BEFORE THE FEDERAL AVIATION ADMINISTRATION 

## RECEIVED JUL 07 2015 WASHINGTON, D.C. PART 16 DOCKETS

UNITED AIRLINES, INC., E:omplainant, 

### v. THE PORTAUTHORITY OF NEW YORK AND NEW JERSEY, Respondent. Docket No. FAA-16-14-13

ANSWER OF UNITED AIRLINES, INC. TO THE PORT AUTHORITY OF NEWYORKAND NEW JERSEY'S MOTION FOR LEAVE TO INCLUDE SUPPLEMENTARYMATERIAL IN THE RECORD OF THIS PROCEEDING Communications with respect to this document should be addressed to:

Marc L. Warren Keith J. Harrison Gerald F. Murphy Steven J. Seiden CROWELL & MORING LLP 1001 Pennsylvania Avenue, NW Washlngton, DC 20004 (202) 624-2500 mwarren@crowell.com Robert S. Span Alan K. Steinbrecher Sophy Chen STEINBRECHER & SPAN LLP 1155 F Street, NW, Suite 1050 Washington, DC 20004 (202) 559-8680 rspan@steinbrecherspan.com

Counselfor UnitedAirlines, Inc.

### BEFORE THE FEDERALAVIATION ADMINISTRATION WASHINGTON, D.C.

UNITED AIRLINES, INC., Complainant, v. 

### THE PORTAUTHORITY OF NEWYORK AND NEW JERSEY, Respondent. Docket No. FAA-16-14-13

ANSWER OF UNITED AIRLINES, INC. TO THE PORT AUTHORITY OF NEW YORKAND NEW JERSEY'S MOTION FORLEAVE TO INCLUDE SUPPLEMENTARYMATERIAL INTHE RECORD OF THIS PROCEEDING Complainant UnitedAirlines, Inc. ("United'') hereby answers Respondent The PortAuthority ofNew York and New Jersey's ("Port Authority'') June 19, 2015 Motion for Leave to Include Supplementary Material in the Record ofthis Proceeding ("June 19 Motion"). The PortAuthority argues inthe June 19 Motion that good cause exists for the entry ofan order permittinginclusion ofa June 16, 2015 news release entitled "UnitedAirlines Strengthens New York/New Jersey Hub with Move ofp.s. Transcontinental Service to Newark" ("June 16 News Release") in the record ofthis proceeding.

1The June 16 News Release announces United's plans to transferpremium transcontinental service from John F. Kennedy InternationalAirport ("JFK") to Newark Liberty InternationalAirport ("EWR"). The PortAuthority asserts that statements inthe June 16 News Release are relevant to the issues raised in United's Complaint, includingUnited's claims that the Flight Fee formula at EWR places United at a competitive disadvantage in the New York metropolitan area market, and that the PortAuthority's monopoly power also impacts United's ability to compete. United does not object to inclusion ofthe June 16 News Release in the record. To the extent itmay be relevant, the transfer offlights from JFKto EWR announced in the June 16 News Release is consistent with the facts cited in United's Complaint and inits Answer to the PortAuthority's Motion for Summary Judgment. Specifically, the move from JFKto EWR, despite the excessive, unreasonable, and discriminatory Flight Fee at EWR, demonstrates: (1) the importance to United ofthe New York metropolitan area market; (2) the significant investment that United has made at EWR to be competitive inthe New York metropolitan area market; (3) the inability to replicate atJFKthe facilities and operations United has at EWR; and (4) the fact that EWR serves the same market andpassengers as JFK. United's moving flights to EWR does not alter, and is not inconsistent with, any ofthe facts submittedby United and unrefutedby the PortAuthority. The airfield rates atEWR are stillbyfar the highest in the nation, and 75% higher than

2at JFK. The EWR Flight Fee stillincludes unreasonable and excessive charges and
a hidden mark-up. The EWR Flight Fee still generates excessive surpluses that are used to fund non-airport facilities. The Port Authority continues to have monopoly power in the New York metropolitan area market, and uses that power to impose fees well above those ofotherlarge airport operators.

July 2, 2015 Respectfully submitted,



# ~~~-""'c **~** -"'.r Robert S. Span

3 Alan K. Steinbrecher Sophy Chen STEINBRECHER & SPAN 

### LLP 1155 F Street, NW, Suite 1050 Washington, DC 20004 (202) 559-8680 rspan@steinbrecherspan.com



# QQ~O~ Marc 

### L. Warren Keith J. Harrison Gerald F. Murphy Steven J. Seiden CROWELL 

### &MORING LLP 1001 Pennsylvania Avenue NW Washington, DC 20004 (202) 624-2500 mwarren@crowell.com Counsel for UnitedAirlines, Inc.CERTIFICATE OF SERVICE I certify that I have this date served the foregoing Answer ofUnited Airlines, Inc. on the following persons by overnight express mail, in accordance with the Department's Rules ofPractice: ChiefCounsel Attn: FAA Part 16 Docket Clerk AGC-600 FederalAviation Administration 800 Independence Ave., SW Washington, DC 20591

July 2, 2015 Carlene V. Mcintyre, Esq. Assistant General Counsel Port Authority ofNew York and New Jersey Law Department 25th Floor 4 World Trade Center 150 Greenwich Street New York, NY 10006

StevenJ. Seiden