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Continental Airlines, Inc. and Transbrasil S/A Linhas Aereas and Interbrasil Star

Continental, Transbrasil and Interbrasil Star will provide U. S./Canada - Brazil codeshare service in competition with the U.S.- Brazil codeshare service offered by American and TAM and United and VARIG.  The proposed Continental/Transbrasil codeshare will serve the public interest and should be approved expeditiously in accordance with precedents established by approvals of other U.S.-Brazil codeshare services.  Under the proposed Continental/ Transbrasil codeshare arrangement, Continental seeks authority to display the Transbrasil TR* designator code on Continental flights between (1) New York/Newark and Houston, on the one hand, and Sdo Paulo, on the other hand, and New York/Newark and Belo Horizonte via Rio de Janeiro; (2) between New York/Newark and Houston, on the one hand, and Austin, Baltimore, Boston, Calgary, Chicago, Cincinnati, Cleveland, Columbus (OH), Dallas/Fort Worth, Denver, Detroit, Honolulu, Indianapolis, Jacksonville, Las Vegas, Los Angeles, Memphis, Midland, Minneapolis/St. Paul, Nashville, New Orleans, Oklahoma City, Orlando, Philadelphia, Phoenix, Pittsburgh, Portland (OR), Raleigh/Durham, Salt Lake City, San Diego, San Francisco, San Jose, San Juan, Seattle, Toronto, Tucson, Tulsa, Vail, and Washington, on the other hand; (3) between Miami and Cleveland, Houston and New York/Newark; and (4) between Los Angeles and Honolulu and San Francisco.

Counsel:  Crowell Morning, Bruce Keiner, 202.624.2615 rbkeiner@cromor.com and Royal Daniel, 970.453.4900, daniel@danielaw.com 

Continental Airlines, Inc. and Transbrasil S/A Linhas Aereas and Interbrasil Star

Houston is a major international center for trade and commerce. For the second year running, IndustryWeek has honored Houston as its #2 World-Class Manufacturing City, recognizing Houston's long-standing importance in the energy industry as well as its growing significance in aerospace and other high-technology fields. As its economy has grown, Houston has developed a strong community of interest with South America in general, and with Brazil and Argentina in particular. Nine South American countries, including Brazil and Argentina, maintain consulates in Houston, which facilitate the City's expanding business and cultural ties with those countries. In addition, according to the Greater Houston Partnership's 2000/01 International Business Directory, 432 Houston companies trade with Brazil, 346 trade with Argentina, and more than 1,400 trade with the countries of South America as a whole. Fifty Houston companies have subsidiaries in Brazil, and 44 in Argentina. One example of these pioneering firms is the Enron Corporation, which operates Brazil's sixth largest electricity distributor, and which also is currently building a 480-megawaft, combined-cycle natural gas power plant and distribution system, worth $570 million, in the Brazilian city of Cuiab. In 2000, Brazil was Houston's largest air cargo market in South America. Brazil and Houston exchanged more than 2.03 million kilograms of goods, largely exports to Brazil. Houston also exchanged more than 1.17 million kilograms of air cargo with Argentina. Together, Brazil and Argentina account for 51.7% of Houston's air cargo trade with the region. In addition, in 2000 Continental restored daily service between Houston and Sao Paulo, laying the foundation for future growth in trade and tourism.

Counsel:  Zuckert Scoutt, Jol Silversmith, 202.298.8660, jasilversmith@zsrlaw.com 

Continental Airlines, Inc. and Transbrasil S/A Linhas Aereas and Interbrasil Star

The applicants do not specify whether the Canada-Brazil bilateral agreement permits code sharing between those two countries via the United States in conjunction with a U.S.-flag carrier or, if so, whether there are any limits on the permissible number and routings of carriers to be designated or the frequencies they may operate. Nonetheless, United does not oppose the applicants' request so long as United may be authorized to provide similar service in conjunction with its code-share partners, Varig and Air Canada, should it wish to do so. United therefore requests that the Department ascertain that the Canadian and Brazilian governments would authorize such service by United before it grants the applicants' request for such authority.

Given that the U.S.-Brazil bilateral agreement explicitly restricts the number of code-share-only points that each country may select, United requests that the Department not authorize the applicants to implement code­share services to the above points until the two governments have formally communicated their respective selection of those points to each other.

Counsel:  Wilmer Cutler, Jeffery Manley, 202.663.6670, jmanley@wilmer.com  

Continental Airlines, Inc. and Transbrasil S/A Linhas Aereas and Interbrasil Star

Continental Airlines, Inc., Transbrasil S/A Linhas Aéreas and Interbrasil Star withdraw their applications in these dockets for statements of authorization and exemption authority to provide U.S.-Brazil/Argentina codeshare service.

Counsel:  Royal Daniel for Transbrasil, 970-453-4900 / Crowell Moring, Bruce Keiner, 202-624-2500

Notices of Action Taken Dismissing Applications - Various Dockets

OST-1996-1417- American - Exemption Renewal- Miami-Paris
OST-1998-3419 - American - US-Japan Combination Services
OST-2003-14523 - American Airlines and Iberia - US-Spain Codeshare
OST-1996-1118 - Arrow Air - US-Uruguay
OST-1999-6587 - Continental - US-South Africa
OST-2000-7655 - Continental - US- Colombia Combination Service Proceeding
OST-2000-7186 - Continental - Houston- Cali, Colombia
OST-2000-7104 - Atlanta/New York- South America: U.S.- Belize; Atlanta, Georgia- Bogotá, Colombia
OST-1997-3218 - Delta - Certificate - Atlanta/New York-South America; US-Belize
OST-2004-19165 - Continental - US-Tripoli, Libya Codesharing with KLM
OST-2001-9953 - Continental - US- Brazil/Argentina Codeshare with Transbrasil
OST-1997-2708 - Delta - US-Brazil Codesharing with Transbrasil
OST-1997-2967 - Delta - US-Recife and Iguassu Falls, Brazil Codeshare with Transbrasil
OST-2002-12161 - Delta - United States-Algiers, Algeria Codeshare with Alitalia
OST-2004-19232 - Northwest - US-Tripoli Codeshare with KLM
OST-2000-7339 - US Airways - LaGuardia- Nassau, Bahamas
OST-2002-12481 - US Airways - Washington Reagan National - Nassau-Bahamas
OST-2002-13854 - US Airways - Boston-Nassau, Bahamas
OST-2001-9952 - Continental - US- Brazil/Argentina Codeshare with Transbrasil
OST-2001-9951 - Continental - US- Brazil/Argentina Codeshare with Transbrasil
OST-2003-16354 - TAMPA - Miami-Lima-Colombia All-Cargo

Issued April 19, 2005

Dismissing Applications - Various Dockets

By: Paul Gretch

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