**BEFORE THE**

**DEPARTMENT OF TRANSPORTATION WASHINGTON, D. C.** 

--------------------------------------------- Application of : : AMERICAN AIRLINES, INC. : DOT-OST-2010- : under 49 USC 40109 for an exemption : and allocation of frequencies : (Los Angeles-Shanghai) :

---------------------------------------------

**APPLICATION OF AMERICAN AIRLINES, INC. FOR AN EXEMPTION AND ALLOCATION OF**  **FREQUENCIES (LOS ANGELES-SHANGHAI)**

Communications with respect to this document should be sent to: VIRASB VAHIDI WILLIAM K. RIS, JR. Senior Vice President - Senior Vice President - Planning Government Affairs American Airlines, Inc. American Airlines, Inc. P.O. Box 619616, MD 5634 1101 17 th Street, N.W. DFW Airport, Texas 75161 Washington, D.C. 20036 KENJI C. HASHIMOTO CARL B. NELSON, JR. Vice President – Strategic Associate General Counsel Alliances American Airlines, Inc. American Airlines, Inc. 1101 17 th Street, N.W. P.O. Box 619616, MD 5635 Washington, D.C. 20036 DFW Airport, Texas 75261 (202) 496-5647 carl.nelson@aa.com ROBERT A. WIRICK Director, Regulatory American Airlines, Inc. P.O. Box 619616, MD 5635 DFW Airport, Texas 75261 (817) 963-0394 robert.wirick@aa.com

October 1, 2010**BEFORE THE**

**DEPARTMENT OF TRANSPORTATION WASHINGTON, D. C.** 

--------------------------------------------- Application of : : AMERICAN AIRLINES, INC. : DOT-OST-2010- : under 49 USC 40109 for an exemption : and allocation of frequencies : (Los Angeles-Shanghai) :

---------------------------------------------

**APPLICATION OF AMERICAN AIRLINES, INC. FOR AN EXEMPTION AND ALLOCATION OF**  **FREQUENCIES (LOS ANGELES-SHANGHAI)**

American Airlines, Inc., under 49 USC 40109, herebyapplies for an exemption and allocation of seven weekly frequencies in order to provide scheduled foreign air transportation of persons, property, and mail between Los Angeles, California and Shanghai, People’s Republic of China. American proposes to operate daily nonstop service beginning April 5, 2011, using 247-seat B777 aircraft (16F/37C/194Y). Illustrative schedules and other data are attached (Exhibit AA-1). American is designated to serve China, and currently operates daily flights between Chicago and both Shanghai and Beijing. Under the U.S.-China Air Transport Agreement, as amended, 28 weekly frequencies are unallocated and available to support our proposal.- 2 -

Today the only nonstop service between Los Angeles and Shanghai is operated by China Eastern Airlines. American has been displaying the AA* code on China Eastern’s flights. But there is no nonstop service in the market operated by a U.S.- flag carrier. United publishes single flight number service from Los Angeles to Shanghai, but with a stop and change of gauge at San Francisco. Los Angeles is the largest U.S.-Shanghai O&D market, with 201,889 passenger bookings for the 12 months ended August 2010 (Exhibit AA-2). Los Angeles also accounts for more O&D passengers to China than any other U.S. city. American and American Eagle operate 123 daily departures at Los Angeles, serving 14 cities in the United States as well as destinations in Asia, Europe, Canada, Mexico, and Central America. Nonstop service by American between Los Angeles and Shanghai is clearly in the public interest. In addition to benefiting local O&D traffic in the largest U.S.-China O&Dmarket, American will provide important new connecting opportunities for beyond passengers.- 3 -

Under American’s proposal, a total of 14 U.S. cities will enjoy on-line connecting service beyond Los Angeles in one or both directions (Exhibit AA-3). The five largest U.S.- Shanghai O&D markets (Los Angeles, New York, San Francisco, Chicago, and Washington) will all have on-line service (Exhibit AA-3). Other cities that will have on-line service via Los Angeles include Austin, Dallas/Ft. Worth, Denver, Miami, Portland, and Seattle. American has a growing identity and presence in the U.S.-China market, and is well positioned to operate nonstop service from Los Angeles to Shanghai. American has served China since 2006, and is developing strong point-of-sale relationships there. We will poll the carriers named on the attached service list for non-objections. Assuming the polling results are favorable, we seek expedited approval of our application so that we may conclude preparations for inaugurating daily Los Angeles-Shanghai nonstop service on April 5, 2011. Respectfully submitted,

