BEFOR E TH E DEPARTMEN TO F TRANSPORTATIO N

WASHINGTON , D.C

. 'S^ORiAiiQ H

U.S.-Japa n Allianc e Cas e Docke tDOT-OST-2010-005 9

ANSWE R O F TH E CITYO F HOUSTO N AN D TH E GREATE R HOUSTO N PARTNERSHI P

Communication s wit h respec tt o thi s documen tshoul d b e sen tto : Mari o C

. Dia z Directo r RobertR

. Wigingto n Deput yDirecto r Departmen to fAviatio n CITYO F HOUSTO N 1693 0 Joh n F

. Kenned yBlvd

. Houston , T X7703 2 

### (281)233-300 0 (281 ) 233-185 9 (fax ) Jef fMosele y Chie fExecutiv e Office r GREATE R HOUSTO N PARTNERSHI P 120 0 Smit h Street , Suit e 700 Houston , T X7700 2 

### (713)844-360 0 (713 ) 844-020 0 (fax ) Dated : Jun e 29 , 201 0 Rache l B

. Trinde r ZUCKERT , SCOUT T& RASENBERGER , L.LP

. 88 8 Seventeent h Street , N.W

. Washington , D C 20006-330 9 (202 ) 973-792 7 (202 ) 342-068 3 (fax ) rbtrinder0)zsrlaw.co m Counse l fo rth e Cit yo fHousto n an d th e Greate rHousto n Partnershi pBEFOR E TH E DEPARTMEN TO F TRANSPORTATIO N

WASHINGTON , D.C

. U.S.-Japa n Allianc e Cas e Docke tDOT-OST-2010-005 9

ANSWE R O F TH E CIT YO F HOUSTO N AN D TH E GREATE R HOUSTO N PARTNERSHI P
Th e Cit yo fHousto n an d th e Greate rHousto n Partnershi p (collectively , "Houston "
o rth e "Housto n Parties" ) respectfull ysubmi tthi s answe ri n supporto fth e applicatio n o f Continenta l Airlines , Inc

. ("Continental") , Al l Nippo n Airway s Co. , Ltd

. ("ANA") , an d Unite d Ai rLines , Inc

. ("United" ) fo rapprova l an d antitrus timmunit yfo rthei rallianc e agreement s pursuan tt o 4 9 U.S.C

. § § 4130 8 an d 4130 9 - th e "Pacifi cJ VAgreement " a s se tfort h mor e full yi n thei rapplicatio n date d Decembe r23 , 2009 ("Join t Application") , whic h was file d i n docke tDOT-OST-2009-035 0 an d subsequentl yconsolidate d int o thi s case . Th e Housto n Partie s enthusiasticall ywelcom e th e Join tApplication , th e man y beneficiarie s o fwhic h wil l includ e passenger s travelin g t o an d fro m th e greate rHousto n area , th e Housto n communit yoverall , an d th e nation' s internationa l ai rtransportatio n system
. Housto n urge s tha tth e Join tApplicatio n b e grante d a s soo n a s possible

. I

. CONTINENTAL' S STRENGT H AN D GROWT H AR E A N INTEGRA L PAR TO F HOUSTON' S THRIVIN G ECONOMY , WHIC H I S I N TUR N A KE YENGINE O F TH E U.S

. ECONOMY Housto n ha s lon g bee n a vita l partne rwit h Continenta l i n join teffort s t o develo p a globa l internationa l ai rservic e networ k - a partnershi p tha ti s reflecte d i n th e strengt h
an d succes s o fbot h Continenta l an d Houston' s airports

. I n 197 8 - th e yea rtha t th e U.S

. airlin e industrywas deregulate d - th e City' s flagshi p airport , no wknow n a s Georg eAnswe ro fth e Cit yo fHousto n an d

th e Greate rHousto n Partnershi p Pag e 2 Bus h Intercontinenta l ("lAH") , enjoye d servic e t o 5 0 domesti cdestination s bu tonl y limite d nonsto p internationa l service , wit h acces s onl yt o Mexic o an d thre e Europea n destinations

. Toda ylA H enjoy s servic e t o mor e tha n 10 0 domesti cdestination s an d nonsto p o rdirec tservic e t o 6 8 foreig n destination s o n fou rcontinents

. I n 2009 , lA H ranke d a s th e eighth-larges tinternationa l passenge rgateway , wit h mor e tha n 7. 8 millio n passengers . I tranke d a s th e larges tU.S

