Order 01-02-14

Order 01-2-14

U.S.- Brazil All-Cargo Charters

Order 01-2-14
Undocketed

Issued February 14, 2001
Served February 14, 2001

Final Order

U.S.- Brazil

We have decided to make final the procedures proposed in Order 2001-2-1 for distribution of the U.S.-Brazil all-cargo charters available for the balance of the charter year (March through June 2001). No party has opposed the need for special procedures or our decision to pro rate the number of charters available and to distribute them equitably among interested carriers. Rather, the commenters have sought certain modifications and clarification to the proposed procedures.

We are not persuaded that we should set aside two frequencies each month for emergency and ad hoc requests. Where charter rights are so limited as here, it is imperative that full, effective use be made of the available charter opportunities. While we would like to accommodate all contingencies as Express One and Emery suggest, there have been very few ad hoc requests to use the charter pool this charter year. At the same time, there has been a consistent and regular demand on the pan of certain carriers to use charters from the pool to support ongoing charter programs. Given the limited number of pool charters available and the specific circumstances before us, we are not persuaded that withholding flights from carriers with firm plans to use them for possible use by other carriers best serves the public interest in this case. That said, should requests for ad hoc charters be Filed, we are prepared to seek sympathetic consideration from Brazil for operation of such flights.

With respect to Atlas' request regarding the eligibility of UPS to apply for charters, it is our understanding that UPS is in the process of obtaining scheduled authority from the Brazilian Government, and expects this process to be completed by February 20, 2001. Rather than ruling now on UPS' eligibility, we will consider any request by UPS to use charters from the charter pool based on the circumstances present at that time.

Based on the above, the following procedures will apply for distribution of Brazil allcargo charters for the period March-June. We will make available a pro rata portion of the total charters still undistributed for each remaining month of the charter year. We will distribute the available flights each month by dividing the number of available flights equally by the number of eligible applicants to the extent that such allocations are equal to or fewer than requested, and distribute the remaining flights using a round-robin procedure on a first-come, first-served basis. Carriers awarded flights each month will be required to report the number of flights used no later than the tenth of the following month. Any flights returned will be available for the charters that can be applied for in the month of the return.

Because of the limited number of charters available for the remainder of the charter year, a carrier with an advance charter allocation will not be eligible to apply for additional charters under the procedures set forth in this order until it has used all of the charters in its advance allocation. In addition, those U.S. carriers holding scheduled combination or all-cargo service authority to serve Brazil will be excluded.

Eligible carriers can apply for up to ten charters for each calendar month. Charter applications will need to specify the number of flights requested; the points to be served; the type of aircraft to be used; the type of cargo; dates of the proposed flights; and will need to be accompanied by a copy of the signed charter contract for the flights proposed. Applications for charters above that nurnber will need to be accompanied by a request for waiver of the ten-charter limit and served on all carriers that have operated charters in the U.S.-Brazil market this charter year. Charter applications can be filed no earlier than two weeks in advance of the beginning of each calendar month.

By: Paul Gretch