Delta's Notice.
Counsel: Hogan & Hartson, Alexander Van der Bellen, 202-637-8382, sascha.vanderbellen@hhlaw.com
OST-1997-2338 - Route Integration
December 21, 2005
Answer of Continental Airlines
Delta has submitted a "route integration notice" to shift seven of its 21 Atlanta-Brazil frequencies to New York(JFK) effective April 1, 2006, without specifying whether Delta will be abandoning its second daily Atlanta-Sao Paulo flight, which it previously said was supported by strong demand at Atlanta (see Delta's May 27, 2004 notice in Dockets OST-1999-6284, 2002-11711 and 2003-15021 at 3), or abandoning the daily Atlanta-Rio de Janeiro flight Delta said would "create important service and competitive benefits for U.S.-Brazil travelers and shippers on the Atlanta-Rio de Janeiro nonstop route - and the 149 U.S. cities" served by Delta "behind the Atlanta hub."
Continental objects to Delta's request that the Department "immediately issue" a notice allowing Delta to offer New York(JFK)-Sao Paulo service without evaluating the applicable public interest considerations and giving other carriers an opportunity to apply for the frequencies Delta seeks to move in the limited-entry U.S.-Brazil market. Continental is actively reviewing potential new Brazil service options that would require up to seven additional weekly frequencies and expects to reach a decision shortly.
Continental urges the Department to secure additional information from Delta regarding its U.S.-Brazil service plans, to consider fully the implications of Delta's proposal to move seven Brazil frequencies from its Atlanta hub to JFK and to issue a notice soliciting applications from other carriers for additional Brazil frequencies.
Counsel: Crowell & Moring, Bruce Keiner, 202-624-2615, rbkeiner@crowell.com
OST-1997-2338 - New York-Sao Paulo - Route Integration
December 22, 2005
On December 15, 2005, Delta provided the Department with Notice of Delta's intent to rely on route integration authority to provide new nonstop service between New York (JFK) and Sao Paulo, Brazil, effective April 1, 2006. Delta already has sufficient frequencies to conduct its proposed service, so no new limited entry rights are at issue. Order 2004-6-25 makes clear that U.S.-Brazil frequencies may be used in any city-pair, and Delta holds the necessary economic authority to serve JFK-Sao Paulo, subject only to the advance notice requirement of Delta's route integration exemption.
Continental was the only carrier to file an answer in response to Delta's Notice. Continental claims that it is "actively reviewing" Brazil service options and wants the opportunity to apply for Delta's frequencies. The Department should categorically reject Continental's meritless pleading and immediately issue a NOAT confirming Delta's reliance on route integration authority to operate New York-Sao Paulo service.
Continental knows full well that U.S. -Brazil frequencies may be used on any U.S.-Brazil route, and that a carrier's decision to switch service among city-pairs does not trigger a carrier selection proceeding. In fact, Continental itself urged the Department to adopt this policy.
Continental will soon face additional competition from Delta between New York/Newark and Sao Paulo, and Continental's baseless answer is clearly calculated to delay Delta's ability to market and promote its new JFK-Sao Paulo service. The Department should reject these tactics and immediately issue a confirming NOAT.
Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
OST-1997-2338 - New York-Sao Paulo - Route Integration
Filed December 15, 2005 | Issued December 23, 2005
Use its route integration authority to integrate its certificate and exemption authorities and commence new nonstop service between New York (JFK) and Sao Paulo, Brazil, effective April 1, 2006. Delta intends to utilize a portion of its existing allocation of 21 U.S.-Brazil frequencies to offer nonstop service at New York. Delta is providing advance notice consistent with its route integration authority.
At Delta’s request, and with no objection from the carrier representatives served by Delta, the Department issued a notice shortening the answer period from December 30, 2005, to December 21. Continental Airlines, Inc. filed an answer on December 21, objecting to issuance by the Department of a confirming notice without first evaluating applicable public interest considerations and giving other carriers an opportunity to apply for the frequencies Delta seeks to move in the limited entry U.S.-Brazil market. Continental states that Delta had stressed the importance of its Atlanta hub gateway in an earlier proceeding in support of an award to Delta of frequencies to serve Brazil, and that those considerations would no longer apply if the frequencies were shifted to New York, where Continental already offers daily New York-Sao Paolo service at Newark Liberty International Airport.
On December 22, 2005, Delta replied to Continental’s answer, noting that, under Department Order 2004-6-25, U.S.-Brazil frequencies may be used in any city-pair market, and that Delta holds the necessary economic authority to serve JFK-Sao Paolo, subject only to the advance notice requirement of its route integration exemption. Delta also pointed out that under the route integration conditions applicable here, the Department will only entertain requests by other carriers for limited entry route rights that are not then being used by the carrier. Delta states that it is currently using its 21 allocated Brazil frequencies.
Delta holds certificate authority to serve between Atlanta, Georgia and co-terminal points Sao Paulo and Rio de Janeiro, Brazil, under its Route 740 authority, issued by Order 2002-7-31. Under various certificates and exemptions, Delta holds authority to offer international services from New York (JFK).
Upon review of Delta’s December 15, 2005 notice, and the provisions of Order 2004-6-25, which were expressly designed to accord U.S. carriers designated for combination service to Brazil with the type of flexibility that Delta now seeks to exercise, and the terms of Delta’s still operative award of route integration authority in the present Docket, we have determined that no additional authority need be awarded for Delta to provide its proposed New York-Sao Paolo services. We have reviewed Continental’s answer and are not persuaded that further proceedings are necessary.
By: Paul Gretch
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