BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

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1 BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. for a frequency allocation (Detroit-Sao Paulo, Brazil Docket DOT-OST AMERICAN AIRLINES, INC. for an allocation of 11 U.S.-Brazil frequencies Docket DOT-OST CONSOLIDATED ANSWER OF TO MOTIONS OF AMERICAN AIRLINES, 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 1030 Delta Boulevard Atlanta, Georgia Andrea Fischer Newman Senior Vice President Government Affairs 1212 New York Avenue, N.W. Washington, D.C Alexander Van der Bellen Managing Director Government Affairs & Associate General Counsel Jeff Morgan Regional Director Government Affairs 1212 New York Avenue, N.W. Washington, D.C ( sascha.vanderbellen@delta.com April 16, 2010

Cortelyou Senior Vice President Network Planning Andreas Renner Director International Network Planning Chris Kennedy General Manager International Network Analysis 1030 Delta Boulevard Atlanta,

2 BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. for a frequency allocation (Detroit-Sao Paulo, Brazil Docket DOT-OST AMERICAN AIRLINES, INC. for an allocation of 11 U.S.-Brazil frequencies Docket DOT-OST CONSOLIDATED ANSWER OF TO MOTIONS OF AMERICAN AIRLINES, INC. Delta Air Lines, Inc. ( Delta hereby answers the motions of American Airlines in the captioned dockets which seek immediate approval of its own U.S.-Brazil services and to dismiss Delta s request for additional frequencies to support daily Detroit-Sao Paulo service. As explained in Delta s application, the 14 frequencies at issue here are eligible for service at Sao Paulo as soon as Brazil is able to solve the infrastructure constraints at the Guarulhos International Airport. Delta appreciates the Department s swift action to approve our request for Detroit-Sao Paulo exemption authority, which was granted by NOAT dated April 15, 2010 in docket OST This service will provide the important benefits of a new nonstop flight from a major hub in an underserved region of the country. However, Delta is only able to operate at a level of two weekly flights using its limited allocation of Sao Paulo frequencies. In terms of public benefits, enabling Delta to increase Detroit- Sao Paulo from two to seven flights is a far superior long-term use of frequencies than

-Brazil services and to dismiss Delta s request for additional frequencies to support daily Detroit-Sao Paulo service.

3 Answer of Delta Page 2 American s to offer duplicative service on the well-served New York-Rio de Janeiro route and to serve the small Miami-Brasilia market. Contrary to the assertions in American s motions, this proceeding is not a zerosum game -- and there is no need to foreclose the future opportunities Delta needs to increase Sao Paulo service from Detroit. The Department can readily achieve a public interest maximizing result that will promote the full implementation of American s current services and Delta s future expansion through the prudent allocation and redistribution of existing frequencies. American requests a total of 11 frequencies 7 for New York-Rio de Janeiro service and 4 for Miami-Brasilia. The Miami-Brasilia flights are eligible for service using the lower category of northern/regional Brazil frequencies and do not require high value Rio/Sao Paulo rights. There is also a strong expectation that the U.S. Government will be able to negotiate substantial further liberalization of northern/regional frequencies but that securing future Sao Paulo frequencies from the Government of Brazil will be more difficult. Moreover, American already holds the lion s share of unrestricted Brazil frequencies with a total of 47 to Delta s 23. In these circumstances, Delta proposes that 4 of Delta s 10 northern/regional frequencies be reallocated to American for Miami-Brasilia service and that Delta receive 4 replacement frequencies eligible for future Sao Paulo service from the currently available pool of 14 frequencies. This provides American with all the authority necessary to implement its current service plans, provides Delta with the future ability to fund 4 daily Detroit-Sao Paulo flights, and leaves 3 Sao Paulo-eligible frequencies available to any carrier in the unallocated pool. 1 Delta will use the replacement frequencies to fund its existing northern/regional services and is confident that future negotiations will provide the necessary frequencies to implement additional Detroit-Sao 1 Delta plans to seek the 5 th Sao Paulo-eligible frequency required for daily Detroit-Sao Paulo service from the unallocated pool in the future.

4 Answer of Delta Page 3 Paulo services without disruption to the northern/regional services. Thus, Delta s proposed allocation will promote the maximum utilization of current bilateral rights, will enhance the long-term competitive market structure, and promote the introduction of important additional services from underserved gateways and underserved regions of the United States. WHEREFORE, Delta moves that American s motions be denied, and that the Department allocate and redistribute the available U.S.-Brazil frequencies to maximize public interest benefits as described above. Respectfully submitted, Alexander Van der Bellen Managing Director, Government Affairs & Associate General Counsel

introduction of important additional services from underserved gateways and underserved regions of the United States.

5 CERTIFICATE OF SERVICE A copy of the foregoing Answer has been served this 16th day of April, 2010, upon the following persons via carl.nelson@aa.com howard_kass@usairways.com benjamin.slocum@usairways.com hkamen@coair.com dan.weiss@coair.com rbkeiner@crowell.com (for Continental mrosia@crowell.com (for Continental jeffrey.manley@united.com julie.oettinger@united.com robert.land@jetblue.com jhill@dlalaw.com (for JetBlue dkirstein@yklaw.com (for Spirit jyoung@yklaw.com (for Spirit paul.gretch@dot.gov esta.rosenberg@dot.gov brian.hedberg@dot.gov byerlyjr@state.gov john.allen@faa.gov lester.robinson@wcaa.us emily.neuberger@wcaa.us joe.cambron@wcaa.us mike.orr@airlineinfo.com

com (for Continental jeffrey.manley@united.com julie.oettinger@united.com robert.land@jetblue.com jhill@dlalaw.com (for JetBlue dkirstein@yklaw.

BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. ) ) ) ) )

BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of DELTA AIR LINES, INC. for an exemption and frequency allocation (New York Buenos Aires Docket OST-05-21069 ANSWER OF THE PORT AUTHORITY