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

MOTION FOR LEAVE TO FILE AND JOINT REPLY COMMENTS OF AMERICAN, DELTA AND US AIRWAYS

Communications with respect to this document should be addressed to:

Carl B. Nelson, Jr. Associate General Counsel AMERICAN AIRLINES, INC. 1101 17 th Street NW Washington, D.C. 20036 (202) 496-5647

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 Alexander Van der Bellen Managing Director – Government Affairs & Associate General Counsel Jeff Morgan Regional Director, Government Affairs DELTA AIR LINES, INC. 1212 New York Avenue, NW Washington, D.C. 20005 (202) 842-4184

February 2, 2010BEFORE 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

MOTION FOR LEAVE TO FILE AND JOINT REPLY COMMENTS OF AMERICAN, DELTA AND US AIRWAYS

American, Continental, Delta and US Airways have each filed Comments on

Show Cause Order 2009-12-21. 1 There is universal support for expanding the pointsbroadening concept to all international markets – including countries that are entrylimited and frequency limited.

Continental has raised the concern that such points-broadening authority should

not be used to undermine the Department’s carri er selection process in limited entry

markets. Once again, there is no substantive disagreement. American, Delta and US

Airways believe that the appropriate conditions to avoid this result are already contained

in the Department’s limited-entry route case awards, and that there is no need for the

duplicative conditions or additional notice requirements proposed by Continental.

The Department’s limited entry frequency awards carry specific limitations, where

appropriate, that are permanently attached to the frequencies. 2 For example, Delta

recently sought to move limited entry Colombia frequencies from the New York-Bogota

1 To the extent necessary, the Joint Commenters request leave to file these reply comments, which will assist the Departm ent’s informed decision making.

2 Today limited entry markets are primarily gov erned by frequency restrictions, rather than gateway or designation limits, e.g. Brazil, China, Colombia. Apart from Mexico (which is unique and administered separately) designation limit s are no longer a significant constraint . Where a carrier has historically been designated to serve a foreign country, it should be free to expand or modify its service pattern in accordance with market demand, provided that such services are consistent with the bilateral agreement and do not require the allocation of any new limited entry authority (i.e. frequencies).Joint Reply Comments Page 2

to the Atlanta-Bogota market. Delta was already serving Bogota from Atlanta and held

the necessary underlying authority. Delta required DOT permission because of the

frequency conditions that were specific to the New York-Bogota market. See Docket

DOT-OST-2007-0006. Thus, it is readily apparent that certificate/gateway limitations

are not a meaningful or effective constraint on the exercise of limited-entry authority, and

that such conditions are not necessary to serve the Department’s route case objectives.

Frequency conditions, rather than outmoded constraints on carriers’ underlying authority,

are the right tool for the job.

The issuance of points-broadening streamlined authority should free carriers and

the Department from the need to track, maintain, or refer to the outdated and obsolete

system of segment-based authority. Moreov er, the Department has “recognize[d] that

the need for such streamlining is especially im portant 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.” See Notice in this docket (August 26, 2005).

For the reasons explained above, Americ an, Delta and US Airways believe that

conditions already contained in the Department ’s route case awards are sufficient to

ensure compliance with the Department’s carrier selection objectives in the modern era,

and that no additional notice requirements need to be attached to certificates.Joint Reply Comments Page 3

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 2 nd day of February, 2010, 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