ost973271

OST-97-3271

United Air Lines, Inc. (Combination Frequency Allocation, US-Brazil)

OST-97-3271 | December 19, 1997

Application for a Frequency Allocation

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United wishes to commence daily nonstop services between Los Angeles and Sao Paulo on October 1, 1998, when seven (7) additional U.S.-Brazil combination frequencies become available as the result of an amendment to the U.S./Brazil bilateral agreement pursuant to the November 12, 1997, MOC. United will operate these services with B777 aircraft configured for 292 seats (12F, 49C, 231Y).

Exhibit UA-1: Proposed Service
Exhibit UA-2: US-Brazil Passengers by US Gateway

Answers are due by January 5, 1997

Service List

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

Continental Airlines, Inc. / United Air Lines, Inc. / American Airlines, Inc. (US-Brazil)

OST-97-3273 | OST-97-3271 | OST-97-3269 | January 2, 1998

Consolidated Answer of Delta Air Lines

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Delta urges the Department promptly to institute a case to consider the allocation of the seven additional weekly frequencies available under the U.S.-Brazil bilateral agreement. Delta wants to be in a position to obtain authority well in advance of the October 1998 start-up date under the MOC to permit it adequately to promote and market the proposed new services.

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

Continental Airlines, Inc. / Delta Air Lines, Inc. / American Airlines, Inc. / Continental Airlines, Inc. (US-Brazil)

OST-97-3271 | OST-97-3151 | OST-97-3269 | OST-97-3273 | January 2, 1998

Answer of Continental Airlines to Motion to Consolidate

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Continental believes the merits of its proposal to serve Houston so far outweigh any merits of the other proposals that its application should be granted immediately, but the Department is constrained by the Ashbacker doctrine and its own policies to institute a proceeding to consider the competing applications. American and Continental have sought consolidation of their applications with Delta's, while United has indulged in some wishful thinking about Brazil's potential willingness to offer more frequencies to the U.S. and failed to submit a motion seeking consolidation. Clearly, the American and Continental motions to consolidate should be granted whether United formally seeks consolidation or not.

Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2615

Motion of United Air Lines to Consolidate

Each of the captioned applications requests allocation of seven (7) V.S.-Brazil frequencies. A total of 28 frequencies are requested. Under the US/Brazil bilateral air services agreement, only seven (7) additional frequencies are available for allocation during 1998. Unless the U.S. and Brazil agree to increase the number of frequencies available, the captioned applications are mutually exclusive and must be consolidated for adjudication in a contemporaneous carrier selection proceeding.

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

American Airlines, Inc. / Continental Airlines, Inc. / United Air Lines, Inc. (US-Brazil Frequency Allocation)

OST-97-3269 | OST-97-3273 | OST-97-3271 | January 5, 1998

Motion for Leave to File One Day Late and Motion to Consolidate of American Airlines

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American will demonstrate that grant of its application to provide Miami-Manaus 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 convenient on-line connections at Miami.

Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com

American Airlines, Inc. / United Air Lines, Inc. (US-Brazil Frequency Allocation)

OST-97-3269 | OST-97-3271 | January 5, 1998

Consolidated Answer of Continental to Applications of American and United

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Continental opposes any award of frequencies to either American or United which would preclude Continental from instituting daily Houston-Brazil service.

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

United Air Lines, Inc. (Combination Frequency Allocation US-Brazil)

OST-97-3271 | January 14, 1998

Consolidated Reply of United Air Lines and Motion for Leave to File

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United is seeking authority to offer daily nonstop service between Los Angeles and Sao Paulo, which is the largest U.S.-Brazil market without nonstop U.S. carrier services. As illustrated in Exhibit UA-100, this city pair receives nonstop services from a number of foreign carriers. The only U.S. carrier services are limited to connections over other gateways or code shares on foreign carriers. The large Los Angeles-Sao Paulo market clearly warrants full U.S. flag carrier competition ahead of the smaller markets in which the other applicants have proposed services.

Exhibit UA-100: United Would Provide Intra-Gateway Competition for All of the Foreign Carriers Now Serving Los Angeles-Sao Paulo

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