American Airlines, Inc.

OST-03-15965 - Permanent Allocation of Two Weekly US-Brazil Combination Frequencies

August 14, 2003

Application for Permanent Allocation of Two Weekly US-Brazil Combination Frequencies

There are seven unused U.S.-Brazil combination frequencies in the unallocated pool. In addition, Delta Air Lines, Inc. and United Air Lines, Inc. each hold seven unused U.S.-Brazil frequencies that are protected by Order 2003-4-18, April 23, 2003, granting a blanket dormancy waiver through April 1, 2004. Therefore, a total of 21 U.S.-Brazil combination frequencies are currently unused. American holds an allocation of 42 weekly U.S. -Brazil combination frequencies. With the two additional U.S.-Brazil frequencies American is seeking in this application, we will increase our Miami-Sao Paulo service from 17 to 18 times a week (two daily roundtrips plus a third service operating four times a week), and our Miami-Rio de Janeiro service from 11 to 12 times a week (one daily roundtrip plus a second service operating five times a week), effective December 15, 2003. It is well-established that when limited-entry rights are available, and a carrier has presented firm service plans, such rights should be granted forthwith. See, e.g. U.S. Russia Frequencies Order 97-9-12, September 10, 1997, pp. 2-3.

American's proposed service increases in the Miami-Sac Paulo and Miami-Rio de Janeiro markets are based on improving traffic performance as well as anticipated loads during the coming winter traffic season. Moreover, American is currently the only carrier offering U.S.-Rio de Janeiro nonstop service, and we are confident that our proposed increase in the Miami-Rio de Janeiro market is fully warranted.

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

August 20, 2003

OST-03-15965 - Permanent Allocation of Two Weekly US-Brazil Combination Frequencies

Answer of Continental Airlines

Although Continental' has no objection to the award of two U.S.-Brazil frequencies to American for its proposed Miami-Sao Paulo and Miami-Rio de Janeiro service, Continental does object to American's request that the additional frequencies "be designated for combination service between points in the U.S. and points in Brazil" to provide American with "maximum operating flexibility" (American application at 4) so long as Continental's own U.S.-Brazil frequencies are restricted to particular routes. American and United both already hold unrestricted U.S.-Brazil frequencies which provide them with significantly more operating flexibility than Continental has, and this disparity should not be increased by awarding American even more unrestricted frequencies.

For the foregoing reasons, Continental urges the Department to restrict one of American's additional frequencies to Miami-Sao Paulo service and to restrict the other additional frequency to Miami-Rio de Janeiro service. Alternatively, the Department could eliminate route restrictions applicable to Continental's U.S.-Brazil frequencies and award American two additional unrestricted frequencies.

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

OST-03-15965 - Permanent Allocation of Two Weekly US-Brazil Combination Frequencies

August 22, 2003

Answer of Delta Air Lines

The Department should either condition American's frequencies to the city-pair routes it is proposing to operate, or, preferably, remove the city-pair restrictions on Delta's frequencies to provide Delta with similar "operating flexibility." American already enjoys greater operating flexibility, because it holds far more frequencies -including unrestricted frequencies -- than Delta. American should not receive still more unrestricted frequencies when Delta has none. Accordingly, the Department should restrict American's additional frequencies to the specific routes proposed, or, in the alternative, eliminate the route restrictions applicable to Delta's U.S.-Brazil frequencies.

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

OST-03-15965 - Permanent Allocation of Two Weekly US-Brazil Combination Frequencies

September 2, 2003

Reply of American Airlines

Continental and Delta do not object to the permanent award of two frequencies to American, but urge that their use be restricted to the two city-pairs shown in American's service proposal. While we continue to believe that a non-specific award of U.S. -Brazil frequencies would be in the public interest, we are more interested in a prompt award than in arguing this issue. Accordingly, we ask the Department to grant American two additional Brazil frequencies on a permanent basis, with one limited to service between Miami and Sao Paulo, and the other limited to service between Miami and Rio de Janeiro.

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

OST-03-15965 - Permanent Allocation of Two Weekly US-Brazil Combination Frequencies

Filed August 14, 2003 | Issued September 3, 2003

Notice of Action Taken | Word

Scheduled combination service between Miami and Sao Paulo, and Miami and Rio de Janeiro. American requests that in order to facilitate maximum operating flexibility that the two frequencies be designated for combination service between points in the U.S. and points in Brazil.

Continental Airlines and Delta Air Lines filed answers stating that they do not oppose award of the two U.S.-Brazil frequencies to American, but do object to American’s request that the frequencies be designated for combination service between points in the U.S. and points in Brazil unless the route restrictions on their Brazil frequencies are also eliminated.

American filed a reply, stating that while it continues to believe that a non-specific award would be in the public interest, American would not argue the issue, and, therefore, American urges the Department to grant two additional Brazil frequencies on a permanent basis, with one limited to service between Miami and Sao Paulo, and the other limited to service between Miami and Rio de Janeiro.

By: Paul Gretch