Order 20 10

- 1

- 17

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Departme nt of Transportation

on the 26 th day of January , 20 10

Served: January 26 , 2010

ORDER INSTITUTING PROCEEDING AND INVITING APPLICATIONS

Summary

By this order, we institute the 2010 U.S.

- Haneda Combination Services Allocation Proceeding and invite interested U.S. air carriers to file applications for new U.S. carrier rights at Tokyo’s Haneda International Airport (Haneda).

Background

On December 11, 2009

, the United States and Japan initialed the text of a Memorandum of Understanding (“2009 MOU”) that following signature will

, 1 a mong other things, make

available to U.S. air carriers four daily pairs of slot s for scheduled combination service s at Toky o’s Haneda International Airport, when Haneda’s fourth runway becomes operational. 2 Under the terms of the 2009 MOU, scheduled operations between the United States and Haneda

will be subject to the following conditions: (1) U.S. operations at Haneda will be permitted between 2200 and 0700 hours local time; (2) departures from Haneda to a point in the 48 contiguous U.S. states are not permitted prior to midnight; and (3) extra sections are not permitted.

Proceeding

We have decided to institute the 2010 U.S.

- Haneda Combination Services Allocation Proceeding

to allocate the four newly available pairs of slots for U.S.

- Haneda scheduled combination

services

. Our principal objective in this proceeding will be to maximize the public benefits that

will result from introducing U.S.

- flag carrier service in the U.S.

- Haneda market . In this regard, we will consider which applicant or applicants 3

1 We are instituting this proceeding in advance of the effective date of the 2009 MOU to provide U.S. carriers the opportunity to fully utilize the new rights when they become available. will most likely offer and maintain service that

2 Operational use of the fourth runway is currently scheduled in October 2010.

3 The 2009 MOU does not preclude a single carrier from holding multiple Haneda slot pairs. 2010 U.S.

- HANEDA COMBINATION SERVICES

ALLOCATION PROCEEDING

DOCKET

- DOT

- OST

- 2010

- 00182 best meets the needs of the traveling and shipping public. We will also consider the effects of the applicants’ service proposals on the overall competitive environment, including effects on the

market structure and on competition in the U.S.

- Japan market. In addition, we will consider other factors historically used for car rier selection, where relevant.

In order to facilitate prompt utilization of the slots at issue here, we may decide to proceed directly to final order once we have received and reviewed all applications and responsive material requested. We

intend to awa rd the carrier(s) selected exemption or certificate authority, as appropriate, for the proposed services. We also intend to allocate the available pairs of slots for an indefinite term, subject to a start

up condition and our standard 90

- day dormancy cond ition. For any slot not used for a period of 90 days, the allocation with respect to that slot will expire automatically and will revert to the Department for

reallocation.

Backup Authority

In the interest of ensuring timely use of the newly available s lot opportunities, we may elect to grant backup authority in this proceeding. The backup authority would be implemented if the selected primary carrier fails to operate as proposed.

Evidentiary Requirements

In light of the upcoming availability of new s lot opportunities at Haneda, we intend to conduct this proceeding in a manner that will facilitate our reaching a prompt final decision that will enable the

selected carrier s to fully utilize the newly available opportunities. 4

We have decided to use writ ten, non

- oral show

- cause procedures under Rule 210 of our regulations (14 CFR 302.210) in deciding this case

. We find no material issues of fact that would warrant an oral

e videntiary hearing in this case

. We are also simplifying our procedures and evid entiary requirements

, consistent with securing an adequate decisional record with the least possible delay and without unnecessary cost to the applicants.

Appended to this order is an evidence request for the benefit of the applicants in this case. We are eliminating separate exhibit stages and request that applicants provide supporting evidence as part of their applications. We specifically are not requiring applicants to submit traffic forecasts. Further, for applicants submitting multiple proposals we ask them to rank their proposals by priority and preference. Applicants may, of course, also submit any additional information beyond that requested if they believe

it would be useful to us in reaching a decision.

Except for procedural dates, applica tions should conform to Part 302, Subpart C of the Department’s regulations (14 CFR Part 302). All pleadings should be filed with the Department of Transportation, 1200 New Jersey Avenue, S.E., West Building Ground Floor, Room W12

- 140, Washington, D.C.

205 90, in the captioned Docket for the 2010 U.S.

- Haneda Combination Services Allocation Proceeding

, and should include, at a minimum, the information requested in Appendix A.

4 The selected carrier or c arriers cannot request Haneda slot s for the IATA 2010 winter season until the Department has issued a final order formalizing the results of the proceeding.3 We view adherence to these directives as critical to our consideration of the propo sals in carrier

selection cases. We put all applicants in this case on notice that we expect full compliance with the evidence request appended to this order. Any carrier not in full compliance in any material

r espect with our request will be subject to elimination from consideration for an award in this

case.

