OST-98-3863
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OST-98-3863
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
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
1998 U.S.-Brazil Combination Service Proceeding
OST-98-3863 | May 28, 1998
Amendment No. 1 to Application of Delta Air Lines
Delta hereby amends its certificate application for U.S. -Brazil authority to include authority beyond Brazil to a point or points in Paraguay, Uruguay and/or Chile consistent with the Department's Instituting Order and the U.S.-Brazil bilateral agreement. Delta is in the process of a major expansion into Latin America, which Delta intends to serve from its primary international gateways at New York (JFK) and Atlanta. By Application dated December 10, 1997, Delta filed for certificate authority to serve, inter alia, Paraguay, Uruguay and Chile. Along with its existing Brazil services, in April, 1998, Delta implemented a host of new services to Latin America countries.
Delta intends to use the authority awarded in this route case both to enhance its level and effectiveness of competition between the U.S. and Brazil, by implementing nonstop service between New York and Brazil, and to serve as a springboard for further enhancing Delta's service and competitive presence in Latin America. Delta is currently evaluating various routing options beyond Brazil. Delta's definitive service proposal will be contained in its direct exhibits, and will ensure that the maximum public benefits are attained from the U.S.-Brazil and beyond authority available under the bilateral.
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
1998 U.S.-Brazil Combination Service Case
OST-98-3863 | June 5, 1998
Re: Information Response of American Airlines
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
Re: Information Response of Continental Airlines
Counsel: Continental and Crowell Moring, Lorraine Halloway, 202-624-2538, lhalloway@cromor.com
Re: Information Response of Delta Air Lines
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
Re: Information Response of United Air Lines
Counsel: United and Ginsburg Feldman, Joel Burton
1998 U.S.-Brazil Combination Service Proceeding
OST-98-3863 | June 8, 1998
Re: Revised Information Response of United Air
Lines
United's revised Information Responses include an exhibit that was inadvertently omitted from United's June 5, 1998 filing due to a computer transmission error. We apologize for any inconvenience this may have caused. A computer diskette version of the Information Responses is also being submitted to the Office of Aviation Analysis.
Counsel: Ginsburg Feldman, Joel Burton, 202-637-9130, jburton@gfblaw.com
1998 US-Brazil Combination Service Case
OST-98-3863 | June 26, 1998
Direct Exhibits of American Airlines
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
Direct Exhibits of Continental Airlines
Direct Testimony of Gordon Bethune | Summary of Service Proposal
Counsel: Crowell Moring, Lorraine Halloway, 202-624-2500
Direct Exhibits of Delta Air Lines
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
Direct Exhibits of the City of Houston and the Greater Houston Partnership
Direct Exhibits of City of Houston and the Greater Houston Partnership
Counsel: Zuckert Scoutt, Raymond Rasenberger, 202-298-8660
Direct Exxhibits of Massachusetts Port Authority
By: Richard Cunnion, Massport, 617.478.4111
Direct Exhibits of United Air Lines
Counsel: Ginsburg Feldman, 202-637-9000
1998 US-Brazil Combination Service Proceeding
OST-98-3863 | Dated June 26, 1998 | Filed in Dockets Section June 29, 1998
Re: Direct Exhibits of the New York Parties
Testimonies:
Commodities and Cargo Statistics:
Census Statistics:
JFK Statistics and Information:
By: Bradley Rubinstein, Port Authority of NY & NJ, 212.435.7000
US-Brazil Combination Services Proceeding
OST-98-3863 | July 2, 1998
Re: US-Brazil Combination Services Proceeding - Letters in
Support of Application of Delta Air Lines, Inc.
Enclosed for filing in the captioned proceeding are letters supporting the selection of Delta Air Lines, submitted on behalf of Mayor Rudolph Giuliani, City of New York; Majority Leader Michael J. Bragman and Assemblywoman Barbara M. Clark, New York State Assembly; Senator Frank Padavan, New York State Senate; Senator Robert E. Travaglini, Massachusetts Senate; and Patrick B. Moscaritolo, President and CEO of the Greater Boston Convention & Visitors Bureau.
Exhibit DL-901: Letters in Support
Counsel: Shaw Pittman, Robert Cohn, 202.663.8060
1998 US-Brazil Combination Service Proceeding
OST-98-3863 | July 9, 1998
Re: Combination Services Proceeding - Delta Air
Lines, Inc.
Enclosed for filing in the captioned proceeding are letters supporting the selection of Delta Air Lines.
Exhibit DL-901: Letters of Support
Counsel: Shaw Pittman, Robert Cohn, 202.663.8060
US-Brazil Combination Service Case
OST-98-3863 | July 7, 1998
US DOT/OST - Ex Parte Letter to Mr. Robert Mosbacher
By Order 98-5-27, the Department instituted the 1998 U.S.-Brazil Combination Service Case, Docket OST-98-3863, to select an air carrier to operate seven weekly frequencies available for U.S.-Brazil combination services effective October 1, 1998. Continental Airlines is one of four applicants for such authority and has proposed to operate service from Houston. Since Continental's application is one of several applications pending before the Department for the available authority, I am sure you can understand that I cannot comment on the merits of any application. I assure you, however, that we will consider all relevant factors in making our conclusion.
By: Charles Hunnicutt
June 22, 1998
As a former cabinet member, I understand pressures you have to withstand regarding any push of cities for transportation. But I can tell you as an active businessman with interests in Brazil in the power generation area that it is extremely important we have good and direct service to Sao Paulo. Mosbacher Power Company is, of course, only one of many power, energy, and infrastructure companies which have continuing and ongoing business interests in Brazil.
In order for us to better compete with the businesses from other nations, we need strong,, direct and, hopefully, non-stop flights from Houston, the energy capital of the world, to Brazil, the second largest nation in our hemisphere.
By: Robert Mosbacher
US-Brazil Combination Services Proceeding
OST-98-3863 | July 14, 1998
Re: Combination Services Proceeding - Revised Page 3 of Delta
Air Lines, Inc.
Enclosed for filing in the above-referenced proceeding are an original and four copies of a revised page 3 of DL-T-2. This page has been revised to reflect the information correctly shown in DL - 103 and DL-104.
Counsel: Shaw Pittman, Katherine Aldrich, 202.663.8060
US-Brazil Combination Service Case
OST-98-3863 | July 15, 1998
Re: Combination Service Case - Errata and Revisions of
Exhibits of City of Houston
In preparing rebuttal exhibits, it came to our attention that the number of unduplicated weekly nonstop flights from Los Angeles to Sao Paulo for June 1998 is 13 instead of 15 as indicated in Houston's direct exhibits. This error was due to code-share flight listings between JAL and VARIG. All revisions attached relate to this correction.
