BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

Slot Exemption Proceeding 

at Ronald Reagan Washington National Airport

pursuant to 49 U.S.C. § 41718(b) 

Docket DOT-OST-2000-7182 

MOTION FOR LEAVE TO FILE 

AND REPLY OF THE CITY OF HOUSTON 

AND THE GREATER HOUSTON PARTNERSHIP

Communications with respect to this document should be sent to: 

Mario C. Diaz 

 Director 

Ian Wadsworth 

 Chief Commercial Officer 

Department of Aviation 

CITY OF HOUSTON 

16930 John F. Kennedy Blvd. 

Houston, TX 77032 

(281) 233-3000 

(281) 233-1859 (fax) 

Robert Harvey 

 President and Chief Executive Officer 

GREATER HOUSTON PARTNERSHIP 

1200 Smith Street, Suite 700 

Houston, TX 77002 

(713) 844-3600 

(713) 844-0200 (fax) 

Rachel B. Trinder 

Jol A. Silversmith 

ZUCKERT, SCOUTT & 

 RASENBERGER, L.L.P. 

888 Seventeenth Street, N.W. 

Washington, D.C. 20006-3309 

(202) 973-7927 

(202) 342-0683 (fax) 

rbtrinder@zsrlaw.com

jasilversmith@zsrlaw.com

For the City of Houston 

 and the Greater Houston Partnership 

Dated: December 31, 2012 
BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

Slot Exemption Proceeding 

at Ronald Reagan Washington National Airport

pursuant to 49 U.S.C. § 41718(b) 

Docket DOT-OST-2000-7182 

MOTION FOR LEAVE TO FILE AND 

REPLY OF THE CITY OF HOUSTON 

AND THE GREATER HOUSTON PARTNERSHIP

The City of Houston and the Greater Houston Partnership (collectively, “Houston” 

or the “Houston Parties”) respectfully seek leave to file an otherwise unauthorized 

document pursuant to 14 C.F.R. § 302.6(b), namely this reply to the responsive 

pleadings filed in this docket on December 19, 2012 by JetBlue and US Airways.1

 This 

reply has the limited purpose of alerting the Department to certain misstatements of 

statutory authority, Departmental precedent, and other authorities cited in those 

pleadings, and therefore is supported by good cause. 

In reply to the pleadings of JetBlue and US Airways, and in support of 

Southwest’s application to provide service between Ronald Reagan Washington 

National Airport (“DCA”) and Houston’s medium-hub gateway, William P. Hobby Airport 

(“HOU” or “Hobby”), the Houston Parties state as follows: 

 

1

 Common names are used for carriers. 
Motion for Leave to File and Reply of the City 

of Houston and the Greater Houston Partnership 

Page 2

I. JETBLUE’S ASSERTION THAT SOUTHWEST’S HOBBY APPLICATION 

“CONTRAVENES CONGRESSIONAL INTENT AND EXCEEDS THE 

DEPARTMENT’S DISCRETION” IS WHOLLY INCORRECT AND MISSTATES 

THE CONGRESSIONAL RECORD.

JetBlue has asserted that an award to Southwest would be inconsistent with the 

underlying statute, even though JetBlue does not dispute that Hobby is a medium-hub 

airport pursuant to 49 U.S.C. § 41714(h)(9). See JetBlue Response, at 6-7. This 

assertion is wholly unfounded and incorrect. Indeed, this issue already has been 

addressed by the Department. In the first AIR-21 slot exemption proceeding, the 

Department rejected the assertion that medium-hub airports serving large markets were 

ineligible under the statute, and confirmed that MDW and DAL were eligible destinations 

for slot exemptions designated for medium-hub airports, even though those airports 

serve the greater Chicago and Dallas/Fort Worth markets, respectively. See Order 

2000-7-2, at 18.2 In this proceeding, the fact that Hobby serves the greater Houston 

market likewise is in no way disqualifying – and indeed, as discussed in Houston’s 

previously-filed comments (see, e.g., pp. 8-9), the strength of the greater Houston 

market is one of the key pillars strongly supporting the grant of Southwest’s application 

in this proceeding. For the many reasons detailed in Southwest’s and Houston’s prior 

submissions, and based on Department precedent, the fact that Hobby serves a large 

and growing market is a positive decisional factor and should be given great weight. 

