1 BEFORE THE DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

__________________________________________ ) Applications of ) ) HAWAIIAN AIRLINES, INC. ) & UNITED AIRLINES, INC. ) Docket DOT-OST-2010-0018 ) in the matter of 2010 U.S.-Haneda ) Combination Services Allocation Proceeding ) __________________________________________)

Sur-Reply of Hawaiian to Delta’s Petition for Reconsideration of Order 2013-11-9 Hawaiian Airlines, Inc. (“Hawaiian”) moves to file this sur-reply submitted in response to Delta’s Supplement to its Petition for Reconsid eration of Order 2013-11-9. In its Petition and Reply, Delta proposes to change the conditions applicable to slot pairs for U.S.-Haneda combination services awarded by the Department to airlines in the current proceeding and prior proceedings. Hawaiian, the smallest carrier op erating to Japan, opposes Delta’s Motion, but should it be granted, Hawaiian belie ves that, as a matter of elemen tal fairness, all prior awards should be reviewed in a new proceeding. The Department should use the new proceeding to eliminate other restrictions on Haneda service, su ch as the hours of operations, to provide a truly unregulated environment in which competition can truly flourish. Under those new rules applicable to all applicants, the Departme nt should re-allocate all Haneda slots. Through a purported “application,” Delta propo ses to alter the ri ghts and conditions applicable not only to the single pair of Haneda slots at issue in this proceeding but all the previously awarded slot pairs. As a threshold matter, Delta’s “appl ication” is not proper because2 Delta has not applied for the Haneda slot pair be ing returned by American Airlines, stating it has no plans to terminate recently approved servi ce from Seattle. More significantly, the proposal was not incorporated into either Order 2013- 11-9 or in the Notice Amending Procedural Schedule issued November 22, 2013. Grant of the Delta’s petition, which w ould constitute relief to a party not particip ating in the current pr oceeding, is defective under the Administrative

Procedure Act. It would simply be unfair and improper for th e Department to initi ate an adjudicatory proceeding based on a single set of assumptions a nd, in the middle of the proceeding, change the rules. Hawaiian, and presumably United, applied to initiate service from Kona and San Francisco respectively, based on the understanding that the single available Haneda slot pair would be

awarded on the same basis as th e prior awards. The purpose of this proceeding is for Hawaiian and United, not Delta, to explain th e merits of their respective pr oposals so that the Department can make an award that is in the public intere st. The carriers’ propos als, arguments and the administrative record necessarily reflect the carriers’ understanding of how those benefits will be realized in light of the existi ng regulatory framework, but Delta proposes to fundamentally alter the operating environment for U.S. carriers. Cha nging the nature of the criteria to award the slots in the middle of the proceeding completely unde rmines the process. Neither the applicants nor the Department’s interest are served in ge nerating a record based on one set of assumptions only to have the rules changed as the proceedi ng progresses. Hawaiian therefore respectfully requests that the Department m ove forward to award the author ity contemplated in Order 2013- 11-9 with all deliberate speed a nd to reject Delta’s Petition. Should the Department grant Delta’s Petition and consider altering the prior designations,

Hawaiian believes that DOT should undertake this re view in a manner that puts all of the prior3 approvals for operations up for revi ew. In receiving two of the four Haneda route rights, Los Angeles and Detroit (now moved to Seattle), Delt a benefited more than any other applicant from the rules established by the Department under th e prior proceeding. The fact that Delta has failed to prosper from that largesse lies, ironic ally, in the limitations of the operating window for U.S. flights into and out of Haneda that Delta wo rks so hard to maintain. Now Delta is trying to pick and choose the limitations which should be liberalized in the hopes of compounding Delta’s already manifest good fortune. Advocating for rules to suit one’s pur pose, while a common strategy, is not however synonymous with the promotion of a competitive environment nor a benefit to the traveling public. So, if the Department decides to accept Delta ’s proposal supposedly offered in the guise of liberalization, Hawaiian suggests that the liberalizati on undertaken should be complete rather than an ad hoc, self-serving (or Delta-serving) approach. In such a proceeding, the reallocated slots should be free from opera ting hour restrictions presentl y imposed on all U.S.-Haneda operations. Under the new ground rules, all inte rested carriers would resubmit proposals and a new comparative review undertaken. Regardless of which path that the Departme nt decides to undert ake, the resulting proceeding should be established such that the De partment can award the available slots in the public interest to the carrier or carriers that provide the most benefits to the traveling public with service proposals that are based upon conditions that are establis hed in advance and not changed halfway through the process. This would require notice to all ca rriers of the changed rules and the opportunity to apply for one or al l of the four slots at Haneda.4 Respectfully submitted.

/s/

Jonathan B. Hill J. Parker Erkmann Benjamin Berlin Dow Lohnes PLLC 1200 New Hampshire Ave., NW #800 Washington, DC 20036 202/776-2700 Counsel for Hawaiian Airlines, Inc.

Dated: November 29, 20135 CERTIFICATE OF SERVICE I hereby certify that a copy of the foregoing Sur-Reply of Hawaiian to Delta’s Petition for Reconsideration of Order 2013-11-9 was served this 29th day of November, 2013 via email transmission on the following: megan.lawrence@alaskaair.com kyle.levine@alaskaair.com francis.heil@aa.com Robert.wirick@aa.com sascha.vanderbellen@delta.com chris.walker@delta.com dan.weiss@united.com Thomas.bolling@united.com steve.morrissey@united.com lhalloway@crowell.com gmurphy@crowell.com howard.kass@usairways.com benjamin.slocum@usairways.com marshall.sinick@squiresanders.com esta.rosenberg@dot.gov robert.finamore@dot.gov brett.kruger@dot.gov paul.gretch@dot.gov todd.homan@dot.gov john.s.duncan@faa.gov urskr@state.gov cristinasa@state.gov info@airlineinfo.com

/s/

J. Parker Erkmann