. airportfo rMexic o passengers , th e second
larges tU.S

. airportfo rCentra l Americ a passengers , an d th e fourth-larges tU.S

. airport fo rSout h Americ a passengers . Traffi ci n 201 0 i s stron g an d growing , wit h internationa l traffi ca tlA H showin g a n increas e o f7.8 % fo rth e firs tquarte ro f201 0 ove rth e sam e perio d i n 2009

. Traffi cprojection s anticipat e som e 8 0 millio n passenger s flowin g throug h th e Housto n airport s b y2020 , wit h significan tincrease s i n th e numbe ro f internationa l passengers . Th e growt h o fContinental' s internationa l service s ha s playe d a ke yrol e i n th e developmen to fthi s importan tgloba l network , an d wil l continu e t o d o so . I n 1990 , Continenta l operate d 1 5 internationa l route s fro m Houston

. Toda yi tprovide s service s fro m lA H t o som e 6 0 internationa l destinations , includin g dail yservic e t o long-hau l intercontinenta l market s suc h a s Tokyo , Sa o Paolo , Bueno s Aires , Ri o d e Janeiro , Amsterdam , London , Frankfurt , an d Paris. ^ Thi s remarkabl e globa l expansio n i s th e

^ Continental' s focu s o n th e qualit yo fit s custome rservic e ha s i n tur n enhance d th e overal l servic e qualit y tha tth e Housto n airport s ca n provid e t o thei row n customers ; i n 2010 , Fortun e rate d Continenta l a s th e most-admire d U.S

. airline , fo rth e nint h consecutiv e year . Othe rrecen taward s include : Priorit yPas s Loung e o fth e Yea rfo rContinental' s President s Club s (includin g Nort h Americ a Loung e o fth e Yea rfo r th e clu b a tlAH' s Termina l E) ; "Bes tNort h America n Carrier " i n th e OA G Airlin e o fth e Yea rAwards ; an d "Bes tValu e fo rth e Mone y(International) " i n th e Zaga tAirlin e Survey

. Th e Housto n airport s ar e i n tur n recipient s o fmultipl e awards , recentl yreceivin g to p ranking s fro m Trave l & Leisur e an d th e Airport s Counci l International , amon g others ; th e latte rcustome rsatisfactio n awar d place d lA H amon g th e world' s to p fiv e airports

.Answe ro fth e Cit yo fHousto n an d

th e Greate rHousto n Partnershi p Page s produc to fextensiv e effort s o n multipl e levels , includin g numerou s join tproject s wit h th e Cit yt o develo p th e critica l infrastructur e a tHouston' s airports , an d workin g wit h th e U.S

. Governmen tt o expan d bilatera l opportunities , amon g the m th e recen t U.S.-Japa n Ope n Skie s agreemen ttha tprovide s th e foundatio n fo rth e Pacifi cJ VAgreement

. Whil e man yairport s ar e strugglin g t o attrac tan d maintai n ai rservice , Housto n continue s t o implemen tne wservic e option s worldwide

. Continental' s participatio n i n th e immunize d Sta rAllianc e - despit e havin g bee n implemente d onl ylas t yea r- alread yi s yieldin g multipl e benefit s fo rHousto n an d i s fuelin g a ne wroun d o fgrowth

. Sinc e th e Departmen tapprove d th e expansio n o fth e immunize d grou p o fSta rAllianc e carrier s tha tprimaril yserv e transatlanti cmarket s t o includ e Continenta l (Orde r2009-7 - 10) , Continenta l ha s alread yinstitute d multipl e ne winternationa l service s fro m lAH , whil e Sta rAllianc e partne rAi rCanada ha s institute d ne winternationa l servic e betwee n Housto n an d Montreal

. Continental' s ne wflight s includ e dail ynonsto p servic e betwee n lA H an d Ri o d e Janeir o - furthe rstrengthenin g lAH' s positio n a s th e gatewa yo fchoic e fo rtraveler s an d carg o to/fro m Sout h America ; dail ynonsto p servic e betwee n I A H an d Edmonton , Canada - connectin g Housto n wit h th e importan ttouris t an d energ ycapital
o fAlberta ; dail ynonsto p servic e betwee n lA H an d Frankfurt , German y- Germany' s financia l hu b an d gatewa yt o point s beyon d i n Europe , Afric a an d Asia ; an d twice
weekl yservic e betwee n lA H an d th e Chiapa s regio n o fMexico. ^ I n Novembe r2011 Continenta l wil l launc h Boein g 78 7 Dreamline rservic e nonsto p fro m lA H t o bot h

