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U.S.-Brazil Combination Service Frequencies

Delta is requesting a temporary allocation of unused Brazil frequencies to provide important replacement services for U.S.-Rio de Janeiro travelers and shippers.  Many carriers have announced schedule reductions which are both understandable and unavoidable; however, the Department has a public interest obligation to preserve the highest possible levels of international air transportation service -- particularly on important limited-entry routes such as U.S.-Brazil.  Delta believes that the scope and coverage of Delta’s Atlanta hub make it feasible for Delta to provide immediate replacement service to Rio de Janeiro, while other carriers have concluded that they are not in a position to do so.

There are currently unused U.S.-Brazil combination frequencies sufficient to fund Delta’s proposed increase from three to seven weekly Atlanta-Rio de Janeiro flights.  On September 17, Continental issued a press release announcing the indefinite suspension of its four weekly Newark-Rio de Janeiro nonstop flights. (“Nonstop service from NY/Newark to Rio de Janeiro is being suspended, although service to Rio de Janeiro will continue to be offered via Sao Paulo.”)  Moreover, on October 3, 2001, Continental requested a blanket waiver of all dormancy conditions for its international operation authority -- including the Brazil frequencies at issue -- for the entire Winter 2001/2002 Season, i.e., through March 30, 2002. See, Docket OST-01-10771.   Thus, there are at least four unused frequencies available indefinitely for temporary reallocation to fund daily Atlanta-Rio de Janeiro service on December 1, and it appears that those frequencies will remain unused at least through March 30, 2002.

Counsel:  Shaw Pittman, Robert Cohn, 202.663.8060

U.S.-Brazil Combination Service Frequencies and Delta Air Lines

In its application Delta seeks a temporary allocation of four weekly U.S.-Brazil frequencies "to commence on December 1, 2001, and continue at least through the end of the Winter 2001/2002 season on March 30, 2002." (Application at 4; emphasis supplied). Delta has linked its temporary allocation request to the blanket dormancy waivers which Delta and other carriers have contemporaneously requested. In its own waiver request, and in answer to the similar blanket dormancy waiver requests filed by United and other carriers, Delta urges that the waiver period end promptly on March 30, 2002, requiring services suspended under the waivers to be restarted on March 31, 2001. Absent such a resumption of service or specific additional relief from the dormancy condition, frequencies would default to the Department and would then presumably become available on a permanent basis to a carrier such as Delta, which held a temporary allocation.

The normal answer date for Delta's temporary allocation application is October 19, 2001. Before that date, the Department should have issued its decision on the various blanket dormancy waivers. Until such a decision is issued, however, carriers cannot know the scope of their dormancy waivers and cannot, accordingly, know the impact that a temporary allocation, such as Delta requests, would have on their own frequency allocations. Unlike Delta, United and other applicants for blanket waivers have requested that the normal practice apply after the end of the dormancy waiver, allowing carriers to resume service within 90 days of that date -in this case March 30, 2002.1 Delta, on the other hand, opposes the normal practice and urges that all suspended frequencies become dormant automatically on March 31, 2002, if usage is not resumed before that date. Because the scope of the dormancy waivers will impact the terms of temporary frequency allocations such as Delta has requested, carriers must know the scope of these waivers before they can formulate a position on the temporary allocation application.

For the foregoing reason, United, opposes Delta's request for a shortened answer period in Docket OST-01-10782. Moreover, in the event that the Department does not issue a final order relating to the various requests for blanket dormancy waiver prior to the regulatory answer date of October 19, 2001, United requests that that date be stayed until five working days after the issuance of a final order in Dockets OST-01-10699, 10750, 10769, 10771, 10781, and 10808 to give all interested parties the ability to form reasoned judgments as to the impact of the blanket dormancy waivers on Delta's temporary frequency allocation.

Counsel: Wilmer Cutler, Jeffery Manley, 202.663.6670, jmanley@wilmer.com 

U.S.-Brazil Combination Service Frequencies and Delta Air Lines

American does not object to grant of Delta's request, provided that the Department's action does not interfere with American's ability to resume its full pattern of U.S.-Brazil service during the summer 2002 season.  As Delta notes, three carriers -- Continental, United, and American -- have recently suspended certain U.S.-­Brazil flights due to reduced demand following the terrorist attacks on September 11. American, however, has already announced the resumption of nonstop service between New York (JFK) and Rio de Janeiro, effective December 15, 2001. American expects to be using all of its allocated U.S.-Brazil fre­quencies by next summer.

