Joint Application of 

ALASKA AIRLINES, INC. 

and 

AMERICAN AIRLINES, INC. 

for transfer of international route authority 

pursuant to 49 U.S.C. §§ 40109,41105 

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_________________________________ ) 

Application of 

ALASKA AIRLINES, INC. 

for amendment of exemption 

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_________________________________ ) 

Application of 

AMERICAN AIRLINES, INC. 

for amendment of exemption 

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_______________________________ ) 

Docket DOT-OST-2015-0025 

Docket DOT-OST-2005-20406 

Docket DOT-OST-2010-0222 

JOINT ANSWER OF 

ALASKA AIRLINES, INC. AND AMERICAN AIRLINES, INC. 

TO OBJECTIONS OF DELTA AIR LINES, INC. 
Alaska Airlines, Inc. 

19300 International Boulevard 

Seattle, Washington 98188 

jeremy.ross@alaskaair.com 

David Heffernan 

Cozen 0' Connor 

The Army & Navy Club Building 

1627 I Street, N.W. 

Suite 1100 

Washington, D.C. 20006 

(202) 463-2537 

dheffernan@cozen.com 

Counsel for Alaska Airlines, Inc. 

DATED: May 4, 2015 

Robert A. Wirick 

Managing Director, Regulatory and 

International Affairs 

Abigail Donovan 

Director, Congressional and Federal Affairs 

American Airlines, Inc. 

1101 1 i 11 Street, N.W. 

Washington, D.C. 20036 

(202) 326-5153 

howard.kass@aa.com 

robert.wirickrW,aa.com 

abigai l.donovan@aa.com 
Joint Application of 

ALASKA AIRLINES, INC. 

and 

AMERICAN AIRLINES, INC. 

for transfer of international route authority 

pursuant to 49 U.S.C. §§ 40109,41105 

) 

) 

) 

) 

) 

) 

) 

) ______________________________) 

Application of 

ALASKA AIRLINES, INC. 

for amendment of exemption 

) 

) 

) 

) 

) 

) _________________________________) 

Application of 

AMERICAN AIRLINES, INC. 

for amendment of exemption 

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) 

) 

) 

) 

) __________________________________) 

DATED: May 4, 2015 

Docket DOT-OST-2015-0025 

Docket DOT-OST-2005-20406 

Docket DOT-OST-2010-0222 

JOINT ANSWER OF 

ALASKA AIRLINES, INC. AND AMERICAN AIRLINES, INC. 

TO OBJECTIONS OF DELTA AIR LINES, INC. 

American Airlines, Inc. ("American") and Alaska Airlines, Inc. ("Alaska") (collectively, 

the "Joint Applicants") submit this joint answer to the objections of Delta Air Lines, Inc. 
code on American's new Los Angeles-Mexico City tlights. 2 No party other than Delta has 

objected to the Joint Application or the show cause order. 

Delta offers no basis for the Department to alter its tentative findings and conclusions. 

Rather, Delta merely restates arguments that the Department, with sound reasoning, rejected in 

the show cause order. The core of Delta's legal argument is that the Department should 

disregard the precedent reflected in the Horizon-San Juan Canadian Transfer Case that "the 

proper regulatory framework for exemption route transfers [i]s the same as for certificate 

transfers."3 Delta continues to insist that the 1997 US-Argentina All-Cargo Frequency 

Proceeding supports the proposition that carrier selection is required in this case. The 

Department, however, sensibly rejected that argument in the show cause order, noting "[t]hat 

1997 case did not involve the traditional type of route transfer that was before the Department in 

1989 [in the Horizon case], and that is before the Department here."4 

Next, Delta argues that, "even if the ... Horizon case is controlling," comparative 

consideration of the Delta and American applications is "still required. "5 Delta then contradicts 

this assertion by implicitly conceding what is indisputably true: that the decision whether to 

initiate a carrier selection proceeding in these circumstances is a matter of discretion for the 

1 Objections of Delta Air Lines, Inc., Apr. 27,2015 (Docket DOT-OST-2015-0025). 

2 Order 2015-4-10 (Docket DOT -OST -20 15-0025). 

3 !d. at 4, citing Horizon-San Juan Canadian Transfer Case, Orders 89-3-22 and 89-5-14. 

