BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

Application of 

DELTA AIR LINES, INC. 

 

for a frequency allocation 

(U.S. - Brazil) 

) 

) 

) 

) 

) 

) 

) 

Docket DOT-OST-2013- 

APPLICATION OF DELTA AIR LINES, INC. 

Communications with respect to this document should be addressed to: 

 

Glen Hauenstein 

Executive Vice President, Network Planning & 

Revenue Management 

Robert J. Cortelyou 

Senior Vice President – Network Planning 

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 

Chris Walker 

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

March 4, 2013 

 
BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

Application of 

DELTA AIR LINES, INC. 

 

for a frequency allocation 

(U.S. - Brazil) 

) 

) 

) 

) 

) 

) 

) 

Docket DOT-OST-2013- 

APPLICATION OF DELTA AIR LINES, INC. 

I. Introduction 

Delta Air Lines, Inc. (“Delta”) is pleased to respond to the Department’s February 

15, 2013 Notice inviting applications for the additional U.S.-Brazil frequencies that 

become available on October 1, 2013 and October 1, 2014. Thanks to the success of 

the U.S. Government in negotiating a new air transport agreement with Brazil, these new 

opportunities arise under the transitional Memorandum of Consultations, which is 

expected to result in full open skies by 2015. The opportunities at issue in this 

proceeding provide an important opportunity address the critical interim need for 

increased service and competition at Sao Paulo, Brazil’s largest and most important 

market. 

 Delta requests the following frequencies from the 2013 tranche: 

 Seven (7) frequencies for Atlanta-Sao Paulo. 

 Seven (7) frequencies for New York (JFK)-Sao Paulo. 

Delta requests the following frequencies from the 2014 tranche: 

 Seven (7) frequencies for Detroit-Sao Paulo. 
Application of Delta 

Page 2 

The limited-entry Sao Paulo market is the largest and most important in South 

America. This is the first time in more than a decade that the Department has the 

opportunity to allocate new Sao Paulo frequencies. While Delta is a strong competitor, it 

faces serious challenges in competing against the dominant U.S.-Brazil incumbent 

carriers, American and United. Improving the competitive market structure is a key 

public interest consideration in this proceeding. The following table shows the current 

distribution of the 105 U.S. “unrestricted” frequencies currently available for service to 

Sao Paulo: 

American leads all others with 47 unrestricted frequencies -- nearly half the entire 

U.S. allocation. Following its merger with Continental, United is a strong second place 

challenger with 35 unrestricted frequencies. Delta is disadvantaged by its third place 

standing, with only 23 unrestricted frequencies – less than half of American’s total, and a 

third less than United. Delta is under-represented in terms of its Brazil frequency 
Application of Delta 

Page 3 

allocation relative to Delta’s large U.S. hub network, strong customer base, and 

demonstrated commitment to developing U.S.-Latin American routes. 

The public interest would be best served by the full grant of Delta’s 21 frequency 

proposal, helping to level the playing field against American (which will remain the 

dominant carrier) and to achieve parity with United. Unless corrective action is taken by 

the Department to alleviate the frequency imbalance against Delta, the competitive 

distribution of frequencies will become worse. Under the terms of the Delta/US Airways 

slot swap transaction, Delta is obligated to transfer seven unrestricted frequencies to US 

Airways in summer 2015, prior to Open Skies. At the time it was approved by the 

Department,1

 the Delta/US Airways LGA-DCA slot swap and related Brazil frequency 

transfer was seen as a way to enable new competitive entry by US Airways, which had 

no Sao Paulo frequencies of its own.2

 Now, however, in the wake of the announced 

American/US Airways merger, the contractually obligated transfer of Delta’s unrestricted 

Brazil frequencies would have the unanticipated result of strengthening the dominant 

combined American/US Airways entity, and weakening Delta, already the smallest 

player. 

Delta will respond in detail to the comparative merits of other airline proposals, 

including American’s early-filed application, at the appropriate time in the carrier 

selection process. For now we will simply observe that American has flexibility within its 

current portfolio of 47 Sao Paulo frequencies (including quadruple daily flights at Miami 

and double daily flights at JFK) to operate its Los Angeles and Chicago proposals 

without a further allocation of frequencies in this proceeding. 

 

 

1 See, DOT/FAA Notice granting petition, Docket FAA-2010-0109 (Issued October 7, 2011). 2

 US Airways currently leases seven (7) frequencies from United for Charlotte-Sao Paulo service. 
Application of Delta 

Page 4 

II. Service Proposals 

A. Atlanta-Sao Paulo 

Delta’s first priority for 2013 service3

 is to secure frequencies for a second daily 

Atlanta-Sao Paulo flight. Atlanta is the world’s largest airline hub, and is well situated to 

provide broad network coverage of the entire United States. Atlanta’s location in the 

Southeastern United States provides convenient, competitive, and non-circuitous Sao 

Paulo connections. Delta and its regional affiliates provide nonstop service from Atlanta 

to more than 150 U.S. points, and operate more than 1,000 peak day departures at the 

hub. The availability of new time of day coverage and increased capacity on this route 

will allow more passengers to take advantage of the convenient Atlanta hub gateway. 