Delta's request, however, is not strictly limited to the current winter season, but seeks frequencies "at least" through the end of this season. American would object to any allocation of frequencies to Delta that would extend beyond the current winter season and limit American's ability to resume its full pattern of U.S.-Brazil service during the summer.  Delta states that it "takes no position on the ulti­mate source of frequencies for its proposed temporary frequency allocation," and that "it is evident that there are more than enough opportunities to fund Delta's temporary request" (p. 3 n. 1). Since this appears to be the case, the Department could allocate four temporary frequencies to Delta without specifying the source, but finding that sufficient unused frequencies are available to satisfy Delta's request through March 30, 2002.

The Department has not yet ruled on this issue. In order to afford carriers the needed flexibility in selecting the precise date on which they resume service, American urges the Department to reject Delta's position, and grant a blanket dormancy waiver that extends 90 days beyond the end of the current winter season. Otherwise, the Department will likely be burdened with numerous applications for ad hoc dormancy waivers, and the benefit of granting blanket relief will be substantially impaired.

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

U.S.-Brazil Combination Service Frequencies and Delta Air Lines

American, United and Continental each have U.S.-Brazil frequencies that are currently unused as a result of the tragic events of September 11 and their aftermath. Each carrier has sought a blanket waiver of dormancy requirements that would otherwise apply to these frequencies, but the Department has not yet acted on those applications. According to Delta’s analysis, 29 U.S.-Brazil frequencies are currently unused, and it seems likely that most of those frequencies will remain unused at least until March 30, 2002. Since so many frequencies are currently unused, the Department need not decide which frequencies it would allocate to Delta temporarily. Assuming that blanket waivers are granted and four frequencies are awarded temporarily to Delta, if American, Continental or United decides to reinstitute suspended services before March 30, 2002, 25 frequencies remain available for them to do so. Only if all 29 frequencies were required for re-institution of services prior to March 30, 2002, would there be any requirement to recall the frequencies awarded temporarily to Delta on 60 days’ notice.

If Delta seeks a continuing allocation of the four frequencies beyond March 30, 2002, Delta should apply for them in 2002, when plans of the other carriers will have become clearer. Allowing Delta to operate four additional Atlanta-Rio de Janeiro frequencies commencing December 1, 2001, under such terms will allow Delta to conduct additional Brazil operations on a temporary basis without prejudicing the rights of other airlines to reinstitute service using the frequencies awarded to them for routes other than Atlanta-Rio de Janeiro.

Counsel:  Continental and Crowell Moring, Bruce Keiner, 202.624.2615

As pointed out in Delta’s application, there are currently some 29 Brazil frequencies that are going unused. Continental has announced the indefinite suspension of its four weekly Newark-Rio de Janeiro flights. In addition, American and United have between them 25 frequencies that are not currently operating, and which remain the subject of blanket dormancy requests for the 2001/02 Winter Season. In these circumstances, the public interest benefits of authorizing Delta to make temporary use of four frequencies at least until March 30, 2002, are self evident. The Georgia and Atlanta parties urge the Department to bring this proceeding to a conclusion swiftly, so that these important opportunities will not be wasted.

Counsel:  Georgia-Atlanta Parties, Hollybeth Anderson, 404.586.8462, handerson@macoc.com 

Delta seeks a temporary award of four U.S.-Brazil frequencies in order to increase its Atlanta-Rio de Janeiro service from three flights per week to a daily service pattern. Although Delta does not identify precisely the source of the frequencies it seeks to use, Delta posits that ample frequencies are currently unused and available to satisfy its request.

In theory, United does not object to a temporary reallocation of four otherwise dormant frequencies to Delta for its proposed Atlanta-Rio de Janeiro daily service during the Winter 2001-2002 season. United's New York (JFK)-Sao Paulo frequencies, however, which Delta identifies as potentially dormant and as one apparent source for Delta's temporary allocation, cannot be used to fill Delta's request. As United's December schedule reflects, United plans to reinstate its JFK-Sao Paulo service on December 15, 2001, and intends to offer a daily service pattern utilizing seven weekly frequencies. United, therefore, objects to any reallocation of those frequencies to Delta.

