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OST-03-15021

 


 US Passenger Air Carriers / Continental Airlines, Inc.

Issued April 23, 2003 | Served April 25, 2003

Order 03-4-18
OST-03-15021 - Waiver of the Dormancy Conditions on Limited-Entry Route Authority
OST-03-14777 - Continental Airlines - Temporary Blanket Waiver of Dormancy Conditions

Order Granting Temporary Waivers | Word

We have decided to grant U.S. passenger air carriers holding limited-entry international route authority temporary blanket relief from the dormancy conditions on those authorities, subject to certain conditions, described below. As the carriers have noted in their pleadings in connection with the requested waiver, U.S. airlines have found it necessary to reduce various international flight operations because of significant declines in traffic, and particularly international traffic, in the wake of the Iraq war. The carriers assert, and we agree, that in the current environment, they should not be obligated to reach decisions on restoring such services based on the “use-it-or-lose-it” constraints associated with a dormancy condition. 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 comments support the award of temporary relief.

By: Read C. Van de Water


May 1, 2003

OST-03-15021 - Waiver of the Dormancy Conditions on Limited-Entry Route Authority
OST-03-14777 - Continental Airlines - Temporary Blankey Waiver of Dormancy Conditions

Joint Petition for Reconsideration of Order 2003-4-18

Arrow Air, Inc., Atlas Air, Inc., Evergreen International Airlines, Inc. and Polar Air Cargo, Inc., all holders of limited-entry all-cargo international route authority subject to dormancy conditions, hereby petition for reconsideration of Order 2003-4-18 and urge the Department, on reconsideration, to extend the same relief granted in the referenced order to the all-cargo operations of all U.S. passenger and all-cargo carriers.

Counsel: Lawrence Wasko, 202-331-0599, ldwasko@erols.com for Arrow/ Thomas Lydon, 202-466-2929, tom.lydon@evergreenaviation.com for Evergreen/ Wilmer Cutler, Jeffrey Manley, 202-663-6670, jeffrey.manley@wilmer.com for Polar/ Russel Pommer, 202-354-3843, rpommer@atlastair.com for Atlas


May 12, 2003

OST-03-15021 - Waiver of the Dormancy Conditions on Limited-Entry Route Authority
OST-03-14777 - Continental Airlines - Temporary Blanket Waiver of Dormancy Conditions

Answer of Northwest Airlines to Joint Petition for Reconsideration of Order 2003-4-18 | Word

Hereby submits this Answer in opposition to the Joint Petition of Arrow Air, Inc., Atlas Air, Inc., Evergreen International Airlines, Inc. and Polar Air Cargo, Inc. for reconsideration of Order 2003-4-18. The Order grants a blanket waiver through March 31, 2004 of all dormancy conditions attached to operating authorities held by U.S. passenger carriers for U.S. passenger operations in limited-entry international markets. The Joint Petitioners are asking the Department to reconsider the Order and extend the same dormancy relief to limited-entry allcargo operations of all U.S. carriers. Because the Joint Petitioners have not demonstrated that the same conditions cited in the Department's Order 2003-4-18 support extension of a blanket waiver relating to all-cargo operations, Northwest believes the Department should deny the Joint Petitioners' request.

Counsel: Megan Rae Rosia, 202-842-3193, megan.rosia@nwa.com


US Passenger Air Carriers / Delta Air Lines, Inc.

OST-03-15021 - Waiver of the Dormancy Conditions on Limited-Entry Route Authority
OST-99-6210 - Dormancy Waiver for Atlanta-Buenos Aires

January 27, 2004

Notice of Delta Air Lines of Intent to Resume Service and Request for an Interim Dormancy Waiver

Delta is eager to resume service to Argentina, but the interim dormancy waiver is essential to Delta's efforts to do so successfully. Argentina is still recovering from serious economic difficulty and the demand for international air travel in general remains subject to uncertainty caused by events beyond Delta's control. To maximize the potential for success, Delta seeks to time the resumption of its service to Argentina to coincide with the beginning of the peak season for U.S. ‑Argentina travel. The requested waiver will provide adequate time for Delta to market and promote the service before it commences. Delta must also re‑establish a station and other facilities to support the flight in Argentina. The planned December 1, 2004 implementation date will provide Delta the necessary time to accomplish these objectives, all of which are vital to the success of the new service.