4 Order 2015-4-10 at 4. 

5 Objections of Delta at 2. 

2 
service and Alaska's continued presence in the Los Angeles-Mexico City market via codesharing 

satisfy that test. 7 The Department again noted its longstanding "general policy disfavoring 

consolidation" absent "strong public policy reasons for reviewing the service needs and status of 

the market."8 The Department then concluded that "the current condition of the U.S.-Mexico 

market does not warrant deviating from our normal disinclination to consolidate competing route 

applications with a transfer request."9 

In short, the Department, applying the correct statutory standard, tentatively found that 

the Joint Applicants have satisfied the prerequisites for approval of their proposed route transfer 

and that Delta fai led to persuade the Department that it should deviate from its general policy 

disfavoring comparative consideration of competing applications. Delta's repetition of 

arguments that the Department soundly rejected in the show cause order provides no basis for the 

6 Order 2015-4-10 at 5-6. Delta does not contest the Department's finding that the Joint Applicants have satisfied 

that test. 

7 ld. at 6. Delta argues that it should be awarded the route authority because it is "a much smaller player in the 

overall U.S.-MEX marketplace." Objections of Delta at 3. Delta's attempt at modesty is disingenuous. Delta 

neglects to mention that, in addition to its own substantial services to Mexico, it has a codeshare alliance with 

Aeromexico, which is by far the largest Mexican carrier, and that those two carriers have applied for approval and 

antitrust immunity for a "comprehensive" integrated joint venture agreement and other commercial agreements that 

would afford Delta a distinct competitive advantage in "the overall U.S.-MEX marketplace." Joint Application for 

Approval of and Antitrust Immunity for Alliance Agreements of Delta Air Lines, Inc. and Aerovias de Mexico, S.A. 

de C. V ., Mar. 3 I, 2015 (Docket DOT -OST-20 15-0070). 

8 Order 2015-4-10 at 6. Delta previously supported this policy and invoked it in support of Delta's joint request 

with US Airways to approve a transfer of Brazil frequencies. See Contingent Joint Application of US Airways, Inc. 

and Delta Air Lines, Inc. for Transfer of Frequencies and Contingent Application of US Airways, Inc. for 

Amendment of Exemption, Aug. 24, 2009 (Dockets DOT-OST-2009-0 197, 2009-0003), at 5-6. 

9 ld. 

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Joint Applicants to begin advertising and selling tickets as soon as possible, the Joint Applicants 

respectfully request that the Department promptly issue an order finalizing the findings and 

conclusions of the show cause order, and affirming the transfer of the Los Angeles-Mexico City 

route to American subject to the conditions set forth in the show cause order. 

Respectfully submitted, 

Jeremy Ross 

Senior Attorney, Litigation and Regulatory 

and Director, Legal 

Alaska Airlines, Inc. 

19300 International Boulevard 

Seattle, Washington 98188 

jeremy. ross@alaskaair. com 

David Heffernan 

Cozen O'Connor 

The Army & Navy Club Building 

1627 I Street, N.W. 

Suite 1100 

Washington, D.C. 20006 

(202) 463-2537 

dheffernan(a>cozen.com 

Counsel for Alaska Airlines, Inc. 

DATED: May4,2015 

4 

Howard Kass 

Vice President - Regulatory Affairs 

Robert A. Wirick 

Managing Director, Regulatory and 

International Affairs 

Abigail Donovan 

Director, Congressional and Federal Affairs 

American Airlines, Inc. 

1101 17111 Street, N.W. 

Washington, D.C. 20036 

(202) 326-5153 

howard .kass({U,aa.com 

robert.wirick(a>aa.com 

abigail.donovanUl1aa.com 
cristinasa@state.gov (Department of State) 

brian.hedberg@dot.gov (Department o.fTransportation) 

todd.homan@dot.gov (Department o.fTransportation) 

peter.irvine@dot.gov (Department of Transportation) 

laura.remo@dot.gov (Department o.fTransportation) 

brett.kruger@dot.gov (Department of Transportation) 

john.s.duncan@faa.gov (Federal Aviation Administration) 

dan. weiss@united.com (United) 

steve.morrissey@united.com (United) 

gmurphy@crowell.com (United) 

sascha.vanderbellen@delta.com (Delta) 

chris. walker@delta (Delta) 

patrick.rizzi@hoganlovells.com (Republic) 

bob. knei sl ey@wnco .com (Southwest) 

robert.land@jetblue.com (JetBlue) 

esahr@eckertseamans.com (JetBlue) 

dderco@eckertseamans.com (JetBlue) 

dkirstein@yklaw.com (Spirit) 

barbara.russell@virginamerica.com (Virgin) 

matwood@cozen.com (Frontier) 

thomas.ting@suncountry.com (Sun Country) 

LEGAL\2273127011 

Kenneth C. Hines