### BEFORE THE

DEPARTMENT OF TRANSPORTATION
WASHINGTON, D.C.

Motion s and Application of

AMERICAN AIRLINES, INC.
HAWAIIAN AIRLINES, INC.

In the matter of 2010 U.S.

- Haneda Combination

Services Allocation Proceeding ) ) ) ) ) ) ) ) Docket DOT

- OST

- 2010

- 0018

CONSOLIDATED ANSWER OF DELTA AIR LINES, INC

.

Communications with respect to this document should be addressed to:

Glen Hauenstein

Executive Vice President

– Network Planning

& Revenue Management Robert J. Cortelyou

Senior Vice President

– Network Planning
DELTA AIR LINES, INC.

1030 Delta Boulevard Atlanta, Georgia 30320 Alexander Van der Bellen Managing Director and Associate General

Counsel

– Regulatory and International Affairs
DELTA AIR LINES, INC.

1212 New York Avenue, N.W. Washington, D.C. 20005 (202) 842

- 4184
sascha.vanderbellen@delta.com

October 17, 2014

### BEFORE THE

DEPARTMENT OF TRANSPORTATION
WASHINGTON, D.C.

Motion and Application of

AMERICAN AIRLINES, INC.
HAWAIIAN AIRLINES, INC.

In the matter of 2010 U.S.

- Haneda Combination

Services Allocation Proceeding ) ) ) ) ) ) ) ) Docket DOT

- OST

- 2010

- 0018

CONSOLIDATED ANSWER OF DELTA AIR LINES, INC

.

American Airlines’ attempt to take Seattle ’s only direct flight to Haneda Airport (HND) in

Tokyo, Japan and move it to Los Angeles (LAX) is wholly wi thout merit . Hawaiian ’s pile

- on

motion adds nothing to the record b ut hyperbole. Both should be firmly rejected by the

Department for the following, independent reasons:

• Delta is operating its slots in full compliance with t he Department’s condition s and has

firm , scheduled plans to operate daily Seattle (SEA)

- Haneda service at the start of the

summer 2015 IATA season;

• T he Department’s 2013 public interest findings in awarding the SEA

- HND frequency to

Delta are even more compelling today and there is no cause to revisit those findings ;

• Stripping the slots from Delta and reassigning them to American (or Hawaiian) would be

contrary to DOT precedent on dormancy and would violate the fundamental fairness and

due process requirements of the Administrative Procedure Act and applicable federal

case law.

Moreover , t he Department should question why American is now attempting to obtain

more Haneda access by deny ing it to Seattle

. J ust a few months ago , American voluntarily

relinquished its own HND slots at New York JFK and did not even attempt to re apply to use

### Delta Answer Page 2

those slots at LAX

. Even after choosing to give up its JFK slots

– and perhaps as part of its

rationale for doing so

– Ame rican retains access to Haneda. In 2010, American conv inced the

Department to grant antitrust immunity (ATI) to create a revenue

- sharing joint venture with

Japan Airlines ( JAL ) on the pre mise that American and JAL would operate as one airline across

t he Pacific. Thus, ATI effectively provided American access to JAL’s two Haneda slots, which

the joint venture uses to fly f rom San Francisco and Honolulu. American is now claiming that

despite sharing revenue and scheduling control of two Haneda slots, and having given up

another slot pair , the Department should remove service from Washington and shift it to

California where there is already existing Delta and ANA service to Haneda from LAX , and to

supplement recently awarded United service to Haneda from SFO in addition to JAL

. This

feeble claim is inconsistent with DOT’s public interest mandate.

The Department should also n ote American’s temerity in arguing here that DOT should

strip Delta of its SEA

- HND slot for having reduced its winter schedule, while American has

regularly made its own seasonal adjustments rendering limited international frequencies unused

for 90 days or more over a period spanning more than a decade

. Exhibit DL

- 1. No action was

taken by the Department to recall American’s unused frequencies. The Department should

squarely reject American’s cynical call for a different an d unprecedented result here.

Re garding Hawaiian’s aspirations

, the Department has three times rejected it s bid to add

a fo u rth daily Hawaii

- Haneda flight on top of the existing three flights operated by Hawaiian

itself, JAL, and ANA ( together with their respective immunized alliance partners). Just this year

the Department declined Hawaiian’s Kona

- Haneda proposal in favor of west coast hub service

to “ enhance inter

- gateway competition in the West Coast

- Tokyo market by giving consumers an

additional choice for con necting service to Haneda ” and found “that the benefits to the traveling

public of [competitive west coast hub service] outweigh the potential benefits associated with

Hawaiian’s proposal .” Order 2014

- 2

- 23 at 4. Seattle , in contrast, is the only Haneda g ateway in

### Delta Answer Page 3

the Pacific Northwest , providing the geographic and commercial diversity the Department has

prioritized in distributing Haneda slots.

