BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

Application of

DELTA AIR LINES, INC.

for a frequency allocation

(Detroit-Sao Paulo, Brazil) ) ) ) ) ) ) ) Docket DOT-OST-2010-0090

Application of

AMERICAN AIRLINES, INC.

for an allocation of 11 U.S.-Brazil frequencies ) ) ) ) ) ) ) Docket DOT-OST-2010-0088

CONSOLIDATED ANSWER OF DELTA AIR LINES, INC. TO MOTIONS OF AMERICAN AIRLINES, INC.

Communications with respect to this document should be addressed to:

Glen Hauenstein Executive Vice President – Network Planning and Revenue Management

Robert J. Cortelyou Senior Vice President – Network Planning Andreas Renner Director – International Network Planning Chris Kennedy General Manager – International Network Analysis 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 Jeff Morgan 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

April 16, 2010BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

Application of

DELTA AIR LINES, INC.

for a frequency allocation

(Detroit-Sao Paulo, Brazil) ) ) ) ) ) ) ) Docket DOT-OST-2010-0090

Application of

AMERICAN AIRLINES, INC.

for an allocation of 11 U.S.-Brazil frequencies ) ) ) ) ) ) ) Docket DOT-OST-2010-0088

CONSOLIDATED ANSWER OF DELTA AIR LINES, INC. TO MOTIONS OF AMERICAN AIRLINES, INC.

Delta Air Lines, Inc. (“Delta”) hereby answers the motions of American Airlines in

the captioned dockets which seek immediate approval of its own U.S.-Brazil services

and to dismiss Delta’s request for additional frequencies to support daily Detroit-Sao

Paulo service. As explained in Delta’s application, the 14 frequencies at issue here are

eligible for service at Sao Paulo as soon as Brazil is able to solve the infrastructure

constraints at the Guarulhos International Airport.

Delta appreciates the Department’s swift action to approve our request for

Detroit-Sao Paulo exemption authority, which was granted by NOAT dated April 15,

2010 in docket OST-2010-0089. This service w ill provide the important benefits of a

new nonstop flight from a major hub in an underserved region of the country. However,

Delta is only able to operate at a level of two weekly flights using its limited allocation of

Sao Paulo frequencies. In terms of public benefits, enabling Delta to increase DetroitSao Paulo from two to seven flights is a far superior long-term use of frequencies thanAnswer of Delta Page 2

American’s to offer duplicative service on the well-served New York-Rio de Janeiro route

and to serve the small Miami-Brasilia market.

Contrary to the assertions in American’s motions, this proceeding is not a zerosum game -- and there is no need to foreclose the future opportunities Delta needs to

increase Sao Paulo service from Detroit. The Department can readily achieve a public

interest maximizing result that will promote the full implementation of American’s current

services and Delta’s future expansion through the prudent allocation and redistribution of

existing frequencies.

American requests a total of 11 frequencies – 7 for New York-Rio de Janeiro

service and 4 for Miami-Brasilia. The Miami-Brasilia flights are eligible for service using

the lower category of northern/regional Brazil frequencies – and do not require high

value Rio/Sao Paulo rights. There is also a strong expectation that the U.S. Government

will be able to negotiate substantial further liberalization of northern/regional frequencies

– but that securing future Sao Paulo frequencies from the Government of Brazil will be

more difficult. Moreover, American already holds the lion’s share of unrestricted Brazil

frequencies with a total of 47 to Delta’s 23.

In these circumstances, Delta proposes that 4 of Delta’s 10 northern/regional

frequencies be reallocated to American for Miami-Brasilia service – and that Delta

receive 4 replacement frequencies eligible for future Sao Paulo service from the

currently available pool of 14 frequencies. Th is provides American with all the authority

necessary to implement its current service plans , provides Delta with the future ability to

fund 4 daily Detroit-Sao Paulo flights, and leaves 3 Sao Paulo-eligible frequencies

available to any carrier in the unallocated pool. 1 Delta will use the replacement

frequencies to fund its existing northern/regional services and is confident that future

negotiations will provide the necessary frequenc ies to implement additional Detroit-Sao

1 Delta plans to seek the 5 th Sao Paulo-eligible frequency required for daily Detroit-Sao Paulo service from the unallocated pool in the future.Answer of Delta Page 3

Paulo services without disruption to the northern/regional services. Thus, Delta’s

proposed allocation will promote the maximum utilization of current bilateral rights, will

enhance the long-term competitive market structure, and promote the introduction of

important additional services from under served gateways and underserved regions of

the United States.

WHEREFORE, Delta moves that American’s motions be denied, and that the

Department allocate and redistribute the available U.S.-Brazil frequencies to maximize

public interest benefits as described above.

Respectfully submitted,

_________________________________ Alexander Van der Bellen Managing Director, Government Affairs & Associate General Counsel DELTA AIR LINES, INC.CERTIFICATE OF SERVICE

A copy of the foregoing Answer has been served this 16th day of April, 2010, upon the following persons via email:

carl.nelson@aa.com howard_kass@usairways.com benjamin.slocum@usairways.com hkamen@coair.com dan.weiss@coair.com rbkeiner@crowell.com (for Continental) mrosia@crowell.com (for Continental) jeffrey.manley@united.com julie.oettinger@united.com robert.land@jetblue.com jhill@dlalaw.com (for JetBlue) dkirstein@yklaw.com (for Spirit) jyoung@yklaw.com (for Spirit) paul.gretch@dot.gov esta.rosenberg@dot.gov brian.hedberg@dot.gov byerlyjr@state.gov john.allen@faa.gov lester.robinson@wcaa.us emily.neuberger@wcaa.us joe.cambron@wcaa.us mike.orr@airlineinfo.com