^ Meanwhile , Singapor e Airlines , whic h starte d Boein g 77 7 servic e i n 200 8 linkin g lAH , Mosco wan d Singapore , ha s increase d it s servic e fro m fou rt o fiv e flight s pe rweek ; Alask a Airlines ha s starte d dail y servic e betwee n lA H an d Seattle ; VivaAerobu s wil l startMonterrey , Mexico-IA H servic e o n Jul y1 ; an d i n MayHouston' s Hobb yAirportdebute d Branso n Ai rExpres s servic e t o Branson , Missouri , an d Southwes t Airline s nonsto p servic e t o Panam a City , Florida

.Answe ro fth e Cit yo fHousto n an d

th e Greate rHousto n Partnershi p Pag e 4 Aucklan d an d Lagos , placin g lA H i n a selec tgrou p o fairport s tha tenjo ynonsto p servic e t o Asia , Europe , th e Middl e East , Sout h America , Afric a an d Australasia. ^ Th e world-clas s facilitie s offere d b yth e Housto n airport s pla ya vita l rol e i n th e growt h o fth e City' s internationa l ai rtransportatio n syste m an d ar e a n essentia l componen ti n th e developmen to fContinental' s globa l network

. Housto n an d Continenta l recentl yannounce d th e completio n o fa $6 5 millio n Termina l C renovation
an d expansio n projec ta tlA H - th e produc to fa partnershi p betwee n airportan d airlin e tha tsignificantl yenhance s th e custome rservic e experience

. Thi s i s bu t th e lates ti n a multi-project , multi-yea rexpansio n a tlA H tha t support s enhancemen to fbot h Houston' s an d Continental' s globa l ai rtransportatio n network.' ' Th e highl ysuccessfu l partnershi p betwee n Continenta l an d Housto n i s a n essentia l componen to fth e Housto n economy , whic h i n tur n i s on e o fth e ke yengine s o f th e U.S

. economy . Despit e man ygloba l challenges , Houston' s econom yremain s a powerhous e o fth e southwes tan d o fth e natio n a s a whole , lyin g a tth e hearto fa ten -

^ Housto n i s als o a majo rgatewa yfo rai rcargo . I n 2009 , lA H processe d mor e tha n 74 0 millio n pound s o f ai rfreight , an d ranke d a s th e 11th-larges tU.S

. airportfo rinternationa l cargo . Indeed , lAH' s carg o facilitie s ar e a prim e exampl e o fho wth e City' s ongoin g ai rservic e developmen teffort s hav e bee n rewarded : lAH' s carg o traffi cexpande d steadil ydurin g th e 1990 s an d surge d durin g th e pos t9/1 1 recovery , an d a s a resul to fthi s growth , Housto n wa s able t o ope n a new , advance d technolog y CargoCente ri n 2003 , providin g a majo rconsolidatio n hu b fo rth e entir e wester n Unite d States

. I n additio n t o th e existin g 550,00 0 squar e fee to fwarehous e space , ram p capacit yfo rtwent y74 7 freighters , an d "one-stop-shopping " fo rfedera l inspectio n processing , i n Decembe r2009 , Housto n opene d a 61,00 0 squar e foo t "Fres h Ai rCargo " cente rfo rtime
- an d temperature-sensitiv e product s suc h a s produce , flowers , an d fish , whic h wil l enabl e ne wcompetitio n wit h traditiona l gateway s fo rperishables , suc h a s Ne wYork , Lo s Angeles , an d Miami

.
* Extensiv e additiona l infrastructur e improvement s a tlA H ar e underwa yi n anticipatio n o fcontinue d futur e growt h fo rbot h carg o an d passengers . I n Novembe r200 9 HA S brok e groun d fo ra new , state-of-the-art replacemen t Termina l Rada rApproac h Contro l ("TRACON" ) facilit y— responsibl e fo rcontrollin g ai rtraffi c ove rsom e 16,00 0 squar e mile s o fairspac e an d handlin g 900,00 0 individua l aircraf toperations ; it s large r siz e an d state-of-the-artequipmen twil l facilitat e implementatio n o fNextGeneratio n technologies , further securin g Houston' s positio n a s on e o fth e world' s mos tsafe , secur e an d accessibl e airportdestinations

