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Continental Air Lines, Inc.

Continental asks the Department to grant it a waiver of a certificate condition imposed on its New York/Newark-Cali/Medellin authority through October 2002. Continental had planned to institute New York/Newark-Calf service pursuant to authority awarded it by Order 2001-5-26, but under present circumstances Continental intends to defer the institution of service on this route until October 2002. Instituting service at new foreign points would be particularly difficult in the current economic and operating climate. Continental remains committed to instituting New York/Newark-Call and Medellin service, but it may well be unable to do so prior to October 2002. Thus, Continental requests a waiver of the dormancy condition imposed by Order 2001-5-26 until October 30, 2002 so it can institute service at that time or sooner if conditions permit.

Counsel:  Crowell Morning, Bruce Keiner, 202.624.2615

Northwest Airlines, Inc./United Air Lines, Inc./American Airlines, Inc. and Continental Air Lines, Inc.

Counsel:  FedEx, Thomas Donaldson, 901.434.8586, tfdonaldson@fedex.com 

Northwest Airlines, Inc./United Air Lines, Inc./American Airlines, Inc. and Continental Air Lines, Inc.

Continental and United oppose the additional conditions urged by Delta and request the Department to act expeditiously to issue the blanket dormancy waivers they are seeking subject only to the conditions they have proposed. If Delta's conditions were adopted, the administration of blanket dormancy waivers would actually subject the recipients to more procedural requirements and more stringent reporting rules than would be the case if they simply sought ad hoc waivers under normal procedures. Such burdensome conditions would negate the purpose underlying the blanket waivers. Continental and United jointly urge that the Department issue blanket waivers subject only to the conditions originally proposed by the applicants and do so as far in advance of the sort of one-time report of dormancy utilization and startup proposed by Delta is adopted.

Counsel:  Crowell Morning, Bruce Keiner, 202.624.6215, and Wilmer Cutler, Jeffery Manley, 202.663.6670, jmanley@wilmer.com  

American Airlines, Inc., Continental Air Lines, Inc. and US Airways, Inc.

As stated in Delta's Answer in Dockets OST-01-10699 (United) and OST-01-10750 (Northwest), Delta believes that temporary blanket relief from applicable dormancy conditions should be available to all carriers during the upcoming Winter Season. However, in order to protect the public interest in maintaining and restoring service on important limited-entry routes, this emergency relief should be more limited than that proposed by the applicant carriers. Unused authority should be available to any carrier willing to provide temporary replacement service during the Winter Season. Carriers receiving blanket waivers should be required to notify the Department no later than January 7, 2002 of their intent to recommence service on limited-entry routes. Any authority that has not been confirmed for service resumption should be immediately available at the start of the 2002 Summer Season for reallocation to permanent replacement carriers.

Counsel:  Shaw Pittman, Robert Cohn, 202.663.8060

Delta Air Lines, Inc./United Air Lines, Inc./American Airlines, Inc./Continental Air Lines, Inc. and U.S.- Brazil Frequencies

Letter of Delta Air Lines, Inc., American Airlines, Inc., Continental Airlines, Inc. and United Airlines, Inc. urging the Department to take actions immediately with respect to Brazil frequency allocation and dormancy waiver issues.

Delta requests the Department immediately allocate to Delta four U.S.-Brazil frequencies for Atlanta-Rio de Janeiro service through March 31, 2002, subject to recall on not less than 90 days notice to the Department. Delta. American, Continental and United concur with this request subject to the simultaneous grant of the relief described in paragraph 2 below.

United, Continental and American request the Department immediately to grant dormancy waivers with respect to U.S.-Brazil authority through March 31, 2002. Delta concurs with this request subject to the simultaneous grant of the relief described in paragraph 1 above. This request is without prejudice to the position taken by the carriers in the blanket dormancy proceedings (which Delta concurs with) that blanket waivers should provide that the 90-day dormancy period begins on March 31, 2002.

Counsel:  Crowell Morning, Bruce Keiner, 202.624.6215, and Wilmer Cutler, Jeffery Manley, 202.663.6670, jmanley@wilmer.com, Shaw Pittman, Robert Cohn, 202.663.8060 and American, Carl Nelson, 202.496.5647, carl.nelson@aa.com

United Air Lines, Inc., American Airlines, Inc. and Continental Air Lines, Inc. 

By: Paul Gretch 

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

Continental Air Lines, Inc.

Applies for a waiver of the dormancy conditions applicable to its allocation of seven U.S.-Colombia frequencies for service between New York/Newark and Cali and Medellin, Colombia through December 31, 2003.  Good cause exists for waiving the dormancy condition applicable to Continental's U.S.-Colombia frequencies through December 31, 2003. Continental was the only applicant for the seven Colombia frequencies at issue when they first became available see Order 2001-5-26), and the Department has waived the dormancy condition applicable to Continental's Colombia frequencies until October 1, 2002.  With a sluggish U.S. economy, an economic crisis developing in South America and large losses reported by the U.S. airlines serving South America^, instituting service at new foreign points in South America would be particularly difficult in the current economic and operating climate. Continental is seeking this dormancy waiver to maintain the flexibility to introduce New York/Newark-Cali/Medellin service when economic conditions improve. Continental remains committed to instituting New York/Newark-Cali/Medellin service, but it may well be unable to do so prior to December 2003.

Counsel:  Crowell Morning, Bruce Keiner, 202.624.2615

Continental Airlines, Inc. and All U.S. Carriers

Counsel:  American, Carl Nelson, 202.496.5647, carl.nelson@aa.com

Continental Airlines, Inc.

Notice granting, in part the application. Effective September 18, 2002 through April 1, 2003. Petitions due September 27, 2002.

By: Paul Gretch

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