Fri, Mar 20, 2009
Says US Airways, Continental Would Inject New
Competition
The US Department of
Transportation Friday proposed to award Continental Airlines
and US Airways new rights to fly to Rio de Janeiro, Brazil. If the
decision is finalized, Continental could operate a new daily
nonstop roundtrip flight from Houston as early as June 1 and US
Airways could begin a new daily nonstop roundtrip flight from
Charlotte, NC on October 1.
In its preliminary decision, the Department stated that US
Airways, the only applicant not currently serving Brazil, would
inject new competition into the market as well as provide the first
direct Brazil service from Charlotte, where US Airways has a
significant connecting hub.
Continental’s service from Houston would be the
carrier’s first year-round nonstop service to Rio de Janeiro,
as well as the only year-round nonstop flights to that city from
the central or western United States, the Department said. Other
carriers filing applications were Delta Air Lines, seeking to
provide additional daily service between Atlanta and Rio de
Janeiro, and American Airlines, seeking rights to offer three
weekly New York-Rio de Janeiro flights.
The rights tentatively awarded Friday are made available under
the second and third stages of a June 2008 US-Brazil aviation
agreement that, among other provisions, increased weekly US-Brazil
passenger flights for each country’s airlines from 105 to 154
in four stages.
In August 2008, the Department awarded American 11 new weekly
flights and Delta 10 under the first-stage. The 14 remaining weekly
flights, available in October 2010, will be awarded in a future
proceeding.
Objections to the show-cause order must be filed within 10 days.
If objections are filed, answers are due seven days afterward. The
Department will then issue a final decision.
FMI: Read The Show-Cause Order at www.regulations.gov, docket
DOT-OST-2009-0003
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