1. Delta is Operating its S eattle

- H aneda Slots in Full Compliance with DOT’s Ordering Conditions.

There is no question that Delta is operating its slots in fu ll compliance with the DOT’s 90

-

day dormancy condition. Consequently, Delta’s Seattle

- Haneda slots are not dormant by

definition and are therefore not subject to arbitrary withdrawal and reallocation as urge d by

American and Hawaiian . The dormancy condition associated with Delta’s Seattle

- Haneda slots

could not be more clear:

The slot pair allocation will remain in effect indefinitely , provided that the holder continues to hold the necessary underlying aut hority to serve the markets authorized; and provided further that the slot pair will become dormant and will revert automatically to the Department if it is not used for a period of 90 days (once inaugurated)

Order 2013

- 2

- 4 , Condition 3, Page 6

Delta is using its S EA

- HND slots at least every 90 days in full compliance with the

condition, and neither American nor Hawaiian claim otherwise. See AA Motion/Answer at 3 ;

Hawaiian Motion/Answer at 3. Due to l ow forecast demand this winter and the rapidly

expan ding but not

- yet

- mature Seattle hub, it was commercially nec essary to make seasonal

reductions this winter. The Department’s Order allows appropriate flexibility for Delta to do so.

Delta’s u tilization of its S EA

- HND slots not only meets the Department’s dormancy

condition but also complies with the Department’s well

- established precedent that when a

carrier holding unused frequencies has “firm plans” to use them, those frequencies will remain

with the holder and not be reallocated. 1 

### See Order 2005

- 4

- 13, April 12, 2005, p.3 n5 (declining

to confiscate and re

- allocate to American five U.S.

- Brazil frequencies held by United which had

1 

### While the “firm plans” line of decisions is fully supportive of Delta’s position, the DOT need not reach this question in disposing of America n’s motion because Delta has fully complied with the dormancy provision in Order 2013

- 2

- 4 as quoted above.

### Delta Answer Page 4

been dormant since “at least 2003” where United announced on April 4, 2005 that it had firm

plans to use them effective October 31, 2005); Order 95

- 3

- 52, March 27, 1995, p.4 (declining to

confiscate and re

- allocate to American on a permanent basis four U.S.

- Brazil frequencies held

by United where United announced firm plans to use them effec tive August 1, 1995).

T he Department has never stripped limited entry frequencies from a bona fide holder

due to a temporary reduction over a single traffic season . I t would be unfair, unprecedented,

unlawful and bad policy to do so here. The 2008 Braz il Comb ination Case (Order 2008

- 10

- 20)

cited by American is inapposite. There, United’s Brazil frequencies were not subject to any

express dormancy condition. United had allowed its frequencies to go dormant for more than

three and a half years and had n o stated plans to use them . That is in stark contrast to the

present case , wher e Delta’s slots will be unused for less than 90 days, over a single off

- peak

season, and where Delta has published a full daily schedule at the start of the Summer 2015

season. In addition, unlike the United/Brazil proceeding, here the Department’s Ordering

Conditions state very clearly what the dormancy requirements are, and Delta is complying with

them.

2

. The Department’s 2013 Decision to Award Del ta Seattle

- Haneda Slots Remains

C orrect

.

When the Department granted Delta Seattle

- Haneda slots it made a number of important

public interest findings. Nothing has changed that would warrant removing slots that are used

to operate Seattle ’s only Haneda service to fund a third d aily flight at Los Angeles or Hawaii

.

Specifically

, the Department found that:

• “ Delta’s proposal would best serve the public interest by providing the first nonstop

Haneda service on a significant mainland U.S.

- Tokyo route that currently lacks any such service, thereby establishing a new U.S. gateway to Haneda. ”

• “ Delta’s proposed service would further serve the public interest by providing a number

of western cities with a first one

- stop connecting opportunity to Haneda. ”

• “ Other cities that now enjoy one

- stop connections over more southerly gateways would gain the option of service over a less circuitous northwest gateway. ”

### Delta Answer Page 5

• “ [Delta’s proposal] brings first

- time Haneda s ervice and first U.S.

- flag Haneda service to

the sixth

- largest O&D market, while also promoting the geographic diversity of the U.S.

- Haneda gateways ... consistent with our established approach for the award of limited
Haneda slot opportunities and would be st serve the public interest. ”

• “ Los Angeles already has two daily nonstop flights to Haneda. Delta serves Los Angeles

- Haneda with its own flights, and United offers Los Angeles

- Haneda service through its code share with ANA. Given the very limited oppor tunities for U.S. carrier

service to Haneda, we tentatively do not find American’s arguments persuasive for adding more Haneda service at Los Angeles while other significant U.S.