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


OST-03-15021 - US Carriers - Waiver of the Dormancy Conditions on Limited-Entry Route Authority
OST-99-6210 - Delta Air Lines - Dormancy Waiver for Atlanta-Buenos Aires

Filed January 27, 2004 | Issued January 30, 2004

Notice of Action Taken | Word

Order 2003-4-18 granted U.S. passenger carriers holding limited international route authority a blanket waiver of the dormancy conditions applicable to their authorities through March 31, 2004.  The order also required U.S. carriers to notify the Department in writing no later than February 15, 2004, of the limited-entry rights that they will not be using beginning April 1.  Finally, Order 2003-4-18 provided that carriers are free to seek extension of the dormancy waiver beyond March 31, 2004, for specific city-pair limited-entry services where they can demonstrate that circumstances warrant.

Delta filed a Notice of its intent to resume services in the Atlanta-Buenos Aires market, effective December 1, 2004.  It included with that Notice a request for an interim waiver for its U.S.-Argentina frequencies beyond the March 31 date through December 1, 2004.  Delta states that, absent a waiver, its frequencies will expire March 31, 2004.  Delta states that it is ready to resume sales and marketing activities immediately and that it will poll carriers regarding its notice and its request.  On January 29, Delta informed the Department that it had polled the carriers served with its Notice and Request and had received no objections. As to any frequency with which Delta does not begin service by December 1, 2004, its frequency allocation with respect to that frequency expires automatically.

By: Paul Gretch


US Passenger Carriers / American Airlines, Inc.

OST-03-15021 - Waiver of the Formancy Condition on Limited-Entry Route Authority
OST-01-8910 - Miami-Medillin

February 3, 2004

Notice of American Airlines of Intent to Use Frequencies and Application for Limited Dormancy Waiver

Hereby gives notice of intent to use two weekly frequencies in order to increase its nonstop service between Miami and Medellin, Colombia from five days a week to daily, effective June 15, 2004.

American presently operates nonstop service between Miami and Medellin on Monday, Thursday, Friday, Saturday, and Sunday. Effective June 15, 2004, American will add nonstop service on Tuesday and Wednesday. American serves the route with 188‑seat B757‑200 aircraft (22F/166Y), providing substan–tial benefits in the local market as well as in dozens of on–line beyond markets served through American's Miami hub.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com


OST-03-15021 - Waiver of the Formancy Condition on Limited-Entry Route Authority
OST-99-6210 - Atlanta-Buenos Aires

February 3, 2004

Re: Clarification of Delta Air Lines

On January 27, 2004, Delta informed the Department of its plans to resume daily nonstop service on the Atlanta-Buenos Aires route, commencing December 1, 2004. Delta also requested an interim dormancy waiver in order to accommodate the planned start date. No objections were received from any carrier, and the Department granted Delta's request by Notice of Action Taken, dated January 30, 2004.

While it is clear that the Department intended to allow Delta to begin service on December 1, footnote 1 of the NOAT could be read to imply that all of Delta's frequencies must be operated prior to December 1. Delta is proceeding in accordance with its announced and DOT approved service plans to begin daily service on December 1. However, the Department may deem it advisable to clarify the language of footnote 1 to more accurately reflect what was requested and approved.

