BEFORETHEFEDERALAVIATIONADMINISTRATIONWASHINGTON,D.C.UNITEDAIRLINES,INC.,Complainant,v.THEPORTAUTHORITYOFNEWYORKANDNEWJERSEY,Respondent.DocketNo. FAA-16-14-13DECLARATIONOFGAVINMOLLOYINSUPPORTOFUNITEDAIRLINES,INC.'SANSWERTOTHEPORTAUTHORITYOFNEWYORKANDNEWJERSEY'SMOTIONFORSUMMARYJUDGMENTCommunicationswithrespecttothisdocumentshouldbeaddressedto:MarcL.WarrenKeithJ.HarrisonGeraldF.MurphyStevenJ.SeidenCROWELL&MORINGLLP1001PennsylvaniaAvenue,NWWashington,DC20004(202)624-2500mwarren@crowell.comRobertS.SpanAlanK.SteinbrecherSophyChenSTEINBRECHER&SPANLLP1155FStreet,NW,Suite1050Washington,DC20004(202)559-8680rspan@steinbrecherspan.comCounselforUnitedAirlines,Inc.

# DECLARATION

OF GAVIN MOLLOY I, Gavin Molloy,

declare

as follows: 1.

I am Managing

Director

Airport

Mfairs

for Complainant

United Airlines,

Inc. ("United").

I submit

this Declaration

in support

of United's

Answer To The

Port Authority

Of New

York

And

New Jersey's

Motion

For Summary Judgment.

The statements

in this declaration

are based

upon

my personal knowledge

and upon review

of information

contained

in business

records

of United.

2.

At EWR,

as

at JFK, airlines

are charged

a

" Flight

Fee

," which

is based on take-off

weight

rather

than landing

weight,

for

use

of the airfield facilities. 3.

Due

to fuel burn, landing

weight

is,

on average

, approximately

18% less than take-off

weight. Accordingly,

to compare

the EWR Flight

Fee with

the more traditional

landing

fee charged

at other airports,

it

is necessary

to multiply the EWR Flight

Fee

by

a factor

of 1.18

. 4

.

In 2014,

the EWR Flight

Fee, including

the charge

for

the A.iJ:Train, averaged

$9.98

per 1,000 pounds

of take-off

weight, equivalent

to

a landing

fee

of $11.77.

25.In2014,projectedaveragelandingfeesatmajorUSairportswere:AIRPORT2014PROJECTEDAVERAGELANDINGFEEEWR$11.77*LGA9.28CHICAGOO'HARE(ORD)7.42JFK6.71*DENVER(DEN)4.67BOSTONLOGAN(BOS)4.60LOSANGELES(LAX)4.54SANFRANCISCO(SFO)4.50WASHINGTONDULLES(lAD)3.86WASHINGTONNATIONAL(DCA)3.60PHILADELPHIA(PHL)3.52HOUSTON(IAH)2.99DALLAS/FORTWORTH(DFW)2.64MIAMI(MIA)1.76ATLANTA(ATL)0.82*EWRandJFKFeesconvertedtoequivalentlandingfeebymultiplyingby1.18.36.UndertheEWRleases,theEWRFlightFeeiscomprisedoffourcomponents:(1)aPublicAircraftFacilitiesChargeFactor(the"PAFChargeFactor");(2)anAirportServicesChargeFactor(the"ASF');(3)aPhase1ARoadwayChargeFactor;and(4)theEWRAirTrainfactor.ThesefourfactorsproduceanaggregateFlightFeeratethatisassessedforevery1000lbs.ofmaximumtake-offweight.7.EWR'soperatingrevenuesandprofitsfor2009through2013were:20092010201120122013Revenue$729,120,000748,973,000772,987,000780,081,000799,553,000Operating214,555,000218,009,000245,619,000241,672,000239,923,000ProfitOperating29%29%32%31%31%Margin8.Incontrast,whileJFKandLGAshowedoperatingprofitsaswell,thelevelsweremuchlower:20092010201120122013JFKOperating20%23%22%23%22%MarginLGAOperating15%15%15%13%8%Margin9.UnderitsnewAircraftRescueandFireFighting("ARFF")cadre,thePortAuthoritywillcontinuetocross-trainpoliceofficersforbothfirefightingandpoliceduties,payingmandatoryovertimeforthisadditionaltraining,regardlessof4

# the duty

to which

the officer

is assigned.

No other

major airport structures

its ARFF function

in this manner. 10.

The

Port Authority

did

not consult

with United

before deciding

on how to implement

the changes

to the ARFF

in 2013. 11.

The EWR Flight

Fee includes

a cost component

related

to police

and traffic functions

at the airports

other

than terminal

security

and emergency services,

such

as the ARFF. 12.

Since

2010,

this

cost item

has increased

by more

than

40%,

from approximately

$27 million

to approximately

$38 million

in 2014. Further,

due

to the mark-up contained

in the EWR Flight

Fee formula,

these

police

costs generated an additional

$3.8 million

in revenue

for

the Port Authority

at EWR

in 2013. 13.

At EWR, United

is charged

for terminal

police

on the basis

of

a cost

per "tour."

At Terminal

C, which

is occupied exclusively

by United,

there

are

five police tours

per

day.

At Terminal

A, where United operates

along

with other airlines, there

are three

police

tours

per day. 14.

Since

2010,

the average

annual

cost

per tour charged

by the Port Authority

at EWR

has increased

by more

than 120%.

This increase

is

a result

of the Port Authority's above-market

wages, benefits,

and overtime. 15. United

never agreed-

in writing

or otherwise

-to

the new ARFF charges.

To the contrary,

United continually

expressed

to the Port Authority concern

and opposition

to the ARFF charges.

516.Unitedneveragreed-inwritingorotherwise-totheunreasonablesecurityandadministrativecostsdescribedintheComplaint.Tothecontrary,UnitedcontinuallyexpressedtothePortAuthorityconcernandoppositiontotheARFFcharges.17.In2014,thePortAuthoritychargedhigherFlightFeesatEWRthanitdidatJFKandLGA.The2014EWRFlightFeewas75%higherthanthe2014JFKFlightFee.18.In2014,thedifferencebetweentheFlightFeeatEWRandtheFlightFeeatJFKmeantthatUnitedpaidmorethan$80millionmoreinflightfeesthanitwouldhavepaidifitflewitsEWRscheduleatJFK.(United'stotaltake-offweightatEWRin2014multipliedbythedifferencebetweentheEWRandJFKrates.)19.IftheFlightFeemethodologycurrentlyusedatJFKweretobeusedatEWR,theairlinesoperatingatEWRwouldpayatotalof$52millionlessannuallythantheycurrentlypay.20.ThePortAuthority'simpositionofahigherFlightFeeatEWRthanatJFKandLGAputsUnitedatasignificantcompetitivedisadvantage.Unitedhasapproximately135,000scheduleddeparturesfromEWRannually,incontrasttoits12,500scheduledflightsfromLGAandits5,500scheduledflightsfromJFK.21.Aircarriersope1·atingoutofJFKandLGA,ontheonehand,aremakingsimilaruseoftheNewYorkareaairportsystemasthoseaircarriersoperatingoutofEWR,ontheotherhand.6IdeclareunderpenaltyofperjuryunderthelawsoftheUnitedStatesofAmericathattheforegoingistrueandcorrect.Executedthis26thdayofMarch,2015at{...#'I,lt-L-1,....,0ts7