ost973151

OST-97-3151

Delta Air Lines, Inc. (Certificate of Public Convenience, New York-Sao Paulo/Rio de Janeiro)

OST-97-3151 | November 21, 1997

Application for a Certificate of Public Convenience and Necessity and for Allocation of US-Brazil Frequencies

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Delta hereby applies for a new or amended certificate to provide scheduled foreign air transportation of persons, property and mail between New York, New York (JFK) and Sao Paulo and Rio de Janeiro, Brazil. Delta also applies for allocation of seven (7) weekly U.S.-Brazil frequencies available for U.S. combination services under the November MOC. The authority requested herein is fully consistent with the U.S.-Brazil Air Service Agreement, as amended. Delta requests that it be authorized to integrate this authority with all other certificate and exemption authorities held by Delta, consistent with applicable bilateral agreement provisions. Delta further requests amendment of any other conditions in Delta's certificates for public convenience and necessity which would prevent or impede full exercise of the authority requested herein.

Delta proposes to use Boeing 767-300ER aircraft (which has 212 seats in a three-class configuration: 10 first-class seats, 28 business-class seats and 174 economy-class seats).

Attachment 1: Service Proposal
Attachment 2: Operating Statistics
Attachment 3: Map

Service List

Answers are due by December 19, 1997, Subpart Q

Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060

American Airlines, Inc. - (Allocation of 7 weekly US-Brazil combination frequencies Miami-Manaus) / Delta Air Lines, Inc. - (Certificate of Public Convenience and Necessity and for Allocation of US-Brazil frequencies)

OST-97-3269 | OST-97-3151 | December 19, 1997

Motion of American Airlines, Inc. to Consolidate

American Airlines, Inc. hereby moves the Department to consolidate the captioned applications of American Airlines, Inc. and Delta Air Lines, Inc. for U.S.-Brazil authority. Under the U.S.-Brazil Air Transport Agreement, as amended, the two requests are mutually exclusive, and should be consolidated for contemporaneous review and decision.

Counsel: Carl Nelson, Jr. for American, 202.496.5647

Delta Air Lines, Inc. - (Certificate of Public Convenience and Necessity and for Allocation of US-Brazil frequencies)

OST-97-3151 | December 19, 1997

Answer of American Airlines

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Because the Department has been presented with applications seeking frequencies in excess of the number available, the Department is required to conduct a carrier-selection proceeding to choose between American and Delta. American urges that such a proceeding be instituted promptly, and that it be conducted using non-hearing, show-cause procedures, with the submission of direct exhibits, rebuttal exhibits, and briefs, and under an expedited timetable.

In that proceeding, American will demonstrate that grant of its application for seven frequencies to provide Miami-Manaus nonstop service is in the public interest. No U.S.-flag carrier presently operates service to Manaus, the largest city in the Amazon region of Brazil and a growing center of economic activity due to its status as a free port. American will provide substantial benefits in the local market (in competition with operations by Varig and Lloyd Aereo Boliviano), and in dozens of beyond markets that will receive convenience on-line connections at Miami.

Counsel: Carl Nelson, Jr. for Simmons, 202.496.5647

Answer of Continental Airlines

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South America will not even be a serious three-horse race until Continental receives Buenos Aires, Santiago and Houston-Brazil authority so it can compete with American, which serves Buenos Aires and Santiago and offers Brazil at its Miami and Dallas/Ft. Worth hubs and at JFK; and United, which serves Buenos Aires and Santiago and offers Brazil service at Miami, at JFK and at its Chicago hub. If U.S.-flag South American aviation service is a horse race, American is nearing the finish line, United is faltering at the turn and Continental is far behind but just becoming a contender while Delta has just decided to enter the starting gate.

Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2500

Answer of United Air Lines

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Given the greater competitive benefits offered by United's proposed first U.S. carrier nonstop services at Los Angeles as compared to Delta's additional nonstop services at New York JFK, United urges that, if both frequency allocations cannot be granted under the U.S./Brazil agreement, then Delta's instant request be denied and the application of United filed today be granted. In the alternative, if the Department deems it necessary to consider additional evidence, United urges that a carrier selection proceeding be scheduled expeditiously for comparative consideration of the applications of United and Delta to the extent that they are mutually exclusive.

Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130

1998 US-Brazil Combination Service Case

Order 98-5-27 | OST-98-3863 | OST-97-3269 | OST-97-3271 | OST-97-3273 | OST-97-3151 | Issued and Served May 20, 1998

Order Instituting Proceeding

By this order we institute the 1998 U.S.-Brazil Combination Service Case, Docket OST-98- 3863, to select a carrier to operate the seven weekly frequencies available for U.S.-Brazil combination services effective October l, 1998. We consolidate the frequency applications of American Airlines, Inc. and United Air Lines, Inc. and the certificate/frequency applications of Continental Airlines, Inc. and Delta Air Lines, Inc. into this proceeding.

Appendix A - Evidence Request

By: Charles Hunnicutt