 

2

 Similarly, the Department has awarded DCA exemptions for services to FLL, which for the purposes of 

slot proceedings is considered to be a medium hub – see, e.g., Order 2008-2-28, at 9 & n.11 – and which 

both the Department and JetBlue in other proceedings have acknowledged serves the greater Miami 

market. See Order 2009-11-3, at 2; JetBlue Reply, at 11-12 (December 18, 2007) (docket DOT-OST2007-0006). The Department also previously has established that larger markets should be favored in 

comparison with Jacksonville to “best achieve the goal of promoting air transportation” – with specific 

reference to its decision to award slots to ATA Airlines for MDW-DCA flights. See Order 2000-7-2, at 21. 
Motion for Leave to File and Reply of the City 

of Houston and the Greater Houston Partnership 

Page 3

Moreover, quotations from the Congressional Record provided by JetBlue (see

JetBlue Response, at 18) have been improperly shorn of their context and utilized in a 

manner that is misleading. JetBlue cites a statement from Senator Charles Grassley in 

support of its argument that Houston’s market size alone should disqualify Southwest’s 

application. But a review of the Congressional Record shows that the Senator’s 

statement in fact concerned the phased elimination of slots at ORD and LGA and 

not slot exemptions at DCA. See 146 Cong. Rec. S1252 (March 8, 2000), attached 

as Exhibit HOU-R-101. 

Similarly, while Representative Jerry Costello noted that AIR-21 would aid small 

communities, he also emphasized that the legislation would (i) “increase competition” 

(as would Southwest’s proposed new service here), (ii) help “underserved communities 

receive service” (as demonstrated by Southwest, Houston is underserved relative to the 

size of its market – see Southwest Answer at 5-6 and Exhibit WN-R-12), and (iii) ensure 

“more equitable competition in an industry where individual air carriers have market 

dominance over many communities” (as is the case here with United’s dominance in the 

Houston-DCA market). See 146 Cong. Rec. H1026 (March 15, 2000), attached as 

Exhibit HOU-R-102. 

Moreover, neither Congressman expressed, as suggested by JetBlue (see

JetBlue Response, at 18), “concern[] that larger cities would enjoy all of the benefits” of 

DCA slot exemptions. 

That JetBlue would make such assertions is troubling, and they must be rejected 

outright as wholly incorrect. As the record amply demonstrates, an award of the 
Motion for Leave to File and Reply of the City 

of Houston and the Greater Houston Partnership 

Page 4

available slot exemptions to Southwest for HOU-DCA services would indeed be 

consistent with Congressional directives. 

II. IN ALLEGING THAT SOUTHWEST’S PROPOSED SERVICE TO HOU WOULD 

NOT SATISFY THE “MONOPOLY ROUTE” CRITERION OF 49 U.S.C. § 

41718(B)(4), JETBLUE IGNORES CRITICAL DEPARTMENT PRECEDENT.

JetBlue also has asserted that an award to Southwest would not “genuine[ly]” 

satisfy the “competitive nonstop air” criterion, because Southwest would serve HOU 

while the existing Houston-DCA flights serve George Bush Intercontinental Airport 

(“IAH”). See JetBlue Response, at 21. Again, this assertion is incorrect and 

contravenes Department precedent. In the first AIR-21 slot exemption proceeding, the 

Department awarded four slot exemptions to ATA Airlines for MDW-DCA services, 

observing that ATA would compete with the ORD-DCA services operated by the hubdominant carriers American and United. See Order 2000-7-2, at 19. That principle and 

laudable goal is equally applicable here, where new low-fare services by Southwest at 