- Tokyo gateways have no access to Haneda

. ” (emphasis added)

• “ the State of Haw aii now enjoys three of eight total U.S.

- Haneda route

- opportunities available to U.S. and Japanese carriers. Consistent with our goal of using our limited Haneda rights to address a variety of public interest objectives, including the objective of

geograp hically diverse gateways, we tentatively find that the public interest would be better served by opening Haneda nonstop access to a new region of the country, the Pacific Northwest, than by allocating a fourth Haneda route to Hawaii.” (emphasis added).

Show Cause Order 2012

- 11

- 12 at pp. 5

- 6; confirmed by Final Order 2013

- 2

- 4.

The case for Seattle

- Haneda is even stronger today. Delta is moving aggressively to

develop Seattle as a hub with new Delta and Delta Connection

- operated service, both domestic

and i nternational. While it has b een challenging to establish Haneda service, a s we continue to

implement our Seattle strategy we have seen passenger traffic and profitability surge

. In fact,

Delta’s Summer Season SEA

- HND 2014 performance improved by an astounding 54% percent

year

- over

- year

. B uoyed by this unexpectedly strong su mmer 2014 performance, Delta has

offered a full pattern of daily Seattle

- Haneda service in summer 2015 and anticipates a more

regular schedule next winter. 2



### Delta’s seasonal reduction this winter

– operated in full compliance with DOT’s

dormancy condition

– is a temporary measure that is reasonable and appropriate in the current

circumstances. Seattle is Delta’s largest West Coast hub and each new “spoke” add ed to the

2 

### In its Motion and Answer (at p. 4) Hawaiian Airlines offers a deliberately selective and misleading description of Delta’s filed schedule. In fact, on March 29 and forward through the summer season, Delta will operate daily service from SEA to HND.

### Delta Answer Page 6

hub makes every other flight stronger. Delta has made major investments in facilities, aircraft,

marketing and route deve lopment at the Seattle hub. As illustrated by the following table, since

2012

, when Delta was first awarded Seattle

- Haneda authority, Delta

- operated services have

grown significantly :

Dom e stic

Con nections 2012 2013 2014 2015

DL/DL 25 31 65 100

DL*/AS 137 151 107 107

Thus, by the start of the next winter season there will be 100 Delta and Delta connection

flights supporting Seattle

- Haneda service, along with 107 Delta codeshare flights operated by

Alaska Airlines. Th e additional 35 flights that will be providing feed for Delta’s SEA hub by

winter 2015 are a major network improve ment over the current winter schedule

. Moreover,

Delta ’s own

- metal connections

– which account for the entire increase

- provide stronger and

more effective feed. Delta’s temporary seasonal reductions reflect responsible commercial

decision

- making in th e face of the large losses forecast this winter. Delta is working hard to

make Seattle

- Haneda service a permanent, year

- round success, and for all the reasons stated

herein , it is in the public interest to allow Delta to do so in a manner fully consistent with the

award conditions.

3. Stripping the Slots from Delta and Reassigning Them to American or Hawaiian

W ould V iolate the Ad ministrative Procedure Act

.

As explained above, t he actions urged by American and Hawaiian would contravene the

express terms of Order 2013

- 2

- 4 and DOT precedent . Consequently, granting American’s

Motion and Application would also violate the fundamental fairness and due process

requirements of the Administrative Procedure Act

. Given that Delt a is both complying with its

dormancy condition and meets the well

- established “firm plans” line of precedent, the summary

### Delta Answer Page 7

confiscation and reallocation urged by American and Hawaiian would be arbitrary and

capricious. “An agency acts arbitrarily and capr iciously if it ‘reverses its position in the face of a

precedent it has not persuasively distinguished,’” New York Cross Harbor RR v. Surface

Transportation Bd. , 374 F.3d 1177, 1181 (D.C. Cir. 2004).

H av ing granted Delta Seattle

- Haneda slots only last year after a full r oute proceeding,

and with not even American alleg ing that Delta isn’t c omplying with the Department’s O rder, it

would be both illegal and a policy mistake for DOT summarily revoke and reallocate the slots

.

Airlines need to have certaint y to plan and develop service, and need to rely on presumptive

finality if they comply with the Department’s ordering conditions

. It has long been established

that certificated carriers should enjoy “security of route” and that their operating authorizati ons

are protected from summary revocation. See CAB v. Delta Air Lines, 367 U.S. 316, 321

- 25

(1961). Any reexamination of Delta’s SEA

- HND slot allocation would require, at a minimum,

notice by the Department that it intended to change the dormancy conditi on applicable to

Haneda slots and reasonable opportunity for cure. See DOT Order 2007

- 12

- 21 (“the issue is

whet he r American was on notice that a change in its proposed plans could lead to a

reexamination of the frequency allotment. The record demonstrates that it was given such

notice .”). While the Department could amend the dormancy conditions applicable to U.S.