.Answe ro fth e Cit yo fHousto n an d

th e Greate rHousto n Partnershi p Pag e 5 count ymetropolita n are a ("Metropolita n Statistica l Area " o r"MSA" ) whos e populatio n approache s 6 millio n an d cover s a n are a large rtha n th e stat e o fMassachusetts ; i t i s th e sixth-larges tMS Ai n th e nation

. Th e Housto n MSA' s Gros s Domesti cProduc t("GDP" ) i s projecte d t o reac h $403. 9 billio n i n 2010 , a GD P large rtha n tha to fColombia , Belgium , Malaysia , Venezuel a o rSweden ; onl y2 8 foreig n nation s hav e a gros s produc t tha texceed s Houston's. ^ Whil e bes tknow n fo rit s rol e a s th e world' s "energ ycapital" , Housto n offer s it s tradin g partner s a diverse , award-winnin g globa l internationa l busines s communit ywit h world-clas s facilitie s fo rmedica l researc h an d treatmen t(includin g th e world' s larges t medica l center) , aerospac e manufacturing , financia l investment , large-scal e internationa l conferences , an d carg o transportatio n an d distribution , amon g othe rfields

. Housto n i s hom e t o 2 5 Fortun e 500 companies , 9 2 foreig n consulates , an d mor e tha n 3,00 0 internationa l firm s an d organizations

. Eigh to fth e 2009 Fortun e "10 0 Fastes t Growin g Companies " ar e headquartere d i n th e Housto n metropolita n area , an d Texas , wit h thirtee n companie s o n th e list , ha s mor e Fortun e 10 0 fastes tgrowin g companie s tha n an yU.S

. stat e othe rtha n California

. Th e Texa s Manufacturer s Registe rshow s tha tbetwee n Apri l 2009 an d Apri l 2010 , Housto n ha d mor e manufacturin g job s tha n an y othe rU.S

. city , comprisin g 19.2 % o fTexas ' manufacturin g employment. ^

^ Th e region' s thrivin g econom yi s growin g faste rtha n th e national rate , an d despit e nationwid e jo b losse s i n recen t years , employmen tforecast s fo rth e metropolita n are a predic ta ne tgai n i n job s fo r2010

. Houston' s highl yeducate d an d skille d workforc e represent s a multitud e o fcultures , includin g resident s fro m 10 0 differen tnationalitie s wh o collectivel yspea k mor e tha n 8 0 differen tlanguages

. Houston' s foreign-bor n citizen s accoun tfo r21.4 % o fth e Housto n MS Apopulation , an d internationa l job s accoun tfo r a dominantportio n o fth e 2.4 6 millio n jo b economy . ^ A s th e mos tpopulou s cit yi n Texas , Housto n lie s a tth e hearto fon e o fth e nation' s mos tenergeti can d prosperou s states
. Texa s rank s numbe ron e i n th e numbe ro fFortun e 50 0 companie s headquarter s (continued... )Answe ro fth e Cit yo fHousto n an d

th e Greate rHousto n Partnershi p Page s Wit h servic e fro m 2 2 U.S

. an d foreig n carrier s tha tcarrymor e tha n 4 0 millio n passenger s t o 17 0 destination s eac h year , a s wel l a s servic e fro m 1 1 carg o carrier s operatin g to/fro m destination s worldwide , domesti can d internationa l companie s rel yo n lAH' s globa l ai rservic e networ k fo rth e transportatio n tha ti s essentia l t o efficien t functionin g an d growt h o fthei rbusinesses

. II

. TH E IMMUNIT YSOUGH TWIL LSTRENGTHE N CONTINENTA LAN D IT S FUTUR E I N TH E TRANSPACIFI C MARKET , AN D WIL LBRIN G EXTENSIV E BENEFIT S T O CONSUMER S Wit h lAH' s succes s s o closel ylinke d wit h tha to fContinental , i ti s vitall yimportan t t o th e Housto n Partie s tha tContinenta l obtai n th e additiona l authorit yi trequire s i n orde r t o prospe ri n th e lon g term
. Thi s i s particularl ys o give n th e challenge s tha tairline s an d th e econom ya s a whol e no wface

