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