-

Haneda slot holders, it has not and should not propose such a change, and in any event cannot

impose it retroactively on Delta.

4. American has a Long History of Seaso nal Suspensions Due to Seasonal Demand

.

Going back at least as far as 2002, American has allowed its limited entry Brazil

frequencies for months at a time, frequently for periods of 90 days or more. Exhibit DL

- 1.

During all this time Delta and other airlines were anxious to obtain more U.S.

- Brazil frequencies

to compete against American’s dominant position in the market.

### Delta Answer Page 8

For example, in July of 2013, American was allocated and operating 109 weekly

frequencies. The n, in September, American slashed its schedule

, suspend ing 28 frequencies

(four daily flights) , and did not return to its authorized level of 109 frequencies until three months

later in December:

Travel Period Mktg Al Mon Tue Wed Thu Fri Sat Sun Ops/Week

Jul

- 13 AA 16 15 15 16 16 16 15 109

Aug

- 13 AA 15 15 14 16 15 16 14 105

Sep

- 13 AA 11 11 11 11 11 14 12 81

Oct

- 13 AA 12 11 12 12 13 14 13 87

Nov

- 13 AA 12 11 12 12 13 13 12 85

Dec

- 13 AA 15 16 15 16 16 16 15 109

And yet American was never threatened by the Department with summary revocation of its

frequencies. Like American, Delta is employing a temporary seasonal adjustment, which in this

case is intended to preserve and maintain Seattle as a viable U.S.

- Haneda gateway.

5. American Had the Benefit of Three Haneda Slots and Still Enjoys Two Through I ts

I mmunized Joint Venture with JAL.

Not only could American have reapplied for its own relinquished Haneda slot just a few

short months ago, it also conveniently overlooks that it is ope rating across the Pacific a s one

airline with JAL, one of the largest competitor s in the U.S.

- Japan marketplace with a huge

incumbent position at Haneda:

DL

24%

AA/JL

29% UA/NH

38% Other

9% 

### US

- Japan ASMs by Immunized Alliance

OAG, Mar '15

Other

18%

SkyTeam

2%

oneworld

33% Star

47% 

### HND Slots by Alliance

OAG, Mar '15

### Delta Answer Page 9

American currently enjoys the benefit of two U.S.

- Han eda slots Haneda under its joint

venture with JAL, which American and JAL certify they have implemented. Exhibit DL

- 2

.

American’s stated objective in forming its immunized alliance was to create a metal

- neutral joint

venture in which each carrier was indifferent to the actual operator of the aircraft:

The Joint Applicants seek approval for a highly

- integrated, revenue

- sharing joint venture that will strengthen their alliance by eliminating each carrier’s economic incentive to maximize its own revenue. Only the c loser cooperation made possible through a joint venture based on metal neutrality

– or indifference as to which airline actually carries a

customer

– will maximize the consumer benefits that immunized alliances make
possible. This is because metal neutral ity removes each carrier’s incentive to act opportunistically in ways that inure to its own short

- term financial advantage, to the detriment of the efficiencies and consumer benefits that could otherwise be delivered by

the alliance. American/JAL Antitrus t Immunity Application, Docket DOT

- OST

- 2010

- 0034, p.7.

Today

, American codeshares on each and every one of JAL’s U.S.

- Japan flights,

including JAL’s HND

- San Francisco and highly lucrative HND

- Honolulu flights. When the

Department approved the American/JAL immunized alliance it stated: "The intended

commercial effects of the ATI Applicants’ respective joint business agreements are similar to

those resulting from a merger." (Japan ATI Order 2010

- 10

- 4 at 5). If American and JAL are not

working together to jointly realize the full benefit of JAL’s two Haneda flights, then they have

failed to realize the claimed benefits of their ATI alliance and should no longer be entitled to

antitrust immunity. 3



### Delta service at Seattle will continue progress toward three

- way alliance c ompetition on

U.S.

- Haneda routes and is essential to preventing further deterioration of the c om petitive market

3 

### Moreover, American and JAL could serve Los Angeles

- Haneda today simply by moving JAL’s

SFO

- HND flight to LAX. Given the recently authorized United S FO

- HND service, there is a strong possibility that the oneworld carriers might make this decision on their own initiative. It would make absolutely no sense (and contrad ict the Department’s stated public interest objectives for U.S.

- Haneda flying) to strip Delta of its SEA

- HND slots that are used to operate from the Pacific Northwest to allow American/JAL to pile on more flights on the already

saturated LAX

- HND route.

### Delta Answer Page 10

s tructure. The two immunized U.S.

- Japanese alliances have inherent advantages over Delta,

which does not have a Japan alliance pa rtner. As a SkyTeam member and major U.S.

