BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

Application of 

AMERICAN AIRLINES, INC. 

 

for a frequency allocation 

(DFW-Rio de Janeiro) 

) 

) 

) 

) 

) 

) 

) 

Docket DOT-OST-2010-0179

ANSWER OF DELTA AIR LINES, 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

July 23, 2010 

 
BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

Application of 

AMERICAN AIRLINES, INC. 

 

for a frequency allocation 

(DFW-Rio de Janeiro) 

) 

) 

) 

) 

) 

) 

) 

Docket DOT-OST-2010-0179

ANSWER OF DELTA AIR LINES, INC. 

Delta Air Lines, Inc. (“Delta”) opposes American’s application for three additional 

unrestricted frequencies for DFW-Rio de Janeiro service. With 58 unrestricted Brazil 

frequencies at its disposal, American has more than twice the unrestricted Brazil 

frequencies of any other U.S. carrier, and American’s holdings comprise nearly half the 

entire U.S. flag total. American’s request comes on the heels of the recently concluded 

Brazil allocation proceeding where American was just awarded 11 additional unrestricted 

frequencies. The award of further unrestricted frequencies to American here would be 

contrary to the public interest because it would frustrate the introduction of competitive 

services by Delta and other U.S. carriers. 

American expressed its first and only interest in DFW-Rio de Janeiro only after

Delta requested surplus frequencies from the unallocated pool that are necessary to 

fund Delta’s planned expansion on the Detroit-Sao Paulo route. American expressed 

no interest in DFW-Rio de Janeiro when the Department invited applications on March 

24, 2010. And American expressed no interest in the remaining frequencies at the 

conclusion of the route case until after Delta filed its request. It is highly ironic that 

American would accuse Delta of filing “an anticompetitive application” which would 
Answer of Delta 

Page 2 

“empty[] the unallocated pool of unrestricted frequencies, and thereby prevent[] another 

carrier from providing new service . . .”1

 That is exactly what American is trying to do. 

Delta’s proposal, by contrast, will promote new entry and competition against American, 

the dominant carrier in the U.S.-Brazil marketplace. 

Delta has been very consistent and very candid that it is seeking additional 

unrestricted frequencies in order to fund the expansion of service on the Detroit-Sao 

Paulo route. Delta will begin that service in October, but Delta’s limited frequency 

holdings only allow it to offer two weekly flights -- which is below the level necessary to 

attract business passengers who demand regular and frequent service. American’s 

preemptive application for DFW-Rio de Janeiro is designed to deprive Delta of the 

limited entry rights that are necessary to establish a long-term, viable, competitive 

service at Detroit. 

Today, Delta is filing a new application which seeks three additional unrestricted 

frequencies for Atlanta-Rio de Janeiro service. This will enable the redeployment of 

unrestricted frequencies to Detroit-Sao Paulo, so that the new Detroit flight can 

commence at a level of five weekly flights in October. Thus, Delta will fully and 

immediately use these rights. 

There is significant unmet demand for U.S.-Sao Paulo service, whereas Rio de 

Janeiro is saturated with new service. In the last two years US Airways commenced 

daily nonstop Charlotte-Rio de Janeiro service and Continental began daily Houston-Rio 

de Janeiro service – immediately adjacent to American’s proposed DFW gateway. 

American itself was just awarded seven frequencies for JFK-Rio de Janeiro – a route it 

has struggled to operate for more than a decade. American has yet to absorb its JFKRio de Janeiro award – and its motives for seeking still more Rio de Janeiro capacity 

 

1 AA Application at 3; AA Answer OST-2010-0162 at 1.
Answer of Delta 

Page 3 

from Dallas are suspect. American’s tactics here are reminiscent of the 2007/2008 U.S.-

Colombia case where American sought to occupy and maneuver frequencies in order to 

block competitive applications by new entrants. The Department would not stand for it in 

Colombia, and, we believe, the Department should not permit American to engage in 

similar tactics in Brazil. See Order 2008-5-27. 

Based on MIDT data for the year ended May, 2010, Detroit-Sao Paulo generated 

over 12,000 O&D passengers compared to just 5,000 local passengers traveling 

between DFW and Rio de Janeiro. DFW contributes little in terms of network benefits, 

since American already serves virtually all points claimed in its application from Miami 

(with more to be duplicated from New York this year). 

Delta does not have enough Sao Paulo frequencies to adequately fund its Detroit 

service and, in terms of its overall competitive footprint at Sao Paulo, is at a serious 

disadvantage to American. Today, Delta operates just 14 weekly Sao Paulo frequencies 

from Atlanta and JFK. American, on the other hand, operates an astonishing 37 weekly 

Sao Paulo frequencies from Miami, New York and DFW. 

Given American’s commanding share of U.S. flag frequencies to Brazil, Delta 

does not believe that the award of any further authority to American is warranted at this 

time. However, Delta filed a letter today informing the Department of Delta’s intent to 

return three northern/regional frequencies effective September 7, 2010. Delta has 

determined to cease service to Fortaleza and has no further plans for these frequencies. 

If the Department were inclined, it could grant these three northern/regional frequencies 

to American, enabling American to shift three of its 11 recently-awarded unrestricted 

frequencies from northern/regional routes to DFW-Rio de Janeiro. 

 
Answer of Delta 

Page 4 

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 23rd day of July, 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 

jeffrey.manley@united.com 

steve.morrissey@united.com 

robert.land@jetblue.com 

jhill@dlalaw.com 

dkirstein@yklaw.com 

jyoung@yklaw.com 

paul.gretch@dot.gov 

esta.rosenberg@dot.gov 

brian.hedberg@dot.gov 

byerlyjr@state.gov 

john.allen@faa.gov 

Emily.Neuberger@wcaa.us 

Joe.Cambron@wcaa.us 

mgoldman@sgbdc.com 

info@airlineinfo.com