Delta Air Lines, Inc.

Order 2005-2-10
OST-2004-19161 - Allocation of Seven Weekly US-Brazil Combination Frequencies (Atlanta-Rio de Janeiro)

Issued and Served February 16, 2005

Order to Show Cause

We have tentatively decided to grant Delta's application for allocation of seven weekly frequencies to provide combination service in the Atlanta‑Rio de Janeiro market (two from the unallocated pool and five of United's unused frequencies).

It is the Department's oft-stated and longstanding policy not to permit valuable operating rights to remain unused for an extended period, particularly when another carrier has firm plans to use them and the carrier holding the authority does not. By its own statements on the record before us, it is clear that United has had unused Brazil frequencies at least from March 2003 forward. United has not stated firm plans to use them. Delta has firm plans for Brazil service that would make use of some of those unused frequencies. Delta does not have unused Brazil frequencies of its own. While United opposes Delta's request for allocation of the frequencies on other than a temporary basis, we tentatively do not find, in the absence of evidence in the record of firm plans on United's part to resume service, that Delta should receive a time-limited allocation. 4 In these circumstances, we tentatively find that the public interest requires our reallocating five of United's unused Brazil frequencies to Delta. We also tentatively find that it is consistent with the public interest to award Delta two currently unallocated Brazil frequencies.

By: Karan Bhatia