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U.S.- Brazil Combination Frequencies

It is unfair and contrary to the public interest to subject Delta's current daily nonstop Atlanta-Rio de Janeiro service to an indefinite risk of forfeiture at the whim of competitors that have far more frequencies and are not now - and have not historically - fully used their U.S.-Brazil service rights. While Delta's temporary allocation of frequencies has allowed it to inject essential new competition into U.S.-Brazil services at a time when all other U.S. carriers have been retrenching, the continuing uncertainty surrounding the future of Delta's service creates serious competitive disadvantages that Delta cannot overcome without a permanent frequency award. For example, Delta's ability to compete for long term travel agency and consolidator contracts, corporate accounts, and the business of vacation tour packages to serve this important market will be handicapped so long as Delta's long term future service levels remain in such doubt.

Delta respectfully requests that the Department deny all requests for any further waiver of dormancy conditions affecting U.S.-Brazil frequencies, and grant Delta's request for an award of four permanent frequencies for Atlanta-Rio de Janeiro service.

Counsel:  Shaw Pittman, Robert Cohn, 202.663.8060, robert.cohn@shawpittman.com 

U.S.-Brazil Combination Service Frequencies; American Airlines, Inc. and Continental Airlines, Inc.

United, which holds no U.S.-Brazil frequencies that are subject to dormancy conditions, did not answer either Delta's request for extension of its temporary allocation or the requests of American and Continental for extensions of their dormancy waivers because none of those requests had any direct affect on United. Delta's subsequent request for a "permanent" reallocation of four frequencies, however, threatens to raise issues that could affect United as well as the other designated U.S.-Brazil carriers. American has, for example, urged that seven of United's unconditioned U.S.­Brazil frequencies be placed at issue in any proceeding involving Delta's request for a "permanent" reallocation and that American's eleven unused frequencies be exempted from that process.  The premise for American's unprecedented request seems to be that it had announced plans as of March 8, 2002 (the date of its Motion and Response in Docket OST-99-6284) for reuse of its eleven dormant frequencies. What American ignores, however, is that United has also implemented plans for reutilization of its seven temporarily suspended U.S.-Brazil frequencies. United has established October 31, 2002, as the date on which it will again use those frequencies for daily nonstop New York-Sao Paulo services.

Delta's original request in Docket OST-02-11627 for continuation of its temporary reallocation was, in effect, open-ended. That reallocation would continue for as long as there remained U.S.-Brazil frequencies that were not used by their original holder, and whenever the holder proposed to use them, it would be required to give 90­days' notice to Delta and DOT. Such a temporary allocation gives Delta sufficient flexibility to plan at least through the end of this year when Continental and American propose to reuse their dormant frequencies. Should it appear 90 days before that time that any of these frequencies will continue to be unused, the Department can then revisit the issue of whether to consider a permanent reallocation. Until that time, the Department should undertake no proceeding to "permanently" reallocate frequencies which are not yet restored to service due to the impact of the events of September 11.

American's own position is inconsistent with the inclusion of United's suspended frequencies. Thus, American urges that its own plans to reutilize its currently dormant frequencies should protect such frequencies from inclusion in a reallocation proceeding. However, this ignores the fact that United plans to reuse its seven frequencies later this year while American would not reuse all of its frequencies until next year, more than two months after United's restart date.

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

Delta Air Lines, Inc.

The four permanent U.S.-Brazil frequencies Delta is seeking should not be reallocated from American. American will resume daily nonstop New York-Rio de Janeiro service effective January 8, 2003. American is presently operating such service five days a week, and has applied for a dormancy waiver in OST­1999-6284 for two of the required frequencies until January 8, 2003.  If the Department entertains Delta's application, there are many other dormant U.S.-Brazil frequencies available to fund Delta's request, including four held by Continental Airlines, Inc. (Newark-Rio de Janeiro), and seven held by United Air Lines, Inc. While United's seven are not subject to an explicit 90-day dormancy condition, United's frequencies should be placed in issue in any reallocation proceeding, along with Continental's.