. Th e immunit yrequeste d i n thi s proceedin g present s a win-wi n scenari o fo rth e publi can d fo rth e Department , becaus e i twil l no tonl ycemen t Continental' s futur e i n th e transpacifi cmarke tbu tals o ensur e tha tconsumer s wil l benefi tfro m Continental' s enhance d Pacifi cpresence . I n it s orde rtentativel yapprovin g a simila rintegrate d join tventur e amon g oneworl d carriers , DO Tnote d tha t likel y benefit s o fantitrus timmunit yincluded : "(1 ) mor e option s fo rtraveler s i n numerou s .. . cit ypairs , base d o n th e applicants ' abilit yt o closel ycoordinat e schedule s an d inventory an d t o achiev e far e combinability ; (2 ) lowe rfare s resultin g fro m th e reductio n i n double marginalizatio n o n multi-segmen titineraries ; (3 ) volum e discountin g mad e possibl e whe n th e allianc e partner s carrymor e passenger s pe rfligh tan d enjo ymor e efficien t locations ; i ti s th e nation' s numbe ron e exportin g state ; an d Texa s ha s th e highes tpopulatio n growt h i n th e country
. Th e stat e consistentl yreceive s th e highes tmark s o n multipl e fronts , includin g recentl yfo r "Bes t Stat e T o D o Business " (Chie fExecutiv e Magazine) , "America' s To p Stat e fo rBusiness " (CNBC) , "Mos tFavorabl e Busines s Climat e I n Th e Nation " (Developmen tCounselor s International) , an d "Bes t Busines s Climate " (Sit e Selectio n Magazine)

.Answe ro fth e Cit yo fHousto n an d

th e Greate rHousto n Partnershi p Pag e 7 utilizatio n o fcapacity ; (4 ) expande d acces s t o discounte d fare s resultin g fro m coordinate d inventory ; (5 ) reduce d cost s throug h share d sales , marketing , distribution , procurement , flee tassignment , an d frequent-flye rprogram management ; an d (6 ) expande d opportunitie s t o ear n an d redee m mile s du e t o th e airlin e partners ' abilit yt o shar e risks. " Orde r2010-2-8 , a t30

. Th e sam e reasonin g tha tapplie d t o th e American
le d transatlanti cventur e i s equall yapplicabl e i n th e instan tproceeding

. Approva l o fth e Join tApplicatio n wil l brin g importan tan d quantifiabl e benefit s - suc h a s a tota l o fa tleas t$8 0 millio n i n annua l consume rbenefits , se e Join tRespons e o fANA/Continental/Unite d t o Orde r2010-4-9 , a t 5 (Ma y14 , 2010 ) - t o communitie s suc h a s Houston , an d thu s canno thappe n to o soon . Althoug h Continental' s existin g immunit yenable s i tt o bes tcoordinat e service s wit h Unite d an d majo rEuropea n carrier s i n mos tinternationa l markets , thi s immunit ydoe s no tincorporat e ANA , th e larges t Asia n carrie r(measure d b ypassengers ) i n th e Sta rAlliance

. Whil e Continental' s Toky o servic e sinc e 199 8 ha s bee n a majo rcomponen to fth e City' s ai rtransportatio n network

. Continenta l a s a stand-alon e carrie rha s a limite d presenc e i n Asia

. Antitrus timmunit y woul d enabl e th e pro-consume rbenefit s tha thav e alread ybee n prove n t o flo wfro m suc h arrangement s t o improv e U.S.-Asi a market s generall yan d th e U.S.-Japa n marke t i n particular , vi a ANA' s Toky o gateway s an d immunize d coordination

. Th e Housto n Partie s als o expec ttha tfurthe rgrowt h wil l b e unlocke d b yimmunit y- j^^e^ , b ylinkin g AN Aan d Continental' s behind-gatewa ynetwork s a teac h end , i ti s mor e probabl e tha t AN Awil l initiat e it s ow n service s i n th e Houston-Toky o market

. Thi s marke tstrengthenin g wil l enabl e close rtie s wit h Japa n an d othe rEas tAsia n countrie s tha talread ypla ya ke yrol e i n Houston' s economy . I n 2009 , th e tota l trad eAnswe ro fth e Cit yo fHousto n an d

th e Greate rHousto n Partnershi p Page s betwee n Housto n an d Eas tAsi a (a s define d b yth e CI AWorl d Factbook ) was value d a t
mor e tha n $1 7 billion

. Japa n alon e accounte d fo r$2. 8 billio n o fthi s trade , mor e tha n $43 5 millio n o fwhic h (wit h a tota l weigh to f3. 8 millio n kilograms ) was transporte d by air

