NEW
September 23, 1997
This serves as interim notice to the public of the action described below, taken orally by the Department official indicated; the confirming order or other decision document will be issued as soon as possible.
Applications of Delta Air Lines, Inc. filed 7/11/97 in Docket OST-97-2708 and Undocketed for:
XX Exemption for two years under 49 U.S.C. 40109 to provide the following service:
Scheduled foreign air transportation of persons, property, and mail between a point or points in the United States, on the one hand, and Brasilia, Belo Horizonte, Curitiba, Florianopolis, Fortaleza, Manaus, Porto Alegre, Rio de Janeiro, Salvador and Sao Paulo, Brazil, on the other. Delta further requests authority to integrate this exemption with all of Delta’s existing certificate and exemption authority, consistent with applicable international agreements. Delta intends to operate this service under a code-share/blocked space agreement with Transbrasil S/A Linhas Aereas ("Transbrasil") on flights operated by Transbrasil, commencing October 12, 1997.
XX Statement of Authorization under 14 CFR Part 207 for two years to:
Display Transbrasil’s "TR" designator code on flights operated by Delta in the following markets:
Between Atlanta, on the one hand, and Sao Paulo and Rio de Janeiro, on the other hand; and on a blind-sector basis between Atlanta, on the one hand, and Boston, Chicago, Cincinnati, Dallas/Ft. Worth, Denver, Detroit, Los Angeles, and Las Vegas, on the other, for carriage of Transbrasil’s Brazil-U.S. traffic.
No answers were filed to the application.
Applicant rep.: Robert E. Cohn 202-663-8060 DOT analyst: Linda Senese, 202-366-2367
DISPOSITION
XX Granted in Part and subject to conditions. (See below)
XX Balance Dismissed.
The above action was effective when taken: September 23, 1997, through September 23, 1998
XX Under assigned authority (14 CFR 385) by:
Paul L. Gretch, Director
Office of International Aviation
(Petitions for review may be filed from now until
10 days after the confirming order/letter issues.
Filing of a petition shall not stay the effectiveness of this action.)
XX Authority granted is consistent with the aviation agreement between the United States and Brazil, as amended.
Except to the extent exempted or waived, this authority is subject to the terms, conditions, and limitations indicated:
XX Holder’s certificate of public convenience and necessity
XX Standard Exemption Conditions (attached)
____________________________________________________________________________________
Special Remarks: The authority granted is coextensive with the duration of the statement of authorization and exemption granted Transbrasil on September 23, 1997.
Grant: Under the Air Transport Agreement, as amended, between the United States and Brazil, U.S. carriers may conduct code-share-only operations to twenty Brazilian points in addition to those already named in the U.S.-Brazil aviation agreement (i.e., Manaus, Sao Paulo, Rio de Janeiro, Belem, Belo Horizonte, Brasilia, Porto Alegre, Recife and Salvador). The Brazilian code-share-only points are to be selected by the United States. To date, the United States has selected the following 14 cities as code-share-only Brazilian points: Campo Grande, Cuiaba, Curitiba, Florianopolis, Fortaleza, Iguacu, Goiania, Joao Paso, Joinville, Maceio, Natal, Ribeirao Preto, Sao Luiz, and Vitoria.
Similarly, Brazilian carriers may conduct code-share-only operations to twenty U.S. points in addition to those already named in the agreement (i.e., New York, Atlanta, Miami, Orlando, Detroit, Washington/Baltimore, Houston, Chicago, Los Angeles, San Francisco, and San Juan). The U.S. code-share-only points are to be selected by Brazil. To date, Brazil has selected the following 16 cities as code-share-only U.S. points: Boston, Cincinnati, Dallas/Ft. Worth, Denver, Honolulu, Las Vegas, Maui, Minneapolis, New Orleans, Philadelphia, Phoenix, Portland, San Diego, Seattle, Tucson, and Vail.
As all of the points requested by Delta are included in those already selected by the United States and Brazil, we granted Delta’s request in full with respect to the code-share-only authority requested.
Dismissal: We dismissed that portion of Delta’s application to the extent it requested authority for a two-year period. It is our standard practice to grant such initial authorizations for a period of one year, and we followed that policy here. Our dismissal is without prejudice to Delta’s filing for renewal of the authority at the appropriate time.
Conditions: The code-sharing operations authorized herein must comply with 14 CFR 399.88 of the Department’s regulations and any amendments to the Department’s regulations concerning code-share arrangements that may be adopted and are expressly conditioned upon the requirements that the subject foreign air transportation be sold in the name of the carrier holding out such service in computer reservation systems and elsewhere, and that the carrier selling such transportation (i.e., the carrier shown on the ticket) accept all obligations established in its contract of carriage with the passenger, and that the operator shall not permit the code of its U.S. carrier code-sharing partner to be carried on any flight that enters, departs, or transits the airspace of any area for whose airspace the Federal Aviation Administration has issued a flight prohibition.
The route integration authority requested is granted subject to the condition that any service provided under this exemption shall be consistent with all applicable agreements between the United States and the foreign countries involved. Furthermore, (a) nothing in our award of the route integration authority requested should be construed as conferring upon Delta rights (including fifth freedom intermediate and/or beyond rights) to serve markets where U.S. carrier entry is limited unless Delta notifies us of its intent to serve such a market and unless and until the Department has completed any necessary carrier selection procedures to determine which carrier(s) should be authorized to exercise such rights; and (b) should there be a request by any carrier to use the limited entry route rights that are included in Delta’s authority by virtue of the route integration exemption granted here, but that are not then being used by Delta, the holding of such authority by route integration will not be considered as providing any preference for Delta in a competitive carrier selection proceeding to determine which carrier(s) should be entitled to use the authority at issue.
Appendix A
U.S.
Carrier
Standard Exemption Conditions
In the conduct of the operations authorized by the attached order, the applicant(s) shall:
(1) Hold at all times effective operating authority from the government of each country served;
(2) Comply with applicable requirements concerning oversales contained in 14 CFR 250 (for scheduled operations, if authorized);
(3) Comply with the requirements for reporting data contained in 14 CFR 241;
(4) Comply with the requirements for minimum insurance coverage, and for certifying that coverage to the Department, contained in 14 CFR 205;
(5) Comply with the requirements of 14 CFR 203, concerning waiver of Warsaw Convention liability limits and defenses;
(6) Comply with the applicable requirements of the Federal Aviation Administration Regulations; and
(7) Comply with such other reasonable terms, conditions, and limitations required by the public interest as may be prescribed by the Department of Transportation, with all applicable orders and regulations of other U.S. agencies and courts, and with all applicable laws of the United States.
The authority granted shall be effective only during the period when the holder is in compliance with the conditions imposed above.