As noted above, American provides four daily flights from its large Miami hub, but Delta 

is limited to a single daily flight at Atlanta. 

Minimum frequencies: Delta requires a minimum of seven frequencies for its 

proposed second daily Atlanta-Sao Paulo service. The service will be operated on a 

year-round basis. 

Start date: Delta would prefer to start December 15, 2013, consistent with the 

seasonal upswing in peak holiday demand, but could start as soon as the beginning of 

the IATA winter traffic season on October 27, 2013, if required. Delta respectfully 

requests a startup condition of a minimum of 120 days from a final award to allow for 

adequate advance preparation and marketing. 

Aircraft: Delta will use Boeing 767-300ERs, equipped with 35 Business Elite 

seats, 32 Economy Comfort (premium economy) seats, and 143 economy class seats. 

Delta’s BusinessElite cabin features new, state-of-the-art flat bed seats, video on 

 

3 While Delta’s preference is for 2013 frequencies, Delta would accept an award of 2014 

frequencies for either of its Atlanta or New York proposals. 
Application of Delta 

Page 5 

demand entertainment system, and award-winning food and wine service. The new 

service would be funded from Delta’s existing fleet of 58 767-300ERs. 

B. New York (JFK)-Sao Paulo 

Delta’s second priority for 2013 is to secure frequencies for a second daily New 

York (JFK) - Sao Paulo flight. American has two JFK-Sao Paulo flights to Delta’s one, 

enabling American to offer more time channels and to compete more effectively for 

business customers. United’s large Newark hub, combined with a codeshare presence 

on TAM’s JFK flight also give it a marketing advantage in New York. A second daily 

Delta JFK-Sao Paulo flight will improve Delta’s offering, creating new options for 

customers, and more vigorous competition in the marketplace. 

We incorporate by reference the minimum frequency requirements, start date, 

and aircraft details above. (Each of Delta’s proposals would be operated independent of 

the others). 

C. Detroit-Sao Paulo 

Continuation of Delta’s daily Detroit-Sao Paulo flight is a vital public interest 

concern and Delta’s first and only priority for 2014 frequencies. As previously discussed, 

Delta is contractually obligated to transfer seven weekly unrestricted frequencies to US 

Airways as part of the DOT-approved DCA/LaGuardia slot swap transaction. It is very 

important that Delta receive an allocation of frequencies to offset the required transfer to 

US Airways, which is now American’s merger partner, and will form a combined entity 

with a massive portfolio of U.S.-Brazil frequencies. An allocation of frequencies to Delta 

is important to ensure that Detroit will continue to receive service, and that Delta’s third 

place frequency allocation is not further undermined by loss of slots. 
Application of Delta 

Page 6 

Delta is obligated to transfer seven Sao Paulo frequencies to US Airways no later 

than the start of the Summer 2015 IATA season in March,4

 and would use the October 

2014 frequency allocation requested here to ensure the uninterrupted continuation of 

daily, year-round Detroit-Sao Paulo service following the transfer. The flights will 

continue to operate using B-767-300ER aircraft. 

III. Conclusion 

Delta respectfully submits that the public interest would be best served by the 

grant of 21 frequencies for the Atlanta, New York, and Detroit - Sao Paulo services 

described above. 

 Respectfully submitted,

_________________________________ 

Alexander Van der Bellen 

Managing Director, Government Affairs 

 & Associate General Counsel 

DELTA AIR LINES, INC. 

 

4

 While Brazil is expected to become open skies by October 2015, it would be extremely 

costly and disruptive if Delta were forced to cancel service for the 2015 Summer season. 

In addition, while Delta shares the Department’s optimism that Open Skies will take 

effect by October 2015, there are important further steps that must be taken by the 

Government of Brazil to ratify the agreement, which create some degree of uncertainty 

and concern. 
CERTIFICATE OF SERVICE 

 A copy of the foregoing Application has been served this 4th day of March, 2013, 

upon the following persons via email: 

 

Francis.Heil@aa.com 

howard.kass@usairways.com 

benjamin.slocum@usairways.com 

dan.weiss@united.com 

anbird@fedex.com 

jhill@dowlohnes.com 

robert.land@jetblue.com 

kevin.montgomery@polaraircargo.com 

jyoung@yklaw.com 

dkirstein@yklaw.com 

anita.mosner@hklaw.com 

paul.gretch@dot.gov 

esta.rosenberg@dot.gov 

brian.hedberg@dot.gov 

brett.kruger@dot.gov 

urskr@state.gov 

joe.cambron@wcaa.us 

brubinst@panynj.gov 

louis.miller@atlanta-airport.com 

steve.luben@atlanta-airport.com 

info@airlineinfo.com