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OST-1996-2016 - 1997 U.S.-Brazil Combination Service Proceeding

Order 97-4-13
OST-96-2016

Issued April 8, 1997 | Served April 11, 1997

Final Order

By this order, we make final our tentative decision in Order 97-3-8 and (a) grant Continental
Airlines, Inc., and Delta Air Lines, Inc., certificate authority to provide scheduled combination
services in the U.S.-Brazil market, and (b) allocate Continental 14 weekly frequencies for its
services and Delta 7 weekly frequencies.

By: Patrick Murphy

1997 Brazil Combination Service / Delta Air Lines, Inc. (Modify, Suspend or Revoke Certificate Authority Authorizing Continental Airlines to Provide Newark-Rio de Janeiro Foreign Air Transportation)

OST-97-2016 | OST-97-2680 | July 3, 1997

Petition of Delta Air Lines

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Having prevailed in the contested DOT carrier-selection proceeding, Continental now plans to abandon the service that it had promised to New York/Newark-Rio de Janeiro passengers. Continental's actual published schedules for Newark-Rio de Janeiro materially differ from the schedules proposed by Continental in the route case and on which the Department premised its award. Instead of utilizing two aircraft to serve Newark-Rio de Janeiro, with traditional prime-time evening departures in both directions, Continental will use only one airplane. With only one airplane, Continental is incapable of evening departures in both directions, forcing it to operate a southbound departure from Newark in the morning, a departure time which long-haul travelers to South America do not prefer. Thus, Continental's actual schedules provide a Newark southbound departure at 9:45 am instead of 9:55 p.m.

DL-1 | DL-2 | DL-3 | DL-4 | Service List

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

1997 U.S.-Brazil Combination Service Proceeding / Petition of Delta Air Lines

OST-97-2016 | OST-97-2680 | July 9, 1997

Answer of Continental Airlines

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In reviewing its options for Brazil service, Continental concluded that an innovative daytime departure from Newark to Rio de Janeiro would offer an important service alternative not otherwise available to passengers in the Newark/New York area. Throughout this proceeding, Delta has insisted that Newark/New York passengers should receive only service which is identical to the service they already receive at JFK, but Continental will be operating an innovative service both by serving Newark (which has no Brazil service today) and offering a daylight nonstop Newark-Rio de Janeiro service. The fact that all other carriers serving the Newark/New York-Rio de Janeiro market offer service only at night demonstrates how innovative continentals proposal is, not that Continental should be required to provide the same service other carriers offer. Although Continental's daylight service from Newark to Rio de Janeiro has appeared in reservations computers since April 24, Delta waited over two months -- long after Continental had begun selling the services and a mere week before Continental's first Brazil flight -- before complaining. The Department should dismiss Delta's petition promptly to eliminate the impediment to Continental's marketing created by Delta and to re-assure those already holding tickets that Continental will be able to provide the services they have purchased.

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

U.S.-Brazil Combination Service Proceeding / Delta Air Lines, Inc. (Modify, Suspend or Revoke Certificate Authority for Continental Airlines)

OST-96-2016 | OST-97-2680 | July 15, 1997

Joint Answer of Regional Business Partnership (Newark) and New Jersey Department of Economic Development

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Delta cites no precedent for the extraordinary relief it seeks, and the Newark/New Jersey Parties are aware of none. Continental's July 10 commencement of Newark-Sao Paulo/Rio de Janeiro service satisfied the startup condition in the Brazil authority awarded by the Department, and any unused frequencies would not become dormant until 90 days from the July 10 commencement date. There is no legal basis for the Department to take route authority away from Continental while it is serving the market for which it holds such authority. The Department will have ample opportunity to consider allocation of Brazil frequencies when Continental and Delta apply to renew their Brazil frequencies.

By: Samuel Crane, 201-242-6237

1997 U.S.-Brazil Combination Service Case / Delta Air Lines, Inc. (Petition of)

OST-97-2016 | OST-97-2680 | July 18, 1997

Motion for Leave to File and Reply of Delta Air Lines

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• Continental does not address, and simply ignores the fact that it proposed one service offering to the Department in the route case but intended to operate an entirely different service of lesser quantity and quality.
• Continental does not dispute that it proposed in the route case to operate Newark-Rio de Janeiro service using two DC-10-30 aircraft.
• Continental does not dispute that it proposed in the route case to operate prime time evening departures from Newark and from Rio de Janeiro.
• Continental does not dispute that it will operate a vastly different service than the one it proposed in the route case involving only one aircraft and a morning off-peak departure from Newark.
• Continental does not dispute that at least 17 cities for which Continental forecast traffic to Rio de Janeiro will not receive effective connections.
• Continental does not dispute the fact that it failed to implement the second traunch of seven weekly frequencies within ninety days of the effective date of its certificate.
• Thus, Continental does not dispute the salient facts that demonstrate that it has materially defaulted on its route case service proposal.