[Editor's Note: Exhibit 230, While Listed in the Original Filing Index, Does Not Seem to Have Been Physically Filed as an Exhibit]
Counsel: Zuckert Scoutt, David Heffernan, 202.298.8660
US-Brazil Combination Service Proceeding
OST-98-3863 | July 16, 1998
Re: Combination Service Proceeding - Letter in Support of Delta
Air Lines, Inc.
Enclosed for filing in the captioned proceeding is a letter from Assemblyman Jeffrion L. Aubry, New York State Assembly, supporting the selection of Delta Air Lines, Inc. ("Delta").
Exhibit DL-901: Letter in Support of Hon. Jeffrion Aubry
Counsel: Shaw Pittman, Robert Cohn, 202.663.8060
US-Brazil Combination Service Proceeding
OST-98-3863 | July 17, 1998
Rebuttal Exhibits of American Airlines - Narrative
Testimony
Counsel: Carl Nelson, Jr., 202.496.5647
Rebuttal Exhibits of Continental Airlines -
Narrative Testimony
Counsel: Continental and Crowell Moring, Lorraine Halloway, 202-624-2500
Rebuttal Exhibits of Delta Air Lines - Narrative
Testimony
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-863-8060
Rebuttal Exhibits of The City of Houston and The Greater
Houston Partnership - Narrative Testimony
Motion of The City of Houston and The Greater
Houston Partnership for Confidential Treatment
Counsel: Zuckert Scoutt, Raymond Rasenberger, 202-298-8660
Rebuttal Exhibits of the New York Parties -
Narrative Testimony
Pursuant to Order 98-5-27, enclosed for filling in the above referenced proceeding are an original and four copies of Rebuttal Exhibits of the New York Parties, which includes a letter of support from the Governor of the State of New York.
By: Bradley Rubinstein, Mgr. Air Service Dev. and External Affairs, NY Port Authority
Rebuttal Exhibits of United Air Lines - Narrative Testimony
Counsel: United and Ginsburg Feldman, Joel Burton
US-Brazil Combination Service Proceeding
OST-98-3863 | July 20, 1998
Re: Combination Service Proceeding - Letters in Support of Delta
Air Lines, Inc.
Enclosed for filing in the captioned proceeding are letters from Brian A. Joyce, State Senator, Massachusetts Senate, and Stephen J. Murphy,City Councilor At-Large, Boston City Council, supporting the selection of Delta Air Lines, Inc. ("Delta").
Exhibit DL-901:
Counsel: Shaw Pittman, Alexander Van der Bellen, 202.663.8060
Re: Combination Service Proceeding - Letters in Support of United
Air Lines, Inc.
Enclosed please find three (3) revised rebuttal exhibits of United Air Lines, Inc., in the above-referenced proceeding. The revisions are due to computer errors in printing updated versions of the exhibits. This also requires revision of the Table of Contents of the rebuttal exhibits.
Counsel: Ginsburg Feldman, Joel Burton, 202.637.9130
1998 U.S.-Brazil Combination Service Case
OST-98-3863 | July 24, 1998
Re: Letter from Florida Congressional Delegation
in Support of American Airlines
Counsel: Carl Nelson Jr., 202.496.5647
US-Brazil Combination Service Case
OST-98-3863 | July 31, 1998
Re: Letters in Support - United Air Lines, Inc.
Counsel: Ginsburg Feldman, Joel Burton, 202.637.9130
1998 U.S.-Brazil Combination Service Proceeding
OST-98-3863 | August 4, 1998
Re: Letters from New York and Massachusetts Congressional
Delegation Supporting Delta Air Lines
Counsel: Shaw Pittman, Robert Cohn, 202-663-8060, robert_cohn@shawpittman.com
1998 U.S.-Brazil Combination Service Case
OST-98-3863 | August 7, 1998
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
Counsel: Continental and Crowell Moring
Counsel: Delta and Shaw Pittman, Robert Cohn
Brief of the City of Houston and the Greater Houston
Partnership
Counsel: Zuckert Scoutt, Raymond Rasenberger, 202-298-8660
Brief of Massachusetts Port Authority
By: MASSPORT, Charles Yelen, 617-478-4152
Brief of the New York Parties (No
signature page)
Counsel:
Counsel: United and Ginsburg Feldman, Joel Burton
1998 U.S.-Brazil Combination Service Case
OST-98-3863 | August 14, 1998
Re: Statements in Support of United's
Service by Senator Barbara Boxer and Qualcomm
Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130
1998 U.S.-Brazil Combination Service Proceeding / Continental Airlines, Inc.
| OST-98-3863 OST-97-3273 |
November 16, 1998 | Motion of Continental
Airlines for Leave to File an Otherwise Unauthorized Document and Request to
Amend Start-Up Conditions |
US-Brazil Combination |
Continental has been reviewing its plans for Brazil service and has concluded it cannot economically commence Houston-Sao Paulo service for 18 months. Because Brazil has experienced a severe economic downturn since the Department served Order 98-5-27 on May 20, 1998, new Brazil service cannot become economically viable within the required 90 days. Thus, Continental cannot achieve the substantial public benefits of Continental's Houston-Sao Paulo proposal within 90 days. Continental anticipates Brazil's economy will be on the upswing within 18 months and, thus, it will be possible to institute economically viable Brazil service within that period of time.
Counsel: Continental and Crowell Moring, Lorraine Halloway, 202-624-2500
1998 U.S.-Brazil Combination Service Proceeding / Continental Airlines, Inc.
| OST-98-3863 | Posted and Served November 18, 1998 | Notice Shortening Answer
Period |
1998 US-Brazil Combination |
Notice Shortening Answer Period, requires that answers to Continental's November 16, 1998 Motion and Request to Amend Startup Conditions be filed no later than November 20, 1998, and that replies to answers be filed no later than noon, November 24, 1998
By: Paul Gretch
| OST-98-3863 | November 18, 1998 | Answer of Delta Air
Lines |
1998 US-Brazil Combination |  HTML |
Because of the long and unexpected delay in the issuance of a decision in this proceeding, Delta's deadline for allocating its international aircraft for the summer 1999 season has now passed. Delta had no choice but to allocate its equipment to avoid the risk of having two expensive long-range international aircraft remain idle. Thus, Delta has already committed the aircraft and sold advance seats on its 1999 international services. Nevertheless, Delta is fully prepared to commence the proposed Boston-JFK-Brazil-Montevideo service in the beginning of the summer 1999 winter season. Thus, Delta is ready, willing and able to start its proposed Brazil service substantialy ahead of Continental's proposal. And, the only reason for Delta's modest delay is directly and solely related to the delay in the issuance of a decision in this case, which forced Delta to allocate its international aircraft for the summer 1999 to other destinations. While Continental references certain reports of the economic situation in Brazil, Delta notes that its current Atlanta-Brazil service continues to experience strong demand.
