## <

U.S. Deportment Assistant Secretary 1200 New Jersoy AI/C.Tlut'. SE of Transportation Washington, DC 20590 Office of the Secretary at Transportation 

### APR 1 2 20
The Honorable Arnold Schwarzenegger Governor ofCalifornia Sacramento, CA 95814 

### Dear 

### Governor Schwarzenegger: Thank you 

### for your letters of December 22 

### and February 26. 

### expressing support for

### trl~ 

### U.S.-Japan Open-Skies Agreement and urging tbeU.S; Department of

### Transportation toexpedittously 

### review

. and approve applications 

### for antitrust 

### itntnunity filed by 

### U;S. and Japanese carriers. I am

respon(iing on behalfof

### the Secretary, Following the 

### announcement (Jfthe open.:skies agreement,. in December 2009, the 

### Department received two applications for 

### antitrust· inlInunity. 

### the first from 

### members of the Star Alliance 

### (AB Nippon 

### Airways, Continental Airlines,and 

### United Airlines) and the second 

### from members of

### the oneworld 

### allif,lOce (American Airlillesand 

### Japan Airlines). Accordingto 

### both applications, 

### the alHance partnerspJan to coordinate their 

### international flights and launch competing 

### joint ventures 

### thrtheconveyance oftt'aftic 

### between the U.S. and Asia. 

### The applications

- which 

### the Depmtment will 

### process l:it 

### the same time

- are administered ina 

### public docket. 

### which ensures that 

### interested parties have the 

### opportunity to .comment. The 

### Department will evaluate the 

### appliCations according 

### to 

### rigorous statutory standarqs; 

### beginning with a review ·ofthe record to detennine if

### it is substantially complete. Decisions on the 

### !,lpplicatiort are made 

### in consultation with 

### the Department of

### JustIce's Antitrust Division 

### foJlowing a thorough analysis ofcompetitive fact9fs. 

### The Department 

### win endeavor to 

### consider the applioations 

### as quickly aspossible,$ubject todueproces8 and 

### administrative requirements. As these 

### matters are now 

### pending, I hope you understand that I cannot comment on their merits. 

### I can assure.you,howevet, that 

### the Department willgive full and fairconsidetation 

### to the applications 

### as well 

### as any comments 

### filed ihlhe 

### dockets. Asisour 

### normaipractice, J 

### a.mplacirlg a copy 

### ofyout letter and this 

### response 

### in Docket 

### DOT

..**OST~201** 

### 0-0059 

### as a contact 

### outside. the 

### record in these 

### matters. I appreciate your interest in these issues.

# Sin~t~a

Susan L. 

### Kurland ,ssistant 

### Secl'etary for Aviation and 

### Intern1}tiOltal Affairs" ,.­ 2023663615 Uno OSTW85 31 {) 1054: 16 a.m.**~** 

### S 1 0-091223-0 1 8 

## •

GOVERNOR ARNOLD SCHWARZENEGGER December 22, 2009

The Honorable Raymond H. LaHood 

### Secretary of

### Transportation 12QO NewJersey 

### A venue. 

## sa Wasnington, DC 20590 

# • Dear Mr. Secretary. I 

### want t6commend 

### the. U.S

.. and Japan on reaching an Open Sides Agreement. Iffully 

### .implemented, this. historic aQCoid woUld help increase competition, 

### enhance cholCe for**con~** lead 

### ,to**mor~** 

### .!let',Vjee fot OllnuDunities in 

### both tbe 

### United States

_ 

### JaJkUl.,Wliile also providing travelers 

### more,airUne**sea~,** 

### tlestinatioQs. routings,**sqh!'dul~** andprioing options, To achieve these goals, 1 support the airline antitrust immUnity envISioned under the Open Sides Agreement, provided 

### that the applicationsultimatelffiled and 

### apptogelidrlsute healthy and robust competition between the competing camers and their**re~tive** /1lliaru:es, The applications being**p~rsued. ~y**  American AirUnes**~d** 

### JJlP8D Airlines apd by United AttJ,ines,**Continen~l** and All**ippon.Alrwa.ys** will**u1tima~ly** benefit CaJlibmia and the United States. In.fbb clutll.enging economk 