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

1997 U.S.-Brazil Combination Service Proceeding / Petition of Delta Air Lines

OST-96-2016 | OST-97-2680 | July 29, 1997

Surreply of Continental Airlines and Motion for Leave to File

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Continental is constrained to respond to Delta's unauthorized reply although Delta has shown no good cause for accepting its outlandish reply or any basis for revoking the Newark-Rio de Janeiro frequencies awarded to Continental because the Department found its Newark-Rio de Janeiro proposal provided far more public benefits than Delta's proposed JFK-Sao Paulo service. The Department should deny Delta's meritless petition immediately so Continental can continue its Newark-Brazil service free of the regulatory cloud created by Delta's interference and the public can enjoy the full benefits of Continental's innovative daylight service from Newark to Rio de Janeiro. Delta's "ludicrous and illegal" petition for modification, suspension or revocation of Continental's Newark-Rio de Janeiro frequencies is truly a case of the pot calling the kettle black. Delta's service proposal in the Brazil case was a moving target.

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

US-Brazil Combination Service Proceeding / Petition of Delta Air Lines, Inc.

Order 97-9-2 | OST-96-2016 | OST-97-2680 | Issued September 3, 1997 | Served September 9, 1997

Order

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By this order, we deny the petition of Delta Air Lines, Inc., requesting that we (a) revoke Continental Airlines, Inc.'s Newark-Rio de Janeiro certificate authority and (b) activate Delta's backup certificate for service between New York arid Sao Paulo and Rio de Janeiro, Brazil.

By: Charles Hunnicutt

U.S.- Brazil Combination Service Proceeding/ Continental Airlines, Inc.

Continental is currently offering daily nonstop service between New York/Newark and Sao Paulo with connecting service offered to Rio de Janeiro passengers at Sao Paulo. Continental’s nonstop New York/Newark-Rio de Janeiro flights have been suspended temporarily as a result of the tragic events of September 11 and the resulting traffic decline.

Counsel:  Crowell Morning, Bruce Keiner, 202.624.2500, rbkeiner@crowell.com 

U.S.- Brazil Combination Service Proceeding; Continental Airlines, Inc.

Letter of Continental Airlines asking the Department to waive Part 377.10(c)(1) of its Special Regulations and continue the effectiveness of Continental's New York/Newark-Sao Paulo/Rio de Janeiro Route 739 certificate authority pending Department action on Continental's application for renewal.

Counsel:  Crowell Morning, Bruce Keiner, 202.624.2500, rbkeiner@crowell.com

Arrow Air, Inc.; Continental Airlines, Inc.; Delta Air Lines, Inc.; Federal Express Corporation; Northwest Airlines, Inc.; Polar Air Cargo, Inc. and United Parcel Service

By:  Read Van de Water

OST-1996-2016 - US-Brazil Combination Service Proceeding

January 3, 2007

Application of Continental Airlines for Renewal of Certificate Authority

Continental applies, pursuant to 49 U.S.C. § 41102 and Subpart B of the Department's Rules of Practice, for renewal of its Route 739 certificate authorizing Continental to provide scheduled air transportation of persons, property and mail between Newark and the coterminal points Sao Paulo and Rio de Janeiro, Brazil. Continental asks that its Route 645 certificate authority be renewed for a period of no less than five years and that this application be processed by expedited nonhearing procedures.

Since Continental has been awarded a blanket route integration certificate by Order 2006-1-1, it does not require renewal of its authority to combine services on Route 645 with other Continental services authorized by certificate and exemption.

Continental currently operates daily nonstop B-767 service between New York/Newark and Sao Paulo with connecting service offered to Rio de Janeiro passengers at Sao Paulo.

Counsel: Crowell & Moring, Bruce Keiner, 202-624-2615, rbkeiner@crowell.com

OST-1996-2016 - Certificate of Public Convenience and Necessity for Route 740 - Atlanta-Brazil

January 18, 2007

Application for Renewal of a Certificate of Public Convenience and Necessity

Delta hereby applies for renewal of its certificate authority to engage in scheduled combination service between Atlanta, on the one hand, and Sao Paulo and Rio de Janeiro, on the other hand, as authorized by Route 740. This authority was last renewed by Order 2002-7-31, and is set to expire on July 18, 2007. Delta requests renewal for a period of at least five years

Pursuant to Route 740 and route integration authority, Delta provides nonstop service to Brazil from its international gateways at Atlanta and New York (JFK) using Boeing 767-300ER equipment.

Docket OST-1997-2338 and Order 2006-1-1

Counsel: Delta and Hogan & Hartson, Robert Cohn, 202-637-4999/5659

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