. Th e valu e o fHouston-Japa n trad e ha s increase d a ta compoun d annua l rat e o f 3.9 % sinc e 2000 , an d Housto n i s Japan' s 11th-larges tai rcarg o trad e partne ri n th e U.S. ^ Housto n anticipate s tha tantitrus timmunit ywil l enhanc e th e opportunitie s fo r furthe rgrowt h i n Houston-Japa n an d Houston-Eas tAsi a trade

. Finally , th e Housto n Partie s concu rwit h th e analysi s presente d b yth e Join t Applicatio n tha tth e antitrus timmunit yrequeste d i s consisten twit h th e applicabl e statutoryrequirement s an d precedent s se tfort h i n prio rantitrus timmunit yproceedings , includin g th e aforementione d approva l o fContinental' s integratio n int o th e immunize d groupin g o fSta rAllianc e carrier s i n th e transatlanti cmarket ; th e Department' s prio r approva l o fa transatlanti capplicatio n b ySkyTea m carriers ; an d it s tentativ e approva l o f
a simila rapplicatio n b yoneworl d carrier s (Orde r2010-2-8)

. Th e onl ydistinguishin g facto rbetwee n thos e proceeding s an d th e instan tcas e lean s heavil yi n favo ro fantitrus t immunity ; namely , tha tJapa n an d Eas tAsi a compris e a parto fth e worl d tha tha s ye tt o full yexperienc e th e benefit s o fsuc h immunity , sinc e fe wcountrie s i n th e regio n hav e

^ Additionally , th e trad e betwee n Housto n an d Eas tAsi a ha s increase d a ta compoun d annua l rat e o f 11.7 % sinc e 2000 , an d Housto n i s th e region' s 12th-larges tai rcarg o trad e partne ri n th e U.S

. Th e Greate rHousto n Partnershi p report s tha tmor e tha n 52 0 Housto n companie s hav e busines s o rtrad e connection s wit h Japan , an d tha tHouston-base d companie s hav e mor e tha n 50 0 subsidiarylocation s i n Japan

. Nearl y10 0 subsidiarie s o fJapanes e companie s ar e locate d i n Houston , i n additio n t o a trad e offic e o fth e Japa n Oil , Ga s an d Metal s Nationa l Corporation

. Ther e ar e als o extensiv e cultura l tie s betwee n Housto n an d Japan , a s wel l a s Eas tAsi a generally

. Japa n maintain s a consulat e i n Houston , an d Housto n i s a siste rcit yo fChiba , Japan

. Accordin g t o th e U.S

. Censu s Bureau , mor e tha n 100,00 0 Housto n resident s (o r5.5 % o fth e City' s tota l population ) identif ythemselve s a s Asian-American , makin g Housto n hom e t o th e larges tsuc h communit yi n th e southwes tUnite d States

. Th e Housto n MS Aa s a whol e ha s a tota l Asian-America n populatio n o f334,118 , o r5.8 % o fth e MSA' s tota l population , makin g i t th e 9th-larges tAsia n populatio n i n th e nation

.Answe ro fth e Cit yo fHousto n an d

th e Greate rHousto n Partnershi p Pag e 9 entere d int o Ope n Skie s agreement s wit h th e U.S

. Th e immunit ysough tbyth e Join t Applicatio n woul d b e a n appropriat e culminatio n o fth e decade s o fnegotiation s t o liberaliz e th e U.S.-Japa n market

. No rdoe s th e Join tApplicatio n rais e an yspecifi c competitiv e concerns . Indeed , antitrus timmunit ywil l enabl e ANA , Continental , an d Unite d t o bette rcompet e wit h th e onl yU.S

. carrie rtha toperate s a hu b i n Tokyo , Delt a Ai rLine s (th e successo rt o Northwes t Airtines ' histori cprivilege d positio n i n Tokyo) , an d wit h th e larges tJapanes e carrier , JA L(which fo rdecade s wa s th e onl yinternationa l Japanes e carrie ran d continue s t o operat e fa rmor e service s tha n ANA)

. Give n thes e conditions , Housto n expect s tha tth e antitrus t immunit yrequeste d wil l brin g additiona l competitio n an d significan tpubli cbenefits. ^ WHEREFORE , th e Housto n Partie s urg e th e Departmen tt o expeditiousl ygran t th e pendin g applicatio n o fContinental , AN Aan d United , whic h Housto n believe s fulfil l al l o fth e statutoryan d othe rrequirement s fo ra gran to fantitrus timmunity

.