Hobby would compete with services operated by hub-dominant United at Houston’s 

other commercial airport, IAH, both fulfilling the statutory criterion and providing other 

competitive and public benefits, as demonstrated by Southwest and in Houston’s 

previously-filed comments (see, e.g., pp. 4-5).3

 

3

 Moreover, elsewhere JetBlue contradicts its own argument by taking the position that HOU and IAH 

should be considered a single market. See JetBlue Response, at 6. As for JetBlue’s argument that 

Southwest’s Hobby proposal is improperly directed at competition with United rather than DCA-slot 

dominant US Airways, see id. at 16, its assertions in fact only emphasize the opposite of what it intended 

– namely that Southwest’s proposal would provide competition to both US Airways and United, by 

introducing new, low-fare service in competition with United in Houston, and helping to build the critical 

mass of slots needed by Southwest to compete with US Airways at DCA. See also Exhibit HOU-124 

(noting that the only ex-DCA monopoly markets larger than Houston also are markets served by carriers 

other than US Airways). 
Motion for Leave to File and Reply of the City 

of Houston and the Greater Houston Partnership 

Page 5

III. CONTRARY TO US AIRWAYS’ ASSERTION, THE SLOTS AT ISSUE HERE 

DO NOT COME FROM THE POOL RESERVED FOR SMALL HUBS AND 

NONHUBS; THE DEPARTMENT’S OWN NOTICE CONFIRMS THAT MEDIUM 

HUBS, SUCH AS HOBBY, ARE ELIGIBLE. 

Remarkably, US Airways has asserted that the new entrant/limited incumbent 

criterion does not apply to “small community air service” and thus is inapplicable to the 

extent that US Airways has proposed to serve a small community.4 See US Airways 

Answer, at 5. That is incorrect. While it is true that the criterion does not apply to the 

allocation of the six slot exemptions reserved for service to small hubs and nonhub 

airports, see 49 U.S.C. § 41718(c)(3)(A), those slot exemptions are not at issue in 

this proceeding. As clearly established in the Department’s notice dated November 

13, 2012, the available slot exemptions are among those that also can be used for 

service to medium-hub airports, such as HOU.5 See also Order 2008-5-9, at 6; Order 

2010-12-16, at 3 n.6. 

IV. THE CRITERION OF 49 U.S.C. § 41718(B)(3) IS NOT AUTOMATICALLY 

FULFILLED BY THE SMALLEST COMMUNITY AT ISSUE IN A DCA SLOT 

EXEMPTION PROCEEDING, AS CLAIMED BY US AIRWAYS.

US Airways has asserted that it fulfills this criterion in this proceeding simply 

because Oklahoma City is the smallest community to which service has been proposed. 

See US Airways Answer, at 7. That also is incorrect. In prior within-perimeter slot 

allocation proceedings, the Department has established that an applicant seeking 

 

4

 As discussed infra, US Airways has not actually established in this proceeding that it fulfills the criterion 

of 49 U.S.C. § 41718(b)(3). 

5 “Applicants must propose to provide service to DCA from airports that were designated as medium hub, 

small hub, or nonhub airports” as statutorily defined. See Notice, at 1 (November 13, 2012) (emphasis 

added). Unquestionably, Hobby is a medium hub as statutorily defined. 
Motion for Leave to File and Reply of the City 

of Houston and the Greater Houston Partnership 

Page 6

priority on the basis being a small community must affirmatively show that a proposed 

destination qualifies as small for statutory purposes. See, e.g., Order 2010-12-16, at 10 

(noting that the statute does not define a small community, and that Kansas City had 

not been demonstrated by applicants to qualify); Order 2004-12-6, at 7 (finding that a 

community with “a population well over 1 million” did not qualify). In this proceeding, US 

Airways has offered no such evidence; only bare assertion.6 Thus, US Airways has not 

fulfilled the statutory “small communities” criterion – and as summarized in Houston’s 

previously-filed comments, under such circumstances the Department has indicated 

that service proposals to larger markets (such as Houston) in fact should be preferred, 

because they would generate the greatest public benefits (see, e.g., pp. 7-8, citing 

Order 2000-7-2, at 19 and 21, and Order 2008-2-28, at 9). 

