**BEFORE THE DEPARTMENT OF TRANSPORTATION**  **WASHINGTON, D. C.**

--------------------------------------------- In the matter of : : DOT-OST-2010- 2010 U.S.-Haneda Combination Services : 0018 Allocation Proceeding :

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

**MOTION OF AMERICAN AIRLINES, INC. FOR DORMANCY WAIVER**

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 KENJI C. HASHIMOTO Associate General Counsel Vice President – Strategic American Airlines, Inc. Alliances 1101 17 th Street, N.W. American Airlines, Inc. Washington, D.C. 20036 P.O. Box 619616, MD 5635 (202) 496-5647 DFW Airport, Texas 75261 carl.nelson@aa.com

ROBERT A. WIRICK Director, Regulatory Affairs American Airlines, Inc. P.O. Box 619616, MD 5635 DFW Airport, Texas 75261 (817) 963-0394 robert.wirick@aa.com

June 30, 2011**BEFORE THE DEPARTMENT OF TRANSPORTATION**  **WASHINGTON, D. C.**

--------------------------------------------- In the matter of : : DOT-OST-2010- 2010 U.S.-Haneda Combination Services : 0018 Allocation Proceeding :

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

**MOTION OF AMERICAN AIRLINES, INC. FOR DORMANCY WAIVER**

American Airlines, Inc. respectfully requests temporary relief from the 90-day dormancy provision applicable to our New York (JFK)-Haneda slots so that American can manage JFK-Haneda

service in line with current market conditions. While American is resuming daily service in this market on July 1, 2011, U.S.-Tokyo demand remains far below normal levels due to the lingering effects of the Japanese earthquake, and forward bookings on our JFK-Haneda flights are weak. We request that the Department grant us the flexibility to adjust JFK-Haneda service levels by waiving the 90-day dormancy condition until June 1, 2012. By Notice of Action Taken in this docket on June 29, 2011, the Department granted Delta Air Lines, Inc. a waiver of the 90-day dormancy condition applicable to Detroit-Haneda slots until June 1, 2012. We are asking for equivalent relief.- 2 -

The reasons supporting Delta’s request apply with equal force to American’s request here. As the Department found in granting dormancy relief to Delta, “a catastrophic natural disaster with a comparably catastrophic aftermath occurred in Japan and seriously disrupted traffic.” In light of “these extraordinary circumstances” the Department determined to “grant Delta relief, until June 1, 2012, from the 90-day dormancy condition applicable to its Detroit-Haneda slot-pair” (p. 2). In our answer filed on June 14, 2011 to Delta’s motion, we asked for extra-bilateral relief from the requirement that flights bound for the United States from Haneda cannot depart prior to midnight. In its June 29, 2011 Notice of Action Taken granting Delta’s motion, the Department addressed our request by stating it will consider “bilateral issues separately from thisregulatory proceeding” (p. 2 n. 2). We appreciate the Department’s promise of future consideration, but it appears that there is now no immediate prospect for re-timing our Hanedadepartures to improve the viability of our JFK-Haneda operations. In these circumstances, we are seeking the same dormancy relief the Department has accorded to Delta.- 3 -

American’s JFK-Haneda service is heavily reliant on U.S. point of sale passengers, including premium business demand from major commercial centers in the Eastern United States. Under normal circumstances, JFK is a proven and successful gateway to Tokyo. However, current U.S.-Tokyo market conditions are not normal, and U.S. passenger demand (including essential business traffic) has fallen significantly below normal levels. American’s waiver request is consistent with the public interest and with Department precedent. See Order 2003-4-18, April 10, 2003, granting a blanket 11-month dormancy waiver to all U.S. carriers for all international routes following the decline in traffic as a result of the Iraq war. More recently, the Department has required a showing of specific facts and circumstances affecting particular routes before it will grant dormancy relief (see for example Order 2008-7-6, July 5, 2008). Here, the effects of the Japanese earthquake continue to have a severe impact on U.S.-Tokyo traffic, and there is a strong case

for a waiver. When carriers are confronted with unusual and distressed conditions in specific markets, they “should not beobligated to reach decisions . . . based on the ‘use-it-or-loseit’ constraints associated with a dormancy condition” (Order 2003-4-18, p. 2).- 4 -

American’s request for relief through June 1, 2012 is consistent with dormancy waiver periods that have been granted in similar cases, most recently to Delta with respect to Detroit-Haneda slots. Indeed, in DOT-OST-2007-28574, the Department has granted United three successive 12-month start-up waivers for San Francisco-Guangzhou due to distressed market conditions and high fuel costs. We expect to operate daily JFK-Haneda service for a portion of the current summer season, but may determine to temporarily reduce or suspend service until Tokyo business demand returns to normal levels. These are important commercial scheduling decisions that should be made on the basis of market conditions rather than regulatory constraints. The requested waiver will allow American the flexibility to adjust operations

as the market situation warrants. In recognition of the unusual circumstances that exist in Japan, the JCAB has issued a use-or-lose waiver for operating slots at both Tokyo airports, Narita and Haneda. This waiver was granted upon the strong recommendation and support of IATA (including U.S. carrier IATA members that participated in the Haneda route case).- 5 -

It is clear that U.S.-Tokyo demand will remain depressed for the remainder of the summer season and beyond, and that flexibility will be needed to judiciously manage capacity, especially over the off-peak winter months and shoulder season in the early spring. The requested waiver will enable American to conserve its resources and be in a position to operate daily JFK-Haneda flights for the 2012 peak travel season. For the foregoing reasons, and consistent with the Department’s dormancy waiver for Delta’s Detroit-Haneda slots, American respectfully requests a waiver for its JFK-Haneda slots until June 1, 2012. Such action is consistent with the public interest, as it will provide American with the flexibility to respond to the difficult and unexpected market conditions caused by the Japanese earthquake. Respectfully submitted,

_____________________________ CARL B. NELSON Associate General Counsel American Airlines, Inc. June 30, 2011**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 bill@mietuslaw.com sametta.c.barnett@delta.com mgoldman@sgbdc.com kquinn@pillsburywinthrop.com rsilverberg@sgbdc.com bkeiner@crowell.com dhainbach@ggh-airlaw.com esahr@eckertseamons.com mcmillin@woa.com bruce.rabinovitz@wilmerhale.com eskraft@jamhoff.com jeffrey.manley@united.com dpdean@jamhoff.com bob.kneisley@wnco.com dkirstein@yklaw.com robert.land@jetblue.com jyoung@yklaw.com msinick@ssd.com William.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@coair.com russell.bailey@alpa.org rpommer@atlasair.com

________________________________ CARL B. NELSON

June 30, 2011