American also has two other dormant Brazil frequencies. American will use those two frequencies (which are so-called "grandfather" frequencies not subject to a 90-day dormancy condition) for Miami-Rio de Janeiro service, effective January 8, 2003. Accordingly, as of that date, American will be using all 49 of its U.S.-Brazil frequencies.

Counsel:  American, Carl Nelson, 202.496.5647, carl.nelson@aa.com 

Although neither Continental nor American objected to the continued award of four Brazil frequencies to Delta on a temporary basis so long as their own dormancy waivers were granted, Delta has opposed continuation of those waivers while seeking comparable waivers of its own elsewhere and asked for permanent allocation of four Brazil frequencies. Continental would not oppose the award of four permanent frequencies to Delta for continuation of its daily Atlanta-Rio de Janeiro service so long as Continental's application for continuation of its dormancy waiver for four Brazil frequencies is granted through December 31, 2002, and the four frequencies awarded to Delta are provided by transfers from American or United, the two U.S. airlines holding the most Brazil frequencies. Continental states as follows in support of its position.

American and United each hold more Brazil frequencies than either Continental or Delta and at least as many currently-unused frequencies as Continental. Moreover, despite significant new entry by Continental and Delta, American continues to dominate U.S.-Latin America traffic, with some 52% of the U.S.-flag enplanements, while United has steadily retrenched in Latin America. With international demand in Brazil dropping 5.2% in January 2002 compared to January 2001, the Federal Aviation Administration forecasting a 12% decrease in overall enplanements for 2002 compared to 2001, and the carriers' current and proposed Brazil schedules fluctuating widely, as their pleadings attest, this is no time to make long-term frequency allocations based on short-term startup criteria. Thus, if the Department is prepared to consider re-allocation of Brazil frequencies, it should wait until autumn rather than requiring carriers to outbid one another to retain their frequencies by forecasting flights to be operated later this year regardless of demand and economic conditions.

Counsel:  Continental and Crowell Moring, Bruce Keiner, 202.624.2615, rbkeiner@crowell.com 

There continues to be a significant number of dormant and unused U.S.-Brazil frequencies, for which other carriers have no immediate - or in some cases indefinite - service plans. In these circumstances, it is both unnecessary and unfair to subject the Georgia/Atlanta community to the continued risk of loss of this important service benefit.

By:  Georgia and Atlanta Parties, HollyNeth Anderson, 404.586.8462, handerson@macoc.com

U.S.- Brazil Combination Frequencies

The Department has already granted extraordinary relief well beyond the normal 90 day dormancy window, and no exceptional circumstances have been demonstrated that would warrant additional waivers for U.S.-Brazil services. Carriers are well along with recovering and expanding their domestic and international service schedules. The fact that American, United and Continental have not resumed service in the U.S. -Brazil market is merely reflective of their determination that better returns can be found elsewhere.

For the reasons explained by Delta, the constant shadow of doubt that is cast over Delta's ability to continue daily Atlanta-Rio de Janeiro service harms Delta in the marketplace every day. The Department should take immediate steps - as it said it would - to resolve these issues and to ensure that the maximum public benefits are derived from these important service opportunities.

Counsel:  Delta and Shaw Pittman, Robert Cohn, 202.663.8060

U.S.-Brazil Combination Service Frequencies; American Airlines, Inc. and Continental Airlines, Inc.

Order 2002-4-19 grants dormancy waiver extensions to Continental Airlines through December 31, 2002, and January 8, 2003, respectively, with respect to their U.S.-Brazil service frequency allocations. Also, granting the application of Delta Air Lines for a temporary, indefinite allocation of four weekly U.S.-Brazil service frequencies for continuation of its Atlanta-Rio de Janeiro services. Deferring action on the application of Delta for a permanent allocation of four weekly U.S.-Brazil service frequencies.