___________________________ CARL B. NELSON, JR. Associate General Counsel American Airlines, Inc. October 1, 2010Exhibit AA -1 Page 1 of 2



### Effective April 5, 2011

AA 183 Flight Number AA 182

Daily Frequency Daily B777-200ER Equipment B777-200ER

1205 Los Angeles (LAX) 1525 | ^ | | | | v | 1635 +1 Shanghai (PVG) 1835

13:30 Elapsed Time 11:50 

### AMERICAN AIRLINES Los Angeles - Shanghai Nonstop Service

Source: American Ai rlines Capacity PlanningExhibit AA - 1 Page 2 of 2



### Aircraft B777 Departures 730 Segment Miles 6,485 Plane Miles 4,734,050 ASMs 1,169,310,350 Fuel Burn (Gallons/Hour) 2,320 Fuel Consumption (000 Gallons) 21,001

First Class 16 Business Class 37 Economy Class 194 Total 247

AIRCRAFT AVAILABILITY - American will use aircraft currently in its fleet. American operates 47 Boeing 777s (247 seats)

FUEL AVAILABILITY - American anticipates no di fficulty in obtaining fuel from its existing suppliers at Los Angeles and Shanghai. 

### Seating Configuration 

### AMERICAN AIRLINES Los Angeles - Shanghai Nonstop Service

Annual Operating Statistics Effective April 5, 2011

Source: American Ai rlines Capacity PlanningExhibit AA - 2 Page 1 of 1



### MARKET ANNUAL BOOKINGS 1 

### LAX PVG 201,889 2 

### PEK SFO 151,764 3 

### PVG SFO 149,827 4 

### LAX PEK 144,458 5 

### JFK PEK 123,635 6 

### JFK PVG 113,431 7 

### FOC JFK 93,003 8 

### CAN LAX 79,765 9 

### ORD PVG 72,396 10 

### EWR PVG 66,716 11 

### ORD PEK 61,041 12 

### EWR PEK 51,941 13 

### IAD PEK 49,220 14 

### CAN JFK 49,040 15 

### PEK SEA 43,020 16 

### DTW PVG 39,340 17 

### BOS PVG 33,790 18 

### BOS PEK 32,482 19 

### CAN SFO 31,119 20 

### HNL PVG 26,686 21 

### IAH PEK 24,358 22 

### HNL PEK 24,055 23 

### IAH PVG 21,694 24 

### PVG SEA 20,195 25 

### ATL PVG 20,053 26 

### DFW PVG 16,590 27 

### ATL PEK 16,400 28 

### MSP PVG 14,989 29 

### DFW PEK 14,507 30 

### DTW PEK 13,779 31 

### IAD PVG 11,887 32 

### LAX SHE 11,872 33 

### MSP PEK 11,707 34 

### PDX PVG 11,450 35 

### DCA PVG 10,796 LOS ANGELES - SHANGHAI IS THE LARGEST U.S. - CHINA O&D MARKET

Source: MIDT YE August 2010Exhibit AA-3 Page 1 of 1



### Eastbound ANC Anchorage 2/ AUS Austin DEN Denver DFW Dallas/Ft. Worth FAT Fresno 1/ JFK New York (Kennedy) MIA Miami ORD Chicago PDX Portland 2/ RNO Reno 1/ ROW Roswell 1/ SAN San Diego 1/ SBA Santa Barbara 1/ SEA Seattle 2/ SFO San Francisco SJC San Jose 1/



### Westbound ANC Anchorage 2/ AUS Austin DEN Denver DFW Dallas/Ft. Worth FAT Fresno 1/ PDX Portland 2/ RNO Reno 1/ SAN San Diego 1/ SBA Santa Barbara 1/ SEA Seattle 2/ SFO San Francisco SJC San Jose 1/

1/ Operated by American Eagle 2/ Operated by Alaska Airlines 

### Online Connections 

## AMERICAN AIRLINES Los Angeles - Shanghai Nonstop Service

Source: OAG as of September 2010CERTIFICATE OF SERVICE

I hereby certify that I have this day served the foregoing document by email on the following carriers:

Continental dan.weiss@coair.com

Delta sascha.vanderbellen@delta.com

United jeffrey.manley@united.com

FedEx nssparks@fedex.com

UPS dfisher@kelleydrye.com

Evergreen esauer@ssd.com

Atlas Air rpommer@atlatair.com

Polar kevin.montgomery@polaraircargo.com

________________________ CARL B. NELSON

October 1, 2010