Counsel: Shaw Pittman, Alexander Van der Bellen, 202-683-8382, sascha.vanderbellen@shawpittman.com


OST-03-15021 - Waiver of the Formancy Condition on Limited-Entry Route Authority
OST-01-8910 - Miami-Medillin

February 4, 2004

Re: Polling Letter

American Airlines, Inc. has polled all parties served with our application of February 3, 2004 for limited dormancy waiver (Miami-Medellin), and there are no objections. We accordingly request expedited approval.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com


US Passenger Carriers / American Airlines, Inc.

OST-03-15021 - Waiver of the Formancy Condition on Limited-Entry Route Authority
OST-01-8910 - Miami-Medellin

February 5, 2004

Re: Application of American Airlines for Limited Dormancy Waiver

In our application submitted on February 3, 2004, we requested a limited dormancy waiver for two Miami-Medellin weekly frequencies to cover the period until June 15, 2004, when American will begin operating daily Miami-Medellin service.

On February 5, 2004, the Department issued an Amendment to Notice of Action Taken in OST-2003-15021 and OST-1999-6210 with respect to the Atlanta-Buenos Aires dormancy waiver granted to Delta Air Lines, Inc. on January 30, 2004. By that Amendment, Delta in effect is given a two-week cushion - from its announced start date of December 1 until to December 15 to use its frequencies.

In these circumstances, American requests similar treatment of its Miami-Medellin application, so that our dormancy waiver is granted until June 30, 2004. As we stated in our polling letter submitted in the captioned dockets on February 4, 2004, we request expedited approval.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com


OST-03-15021 - Waiver of the Formancy Condition on Limited-Entry Route Authority
OST-02-12554 - Los Angeles-Tokyo

February 5, 2004

Notice of American Airlines of Intent to Use Frequencies and Application for Limited Dormancy Waiver

Hereby gives notice of intent to use seven weekly frequencies to operate daily nonstop service between Los Angeles and Tokyo starting April 4, 2004. These seven frequencies were awarded to American by Notice of Action in OST-2002-12554 on July 17, 2002, with a start-up deadline of July 1, 2003. These frequencies have been protected by the blanket dormancy waiver granted by Order 20034-18. That waiver expires on March 31, 2004. Accordingly, American applies for a limited dormancy waiver to cover the period until April 4, 2004, when American will begin operating daily Los Angeles-Tokyo nonstop service.

On February 5, 2004, the Department issued an Amendment to Notice of Action Taken in OST-2003-15021 and OST-1999-6210 with respect to the Atlanta-Buenos Aires dormancy waiver granted to Delta Air Lines on January 30, 2004. By that Amendment, Delta in effect is given a two-week cushion - from its announced start date of December 1 until December 15 - to use its frequencies.

In these circumstances, American requests similar treatment of its Los Angeles‑Tokyo request, so that our dormancy waiver is granted until April 18, 2004. It is clearly in the public interest for the Department to grant the limited dormancy waiver American is seeking. American has firm plans to use its Los Angeles‑Tokyo frequencies, and urges the Department to grant the requested relief on an expedited basis.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com


US Passenger Carriers / Delta Air Lines, Inc.

OST-03-15021 - Waiver of the Formancy Condition on Limited-Entry Route Authority
OST-99-6210 - Atlanta-Buenos Aires

Issued February 5, 2004

Amendment to Notice of Action Taken | Word

In light of the language of our standard footnote, Delta would need its dormancy waiver to run slightly beyond the December 1, 2004 date it requested in order to provide a reasonable opportunity for full introduction of the new service as proposed without the risk of losing frequencies. We have concluded that an extension of the dormancy date to December 15 would provide Delta that full opportunity. In light of the non-controversial nature of Delta’s January 27 waiver request, we will accordingly amend the expiration date of Delta’s dormancy waiver to December 15, 2004. Should Delta need an extension beyond that date, it will need to request such extension formally, and the request will be subject to the provisions set forth in the Remarks Section of our January 30 Notice of Action Taken. Finally, we urge all interested parties to take note of the language of the standard footnote involved here and to take that language into consideration when calculating any requests for dormancy waivers.

