Order 20 10

- 1 1

- 12

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 12 th day of November

, 20 10

Served: November 12

, 2010

Docket DOT

- OST

- 2010

- 0241

FINAL ORDER

By Order 2010

- 10

- 6, we issued a tentative decision In the Matter of Brazil Cargo
Charter Authorization s . We tentatively determined that, for the 2010/2011 charter year, it was in the pub lic interest to allow scheduled carriers immediate but limited access to

the ad hoc charter pool in the U.S.

- Brazil market without the need for a case

- by

- case Department waiver.

Specifically, we tentatively determined to allow carriers holding scheduled authority to request up to 10 charter allocations per month, beginning immediately, for the 2010/2011 charter year, without the need for a waiver from the charter allocation procedures. We also tentatively decided to increase the number of charter flights that may be requested by charter

- only operators from 20 to 30 on a monthly basis, without the need

for a waiver.

Objections to the Department’s tentative decision were due on October 18, 2010. We said that, if no objections were filed, we would deem all further procedural steps to be waived and we would enter an order finalizing our tentative decision. No objections were filed.

We have therefore decided to make final our tentative decision in Order 2010

- 10

- 6. We will begin implementing the modified proc edures upon issuance of this final order. In the Matter of Brazil Cargo Charter

Authorizations2 For completeness and clarity, we have included in this Order all of the procedural rules that will be applicable to carriers seeking a distribution of U.S.

- Brazil charter flights. 1

Reporting requirements

As w e stated in Order 2010

- 10

- 6, our ability to administer the ad hoc charter pool efficiently and effectively depends upon our knowing, at any time, how many flights remain in the charter pool for distribution. We must rely upon prompt and accurate reporting , no later than the tenth day of each month, of flight usage during the prior month by incumbent carriers holding an advance allotment and those receiving ad hoc allotments from the pool. The reporting requirements that have applied to charter

operators a re the same reporting requirements that will apply to scheduled carriers.

Carriers must return unused charters promptly should plans for using them not materialize. As we have previously stated, “[w]here charter rights are limited, it is imperative that full, effective use be made of the available charter opportunities.” 2 We remind carriers that we will not be prepared to distribute additional charters to a carrier requesting them where the carrier has not yet reported its usage for the prior month and returned any unused charters to the pool.

All reports and notifications that would be required under the terms of this order should be submitted to the Office of International Aviation by electronic mail to the following

addresses: Bernice.Gray@dot.gov and Esta.Rosenberg@dot.gov

.

ACCORDINGLY,

1. We make final, effective immediately, our tentative findings, conclusions, and

decisions in Order 2010

- 10

- 6 to modify an d further streamline the simplified procedures for distributing the available U.S.

- Brazil all

- cargo round

- trip charters available to U.S. carriers for operation in the U.S.

- Brazil market for the 2010/2011 charter year;

2. The advance allotments issued b y the June 11, 2010 Brazil Charter Notice for operations in the 2010/2011 charter year, as well as distributions to charter and scheduled

U.S. carriers on an ad hoc basis, are therefore subject to the following conditions and procedures:

A. Subject to C., be low, for the first three months of the charter year, the period July 1

- September 30, only those carriers that have not received or accepted an advance allotment may have access to the ad hoc charter pool; distributions

will be made on a first

- come, first

- served basis and eligible applicants may request and operate up to 30 charters per month;

1 The procedural rules appe ar in ordering paragraphs 2 through 4 this Order. These rules reflect the existing procedures set forth in Order 2009

- 1

- 5, as modified by this action. We recognize that the timeframe for certain reporting requirements has already passed. C arriers that h ave already provided the required notifications need not resubmit them.

2 See Order 98

- 6

- 4, at footnote 4.3 B. Any c arrier that has received and accepted an advance allotment is not eligible to obtain flights from the ad hoc charter pool during the first three months of

the charter year, i.e., until October 1. Beginning October 1, a carrier that has received and accepted an advance allotment may request and operate up to 30 charters per month, consistent with th e terms of this order;

C. A carrier holding scheduled authority i n the U.S.

- Brazil market may have

access to the ad hoc charter pool beginning immediately to request and operate up to 10 charters per month;

D. Beginning May 1, there are no restrictions on the number of charters for which a carrier may apply for each month remaining in the charter year;

E. Carriers may continue to request distributions of flights on an ad hoc basis from the charter pool within 30 days of the proposed date of operation. Requests for distributions from the ad hoc charter pool may also be filed for an entire calendar month, beginning on the 15 th day of the prior month;

F. Each application must identify (a) the number of flights requested, (b) proposed flight dates including a four

- day service window, (c) the charterer(s), (d) the city

- p air, and markets involved by direction. Copies of the charter contract, or some form of written evidence of the charter commitment is required at the time a distribution from the charter pool is requested.