Counsel:  United and Wilmer Cutler, Jeffrey Manley 

U.S.- Brazil Combination Frequencies

The only point of debate raised by the commenting carriers is what return conditions should be placed on Delta's temporary frequency award. Delta urges the Department to place maximum emphasis on ensuring continuous beneficial use of the four frequencies at issue. Delta should not be compelled to terminate its four weekly flights on March 30, 2002 if the carriers previously awarded the frequencies are not ready, willing and able utilize them for previously-authorized U.S.-Brazil services. Nor should Delta's temporary frequency award be subject to an unreasonably short return-on-notice condition (less than 90 days) that would impair the commercial feasibility of their use.

At least 90 days are required for orderly service adjustments in long-haul international routes to allow for adequate airline and consumer planning. A 90 day startup condition has long been the standard in DOT international route cases. Moreover, the dormancy waiver applications filed by American, United and Continental have sought an additional 90-day window within which to recommence service. Likewise, Delta needs 90 days if it will have to stop operating the four Atlanta-Rio de Janeiro frequencies. The 60 day return condition proposed by Continental is unreasonable and unworkable. Indeed, it is only half the time Continental itself has said is required to plan and implement U.S.-Brazil services. Other airlines will certainly know 90 days before they plan to resume Summer Season 2002 services, and Delta should have no less planning flexibility than that sought by the dormancy waiver applicants.

Delta should not be forced to cancel Atlanta-Rio de Janeiro services any earlier than is absolutely necessary for the frequencies at issue to be utilized by the last carrier requiring them to resume service. It may be that a dormant frequency holder will not resume service next summer at all (in which case the frequencies would be available for permanent allocation to Delta), or may resume service in the middle of the 2002 Summer Season. The Department should ensure that Delta has the ability to continue utilizing the four frequencies for the benefit of the travelling and shipping public until the other carrier resumes service. Delta should also be afforded at least 90 days notice to make necessary schedule and resource adjustments.

Counsel:  Delta and Shaw Pittman, Robert Cohn, 202.663.8060

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

Delta would not oppose the grant of blanket temporary waivers with respect to dormant international services as requested by United, American, Northwest, Continental, and other airlines, under which the 90-day dormancy provision would begin to run on March 31, 2002 and terminate on June 30, 2002. Delta's blanket waiver should have the same duration.

American, Continental, and United would not oppose the grant of Delta's application for the temporary allocation of four U.S.-Brazil combination frequencies for Atlanta-Rio service through March 31, 2002 and thereafter, subject to recall not less than 90 days after the carrier proposing to reinstitute U.S.-Brazil service using the last four dormant U.S.-Brazil frequencies gives the Department and Delta written notice of its intent to use such frequencies.

If any U.S.-Brazil frequencies are withdrawn for dormancy, any carrier may seek permanent allocation of those frequencies at the appropriate time.

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

U.S.-Brazil Combination Service Frequencies and Delta Air Lines

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

U.S.-Brazil Combination Frequencies / US Carriers - Waiver of Dormancy Conditions

Order 2001-11-15 seriously errs in concluding that  "The February 15 notice requirement will provide all interested carriers notice of any authorities that will be dormant after the expiration of the blanket waiver, and sufficient time to plan for services during the summer traffic season." Order, at 4. Contrary to this assumption, at least 90 days notice is necessary to schedule aircraft, crews, ground handling and other incidentals, and, most importantly, to provide an adequate booking window for the advertisement and sale of tickets essential to launch or sustain a viable major long-haul international service such as U.S. - Brazil.  Because the February 15 notice deadline gives Delta less than 45 days notice as to whether it might be permitted to continue its daily Atlanta - Rio de Janeiro nonstop service beyond March 31, the Order creates uncertainty that forces Delta as a practical matter to assume it will not be able to continue service beyond March 31 as it plans for the Summer Season. Since Delta must make its Summer planning decisions long before February 15, the current deadline effectively guarantees that Delta’s additional Atlanta-Rio de Janeiro services will be disrupted on March 31, 2002, regardless of whether there ultimately are unused U.S. - Brazil frequencies that would have allowed Delta to continue it. Thus, while the Department’s stated objective in the Order was to "ensur[e] that services in restricted markets are available to consumers to the full extent possible," (Order 2001-11-15 at 3), the Order gambles this goal on the hope that all carriers with permanent allocations will in fact restart their service by April 1. If any of them do not, the Order virtually guarantees a completely unnecessary disruption of U.S.-Brazil service, to the detriment of consumers, Delta, and the public interest.

