Delta Air Lines, Inc.

OST-2008-0227 - Exemption and Frequencies - US-Brazil

Application for Exemption and Frequencies - Bookmarked

Hereby applies for an exemption authorizing Delta to operate scheduled foreign air transportation of persons, property and mail (i) between any point(s) in the United States on the one hand, and Manaus, Fortaleza, and Belo Horizonte, Brazil on the other. Delta asks that this authority remain in effect for at least two years or until ninety days after final Department action granting a Delta application for certificate authority with respect to these routes, whichever occurs earlier. 

Delta further requests 15 of the 21 frequencies which have become available for allocation immediately to U.S. carriers as set forth in the Notice.' Delta intends to use these frequencies for new service to Brazil from its Atlanta hub as follows: 

• 7 frequencies for daily service between Atlanta and Manaus.
• 4 frequencies for 4 flights per week between Atlanta and Fortaleza.

Delta plans to inaugurate daily year round nonstop Atlanta-Manaus service on our about December 22, 2008, or within 90 days of a final order in any competitive carrier selection proceeding to allocate these frequencies (whichever is later). Delta will use 757-200ER aircraft configured with 158 coach class and 16 business class passenger seats.

Delta plans to inaugurate 4 nonstop flights per week between Atlanta and Fortaleza on our about December 18, 2008, or within 90 days of a final order in any competitive carrier selection proceeding to allocate these frequencies. These flights will be operated on a year round basis, using 757-200ER aircraft currently in Delta's fleet, configured with 158 coach class and 16 business class passenger seats.

Counsel: Delta, Scott McClain, 404-773-6514

July 29, 2008

Amendment to Application

Delta amends its application to request an exemption authorizing it to operate service between any point(s) in the United States on the one hand, and Manaus, Fortaleza, Belo Horizonte, and Recife' on the other. Delta amends its request for a frequency allocation to reduce the number of frequencies requested from 15 to 11. Delta initially plans to use 7 of these weekly frequencies to offer daily service between Atlanta and Manaus as set forth in its original and to use the remaining 4 frequencies for Atlanta-Recife-Fortaleza round robin service four times per week.

Counsel: Delta, Scott McClain, 404-773-6514

OST-2008-0229 - Allocation of 11 Weekly Combination Frequencies (US-Brazil)
OST-2008-0227 - Exemption and Frequencies - US-Brazil

July 29, 2008

Joint Motion for Immediate Allocation of Frequencies

The United States and Brazil recently agreed to a phased expansion of frequencies, including 21 that are immediately available. See the Department's Notice inviting applications, July 7, 2008. American and Delta are the only applicants for the 2008 frequencies

Because this is not a contested matter requiring a comparative carrier-selection proceeding, American and Delta request that the frequency awards be non-city-pair specific (that is, from any point in the U.S. to any point in Brazil eligable for 2008 sevice as described footnote 1 of the Department's Notice). Such flexibility is consistent with Order 2004-6-25, June 28, 2004, which eliminated all city-pair conditions on then-existing U.S.-Brazil frequency allocations, and should be accorded here as well.

Counsel: American, Carl Nelson, 202-496-5647 and Delta, Scott McClain, 404-773-6514

OST-2008-0227 - Exemption and Frequencies - US-Brazil
OST-2008-0229 - Allocation of 11 Weekly Combination Frequencies (US-Brazil)

Filed July 16, 2008 | Amended July 29, 2008 | Issued August 8, 2008

Notice of Action Taken | Word

Delta and American each request weekly combination frequencies to serve the U.S.-Brazil market, as follows:

Docket OST-2008-0227: Delta requests a total of 11 weekly frequencies to be used for combination services between any point(s) in the United States and any point(s) in Brazil, consistent with the Department’s July 7 Notice.

Delta states that it will use the 11 frequencies as follows: daily round-trip service in the Atlanta-Manaus market, and four times weekly round robin service on the routing Atlanta-Recife-Fortaleza-Atlanta. Delta states that it requests the flexibility to adjust its schedules and use all 11 weekly frequencies to provide service between any point(s) in the United States, on the one hand, and Manaus, Fortaleza, Belo Horizonte, and/or Recife, on the other, as market conditions dictate.

Docket OST-2008-0229: American requests a total of 10 weekly frequencies to be used for combination service between any point(s) in the United States and any point(s) in Brazil, consistent with the Department’s July 7 Notice.

American states that it will use the 10 frequencies as follows: daily round robin service on the routing Miami-San Salvador-Recife-Miami, and three times weekly round-trip service in the Miami-Belo Horizonte market.

American holds the requisite authority to provide the services requested here (see Notice of Action Taken dated March 16, 2006, Docket OST-1996-1353, and timely renewal application filed January 3, 2008).

On July 29, 2008, Delta and American filed a joint motion requesting the immediate grant of their respective applications, as amended, stating that Delta and American are the only applicants seeking the 2008 combination frequencies newly available under the 2008 Agreement. The carriers request that the frequency awards be noncity-pair specific, from any point in the United States to any point in Brazil eligible for the subject 2008 service.

In light of the fact that no party opposed the carriers’ July 16 applications (seeking allocations for a greater number of frequencies than those requested in the carriers’ July 29 amended applications), and in the interest of ensuring prompt use of the valuable authority that is immediately available, we are granting the joint motion and taking action here without awaiting expiration of the 15-day answer period for the amended applications.

By: Paul Gretch

September 2, 2008

Re: Comments of Mark Herzberg

Delta Air Line’s award of seven frequencies to fly non-stop between Atlanta and Manaus must be made tentative subject to replies and objections. When Delta originally applied to serve the Atlanta-Manaus market, Delta claimed that service would be inaugurated with a 757-200ER aircraft. However, since then, Delta has announced that service will launch with a 737-700.

While it is true that the frequency allocations given to Delta do not require a particular aircraft to be used on the service, it is also true that Delta played games with the public and the Department of Transportation in submitting an application which was not in good faith. This is the third time in the past twelve months in which Delta has submitted and been awarded an application by the Department of Transportation, only to squander the award to the detriment of the traveling public. See OST-2007-0006 (awarding Delta Air Lines seven frequencies for New York City-Bogotá which must be inaugurated August 19th. Delta has yet to start this route); see also OST-2007-28567 (awarding Delta seven U.S.-China frequencies for Atlanta-Shanghai; only to have Delta promptly request to make two of those frequencies seasonally dormant).

It is possible that other airlines, including American Airlines and Spirit Airlines, would have proceeded with their requests for U.S.-Brazil rights differently if Delta had submitted their application in good faith and stated their intention to utilize the much smaller Boeing 737-700 on this route. Those airlines – and others – must be given the opportunity to reassess Delta’s application given Delta’s choice of a significantly smaller aircraft. The Department of Transportation has absolutely no choice but to make Delta’s award of seven of eleven new U.S.-Brazil frequencies tentative on further objections from other airlines and the traveling public. Delta cannot continue to submit applications to the Department of Transportation applications and set a poor precedent. Subject to no objections during the appropriate period for replies, Delta’s seven Atlanta-Manaus frequencies can then once again become final.

By: Mark Herzberg