			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on December 23, 2005

NOTICE OF ACTION TAKEN -- DOCKET OST-97-2338

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This serves as notice to the public of the action described below, taken
by the Department official indicated (no additional confirming order
will be issued in this matter).

Notice of DELTA AIR LINES, INC. (DELTA), filed 12/15/05 to: 

Use its route integration authority to integrate its certificate and
exemption authorities and commence new nonstop service between New York
(JFK) and Sao Paulo, Brazil, effective April 1, 2006.  Delta intends to
utilize a portion of its existing allocation of 21 U.S.-Brazil
frequencies to offer nonstop service at New York.  Delta is providing
advance notice consistent with its route integration authority.  

At Delta’s request, and with no objection from the carrier
representatives served by Delta, the Department issued a notice
shortening the answer period from December 30, 2005, to December 21. 
Continental Airlines, Inc. (Continental) filed an answer on December 21,
objecting to issuance by the Department of a confirming notice without
first evaluating applicable public interest considerations and giving
other carriers an opportunity to apply for the frequencies Delta seeks
to move in the limited entry U.S.-Brazil market.  Continental states
that Delta had stressed the importance of its Atlanta hub gateway in an
earlier proceeding in support of an award to Delta of frequencies to
serve Brazil, and that those considerations would no longer apply if the
frequencies were shifted to New York, where Continental already offers
daily New York-Sao Paolo service at Newark Liberty International
Airport.  

On December 22, 2005, Delta replied to Continental’s answer, noting
that, under Department Order 2004-6-25, U.S.-Brazil frequencies may be
used in any city-pair market, and that Delta holds the necessary
economic authority to serve JFK-Sao Paolo, subject only to the advance
notice requirement of its route integration exemption.  Delta also
pointed out that under the route integration conditions applicable here,
the Department will only entertain requests by other carriers for
limited entry route rights that are not then being used by the carrier. 
Delta states that it is currently using its 21 allocated Brazil
frequencies.

Applicant rep:   Alexander Van der Bellen (202) 637-8382    DOT Analyst:
 Esta Rosenberg (202) 366-0572

D I S P O S I T I O N

XX  Granted (See Remarks)

The above action was effective when taken: December 23, 2005.

Action taken by:   Paul L. Gretch, Director	

		      Office of International Aviation	

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Remarks:  Upon review of Delta’s December 15, 2005 notice, and the
provisions of Order 2004-6-25, which were  expressly designed to accord
U.S. carriers designated for combination service to Brazil with the type
of flexibility that Delta now seeks to exercise, and the terms of
Delta’s still operative award of route integration authority in the
present Docket, we have determined that no additional authority need be
awarded for Delta to provide its proposed New York-Sao Paolo services. 
We have reviewed Continental’s answer and are not persuaded that
further proceedings are necessary.

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On the basis of data officially noticeable under Rule 24(g) of the
Department's regulations, we found the applicant qualified to provide
the services authorized.

Under authority assigned by the Department in its regulations, 14 CFR
Part 385, we found that

(1) our action was consistent with Department policy; (2) the action
taken was consistent with the public interest; and (3) grant of the
authority would not constitute a major regulatory action under the
Energy Policy and Conservation Act of 1975.  To the extent not granted,
we denied all requests in the referenced Docket.  We may amend, modify,
or revoke the authority granted in this Notice at any time without
hearing at our discretion.

Persons entitled to petition the Department for review of the action set
forth in this Notice under the Department’s regulations, 14 CFR
§385.30, may file their petitions within seven (7) days after the date
of issuance of this Notice.  This action was effective when taken, and
the filing of a petition for review will not alter such effectiveness.

An electronic version of this document is available on the World Wide
Web at:

  HYPERLINK "http://dms.dot.gov//reports/reports_aviation.asp" 
http://dms.dot.gov//reports/reports_aviation.asp 

 See Notice of Action Taken dated April 24, 2003 (APA renewal pending),
Docket OST-97-2338.

 Delta holds certificate authority to serve between Atlanta, Georgia and
co-terminal points Sao Paulo and Rio de Janeiro, Brazil, under its Route
740 authority, issued by Order 2002-7-31.  Under various certificates
and exemptions, Delta holds authority to offer international services
from New York (JFK).  