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
1998 U.S.-Brazil Combination Service Case
| OST-98-3863 | November 20, 1998 | Answer of Massachusetts
Port Authority |
1998 US-Brazil |
The appropriate time for requesting more time to start-up is after the award is made, not before it is made. All of the parties, including Continental, presented their views in pleadings and briefs under the ground rules that the Department set when the case was opened. One of these ground rules was that the start-up had to be made within 90 days. To change that ground rule before the award, but after the close of the case would be unfair to the parties. Indeed, one of that Parties, Delta Airlines, was prepared to begin service on the named earliest start-up date, October 1, 1998. Delta has not backed down from an early start-up date.
Counsel: MASSPORT, Charles Yelen, 617-478-4145
| OST-98-3863 | November 20, 1998 | Answer of United Air
Lines |
1998 US-Brazil |
It makes no sense to give Continental 1 1/2 years to start service when that would come at the expense of the introduction of new U. S. carrier service to Sao Paulo from the Los Angeles gateway such as United has here proposed. United is prepared to start its service under normal DOT startup deadlines and subject to normal dormancy conditions. United should be able to begin its service in time to meet the summer peak season in U.S.-Brazil traffic. Awarding the authority to Continental would waste this valuable economic opportunity and deprive consumers in the Western U.S. of a valuable new service to Brazil.
Counsel: United and Kirkland Ellis, Jeffrey Manley, 202-879-5161
1998 U.S.-Brazil Combination Service Proceeding
| OST-98-3863 OST-97-3273 |
November 24, 1998 | Reply of Continental
Airlines |
Continental is now planning to institute Houston-Sao Paulo service in the beginning of the Winter 1999 season, and Continental is committed to institute such service no later than the end of 1999. Thus, Continental agrees with Delta that a 12-month start-up condition would be appropriate. Because instituting service at Houston, a new hub gateway, will provide far more public benefits than increasing frequencies at the well-served existing gateways at New York/Newark (JFK) and Los Angeles, however, Continental urges the Department to award Continental Houston- Sao Paulo authority and to deny the applications of Delta, Massport and United.
Counsel: Crowell & Moring LLP, R. Bruce Keiner, Jr. and Lorraine Halloway for Continental Airlines, 202.624.2500
| OST-98-3863 | November 24, 1998 | Reply of Delta Air
Lines |
|
| Service List |
Delta's proposed Boston-New York-Brazil-Montevideo service will maximize the competitive market structure and provide significantly enhanced online service benefits between the United States and two important South American countries (Brazil and Uruguay). Brazil is the largest and most important market in South America. New York is the second largest U.S.-Brazil market and is one of the key linchpins to Delta's Latin America route structure. Delta has a substantial competitive presence at New York -- one of its largest international gateways, yet Delta is the only carrier serving Brazil that lacks authority to serve this important route. Delta's New York-Brazil proposal is strengthened by integrating Boston and Montevideo with single-plane service, which will provide a significant, vigorous and competitive challenge to the entrenched U.S.-flag incumbents -- American, United and Continental.
Counsel: Shaw Pittman, Robert Cohn for Delta, 202.663.8060
| OST-98-3863 | November 24, 1998 | Reply of the City of
Houston and the Greater Houston Partnership |
|
| Service List |
Houston is the only city in this case without nonstop or same-plane service to Brazil. Every other proposal in this case adds service to cities that already have a large measure of service. Houston, the nation's fourth largest city and Continental's primary U.S. hub, is superbly located to provide not only critical nonstop service to Houston, but also single-plane connecting service to a great many other cities across America. Houston must be granted its first ever nonstop service before those with a large measure of service get even more.
Counsel: Zuckert Scoutt, Rachel Trinder, 202.298.8660
| OST-98-3863 | November 23, 1998 | Answer of the New York
Parties |
|
| Service List |
In view of the recent developments signified by submissions to the U. S. DOT, we are concerned that the award of rights may be yet delayed longer, and so deprive the New York/New Jersey area of service that will benefit it greatly. The Port Authority respectfully requests that the U. S. DOT grant the frequencies requested by Delta Air Lines for New York - Sac Paulo, with service continuation to Montevideo, Uruguay.
By: Bradley Rubinstein, Manager, Air Service Development & External Affairs
| OST-98-3863 | November 24, 1998 | Reply of United Air
Lines |
|
| Attachment A: L.A. Experiences Much Higher Load Factors on Its Nonstop Services to Brazil than Other U.S. Gateways | |||
| Attachment B: Individual Foreign Carrier L.A.-Sao Paulo Nonstop Load Factors Continue to Be Relatively High | |||
| Service List |
Another factor favoring United's selection is the probability that Japan Air Lines will be discontinuing its Los Angeles-Sao Paulo nonstop service. This will be a likely result of the termination of the joint service arrangement between JAL and Varig. While it is not clear what U.S. intermediate point JAL will serve as an alternative to Los Angeles, it is no secret that JAL is considering new service to Brazil via New York.
Counsel: Kirkland & Ellis, Jeffrey Manley for UAL, 202.879.5161
1998 U.S.-Brazil Combination Service Proceeding
| OST-98-3863 | November 25, 1998 | Motion for Leave to File Surreply of Delta Air Lines |
1998 US-Brazil Combination |
| Captured PDF |
After having reviewed Delta's response, Continental has once again changed its position, playing the role of spoiler in an attempt to undermine Delta's superior Brazil proposal and ward off a new entrant competitor at New York. Continental ignores the fact that Delta's proposed winter 1999 start date was necessitated solely by the delay in the issuance of a decision in this case. Delta's proposed winter 1999 start up date has nothing at all to do with any alleged weakness in Brazil's economy, which is the sole basis for Continental's delay. In fact, Delta has consistently urged expedition. It was the first to file an application and throughout the proceeding request the prompt issuance of authority to enable it to commence service on October 1, 1998. If a timely decision had been rendered, Delta was fully prepared to begin service on that date. Although Continental now professes that it will be willing to begin service by the end of 1999, it appears that Continental's start-up date is still contingent on Continental's view of whether or not the Brazil economy has improved, since nothing has materially changed in the nine days following Continental's motion. Continental's disingenuous attempt to match Delta's proposal should be disregarded.