By: Paul Gretch


OST-03-15021 - Waiver of the Formancy Condition on Limited-Entry Route Authority
OST-02-12554 - Los Angeles-Tokyo

February 6, 2004

Re: Polling Results

American Airlines, Inc. has polled all parties served with our application of February 5, 2004 for limited dormancy waiver (Los Angeles‑Tokyo), and there are no objections. We accordingly request expedited approval.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com


American Airlines, Inc.

OST-03-15021
OST-01-8910 - Miami-Medillin, Colombia

Filed February 3, 2004 | Issued February 13, 2004

Notice of Action Taken

American filed a Notice of its intent to increase its nonstop service between Miami and Medellin, Colombia, from five days a week to daily, effective June 15, 2004. It included with that Notice an application for an interim waiver for two Miami-Medellin frequencies beyond the March 31 date until June 15, 2004. American stated that it would poll all parties served with its application for non-objections. By letter dated February 4, 2004, American advised the Department that there are no objections to its application. By letter dated February 5, 2004, American requested that its waiver request date be extended until June 30, 2004, citing the Department's amendment to a Delta notice of February 5, extending Delta's request relating to the Atlanta-Buenos Aires market. American requests similar treatment in regard to its Miami-Medellin application.

By: Linda Senese


American Airlines, Inc.

OST-03-15021
OST-02-12554 - Los Angeles-Tokyo

Filed February 6, 2004 | Issued February 13, 2004

Notice of Action Taken

American filed a Notice of its intent to use seven weekly frequencies for daily nonstop service between Los Angeles and Tokyo, starting April 4, 2004. American noted that the Department granted Delta an amended notice on February 5 to extend Delta's waiver for its Atlanta-Buenos Aires market. American requests similar treatment and thus requests its waiver to be granted until April 18, 2004. American stated that it would poll all parties served with its application for non-objections. By letter dated February 6, 2004, American advised the Department that there are no objections to its application.

By: Linda Senese


OST-03-15021 - Waiver of the Dormancy conditions on Limited-Entry Route Authority

February 13, 2004

Notice of Alaska Airlines

Submits the following notice listing each limited‑entry market subject to the blanket dormancy waiver of Order 2003‑4‑18 in which Alaska will not resume service beginning April 1, 2004: 

Council: Squire Sanders, Marshall Sinick, 202-626-6651, msinick@ssd.com


OST-03-15021 - Waiver of the Dormancy conditions on Limited-Entry Route Authority

February 13, 2004

Notice of Continental Airlines (Russia Frequencies)

By Order 2003-4-18, the Department granted all U.S. passenger carriers holding limited-entry international route authority waivers of dormancy conditions otherwise applicable to their authorities and required them to submit a notice by February 15, 2004, listing each dormant limited-entry market in which they will not offer service beginning April 1, 2004. In compliance with that requirement, Continental' advises the Department that it will not be using the 3.5 U.S.-Russia Frequencies awarded to it for codesharing with Delta (Notice of Action Taken, Docket 03-15502, August 21, 2003) by April 1, 2004. Continental is not seeking a waiver to continue this authority in effect, although Continental may seek such authority again in the future.

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


US Passenger Carriers / American Airlines, Inc.

OST-03-15021 - Waiver of the Dormancy Condition on Limited-Entry Route Authority
OST-02-12550 - US-Ukraine Third-Country Codeshare Designation and Frequencies

February 17, 2004

Notice of American Airlines Concerning US-Ukraine and Contingent Application for Dormancy Waiver

Hereby gives notice that, unless the Department promptly grants its application of October 31, 2003 in OST-2002-12550 for transfer of U.S. -Ukraine third-country codeshare designation and 2.5 weekly frequencies, American will not be using this authority as of April 1, 2004. American hereby contingently applies for a dormancy waiver in order to preserve this authority until such time as the Department grants the transfer application and American has implemented codeshare service between the U.S. and Ukraine with British Airways.