WHEREFORE, the Houston Parties request that the Department grant their 

motion, incorporate the corrections stated above into its deliberations, and award the 

two slot exemptions at issue in this proceeding to Southwest for DCA-Hobby service. 

 

6

 Additionally, the Department previously found that US Airways did “not make a persuasive case” that a 

community with a population less than that of Oklahoma City (compared against the Census data cited in 

this proceeding by US Airways) qualified as statutorily small. See Order 2008-11-19, at 6. 
Motion for Leave to File and Reply of the City 

of Houston and the Greater Houston Partnership 

Page 7

Respectfully submitted, 

Rachel B. Trinder 

Jol A. Silversmith 

ZUCKERT, SCOUTT & 

 RASENBERGER, L.L.P. 

888 Seventeenth Street, N.W. 

Washington, D.C. 20006-3309 

(202) 973-7927 

(202) 342-0683 (fax) 

rbtrinder@zsrlaw.com

jasilversmith@zsrlaw.com

For the City of Houston 

 and the Greater Houston Partnership 

Dated: December 31, 2012 
Exhibit HOU-R-101 

Statement of Senator Grassley – 146 Cong. Rec. S1252 (March 8, 2000) 

81252 CONGRESSIONAL RECORD-SENATE March 8, 2000 

There being no objection, the material was ordered to be printed in the 

RECORD, as follows: 

DEMOCRATIC STAFF 

Kevin Kayes, Moses Boyd, Sam Whitehorn, 

Ellen Doneski, Julia Krauss, Jonathan 

Oakman, and Carl Bentzel. 

REPUBLICAN STAFF 

Mike Reynolds, Ann Choiniere, Scott 

Verstandig, Jim Sartucci, Keith Hennesy, 

Brett Hale. 

BUDGET STAFF 

Bill Hoagland, Cheryl Tucker, and Mitch 

Warren. 

APPROPRIATIONS STAFF 

Wally Burnett and Peter Rogoff. 

HOUSE REPUBLICAN STAFF 

Jack Shenendorf, Roger Norber, Sharon 

Barkaloo, Chris Bertram, Dave Schaeffer, 

Adam Tsao, Rob Chamberlin and David 

Ball off. 

HOUSE DEMOCRATIC STAFF 

Dave Hymsfeld, Ward McCarriger, Stacy 

Soumbeniotis, Tricia Loveland, Paul Feldman, who left last November, and Collen 

Carr. 

Mr. ROCKEFELLER. yield the 

floor, Mr. President, and reserve the remainder of my time. 

The PRESIDING OFFICER. The Sena tor from Washington. 

Mr. GORTON. Mr. President, how 

much time do the proponents have remaining? 

The PRESIDING OFFICER. Twelve 

and a half minutes. 

Mr. GORTON. Mr. President, I yield 5 

of those minutes to the distinguished 

Senator from Iowa. 

The PRESIDING OFFICER (Mr. L. 

CHAFEE). The Senator from Iowa is recognized. 

Mr. GRASSLEY. Mr. President, the 

conference report before us has been a 

long time in the making. It is a comprehensive bill that successfully addresses many important aviation 

issues. Not the least of these is the 

eventual elimination of the so-called 

slot rules at three of our nation's airports, O'Hare, Kennedy and LaGuardia. 

It also adds additional slots at Reagan 

Washington National Airport. I support 

these measures. 

I congratulate Senator McCAIN, the 

Senate Commerce Committee Chairman, Senator GORTON, the Aviation 

Subcommittee Chairman, Senator HoLLINGS, the full committee ranking 

member, and Senator ROCKEFELLER, 

the subcommittee ranking member, for 

their efforts to bring about good public 

policy. This has not been an easy conference, and all of you have put forth a 

tremendous effort to see that it was 

concluded successfully. I wish to also 

thank their staffs. 

