**BEFORE THE**

**DEPARTMENT OF TRANSPORTATION**

**WASHINGTON, D. C.**

--------------------------------------------- Motion of : : DELTA AIR LINES, INC. : DOT-OST-2010- : 0285 for start-up extension and route flex- : ibility (7 U.S.-China frequencies) :

---------------------------------------------

**ANSWER OF AMERICAN AIRLINES, INC.**

Communications with respect to this document should be sent to:

VIRASB VAHIDI WILLIAM K. RIS, JR. Senior Vice President - Senior Vice President - Marketing and Planning Government Affairs and Chief Commercial Officer American Airlines, Inc. American Airlines, Inc. 1101 17 th Street, N.W. P.O. Box 619616, MD 5634 Washington, D.C. 20036 DFW Airport, Texas 75161 CARL B. NELSON ROBERT A. WIRICK Associate General Counsel Director, Regulatory Affairs American Airlines, Inc. American Airlines, Inc. 1101 17 th Street, N.W. P.O. Box 619616, MD 5635 Washington, D.C. 20036 DFW Airport, Texas 75261 (202) 496-5647 (817) 963-0394 carl.nelson@aa.com robert.wirick@aa.com

May 9, 2012**BEFORE THE**

**DEPARTMENT OF TRANSPORTATION**

**WASHINGTON, D. C.**

--------------------------------------------- Motion of : : DELTA AIR LINES, INC. : DOT-OST-2010- : 0285 for start-up extension and route flex- : ibility (7 U.S.-China frequencies) :

---------------------------------------------

**ANSWER OF AMERICAN AIRLINES, INC.**

American Airlines, Inc. hereby answers the motion filed on May 3, 2012 by Delta Air Lines, Inc., seeking a one-year extension (until June 1, 2013) to start operations between Tokyo and Guangzhou using seven frequencies allocated by the Department for this city-pair. Delta also requests “the flexibility to use these seven frequencies on any U.S.-China route where Delta holds underlying route authority” (p. 1).American does not object to Delta’s request for a startup extension. However, we do object to Delta’s “flexibility” request unless the Department simultaneously authorizes American to use its China frequencies on any U.S.-China route where American holds route authority.- 2 -

In prior China proceedings, American has asked theDepartment to afford all carriers serving China such flexibility. In Order 2000-1-21, January 26, 2000, instituting U.S.-China Air Services (2001), the Department said that the authority to be awarded to a new entrant would be limited to its route case proposal, even though the two incumbents, Northwest and United, enjoy flexibility to change their Chinaservice pattern at will. American petitioned for reconsideration on this issue on February 2, 2000, urging that it would be unfair to place limits on the newly designated carrier but not

on the incumbents. By Order 2000-11-25, November 26, 2000, the Department declined to rule on American’s petition, stating that in light of the award to UPS, “we see no need to address the issue raised by American” (p. 19 n. 45). In 2004, we renewed our request. In objecting to the Notice inviting applications in New Route Opportunities (U.S.- China) 2004 Combination Frequencies (DOT-OST-2004-18469), we urged that: “The Department should also immediately address the issue of the scope of authority to be awarded under the [U.S.-China] protocol. All carriers (incumbents Northwest/United and new entrants alike) should have the flexibility to use their authority to serve any U.S.-China markets as com- petitive conditions warrant” (p. 5).- 3 -

In Order 2004-7-23, July 23, 2004, the Department again

declined to reach the issue: “We do not see a need to address American’s broad concern on flexibility to change city pairs at this time” (p. 3 n. 6).Having previously denied American’s calls for flexibility in the use of U.S.-China frequencies, the Department should not grant such relief to Delta without at the same timealso releasing American’s frequencies from city-pair restrictions. In 2004, the Department reached that result regarding Brazil frequencies, and should do the same here. See Order 2004-6-25, June 28, 2004, p. 5 (“Our allocation scheme for U.S. carrier use of Brazil frequencies is not uniform, with some carriers enjoying greater flexibility than others . . . . We have decided to grant [Delta’s] request [to remove city-pair restrictions] and to afford the same flexibility to all four designated combination carriers for U.S.-Brazil services”). Respectfully submitted,

___________________________ CARL B. NELSON Associate General Counsel American Airlines, Inc.

May 9, 2012**CERTIFICATE OF SERVICE**

I hereby certify that I have this day served the foregoing document by email on the following persons: sascha.vanderbellen@delta.com jhill@dlalaw.com scott.mcclain@delta.com steve.morrissey@united.com sametta.c.barnett@delta.com mgoldman@sgbdc.com kquinn@pillsburywinthrop.com rsilverberg@sgbdc.com rbkeiner@crowell.com dhainbach@ggh-airlaw.com esahr@eckertseamons.com rpommer@atlasair.com russell.bailey@alpa.org eskraft@jamhoff.com jonathan.linde@united.com dpdean@jamhoff.com bob.kneisley@wnco.com dkirstein@yklaw.com robert.land@jetblue.com jyoung@yklaw.com msinick@ssd.com willim.stallings@usdoj.gov cdonley@ssd.com dwight.moore@ustranscom.mil gbleopard@fedex.com john.allen@faa.gov david.heffernan@wilmerhale.com urskr@state.gov kevin.montgomery@polaraircargo.com recohn@hoganlovells.com jrichardson@johnlrichardson.com cjsimpson@zsrlaw.com lhalloway@crowell.com pmurphy@lopmurphy.com efaberman@wileyrein.com lachter@starpower.net mroller@rollerbauer.com anita.mosner@hklaw.com howard.kass@usairways.com jennifer.nowak@hklaw.com benjamin.slocum@usairways.com gmurphy@crowell.com dan.weiss@united.com nssparks@fedex.com cefelts@fedex.com

________________________________ CARL B. NELSON

May 9, 2012