G. Each carrier granted either an advance allotment or a distribution of flights

from the ad hoc charter pool for a given month is required to report to the U.S. Air Carrier Licensing Division, Office of International Aviation, by electronic mail, by the tenth day of the following month, or within 10 days of having used all of its pool charters, whichever is earlier, the following; (a) if the reported flights were from the ad hoc charter pool, the date of the Notice of Consistency under which the flight was operated; (b) the number of Brazil all

cargo chart ers operated during the preceding month; (c) the city

- pairs served by direction; (d) the date of each flight; (e) the charterers(s); and (f) the number of charters for which Brazilian authority was obtained for that month which subsequently were canceled o r rescheduled. 3 Unless its advance allotment has been exhausted, a carrier that has received an advance allotment is required to report its usage from the allotment, on a monthly basis, consistent with this order, even if it operated no charters in the pr eceding month; and

3 Carriers are advised that they must follow the Brazilian government’s procedures for notification of change or cancellation or be subject to forfe iture of those charter flights by the Brazilian government and that they should include a statement verifying that the Government of Brazil has been notified in writing of any changes and/or cancellations of flights.4 H. In addition to the reporting requirements in paragraph G., above, a carrier that has received an advance allotment must inform the U.S. Air Carrier Licensing

Division (X

- 44) , Office of International Aviation, by electronic mail, by

Ja nuary 5 of each charter year after 2009, of the number of charters it has operated or has committed to operate by a firm contract. 4 For charters under contract, the carrier shall indicate the charterer(s), d ates, and city

- pair markets.

Where a carrier ha s not used or committed for use, at least 40 percent of its allocated charters in the first six months of the charter year (July 1

- December 31), that carrier will forfeit a portion of its allotment. A forfeiting carrier may retain, for the second half of the charter year, that portion of its advance allotment that is equal to the number of charters used or committed for use in the first half of the charter year. The forfeited flights will be returned to the

ad hoc charter pool;

3. For the current charter year, we require that each carrier holding an advance allotment

of U.S.

- Brazil all

- cargo charters inform the U.S. Carrier Licensing Division (X

- 44), Office of International Aviation, by electronic mail, no later than 10 days after the service

date of Orde r 2009

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- 5 issued January 14, 2009

, if it has not yet done so, as to how many of the flights in its advance allotment it has plans to operate and how many it is returning to the charter pool; 5

4. A ny carrier holding an advance allotment of U.S.

- Brazil all

- cargo charters that elects to opt out of its advance allotment as set forth in the May 30, 2008 Brazil Charter Notice

must so notify the U.S. Carrier Licensing Division (X

- 44), Office of International Aviation, by electronic mail, no later than 10 days af ter the service date of Order 2009

- 1

- 5 issued January 14, 2009 ;

5. We delegate to the Director of the Office of International Aviation authority to administer distribution of flights from the ad hoc charter pool and, where deemed in the public interest, to waive the restrictions set forth in this order for all U.S. certificated air carriers;

6. We will not entertain petitions for reconsideration of this order; and

4 The annual reporting requirement for the current charter year is set forth in paragraph 3, below.

5 We remind carriers receiving advance allotments of the importance of returning charters promptly at any time should the plans for their use not materialize.5 7. We will serve a copy of this order on U.S. air carriers holding an advance allotment under the June 11, 2010 Brazil Charter Notice; all other U.S. certificated air carriers operating large aircraft; the Ambassador of Brazil in Washington, D.C. and the U.S. Department of State (Office of Aviation Negotiations).

By:

SUSA N L. KURLAND Assistant Secretary for

Aviation and International Affairs

(SEAL)

An electronic version of this document is available on the World Wide Web at http://www.regulations.gov