Pleadings opposing American's transfer application were submitted by United Air Lines and Continental Airlines. American's application has now been pending for more than 3‑1/2 months without action. The authority has been protected from automatic revocation for dormancy by Order 2003‑4‑18, but that protection ends on March 31, 2004.

In these circumstances, unless the Department promptly grants the transfer application so that American and British Airways can begin codeshare service to Ukraine by April 1, 2004, the Department should grant a dormancy waiver. That waiver should continue until such time as the Department has granted American's transfer application and American has implemented U.S. ‑Ukraine codeshare service with BA.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com


OST-03-15021
OST-02-12554 - Los Angeles-Tokyo

Filed February 6, 2004 | Issued February 13, 2004

Notice of Action Taken

American filed a Notice of its intent to use seven weekly frequencies for daily nonstop service between Los Angeles and Tokyo, starting April 4, 2004. American noted that the Department granted Delta an amended notice on February 5 to extend Delta's waiver for its Atlanta-Buenos Aires market. American requests similar treatment and thus requests its waiver to be granted until April 18, 2004. American stated that it would poll all parties served with its application for non-objections. By letter dated February 6, 2004, American advised the Department that there are no objections to its application.

By: Linda Senese


Delta Air Lines, Inc.

OST-99-6284 - 1999 US-Brazil Combination Service Proceeding
OST-02-11711 - U.S.- Brazil Combination Frequencies
OST-03-15021 - Waiver of the Dormancy Conditions on Limited-Entry Route Authority

February 17, 2004

Notice and Request for a Dormancy Waiver

While conditions are beginning to improve, demand for international air travel in general, and to Latin America in particular, remains relatively soft. Thus, for example, Delta and American have each recently announced plans to resume U.S. Latin American services -- Delta to Argentina, and American to Colombia -- but each carrier has required a further dormancy waiver to do so effectively.

Delta has a strong desire to resume usage of these seven US-Brazil frequencies as soon as economic conditions make it prudent for Delta to do so. In the long term, it is essential that Delta maintain the flexibility to expand its service using these frequencies as market conditions dictate to enable Delta to effectively compete against the much-larger incumbents, particularly American. Having access to current and effective frequencies allows Delta to proceed with route planning decisions, and grant of the requested waiver is the best way to ensure optimal, competitive utilization of previously awarded frequencies.' It is therefore in the public interest for the Department to continue to grant this relief.

Counsel: Shaw Pttman, Robert Cohn, 202-663-8060


OST-03-15021 - Dormancy Waiver on Limited Entry Routes
OST-03-14576 - Philadelphia-Mexico City Codeshare with US Airways

February 19, 2004

Notice of United Air Lines

Hereby informs the Department that United does not plan to commence Philadelphia-Mexico City code-share service by April 1, 2004. United further notifies the Department pursuant to Notice of Action Taken, dated March 20, 2003, in Docket OST-03-14576 that United's Philadelphia-Mexico City exemption authority will be dormant effective April 1, 2004, when the blanket waiver of Order 03-4-18 expires.

To the extent necessary, United requests leave to file the notice required by Order 03‑4‑18 two days late. The late filing is due to the need to coordinate between United and its code‑share partner for Philadelphia‑Mexico City service, USAirways, Inc. The late filing is in these circumstances due to excusable neglect and will not prejudice any party.

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


OST-03-15021 - Dormancy Waiver on Limited Entry Routes
OST-03-14575 - Philadelphia-Mexico City

February 18, 2004

Notice of US Airways

Pursuant to DOT Order 2003-4-18, US Airways, Inc. hereby notifies the Department that US Airways will not resume service in the Philadelphia-Mexico City market beginning April 1, 2004. US Airways hopes to resume this service at some point in the future should circumstances so warrant.

Counsel: US Airways, Elizabeth Lanier, 703-872-5230


Delta Air Lines, Inc.