Procedural Timetable

In light of our stated goal of reaching a prompt final decision , we intend to process this case on

an accelerated procedural schedule. Therefore, we are establishing the foll owing procedural

schedule for submissions:

Petitions for Reconsideration: February 2 , 2010

Answers to Petitions: February 5 , 2010 New Applications February 10 , 2010

Answers: February 22

, 2010 Replies: March 1 , 2010

In consideration of the accelerated schedule, as discussed above, we authorize service by

facsimile or electronic mail. Parties should include their fax numbers and/or e

- mail addresses on

their submissions and should indicate on their certificates of service the methods o f service used. Applicants not using facsimile or electronic mail must provide an original and five copies of all submissions to the Department of Transportation, Dockets, no later than the dates indicated. Please also provide an electronic copy of all re sponsive pleadings to: Esta.Rosenberg@dot.gov

.

ACCORDINGLY,

1. We institute the 2010 U.S.

- Haneda Combination Services Allocation Proceeding in Docket

DOT

- OST

- 2010

- 0018 , to be decided by written, non

- oral pr ocedures under Part 302 of our regulations (14 CFR Part 302.210);

2 . This proceeding will consider which carrier or carrier s should be awarded four (4) daily

U.S.

- Haneda pairs of slots available under the 2009 MOU for scheduled combination services ;

3

. Applications and other responsive pleadings should be filed in accordance with the procedural schedule set forth in this order; and4 4 . We will serve this order on all certificated U.S. combination carriers operating large aircraft

, the National Air Ca rrier Association, the Air Transport Association, the U. S. Department of State (Office of Aviation Negotiations), the Federal Aviation Administra tion, and the Ambassador of Japan in Washington, D.C.

By:

SUSAN L. KURLAND Assistant Secretary for Aviatio n and International Affairs

(SEAL)

An electronic version of this document is available on the World Wide Web at http://www.regulations.govAppendix A

EVIDENCE REQUEST

I. Procedures and Gro und Rules

In the interest of a complete and adequate record, the parties should provide the following information. In responding to this evidence request, all parties are advised to heed the admonitions and notice regarding compliance contained in the at tached order.

II. Request for Information and Evidence

Submit, at a minimum, the following: 1

1. Complete service proposals including proposed routing, date for instituting service, and single

- plane schedules. If an applicant is relying upon connectin g traffic, it should provide proposed nonstop

- to

- nonstop connecting schedules. If a carrier intends to offer seasonal service, it must so state and specify the period during which the seasonal services would be

offered.

Proposed schedules should contai n flight numbers, complete routings from origin to destination (including behind

- gateway and beyond

- gateway points , if the applicant is relying upon connecting traffic, and elapsed time for services), departure and arrival times in local time, equipment ty pes (including seat configuration by class of service and the cargo capacity available), days scheduled, classes of service offered, and the limitations, if any, on the number of seats available for each class of service;

2. A brief description of the ty pes of scheduled service the applicant currently provides, if any, between the United States and Tokyo, Japan, including whether the services are direct or

code

- share operations and whether they are seasonal or year

- round;

3. A statement describing the be nefits of the carrier’s proposed service to the public interest;

4. A statement as to whether or not the aircraft to be used in the proposed schedules are on hand or on order. If on hand, indicate where and the extent to which those aircraft are

current ly being used. If on order by purchase or lease, indicate when they will be delivered and how the aircraft will be financed. Indicate whether the aircraft to be used comply with

FAR

- 36. If not, indicate plans for achieving compliance;

1 The original filing should be on 81⁄2" x 11" white paper using dark ink (not green) and be unbound witho ut tabs, which will expedite use of our docket imaging system. In the alternative, parties are encouraged to use the electronic submission capability available through the Dockets F DMS Internet site ( http://www.r egulations.gov ) by following the instructions on the web site. Additionally, service by facsimile or electronic mail is authorized. Parties should include their fax numbers and email addresses on their submissions and should indicate the method(s)

of se rvice used on their certificates of service.2 5. Estimated numb er of gallons of fuel to be consumed by aircraft type on an annual basis as a result of the proposed service, and indicate the availability and method of obtaining the necessary fuel;

6. Responses to the following interrogatories:

(a) If the carrier is sele cted for primary authority, will it accept a condition requiring institution of service by a date specified by the Department? What date should the Department specify?

(b) If the carrier is selected for backup authority, will it accept a condition that (i) p ermits it to implement the authority within the first year should the primary carrier withdraw from the market, and (ii) the authority expires at the end of one year should the authority not be activated?

(c) If an applicant is not awarded all of the pairs of slots that it has requested, would the applicant accept partial grant of its request ? How would a partial allocation be used,

and what would the start

- up date be, if different from above? Also, what is the

minimum number of pairs of slots that a carrier will accept?

(d) Rank, in order of priority and preference, the U.S. points proposed for Haneda service

for which the carrier seeks slot allocation in this proceeding, and if awarded, the

number of pairs of slots needed for each market.

Applicants are also free to submit any additional relevant information that they believe will help us in making our decision.