I also express my thanks and admiration to my good friend, Senator 

DOMENICI, our Budget Committee 

chairman. Of all the issues before the 

conference, the resolution of the budget issues was the most trying and complex. Senator DOMENICI and his staff 

worked tirelessly to seek a fair and 

adequate solution to this problem. 

I express my admiration for my 

friend and colleague, Senator STEVENS, 

the chairman of the Senate Appropriations Committee. Senator STEVENS has 

played a key role in reaching an agreement on spending. 

The phase-out of the slot rule at 

O'Hare and LaGuardia will open a new 

era in aviation. Because it is a phaseout and not an immediate termination, 

that era should also give smaller airports a better chance for a piece of the 

economic pie at the national and international levels. 

While e-commerce may be all the 

rage currently, people still need to 

travel for business purposes. Direct 

human contact is still the premium 

way to do business, and air travel is 

the fastest wav to accomolish that 

over long dist~nces and tight time 

frames. 

This compromise follows the direction which my Iowa colleague, Senator 

HARKIN, and I set forth early in the debate on the slot rule. We looked at the 

needs of the airports in Iowa, and came 

to the conclusion together that it was 

time for a change if our State was to 

maintain its economic momentum in 

the national and international marketplace. Iowa does not have a major hub 

airport that guarantees low-cost or frequent flights. Like most States, we 

have smaller airports that are greatly 

affected by the traffic into and out of 

the major hub airports. In this case 

those airports are 0 'Hare and 

LaGuardia. 

Our solution was to phase out the 

slot rule. The first step was to immediately give increased access to the hub 

airports by turboprop aircraft and regional jets. These are the aircraft that 

primarily serve our smaller airports. 

Giving them time before the slot rule 

is lifted for large airport-to-large airport competition should give the 

smaller airports time to establish the 

economic and market base needed to 

justify service. Otherwise, we would 

only see increased flights between 

major cities, to the exclusion of smaller airports. 

We received the support of a large 

number of Senators who were also concerned about the future of their small 

hub and nonhub airports. Together, all 

of us have been able to accomplish 

what was unthinkable just several 

years ago, the eventual elimination of 

t.hP slot. rulP ?Jt. t.hosP two ?Jirport.s. T 

deeply appreciate their faith and support to accomplish this. 

I also thank President Clinton for 

having the foresight and courage to 

recommend the elimination of the slot 

rule at these airports. He gave a legitimacy and momentum to the debate 

that would not have existed otherwise. 

The States attorneys general, lead by 

Iowa Attorney General Tom Miller, 

also played a significant part and 

should be thanked. 

Not everyone is entirely happy with 

the compromise solution in this conference report. I look upon that as ratification that it must be a pretty good 

compromise. I truly feel that the airlines were treated as fairly and equally 

as possible. 

Our Nation's airports will be receiving additional funds for their capital 

needs under this legislation. I know 

that these funds are much needed and 

will be put to good use. Iowa's airports 

have rehabilitation and expansion 

plans that will be enhanced by these 

additional funds. This includes increased disbursements from the Airports and Airways Trust Fund and the 

increase in the passenger facility 

charge, PFC. It is important to note 

that the PFC will not increase at an 

airport until local authorities have approved an increase. It is entirely within their realm to grant or deny this increase at the local level. 

However, I must again warn the Federal Aviation Administration that 

more money will not cure all of the 

problems facing the FAA and the aviation industry. Fundamental reform of 

the way the FAA does business and on 

a cultural level is necessary if we are 

to truly make the advances which are 

needed. 

As a budget conferee, I believe the 

budget compromise is the best we can 

do at this time. I shall work with 

Chairman DOMENICI to secure the necessary funds through the budget process. 

The biggest disappoint to me is the 

inclusion of a civil fine against airline 

employee whistle-blowers. While I am 

very pleased that whistle-blower protection has been extended to the aviation industry, I feel that it is flawed 

due to the civil penalty. Such a penalty 

does not exist in other whistle-blower 

statutes. I will work to correct this situation. 