- Japan

competitor, Delta is the only carrier capable of offering a competitive alternative to the west

coast Haneda services of oneworld (JL) and Star (UA) at San Francisco and Star (ANA) at Los

Angeles. The DOT h as consistently sought to promote inter

- alliance competition. 4 

### Maintaining

Delta’s SEA

- HND service helps to promote the Department’s public interest objectives.

Conversely, the loss of a slot pair would marginalize Delta in the U.S.

- Haneda marketplace,

leaving Delta with just a single daily flight to compete against the multiple daily trans

- P acific

flights and large Haneda hubs operated by Star and oneworld. This would increase market

dominance by the U.S.

- Japan ATI alliances and undermine Delta’s abili ty to compete in the

U.S.

- Tokyo and U.S.

- Japan marketplace.

Finally, we note that Amer ican’s exhibits filed with its A pplication reveal that American

has assigned the same flight number to its proposed LAX

- HND flight as its existing LAX

- NRT

flight

. Exhibit DL

- 3

. American apparently intends to drop its own LAX

- NRT service just as it

canceled its own JFK

- NRT service when it launched JFK

- HND and left its partner JAL to fly

JFK

- NRT. If, as it appears, American intends to move its existing LAX

- NRT flight to LA X

- HND

there would be no public interest benefits at all to be gained from transferring Seattle’s slots to

Los Angeles . By contrast, Delta plans to continue to serve NRT from Seattle, and Delta’s

Haneda flight represents true incremental capacity in the ma rketplace to the benefit of

consumers.

4 

### See Order 2009

- 7

- 10, page 17 (“We also examined the changes in inter

- alliance competition.... The ability of the ‘non

- hub’ alliance members to compete at [a hub of another alliance] can benefit both bu siness and leisure passengers.” ); Order 2010

- 2

- 8, pag e 28 (“[E]n h anced inter

- alliance competition is beneficial for consumers across many markets....”)

### Delta Answer Page 11

6. Maintain ing Delta’s SEA

- HND Slots is Critical to U.S. Government Efforts to Open

Haneda.

Delta strongly support s U.S. Government efforts to open Haneda sufficiently so that all

U.S. carriers , including American, can share in the benefits . Haneda is the largest and most

important airport in Japan, and is unquestionably the most convenient airport serving downtown

Tokyo. It is past time to bring Haneda under open skies . The technical talks held on a

gov ernment

- to

- government basis last month in Tokyo confirmed that it is operationally feasible

to do so ; Haneda has plenty of capacity to allow all US carriers to operate their schedules there

.

It is simply a matter of Japan’s political will.

In order to strike a deal with Japan and open the skies over Haneda, the U.S.

Government must secure a sufficient pool of slots to meet U.S. carrier needs. The two Haneda

slots held by Delta represent a small but important step in the direction of what it will take to

open Haneda. Taking slots from Delta and awarding them to American/oneworld only makes

the goal of opening Haneda more difficult. As shown in the table above, oneworld holds a

dominant slot position at Haneda, whereas Delta’s slot holdings are trivial. American would

have the Department take from the poor to feed the rich.

When the Department successfully opened London Heathrow to non

- incumbents under

the landmark 2007 US

- EU open skies agreement, it did not secure sufficient slots to me et all

U.S. carrier needs. I t was understood and expected that the U.S. non

- incumbent carriers would

be able look to their immunized alliance partners to fund new, high value, U.S.

- Heathrow flying

from slots that were being used for lower value intra

- Euro pean service. For example, Air

France leased slots to Delta, and KLM leased slots to Northwest. In fact, s lot leasing or

transfers among the alliances has been actively discussed as one means of opening Haneda.

JAL has a huge cache of slots that could b e made available to American. In addition, the need

for intra

- Japan flying has been and will continue to be reduced as new bullet train service comes

online from Tokyo to nearby cities flown from Haneda.

### Delta Answer Page 12

Unlike Heathrow, however, Haneda slots are highly concentrated and principally held by

JAL and ANA. Delta is in a unique ly difficult position as the only major network carrier serving

Japan without a Japanese alliance partner. In fact, the incumbent alliance carriers have every

reason not to make slots available for Delta to compete. It is therefore imperative that the

Department secure from the Government of Japan the slots that are necessary to move Delta’s

hub and preserve Delta and SkyTeam as a third competitor in the U.S.

- Tokyo ma rketplace.

Moving slots from Delta to American is the worst possible public interest outcome, further

entrenching oneworld at Delta’s expense and moving the goalpost further away in terms of the

number of actual new slots that will be required to obtain i n negotiations with the Government of

Japan.

