### Administratio n Offic e 777 0 Milto n E . Prob yParkway , Suit e 5 0 Colorad o Springs , CO 80916-496 1 

# COLORAD O - l\rA S SPRING S vvww.flycos.co m AIRPOR T^^^_,^_^^^^.^_^..__,^_^-^^^_ . Marc h12 , 201 0 Th e Honorabl e Raymon dH . LaHoo d Secretary Unite dState s Departmen t o f Transportatio n 120 0 Ne w Jerse y Avenue , S.E . Washington , B.C . 2059 0 Docke t DO TOS T2010-M V Dear Secretary LaHood : W e ar e writin g insupport o f th eapplicatio nfor

anti-trus t immunity an dth e propose djoin t busines s agreemen t

file db y America nAirline s (AA ) an dJapa nAirline s (JAL) . U S Departmen t o f Transportatio n(USDOT ) approva l o f th e propose dallianc e i s essentia l t o th e maintenanc e o f a competitiv e balanc e betwee nth e oneworld , Star an dSkyteamalliances . Approva l o f

th e A/V/JA

Lallianc e wil l hav e apositiv e impac t o nai r trave l b y offerin g customer s more service , schedulin g an dpricin g option s an dwil l hel p ensur e tha t customer s continu e t o enjo y th e benefi t

o f havin g thre e competitiv e airlin e alliance s t o choos e from . Th e increase d competitio nwil l als o promot e th e goal s o f DOT' s Ope nSkie s polic y - first b y solidifyin g U.S. - JapanOpe nSkies , the nb y servin g a s acatalys t for further liberalizatio nacros s th e Asia n continent . USDO Tha s consistentl y supporte dinternationa l alliance s tha t enhanc e consume r

welfare throug h increase dcompetition , an dtha t permi t domesti c carrier s t o improv e th e efficienc y o f thei r networks . It

i s ou r belie f tha t th e authority sough t

b y America nAirline s an dJapanAirline s i s fiilly consisten t

withthi s policy , a s wel l a s pas t grant s o f immunity b y USDOT . W e as k tha t yo u conside r

expeditiou s approva l o f

th e AA/JA Lapplication- . You r leadershi p in thi s matte r

i s greatly appreciated .

Mar&t«rie ^ Du«cto r o f Aviatio n Colorad o Spring s Airport 777 0 Milto nEProb y Parkwa y Colorad o Springs , C O 8091 6 mearle(g).springsgov.co m

### Antitrus t Immun i ual s Mor e Choic e

America n Airline s (AA ) an d Japa n Airline s (JAL ) hav e propose d a Join t Busines s Agreemen t (JBA ) tha t wil l improv e custome rchoice s wit h enhance d an d improve d servic e t o oneworld' s nearl y70 0 destinations , i n almos t 15 0 countries , wit h 7,80 0 dail ydepartures . A s a ke yfirs t step , th e tw o carrier s hav e applie d fo rantitrus t immunit y(ATI ) wit h th e U.S . Departmen t o fTransportatio n t o expan d thei rcooperatio n an d mor e tightl yintegrat e thei rservice s t o delive rmor e benefit s t o customer s tha n i s possibl e today . Th e join t busines s agreemen t - fo rwhic h America n an d JA L mus t secur e antitrus t immunit y- allow s th e airline s t o shar e revenu e o n certai n flight s regardles s o fwhic h airlin e operate s th e aircraft . Whil e th e tw o airline s woul d continu e t o codeshare , th e Join t Busines s Agreemen t differ s fro m a codesharin g agreemen t wher e on e airlin e bear s al l th e cost s bu t anothe rairlin e migh t ge t a shar e o fth e revenu e fo rbookin g a custome ro n a flight . 

