BEFORE THE 


DEPARTMENT OF TRANSPORTATION 


WASHINGTON, D. C. 


Application of 

AMERICAN AIRLINES, INC. DOT-OST-2010­

0088 

under 49 USC 40109 for allocation of 

11 weekly U.S.-Brazil frequencies 

MOTION OF AMERICAN AIRLINES, INC. 


FOR IMMEDIATE APPROVAL 


Communications with respect to this document should be sent to: 

VIRASB VAHIDI WILLIAM K. RIS, JR. 

Senior Vice President - Senior Vice President ­

Planning Government Affairs 


American Airlines, Inc. American Airlines, Inc. 


P.O. Box 619616, MD 5634 1101 17th Street, N.W. 

DFW Airport, Texas 75161 Washington, D.C. 20036 

KENJI C. HASHIMOTO CARL B. NELSON, JR. 

Vice President - Strategic Associate General Counsel 

Alliances American Airlines, Inc. 

American Airlines, Inc. 1101 17th Street, N.W. 

P.O. Box 619616, MD 5635 Washington, D.C. 20036 

DFW Airport, Texas 75261 (202) 496-5647 

carl.nelson@aa.com 

ROBERT A. WIRICK 

Director, Regulatory 

American Airlines, Inc. 

P.O. Box 619616, MD 5635 

DFW Airport, Texas 75261 

(817) 963-0394 

robert.wirick@aa.com 

April 12, 2010 
BEFORE THE 


DEPARTMENT OF TRANSPORTATION 


WASHINGTON, D. C. 


Application of 

AMERICAN AIRLINES, INC. DOT-OST-2010­

0088 

under 49 

11 weekly 

USC 40109 for allocation of 

U.S.-Brazil frequencies 

MOTION OF AMERICAN 

FOR IMMEDIATE 

AIRLINES, 

APPROVAL 

INC. 

approval 

American Airlines, Inc. hereby moves for 

of its application submitted on April 8, 

imme

2010 

diate 

for 

allocation of 11 weekly U.S.-Brazil combination frequencies. 

American proposes to use this authority to institute daily 

nonstop service between New York JFK and Rio de Janeiro and 

four-days-a-week nonstop service between Miami and Brasilia 

effective October 1, 2010. 

American's request was in response to the Department's Notice issued on March 24, 2010 inviting "certificated 

U.s. air carriers to file applications for the combination 

frequencies that become available effective October 2010 for 

scheduled U.S.-Brazil services." The Department stated that 

"[t]he frequencies at issue here may be used at any points that 

U.s. carriers may serve, subject to the restriction that these 

tional Airport [GRU] until infrastructure-related constraints 

at the ai are removed" (emphasis added). ----------~-----------------
- 2 


The GRU limitation is contained in the U.S.-Brazil 

Memorandum of Consultations, June 26, 2008, Attachment B, Annex 

1, Section II (2), p. 4 n. 5, which states that "the frequencies provided in (D) [7 available October 1, 2009] and (E) [14 

available October 1, 2010] may not be used for services between 

Guarulhos International Airport and points in the United States 

until the regulatory constraints in place as of June 26, 2008, 

re ed to infrastructure at that airport, are removed." 

Delta Air Lines, Inc. was the only other carrier to 

file a Brazil application on the April 8 due date (DOT-OST 

2010 0089). Despite the Department's clear directive inviting 

applications" the combination frequencies that become 

available effective October 2010" (emphasis added), and the 

exclusion of GRU as an eligib point, Delta nonetheless asked 

frequencies to serve Sao Paulo. While Delta "recognizes" 

the Sao Paulo restriction, it contends that frequencies are 

"ultimately" usable at Sao Paulo, and that "long-term" considerations support its request. 
- 3 ­

In the 2009 U.S.-Brazil Combination Frequency Proceeding (DOT-OST-2009-0003), the Department placed issue seven 

Brazil frequenc s available on October 1, 2009 and sect to 

the same GRU restriction appli Ie here. In response, Delta 

sought authority to serve between Atlanta and "the largest and 

most important traffic point eligible for 2009 award service, 

Rio de Janeiro" (January 27, 2009, p. 2, emphasis added). 

Delta repeated that Rio de Janeiro was the largest 

"eligible N Brazil point in its answer on February 12, 2009 (p. 

3). Delta did not apply to serve Sao Paulo, knowing that Sao 

Paulo frequencies were not in issue and that Sao Paulo was 

ineligible for t October 1, 2009 award. 

