BEFORE THE 

 DEPARTMENT OF TRANSPORTATION 

 WASHINGTON, D. C. 

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

Application of : 

 : 

 AMERICAN AIRLINES, INC. : DOT-OST-2011- 

 : 

Under 49 USC 40109 for an exemption : 

(New York-Mexico City) : 

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

 APPLICATION OF AMERICAN AIRLINES, INC. 

 FOR AN EXEMPTION (NEW YORK-MEXICO CITY) 

Communications with respect to this document should be sent to: 

VIRASB VAHIDI WILLIAM K. RIS, JR. 

Senior Vice President - Senior Vice President - 

Marketing and Planning Government Affairs 

and Chief Commercial Officer American Airlines, Inc. 

American Airlines, Inc. 1101 17th Street, N.W. 

P.O. Box 619616, MD 5634 Washington, D.C. 20036 

DFW Airport, Texas 75161 

 CARL B. NELSON 

KENJI C. HASHIMOTO Associate General Counsel 

Vice President – Strategic American Airlines, Inc. 

Alliances 1101 17th Street, N.W. 

American Airlines, Inc. Washington, D.C. 20036 

P.O. Box 619616, MD 5635 (202) 496-5647 

DFW Airport, Texas 75261 carl.nelson@aa.com 

 

ROBERT A. WIRICK 

Director, Regulatory Affairs 

American Airlines, Inc. 

P.O. Box 619616, MD 5635 

DFW Airport, Texas 75261 

(817) 963-0394 

robert.wirick@aa.com 

July 5, 2011 

 
BEFORE THE 

 DEPARTMENT OF TRANSPORTATION 

 WASHINGTON, D. C. 

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

Application of : 

 : 

 AMERICAN AIRLINES, INC. : DOT-OST-2011- 

 : 

Under 49 USC 40109 for an exemption : 

(New York-Mexico City) : 

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

 APPLICATION OF AMERICAN AIRLINES, INC. 

 FOR AN EXEMPTION (NEW YORK-MEXICO CITY) 

 American Airlines, Inc., under 49 USC 40l09, hereby 

applies for an exemption authorizing scheduled foreign air 

transportation of persons, property, and mail between New York 

(JFK) and Mexico City. 

 American proposes to inaugurate twice-daily nonstop 

service on the JFK-Mexico City route within 120 days of 

receiving all governmental authorities, using 164-seat B737 

aircraft (16C/148Y). Illustrative schedules and other data are 

attached. 

 Under the U.S.-Mexico Air Transport Agreement, as 

amended, New York-Mexico City service may be operated by up to 

two carriers of the United States and up to two carriers of 

Mexico. The two U.S. designations are currently held by Delta 

(serving from JFK) and Continental (serving from Newark). 

Accordingly, American would be the third U.S. carrier in the 

market, and would require extra-bilateral authority to operate 

on the New York-Mexico City. 
 - 2 - 

 

 On June 20, 2011, Volaris, a carrier of Mexico, applied 

in DOT-OST-2011-0117 for exemption authority in three U.S.-

Mexico city-pairs that are also limited by the Air Transport 

Agreement, as amended, to two designations by each Party: 

 Monterrey-Chicago 

 Mexico City-Las Vegas 

 Mexico City-Los Angeles 

 Mexicana and Aeromexico currently hold the two designations available in each of these markets. Although Mexicana 

suspended operations and entered bankruptcy in August 2010, the 

Volaris application states that under Mexican law the Government of Mexico cannot re-assign any of Mexicana’s designations 

while the carrier remains under bankruptcy protection. Thus, 

Volaris is seeking to be the third Mexican carrier designated 

on each of the three routes named above, and would require 

extra-bilateral authority to implement service. 

 American does not object to the Volaris application, 

provided that our New York-Mexico City application in this 

docket is also granted. As Volaris recites in its pleading, 

Mexicana’s absence has left “a number of U.S.-Mexico routes 

with substantially decreased competition, fewer service options 

and higher fares” (p. 4). Those same considerations apply to 

the New York-Mexico City route. 

 
 - 3 - 

 Indeed, the New York-Mexico City market is larger than 

each of the Monterrey-Chicago, Mexico City-Las Vegas, and 

Mexico City-Los Angeles markets, and has a greater need for 

additional service. Based on passenger bookings between the 

U.S. and Mexico for the year ended May 31, 2011 (MIDT), New 

York-Mexico City ranks second, Mexico City-Los Angeles ranks 

third, Mexico City-Las Vegas ranks 15th, and Monterrey-Chicago 

ranks 85th. 

 Rank City-Pair Bookings

 1 Los Angeles-Guadalajara 340,217 

 2 New York-Mexico City 336,744 

 3 Mexico City-Los Angeles 326,054 

 15 Mexico City-Las Vegas 118,176 

 85 Monterrey-Chicago 22,618 

 If the Department decides to grant the extra-bilateral 

Volaris application, the Department should also grant our New 

York-Mexico City request as consistent with the public interest. See Lan Airlines/Lan Cargo, DOT-OST-2005-23236, Notice of 

Action Taken, April 13, 2006 (granting extra-bilateral exemption authority in the public interest); Continental/Alitalia, 

Order 94-9-4, September 6, 1994 (granting extra-bilateral 

exemption authority in the public interest); Delta/Varig, Order 

94-3-33, March 18, 1994 (granting extra-bilateral exemption 

authority in the public interest). 
 - 4 - 

 For the foregoing reasons, the Department should grant 

exemption authority to American to serve the New York-Mexico 

City route. American proposes to enter the market on within 

120 days of receiving all governmental approvals, providing 

important competitive benefits in the second-largest U.S.-

Mexico city-pair. 

 Respectfully submitted, 

 ____________________________ 

 CARL B. NELSON 

 Associate General Counsel 

 American Airlines, Inc. 

July 5, 2011 
CERTIFICATE OF SERVICE

I hereby certify that I have this day served the foregoing document by email 

on the following persons: 

sascha.vanderbellen@delta.com jhill@dlalaw.com 

scott.mcclain@delta.com bill@mietuslaw.com 

sametta.c.barnett@delta.com mgoldman@sgbdc.com 

kquinn@pillsburywinthrop.com rsilverberg@sgbdc.com 

bkeiner@crowell.com dhainbach@ggh-airlaw.com 

esahr@eckertseamons.com mcmillin@woa.com 

bruce.rabinovitz@wilmerhale.com eskraft@jamhoff.com 

thomas.bolling@coair.com dpdean@jamhoff.com 

bob.kneisley@wnco.com dkirstein@yklaw.com 

robert.land@jetblue.com jyoung@yklaw.com 

msinick@ssd.com willim.stallings@usdoj.gov 

cdonley@ssd.com dwight.moore@ustranscom.mil 

gbleopard@fedex.com john.allen@faa.gov 

david.heffernan@wilmerhale.com urskr@state.gov 

kevin.montgomery@polaraircargo.com recohn@hoganlovells.com 

jrichardson@johnlrichardson.com cjsimpson@zsrlaw.com 

lhalloway@crowell.com pmurphy@lopmurphy.com 

efaberman@wileyrein.com lachter@starpower.net 

mroller@rollerbauer.com anita.mosner@hklaw.com 

howard.kass@usairways.com jennifer.nowak@hklaw.com 

benjamin.slocum@usairways.com gmurphy@crowell.com 

dan.weiss@coair.com russell.bailey@alpa.org 

rpommer@atlasair.com 

alfonso.ascencio@volaris.com.mx 

                

     ________________________________   

CARL B. NELSON   

July 5, 2011