April 22, 2016

VIA EMAIL AND REGULATIONS.GOV Reginald C. Govan, Esq. Chief Counsel Federal Aviation Administration 800 Independence Avenue, SW Washington, D.C. 20591 Re: Opposition to JetBlue’s Petition for Reconsideration and Request for Backup Authority, Docket FAA-2015-3491 Dear Chief Counsel Govan: American Airlines, Inc. (“American”) requests that the FAA reject JetBlue’s petition for reconsideration served on April 12, 2016. American has made an effective case that the public interest is served by granting to American an exemption that will enable the resumption of nonstop service between Lansing’s Capital Region International Airport (LAN) and Washington Reagan National Airport (DCA), service that will expand the options available to passengers traveling to and from mid-Michigan. Indeed, American announced this week that LAN-DCA service under the exemption will commence July 5, 2016, with a schedule enabling mid-Michigan passengers to make day trips to Washington, DC, conduct a full day’s business, and still arrive home at a decent hour. JetBlue did not petition the FAA for an exemption to serve Lansing and none of the three filings it has made in this docket even reflect any interest in serving Lansing. Yet JetBlue now seeks to deny the Lansing community and passengers throughout mid-Michigan the benefit of nonstop service to the nation’s capital and connecting service to points beyond. JetBlue’s petition is impermissible under applicable FAA regulations, provides an insufficient basis for the FAA to reconsider its decision, and should be rejected. First, applicable FAA regulations do not permit JetBlue to petition the FAA for reconsideration of the grant of another airline’s exemption. 14 C.F.R. § 11.101 states that “you may petition FAA to reconsider your petition denial,” but does not provide for petitions to reconsider exemptions that are grantedto others. 1 The FAA’s intent to forbid third-party petitions for reconsideration is demonstrated by the

history of § 11.101. The former regulations contained a provision stating that “[i]f a petition for exemption is granted, a person other than the initial petitioner may file a petition for reconsideration with the Administrator,”2 but the FAA removed that provision in 2000. 3 JetBlue’s petition is therefore not allowed by the FAA’s rules and should not be considered. Second, even if JetBlue’s petition is permissible, it fails to comply with the FAA’s requirements. Under § 11.101, petitions for reconsideration will not be considered unless they show: (a) “a significant additional fact”; (b) that the FAA “made an important factual error”; or (c) that the FAA “did not correctly interpret a law, regulation, or precedent.”4 JetBlue’s petition shows none of these elements. While JetBluealleges that the FAA’s decision “is troubling” and requests that “the FAA address JetBlue’s previouslystated concerns,” these are not adequate bases to support a petition for reconsideration.5 In prior proceedings, the FAA has repeatedly stated that it is “unable to process” petitions for reconsideration that, like JetBlue’s, do not meet the requirements of § 11.101. 6 JetBlue’s petition should be treated no differently. Third, to the extent that the FAA is willing to consider JetBlue’s petition, the FAA should reject JetBlue’s contention that the FAA must address “the compatibility of this exemption grant with the American/US Airways merger settlement decree.”7 There is nothing for the FAA to address. The American/US Airways Final Order forbids the reacquisition of the “Divestiture Assets,” meaning the

1 14 C.F.R. § 11.101.
2 See 14 C.F.R. § 11.55(b) (1999 ed.).
3 65 Fed. Reg. 50850–69 (Aug. 21, 2000).
4 14 C.F.R. § 11.101. These requirements specifically apply to petitions for reconsideration of exemptions that are denied, but to the extent the FAA is willing to entertain third-party petitions for reconsideration of exemptions that are granted, the FAA should hold third parties to at least the same standards.

5 JetBlue Petition for Reconsideration, at 4.
6 See, e.g. , Letter from Dr. Frederick E. Tilton to Richard D. Blosser, Docket No. FAA-2008-1223 (Aug. 17, 2010); Letter from Ida M. Klepper to Jared Watkins, Docket No. FAA-2007-28641 (Apr. 21, 2008); Letter from Ida M. Klepper to Blythe C. Waller, Docket No. FAA-2003-16835 (Jan. 23, 2004).