### envitolUuent. our**tdrUnes~d.1O** pursue all opportunities t()lIllow them 

### I.\l14 the communities**they·~r:v.c** 

### to competitive in EIQ**~Ilcrea$ingly glQb~llU1ll:ketplace.**  Approval ofthese applications WGuld allow tbcseairlines to gcnc;r.elesignifiWtt pri.ceand

. service benefits for COnsUMerS, help preserve andcnhance servie» to communities**tJuo~sho\lt** the Uw'te!:l State!! and compete 

### more etI'eetively with other international airlines and 

### allianea.**~"** I urge you to ensUre that tbislong..awaited and eagerly anticipated 

### agreement is enacted and tbat the consumer**bel1efi~** are reJJized. Sincerely '"'

•



### .

Arnold Scbwarzenegger 

### Ita

STAre**~APITOt** • SACRAMENTO, CAtlfORN(A 95814 • (91tH H5·2841 ",Wline OSTWIl5 310 03.16·40 pm 

### S10-100301-052

February26,2010 GOVERNOR ARNOLD SCHWARZENEGGER

The Honorable Raymond H. LlfrIood

, Secretary ofTnmsportation

1200 New JerSey Avenue, 

## sa**W~hl.n.gton>** 

### 00 20$90 Dear Mr. Secretary, 

### As you $'e**aw~e.** froln our preVious corteSpondenee, Califomlan$are watching clo$ely for th" 

### fuJi Unplementatic:m ofthe 

### Open Skies**Asreem~nt** 

### between JiWan 

### amt 1;be United States. P$ticularly importtmt to me as**CalifQmi~ts** governor is**i~** p(jtential impact on**touri~l\l.** Tourism generated $.9.1.6billion 'in spendingm Califormtlln 

### 2aOs.,an 

### increase from 2007. Nearly 

### 20 per-cent ofaU 

### toUrism-related dollars 

### in the state in**2~08** WeRt**attti~lltilbJe** to 

### spending by 'international**ti'avel~$.** It is especiQily 

### w.<1rtlt noting in tbis eontext that. visitors. from Ja:pan nwnbefed 6,29,000. 

### scconP only to**th~** United Kingdom at 8t 3;000 fQl' top 

### overseas visitor markets. During ,2008, travel spending in Califomiadireotlysu.pported 924;000jobs, with earnings of$3'0.6 

### billion. It 

### sta11ds to 

### teasontbata 

### more robust**~vel** 

### market betWeetl Japan.andthe' United 

### States would**b9os~ j)vers~**  t()\Ui$fl f\ntli!'1'at a time 

### when prlvate:indU$tl'Y

- iitcl\1d!ng**l)~1'** 

### airlines

-**~d** 

### CalltonUll, IJIld the**{I~iQn ~s** 

### ,a. wbole**f~_** 

### n¢a:rlY**tmpreced~nted** 

### ec.anomic chaitenges.. As I Wrote to you in December,. to achieve these goals; I remain supportive olthe QilUae antitrust iininunity 

### envisiolled under the 

### OpCh Skies Agreement. 

### provided that the applications- ultimately approved ¢nsu,re 

### healthy competition betWeen 

### the! OOmpeu1l8 

### catti:ers.artd**th~Jr** 

### 1'e$pi!lotive allianoes.**1'h~ .~plicwtiofiS**  

### being**purs~ed** 

### by**Amert~** 

### Ai:rUnI;$. 

### United**Ait1mes~** 

### Continental and otherswiJl 

### ultimately benefit California and 

### the United States. ;\pproval of

### these applications**wou~4** 

### allow these, airlines to generate sl$.nitlcant price .and service benefits for conswners, help preserve and enhance service to 

### communities throughout the United States and 

### compete more effectively with 

### other**internati~~** 

### ajrIfnes and 

### alliances. I urge you to**ens~** that tbeseand**otb~~** benefits are realized by seemg that this lonS'rawaited agreement is enacted.**Sin~r<lly.**

Arnold Schwarzenegger /la STATE CAPITOL· SACRAMENto, CALIFORNIA 95814 • (9l6) "'4'·2M1



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