Order 2010-1-17

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

 Issued by the Department of Transportation

 on the 26th day of January, 2010

 

 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 among other things, make 

available to U.S. air carriers four daily pairs of slots for scheduled combination services at 

Tokyo’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 applicants3

 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-2010-0018

 
2

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 carrier 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 award 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 startup condition and our standard 90-day dormancy condition. 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 slot 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 slot 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 carriers to fully utilize the newly available opportunities.4

We have decided to use written, 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 

evidentiary hearing in this case. We are also simplifying our procedures and evidentiary 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, applications 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. 

20590, 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 carriers cannot request Haneda slots 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 proposals 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

respect 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 following 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 of 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 responsive 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 procedures under Part 302 of our 

regulations (14 CFR Part 302.210);

2. This proceeding will consider which carrier or carriers 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; and
4

4. We will serve this order on all certificated U.S. combination carriers operating large aircraft, 

the National Air Carrier Association, the Air Transport Association, the U.S. Department of 

State (Office of Aviation Negotiations), the Federal Aviation Administration, and the 

Ambassador of Japan in Washington, D.C.

By:

SUSAN L. KURLAND

Assistant Secretary for Aviation

and International Affairs

(SEAL)

An electronic version of this document is available on the World Wide Web at

http://www.regulations.gov
Appendix A

EVIDENCE REQUEST

I. Procedures and Ground 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 attached 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 connecting 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 contain 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 types (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 types 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 benefits 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 

currently 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 without 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 FDMS Internet site (http://www.regulations.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 service used on their certificates of service.
2

5. Estimated number 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 selected 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) permits 

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.