Against this background, we believe that it would best serve the public interest to provide Continental and American the additional dormancy waivers they seek. We do not find that it would be appropriate now, given the current economic climate in the U.S.-Brazil market, to make any decisions regarding permanent reallocations or back-up awards regarding U.S.-Brazil frequencies. Rather, we believe that the public interest would be best served here by deferring action on Delta's application for a permanent U.S.-Brazil frequency award. We may decide to reevaluate the situation at a later date, including consideration of Delta's permanent U.S.-Brazil frequency request, should it appear that U.S.-Brazil frequencies would continue to go unused.

While we have decided to grant the requests of Continental and American here, as in the public interest, based on the circumstances stated in the request, there should be no expectation that an additional request necessarily will be granted. Any future requests to extend the dormancy waiver for the frequencies at issue here will have to be considered in light of the specific arguments offered in support of the request and any comments that might be filed in response, and in the context of the circumstances present at that time.

By:  Read Van de Water

U.S.-Brazil Combination Frequencies

Delta Air Lines, Inc. hereby moves for immediate action on its pending application for four (4) permanent U.S.-Brazil frequencies for use on the Atlanta-Rio de Janeiro route. This will permit Delta to continue to offer daily nonstop service, and will remove the harmful cloud of uncertainty created by the present operation under a temporary frequency award. American Airlines has announced that it is returning seven frequencies to the unallocated pool. See, AA Notice dated June 21, 2002 (OST-1999-6284). Thus, there are now ample frequencies to fund Delta's request for a permanent frequency allocation -- and to secure the important public benefits of daily Atlanta-Rio de Janeiro service. The Department should grant Delta's motion and allocate the four requested frequencies immediately.

Counsel:  Delta and Shaw Pittman, Robert Cohn, 202.663.8060

Delta Air Lines, Inc.

• Allocation of four permanent U.S.-Brazil frequencies to provide the following service: Scheduled foreign air transportation of persons, property, and mail between Atlanta, Georgia, and Rio de Janeiro, Brazil.
• Immediate Department action on Delta's pending application for four permanent U.S.-Brazil frequencies for use on the Atlanta-Rio de Janeiro route.

Remarks: By Order 2002-4-19 the Department deferred action on Delta's application in Docket OST-2002-11711 for an allocation of four permanent U.S.-Brazil combination frequencies.' Answers to the application and Delta's response are cited in the order. On June 21, 2002, American gave the Department notice that it was returning seven frequencies; two effective immediately and five effective September 4, 2002. (See Docket OST-1999-6284.) On June 25, 2002, Delta filed a motion for immediate action on its pending application for the four permanent frequencies. No answers were filed to Delta's motion.

By:  Paul Gretch

Delta Air Lines, Inc.

Due to adverse economic conditions in the U.S.-Argentina and U.S.­Brazil marketplace, Delta was forced to suspend its daily Atlanta-Rio de Janeiro and Atlanta-Buenos Aires fights on December 1, 2002. These routes are an important component of Delta's Latin American network, and Delta intends to reinstate these services as soon as market conditions permit. Absent the waiver requested here, the frequencies will automatically revert to the Department on March 1, 2003, jeopardizing Delta's ability to plan and implement services in the future. In these circumstances, the requested dormancy waiver through December 31, 2003 is clearly in the public interest.

The Department recently considered and approved a similar application by Atlas Air for dormancy waiver applicable to its U.S.-Brazil all-cargo frequencies. See, Notice of Action Taken dated February 4, 2003, Docket OST-2002-11985. The Department determined that the depressed economic conditions in Brazil warranted relief from the dormancy condition. Those considerations apply with equal force to Delta's waiver request for the U.S.-South American service at issue here.  No other carrier will be adversely affected by Delta's limited waiver request. All current U.S. carrier Brazil and Argentina service needs are fully funded, and there a surplus of unused authority in each of these markets.