7 JetBlue Petition for Reconsideration, at 4.specific DCA slots that American and US Airways were required to divest. 8 It also imposes a prior notice

regime on slots in use at the completion of the American/US Airways transaction. It does not apply to the acquisition of the slots in this proceeding, which will be newly issued. Fourth, although American takes no position on the merits of JetBlue’s request for backup authority, American questions whether the FAA can award backup authority to a carrier that did not file a petition for an exemption. The award of this authority risks subverting the notice and comment requirements in the FAA’s rules. 9 The FAA explained in its grant of American’s exemption that “[g]enerally . . . the FAA publishes petitions for exemption in the Federal Register and considers all
comments before arriving at a decision.” 10 But the award of JetBlue’s unpublished request denies notice to everyone but those that JetBlue chose to serve. Remarkably, JetBlue accuses the FAA of “ignor[ing] procedural due process requirements” just two paragraphs before asking the FAA to ignore the procedures governing the grant of exemptions. Should the FAA wish to take the unusual step of awarding backup authority, which typically is not done in domestic slot proceedings, JetBlue should file a petition for an exemption that complies with the FAA’s Rulemaking Procedures. Finally, American notes that if backup authority were to be awarded to any carrier in this exemption proceeding, JetBlue has offered no reason why the public interest, as opposed to JetBlue’s parochial interest, would be served by an award of backup authority to JetBlue. Note that JetBlue does not currently serve Lansing and in three filings in this docket expressed no interest in serving Lansing. Indeed, given JetBlue’s history of gross underutilization of slots at Long Beach Airport, 11 the public interest would be poorly served by the award of backup authority to JetBlue.

8 Final Judgment, United States v. US Airways Group, Inc. , Case No. 1:13-cv-01236, Dkt. No. 170, at 3, 22 (D.D.C. Apr. 25, 2014).

9 See 14 C.F.R. §§ 11.81–89.
10 Exemption Nos. 15867 and 15869, at 6 (Mar. 31, 2016) (emphasis in original). Those petitioning for an exemption are required to include “[a] summary [the FAA] can publish in the Federal Register.” 14 C.F.R. § 11.81(f).

11 See, e.g. , Cranky Flier, Southwest, JetBlue, and Delta Decide How to Use Their Long Beach Slots (Apr. 4, 2016), http://crankyflier.com/2016/04/04/southwest-jetblue-and-delta-decide-how-to-use-their-long-beach-slots/ (“There’s already a lot of noise about how JetBlue is squatting on slots. . . .”); Cranky Flier, Southwest Surprises, Joins JetBlue and Delta in Applying for Long Beach Slots (Feb. 11, 2016), http://crankyflier.com/JetBlue complains that the FAA’s decision is an “extraordinary departure from precedent and

practice,” 12 yet requests that the FAA: (a) consider a petition for reconsideration concerning the grant of another airline’s exemption, which is unauthorized by the FAA’s rules; (b) consider a petition for reconsideration that fails to comply with § 11.101; and (c) award backup authority in an exemption proceeding to a carrier that did not follow the FAA’s procedures for petitioning for an exemption. For these reasons, JetBlue’s petition for reconsideration should be rejected.

Respectfully submitted,

________________________ Howard Kass Vice President Regulatory Affairs

CC: Service list

2016/02/11/southwest-surprises-joins-jetblue-and-delta-in-applying-for-long-beach-slots/ (“JetBlue Tries to Prevent Competition”).

12 JetBlue Petition for Reconsideration, at 2.

### CERTIFICATE OF SERVICE

I certify that on April 22, 2016, I caused to be served a copy of the foregoing Letter upon the addressees listed below: reggie.govan@faa.gov (Federal Aviation Administration) kathryn.thomson@dot.gov (Department of Transportation) susan.mcdermott@dot.gov (Department of Transportation) bob.goldner@dot.gov (Department of Transportation) bill.baer@usdoj.gov (Department of Justice) kathleen.oneill@usdoj.gov (Department of Justice) robert.land@jetblue.com (JetBlue) dderco@eckertseamans.com (Counsel for JetBlue) esahr@eckertseamans.com (Counsel for JetBlue) rdavidson@eckertseamans.com (Counsel for JetBlue) robert.letteney@delta.com (Delta) chris.walker@delta.com (Delta) leslie.abbott@wnco.com (Southwest) dheffernan@cozen.com (Counsel for Alaska) steve.morrissey@united.com (United)

________________________ William B. Sohn