Order 2013-7-4

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on the 3rd day of July, 2013

Served: July 3, 2013

FINAL ORDER

By Order 2013-6-16, we tentatively awarded (1) the 14 weekly combination frequencies that may be used to serve any point in Brazil, wh ich become available October 1, 2013, as follows: seven weekly frequencies to American Airlines , Inc. (American), for its proposed Los AngelesSao Paulo service; and seven week ly frequencies to Delta Air Line s, Inc. (Delta) for its proposed Atlanta-Sao Paulo service; and (2 ) the 14 weekly combination frequencies that may be used to serve any point in Brazil, whic h become available October 1, 2014; as follows: seven weekly frequencies to Delta for its propo sed Detroit-Sao Paulo service; a nd seven weekly frequencies to US Airways, Inc. (US Airways) for its proposed Charlotte-Sao Paulo service.

Objections to our tentative d ecision were due on July 1, 2013, with answers due July 8, 2013. No objections were filed. In light of the fact th at no objections were filed and for the reasons set forth in Order 2013-6-16, we have deci ded to finalize our tentative decision.

Terms, Conditions and Limitations

Consistent with our tentative decision, we w ill impose a startup condition for each award. We will require the selected carriers to institute their proposed serv ices within 90 days of their proposed startup dates.

In addition, consistent with our standard practice, the frequencies allocated in this proceeding are subject to our standard 90-day dormancy conditi on, wherein any frequencies not utilized for a period of 90 days (once inaugurated) will be deem ed dormant and the allocation with respect to each such frequency will expire automatically an d the frequency will revert to the Department

for reallocation. In the Matter of the

2013/2014 U.S.-BRAZIL COMBINATION
FREQUENCY PROCEEDING Docket DOT-OST-2013-00722 ACCORDINGLY,

1. We allocate to American Airlines, Inc. seve n weekly combination frequencies to engage in scheduled foreign air transpor tation of persons, property, an d mail between Los Angeles, California, and Sao Paulo, Brazil, effective October 1, 2013;

2. We allocate to Delta Air Lines, Inc. seve n weekly combination frequencies to engage in scheduled foreign air transporta tion of persons, property, and mail between Atlanta, Georgia, and Sao Paulo, Brazil, effective October 1, 2013;

3. We allocate to US Airways, Inc. seven weekly combination frequencies to engage in scheduled foreign air transpor tation of persons, property, and mail between Charlotte, North Carolina, and Sao Paulo, Braz il, effective October 1, 2014;

4. We allocate to Delta Air Lines, Inc. seve n weekly combination frequencies to engage in scheduled foreign air transporta tion of persons, property, and ma il between Detroit, Michigan, and Sao Paulo, Brazil, effective October 1, 2014;

5. The frequency allocations in ordering paragrap hs 1 through 4 above will remain in effect indefinitely, provided that the holder continues to hold the necessary underlying authority to serve
the markets authorized; that the holder begins service with the allocated frequencies within 90 days of its proposed startup date; 1 and also provided further that the frequencies will become dormant and will revert automatically to the Department if they are not used for a period of 90 days (once inaugurated);

6. We grant US Airways, Inc. exemption au thority to engage in scheduled foreign air transportation of persons, property, and mail between any point or poin ts in the United States via intermediate points to any point or points in Brazil. 2 The exemption authority granted by this order is effective immediately and will remain in e ffect for two years from the issue date of this order, subject to conditions ( see Appendix);

7. We deny the remaining requests in this proceeding; and

1 For the frequencies that become available October 2013 , the proposed startup dates are as follows: American proposes to commence Los Angeles-Sao Paulo service beginning November 21, 2013; and Delta proposes to begin a second daily Atlanta-Sao Paulo servi ce beginning December 15, 2013. For th e frequencies that become available October 2014, the proposed startup dates are as follows: De lta proposes to continue Detroit-Sao Paulo service using the frequencies awarded here on March 1, 2015, consistent with its transfer of frequencies to US Airways; and US Airways proposes to continue Charlotte-Sao Paulo service using the frequencies awarded here on October 25, 2014, consistent with the termination of its lease arrangement with United Airlines, Inc.

2 US Airways holds the requisite economic authority for its Charlotte-Sao Paulo service, but has requested broad exemption authority for all U.S. and Brazil points.3 8. We will serve this order on the partie s to the captioned docket, the Brazilian Ambassador to the United States in Washingt on, DC, the Federal Aviation Administration, and the U.S. Department of State (Office of Aviation Negotiations).

By:

Susan 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.gov4 Appendix A

U.S. Carrier Exemption Conditions

In the conduct of the operations authoriz ed, the U.S. carrier applicant(s) shall:

(1) Hold at all times effective operating authority from the government of each country served;

(2) Comply with applicable requirements concer ning oversales contained in 14 CFR 250 (for scheduled operations, if authorized);

(3) Comply with the requirements for reporting data contained in 14 CFR 241;

(4) Comply with requirements for minimum insuran ce coverage, and for certifying that coverage to the Department, contained in 14 CFR 205;

(5) Except as specifically exempted or otherwise provi ded for in a Department Order, comply with the requirements of 14 CFR 203, concerning waiver of Warsaw Convention liability limits and defenses;

(6) Comply with all applicable requirements of the Federal Aviation Administration, the Transportation Security Administration, and with all applicable U.S. Government requirements concerning security, including, but not limited to, 49 CFR Part 1544. To assure compliance with all applicable U.S. Government requirements concerni ng security, the holder shall, before commencing any new service (including charter flights) to or from a fore ign airport, contact its Principal Security Inspector (PSI) to advise the PSI of its plans and to find out whether the Transportation Security Administration has determined that security is adequate to allow such airport(s) to be served;

(7) Comply with such other reasonable terms, cond itions, and limitations required by the public interest as may be prescribed by the Department of Transportati on, with all applicable or ders and regulations of other U.S. agencies and courts, and with a ll applicable laws of the United States.

The authority granted shall be effective only during th e period when the holder is in compliance with the conditions imposed above.

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