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Updated: Wednesday, February 1, 2006 10:28 AM


OST-2005-21080 - Continental Airlines - Houston-Buenos Aires Exemption and Frequency Allocation


OST-2005-21949 - 2005 US-Argentina Combination Frequency Proceeding


Continental Airlines, Inc.

OST-2005-21080 - Exemption and Frequency Allocation - Houston-Buenos Aires

April 25, 2005

Application for an Exemption and Frequency Allocation

Applies for an exemption from 49 U.S.C. § 41101 and an allocation of seven weekly U.S. -Argentina frequencies to provide scheduled foreign air transportation of persons, property and mail on daily New York/Newark- Houston-Buenos Aires, Argentina flights beginning November 29 and to integrate this authority with Continental's other certificate and exemption authority.

United currently holds seven long-dormant U.S.-Argentina frequencies, and the Department's policy against allowing an airline to continue holding long-dormant frequencies when another carrier has firm plans to use them should be applied to permit service by a new entrant at a new gateway in the U.S.- Argentina marketplace. Continental urges the Department to act promptly to institute a proceeding for re-allocation of United's seven dormant frequencies to a carrier with firm plans to use them so Continental can secure foreign authority, make final operating plans and begin marketing its New York/Newark-Houston- Buenos Aires services well in advance of flight operations commencing in November.

Counsel: Crowell & Moring, Bruce Keiner, 202-624-2625, rbkeiner@crowell.com

OST-2005-21069 - Delta Air Lines' Application for New York-Buenos Aires


OST-2005-21080 - Continental - Exemption for Frequency Allocation - Houston-Buenos Aires
OST-2005-21069 - Delta - Exemption and Frequency Allocation - New York-Buenos Aires


May 6, 2005

Answer of the City of Houston and the Greater Houston Partnership

The Houston business community is an active participant in trade with Argentina, especially for goods and services related to the energy industry. In 2003 (the most recent year for which complete data is available) the air cargo trade between Houston and Argentina amounted to more than 793,700 kilograms with a value of more than $36 million, of which more than 97% was exports, with Argentina ranking as Houston's second‑largest airborne trade partner in South America. Seaborne trade was also extensive, ranking Argentina as Houston's fourth‑largest partner with a value of more than $645 million in 2003, of which more than 64% was exports. As shown in the Greater Houston Partnership's International Houston 2004/2005 International Business Directory 43 Houston companies maintain subsidiaries in Argentina, out of the more than 1,300 that trade with South America as a whole. Examples of the Houston companies that trade with Argentina are Key Energy Services, the world's largest land­ based well services company; Noble Energy, one of the world's largest independent exploration and production companies; and BMC Software, which specializes in providing inventory and system management solutions.

An award to Continental would be consistent with the decisional factors that have been set forth by the Department in prior proceedings. Continental would be a new entrant in the U.S.‑Argentina market, and would provide welcome competition in a market that in recent years has been unstable and in which other carriers, including Delta and United, have suspended or terminated services.

Counsel: Zuckert Scoutt, Rachel Trinder, 202-298-8660, rbtrinder@zsrlaw.com


May 6, 2005

United Air Lines Intent to File Consolidated Answer

Hereby notifies the Department that United intends to file a consolidated answer to the application of Delta Air Lines, Inc. for an exemption and frequency allocation (New York-Buenos Aires) filed in Docket OST-05-21069 and the application of Continental Airlines, Inc. for an exemption and frequency allocation (Houston-Buenos Aires) filed in Docket OST-05-21080. Counsel for Delta has concurred that United's consolidated answer will be filed on May 10, 2005, the date when answers to Continental's application are due, rather than today, May 6, 2005, the date when answers to Delta's application are due.

Counsel: Wilmer Cutler, Jeffrey Manley, 202-663-6670, jmanley@wilmerhale.com


OST-2005-21080 - Continental - Exemption for Frequency Allocation - Houston-Buenos Aires
OST-2005-21069 - Delta - Exemption and Frequency Allocation - New York-Buenos Aires


May 10, 2005

Answer of Delta Air Lines (Continental's Application in OST-2005-21080)

Delta Air Lines, Inc. hereby answers in opposition to the Application of Continental Air Lines, Inc. for an exemption and frequency allocation to provide Houston‑Buenos Aires service. Continental's frequency request is mutually exclusive to Delta's application for seven U.S.‑Argentina frequencies to restore competitive U.S. flag service at the New York (JFK) gateway, and the Department must conduct a carrier selection proceeding to evaluate the public interest merits of the competing applications.

Delta's New York‑Buenos Aires proposal would provide valuable service and competitive benefits, and is clearly consistent with the longstanding public interest use of the JFK frequencies at issue. Delta is prepared to further demonstrate the superiority of its JFK proposal in a carrier selection proceeding to be established by the Department. Delta urges the Department to promptly issue an Instituting Order, and to conduct the carrier selection proceedings on an expedited basis so that the successful applicant will have ample time for planning and implementation of service on December 1, 2005.

Counsel: Delta and Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com


Answer of The New Jersey Parties (Continental's Application in OST-2005-21080)

Awarding Continental authority to operate daily Newark/New York-Houston-Buenos Aires service will provide significant public benefits for U.S.-Argentina travelers in the Newark/New York area and introduce a new network competitor into the still-restricted U.S.-Argentina market. One-stop service between Newark Liberty International and Buenos Aires via Houston is far more important than adding yet another carrier to duplicate nonstop JFK-Buenos Aires service offered by both American and Aerolineas Argentinas at JFK. One-stop Continental service through its Newark Liberty International Airport hub will provide convenient Argentina service for passengers and shippers throughout northeastern New Jersey and allow Continental to begin developing the Newark Liberty International Airport-Argentina market. Despite the potential availability of only seven Argentina frequencies, Continental's development of the Newark/New York-Buenos Aires market via Houston presents an excellent opportunity to introduce Buenos Aires service at Newark Liberty International Airport, add a new U.S.-flag competitor to the U.S.-Argentina market, and open a new Argentina gateway.