OST-99-6284 - 1999 US-Brazil Combination Service Proceeding
OST-02-11711 - U.S.- Brazil Combination Frequencies
OST-03-15021 - Waiver of the Dormancy Conditions on Limited-Entry Route Authority

February 24, 2004

Re: Brazil Dormancy Waiver (Polling Results)

On February 17, 2004, Delta requested an extension of the dormancy waiver applicable to seven (7) of Delta's U.S.‑Brazil frequencies, through December 31, 2004, so that Delta can continue to work toward restoring its full pattern of U.S. Brazil service. Delta has conduced a poll and determined that there are no objections to this request by any U.S. carrier authorized to serve Brazil. Accordingly, Delta urges that the requested waiver be granted as soon as possible.

Counsel: Shaw Pittman, Alexander Van der Bellen, 202-663-8382


Filed February 17, 2004 | Issued February 24, 2004

Notice of Action Taken | Word

Dormancy Waiver for seven of Delta's U.S.-Brazil frequencies through December 31, 2004 for Atlanta-Rio de Janeiro services. Delta gives notice to the Department that it does not plan to commence Atlanta-Rio de Janeiro service by April 1, 2004, but requests a further dormancy waiver for seven (7) of its U.S.-Brazil frequencies through December 31, 2004, so that Delta can continue working on restoration of its full pattern of U.S.-Brazil service. Delta urges the Department to grant a waiver of the dormancy condition applicable to seven of its U.S.-Brazil frequencies from April 1, 2004 through December 31, 2004.

By: Paul Gretch


US Passenger Carriers / American Airlines, Inc.

OST-02-12550 - US-Ukraine Third-Country Codeshare with Swiss
OST-03-15021 - Waiver of Dormancy Conditions on Limited-Entry Routes

February 26, 2004

Answer of United Air Lines

American's request for a waiver of dormancy has been effectively mooted by United's competing application and American's own competing application to enable it to use the frequencies for a code share with British Airways. American's request to extend the dormancy waiver is merely that carrier's latest move to complicate and delay reallocation of these frequencies to United. In fact, United has demonstrated in Dockets OST-03-16445 and OST-02-12550 that its proposal to use these frequencies to code share on Lufthansa's services to Kiev via Munich produces far greater public benefits than would the services American proposes to offer with BA.

Rather than wasting more time on this matter by considering American's specious "contingent" application for a dormancy waiver, United urges the Department to dismiss that application and act without further delay to approve United's own frequency allocation request in Docket OST-03-16445. The peak season for transatlantic service is rapidly approaching, and the Department should reallocate these frequencies for immediate implementation by United rather than entertaining motions for relief by American which do not address the need for using these valuable economic rights which American has allowed to go unused for nearly the entire winter season.

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


OST-03-15021 - Waiver of the Dormancy Conditions on Limited-Entry Route Authority
OST-02-13527 - US-Mexico (Chicago-Durango)

March 16, 2004

Notice of USA 3000 Airlines

To the extent necessary, USA 3000 requests leave to file late the Notice required by Order 03‑4­-18 No other U.S. carrier currently operates to Durango and no party will be prejudiced by this late filing.

Counsel: Pierre Murphy, 202-776-3980, pmurphy@lopmurphy.com


American Airlines, Inc.

OST-03-15021 - Waiver of the Dormancy Conditions on Limited-Entry Route Authority
OST-02-12550 - US-Ukraine Third-Country Codeshare Designation and Frequencies

Filed February 17, 2004 | Issued March 19, 2004

Notice of Action Taken | Word

Contingent waiver from the 90-day dormancy condition.

By Notice of Action Taken dated July 30, 2002 (Docket OST-2002-12550) the Department authorized American Airlines to provide third-country code-share service to Ukraine with Swiss International Air Lines, Ltd. d/b/a Swiss, via Zurich and awarded it 2.5 weekly frequencies to operate in the U.S.-Ukraine market.  American and Swiss implemented the service; however, on August 1, 2003, Swiss filed a notice in Docket OST-2002-12001 that it would cease serving Ukraine effective October 26, 2003. 