^ Th e merit s o fJAL' s ow n applicatio n fo rantitrus timmunit ywit h America n Airline s shoul d b e considere d separatel yan d o n thei row n merits , withou tdelayin g th e revie wo fth e Join tApplication

. Se e Orde r2010 - 3-1 0 (findin g that , pursuan tt o DO Trules , consolidatio n o fth e AA/J Lapplicatio n tha twa s file d i n docke t DOT-OST-2010-003 4 wit h th e Join tApplicatio n "wil l b e conduciv e t o th e prope rdispatc h o fit s busines s an d t o th e end s o fjustic e an d wil l no tundul ydela yth e proceedings")

.Answe ro fth e Cit yo fHousto n an d

th e Greate rHousto n Partnershi p Pag e 1 0 Respectfull ysubmitted ,



# £ , ocJ^-^J ^ 

## ViA^^^^l ^ Rache l B

. Trinde r ZUCKERT , SCOUT T& RASENBERGER , L.L.P

. 88 8 Seventeent h Street , N.W

. Washington , D C 20006-330 9 (202 ) 298-866 0 (202 ) 342-068 3 (fax ) rbtrinder@zsrlaw.co m Counse l fo rth e Cit yo fHousto n an d th e Greate rHousto n Partnershi p Dated : Jun e 29 , 201 0CERTIFICAT E O F SERVIC E

I certif ytha to n thi s 29t h da yo fJun e 2010 , a cop yo fth e foregoin g was serve d o n th e partie s name d belo wi n accordanc e wit h th e Department' s Rule s o fPractice

.

Jame s A

. Thumpsto n RobertP

. Silverber g Counse l fo rAB XAi r rsilverberq@sqbdc.co m Russel l Baile y Davi d Semanchi k Louis e Fawbus h Ai rLin e Pilot s Associatio n russell.bailev@alpa.or g david.semanchik@alpa.or q louise.fawbush@alpa.or q To m Fosk o Ai rTranspor tInternationa l LL C tom.fosko@airtransport.c c Mari e Chopr a Emili e Kraft Edga rJame s Davi d Dea n Allie d Pilot s Associatio n mchopra@jamhoff.co m eskraft@iamhoff.co m ejames@iamhoff.co m dpdean@iamhoff.co m Charle s J

. Simpson , Jr

. Davi d M

. Endersbe e Counse l fo rAl l Nippo n Airway s cisimpson@zsrlaw.co m dmedersbee@zsrlaw.co m Car l B

. Nelso n Jeffre yA

. Oga r RobertWiric k Jef fOga r R

. Bruc e War k J

. Ott o Gruno w NancyS

. Spark s Angelin e Garbuzinsk i FedE xExpres s nssparks(5jfedex.co m anbird@fedex.co m Marshal l S

. Sinic k Charle s F

. Donle y Counse l fo rFlorid a Wes tInternationa l Airway s msinick(@ssd.co m cdonlev@ssd.co m Moffet tB

. Rolle r Counse l fo rGemin i Ai rCarg o mroller@rollerbauer.co m Jonatha n B

. Hil l J

. Parke rErkman n Lyn n M

. Deaver s Counse l fo rHawaiia n Airline s ihill@dowlohnes.co m perkmann@dowlohnes.co m ldeavers@dowlohnes.co m Willia m Kara s Caro l Gosai n Counse l fo rJapa n Airline s wkaras@steptoe.co m cqosain@steptoe.co m RobertLan d JetBlu e Airway s robert.land@ietblue.co m Mar k W

. Atwoo d Counse l fo rKalitt a Ai r matwood@sherblackwell.co mAmerica n Airline s

carl.nelson@aa.co m ieffrev.oqar@aa.co m robert.wirick@aa.co m jeff.ogar@aa.co m bruce.wark@aa.co m otto.grunow@aa.co m Andre wB

. Steinber g Counse l fo rAmerica n Airline s absteinberg@ionesdav.co m Joh n L

. Richardso n Counse l fo rAmerije tInternationa l irichardson@johnlrichardson.co m Lawrenc e D

. Wask o Counse l fo rArro wAi r ldwasko@erols.co m Steve n H

. Lachte r Counse l fo rAsta rAi rCarg o slachter@lachter-clements.co m Ke n Quin n Counse l fo rASTA/ITS A kquinn@pillsburvwinthrop.co m Russel l E