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

Delta Air Lines, Inc.

Delta asks for dormancy waivers through December 31, 2003, alleging "adverse economic conditions" but without stating any firm plans to resume service. In these circum­stances, the frequencies should be returned to the unallocated pool, where they will be available for other carriers to use them, free from any claim that the frequencies cannot be reassigned because they are tied up by an extended dormancy waiver. See, e.g., Denial of Dormancy Waiver to Continental (U.S.-Brazil and U.S.-Ecuador), Notice of Action Taken, OST­2002-11615, December 10, 2002 ("we find that the public interest would be best served by reassigning these frequencies to the unallocated pool of frequencies so that whenever Continental or another carrier has firm plans to use them, it may apply for the frequencies accordingly"); Denial of Dormancy Waiver to Continental Micronesia (U.S.-Japan), Notice of Action Taken, OST-2002-11614, September 30, 2002 (same); Denial of Dormancy Waiver to Delta (U.S.-Japan), Notice of Action Taken, OST-2002­11706, September 30, 2002 (same).

Counsel:  American, Carl Nelson, 202-496-5647, carl.nelson@aa.com

Delta Air Lines, Inc.

The Department has required Continental to return both Brazil2 and Argentina3 frequencies for potential reallocation, as well as requiring both Delta and Continental Micronesia to return unused U.S.-Japan frequencies.4 Although declining demand, skyrocketing fuel prices and uncertainties created by terrorist threats and potential warfare have all made operating additional frequencies difficult, if not impossible, the Department has chosen to require the return of dormant frequencies for potential reallocation when economic and operating conditions improve. Although Continental is unable to institute New York/Newark Liberty- Cali/Medellin service before the expiration of its dormancy waiver on April 1, 2003, Continental is not seeking an extension of its dormancy waiver in light of the Department's current dormancy policy. That policy should be applied to the Delta Brazil and Argentina frequencies, just as it has been applied to Continental frequencies, and Delta's request for a dormancy waiver through December 31, 2003, should be denied. If the Department changes its policy and grants Delta's request, however, the Department should also extend Continental's Colombia dormancy waiver for the same period of time.

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

Delta Air Lines, Inc.

Unlike Delta, Continental was awarded but never operated any of Argentina frequencies its was ultimately required to relinquish -- after admitting that it would not use them for a period of two years from the date of its award. Second, unlike the present climate, since 1998 -- during a period of relative industry prosperity and expansion of Latin America routes -- Continental chronically allowed several of its valuable Brazil frequencies to lie dormant. It was only after years of patience and liberal extensions for Continental's benefit that the Department finally reallocated those frequencies to another carrier. Third, and most important, unlike the Brazil and Argentina frequencies that Continental was required to relinquish, there is no carrier ready, willing and able to use them today. Indeed, Continental concedes that it would be virtually "impossible" for another carrier to launch a new service at this time.

American's assertion that this precedent is somehow "inapposite" because it relates to cargo frequencies rings hollow. The Department correctly determined that the depressed economic conditions in Brazil warrant relief from the dormancy condition. Those circumstances are every bit as true for passenger as cargo service. Indeed, because the costs, risks and burdens associated with scheduled passenger service are substantially greater than for cargo, the additional waiver period requested by Delta is fully in keeping with this recent Department precedent.

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

Delta Air Lines, Inc.

We find that grant of Delta's request, in the particular circumstances presented, is in the public interest. We note that the waiver denial cases cited in the objections involved situations where we had already granted at least one, and sometimes more than one, dormancy waiver extension, and where we had expressly advised the holder of the waiver that further extensions of the waiver might not be forthcoming but would have to be evaluated in the circumstances presented and based on the record then before us. This case is different. Delta has, until recently, been actively conducting operations in the markets involved, and has, until now, not sought a dormancy waiver for these services. Moreover, neither American, Continental or any other carrier expressed an interest in using the frequencies at issue here. Under these circumstances, and taking into account the prevailing market conditions, we find that the limited relief sought by the carrier is warranted.] However, we are putting Delta on notice, as we-have other carriers in similar circumstances, that there should be no expectation that an additional request will similarly be granted. As we have previously done, we reserve the right to reexamine whether grant of this waiver continues to be in the public interest should another carrier seek to use the frequencies at issue. Any future request to extend the dormancy waiver for the frequencies at issue here will have to be considered in light of the specific arguments offered and responses thereto.