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
1998 U.S.-Brazil Combination Service Proceeding
| OST-98-3863 | December 3, 1998 | Consolidated Response of United Air Lines and
Motion for Leave to File |
US-Brazil Combinaiton |
| Service List |
While Continental and Delta are playing "musical chairs" with their startup dates, a valuable economic opportunity is going to waste. United has committed to an April I, 1999 startup if the Department issues its final decision before December 31, 1998. Neither of the other carriers has committed to begin before sometime during the winter 1999-2000 traffic season. While neither of these other carriers has adopted a precise startup date, it is clear that United is ready, willing and able to start its new Los Angeles-Sao Paulo service at least a full traffic season ahead of either one of them.
Counsel: Kirkland & Ellis, Jeffrey Manley for United, 202.879.5161
1998 U.S.-Brazil Combination Service Proceeding
| OST-98-3863 | December 8, 1998 | Motion for Leave to File - Response of Delta Air Lines |
1998 US-Brazil Combination |
United's focus on its alleged start date ignores the important carrier-selection objectives the Department seeks to attain in this case of maximizing competition and service benefits between the United States and Brazil, which only the selection of Delta will achieve. The superiority of Delta's service proposal is not outweighed by the relatively minor differences between its start date and United's. As Delta previously noted, it was fully prepared to begin service on October 1, 1998, if a timely decision had been rendered. Delays in processing this case have prevented that from occurring. Delta should not be penalized by the processing delay and the impact it has produced on the near-term availability of aircraft for use on the U.S.-Brazil route. Delta's proposed winter season 1999 start date is reasonable under the circumstances and does not lessen the public interest superiority of Delta's service proposal.
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
1998 U.S.-Brazil Combination Service Proceeding
| OST-98-3863 | December 14, 1998 | Response of Continental Airlines and Motion
for Leave to File |
1998 US-Brazil Combination |
Continentals responds as follows to the Delta "Motion for Leave to File Response of Delta Air Lines, Inc." ("Delta Motion") and "Consolidated Response of United Air Lines, Inc. and Motion for Leave to File," ("United Response") and urges the Department to grant Continental seven frequencies so it can institute nonstop Houston-Sao Paulo service in the fourth quarter of 1999 and to grant Continental's motion for leave to file this response.
Although Delta has claimed that its "deadline for allocating its international aircraft for the summer 1999 season has passed" and that "Delta has already committed the aircraft and sold advance seats on its 1999 international service," Delta is claiming simultaneously that it has B-767-300ER aircraft readily available to begin Atlanta-Rome service "on April 1, 1999 when the frequencies become available." Either Delta has aircraft available and has chosen to commit them to the Atlanta-Rome route in light of Brazil's less-favorable economic climate or Delta has no aircraft available for either Atlanta-Rome or additional U.S.-Brazil service. Prompted by Continental's candor about its deferral of Brazil start-up plans, Delta has confessed that it would not begin service until "winter 1999," but Delta's candor apparently has not extended to the reasons for that delay or the availability of its aircraft.
Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2500
1998 U.S.-Brazil Combination Service Proceeding
| OST-98-3863 | December 4, 1998 | Re: Letter in Support of United Air Lines from
Los Angeles World Airports |
1998 US-Brazil |
By: John Driscoll
1998 U.S. - Brazil Combination Service Case
| Order 98-12-23 OST-98-3863 |
Issued and Served December 29, 1998 |  Order to Show Cause |
1998 US-Brazil Combination Service Case |
By this order, we tentatively select Continental Airlines, Inc. for the primary award
in this proceeding to operate seven weekly
frequencies in the Houston-Sao Paolo market and Delta Air Lines, Inc. for the backup award
for the New York-Brazil
market. We also tentatively propose to issue Continental and Delta certificates of public
convenience and necessity for their
proposed services. In addition, we tentatively grant United Air Lines, Inc., on an interim
basis, seven weekly frequencies
for Los Angeles-Sao Paulo services and tentatively select American Airlines, Inc., on an
interim basis, for backup to United’s
award should United not institute service.
We will afford interested parties 10 calendar days to file objections to our tentative
findings and conclusions and 5 calendar
days to file any answers to such objections.
By: Patrick Murphy
1998 U.S.-Brazil Combination Service Proceeding
| OST-98-3863 | January 8, 1999 | Motion of Delta Air Lines |
1998 US-Brazil Combination | HTML |
| OST-98-3863 | January 8, 1999 | Objections of Delta Air Lines |
1998 US-Brazil Combination | HTML |
| Exhibits: Continental's Load Factors Schedule |
The economically rational solution would be for Continental to use 7 of its current 14 weekly frequencies to establish nonstop service at Houston and to combine its two money-losing Newark flights into a single healthy operation by serving Sao Paulo and Rio de Janeiro as coterminal points (as Delta currently does on its profitable Atlanta-Brazil service). Delta's attached exhibits indicate that by combining the two economically weak Newark nonstops into a single flight serving both Brazil cities, Continental would be able to operate Newark-Brazil service at viable load factors. This would strengthen and enhance Continental's Brazil position by allowing it to stem the flow of substantial losses at Newark and initiate service at Houston.
Counsel: Shaw Pittman, Robert Cohn, 202.663.8060
| OST-98-3863 | January 8, 1999 | Objections of United Air Lines |
1998 US-Brazil Combination | HTML |
Although the Department has proposed to allow United to use the seven available frequencies for Los Angeles-Sao Paulo service on an interim basis, the temporary allocation as proposed would effectively limit United to only about 6 months of service. Such a short term for interim services is wholly inadequate. In order to justify the substantial investment of resources to develop this route in competition against the foreign carriers at Los Angeles, United would need an interim allocation of two years. That is, of course, only a few months more than the 18 month delay Continental originally said it needed before it would be ready to start service at Houston. In these circumstances, United is not prepared to start Los Angeles-Sao Paulo services as the interim allocation now stands. United urges the Department in its final order to select United as the primary carrier and allocate to it the seven weekly U.S.-Brazil frequencies to operate Los Angeles-Sao Paulo services. In the alternative, United urges that, if Continental's tentative selection is allowed to stand, United be allocated the frequencies for a two-year interim period to extend from the date of the final order. That interim allocation should be made immediately on a pendente lite basis to avoid the delay entailed by a review of the final order issuing certificates of public convenience and necessity under 49 U.S.C. §41307. Finally, United urges that as part of its alternative relief; the Department name United as backup carrier in place of Delta.
