Officials at the US Transportation Department believe US Airways could strengthen competition in the Brazilian market through its proposed service from Charlotte to Rio de Janeiro.
Today the department issued a tentative order granting US Airways and Continental new route rights to Brazil, which means Delta Air Lines and American Airlines lost their bids for additional service to the country.
US Airways was the only applicant not currently serving Brazil, and DOT reasons the first direct flights from Charlotte to Rio would "inject new competition in to the market". The department also recognizes that Continental's proposed service from Houston to Rio would be the airline's first year-round service, and the lone year-round flights to Rio from Houston.
Additional route rights became available under a June 2008 agreement between the US and Brazil that raised weekly flights between the two countries from 105 to 154 in four stages. During the first stage in August 2008, American won 11 new weekly flights and Delta garnered 10.
DOT plans to award 14 additional weekly flights available in October 2010 in a future proceeding.
Source: Air Transport Intelligence news