Delta's waiver from the dormancy condition is effective through December 31, 2003, or until the date on which Delta begins service with each of these frequencies, whichever occurs earlier. As to any frequency with which Delta does not begin service by December 31, 2003, its frequency allocation with respect to that frequency expires automatically.

By: Paul Gretch

OST-99-6284 - 1999 US-Brazil Combination Service Proceeding
OST-02-11711 - U.S.- Brazil Combination Frequencies
OST-03-15021 - Waiver of the Dormancy Conditions on Limited-Entry Route Authority

February 17, 2004

Notice and Request for a Dormancy Waiver

While conditions are beginning to improve, demand for international air travel in general, and to Latin America in particular, remains relatively soft. Thus, for example, Delta and American have each recently announced plans to resume U.S. Latin American services -- Delta to Argentina, and American to Colombia -- but each carrier has required a further dormancy waiver to do so effectively.

Delta has a strong desire to resume usage of these seven US-Brazil frequencies as soon as economic conditions make it prudent for Delta to do so. In the long term, it is essential that Delta maintain the flexibility to expand its service using these frequencies as market conditions dictate to enable Delta to effectively compete against the much-larger incumbents, particularly American. Having access to current and effective frequencies allows Delta to proceed with route planning decisions, and grant of the requested waiver is the best way to ensure optimal, competitive utilization of previously awarded frequencies.' It is therefore in the public interest for the Department to continue to grant this relief.

Counsel: Shaw Pttman, Robert Cohn, 202-663-8060

OST-99-6284 - 1999 US-Brazil Combination Service Proceeding
OST-02-11711 - U.S.- Brazil Combination Frequencies
OST-03-15021 - Waiver of the Dormancy Conditions on Limited-Entry Route Authority

February 24, 2004

Re: Brazil Dormancy Waiver (Polling Results)

On February 17, 2004, Delta requested an extension of the dormancy waiver applicable to seven (7) of Delta's U.S.‑Brazil frequencies, through December 31, 2004, so that Delta can continue to work toward restoring its full pattern of U.S. Brazil service. Delta has conduced a poll and determined that there are no objections to this request by any U.S. carrier authorized to serve Brazil. Accordingly, Delta urges that the requested waiver be granted as soon as possible.

Counsel: Shaw Pittman, Alexander Van der Bellen, 202-663-8382

Filed February 17, 2004 | Issued February 24, 2004

Notice of Action Taken | Word

Dormancy Waiver for seven of Delta's U.S.-Brazil frequencies through December 31, 2004 for Atlanta-Rio de Janeiro services. Delta gives notice to the Department that it does not plan to commence Atlanta-Rio de Janeiro service by April 1, 2004, but requests a further dormancy waiver for seven (7) of its U.S.-Brazil frequencies through December 31, 2004, so that Delta can continue working on restoration of its full pattern of U.S.-Brazil service. Delta urges the Department to grant a waiver of the dormancy condition applicable to seven of its U.S.-Brazil frequencies from April 1, 2004 through December 31, 2004.

By: Paul Gretch

U.S. Passenger Air Carriers / Delta Air Lines, Inc.