Whistle-blower protection adds another, much needed, layer of protection 

for the traveling public using our Nation's air transportation system. I am 

pleased to have worked with the Association of Flight Attendants AFL-CIO 

on this important, ground breaking 

legislation. They have worked tirelessly on this provision, and I know 

they will continue to work with me to 

correct this flaw. I call upon the airlines to do the same and seek the help 

of the public, also. 

Mr. President, I urge my colleagues 

to vote for this conference report. 

The PRESIDING OFFICER. Who 

seeks recognition? 

The Senator from New Jersey. 

Mr. LAUTENBERG. Mr. President, 

thank my colleagues who have worked 

so hard to get this bill to this point. It 

is not fun to oppose something that 

was reported out of the conference 

committee with such strong support. 

But I have a different responsibility 

given the fact that I serve both as the 

ranking member of the Budget Committee and the Transportation Appropriations Subcommittee. In my view, 

this bill represents a missed opportunity to fully address the financing 

needs of our Nation's aviation system. 

To the degree the bill actually guarantees any real funding increases, it 

does so in a manner that I consider 

grossly unbalanced. Mr. President, if 
Exhibit HOU-R-102 

Statement of Representative Costello – 146 Cong. Rec. H1026 (March 15, 2000) 

H1026 CONGRESSIONAL RECORD- HOUSE March 15, 2000 

options to reach Washington and Ronald 

Reagan Washington National Airport via connections at Western hubs like Salt Lake City. 

This provision is about using this restricted exemption process to spread improved access 

throughout the West-not to limit the benefits 

to a few large cities which already have a variety of options. 

Mr. BORSKI. Mr. Speaker, I rise today to 

offer my support for H.R. 1000, the Aviation 

Investment and Reform Act for the 21st Century First, I would like to congratulate Chairman DUNCAN and Ranking Member LIPINSKI 

for their tireless efforts on behalf of this bill. 

I also want to thank Chairman SHUSTER and 

Ranking Member OBERSTAR for their leadership on the Transportation and Infrastructure 

Committee. The bipartisan way in which these 

two gentlemen conduct the committee is an 

example for all. Under their direction, this Congress has made the maintenance of and investment in our nation's infrastructure a top 

priority. 

AIR-21 is good news for the American people and the country. This legislation maintains 

the integrity of the trust funds and reinforces 

the idea that the money we collect from air 

passengers should be spent on aviation to reduce the backlog of infrastructure needs at our 

nation's airports. 

I am pleased that the impasse over this vital 

piece of legislation has ended and that the 

FAA will finally receive the funding they so 

desperately need. Additionally, AI R-21 is extremely important to Philadelphia, as well as to 

all airports because it provides the funding 

necessary to make improvements, enhance 

capacity, and to increase safety. 

AIR-21 vvill inciease spending on aiiport improvements, air traffic control, and other aviation needs. This "record level of investment," 

as Secretary Slater called the $40 billion that 

will go to the FAA, will make air travel safer 

and more efficient for everyone. 

Mr. Speaker, we have all heard about how 

crowded our skies are. Domestic air travel had 

655 million passengers over the past five 

years. This number is expected to reach over 

one billion in the next ten years. Air travel is 

the mode of choice for travelers today. The 

demand is unbelievable and is evidenced at 

Philadelphia International Airport, which is one 

of the busiest airports in the eastern region. 

The passage of this legislation will go a long 

way towards making Philadelphia International 

a better airport. Under this Conference Agreement Philadelphia Airport, a major hub, will receive almost $7 million. This money will be 

used for new projects that will improve the efficiency of Phiiadeiphia"s airport, since it is congested throughout the day and not just at 

peak times. Last year, the airport had over 23 

million passengers and the funds that Philadelphia International Airport will receive will 

allow the airport to provide increased capacity 

for these travelers and to promote safety as 

well. 

I would also like to note that the increase in 

the Passenger Facility Charge that the conferees reached agreement on is also important 

to Philadelphia's airport. This modest raise in 

the cap on the PFC will also allow individual 

airports, like Philadelphia, the flexibility to proceed with improvement projects not eligible for 

funding through the Airport Improvement Program. 