### Interallianc e Competitio n i s Necessar yFo r Consumer s T o Receiv e Th e IMaximu m Benefit s Fro m Ope n Side s Th e propose d allianc e betwee n A Aan d JA L i s vita l fo rth e oneworl d allianc e t o compet e effectivel ywit h th e Sta ran d SkyTea m alliances . Thi s increase d interallianc e competitio n wil l i n tu m enhanc e th e benefit s o fth e U.S . DOT' s Ope n Skie s polic y- firs t b ysolidifyin g th e U.S.-Japa n Ope n Skie s Accord , the n b yservin g a s a foundatio n fo rfurthe r liberalizatio n acros s Asia . Today , SkyTea m operate s connectin g hub s a t Toky o Narit a usin g Delta' s incumben t statu s an d a t Seou l wit h Korea n Airiine s whic h alread yha s AT I wit h Delta . Similariy , Sta r Allianc e members . Unite d an d Continental , hav e jointl y applie d fo rantitrus t immunit ywit h thei rallianc e partne rANA , i n Tokyo ; while . Sta rAllianc e als o operate s a connectin g hu b a t Seou l wit h it s antitrus t immunize d partne rAsiana . AA/JAL' s applicatio n wil l ensur e tha t a competitiv e balanc e exist s i n Toky o an d throughou t th e Nort h American-Asi a marketplac e b yallowin g oneworl d t o compet e o n a leve l playin g fiel d wit h SkyTea m an d Sta ralliances . 

### Th e Propose d Allianc e Wil l Creat e Expande d an d Enhance d Rout e an d Schedul e Option s Wit h a dosel yintegrate d allianc e an d immunizedjoin t business , A Aan d JA L wil l hav e greate ropportunitie s t o launc h ne wsen/ic e an d enhanc e thei rexistin g rout e an d schedul e options . Ne wtrans-pacifi croute s wil l b e possible , makin g oneworl d mor e competitiv e wit h Sta ran d SkyTeam . Existin g trans-pacifi cservic e ca n b e optimize d t o provid e mor e valu e t o bot h loca l an d connectin g passenger s a s well . Competitio n i n behind/beyon d route s wil l b e enhance d too , a s oneworld' s integratio n wil l creat e ne wcompetitio n agains t th e existin g Sta ran d SkyTea m trans-pacifi cnetworks . Antitrus t immunit ywil l allo wA Aan d JA L t o offe rlowe rfare s an d a n improve d produc t t o th e mor e tha n 1 1 millio n annua l passenger s travelin g betwee n th e U.S . an d Asia , includin g thos e flyin g betwee n th e ove r15,00 0 ne wgloba l airpor t pair s tha t wil l b e adde d t o oneworld' s immunize d network . Unde ra n immunize d agreement , America n an d JA L wil l coordinat e plannin g effort s i n orde rt o offe rcustomer s a wide rchoic e o ftrave l option s a t competitiv e prices , optimiz e aircraf t capacit yan d groun d facilities , an d t o enhanc e connectin g opportunitie s betwee n thei rrespectiv e networks . Thi s proces s wil l requir e tha t America n an d JA L jointl y asses s thei rU.S.-Japa n schedule s an d connectin g opportunitie s i n orde rt o buil d a mor e integrate d networ k fo rthei r customer s travelin g between , an d beyon d an d behind , thei rrespectiv e trans-pacifi cgateway s i n th e U.S . an d Japan . Element s o fplanne d schedul e coordinatio n Include : •Co-locatio n o

fflight s i n th e sam e airpor t tenninal s wher e possibl e (an d wher

e possible , increasin g th e numbe ro fopportunitie s to mak

e connection s t o othe r service s offere d b

yA Aan d JA L withou t changin g terminals) ; •Retimin g o

fflight s t o ensur

e that A Aan d JA L provid e a complementar

ychoice ofschedule s an d reduce d connectio n times ; an d

•Optimizatio n ofaircraf

t capacity , configurations , an d schedule s t o bette rmee

t custome rpreference s an d achiev e efficiencies . America n an d JA L anticipate th e consume rbenefits fro m thes e change s to includ e Improve d choic e o f flights . Increase d sea t availabilit yo n flight s durin g pea k hours , increase d abilit

yfo rA Aan d JA L to reduc e price s an d ove rtim e ad d flight s an d route s as a resul t ofefficiencies , increase d connectin g traffi c flows , an d mor

e connectin g opportunitie s an d convenien t transfers .



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