OST-03-15021 - Waiver of the Dormancy Conditions on Limited-Entry Route Authority
OST-98-6284 and OST-02-11711 - Dormancy Wiaver Atanta-Brazil

May 27, 2004

Notice of Delta Air Lines of Intent to Utilize US-Brazil Frequencies and Request for Amendment to Conditions

Delta proposes to commence a second daily Atlanta-Sao Paulo flight on or about December 1, 2004. In order to fund the new service, Delta plans to resume use of seven (7) U.S.-Brazil frequencies already allocated to Delta that are subject to a dormancy waiver through December 31, 2004. Delta requests an amendment to the conditions of the subject frequencies (allocated for Rio de Janeiro service) to permit their use on the Atlanta-Sao Paulo route. There is currently a surplus of Brazil frequencies in the Department's unallocated pool, as well as additional unused frequencies held by long-term incumbents that are not subject to the Department's now-standard 90 day condition.

Market conditions have now improved sufficiently to support a second daily Atlanta­ Brazil service. However, demand for Sao Paulo service is stronger than for Rio de Janeiro. Consequently, a second daily Sao Palo flight is feasible, while Rio de Janeiro is not at this time. Because the Department awarded the seven frequencies at issue specifically for use in the Atlanta‑Rio de Janeiro market, Delta requires permission to utilize the frequencies for service to Sao Paolo.

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

U.S. Passenger Air Carriers / Delta Air Lines, Inc.

OST-03-15021 - Waiver of the Dormancy Conditions on Limited-Entry Route Authority
OST-98-6284 and OST-02-11711 - Dormancy Wiaver Atanta-Brazil

May 27, 2004

Notice of Delta Air Lines of Intent to Utilize US-Brazil Frequencies and Request for Amendment to Conditions

Delta proposes to commence a second daily Atlanta-Sao Paulo flight on or about December 1, 2004. In order to fund the new service, Delta plans to resume use of seven (7) U.S.-Brazil frequencies already allocated to Delta that are subject to a dormancy waiver through December 31, 2004. Delta requests an amendment to the conditions of the subject frequencies (allocated for Rio de Janeiro service) to permit their use on the Atlanta-Sao Paulo route. There is currently a surplus of Brazil frequencies in the Department's unallocated pool, as well as additional unused frequencies held by long-term incumbents that are not subject to the Department's now-standard 90 day condition.

Market conditions have now improved sufficiently to support a second daily Atlanta­ Brazil service. However, demand for Sao Paulo service is stronger than for Rio de Janeiro. Consequently, a second daily Sao Palo flight is feasible, while Rio de Janeiro is not at this time. Because the Department awarded the seven frequencies at issue specifically for use in the Atlanta‑Rio de Janeiro market, Delta requires permission to utilize the frequencies for service to Sao Paolo.

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

U.S. Passenger Air Carriers / Delta Air Lines, Inc.

OST-03-15021 - Waiver of the Dormancy Conditions on Limited-Entry Route Authority
OST-99-6284 and OST-02-11711 - Dormancy Wiaver Atanta-Brazil

May 28, 2004

Answer of American Airlines to Notice and Request of Delta Air Lines

American does not object to Delta's request, provided that other carriers holding Brazil frequencies are accorded flexibility to convert their own city-pair specific frequencies to other markets as conditions warrant. Last year, in OST-2003-15965, American applied for two Brazil frequencies to provide additional service between Miami arid Sao Paulo and between Miami and Rio de Janeiro. American requested that these frequencies be designated for combination service between points in the U.S. and points in Brazil in order to provide maximum operating flexibility.

In the interest of avoiding a delay in the Depart­ ment's decision, American submitted a reply withdrawing its request for country‑pair frequencies. The Department issued a Notice of Action Taken on August 14, 2003 limiting American's two new frequencies to specific city‑pairs, one for Miami‑Sao Paulo and the other for Miami‑Rio de Janeiro.

