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American Airlines will be allowed to begin flights this fall between Los Angeles and Sao Paulo, Brazil, under a tentative decision announced Thursday by the U.S. Department of Transportation.
In addition, merger partner US Airways will be able to keep the Charlotte, N.C.-Sao Paulo route it began flying June 8. Delta would add a second flight between Atlanta and Sao Paulo, and be allowed to keep its daily flight from Detroit.
American currently flies to Sao Paulo from New York Kennedy (twice a day), Miami (four times a day) and Dallas/Fort Worth International Airport (once a day). It had told the DOT it would begin the Los Angeles-Sao Paulo flight on Nov. 21.
“New air services to Brazil will provide important benefits for thousands of Americans and for tourists coming to the U.S.,” said U.S. Transportation Secretary Ray LaHood. “We look forward to additional opportunities for U.S.-Brazil air service when full Open Skies takes effect in two years.”
In its show-cause order, the department explained why it picked American’s application for Sao Paulo service out of Los Angeles:
“Los Angeles is the largest U.S.-Sao Paulo local O&D [origin and destination] arket that currently lacks U.S. carrier nonstop service. American has a strong presence at Los Angeles, where American and American Eagle together provide service to 43 cities. We tentatively find that American’s strength at Los Angeles, combined with its ability to provide convenient connections at Los Angeles, offer a firm basis to expect that it would provide meaningful public benefits in a major market currently devoid of U.S.-flag service.
“Furthermore, we tentatively find that by selecting American’s Los Angeles-Sao Paulo proposal, we can facilitate establishment of the only U.S. carrier nonstop service to Sao Paulo from a west coast location. Current U.S. carrier gateways to Sao Paulo are concentrated in the Eastern, Midwest, and Southern United States, with the only West Coast-Sao Paulo nonstop service provided by Korean Air Lines Co., Ltd. (Korean) three times weekly from Los Angeles.. Opening a new U.S. carrier gateway at Los Angeles will partially offset the disparity of access to Sao Paulo from Western U.S. points, and we tentatively find that the traveling public originating in or transiting the West Coast will benefit from the addition of new daily U.S. carrier nonstop service to Sao Paulo from a major international gateway.”
The air services treaty between the United States and Brazil allows U.S. airlines to operate 14 more weekly frequencies – essentially two daily flights a day – between the two countries as of Oct. 1.
Another 14 become available Oct. 1, 2014. On Oct. 1, 2015, the treaty opens up the competition to unlimited frequencies between Brazil and the United States.
The DOT noted that American’s service from Los Angeles will make it the first U.S. carrier to fly from there to Sao Paulo.
The DOT asked U.S. airlines in February to speak up about what flights and routes they’d like to add on Oct. 1, 2013, and the ones they’d like to add on Oct. 1, 2014.
Here are the requests for the 14 weekly flights that can began as of Oct. 1, 2013:
■ American, start a daily flight between Los Angeles and Sao Paulo beginning Nov. 21, 2013 (granted)
■ Delta, add a second daily flight between Atlanta and Sao Paulo beginning Dec.15, 2013 (granted)
■ Delta, add a second daily flight between New York and Sao Paulo beginning Dec. 15, 2013 (not granted)
Here are the requests for the service that can begin a year later, Oct. 1, 2014:
■ American, start a daily flight between Chicago and Sao Paulo (not granted)
■ Delta, keep its daily flight between Detroit and Sao Paulo after it transfers seven unrestricted U.S.-Brazil frequencies to US Airways in March 2015 (granted)
■ US Airways, keep its daily Charlotte-Sao Paulo flight that it operates with authority it is leasing from United Airlines and began flying on June 8, 2013 (granted)
■ US Airways, start a daily flight between Philadelphia and Sao Paulo (not granted)
American currently flies to Sao Paulo from New York Kennedy (twice a day), Miami (four times a day) and Dallas/Fort Worth International Airport (once a day).
We’re awaiting whoopees from the three carriers.
Of course, the applications and replies of each airline usually include some trashtalking about the other carriers’ applications. In this case, the fight had Delta on one side and prospective merger partners American and US Airways on the other.
Keep reading for the back-and-forth summarized in the DOT order:
… [visit site to read more]
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