BEFORE THE DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

) ) ) 2010 U.S.-HANEDA COMBINATION ) Docket DOT-O ST-2010-0018 SERVICES ALLOCATION PROCEEDINGS ) ) )

ANSWER OF THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY

Communications with respect to this document should be sent to:

Susan M. Baer Director Aviation Department The Port Authority of New York and New Jersey 225 Park Avenue South, 9th Floor New York, NY 10003 Bradley Rubinstein Manager, Industry and Regulatory Relations Aviation Department The Port Authority of New York and New Jersey 225 Park Avenue South, 9th Floor New York, NY 10003 Telephone: (212) 435-3741 Email address: brubinst@panynj.gov Carlene V. McIntyre Assistant General Counsel

Arnold D. Kolikoff Attorney Law Department Port Authority of New York and New Jersey 225 Park Avenue South, 14th Floor New York, New York 10003 Telephone: (212) 435-3503 Email address: cmcintyr@panynj.gov DATED: March 1, 2010BEFORE THE DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

) ) ) 2010 U.S.-HANEDA COMBINATION ) Docket DOT-O ST-2010-0018 SERVICES ALLOCATION PROCEEDINGS ) ) )

ANSWER OF THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY

The Port Authority of New York and New Jersey (“the Port Authority”) supports the Department of Transportation on promptly institutin g an expedited proceeding to allocate the four-roundtrip opportunities for service to Tokyo H aneda airport. The Port Authority strongly agrees with the applications by American Airlines t o serve Haneda from John F. Kennedy International Airport (“JFK”) and Continental Airli nes to serve Haneda from Newark Liberty International Airport (“EWR”).

The Port Authority is a multi-modal transportation authority, serving the New York / New Jersey metropolitan area; the nation’s most pop ulated and most affluent. The Port Authority operates the five airports serving the Ne w York / New Jersey metropolitan area – JFK, EWR, LaGuardia, Stewart International and Teterboro airports. The Port Authority operates these airports as a system with the full understand ing that significant segments of the passenger market have strong preferences for certain of these airports over another. As such, the applications by American Airlines and Continental A irlines to serve Haneda from JFK and EWRAnswer of The Port Authority of New York and New Je rsey

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2 are complimentary. Each carrier can serve those si gnificant segments of the market, which have a strong preference for one of these international gateways over another.

The applications of American Airlines and Continent al Airlines to serve the New York / New Jersey metropolitan area are supported by the s trength of the market. The passenger market is the second largest in the continental United Sta tes and the cargo market is equally impressive, with Japan being the second largest export market f rom New York. The cargo market continues to grow with exports increasing from New York to Ja pan by 26% and from New Jersey by 49% over a three year period.

The New York / New Jersey metropolitan area boasts the nation’s highest total personal income, considerably higher than the next most affl uent metropolitan area. In addition to the region’s affluence, the States of New York and New Jersey have the second largest Asian population in the United States and a large concent ration of those with ties to Japan.

In addition to the strength of the New York / New J ersey market, JFK and EWR as gateways for a large number of East Coast and Canad ian cities potentially providing convenient access to Haneda from a large number of communities that would otherwise be denied service. JFK and EWR are two of the world’s most important g lobal gateways with each airport serving

more than 150 worldwide destinations.

The New York / New Jersey metropolitan area has the strongest case for service to Haneda based upon the size and strength of its busi ness community. New York and New Jersey boasts more Fortune 500 companies than any other st ate. These companies and their frequent business travelers need access to Haneda which prov ides unparalleled access to the JapaneseAnswer of The Port Authority of New York and New Je rsey

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3 business community concentrated in downtown Tokyo a nd convenient connections to business centers throughout Japan.

Additional New York/New Jersey-Tokyo service is req uired to meet the strong demand for transportation between the principal financial, commercial, fashion, and media centers of the U.S. and Japan, to satisfy the requirements of trav elers visiting friends and relatives and to further expand the burgeoning volume of tourist tra ffic at New York/New Jersey, a leading center for business, visitor and tourist traffic.

The New York / New Jersey metropolitan area has a l ong-established financial, business and cultural relationship with Japan. This relatio nship is manifested by long-established institutions in the New York / New Jersey metropoli tan area and in Japan. Established in 1907, New York’s Japan Society has evolved into North Ame rica’s single major producer of highquality content on Japan providing access to inform ation on Japan, offers opportunities to experience Japanese culture, and fosters sustained and open dialogue on issues important to the United States, Japan, and East Asia. In 1947 Chase established the first US bank in Tokyo. Today, the Bank of America Merrill Lynch is one of Japan’s leading capital markets, advisory, and securities sales and trading companies. The h eadquarters for Mitsubishi UFJ Merrill Lynch as well as the Merrill Lynch Japan Securities Co., are located in Tokyo. Morgan Stanley has continued to be at the forefront of the development of Japan’s financial markets and has played a leading role in many of the most important and tran sformational transactions of the new

millennium.

The Japanese market is so important to IBM that the company’s only Executive Business Center in Asia is located in Tokyo. Merck has a maj or research site in Tsukuba, Japan, which isAnswer of The Port Authority of New York and New Je rsey

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4 easily accessible from Tokyo. In 1978, Johnson & J ohnson, a New Jersey-based manufacturer of a wide range of health care goods, established a Japanese subsidiary named

Johnson & Johnson K.K.

The New York / New Jersey region and Japan share im portant relationships in the areas of fashion and media. Woodbury Commons, located in Orange County, NY, is a major attraction for Japanese visiting the region. This premier outlet center employs a staff of Japanese interpreters, a foreign currency exchange and forei gn shipping services. Several of the specialty stores estimate that between 40-50% of their profit come from Japanese tourism. TV-Japan, a Japan Network Group started in the New York regio n in 1991 and has over 600,000

subscribers.

For these reasons, the Port Authority strongly supp orts the complimentary applications of

American Airlines and Continental Airlines to serve the New York/New Jersey region with daily flights to Tokyo Haneda.

Respectfully submitted,

THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY

__________________________________________ Bradley Rubinstein Manager, Industry and Regulatory Relations Aviation Department brubinst@panynj.gov

March 1, 2010Answer of The Port Authority of New York and New Je rsey

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5 CERTIFICATE OF SERVICE

I certify that I have this date served the foregoin g document on all parties submitting comments in this proceeding in accordance with the Department’s Rules of Practice.

__________________________________ Bradley Rubinstein March 1, 2010SERVICE LIST

challock@newarkrbp.org carloss@guamairport.net carl.nelson@aa.com rbkeiner@crowell.com gmurphy@crowell.com hershel.kamen@coair.com dan.weiss@coair.com sascha.vanderbellen@delta.com jeff.morgan@delta.com sametta.c.barnett@delta.com jhill@dowlohnes.com bruce.rabinovitz@wilmerhale.com jeffrey.manley@united.com julie.oettinger@united.com howard.kass@usairways.com benjamin.slocum@usairways.com dwight.moore@ustranscom.mil john.allen@faa.gov