BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

Applications of 

DELTA AIR LINES, INC. 

AMERICAN AIRLINES, INC. and 

US AIRWAYS, INC. 

 

for frequency allocations 

(U.S. - Brazil) 

)

)

)

)

)

)

)

)

)

Docket DOT-OST-2013-0045 

 DOT-OST-2013-0041 

 DOT-OST-2013-0046 

 

CONSOLIDATED REPLY OF DELTA AIR LINES, INC. 

Communications with respect to this document should be addressed to: 

 

Glen Hauenstein 

Executive Vice President, Network Planning & 

Revenue Management 

Robert J. Cortelyou 

Senior Vice President – Network Planning 

DELTA AIR LINES, INC. 

1030 Delta Boulevard 

Atlanta, Georgia 30320 

Andrea Fischer Newman 

Senior Vice President – Government Affairs 

DELTA AIR LINES, INC. 

1212 New York Avenue, N.W. 

Washington, D.C. 20005 

Alexander Van der Bellen 

Managing Director – Government Affairs 

 & Associate General Counsel 

Chris Walker 

Regional Director – Government Affairs 

DELTA AIR LINES, INC. 

1212 New York Avenue, N.W. 

Washington, D.C. 20005 

(202) 842-4184 

sascha.vanderbellen@delta.com

March 22, 2013 

 
BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

Applications of 

DELTA AIR LINES, INC. 

AMERICAN AIRLINES, INC. and 

US AIRWAYS, INC. 

 

for frequency allocations 

(U.S. - Brazil) 

)

)

)

)

)

)

)

)

)

Docket DOT-OST-2013-0045 

 DOT-OST-2013-0041 

 DOT-OST-2013-0046 

 

CONSOLIDATED REPLY OF DELTA AIR LINES, INC.1

US Airways filed a seven-page brief, which goes to great lengths to evade 

Delta’s simple and legitimate request for additional information. It is important for 

interested parties and the Department to have access to the relevant facts in order to 

reach the best public interest decision. 

The facts US Airways has put forward in this proceeding are inconsistent with the 

facts it represented when it applied for approval of its Sao Paulo frequency lease with 

United. US Airways refuses to disclose why it now needs additional frequencies in 

October 2013 to continue Charlotte-Sao Paulo service -- when US Airways already has 

a DOT-approved lease with an initial term that runs through summer 2015, and when US 

Airways will receive additional frequencies from Delta allowing for the continuation of 

Charlotte-Sao Paulo service thereafter. 

US Airways has already backed away from the claim in its application that 

“unless US Airways receives the necessary frequencies available for service beginning 

October 1, 2013, it would be required to suspend its existing Charlotte-Sao Paulo 

 

1 To the extent necessary, Delta requests leave to file this brief reply, which is necessary 

to correct inaccurate assertions regarding the purpose and intent of Delta’s request for 

additional information.
Reply of Delta 

Page 2

service.”2 In its answer US Airways now says that “barring a revision to the US AirwaysUnited lease, there remains a risk that US Airways could lose the frequencies it requires 

for its Charlotte-Sao Paulo service . . . [and] because of this uncertainty, US Airways 

requested an allocation of seven unrestricted Brazil frequencies available in October 

2013. 3

 In order to have a fair and transparent route case, Delta and interested parties 

need to know the basis of this new “risk” and “uncertainty” that would allegedly alter the 

stated initial term of the United-US Airways lease which ends in summer 2015. If the 

early lease termination and return of frequencies is triggered by the US AirwaysAmerican merger, then US Airways cannot legitimately present itself here as a “separate” 

“independent” or “new entrant” carrier. It is for this reason and this reason only that 

Delta seeks information on the US Airways frequency lease. 

According to the American/US Airways joint website, “We expect the merger to 

be completed in the third quarter of 2013.”4

 Thus, at the very time the October 2013 

opportunities become effective, American and US Airways will be merged. It would not 

be in the public interest for US Airways to obtain addition frequencies under the pretense 

of being “independent” from American, only to combine these frequencies with 

American’s holdings as soon as they are effective. As Delta will demonstrate in the 

route case, it is not in the public interest for American – “new” or old -- to increase its 

dominance of U.S.-Brazil routes. Delta’s proposed new services will provide 

competitive discipline to offset the loss of U.S.-Brazil competition that will result from 

 

2 US Airways application at n.2 (emphasis added).

3 US Airways answer at 5 (emphasis added). 4 http://newamericanarriving.com/investors/whats-happening-next/
Reply of Delta 

Page 3

consolidation of the American and US Airways networks in this important limited-entry 

market.5

 

Delta’s request for information on United’s intended use of the returned US 

Airways frequencies is equally legitimate. In order to evaluate the route case proposals, 

the Department needs to take account of other services in the marketplace. If United 

plans to operate nonstop Sao Paulo service from its Los Angeles or Chicago hubs, it 

would impact American’s proposals to operate from those gateways. In conducting 

carrier selection proceedings, the Department has previously required carriers to report 

their intended use of frequencies, including those allocated on a non-gateway specific 

basis. See, e.g. Order 2007-11-23. 

WHERFORE, Delta respectfully requests that its Motion to compel additional 

information be granted. 

 Respectfully submitted,

_________________________________ 

Alexander Van der Bellen 

Managing Director, Government Affairs 

 & Associate General Counsel 

DELTA AIR LINES, INC. 

 

5

The full grant of Delta’s proposal will maximize benefits to the traveling public and 

promote the most competitive market structure possible in the existing circumstances. If 

American’s and US Airway’s proposals were granted here, and Delta’s was not, post 

merger American would have 82 unrestricted Brazil frequencies, Delta 16, and United 

35. On the other hand, if Delta’s proposal is granted in full, American would still be the 

dominant carrier, but with a much more competitive distribution of unrestricted 

frequencies: 61 for American, 37 for Delta, and 35 for United. 

 
CERTIFICATE OF SERVICE 

 A copy of the foregoing Motion has been served this 22nd day of March, 2013, upon 

the following persons via email: 

 

Francis.Heil@aa.com 

Robert.Wirick@aa.com 

howard.kass@usairways.com 

benjamin.slocum@usairways.com 

dan.weiss@united.com 

thomas.bolling@united.com 

paul.gretch@dot.gov 

esta.rosenberg@dot.gov 

brian.hedberg@dot.gov 

brett.kruger@dot.gov 

urskr@state.gov 

joe.cambron@wcaa.us 

brubinst@panynj.gov 

louis.miller@atlanta-airport.com 

Steve.Luben@atlanta-airport.com 

info@airlineinfo.com