The passage of this bill is essential because 

it increases funding for air traffic control modernization by almost 50 percent and funding 

for airport improvements will increase by more 

than 50 percent. This level of investment is 

vital to all airports not just Philadelphia's. 

Mr. Speaker, I offer my support for AIR-21 

and I urge my colleagues to vote for this important legislation. H.R. 1000 is good for 

transportation and good for the nation. 

Mr. BARCIA. Mr. Speaker, I rise in support 

of Title IX of the Conference Report and will 

limit my remarks to Title IX of the Agreement, 

which provides a three-year authorization for 

the research and development activities of the 

Federal Aviation Administration. 

I am particularly pleased with the authorization levels that are provided for aviation research and development, both in Title IX and 

in the Airway Facilities portion of the bill. The 

budget growth provided by Title IX is focused 

on more long-term research and will help reverse recent declines in this essential component of the agency's R&D investment. 

Sufficient funds must be provided to enable 

FAA's research and development programs to 

develop the new technologies that will help increase the capacity and efficiency of operation 

of the airspace system, while ensuring its 

safety and security. 

I would like to highlight a provision in Title 

IX that requires FAA to provide Congress with 

a complete description of its R&D programs. 

Some confusion exists about the full scope of 

FAA's R&D activities, since they appear in different parts of the agency's annual budget 

submission. 

The Inspector General (IG) of the Department of Transportation, in recent testimony 

before the Science Committee, recommended 

that FAA identify in its budget basic research, 

applied research, and development activities, 

including prototype development. The IG 

pointed out that such reporting will give the 

agency a better idea of how it spends development funds and will provide Congress with 

a more comprehensive picture of FAA's civil 

aviation R&D investments. 

The reporting provision included in Title IX 

requires FAA to provide Congress with a comprehensive description of its R&D programs by 

identifying the individual projects that appear 

in each category of the agency's budget. This 

information must be provided annually by FAA 

in the National Aviation Research Plan. 

Mr. Speaker, in closing, I want to thank our 

Chairman SHUSTER and Ranking Member 

OBERSTAR on the Transportation Committee 

for working with us on Title IX. And as always 

it has been a pleasure working with Chairwoman MORELLA on FAA's research and development provisions. This Conference Agreement wiii ensure that FAA has the R&D resources needed to meet its challenging goals 

for the modernization of the national airspace 

system and for improving the safety of air travel. 

Mr. COSTELLO. Mr. Speaker, I rise today in 

strong support of the AIR-21 Conference Report which reauthorizes funding for the Federal 

Aviation Administration. fts a conferee on this 

bill, I am pleased that we were able to come 

together in a bipartisan fashion to provide the 

funding the FAA needs to provide America 

with a first class aviation infrastructure for the 

21st century. 

First, I want to thank Chairman SHUSTER 

and Ranking Member OBERSTAR for their leadership and persistence in making certain that 

all aviation tax revenue and interest be spent 

each year on aviation programs. 

The Conference Agreement authorizes $40 

billion in funding for the next three fiscal 

years-a 26 percent increase in FY01 alone. 

This funding provides increases for all aspects 

of the FAA, to modernize its systems and deal 

more effectively with our expanding air transportation industry. 

This legislation serves to increase competition and aid small communities. The provisions to lift all slot restrictions at O'Hare, La 

Guardia and Kennedy, and increase the number of slots at National Airport can only help 

new airlines provide service and underserved 

communities receive service. I worked hard to 

ensure that rural communities in the Midwest 

stood to benefit from these new provisions. By 

improving capacity at large and small airports, 

the bill ensures more equitable competition in 

an industry where individual air carriers have 

market dominance over many communities. 

And by promoting access, the bill increases 

service which currently have little or no markets at all. 

The bill also provides funding for small and 

general aviation airports through an annual 

entitlement. This provision will guarantee that 

small and general aviation airports will receive 

an annual federal investment to continue to 

implement safety improvements and projects 

to increase efficiency. 