Counsel: Kirkland & Ellis, Jeffrey Manley, 202.879.5161
1998 U.S.-Brazil Combination Service Case
| OST-98-3863 | January 13, 1999 | Answer of Continental Airlines to Objections |
1998 US-Brazil Combination Service Case | HTML |
Over the longer term, the public benefits of nonstop Houston-Sao Paulo service clearly outweigh any benefits from United's Los Angeles-Sao Paulo service. Continental's Houston-Sao Paulo service will strengthen Continental's growing international gateway at Houston, allow Continental to compete effectively with American for traffic between the U.S. and points throughout Brazil, offer alternatives to American's Miami and Dallas/Ft. Worth hubs, Delta's Atlanta hub and United's Miami and Los Angeles gateways and Chicago hub and provide enhanced competition between the U.S. and Brazil. Continental serves more destinations nonstop via its Houston hub than any other applicant serves nonstop via its proposed gateway and provides many more daily departures at Houston than any other applicant provides at its proposed gateway. Continental's successful entry into Houston-South America markets, including the Houston-Lima, Houston-Caracas and Houston-Bogota routes, shows the importance of expanding Houston as a gateway for South America. United is already serving the Los Angeles-Sao Paulo route with its partner Varig, so United's interim service can be provided without a major investment. If United's interim Brazil service is successful, United has the possibility of code-sharing on additional flights by its Star Alliance partner, Varig, if additional Brazil frequencies do not become available through bilateral negotiations.
Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2500
| OST-98-3863 | January 13, 1999 | Answer of The City of Houston and The Greater Houston
Partnership |
1998 US-Brazil Combination Service Case | HTML |
Delta and United have failed to raise any arguments or issues that warrant any action by the Department other than the finalization, without amendment, of its tentative decision. Those objections completely fail to undermine the substance of the Department's detailed and thoroughly well reasoned decision recognizing the superiority of Continental's Houston proposal.
Counsel: Zuckert Scoutt, Rachel Trinder, 202-298-8660
| OST-98-3863 | January 13, 1999 | Answer of The City of Los Angeles |
1998 US-Brazil Combination Service Case | HTML |
Los Angeles joins with United in urging the Department to reverse its tentative decision and allow United to implement its nonstop Los Angeles-Sao Paula service. Los Angeles is a better choice than Houston or New York, particularly where the carriers proposing to service those cities have decided for their own corporate purposes to delay service until much later in the year. At the very least, Los Angeles urges that United be given a temporary license for a longer period than the Department has proposed. United says that it is willing to start service if it is given a two-year temporary award. Los Angeles urges that the Department make such an award in its final order.
Counsel: Los Angeles, Raymond Ilgunas, 310-646-5252
| OST-98-3863 | January 13, 1999 | Consolidated Answer of United Air Lines |
1998 US-Brazil Combination Service Case | HTML |
United again urges the Department to select United as the primary carrier or, at tile very least modify the interim allocation to United as described above and in United's Objections. United opposes any reopening of the record to the extent that such action would delay either a final decision awarding the frequencies to United as primary carrier or an order modifying the interim allocation to United as proposed herein. United would have no objection to the reopening of the record, however, as Delta urges, if that action is accompanied by an immediate modification of the interim allocation to allow United to operate Los Angeles-Sao Paulo service for a two-year period.
Counsel: United and Kirkland Ellis, Jeffrey Manley, 202-879-5161
| OST-98-3863 | January 14, 1999 | Motion for Leave to Late File |
Delta's Answer Could Not Be Filed Electronically 1/13/99 Due to a Software Problem | |
| OST-98-3863 | January 13, 1999 | Answer of Delta |
1998 US-Brazil Combination Service Case | HTML |
Delta's Objections compellingly demonstrated that the Department's tentative decision seriously erred by reason of its failure to authorize the one carrier-selection option that would result in new Houston-Sao Paulo nonstop service by Continental Airlines, Inc. and allow Delta to initiate Boston-New York-Sao Paulo Montevideo service. Delta's and United's Objections are consistent in showing that Continental is squandering seven valuable U.S.-Brazil frequencies on grossly uneconomic service which could be more productively employed to initiate Houston-Sao Paulo nonstop operations.
Counsel: Shaw Pittman, Robert Cohn, 202.663.8060
1998 U.S.-Brazil Combination Service Proceeding
| OST-98-3863 | January 20, 1999 | Answer of Continental Airlines in Opposition |
1998 US-Brazil Combination | HTML |
Continental believes the Department should deny Delta's motion to reopen the record at this stage of the proceeding. If the Department disagrees, however, and grants Delta's motion, fundamental fairness requires that the Department open the record in its entirety to receive evidence related to other developments since the parties filed their rebuttal exhibits. Such evidence would include information related to Delta's allocation of aircraft to other routes and admission that it lacks the aircraft to institute JFK-Sao Paulo service this summer, the deterioration in Brazil's economic condition, and current traffic information for all U.S. carriers operating on U.S.-Brazil routes.
Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2500
| OST-98-3863 | January 20, 1999 | Supplemental Answer of United Air Lines to
Motion of Delta Air Lines to Reopen the Record |
1998 US-Brazil Combination | HTML |
Because of fundamental changes in the Brazilian economic situation as a result of the devaluation of that country's currency on January 13, 1999, United is no longer in a position to undertake the risk of starting Los Angeles-Sao Paulo service on an interim basis. In these circumstances, United urges the Department to reopen the record as Delta requests in order to focus on the results achieved in the New York/Newark-Brazil market. United is confident that such a reopened investigation will demonstrate that the additional frequencies would produce greater public benefits if they were awarded to United on a permanent basis for its proposed Los Angeles-Sao Paulo service. A reopened record will demonstrate that services between Houston and Sao Paulo as proposed by Continental can be operated within that carrier's existing 14 frequency allocation without any detriment to the already well-served New York/Newark-Brazil market.
United also urges the Department in reopening the record to direct American and United to submit updated results on their experienced load factors for New York-Brazil nonstop flights. These results should be filed on the same day as that set for submission of Continental's updated results. This will allow a comparison to be made with Continental's results in the New York/Newark-Brazil market.
Counsel: United and Kirkland Ellis, Jeffrey Manley, 202-879-5161, jeffrey_manley@kirkland.com
1998 U.S.-Brazil Combination Service Case
| OST-98-3863 | January 22, 1999 | Reply of Continental Airlines and Motion for
Leave to File |
1998 US-Brazil Combination |
United's sudden unwillingness to accept interim Brazil authority provides no basis for reopening this case for more information of any kind. The fact that United has apparently lost confidence in the economic future of Brazil should have no bearing on the Department's final award of primary and backup authority. Unlike United, Continental believes that Brazil is now taking the difficult steps which should ultimately stabilize and restore its economy, and Continental strongly desires to begin offering Houston-Sao Paulo service. Continental is already making the investment necessary to develop nonstop Brazil service on the Newark-Rio de Janeiro and Newark-Sao Paulo routes, and Continental intends to make the same investment to develop the nonstop Houston-Sao Paulo route. Although Continental did not object to United's interim service proposal, Continental's willingness to accommodate United provides no justification for reopening the record or delaying the award of authority to Continental now that United has abandoned its interim service proposal.
Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2500
| OST-98-3863 | January 22, 1999 | Motion for Leave to File
and Consolidated Answer of Delta Air Lines |
1998 US-Brazil Combination | HTML |
- Continental does not dispute that the expected public benefits of its Newark-Rio de Janeiro nonstop service have failed to materialize.
- Continental does not dispute that its failing Newark-Rio nonstop service is experiencing grossly uneconomical load factors averaging in the low 30s.
- Continental does not dispute that in the absence of an award it would reevaluate its Newark-Rio service and put those frequencies to better use (ostensibly for Houston-Sao Paulo service, since that was the best proposal Continental could put forward in this case).
- Continental does not dispute that it has no immediate interest in operating Houston-Sao Paulo service. Instead, Continental reinvents its request for an 18 month startup delay by supporting an extension of United's interim award.
- Continental does not dispute that its primary interest in hoarding Brazil frequencies is to block competitive entry by Delta at New York "until Continental's routes have matured and the Brazilian economy has recovered."
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
1998 U.S.-Brazil Combination Service Case
| Order 99-3-26 OST-98-3863 |
Posted March 30, 1999 Issued March 18, 1999 Served March 30, 1999 |
Final Order | 1998 US-Brazil Combination Service Case | HTML |
| Attachment: Route 758 Experimental Certificate for Continental Airlines | ||||
| Attachment: Route 759 Experimental Certificate for Delta Air Lines |
By this order, we make final, except to the extent noted, our tentative findings and conclusions in Order 98-12-33 and award the seven available frequencies for U.S.-Brazil services to Continental Airlines, Inc. for Houston-Sao Paulo service and select Delta Air Lines, Inc. as a backup carrier for New York-Sao Paulo service.
By: Patrick Murphy
1999 U.S.-Brazil Combination Service Case / Delta Air Lines, Inc.
| OST-98-3863 | September 23, 1999 | Petition of Delta Air Lines | 1999 US-Brazil Combination Service Case / Revoke Allocation of Frequencies to Continental Airlines |
| Attachment A: Continental Scheduled Service | |||
| Service List |
Continental has materially breached its service proposal commitment in the 1998 U.S.-Brazil Combination Service Case by failing to implement daily nonstop service between Houston and Sao Paulo. Continental’s commitment to daily Brazil service in the contested carrier-selection case formed the predicate on which the Department awarded Continental seven weekly frequencies, thus denying Delta the opportunity to provide daily nonstop service between New York (JFK) and Sao Paulo. According to Continental’s published schedules, Continental will start Houston-Sao Paulo service on November 30, 1999, but will offer nonstop service on only four days per week, in stark contrast to the daily service it proposed in the route case. Furthermore, Continental’s published schedules show four flights per week indefinitely.
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
1999 U.S.-Brazil Combination Service Case / Petition of Delta Air Lines, Inc.
| OST-98-3863 OST-99-6259 |
September 24, 1999 | Answer of Continental Airlines | Revoke Allocation of U.S.-Brazil Frequencies to Continental Airlines |
Continental has been selling its Houston-Sao Paulo service, including its peak-period daily service, since August 3, 1999, and thousands of passengers are already booked on Continental's Houston-Sao Paulo flights. Clearly, depriving passengers already booked on Continental's nonstop Houston service to benefit passengers who have multiple daily nonstop JFK-Sao Paulo options would disserve the public interest. The Department has recently announced a proceeding to consider whether Delta should receive seven frequencies to operate daily JFK-Sao Paulo service because of American's cancellation of its JFK-Rio de Janeiro service. (Order 99-7-1) In doing so, the Department said, "At the present time, however, economic conditions affecting the U.S.-Brazil market are such that we believe that it would be in the public interest to defer institution of that proceeding until market conditions provide a better gauge for a decision on a long-term allocation." (Order 99-7-1 at 3) Those same market conditions have affected Continental's service, and the same reasons which justified deferral of consideration of the American frequencies require that no precipitate action be taken with regard to Continental's frequencies.
Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2615
1998 U.S. Brazil Combination Service Case/Delta Air Lines, Inc.
| Order 98-5-27 OST-98-3863 OST-99-6259 |
October 1, 1999 | Answer of the City of Houston and the Greater Houston Partnership | Allocation of U.S.- Brazil Frequencies |
| Service List |
In conclusion, the fundamental factors that persuaded the Department to select Continental and Houston have not changed. Continental's international hub at Houston remains as strong as ever, and Continental's ability to add Brazil to its formidable track record of successfully developing new services to Latin America from its Houston hub has not changed. Moreover, the Greater Houston area's long-term ability to support nonstop service to Brazil has not changed.
Counsel: Zuckert Scoutt, David Heffernan, 202.298.8660
| Order 98-5-27 OST-98-3863 OST-99-6259 |
October 1, 1999 | Answer of the American Airlines | Allocation of U.S.- Brazil Frequencies |
| Service List |
Delta's petition to revoke Continental's U.S.-Brazil frequencies is compelling. Based on its service proposal to operate daily nonstop service between Houston and Sao Paulo, Continental was awarded seven U.S.-Brazil frequencies in March, and given a period of more than eight months -- until December 1, 1999 -- to institute service, rather than the standard 90day period allowed in most other carrier-selection cases. However, Continental has published schedules showing service just four days a week, and -- except for a brief period during the Christmas/New Year's peak season -- does not intend to operate daily service until June 2000, or some 15 months following the award. Moreover, Continental holds frequencies to operate daily nonstop service between Newark and Rio de Janeiro, but provides service six days a week. This means that Continental holds but does not use a total of four weekly frequencies in the frequency-restricted U.S.-Brazil market. In these circumstances, there is no basis for the Department to institute a proceeding that would take U.S.-Brazil frequencies away from American, which American has been fully utilizing, and continues to fully utilize, effective today, in the New York-Rio de Janeiro market for which they were initially awarded in 1996. The Department should instead promptly revoke Continental's Houston-Sao Paulo award; grant those seven frequencies to Delta to initiate service in the New York-Sao Paulo market; and dismiss the 1999 U.S.-Brazil Combination Service Case (OST-99-6284) as moot.
Counsel: American Airlines, Carl Nelson, 202.496.5647, carl_nelson@amrcorp.com
| Order 98-5-27 OST-98-3863 OST-99-6259 |
October 1, 1999 | Reply and Amendment No.1 of Delta | Allocation of U.S.- Brazil Frequencies |
| Service List |
Continental’s answer confirms that it has no intention of operating more than four weekly roundtrip flights for all but a few days during the 1999/2000 Winter Season. Consequently, Continental concluded that "Delta could have claimed that it is entitled to three weekly frequencies at the end of Continental’s dormancy period . . ." Delta agrees with Continental’s assessment, and urges the Department to immediately and permanently reallocate the three dormant frequencies to Delta for use to provide Atlanta-Brazil service.