. Pomme r Atla s Ai r rpommer@atlasair.co m Pierr e Murph y Counse l fo rBrenda n Airway s pmurphv@lopmurphv.co m Do n H

. Hainbac h Counse l fo rBritis h Airway s dhainbach@ggh-airlaw.co m Willia m C

. Evan s Counse l fo rCenturio n Ai rCarg o bill@mietuslaw.co m Hershe l I

. Kame n Rebecc a Co x Thoma s Newto n Boilin g Da n Weis s Abb yBrie d Kevi n Montgomery Pete rBecket t Pola rAi rCarg o kevin.montgomerv@polaraircargo.co m peter.beckett@polaraircargo.co m Aaro n Goerlic h Counse l fo rSouther n Ai r agoerlich@gqh-airlaw.co m Bo b Kneisle y Southwes tAirline s bob.kneislev@wnco.co m Joann e W

. Youn g Davi d M

. Kirstei n Counse l fo rSpiri tAirline s dkirstein@vklaw.co m ivoung@vklaw.co m Jeffre yManle y Juli e Oettinge r Ric k Frazie r Steve n Fu s Annale i Avancen a Unite d Ai rLine s ieffrev.manlev@united.co m iulie.oettinger@united.co m rick.frazier@united.co m steven.fus@united.co m annalei.avancena@united.co m Bruc e R

. Rabinovit z Davi d Hefferna n Kennet h Hine s Cary n Garvi n Counse l fo rUnite d Ai rLine s bruce.rabinovitz@wilmerhale.co m david.heffrenan@wilmerhale.co m kenneth.hines@wilmerhale.co m carvn.garvin@wilmerhale.co m Davi d L

. Vaugha n Daniell e Fishe r Counse l fo rUnite d Parce l Servic e dvaughan@kellevdrve.co m dfisher@kellevdrve.co mDougla s Kelle y

Kevi n Pau l Lewi s Matthe wPace y Continenta l Airline s hkamen@coair.co m rebcca.cox@coair.co m thomas.bolling@coair.co m dan.weiss@coair.co m abbv.bried@coair.co m douglas.kellev@coair.co m kevin.lewis@coair.co m matthew.pacev@coair.co m R

. Bruc e Keiner , Jr

. Mega n Ra e Rosi a Lorrain e B

. Hallowa y Geral d F

. Murph y Counse l fo rContinenta l Airline s rbkeiner@crowell.co m mrosia@crowell.co m lhallowav@crowell.co m gmurphv@crowell.co m Michae l F

. Goldma n Counse l fo rDallas-For tWort h Airpor t mgoldman@sgbdc.co m Sasch a Va n de rBelle n Richar d B

. Hirs t Pete rB

. Keene y Andre a Fische rNewma n Jef fMorga n Samett a C

. Barnet t Scot tMcClai n Delt a Ai rLine s sascha.vanderbellen@delta.co m richard.hirst@delta.co m peter.keenev@delta.co m andrea.newman@delta.co m ieff.morgan@delta.co m sametta.c.barnett@delta.co m scott.mcclain@delta.co m Joh n Pal o Evergree n Airline s iohn.palo@evergreenairlines.co m charters@evergreenairlines.co m Howar d Kas s Benjami n Slocu m U S Airway s howar d kass@usairwavs.co m beniamin.slocum@usairwavs.co m RobertE

. Coh n Patric k R

. Rizz i Counse l fo rU S Airway s recohn@hhlaw.co m prrizzi@hhlaw.co m Anit a M

. Mosne r Soph yChe n Counse l fo rVirgi n Atlanti cAirway s anita.mosner@hklaw.co m sophv.chen@hklaw.co m Mar k McMilli n Worl d Airway s mcmillin@woa.co m Joh n M

. Alle n Fligh tStandard s Servic e Federa l Aviatio n Administratio n john.allen@faa.go v Donn a Kooperstein , Chie f Transportation , Energy , an d Agricultur e U.S

. Departmen t o fJustic e donna.kooperstein@usdoj.go v Joh n R

. Byerly , Deput yAssistan t Secretaryfo rTransportatio n Affair s U.S

. Departmen to fStat e bverlyir@state.go v Est a Rosenber g U.S

. Departmen to fTransportatio n esta.rosenberg@dot.go v Dwigh tMoor e U.S

. Transportatio n Comman d dwight.moore@ustranscom.mi lE d Faberma n

Counse l fo rFrontie rAirline s an d AirTra n Airway s efaberman@wilevrein.co m