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| ![](me      | **UNITED STATES OF AMERICA**                           |
| dia/image1. |                                                        |
| wmf){width= | **DEPARTMENT OF TRANSPORTATION**                       |
| "1.01319444 |                                                        |
| 44444445in" | **OFFICE OF THE SECRETARY**                            |
| height="    |                                                        |
| 1.050694444 | ##  WASHINGTON, DC                                     |
| 4444444in"} |                                                        |
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Issued by the Department of Transportation on **August 8, 2008**

# NOTICE OF ACTION TAKEN \-- DOCKETS DOT-OST-2008-0227 & DOT-OST-2008-0229

This serves as notice to the public of the action described below, taken
by the Department official indicated (no additional confirming order
will be issued in this matter).

Applications of:

**[DELTA AIR LINES, INC. (Delta),]{.underline}** Docket:
**[DOT-OST-2008-0227,]{.underline}** filed: **[July 16,
2008,]{.underline}** amended: **[July 29, 2008]{.underline}**

**[AMERICAN AIRLINES, INC. (American),]{.underline}** Docket:
**[DOT-OST-2008-0229,]{.underline}** filed: **[July 16,
2008,]{.underline}**

amended: **[July 29, 2008]{.underline}**

**[XX]{.underline}** Allocation of U.S.-Brazil Frequencies.

> Delta and American each request weekly combination frequencies to
> serve the U.S.-Brazil market, as follows:[^1]
>
> **Docket OST-2008-0227: Delta requests a total of 11 weekly
> frequencies to be used for combination services between any point(s)
> in the United States and any point(s) in Brazil, consistent with the
> Department's July 7 Notice.**[^2]
>
> **Docket OST-2008-0229: American requests a total of 10 weekly
> frequencies to be used for combination service between any point(s) in
> the United States and any point(s) in Brazil, consistent with the
> Department's July 7**
>
> **Notice.**[^3] [^4]

**[XX]{.underline}** Joint Motion of Delta and American

> **On July 29, 2008, Delta and American filed a joint motion requesting
> the immediate grant of their respective applications, as amended,
> stating that Delta and American are the only applicants seeking the
> 2008 combination frequencies newly available under the 2008 Agreement.
> The carriers request that the frequency awards be non-city-pair
> specific, from any point in the United States to any point in Brazil
> eligible for the subject 2008 service.**[^5]

**[XX]{.underline}** Exemption for Delta under 49 U.S.C. 40109 to
provide the following service:

> **Docket OST-2008-0227: Scheduled foreign air transportation of
> persons, property, and mail between any point(s) in the United States,
> on the one hand, and Manaus, Fortaleza, Belo Horizonte, and Recife,
> Brazil, on the other hand.**

Applicant reps: **[J. Scott McClain For Delta (404) 773-6514 and Carl B.
Nelson, Jr., for American (202) 496-5647]{.underline}**

DOT Analyst: **[Linda L. Lundell (202) 366-2336]{.underline}**

**D I S P O S I T I O N**

**[XX]{.underline}** Granted, subject to conditions (see below)

The above action granting frequency allocations was effective when
taken: **[August 8, 2008,]{.underline}** and will remain in effect
indefinitely, subject to the conditions described below.[^6]

The above action granting exemption authority to Delta was effective
when taken: **[August 8, 2008,]{.underline}** through **[August 8,
2010]{.underline}**.

The above action granting the joint motion of Delta and American was
effective when taken: **[August 8, 2008]{.underline}**.[^7]

**Action taken by: Paul L. Gretch, Director**

##  Office of International Aviation 

**[XX]{.underline} The authority granted is consistent with the aviation
agreement between the United States and Brazil.**

Except to the extent exempted or waived, the authority for each carrier
is subject to the terms, conditions, and limitations indicated:

**[XX]{.underline} Each holder's certificates of public convenience and
necessity**

**[XX]{.underline} Standard Exemption Conditions (attached)**

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**Conditions:** Consistent with our standard practice, the frequency
allocations granted are subject to the condition that, if the frequency
is not used for a period of 90 days (once inaugurated), the allocation
as to that frequency will expire automatically and the unused frequency
will revert to the Department for reallocation. Further, unused
frequencies will automatically revert to the Department for reallocation
unless Delta and American begin their respective proposed services
within 90 days of their startup dates, as follows: November 2, 2008, for
American's proposed services; December 18, 2008, for Delta's proposed
Atlanta-Recife-Fortaleza service and December 22, 2008, for Delta's
proposed Atlanta-Manaus service.