By: Regional Business Partnership, Chip Hallock


May 10, 2005

Consolidated Answer of United Air Lines

United acquired the seven frequencies sought by Delta and Continental from Pan American World Airways in a route transfer transaction approved by the Department. Order 92-7-9. United has a long history of service to Argentina, having served the U.S.-Argentina market for nearly 15 years. United fully utilized its 21 Argentina frequencies until after September 11, 2001, when it was forced to reduce some of its international service, including some of its Argentina service.

Delta's and Continental's commitments to Argentina are more questionable. Like United, Delta reduced service to Argentina in the recent past. Even though Delta did not commence its first service to Argentina until April 2001, it suspended that service a short time later in December 2002. See Application of Delta for a Dormancy Waiver, dated February 10, 2003 (Docket OST-99-6210). The frequencies sat unused for two years, until Delta re-instituted the service in December 2004. See Notice of Delta of Intent to Resume Service and Request for an Interim Dormancy Waiver, dated January 27, 2004 (Docket OST-99-6210). Continental has never served Argentina, even though it was awarded seven frequencies for Houston-Buenos Aires service in January of 2001. See Order 2001-1-14. The Department withdrew the frequencies approximately six months later after Continental failed to inaugurate service. See Order 2001-7-12. Unlike Delta's frequencies or those forfeited by Continental, United's Argentina frequencies are permanent and not subject to any dormancy condition, as recognized by the Department. See Order 2002-2-2, at 6.

Counsel: Wilmer Cutler, Jeffrey Manley, 202-663-6670, jmanley@wilmerhale.com


OST-2005-21080 - Exemption and Frequency Allocation - Houston-Buenos Aires

May 18, 2005

Reply of Continental Airlines

Continental's' application for authority to offer daily New York/Newark­ Houston‑Buenos Aires flights starting in November has received strong support from the Houston and New Jersey Parties. Despite United's longstanding failure to use the seven frequencies at issue and the obvious public benefits of adding a new competitor at a new gateway for Argentina service, United objects to the permanent re‑allocation of seven frequencies to Continental, and Delta opposes Continental's New York/Newark‑Houston‑Buenos Aires application because it is mutually exclusive with Delta's JFK‑Buenos Aires application.

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


OST-2005-21080 - Exemption for Frequency Allocation - Houston-Buenos Aires

June 15, 2005


2005 US-Argentina Combination Frequency Proceeding

Order 2005-7-23
OST-2005-21949
OST-2005-21080 - Continental Airlines - Houston-Buenos Aires Exemption and Frequency Allocation
OST-2005-21069 - Delta Air Lines - New York-Buenos Aires Exemption and Frequency Allocation

Issued and Served July 26, 2005

Order Instituting Proceeding | Word

We have decided to establish this proceeding to reallocate on an indefinite basis seven of United's unused weekly frequencies for U.S.-Argentina combination air transportation services. It has been the Department's longstanding policy not to permit valuable operating rights to remain unused for an extended period of time, particularly when another carrier has firm plans to use them and the carrier holding the authority does not. United has had unused U.S.-Argentina frequencies at least since September 2001, and has presented no firm plans to use the frequencies in the near future. In contrast, both Delta and Continental have proposed to use the seven subject frequencies with daily nonstop service beginning as early as late November 2005. Thus, given the circumstances presented, we find that reallocation of seven of United's unused U.S.Argentina frequencies is consistent with the public interest.

We are establishing the following procedural schedule for other submissions in this case:

  • Petitions for Reconsideration: (August 1, 2005)
  • Answers to Petitions: (August 4, 2005)
  • Incumbent Carrier Information Responses:  (August 2, 2005)
  • Amendments/Supplements to Already-Filed Applications: (August 9, 2005)
  • Answers to amendments/supplements:  (August 16, 2005)
  • Replies to answers: (August 23, 2005)

By: Karan Bhatia


OST-2005-21069 - Delta Air Lines - New York-Buenos Aires Exemption and Frequency Allocation
OST-2005-21080 - Continental Airlines - Houston-Buenos Aires Exemption and Frequency Allocation

Issued and Served August 3, 2005

Notice Granting Access to Documents | Word

Notice of U.S. DOT/OST reqarding the 2005 U.S.-Argentina Combination Frequency Proceeding granting access to incumbent carrier information responses to counsel for interested parties and to outside independent experts providing services to a party, who file appropriate affidavits with the Department in advance..

By: Karan Bhatia


August 25, 2005

Support for New Gateway Service to Argentina

Correspondences of Multiple Submitters urging the Department to allow Continental to provide new competition and new gateway service to Argentina.


Support for New Gateway Service to Argentina

Correspondences of Multiple Submitters urging the Department to allow Continental to provide new competition and new gateway service to Argentina.


Support for New Gateway Service to Argentina

Correspondences of Multiple Submitters urging the Department to allow Continental to provide new competition and new gateway service to Argentina.


Support for New Gateway Service to Argentina

Correspondences of Multiple Submitters urging the Department to allow Continental to provide new competition and new gateway service to Argentina.


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