BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

In the Matter of Streamlining Regulatory 

Procedures for Licensing U.S. Air 

Carriers 

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) 

) 

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Docket DOT-OST-2005-22228 

JOINT COMMENTS OF 

AMERICAN, DELTA AND US AIRWAYS 

TO STREAMLINING SHOW CAUSE ORDER 

Communications with respect to this document should be addressed to: 

 

Carl B. Nelson, Jr. 

Associate General Counsel 

AMERICAN AIRLINES, INC. 

1101 17th Street NW 

Washington, D.C. 20036 

(202) 496-5647 

carl.nelson@aa.com 

Howard Kass 

Vice President, Legal Affairs 

Benjamin T. Slocum 

Director and Assistant General Counsel 

US AIRWAYS, INC. 

1401 H Street, NW 

Suite 1075 

Washington, DC 20005 

(202) 326-5153 

howard.kass@usairways.com 

benjamin.slocum@usairways.com 

Alexander Van der Bellen 

Managing Director – Government Affairs 

 & Associate General Counsel 

Jeff Morgan 

Director, International and Regulatory Affairs 

DELTA AIR LINES, INC. 

1212 New York Avenue, NW 

Washington, D.C. 20005 

(202) 842-4184 

sascha.vanderbellen@delta.com 

January 7, 2010 
BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

In the Matter of Streamlining Regulatory 

Procedures for Licensing U.S. Air 

Carriers 

) 

) 

) 

) 

)

Docket DOT-OST-2005-22228 

JOINT COMMENTS OF 

AMERICAN, DELTA AND US AIRWAYS 

TO STREAMLINING SHOW CAUSE ORDER 

American, Delta and US Airways hereby submit these Joint Comments to Show 

Cause Order 2009-12-21. The points-broadening concept would significantly simplify 

the administration of international authorities by eliminating outdated U.S. gateway 

restrictions which have lost all relevance in the modern era. In fact, the Department has 

already effectively ended such restrictions through the issuance of blanket route 

integration to all carriers.1

 

While the Joint Commenters support the elimination of U.S. point restrictions, the 

Show Cause Order unnecessarily limits this relief to countries that are not entry or 

frequency limited. To the extent markets are “entry-limited,” the designation of carriers 

has long since been settled by route case, merger, or other procedures. To the extent 

markets are “frequency-limited,” the allocation of frequencies, and the terms and 

conditions under which they may be used, are governed by frequency allocation orders. 

Frequencies may be allocated to gateway-specific routes, which require permission to 

be moved (e.g., Colombia, Order 2008-5-27); or frequencies may be allocated eligible 

for use in any city-pair market (e.g., Brazil, Order 2004-6-24). 

The Joint Commenters urge the Department to make points-broadening authority 

applicable to all international markets. This is an industry marked by fierce competition 

 

1

 See Order 2006-1-1, this docket. 
Joint Comments 

Page 2 

and inter-carrier rivalry. It is noteworthy that the pending omnibus points-broadening 

applications in this docket have already been reviewed and consented to by all carriers 

(with the understanding and expectation that all would be entitled to the same relief). No 

party will be prejudiced by the grant of comprehensive points-broadening authority, and 

the Department should take decisive action to eliminate these outmoded and 

unnecessary restrictions. 

When the Department announced its streamlining initiative, it said that: 

The Department, through its own exploration of how to better serve the public 

interest, as well as through its desire to be responsive to comments voiced in 

various fora by affected parties, has been seeking ways to improve the means by 

which we carry out procedures related to our international aviation licensing 

responsibilities. We recognize that the need for such streamlining is especially 

important in the present highly competitive and largely liberalized international 

aviation environment, where carriers face pressing demands to maximize 

efficiency and to minimize costs and the impact of administrative delay. 

With this in mind, we have undertaken an effort to arrive at ways of better 

implementing existing policies and regulations so as to produce greater 

administrative efficiencies and greater responsiveness to our stakeholders. At 

the same time we look to reduce the paperwork, cost, and other burdens on 

those who come before us. 

Notice this docket, August 26, 2005. 

Elimination of U.S. point restrictions will serve these goals by enabling the 

Department to restate, in single simplified certificates, all of the international points a 

carrier is authorized to serve from the United States.2

 All a carrier should need to 

demonstrate is that it holds certificate or exemption authority for the foreign point or 

points. The old segment-based authorities have no current relevance – and it has been 

consistently and repeatedly confirmed that route integration authority enables carriers to 

serve new city-pairs not named in their certificate. Adoption of points-broadening 

authority will simply make clear and explicit what is already the current reality. 

