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Waiver of Dormancy Conditions on Limited Entry Route Authority; Delta Air Lines, Inc., United Air Lines, Inc., American Airlines, Inc., Continental Air Lines, Inc., Northwest Airlines, Inc., US Airways, Inc. and U.S.- Brazil Frequencies

We have decided to grant the captioned carriers temporary blanket relief from the dormancy conditions on their limited-entry route authorities, subject to certain conditions, described below. We will also grant such relief to all other U.S. carriers holding limited-entry international authority that is subject to our standard dormancy conditions. As the carriers have noted in their applications and other responsive pleadings, airline services have been in a temporary period of adjustment since the events of September 11. Given these circumstances, we find that temporary blanket relief from the dormancy conditions is warranted and in the public interest, and will serve to afford the carriers needed flexibility to resume their international services on a phased-in basis, without risk that they will lose their route awards for nonuse. All of the parties filing applications and comments support the award of temporary relief.

At the same time, we recognize the value of limited-entry route awards and the importance of ensuring that services in restricted markets are available to consumers to the full extent possible. Taking these factors into consideration, we have decided to grant carriers a waiver of the dormancy conditions through March 31, 2002, i. e., through the 2001/2002 -winter traffic season. Under the terms of this waiver, any limited-entry authorities that have not been used for the applicable dormancy period prior to April 1, 2002, will be deemed dormant as of that date. We will also require all U.S. carriers to notify the Department, in writing, no later than February 15, 2002, of the limited-entry route rights that they will not be using beginning April 1.

While the applicants in this case have offered a somewhat different proposal for the duration of the dormancy relief and attendant conditions, we believe that our decision here best balances our objectives to provide the carriers needed flexibility in resuming their international airline services, while at the same time encouraging the use of valuable route rights to the benefit of the traveling and shipping public. In this regard, we note that the waiver would afford carriers over six months since September 11 to resume services in their authorized limited-entry markets. The February 15 notice requirement will provide all interested carriers notice of any authorities that will be dormant after expiration of the blanket waiver, and sufficient time to plan for services during the summer traffic season, including receipt of the necessary regulatory authorities.

Moreover, we recognize that specific cases may call for relief going beyond that which we have deemed justified on a blanket basis. In this regard, carriers are free to seek extension of the dormancy waiver beyond March 31 for specific city-pair limited-entry services where they can demonstrate that circumstances warrant. However, carriers should file such requests in sufficient time for other interested carriers to comment and for the Department to make a decision in a timely manner with respect to disposition of the authority at issue.

Finally, we will entertain applications from other carriers for temporary reallocation of limited-entry route authorities that are not being used during the blanket waiver period. This will facilitate greater use of the rights available and the potential for more services to the public in important international markets during the blanket waiver period.

We have decided to deny the balance of Delta's request for allocation of the frequencies beyond March 31, 2002. For the reasons stated above, we have granted all U.S. carriers blanket dormancy relief for their international services, including Brazil, through March 31, 2002. In these circumstances, we are not persuaded that granting a longer-term Brazil allocation to Delta at this time is in the public interest. Should one of the other authorized carriers seek a further extension of the dormancy waiver for its Brazil services, Delta, at that time, can seek a further extension of its frequency allocation. We remind all carriers of the need to ensure a smooth transition of services in circumstances involving temporary reallocation of limited-entry route authorities.

By:  Read Van De Water

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