**Remarks:** We note that Spirit Airlines, Inc. (Spirit) also filed an
application in response to our July 7 Notice, but seeks U.S.-Brazil
frequencies that do not become available under the 2008 Agreement until
2009 ([see]{.underline} Spirit's application in Docket
DOT-OST-2008-0211). Consistent with the terms of the July 7 Notice, we
will not address Spirit's application at this time.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

On the basis of data officially noticeable under Rule 24(g) of the
Department\'s regulations, we found the applicants qualified to provide
the services authorized.

Under authority assigned by the Department in its regulations, 14 CFR
Part 385, we found that (1) our action was consistent with Department
policy; (2) grant of the authority was consistent with the public
interest; and (3) grant of the authority would not constitute a major
regulatory action under the Energy Policy and Conservation Act of 1975.
To the extent not granted or dismissed, we denied all requests in the
referenced Dockets. We may amend, modify, or revoke the authority
granted in this Notice at any time without hearing at our discretion.

Persons entitled to petition the Department for review of the action set
forth in this Notice under the Department's regulations, 14 CFR §385.30,
may file their petitions within seven (7) days after the date of
issuance of this Notice. This action was effective when taken, and the
filing of a petition for review will not alter such effectiveness.

An electronic version of this document is available on the World Wide
Web at:

[*http://www.regulations.gov*](http://www.regulations.gov/)

##  APPENDIX

## 

## 

## 

## [STANDARD U.S. CARRIER EXEMPTION CONDITIONS]{.underline}

> In the conduct of the operations authorized, the U.S. carrier
> 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 requirements for minimum insurance coverage, and for
> certifying that coverage to the Department, contained in 14 CFR 205;
>
> \(5\) Except as specifically exempted or otherwise provided for in a
> Department Order, comply with the requirements of 14 CFR 203,
> concerning waiver of Warsaw Convention liability limits and defenses;
>
> \(6\) Comply with all applicable requirements of the Federal Aviation
> Administration, the Transportation Security Administration, and with
> all applicable U.S. Government requirements concerning security,
> including, but not limited to, 49 CFR Part 1544. To assure compliance
> with all applicable U.S. Government requirements concerning security,
> the holder shall, before commencing any new service (including charter
> flights) to or from a foreign airport, contact its Principal Security
> Inspector (PSI) to advise the PSI of its plans and to find out whether
> the Transportation Security Administration has determined that
> security is adequate to allow such airport(s) to be served; 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.

1/2008

[^1]: By Notice dated July 7, 2008, we (1) described the expanded
    U.S.-Brazil aviation opportunities available under the *ad
    referendum* agreement reached between the United States and Brazil
    on June 26, 2008 (2008 Agreement), including the elimination of
    designation limits for U.S. scheduled combination and all-cargo
    carriers, phased-in increases in weekly frequencies for U.S.
    scheduled combination and all-cargo carriers, service opportunities
    to new Brazilian cities, and additional all-cargo charter
    opportunities; and (2) invited applications for the immediately
    available opportunities. The notice can be viewed at:
    [http://www.regulations.gov](http://www.regulations.gov/). We stated
    that we would entertain applications for the rights that will become
    available in 2009 and 2010 in a future proceeding. Delta and
    American each filed applications in response to our Notice seeking
    the allocation of combination frequencies available immediately.

[^2]: Delta states that it will use the 11 frequencies as follows: daily
    round-trip service in the Atlanta-Manaus market, and four times
    weekly round robin service on the routing
    Atlanta-Recife-Fortaleza-Atlanta. Delta states that it requests the
    flexibility to adjust its schedules and use all 11 weekly
    frequencies to provide service between any point(s) in the United
    States, on the one hand, and Manaus, Fortaleza, Belo Horizonte,
    and/or Recife, on the other, as market conditions dictate.

[^3]: American states that it will use the 10 frequencies as follows:
    daily round robin service on the routing Miami-San
    Salvador-Recife-Miami, and three times weekly round-trip service in
    the Miami-Belo Horizonte market.

[^4]: American holds the requisite authority to provide the services
    requested here ([see]{.underline} Notice of Action Taken dated

    March 16, 2006, Docket DOT-OST-1996-1353, and timely renewal
    application filed January 3, 2008).

[^5]: See July 7, 2008 Notice, note 1 and accompanying text, for a list
    of the eligible points.

[^6]: With respect to the frequencies allocated here, the carriers may
    only serve points in the North, Northeast, and Midwest regions of
    Brazil and/or Belo Horizonte.

[^7]: In light of the fact that no party opposed the carriers' July 16
    applications (seeking allocations for a greater number of
    frequencies than those requested in the carriers' July 29 amended
    applications), and in the interest of ensuring prompt use of the
    valuable authority that is immediately available, we are granting
    the joint motion and taking action here without awaiting expiration
    of the 15-day answer period for the amended applications.