On October 30, 2003, United filed an application for the available U.S.-Ukraine third-country code-share opportunity and requested 3.5 frequencies (Docket OST-2003-16445). 

On October 31, 2003, American filed to transfer its U.S.-Ukraine third-country designation and 2.5 weekly frequencies from Swiss to British Airways.  Even though it had not been using these frequencies, American is proceeding on the basis that it still holds them through March 31 by virtue of a blanket dormancy waiver granted to U.S. carriers in Order 2003-4-18.  On the contingency that American’s request to transfer these frequencies to British Airways is not granted in time for service to begin by April 1, American requests a waiver of the 90-day dormancy condition until such time as the Department grants American’s transfer application and American has implemented U.S.-Ukraine service with British Airways.

United filed an answer urging the Department to dismiss American’s application and approve United’s application stating that the frequency allocation to which American refers was limited to code-share services in conjunction with Swiss, and those services ceased on October 26, 2003.  In this regard, United states that American is no longer in a position to restart those services

By: Paul Gretch


U.S. Passenger Air Carriers / Delta Air Lines, Inc.

OST-03-15021 - Waiver of the Dormancy Conditions on Limited-Entry Route Authority
OST-98-6284 and OST-02-11711 - Dormancy Wiaver Atanta-Brazil

May 27, 2004

Notice of Delta Air Lines of Intent to Utilize US-Brazil Frequencies and Request for Amendment to Conditions

Delta proposes to commence a second daily Atlanta-Sao Paulo flight on or about December 1, 2004. In order to fund the new service, Delta plans to resume use of seven (7) U.S.-Brazil frequencies already allocated to Delta that are subject to a dormancy waiver through December 31, 2004. Delta requests an amendment to the conditions of the subject frequencies (allocated for Rio de Janeiro service) to permit their use on the Atlanta-Sao Paulo route. There is currently a surplus of Brazil frequencies in the Department's unallocated pool, as well as additional unused frequencies held by long-term incumbents that are not subject to the Department's now-standard 90 day condition.

Market conditions have now improved sufficiently to support a second daily Atlanta­ Brazil service. However, demand for Sao Paulo service is stronger than for Rio de Janeiro. Consequently, a second daily Sao Palo flight is feasible, while Rio de Janeiro is not at this time. Because the Department awarded the seven frequencies at issue specifically for use in the Atlanta‑Rio de Janeiro market, Delta requires permission to utilize the frequencies for service to Sao Paolo.

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


U.S. Passenger Air Carriers / Delta Air Lines, Inc.

OST-03-15021 - Waiver of the Dormancy Conditions on Limited-Entry Route Authority
OST-98-6284 and OST-02-11711 - Dormancy Wiaver Atanta-Brazil

May 28, 2004

Answer of American Airlines to Notice and Request of Delta Air Lines

American does not object to Delta's request, provided that other carriers holding Brazil frequencies are accorded flexibility to convert their own city-pair specific frequencies to other markets as conditions warrant. Last year, in OST-2003-15965, American applied for two Brazil frequencies to provide additional service between Miami arid Sao Paulo and between Miami and Rio de Janeiro. American requested that these frequencies be designated for combination service between points in the U.S. and points in Brazil in order to provide maximum operating flexibility.

In the interest of avoiding a delay in the Depart­ ment's decision, American submitted a reply withdrawing its request for country‑pair frequencies. The Department issued a Notice of Action Taken on August 14, 2003 limiting American's two new frequencies to specific city‑pairs, one for Miami‑Sao Paulo and the other for Miami‑Rio de Janeiro.