American observes that “[t]he Department worked long and hard to restore U.S. carrier

access to Haneda after more than three decades of absence.” AA Motion/Answer at 3. This

statement is most ironic considerin g that Tokyo Haneda was a Delta hub (legacy Northwest)

until we were forced move to Narita three decades ago. We agree that U.S. carrier access

should be restored at Haneda, specifically including Delta’s hub operation.

7. Conclusion.

Delta is operating its Seattle

- Haneda slots in full compliance with the Department’s

dormancy conditions, its public interest findings and its precedent. The Department should

swiftly deny American’s and Hawaiian’s attempts to confiscate Seattle’s Haneda flight as

unsuppor ted, unwarranted and unwise.

### Delta Answer Page 13

Respectfully submitted,

_________________________________ Alexander Van der Bellen Managing Director, Regulatory and

International Affairs

& Associate General Counsel
DELTA AIR LINES, INC.

# American has a chronic history of allowing
limited entry frequencies to remain dormant for
periods of 90 days or more

Travel Period Mktg Al Mon Tue Wed Thu Fri Sat Sun Ops/Week

Jan

- 02 AA 7 8 8 8 8 8 7 54

Feb

- 02 AA 7 8 8 8 8 8 7 54

Mar

- 02 AA 7 7 7 8 8 8 7 52

Apr

- 02 AA 7 7 7 8 8 8 7 52

May

- 02 AA 7 7 7 8 8 8 7 52

Jun

- 02 AA 8 9 8 9 8 8 9 59

Jul

- 02 AA 8 9 8 9 8 8 9 59

Aug

- 02 AA 8 9 8 9 8 8 9 59

Sep

- 02 AA 8 8 9 9 9 9 9 61

Oct

- 02 AA 6 5 6 6 5 6 6 40

Nov

- 02 AA 6 5 6 6 5 6 6 40

Dec

- 02 AA 6 5 6 6 5 6 6 40

Jan

- 03 AA 7 6 6 7 6 7 6 45

Feb

- 03 AA 7 6 6 7 6 7 6 45

Mar

- 03 AA 7 6 6 7 6 7 6 45

Apr

- 03 AA 7 6 6 6 6 6 6 43

May

- 03 AA 5 6 6 6 5 6 6 40

Jun

- 03 AA 5 6 6 6 5 6 6 40

Jul

- 03 AA 6 6 6 6 6 6 6 42

Aug

- 03 AA 6 6 6 6 6 6 6 42

Sep

- 03 AA 6 6 6 6 6 6 6 42

Oct

- 03 AA 6 6 6 6 6 6 6 42

Nov

- 03 AA 6 6 6 6 6 6 6 42

Dec

- 03 AA 6 6 6 6 6 6 6 42

Jan

- 04 AA 7 7 7 7 8 8 7 51

Feb

- 04 AA 7 7 7 7 8 8 7 51

Mar

- 04 AA 7 7 7 7 8 8 7 51

Apr

- 04 AA 7 6 6 6 7 7 7 46

May

- 04 AA 7 6 6 7 7 7 7 47

Jun

- 04 AA 7 8 8 8 8 8 7 54

Jul

- 04 AA 7 8 8 8 8 8 7 54

Aug

- 04 AA 7 8 8 8 8 8 7 54

Sep

- 04 AA 7 6 7 6 8 7 8 49

Oct

- 04 AA 7 6 7 6 8 7 8 49

Nov

- 04 AA 7 6 7 6 8 7 8 49

Dec

- 04 AA 7 8 8 8 8 8 7 54 

### DL Exhibit 1
Page 1



## = periods of frequency underutilization
(AA U.S.

- Brazil frequencies 2002

- 2014)