Finally, AIR-21 should provide money to 

allow the FAA to make administrative changes 

without harming ongoing effective programs 

like the Air Traffic Control Contract Program. I 

recently urged the FAA Administrator to reject 

proposals by some bureaucrats to cut this program which is so vital to many small communities, and I hope now with passage of AIR21. she will do so. 

Mr. Speaker, again I want to thank Chairman SHUSTER, Mr. 0BERSTAR, Chairman DUNCAN, and Mr. LIPINSKI for their leadership in 

bringing this bill to the floor today. I urge my 

colleagues to join me in supporting this legislation in order to bring our aviation system into 

the 21st century. 

Mr. BEREUTER. Mr. Speaker, this Member 

rises in strong support of the conference report for H.R. 1000, the AIR-21 legislation. 

This legislation is clearly needed to unlock the 

Aviation Trust Fund and to provide adequate 

funding for our nation's airports. 

This Member would like to begin by commending the distinguished gentleman from 

Pennsylvania, (Mr. SHUSTER), the Chairman of 

the Transportation and Infrastructure Committee; the distinguished gentleman from Minnesota (Mr. OBERSTAR), the ranking member 

of the Transportation Committee; the distinguished gentleman from Tennessee (Mr. DuNCAN), the Chairman of the Aviation Subcommittee; and the distinguished gentleman 

from Illinois (Mr. LIPINSKI), the ranking member 

of the Subcommittee and the other members 

of the conference committee for their extraordinary work in developing this conference report and bringing it to the Floor. This Member 

appreciates their diligence, persistence, and 

hard work. 

This is an important bill for this Member's 

district, for the State of Nebraska, and for the 

Nation. It addresses the country's growing 

aviation needs in a fiscally responsible manner. Quite simply, the bill recognizes the need 

to spend aviation taxes on the aviation system. During the 105th Congress we restored 

the trust with American drivers by ensuring 

that gas taxes actually will be spent as available primarily on highway construction and 
CONFIDENTIAL AND PRIVILEGED ATTORNEY WORK PRODUCT WORKING DRAFT 12/30/12

CERTIFICATE OF SERVICE

I certify that on this 31st day of December 2012, a copy of the foregoing was 

served on the parties named below in accordance with the Department’s Rules of 

Practice. 

Jol A. Silversmith 

Ron Ricks 

 Executive Vice President – Chief 

 Legal and Regulatory Officer 

Madeleine Johnson 

 Vice President – General Counsel 

Robert W. Kneisley 

 Associate General Counsel 

Leslie Abbott 

 Senior Attorney 

Southwest Airlines Co. 

ron.ricks@wnco.com

madeleine.johnson@wnco.com

bob.kneisley@wnco.com

leslie.abbott@wnco.com

Howard Kass 

 Vice President, Legal and 

 Government Affairs 

Benjamin Slocum 

 Director, Legal and Government 

 Affairs 

US Airways, Inc.

howard.kass@usairways.com

benjamin.slocum@usairways.com

Jonathan B. Hill 

J. Parker Erkmann 

Counsel for JetBlue Airways 

 Corporation 

jhill@dowlohnes.com

perkmann@dowlohnes.com

Dan Weiss 

Managing Director, International and 

 Regulatory Affairs 

United Continental Holdings, Inc. 

dan.weiss@united.com

John E. Potter 

 President and Chief Executive Officer 

Quince Brinkley 

 Vice President and Secretary 

Metropolitan Washington Airports 

 Authority 

john.potter@mwaa.com

quince.brinkley@mwaa.com

Steve Grossman 

 Executive Director – Chief Executive 

 Officer 

Jacksonville Aviation Authority 

steve.grossman@flyjacksonville.com

Mark Kranenburg 

 Director 

Oklahoma City Department of 

 Airports

mark.kranenburg@okc.gov

todd.homan@dot.gov

susan.kurland@dot.gov

esta.rosenberg@dot.gov

barbara.hairston@dot.gov

info@airlineinfo.com