Nor has any other applicant sought frequencies to serve 

Sao Paulo under Sect II (2) (D) and (E) of the MOU. In t 

2009 proceeding, American, Continental, Delta, Spirit, and US 

Airways each sought to use the authority available October 1, 

2009 to serve Rio de Janeiro. No carrier applied to serve Sao 

Paulo. Now Delta, without explanation, has reversed its 

position on "eligibility" and is the only applicant 2010 

frequencies at Sao o. 
- 4 ­

Delta's application should be dismissed. The 14 frequencies at issue are those "that become available effect 

October 2010" (emphasis added), which does not include ce 

to GRU. As Delta itself declared in seeking re-allocation of 

dormant Brazil frequencies from United Air s, "the Depart 

ment has stated unequivocally that U.S.-Brazil frequencies are 

valuable bilateral rights that should be used and not wasted . 

. , Order 98-12 33 at 11 ('the frequencies available r 

U.S.-Brazil services constitute valuable rights t we do not 

intend to be wast ')" (Application of Delta Air Lines, DOTOST-2004-19161, September 17, 2004, p. 2). 

The Department agreed and granted Delta's request. 

See Order 2005-2-10, February 16, 2005 (show-cause); Order 

2005-4-13, April 12, 2005 (f 1); Order 2005-7-16, July 22, 

2005 (on reconsideration). In the July order, the Department 

stated "as we have made clear throughout this proceeding, it is 

our established policy not to permit valuable operating rights 

to remain unused for an extended period, particul y when 

another carrier has firm plans to use them and the ca r 

holding the authority does not" (p. 3). 
------------------

- 5 ­

The same principle should apply here. The Brazil 

frequencies available on October 1, 2010 are not usable at GRU, 

and neither Delta nor any other carrier should be permitted to 

warehouse these frequencies until some indeterminate future 

date when the GRU restriction might be lifted. Indeed, Delta 

is on record as having opposed a "dormancy waiver [to American] 

to warehouse Brazil frequencies that Delta is ready, willing 

and able to use right now" (Delta Air Lines Reply, DOT-OST2002-11706, March 18, 2002, p. 3). 

On April 8, 2010, American responded to the Department's invitation by presenting firm plans to use 11 of the 14 

Brazil frequencies available October 1, 2010 to serve New York 

(JFK)-Rio de Janeiro and Miami-Brasilia. American's application is within the scope of the Department's invitation and 

should be immediately approved as uncontested. Delta's 

application is outside the scope of the invitation and contrary 

to Delta's own position on "eligibility" in 2009, as well as at 

odds with the Department's "established policy not to permit 

valuable operating rights to remain unused," and should be 

dismissed. 
------

6 ­

Respectfully submitted, 

CARL B. NELSON, JR. 

Associate General Counsel 

American Airlines, Inc. 

April 12, 2010 

-_.__._--------­
--------------------------

CERTIFICATE OF SERVICE 

I hereby certify that I have this day served the foregoing 

document by email on the following persons: 

sascha.vanderbellen@delta.com 

scott.mcclain@delta.com 

sametta.c.barnett@delta.com 

kquinn@pillsburywinthrop.com 

bkeiner@crowell.com 

mrosia@crowell.com 

bruce.rabinovitz@wilmerhale.com 

jeffrey.manley@united.com 

bob.kneisley@wnco.com 

robert.land@jetblue.com 

msinick@ssd.com 

cdonley@ssd.com 

gbleopard@fedex.com 

dvaughan@kelleydrye.com 

kevin.montgomery@polaraircargo.com 

jrichardson@johnlrichardson.com 

lhalloway@crowell.com 

efaberman@wil .com 

mroller@rollerbauer.com 

howard.kass@ .com 

benjamin.slocum@usairways.com 

sophy.chen@hklaw.com 

david.heffernan@wilmerhale.com 

jhill@dlalaw.com 

bill@mietuslaw.com 

mgoldman@sgbdc.com 

rsilverberg@sgbdc.com 

dhainbach@ggh-airlaw.com 

mcmillin@woa.com 

eskraft@jamhoff.com 

dpdean@jamhoff.com 

dkirstein@yklaw.com 

jyoung@yklaw.com 

donna.kooperstein@usdoj.gov 

dwight.moore@ustranscom.mil 

jim.ballough@faa.gov 

byerlyjr@state.gov 

recohn@hhlaw.com 

cjsimpson@zsrlaw.com 

pmurphy@lopmurphy.com 

lachter@starpower.net 

anita.mosner@hklaw.com 

rpommer@atlasair.com 

gmurphy@crowell.com 

russell.bailey@alpa.org 

CARL B. NELSON, JR. 

April 12, 2010