UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY
WASHINGTON, D.C.

NOTICE SERVED: November 6, 1996

NEW ROUTE OPPORTUNITIES FOR U.S.-BRAZIL COMBINATION SERVICES

Under the 1989 Air Transport Services Agreement between the United States and Brazil, as amended ("Agreement"), the United States may designate three U.S. carriers for scheduled combination services. Carrier services are limited by frequency, and currently U.S. carriers may operate 84 weekly frequencies for combination services.[1] Under a Memorandum of Consultations (MOC) between the United States and Brazil, signed October 24, 1996, representatives of the United States and Brazil agreed to a revised schedule to the U.S.-Brazil Air Transport Agreement.[2] Under the MOC, effective April 1, 1997, the United States may designate a total of four U.S. carriers for scheduled combination services.[3] Also, in April 1997, the designated U.S. carriers may use an additional 14 frequencies for a total of 98 weekly frequencies for all U.S. carriers.

Three U.S. carriers--American Airlines, Inc. (American); Tower Air, Inc. (Tower); and United Air Lines, Inc. (United.)--have been designated and allocated frequencies to provide scheduled combination services in the U.S.-Brazil market. American has been allocated 49 weekly frequencies; Tower, 5 weekly frequencies; and United, 28 weekly frequencies. Thus, one additional designation is available for U.S.-carrier combination services. In addition, a total of 16 weekly frequencies are available for allocation among the designated carriers.[4]

By this notice we invite certificate applications from all U.S. certificated carriers interested in using the fourth combination service designation which becomes available April 1, 1997. We also invite applications from new entrant as well as incumbent carriers for allocation of 16 frequencies available for U.S.-Brazil combination services. Certificate and/or frequency allocation applications should be filed by November 18, 1996.[5] Answers to such applications should be filed by November 25, 1996, and replies, by December 2, 1996.

Carriers which already have applications on file may amend or supplement their applications based on the provisions of the MOC.[6]

Except for the filing dates, certificate applications should be filed pursuant to Subpart Q of Part 302 of the Department's regulations. All applications, those for certificates and those for frequency allocation, should be filed with the Department of Transportation, Dockets, Room PL-401, 400 Seventh Street SW, Washington, DC 20590,[7] and should specify, at a minimum, the markets to be served, the proposed startup date, the complete routings from origin to destination of all flights, days scheduled, equipment types and a statement as to whether the aircraft to be used in the proposed schedule are on hand or on order, and variation of frequencies/routings by traffic season, if applicable.[8] Carriers should also include a complete description of the services they provide under their existing allocations. In this regard, carriers should state the number of flights operated, the routings, aircraft type and any seasonal or other fluctuations in service.

Further procedures for acting on the applications filed, if necessary, will be established in a future Department order.

By:

PAUL L. GRETCH
Director
Office of International Aviation

(SEAL)

Dated:


Endnotes

[1] Eighty-two of the currently available 84 frequencies have been allocated.

[2] The two delegations stated that they would recommend that their respective governments apply the terms of the revised schedules on the basis of comity and reciprocity pending conclusion of the agreement. See U.S.-Brazil Memorandum of Consultations, dated October 24,1996.

[3] Designated carriers of the United States may operate over the following route: from a point or points in the United States, via intermediate points, to Manaus, Brasilia, Rio de Janeiro, Sao Paulo, Recife, Porto Alegre, Belem, Belo Horizonte, and Salvador de Bahia, and beyond Brazil to Argentina, Uruguay, Paraguay, and Chile. The MOC also provides for additional points to be served on a code-share basis only. New code-share rights are not at issue in this notice.

[4] This includes the two of frequencies that are available now, combined with the remaining 14 that become available April 1, 1997.

[5] Carriers seeking certificate authority and a frequency allocation may include both requests in one application.

[6] We note that American Airlines has filed an application in Docket OST 96-1883 for allocation of seven weekly frequencies to serve the Miami-Manaus market. Interested parties may file competing applications and responsive pleadings to applications already filed in accordance with the dates specified above.

[7] The original submission is to be unbound and without tabs on 8½" x 11" white paper using dark ink (not green) to facilitate use of the Department's docket imaging system.

[8] If aircraft are on hand, applicants should indicate where and to what extent those aircraft are currently being used by the applicant. If aircraft are on order, applicant should indicate when the aircraft will be delivered and how the aircraft will be financed. Applicant should further indicate whether the aircraft to be used comply with FAR-36; if not, they should indicate specific plans for achieving compliance.