Application of

under 49 U.S.C. §§ 41102 and 41108 for a certificate of public convenience and necessity (Atlanta-Buenos Aires)

Delta Air Lines, Inc. ("Delta") hereby files this Petition for Reconsideration of Order 98-9-3, served September 9, 1998, to the extent that the Department dismissed Delta's pending application for U.S.-Argentina certificate authority. In support of this petition, Delta states the following:

1. On April 20, 1998, United Airlines, Inc. ("United") filed a notice advising the Department of its plans to inaugurate Chicago-Buenos Aires service. In response to United's notice, Continental Airlines, Inc. ("Continental") filed an answer and an application to serve U.S.-Argentina, arguing that United's Chicago-Buenos Aires service is different from the service proposed by United when it secured Argentina frequencies, thereby requiring the institution of a comparative carrier-selection route proceeding.

Petition for Reconsideration of Delta Air Lines, Inc. Page 2

2. Delta filed an answer in opposition to Continental's application together with a "Contingent Motion to Consolidate" that portion of Delta's pending omnibus application for U.S.-Latin America authority seeking Atlanta-Buenos Aires authority "[i]n the event the Department determines that there are allocable frequencies available for U.S. carrier services to Argentina" and institutes a carrier selection proceeding. Given Delta's intense and longstanding interest in serving U.S.-Argentina, in the face of Continental's filings, Delta was compelled to file a "contingent" request to consolidate its application.

3. By Order 98-9-3, the Department determined that no action was required on United's notice, that United needs no additional authority to perform its proposed Chicago-Buenos Aires service, and that there are "no usable route rights available for award to another carrier and no purpose to be served by engaging in carrier selection proceedings." For that reason, the Department denied Delta's contingent motion to consolidate.

4. Unfortunately, the Department also dismissed that portion of Delta's U.S.-South America certificate application relating to U.S.-Argentina authority. It is this narrow aspect of the Department's order to which Delta objects and of which Delta seeks reconsideration.

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5. As the foregoing demonstrates, Delta's "contingent" request to consolidate its application for U.S.-Argentina rights was filed solely because Continental had filed for the institution of a carrier-selection proceeding. Delta's consolidation request was expressly "contingent" on the Department concluding that a carrier-selection case was warranted. Having concluded that it was not, Delta fully appreciates and does not object to the Department's decision to deny Delta's contingent motion to consolidate. However, Delta respectfully disagrees with and urges the Department to vacate its dismissal of Delta's application for U.S.-Argentina authority and instead, to permit that request to remain on the docket as part of Delta's omnibus U.S.-Latin America certificate application. 1/

6. Vacating the dismissal and allowing Delta's certificate application to remain on the public docket will serve the public interest in several respects.

First, dismissal would unfairly penalize Delta for taking necessary action to protect its interest in serving U.S.-Argentina in response to filings initiated by Continental. While denial of Delta's motion to consolidate may be justified, it would not be appropriate to dismiss Delta's underlying application,

1/ The Department inexplicably dismissed Delta's entire request for U.S./Argentina rights, even though its motion sought to consolidate only the Atlanta-Buenos Aires portion. Delta urges the Department to reinstate the entire request.

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especially since it is a component of a broader request for U.S.-Latin America authority.

Second, maintaining Delta's U.S.-Argentina certificate application in the docket will serve to underscore Delta's continued interest in serving U.S./Argentina. Delta's docketed request could be beneficial to U.S. negotiators in pursuing U.S. carrier interests in the upcoming U.S.-Argentina bilateral negotiations.

Third, in the event that route opportunities become available for additional U.S.-Argentina service in the U.S.-Argentina negotiations, having the application on file could expedite consideration by the Department of additional route awards and will avoid imposing the additional costs and burdens on Delta of filing an entirely new application.

Fourth, no one would be prejudiced by the application since under Department policy, the pendency of the application will not confer any advantage over other carrier requests in the event comparative procedures are required.

Petition for Reconsideration of Delta Air Lines, Inc. Page 57. For the foregoing reasons, Delta respectfully requests that the Department reconsider Order 98-9-3 and vacate its dismissal of Delta's U.S./Argentina application in Docket OST-97-3218.

Respectfully submitted,

SHAW PITTMAN, Robert Cohn

(202) 663-8060

Counsel for DELTA AIR LINES, INC.