# American has a chronic history of allowing
limited entry frequencies to remain dormant for
periods of 90 days or more

Travel Period Mktg Al Mon Tue Wed Thu Fri Sat Sun Ops/Week

Jan

- 05 AA 7 8 8 8 8 8 7 54

Feb

- 05 AA 7 8 8 8 8 8 7 54

Mar

- 05 AA 7 8 8 8 8 8 7 54

Apr

- 05 AA 7 8 8 8 8 8 7 54

May

- 05 AA 7 6 6 7 7 7 7 47

Jun

- 05 AA 7 8 7 8 8 8 8 54

Jul

- 05 AA 7 8 7 8 8 8 8 54

Aug

- 05 AA 7 8 7 8 8 8 8 54

Sep

- 05 AA 7 6 6 7 8 8 7 49

Oct

- 05 AA 7 6 6 7 8 8 7 49

Nov

- 05 AA 7 8 7 8 8 8 8 54

Dec

- 05 AA 6 7 6 7 7 7 7 47

Jan

- 06 AA 8 8 8 9 8 9 9 59

Feb

- 06 AA 7 7 7 8 7 8 8 52

Mar

- 06 AA 6 7 6 7 7 7 7 47

Apr

- 06 AA 6 5 5 7 7 7 6 43

May

- 06 AA 6 5 5 7 7 7 6 43

Jun

- 06 AA 6 5 5 7 7 7 7 44

Jul

- 06 AA 6 7 6 7 7 7 7 47

Aug

- 06 AA 6 7 6 7 7 7 7 47

Sep

- 06 AA 6 5 5 5 6 6 6 39

Oct

- 06 AA 6 5 5 5 6 6 6 39

Nov

- 06 AA 6 5 5 7 6 7 7 43

Dec

- 06 AA 7 7 7 8 8 8 8 53

Jan

- 07 AA 7 8 7 8 8 8 8 54

Feb

- 07 AA 7 7 7 7 7 7 7 49

Mar

- 07 AA 6 7 7 7 7 7 6 47

Apr

- 07 AA 6 5 5 6 6 6 6 40

May

- 07 AA 6 5 5 6 6 6 6 40

Jun

- 07 AA 6 5 5 8 8 8 7 47

Jul

- 07 AA 6 8 7 8 8 8 7 52

Aug

- 07 AA 6 7 6 7 7 7 7 47

Sep

- 07 AA 6 5 5 5 6 6 6 39

Oct

- 07 AA 6 5 5 5 6 6 6 39

Nov

- 07 AA 7 7 7 7 7 6 6 47

Dec

- 07 AA 7 7 7 7 8 8 7 51 

### DL Exhibit 1
Page 2

# American has a chronic history of allowing
limited entry frequencies to remain dormant for
periods of 90 days or more

Travel Period Mktg Al Mon Tue Wed Thu Fri Sat Sun Ops/Week

Jan

- 08 AA 8 8 8 7 8 8 7 54

Feb

- 08 AA 7 7 7 6 7 7 6 47

Mar

- 08 AA 7 7 7 6 7 7 5 46

Apr

- 08 AA 5 6 5 6 6 6 6 40

May

- 08 AA 5 6 5 6 6 6 6 40

Jun

- 08 AA 6 8 6 8 7 8 8 51

Jul

- 08 AA 7 8 7 8 7 8 8 53

Aug

- 08 AA 6 7 6 7 7 7 7 47

Sep

- 08 AA 6 7 6 7 6 7 6 45

Oct

- 08 AA 6 7 6 7 6 6 6 44

Nov

- 08 AA 8 9 8 8 8 9 7 57

Dec

- 08 AA 8 9 8 9 10 10 10 64

Jan

- 09 AA 9 11 10 9 10 10 10 69

Feb

- 09 AA 8 8 8 8 9 9 9 59

Mar

- 09 AA 8 8 7 8 8 9 8 56

Apr

- 09 AA 6 8 7 7 7 8 7 50

May

- 09 AA 6 8 7 7 7 8 7 50

Jun

- 09 AA 6 8 7 8 8 9 9 55

Jul

- 09 AA 7 9 6 10 7 10 9 58

Aug

- 09 AA 7 9 6 10 7 10 9 58

Sep

- 09 AA 6 6 6 6 6 8 7 45

Oct

- 09 AA 6 6 6 6 6 8 7 45

Nov

- 09 AA 6 7 6 8 8 9 9 53

Dec

- 09 AA 8 8 8 8 8 10 9 59

Jan

- 10 AA 8 9 8 8 8 10 9 60

Feb

- 10 AA 8 9 8 8 8 9 9 59

Mar

- 10 AA 8 8 8 8 8 9 9 58

Apr

- 10 AA 7 8 7 8 7 8 7 52

May

- 10 AA 7 8 7 8 7 8 7 52

Jun

- 10 AA 7 8 7 9 8 9 8 56

Jul

- 10 AA 8 10 8 9 9 9 9 62

Aug

- 10 AA 8 10 8 9 9 9 8 61

Sep

- 10 AA 7 9 7 9 7 9 7 55

Oct

- 10 AA 7 9 7 9 7 9 7 55

Nov

- 10 AA 7 9 7 9 7 9 7 55

Dec

- 10 AA 9 9 10 9 10 11 11 69 

### DL Exhibit 1
Page 3

# American has a chronic history of allowing
limited entry frequencies to remain dormant for
periods of 90 days or more

Travel Period Mktg Al Mon Tue Wed Thu Fri Sat Sun Ops/Week

Jan

- 11 AA 10 11 11 11 11 12 11 77

Feb

- 11 AA 10 11 11 10 10 12 11 75

Mar

- 11 AA 9 10 10 10 10 12 11 72

Apr

- 11 AA 7 9 9 10 9 11 9 64

May

- 11 AA 7 9 9 10 9 11 9 64

Jun

- 11 AA 7 9 9 10 10 11 10 66

Jul

- 11 AA 10 11 10 10 10 11 10 72

Aug

- 11 AA 10 11 10 10 10 11 10 72

Sep