Counsel: Shaw Pittman, Robert Cohn, 202.663.8060
1998 U.S.- Brazil Combination Service Case / Petition of Delta Air Lines
| OST-98-3863 OST-99-6259 |
October 13, 1999 | Answer of Continental Airlines to Amendment No. 1 to Petition of Delta Air Lines | Allocation of U.S.- Brazil Frequencies |
Counsel: Continental and Crowell Moring, Bruce Keiner, 202-624-2615
| OST-98-3863 OST-99-6259 |
October 13, 1999 | Motion for Leave to File and Reply of Delta Air Lines | Allocation of U.S.- Brazil Frequencies |
| Service List |
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
| OST-98-3863 OST-99-6259 |
October 13, 1999 | Consolidated Answer of United Air Lines and Motion for Leave to File | Allocation of U.S.- Brazil Frequencies |
| Service List |
Counsel: Kirkland Ellis, Jeffery Manley, 202.879.5161, jeffery_manley@kirkland.com
1999 and 1998 U.S.- Brazil Combination Service Case/Delta Air Lines, Inc.
| OST-99-6259 OST-98-3863 OST-99-6284 |
October 14, 1999 | Answer of Continental Airlines | 1999 U.S.- Brazil |
| Service List |
Counsel: Crowell Moring, Bruce Keiner, 202.624.2615
| OST-99-6284 | October 14, 1999 | Consolidated Answer of Delta Air Lines in Opposition to Applications and Petitions for Reconsideration | 1999 U.S.-Brazil |
| Service List |
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
| OST-98-3863 OST-99-6259 OST-99-6284 |
October 14, 1999 | Consolidated Answer of the City of Houston and the Greater Houston Partnership | 1999 U.S.- Brazil |
| Service List |
Counsel: Zuckert Scoutt, David Heffernan, 202.298.8660
| OST-98-3863 OST-99-6259 OST-99-6284 |
October 14, 1999 | Consolidated Answer of the City of Los Angeles | 1999 U.S.- Brazil |
| Service List |
Counsel: Los Angeles, Raymond Ilgunas, 310-646-5252
| OST-99-6259 OST-98-3863 OST-99-6284 |
October 14, 1999 | Consolidated Answer of United Air Lines | 1999 U.S.- Brazil |
| Service List |
Counsel: United and Kirkland Ellis, Jeffrey Manley, 202-879-5161, jeffrey_manley@kirkland.com
1998 U.S.-Brazil Combination Service Case / Petition of Delta Air Lines, Inc.
| OST-98-3863 OST-99-6259 |
November 2, 1999 | Motion for Leave to File and Amendment No. 2 to Petition of Delta Air Lines | 1998 US-Brazil Combination Service Case / Petition of Delta Air Lines |
| Attachment 1: Sao Paulo- Houston | |||
| Attachment 2: Rio de Janeiro- Newark | |||
| Service List |
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
1998 U.S.- Brazil Combination Service Case and Delta Air Lines, Inc.
| OST-98-3863 OST-99-6259 |
November 12, 1999 | Answer of Continental Airlines to Amendment No. 2 to Petition and Motion for Leave to File | U.S.- Brazil Frequencies to Continental |
| Service List |
Continental's Newark-Rio de Janeiro frequency is crucial to operating daily service during January and February, when Continental has already sold numerous seats on the seventh frequency, and Continental's ability to provide minimum essential U.S.-Brazil service over the long term. Under these circumstances, Continental should be permitted to continue operating seasonal daily nonstop New York/Newark-Rio de Janeiro service until demand increases for year-round daily nonstop service on the route. Continental's summer schedule has not been finally determined, and Continental should retain its seventh frequency to restore daily New York/Newark-Rio de Janeiro service in the summer schedule if demand warrants it at that time. Continental is the only U.S. airline with a proven commitment to providing New York/Newark-Rio de Janeiro nonstop service. Delta has never even proposed nonstop U.S.-Rio de Janeiro service. While United abandoned New York/Newark-Rio de Janeiro service and American moved its Rio de Janeiro frequencies from New York/Newark to Miami, Continental continued to serve New York/Newark-Rio de Janeiro. The Department should encourage and reward Continental's commitment to nonstop New York/Newark-Rio de Janeiro service, not penalize it and jeopardize Continental's ability to maintain minimum essential service between the U.S. and Brazil
Counsel: Crowell Moring, Bruce Keiner, 202.624.2500, rbkeiner@cromor.com
| OST-98-3863 OST-99-6259 |
November 12, 1999 | Answer of United Air Lines and Contingent Motion for Leave to File | U.S.- Brazil Frequencies to Continental |
| Service List |
United opposes any permanent reallocation to Delta of any of the four dormant Continental frequencies identified by Delta. A permanent disposition of the allocation of those frequencies must await the outcome of the proceeding in Docket OST-99-6284. In the meantime, United has no objection to the temporary allocation of the four dormant Continental frequencies to Delta on a pendente lite basis for operations between Atlanta and Sao Paulo. Any such temporary allocation should be subject to the conditions (1) that it will expire 60 days after a final order in Docket OST-99-6284; and (2) that the Department will not grant any preference to Delta in deciding the long-term disposition of these frequencies based upon Delta's services pursuant to such temporary allocation.
Counsel: Kirkland Ellis, Jeffery Manley, 202.879.5161, jeffery_manley@kirkland.com
1998 U.S.- Brazil Combination Service Case and Delta Air Lines, Inc.
| OST-98-3863 OST-99-6259 |
November 15, 1999 | Correction of Response to Second Amendment to Delta's Petition | U.S.- Brazil Frequencies to Continental |
| Service List |
Counsel: Crowell Moring, Thomas Newton Bolling, 202.624.2500
1998 U.S.-Brazil Combination Service Case / Petition of Delta Air Lines, Inc.
| OST-98-3863 OST-99-6259 |
November 19, 1999 | Motion for Leave to File and Consolidated Reply of Delta Air Lines | 1998 U.S.-Brazil Combination Service Case |
| Attachment 1: Delta Will Operate Large-Capacity MD-11 Aircraft on its Atlanta-Brazil Services |
Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060
| Order 99-12-27 OST-99-6259 OST-98-3863 OST-99-6284 |
Issued December 28, 1999 Served December 28, 1999 |
Order on Reconsideration and Modifying Scope
of Proceeding HTML - Includes Chronology of Pleadings |
U.S.- Brazil |
| Chronology of Pleadings |
We have decided not to revoke Continental's allocated frequencies for Houston-Sao Paulo authority or to stay Continental's Houston-Sao Paulo authority. We have also decided to deny the requests to place all seven of Continental's Houston-Sao Paulo frequencies into issue in the , 1999 Brazil Case. We are deferring on the question of whether three of these frequencies should in fact be placed into issue, pending receipt of clarifying information from Continental as discussed below. We will expand the scope of the 1999 Brazil Case to include allocation of one frequency allocated to Continental for Newark-Rio de Janeiro service, which we conclude is now dormant. We will authorize Continental, on a pendente lite basis, to use the one dormant Newark-Rio de Janeiro frequency, effective immediately. We will also grant Delta temporary authorization to use three of Continental's Houston-Sao Paulo frequencies, effective January 5, 2000, until further order of the Department.