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

U.S.-Brazil Combination Frequencies (Atlanta-Rio de Janeiro) / US Carrier Dormancy Waivers

Hereby notifies the Department that no U.S.-Brazil combination carrier has objected to Delta’s request for a shortened answer date of December 12, 2001, concerning Delta’s Petition for Reconsideration of Order 2001-11-15. Delta further notes that there are twenty-six (26) dormant Brazil frequencies held by other carriers, rather than eleven as originally stated in Delta’s Petition. A summary of the dormant frequencies is contained in Attachment A.

Counsel:  Shaw Pittman, Robert Cohn, 202.663.8060

U.S.-Brazil Combination Frequencies; U.S. Carrier Dormancy Waivers, and Delta Air Lines, Inc.

By:  Paul Gretch

U.S.-Brazil Combination Frequencies; U.S. Carrier Dormancy Waivers, and Delta Air Lines, Inc.

The Georgia and Atlanta Parties agree with Delta that it is highly unlikely that all twenty-six currently dormant frequencies would be recalled for other Brazil services on April 1, 2002. This large number of dormant frequencies represents approximately one quarter of the entire U.S. bilateral allotment of U.S.-Brazil frequencies. Especially considering that even prior to September 11, other carriers' utilization of U.S.-Brazil frequencies had been sporadic, it is very likely that at least four of the twenty-six currently dormant frequencies will be available on April 1 for the continuation of daily Atlanta-Rio de Janeiro service. The Department should make every effort to ensure continuity of service and avoid unnecessary short term cancellations, which are highly disruptive the traveling public and harmful to communities and the carriers that serve them.

Counsel:  Atlanta, Holly Beth Anderson, handerson@macoc.com

U.S.-Brazil Combination Frequencies; U.S. Carrier Dormancy Waivers

Accordingly, the notice date should remain February 15, 2002. As for Delta's further contention that carriers seeking individual dormancy waivers beyond March 31 be required to do so by December 31, that request should be denied as well, and for the same reason. In this period of temporary uncertainty following September 11, December is too early for carriers to be expected to finalize their summer 2002 schedules.

We also note that all carriers affected by the Department's action -- except for Delta -- consistently urged that the blanket dormancy waiver should extend for a period of 90 days beyond March 31, 2002 in order to afford maximum flexibility for the phase-in of restored service. The Department, however, denied blanket dormancy relief beyond March 31. It would be unfair and prejudicial to other carriers to require a final decision on summer 2002 schedules by December 31 to satisfy Delta's special request for the Brazil market, without also extending the blanket dormancy period for 90 days beyond March 31. Finally, Delta's letter of December 7, 2001 with respect to dormant Brazil frequencies is inaccurate. American is operating five weekly JFK-GIG nonstops, and 14 weekly MIA-GRU nonstops, effective December 15, 2001.

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

As Delta suggests, the U.S.-Brazil market may be "unique," with 26 frequencies unused (15 by American, 7 by United and four by Continental) and another carrier (Delta) using frequencies on an interim basis. Even under these circumstances, however, no relief should be given to Delta unless comparable relief is also given to Continental and other carriers. Thus, if Delta were to receive a temporary award of four Brazil frequencies beyond March 30, 2002, the other carriers should be granted dormancy waivers extending beyond that period as well. Continental would not object to an award of the four frequencies temporarily to Delta for an indefinite period so long as Continental is granted an indefinite dormancy waiver and could recall four^\ Brazil frequencies on 90 days' notice. With 26 Brazil frequencies currently dormant and the extraordinary uncertainties caused by the aftermath of the September 11 attacks, the Department should await plans for reinstitution of Brazil services by American, Continental and United rather than forcing those carriers to institute unprofitable Brazil services (as Delta has already done) or risk losing frequencies awarded to them. Delta has already incurred whatever costs were inherent in instituting additional frequencies on a route it already served with three weekly flights fully understanding that it was doing so based on a temporary, interim award of the frequencies. With a 90 day advance notice for recall, the problems cited by Delta in its petition could be resolved without burdening other carriers and other routes.

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

Delta now complains, as it did previously, that it would be inconvenient and disruptive of its schedule planning for Delta to have to seek such an extension of its temporary allocation beyond March 31. Delta fails to note, however, that it was to avoid such inconvenience and disruption to their own schedule planning that caused carriers such as United to seek waivers of dormancy conditions that would give them 90 days following March 30, 2002, to restart dormant services. The Department rejected that flexibility to restart temporarily suspended operations during a 90-day period beyond March 30 for reasons similar to that which led it to deny Delta the flexibility to continue temporarily authorized services after that date.