- 11 AA 7 9 9 10 9 11 9 64

Oct

- 11 AA 7 9 9 10 9 11 9 64

Nov

- 11 AA 7 9 9 10 10 11 10 66

Dec

- 11 AA 8 11 11 12 13 12 13 80

Jan

- 12 AA 12 13 13 12 13 12 13 88

Feb

- 12 AA 12 13 12 11 11 12 11 82

Mar

- 12 AA 10 12 11 11 11 12 11 78

Apr

- 12 AA 9 10 9 10 9 11 9 67

May

- 12 AA 9 10 9 10 9 11 9 67

Jun

- 12 AA 9 10 9 12 12 12 12 76

Jul

- 12 AA 12 13 12 12 12 12 12 85

Aug

- 12 AA 12 13 12 12 12 12 12 85

Sep

- 12 AA 10 11 10 11 10 12 10 74

Oct

- 12 AA 11 12 11 12 11 13 11 81

Nov

- 12 AA 11 13 12 13 14 14 13 90

Dec

- 12 AA 13 14 14 16 16 16 15 104

Jan

- 13 AA 16 15 16 16 16 16 15 110

Feb

- 13 AA 16 15 16 16 16 16 15 110

Mar

- 13 AA 15 14 14 15 15 15 14 102

Apr

- 13 AA 13 12 12 13 13 15 13 91

May

- 13 AA 13 12 12 13 13 15 13 91

Jun

- 13 AA 13 13 15 16 16 16 15 104

Jul

- 13 AA 16 15 15 16 16 16 15 109

Aug

- 13 AA 15 15 14 16 15 16 14 105

Sep

- 13 AA 11 11 11 11 11 14 12 81

Oct

- 13 AA 12 11 12 12 13 14 13 87

Nov

- 13 AA 12 11 12 12 13 13 12 85

Dec

- 13 AA 15 16 15 16 16 16 15 109 

### DL Exhibit 1
Page 4

# American has a chronic history of allowing
limited entry frequencies to remain dormant for
periods of 90 days or more

Travel Period Mktg Al Mon Tue Wed Thu Fri Sat Sun Ops/Week

Jan

- 14 AA 16 17 17 17 18 17 17 119

Feb

- 14 AA 16 17 17 17 18 17 17 119

Mar

- 14 AA 14 13 13 14 14 15 14 97

Apr

- 14 AA 14 12 14 13 14 15 14 96

May

- 14 AA 16 17 16 17 17 17 16 116

Jun

- 14 AA 16 16 17 17 17 17 16 116

Jul

- 14 AA 17 16 17 17 17 17 15 116

Aug

- 14 AA 17 16 17 17 17 17 15 116

Sep

- 14 AA 13 12 13 13 13 14 13 91

Oct

- 14 AA 13 12 13 13 13 15 14 93 

### DL Exhibit 1
Page 5

### DL Exhibit 2



# American Airlines certified that it has
implemented a metal neutral, antitrust immune
joint venture with Japan Airlines

# American apparently intends to replace its AA flight # 169/170 LAX

- NRT flights
with AA flight # 169/170 LAX

- HND flights

This cancels out an marginal public benefit

AA may claim for its HND proposal

Mktg Al Alliance Op Al Orig Dest Miles Flight Stops Equip Seats

AA oneworld AA LAX NRT 5,451 169 0 777 247

AA oneworld AA NRT LAX 5,451 170 0 777 247 

# Current AA LAX

- NRT Schedules as published in OAG

AA LAX

- HND schedules now proposed in OST

- 2010

- 0018 DL Exhibit 3

### C ERTIFICATE OF SERVICE

A copy of the foregoing document has been ser ved this 17 th 

### day of October, 2014 , upon the following persons via email:

howard.kass@aa.com

abigail.donovan@aa.com

robert.wirick@aa.com

charles.hunnicut@thompsonhine.com

patricia.snyder@thomsponhine.com

jhill@cooley.com

perkmann@cooley.com

bberlin@cooley.com

dan.weiss@united.com

thomas.bolling@united.com

steve.morrissey@united.com

lhalloway@crowell.com

gmurphy@crowell.com

Mike.Donatelli@alpa.org

dino.atsalis@alpa.org

Doug.Ralph@alpa.org

Ishiwata.K@portseattle.org

Safora.I@portseattle.org

sascha.vanderbellen@delta.com

chris.walker@delta.com

paul.gretch@dot.gov

brian.hedberg@dot.gov

brett.kruger@dot.gov

todd.homan@dot.gov

peter.irvine@dot.gov

englets@state.gov

cristinasa@state.gov

eugene_alford@ita.doc.gov

info@airlineinfo.com