By: Bradley Mims
1999 U.S.- Brazil Combination Service Case/ Application of Continental
| OST-99-6284 | January 13, 2000 | Answer of American to Submission of Continental | U.S.- Brazil |
| Service List |
Counsel: American, Carl Nelson, 202.496.5647, carl_nelson@amrcorp.com
| OST-99-6284 OST-00-6759 OST-99-6259 OST-98-3863 |
January 13, 2000 | Consolidated Answer of Delta to Submission of Continental | U.S.- Brazil |
| Service List |
Counsel: Shaw Pittman, Alexander Cohn, 202.663.8060
| OST-99-6284 | January 13, 2000 | Consolidated Answer of Newark Regional Business Partnership to Submission of Continental | U.S.- Brazil |
Counsel: Newark, Samuel Crane, 609.577.7510
| OST-99-6284 OST-00-6759 OST-00-6760 |
January 13, 2000 | Consolidated Answer of United to Submission of Continental | U.S.- Brazil |
| Service List |
Counsel: Kirkland Ellis, Jeffery Manley, 202.879.5161, jeffery_manley@kirkland.com
1999 U.S.- Brazil Combination Service Case/ Delta Air Lines, Inc. and Continental Airlines, Inc.
| OST-99-6284 OST-99-6259 OST-98-3863 OST-00-6759 |
January 20, 2000 | Motion for Leave to File and Surreply of Delta Air Lines | U.S.- Brazil |
| Corporate Communication: Delta to Launch Nonstop Atlanta- Rio de Janeiro Service | |||
| Service List |
Because the Department has decided not to place all seven frequencies at issue, and since neither United nor American have any proposal to utilize less than seven frequencies, those carriers' calls to consolidate the Continental default frequencies into the 1999 Case amount to nothing more than an effort to complicate and delay the proceeding. These tactics should not surprise the Department in light of the fact that American and United are major incumbents and would both face significant new competition from Delta on the important New York-Sao Paulo route (where Delta is the only U.S.-Brazil competitor prevented from offering service). American's pendente lite use of the 1999 Case frequencies gives it all the more reason to delay final resolution of the case. The delay tactics of American and United in the 1999 Case have now succeeded in forestalling competitive entry by Delta on the critical New York-Sao Paulo route by at least an entire traffic season. The Department should take immediate action to disentangle the unrelated Continental frequency matter from the core issue of the case, so that the 1999 Case can be promptly decided and Delta can begin to offer competitive New York-Brazil service early in the 1999 summer season.
Counsel: Shaw Pittman, Robert Cohn, 202.663.8060
1999 U.S.- Brazil Combination Service Case/ Continental Airlines, Inc.
| OST-99-6284 OST-00-6759 |
January 24, 2000 | Motion for Leave to File and Response of Continental Airlines to Surreply | U.S.- Brazil |
| Service List |
As demonstrated above, Delta's surreply contains inaccuracies which Continental must be permitted to correct on the record for this proceeding. This being so, Continental's motion for leave to file this response should be granted. For the foregoing reasons, Continental urges the Department to grant its motion for leave to file this response, to award Continental permanently all four of its frequencies placed at issue in this proceeding without further proceedings or, failing that, to award Continental four frequencies pendente lite to operate the New York/Newark and Houston-Brazil services it has proposed.
Counsel: Crowell Moring, Bruce Keiner, 202.624.2615, rbkeiner@cromor.com
| OST-99-6284 OST-00-6759 OST-99-6259 OST-98-3863 |
January 24, 2000 | Motion for Leave to File and Rejoinder of Delta Air Lines | U.S.- Brazil |
| Service List |
Delta cannot and will not accept a split award that places it at a severe competitive disadvantage against the daily serve patterns of United and every other major Brazil competitor serving New York-Sao Paulo. Furthermore, it would be a public interest travesty to require Delta to relinquish any of its three Atlanta-Rio de Janeiro frequencies to fund any more flights by United, whose permanent frequency allocation outnumbers Delta's by four-to-one. Continental's reversal of its position and sudden call to consolidate the frequencies into consideration in the 1999 Case is merely an effort to forestall the all but inevitable conclusion that those frequencies be permanently allocated to Delta.
Counsel: Shaw Pittman, Alexander Van der Bellen, 202.663.8060
January 2, 2004
Application of Continental Airlines for Renewal of Certificate Authority
Applies, pursuant to 49 U.S.C. § 41102 and Subpart B of the Department's Rules of Practice, for renewal of its Route 758 certificate authorizing Continental to provide scheduled air transportation of persons, property and mail between Houston and Sao Paulo, Brazil and to combine authority on this certificate with other certificate and exemption authority held by Continental. Continental asks that its Route 758 certificate authority be renewed for a period of no less than five years and that this application be processed by expedited non-hearing procedures under Subpart B of the Department's Rules of Practice.
Continental is currently providing daily nonstop service between Houston and Sao Paulo with continuing service to Rio de Janeiro offered pursuant to route integration authority contained in its certificates for Routes 739 and 758. Continental holds 14 Brazil frequencies; seven are used for Houston‑Sao Paulo‑Rio de Janeiro service and seven are used for New York/Newark Liberty‑Sao Paulo service which connects at Sao Paulo to offer New York‑Rio de Janeiro service.
Counsel: Continental and Crowell & Moring, Bruce Keiner, 202-624-2615
OST-98-3863 - US-Brazil Certificate
January 12, 2004
Re: Renewal of Certificate Renewal
Continental Airlines asks the Department to waive Part 377.10(c)(1) of its Special Regulations and continue the effectiveness of Continental's Houston‑Sao Paulo Route 758 certificate authority pending Department action on Continental's application for renewal. Due to an administrative error, Continental's Route 758 renewal application was inadvertently submitted fewer than 180 days prior to its expiration. Continental requests a waiver to ensure its ability to continue its operations if the Department does not act on Continental's application by March 29, 2004.
Counsel: Crowell & Moring, Bruce Keiner, 202-624-2500
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