Now, having made the necessary concessions to secure a timely startup for its temporary U.S.-Brazil frequencies, Delta is reneging on those concessions in an effort to achieve its goal of retaining the temporary frequencies beyond March 31, 2002. The Department should not tolerate this blatant gamesmanship. Delta's actions border on an abuse of the Department's process, and its petition for reconsideration should be denied in its entirety.

Counsel:  Wilmer Cutler, Jeffery Manley, 202.663.6670, jmanley@wilmer.com

U.S.-Brazil Combination Frequencies / Waiver of Dormancy Conditions on Limited-Entry Authority

In order to prevent continued uncertainty and under-utilization of U.S.-Brazil frequencies, it is important for the Department to identify and promptly resolve any issues pertaining to further discrete U.S.-Brazil dormancy waiver requests beyond March 31. Whatever date the Department establishes for carrier notices of U.S.-Brazil frequency utilization should also be the due date for any Brazil dormancy waiver requests. American was the only carrier that addressed this issue, stating that it would not object to the establishment of a common notice and dormancy waiver application date.

Delta is compelled to respond to United's erroneous suggestion that its Brazil frequencies are not subject to revocation for dormancy, and that it can ignore the Department's required Brazil frequency utilization notice because of the terms of the certificate transfer under which United acquired its Brazil frequencies from Pan Am.  The Department required United to provide prompt updated information to the Department concerning its "plans to implement additional Brazil services to ensure that [United's] allocated frequencies are not wasted." Id. Accordingly, the Department should clarify for United's benefit that it is required, like all other carriers, to inform the Department of United's plans to use (or not use) its dormant Brazil frequencies on the specified notice date.

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

U.S.-Brazil Combination Frequencies / Waiver of Dormancy Conditions on Limited-Entry Authority

Delta's latest request for reconsideration of Order 01-11-15 ignores the fact that the order itself and the pleadings giving rise to it addressed only one type of frequency allocation -- i.e., those allocations subject to dormancy conditions. There are other types of frequency allocations which may become unused or "dormant" but to which that order does not refer. These include the type of U.S.-Brazil frequency held by United under "grandfather" allocations. It was such a grandfather allocation that was referred to in Order 95-3-52 cited by Delta in its reply. The Department has in earlier cases "reallocated" such unused grandfather frequencies for temporary periods of nonuse (as it did in the order cited by Delta) and has reallocated them on a permanent basis where a carrier has abandoned their utilization altogether. The procedures used for such reallocations are fundamentally different, however, from the more recent procedures adopted in 1996 under which dormancy conditions have been imposed which automatically subject frequencies to reversion to the Department after 90 days of nonutilization. See, e.g., Order 96-2-17.

Counsel:  United and Wilmer Cutler, Jeffrey Manley, 202-663-6670, jmanley@wilmer.com 

U.S. Carrier Dormancy Waivers, Delta Air Lines, Inc. and U.S.-Brazil Combination Frequencies (Atlanta-Rio de Janeiro)

By this order, we grant the petition of Delta Air Lines for reconsideration of Order 2001-11-15 and, upon reconsideration, affirm, with one exception, our decision in that order. Specifically, we affirm our decision to require all U.S. carriers holding blanket dormancy waivers to file a notice no later than February 15, 2002, in Docket OST-2001-11065, listing each limited-entry market in which they will not resume service beginning April 1, 2002. We have decided to modify our decision in Order 2001-11-15 with respect to the filing of requests for further dormancy waivers in the U.S.-Brazil market. Carriers holding U.S.-Brazil service frequencies will be required to file any requests for further dormancy waivers by February 15, 2002, the same date that they are required to file notice of their U.S.-Brazil frequency utilization.

Given Delta's current temporary use of frequencies in the U.S.-Brazil market, we believe that establishing a specific due date for further dormancy waiver requests is justified. It is not unreasonable to expect that by February 15, carriers will have made plans to resume service in a particular market if they are going to do so. A specific date will also afford Delta more accurate information on which to make its plans with respect to its expanded Atlanta-Brazil services. Indeed, we note that with respect to its request here, Delta has stated: "Whatever date the Department establishes for carrier notices of U.S.-Brazil frequency utilization should also be the due date for any Brazil dormancy waiver requests."

By:  Read Van de Water

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