To afford carriers maximum operating flexibility and to reduce unnecessary administrative burdens, American urges the Department to respond to Delta's request by issuing a blanket order converting all Brazil combination frequencies now held by Delta, American, United Air Lines, Inc., and Continental Airlines, Inc. from city-pair specific frequencies (such as Atlanta-Rio de Janeiro) to country-pair frequencies (U.S.Brazil). Such an outcome would afford all carriers the same flexibility and would reduce unnecessary administrative burdens by eliminating the requirement that carriers must seek: prior approval whenever they wish to move their frequencies from one city-pair to another in order to respond to market conditions.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com

U.S. Passenger Air Carriers / Delta Air Lines, Inc.

OST-03-15021 - Waiver of the Dormancy Conditions on Limited-Entry Route Authority
OST-99-6284 - Allocation of U.S.- Brazil Frequencies
OST-02-11711 - Dormancy Waiver Atanta-Brazil

June 2, 2004

Answer of Continental Airlines

Continental has no objection to Delta's request for flexibility to use its Brazil frequencies on any of its U.S.-Brazil routes at its discretion so long as Continental is given the same flexibility to use its own Brazil frequencies on any of its Brazil routes. As American has suggested, the Department should remove city-pair restrictions on all U.S.-Brazil frequencies to provide all U.S. airlines serving Brazil with the same operating flexibility to meet market demand. Converting U.S. –Brazil frequencies from city-pair specific frequencies to country-pair frequencies will also relieve the carriers and the Department's staff of the unnecessary administrative burden of requiring authorization to move Brazil frequencies from one route to another and give all U.S. carriers serving Brazil the same opportunity to move frequencies as needed to optimize U.S.-Brazil service.

Counsel: Crowell & Moring, Bruce Keiner, Jr. 202-624-2615

U.S. Passenger Air Carriers / Delta Air Lines, Inc.

OST-03-15021 - Waiver of the Dormancy Conditions on Limited-Entry Route Authority
OST-99-6284 - Allocation of U.S.- Brazil Frequencies
OST-02-11711 - Dormancy Waiver Atanta-Brazil

June 3, 3004

Response of Delta Air Lines and Motion for Leave to File

Answers to Delta's application were filed by Continental and American. Each of those carriers states that it has "no objection to Delta's request . . ." to use the frequencies at issue for Sao Paulo service. However, American and Continental argue for additional flexibility with respect to their own frequencies, so as to allow frequencies allocated for specific city‑pair routes to be used in any U.S.‑Brazil market.

Delta has no objection in principle to this suggestion ‑ provided that it does not cause any delay in the issuance of a decision in this matter. The operating flexibility requested by Delta is exceedingly modest ‑ to serve either of the Brazil's two largest cities from Delta's primary Atlanta hub. The public interest benefits of both Rio de Janeiro and Sao Paulo service from the Atlanta gateway (with online connections to scores of U.S. cities) have already been fully evaluated and confirmed by the Department.

Delta would accept a city‑pair specific condition authorizing the use of the seven frequencies at issue for Atlanta‑Sao Paulo service, but believes that such a condition is undesirable and unnecessary. It would preclude Atlanta‑ Rio de Janeiro service (which the Department has already found to be in the public interest) without yet another notice proceeding.

Counsel: Shaw Pittman, Alexander Van der Bellen, 202-663-8060

U.S. Passenger Air Carriers / Delta Air Lines, Inc.

Order 04-06-25
OST-03-15021 - Waiver of the Dormancy Conditions on Limited-Entry Route Authority
OST-99-6284 - Allocation of U.S.- Brazil Frequencies
OST-02-11711 - Dormancy Waiver Atanta-Brazil

Issued and Served June 28, 2004

Order | Word

By this order, we grant, subject to conditions, the request of Delta Air Lines, Inc. for an amendment to conditions on its U.S.-Brazil frequency allocations in order to permit flexibility to use frequencies for Atlanta-Rio de Janeiro/Sao Paulo service. We also grant the other U.S. carriers designated for combination services in the U.S.-Brazil markets flexibility to use their allocated frequencies in markets where the carriers hold requisite underlying authority.

By: Susan McDermott

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