BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

_____________________________________ 

 ) 

In the matter of the application of ) 

 ) Docket DOT-OST-2010-0072 

 VRG LINHAS AEREAS S.A. D/B/A GOL ) 

) 

for an exemption from 49 U.S.C. §41301 ) 

_____________________________________ ) 

OBJECTION OF US AIRWAYS, INC. 

Communications with respect to this document should be sent to: 

Howard Kass 

Vice President – Legal and Government Affairs 

Benjamin T. Slocum 

Director and Assistant General Counsel 

 

US Airways, Inc. 

1401 H Street, NW, Suite 1075 

Washington, DC 20005 

(202) 326-5153 

howard.kass@usairways.com 

benjamin.slocum@usairways.com 

August 28, 2012 
1 

BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

_____________________________________ 

 ) 

In the matter of the application of ) 

 ) Docket DOT-OST-2010-0072 

 VRG LINHAS AEREAS S.A. D/B/A GOL ) 

) August 28, 2012 

for an exemption from 49 U.S.C. §41301 ) 

_____________________________________ ) 

OBJECTION OF US AIRWAYS, INC. 

US Airways, Inc.1

 hereby objects to the request of GOL for the renewal of its 

exemption authority to engage in “charter foreign air transportation of persons, property, 

and mail between the United States and Brazil, and on other charters ....” (Application 

of GOL, August 9, 2012, Docket DOT-OST-2010-0072, p.1.) 

1. US Airways presently holds seven of the 105 GRU-eligible frequencies 

after the Department of Transportation (“Department”) reallocated these frequencies to 

US Airways and notified the Brazilian government. (See Notice of Action Taken, August 

2, 2010, Dockets DOT-OST-2010-0183 and DOT-OST-2009-0003.) However, US 

Airways remains unable serve Sao Paulo-Guarulhos (GRU) – Brazil’s largest O&D 

market. 

2. For over two years, US Airways has worked with the Brazilian government 

to achieve a clear path to GRU service. This includes reaching an agreement with 

Infraero in late-April 2011 that resolved US Airways’ issues at GRU, and established 

that US Airways would start service in late-2012 (“Agreement”).2

 

1

 Common names are used for carriers. 

2

 US Airways agreed to delay the start of its service to avoid commencing service during a period of 

runway construction that further limited airport capacity. 
Objection of US Airways to Application of GOL 

2 

3. Subsequent to the Agreement, US Airways learned that airport 

construction delays would affect its late-2012 start date. Nevertheless, US Airways 

understood the rest of the Agreement remained intact, and continued working to begin 

GRU service at a date to be agreed upon. 

4. However, at an April 2012 meeting to establish the new start date for US 

Airways’ GRU service, Infraero informed US Airways that because of the privatization of 

GRU, it could not honor the Agreement concerning US Airways’ service. Furthermore, 

no decisions would be made until the new private operator of GRU took control of the 

airport. US Airways was then informed that Infraero and the new private operator had 

not yet begun conversations about operating the airport. 

5. Since that April 2012 meeting, US Airways continues its efforts in Brazil to 

re-establish a timeline for commencement of GRU service, including multiple meetings 

with the new private operator of GRU. 

6. US Airways objects to the renewal of GOL’s exemption authority for 

charter service between the United States and Brazil, at a time when U.S. carriers 

cannot fully utilize all of the negotiated rights they are entitled to under the Agreement 

between the Government of the Federative Republic of Brazil and the Government of 

the United States of America, signed on March 21, 1989, and subsequent bilateral 

agreements (“U.S.-Brazil Agreements”), such as using GRU-eligible frequencies to 
Objection of US Airways to Application of GOL 

3 

serve GRU.3

 Granting these rights would continue the competitive imbalance between 

carriers with and without access to GRU.4

7. The Department has previously declined to grant additional rights to 

foreign carriers where there were concerns about overall market access. For example, 

when Delta and Aeroflot requested to implement a reciprocal codeshare arrangement, 

American and United complained that the Russian authorities refused to authorize their 

third-country codeshare arrangements, despite permissive language in the U.S.-Russia 

bilateral.5

 As a result, the Department waited nearly two years – a period that included 

another round of bilateral negotiations in which the third-country codesharing language 

was amended, and assurances were provided by the Russian government that such 

arrangements would be approved – to approve the Delta-Aeroflot arrangement.6

 

Similarly, the Department has previously declined to grant additional rights to 

foreign carriers where new entrants could not serve specific airports in the foreign 

carrier’s home country. Examples of this include the deferral of US Airways and bmi’s 

request to codeshare between the U.S. and London-Gatwick after Continental objected, 

citing a lack of access to London airports, including London-Heathrow;7

 and denying 

 

3

 The Brazilian government has repeatedly cited domestic laws and local issues as barriers to GRU 

service. However, as the Brazilian government created these issues, it could resolve them as well. 

4

 GOL obtained exemption authority to provide scheduled service between Brazil and the United States, 

after stating that it intended to begin service between GRU and Miami, Florida, via Caracas, Venezuela. 

(See Notice of Action Taken, April 3, 2012, Docket DOT-OST-2012-0039.) 

5 See Docket DOT-OST-2007-26805. 6 See Notice of Action Taken, November 10, 2008, Docket DOT-OST-2007-26805. See also Docket 

DOT-OST-2006-26106 (delaying the approval of Northwest-Aeroflot codesharing 25 months). 7 See Notice of Action Taken, October 1, 2004, Docket DOT-OST-2004-18932.
Objection of US Airways to Application of GOL 

4 

United and bmi’s request for extra-bilateral authority to provide codeshare service at 

London-Heathrow, following the objections of Continental, Delta, and Northwest.8

8. Accordingly, US Airways requests that the Department deny GOL’s 

Application for a Statement of Authorization until such time as US Airways can serve 

GRU using the rights negotiated by the Department and included in the U.S.-Brazil 

Agreements. 

WHEREFORE, US Airways respectfully requests that the Department deny 

GOL’s Application for Renewal of an Exemption until such time as US Airways is able to 

serve GRU, as discussed herein. 

 Respectfully submitted, 

 /s/ Benjamin T. Slocum 

 Howard Kass 

 Vice President – Legal and Government Affairs 

 Benjamin T. Slocum 

Director and Assistant General Counsel 

 

 US Airways, Inc. 

1401 H Street, NW, Suite 1075 

Washington, DC 20005 

 (202) 326-5153 

howard.kass@usairways.com 

benjamin.slocum@usairways.com 

August 28, 2012 

 

8 See Notice of Action Taken, December 3, 2003, Docket DOT-OST-2003-15758.
CERTIFICATE OF SERVICE 

I certify that, on August 28, 2012, I caused to be served a copy of the foregoing 

Objection of US Airways, Inc. by email upon those addressees listed below: 

urskr@state.gov 

esta.rosenberg@dot.gov 

brian.hedberg@dot.gov 

brett.kruger@dot.gov 

john.allen@faa.gov 

dan.weiss@united.com 

steve.morrissey@united.com 

jonathan.linde@united.com 

robert.wirick@aa.com 

francis.heil@aa.com 

james.kaleigh@aa.com 

sascha.vanderbellen@delta.com 

charles.donley@squiresanders.com 

rbkeiner@crowell.com 

gmurphy@crowell.com 

lhalloway@crowell.com 

 /s/ Benjamin T. Slocum 

 

 Benjamin T. Slocum