 

2

 Mexico certificates are administered separately. Mexico has unique segment-specific 

designation requirements that have no equivalent anywhere else in the world. 
Joint Comments 

Page 3 

Moreover, the Department’s modern practice in issuing new route authority is to 

make broad “any points” U.S. authority available – even in “entry-limited” and 

“frequency-limited” markets. See NOAT dated August 8, 2008, docket OST-2009-0227 

& 0229 (Granting American and Delta authority to serve frequency-limited Northern 

Brazil markets from “any point(s) in the United States”); see also NOAT dated November 

20, 2008, docket OST-2008-0355 (Granting Northwest authority to serve entry-limited 

Vietnam market from “points in the United States”). There is no need to continue to 

condition carriers’ historic authorities to gateway-specific points – when new authorities 

are routinely granted for entry-limited and frequency-limited markets without such 

conditions. As always, carriers must operate their services in accordance with 

applicable international agreements – but there is no need for the Department to 

perpetuate superfluous point restrictions in carrier certificates. 

Finally, the universal application of points-broadening authority will enable all 

carriers’ operating rights to be simply and concisely restated – reducing burdens on the 

Department which does not have the resources to maintain cumbersome and irrelevant 

segment-based authorities. The vast majority of U.S. carrier international certificates 

and exemptions have long been expired by their terms – in some cases for more than a 

decade – and are carried on indefinitely under the automatic renewal provisions of the 

Administrative Procedure Act. This creates potential confusion for carriers in dealing 

with foreign governments that do not understand the nuances of U.S. administrative law. 

By reissuing single, simplified and restated certificates, the Department will ensure that 

carriers always have current and effective authority – which serves the key objectives of 

the streamlining initiative and is consistent with principles of good government. 
Joint Comments 

Page 4 

WHEREFORE, the undersigned carriers urge the Department to modify and 

expand the points broadening proposal of Order 2009-12-21 as set forth above. 

 

Respectfully submitted,

/s/ Alexander Van der Bellen 

_________________________________

/s/ Carl B. Nelson, Jr. 

__________________________ 

Carl B. Nelson, Jr. 

Associate General Counsel 

AMERICAN AIRLINES, INC 

/s/ Howard Kass 

___________________________ 

Howard Kass 

Vice President, Legal Affairs 

US AIRWAYS, INC. 

Alexander Van der Bellen 

Managing Director, Government Affairs 

 & Associate General Counsel 

DELTA AIR LINES, INC. 

 
CERTIFICATE OF SERVICE 

 A copy of the foregoing Comments has been served this 7th day of January, 2009, 

upon the following persons via email: 

anbird@fedex.com 

anita.mosner@hklaw.com 

benjamin.slocum@usairways.com 

bill@mietuslaw.com 

bob.kneisley@wnco.com 

BTHunt@pncl.com 

byerlyjr@state.gov 

carl.nelson@aa.com 

dan.weiss@coair.com 

daniel.commins@evergreenaviation.com 

dhainbach@ggh-airlaw.com 

Dwight.moore@ustranscom.mil 

hkamen@coair.com 

howard_kass@usairways.com 

jeffrey.manley@united.com 

john.allen@faa.gov 

jrichardson@johnlrichardson.com 

julie.oettinger@united.com 

jyoung@yklaw.com 

kevin.montgomery@polaraircargo.com 

matwood@sherblackwell.com 

mroller@rollerbauer.com 

mrosia@crowell.com 

rpommer@atlasair.com 

rsilverberg@sgbdc.com 

slachter@lachter-clements.com 

art.thomas@horizonair.com 

ben.graves@evergreenairlines.com 

Brian.Gillman@mesa-air.com 

bruce.rabinovitz@wilmerhale.com 

cdonley@ssd.com 

dkirstein@yklaw.com 

dvaughan@kelleydrye.com 

ebailey@wileyrein.com 

efaberman@wileyrein.com 

gmurphy@crowell.com 

gwhite@lac.lynden.com 

jhill@dowlohnes.com 

John.Fredericksen@suncountry.com 

john.palo@evergreenairlines.com 

judy@lynden.com 

kenneth.quinn@pillsburylaw.com 

lhalloway@crowell.com 

mcmillin@woa.com 

mlbenge@zsrlaw.com 

msinick@ssd.com 

mwiegele@nac.aero 

pmurphy@lopmurphy.com 

ranjit.seth@evergreenairlines.com 

rbkeiner@crowell.com 

robert.land@jetblue.com 

scott.peterson@expressjet.com 

sllunsford@fedex.com 

temerson@skywest.com 

Mike.orr@airlineinfo.com 

pdoell@naca.cc 

rpriddy@naca.cc 

TZoeller@naca.cc