To afford carriers maximum operating flexibility and to reduce unnecessary administrative burdens, American urges the Department to respond to Delta's request by issuing a blanket order converting all Brazil combination frequencies now held by Delta, American, United Air Lines, Inc., and Continental Airlines, Inc. from city-pair specific frequencies (such as Atlanta-Rio de Janeiro) to country-pair frequencies (U.S.Brazil). Such an outcome would afford all carriers the same flexibility and would reduce unnecessary administrative burdens by eliminating the requirement that carriers must seek: prior approval whenever they wish to move their frequencies from one city-pair to another in order to respond to market conditions.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com


U.S. Passenger Air Carriers / Delta Air Lines, Inc.

OST-03-15021 - Waiver of the Dormancy Conditions on Limited-Entry Route Authority
OST-99-6284 - Allocation of U.S.- Brazil Frequencies
OST-02-11711 - Dormancy Waiver Atanta-Brazil

June 2, 2004

Answer of Continental Airlines

Continental has no objection to Delta's request for flexibility to use its Brazil frequencies on any of its U.S.-Brazil routes at its discretion so long as Continental is given the same flexibility to use its own Brazil frequencies on any of its Brazil routes. As American has suggested, the Department should remove city-pair restrictions on all U.S.-Brazil frequencies to provide all U.S. airlines serving Brazil with the same operating flexibility to meet market demand. Converting U.S. –Brazil frequencies from city-pair specific frequencies to country-pair frequencies will also relieve the carriers and the Department's staff of the unnecessary administrative burden of requiring authorization to move Brazil frequencies from one route to another and give all U.S. carriers serving Brazil the same opportunity to move frequencies as needed to optimize U.S.-Brazil service.

Counsel: Crowell & Moring, Bruce Keiner, Jr. 202-624-2615


U.S. Passenger Air Carriers / Delta Air Lines, Inc.

OST-03-15021 - Waiver of the Dormancy Conditions on Limited-Entry Route Authority
OST-99-6284 - Allocation of U.S.- Brazil Frequencies
OST-02-11711 - Dormancy Waiver Atanta-Brazil

June 3, 3004

Response of Delta Air Lines and Motion for Leave to File

Answers to Delta's application were filed by Continental and American. Each of those carriers states that it has "no objection to Delta's request . . ." to use the frequencies at issue for Sao Paulo service. However, American and Continental argue for additional flexibility with respect to their own frequencies, so as to allow frequencies allocated for specific city‑pair routes to be used in any U.S.‑Brazil market.

Delta has no objection in principle to this suggestion ‑ provided that it does not cause any delay in the issuance of a decision in this matter. The operating flexibility requested by Delta is exceedingly modest ‑ to serve either of the Brazil's two largest cities from Delta's primary Atlanta hub. The public interest benefits of both Rio de Janeiro and Sao Paulo service from the Atlanta gateway (with online connections to scores of U.S. cities) have already been fully evaluated and confirmed by the Department.

Delta would accept a city‑pair specific condition authorizing the use of the seven frequencies at issue for Atlanta‑Sao Paulo service, but believes that such a condition is undesirable and unnecessary. It would preclude Atlanta‑ Rio de Janeiro service (which the Department has already found to be in the public interest) without yet another notice proceeding.

Counsel: Shaw Pittman, Alexander Van der Bellen, 202-663-8060


U.S. Passenger Air Carriers / Delta Air Lines, Inc.

Order 04-06-25
OST-03-15021 - Waiver of the Dormancy Conditions on Limited-Entry Route Authority
OST-99-6284 - Allocation of U.S.- Brazil Frequencies
OST-02-11711 - Dormancy Waiver Atanta-Brazil

Issued and Served June 28, 2004

Order | Word

By this order, we grant, subject to conditions, the request of Delta Air Lines, Inc. for an amendment to conditions on its U.S.-Brazil frequency allocations in order to permit flexibility to use frequencies for Atlanta-Rio de Janeiro/Sao Paulo service. We also grant the other U.S. carriers designated for combination services in the U.S.-Brazil markets flexibility to use their allocated frequencies in markets where the carriers hold requisite underlying authority.

By: Susan McDermott


 

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