**BEFORE THE**

**DEPARTMENT OF TRANSPORTATION**

**WASHINGTON, D. C.**

--------------------------------------------- Application of : : AMERICAN AIRLINES, INC. : DOT-OST-2010- : under 49 USC 40l09 for allocation of : three weekly U.S.-Brazil combination : frequencies (DFW-Rio de Janeiro) :

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

**APPLICATION OF AMERICAN AIRLINES, INC. FOR ALLOCATION**

**OF THREE WEEKLY U.S.-BRAZIL COMBINATION FREQUENCIES (DALLAS/FT. WORTH-RIO DE JANEIRO)** 

Communications with respect to this document should be sent to:

VIRASB VAHIDI WILLIAM K. RIS, JR. Senior Vice President - Senior Vice President - Planning Government Affairs American Airlines, Inc. American Airlines, Inc. P.O. Box 619616, MD 5634 1101 17 th Street, N.W. DFW Airport, Texas 75161 Washington, D.C. 20036

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

July 8, 2010**BEFORE THE**

**DEPARTMENT OF TRANSPORTATION**

**WASHINGTON, D. C.**

--------------------------------------------- Application of : : AMERICAN AIRLINES, INC. : DOT-OST-2010- : under 49 USC 40l09 for allocation of : three weekly U.S.-Brazil combination : frequencies (DFW-Rio de Janeiro) :

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

**APPLICATION OF AMERICAN AIRLINES, INC. FOR ALLOCATION**

**OF THREE WEEKLY U.S.-BRAZIL COMBINATION FREQUENCIES (DALLAS/FT. WORTH-RIO DE JANEIRO)** 

American Airlines, Inc. hereby applies for allocation of three weekly U.S.-Brazil combination frequencies which we will use to operate year-round nonstop service three days a week between Dallas/Ft. Worth and Rio de Janeiro effective November 18, 2010. American proposes to utilize 219-seat B763 aircraft (28C/191Y) for this service. Southbound, the flights will depart DFW on Tuesday, Thursday, and Saturday at 1945 and arrive in GIG at 1025 (+ 1). Northbound, they will depart GIG on Wednesday, Friday, and Sunday at 2315 and arrive in DFW at 0625 (+ 1). American has 50 B763 aircraft in its fleet all of which comply with FAR 36. American holds Dallas/Ft. Worth-Rio de Janeiro exemption authority most recently renewed by Notice of Action Taken, DOT-OST-1996-1353, July 7, 2009.- 2 -

There is currently no nonstop service between Dallas/Ft. Worth and Rio de Janeiro. By opening Dallas/Ft. Worth as a nonstop gateway to the second largest city in the largest country in South America, American will offer convenient newservice in the local DFW-Rio de Janeiro market, as well as onestop on-line connecting service to dozens of cities via American’s large DFW hub. Most flights between the U.S. and Rio de Janeiro are now concentrated at eastern gateways Miami, Atlanta, Charlotte, and New York. A gateway at DFW linking Rio de Janeiro to the southwest region of the United States will provide substantial benefits to passengers and shippers. Behind DFW, American will offer convenient on-line roundtrip connections to a number of major U.S. cities, including Albuquerque, Austin, Chicago, Cincinnati, Cleveland, Denver, Detroit, Houston, Indianapolis, Las Vegas, Los Angeles, Minneapolis/St. Paul, New Orleans, Phoenix, Portland, St. Louis, Salt Lake City, San Antonio, San Diego, San Francisco, and Seattle. American recently entered into a codeshare alliance with Gol, Brazil’s largest carrier (DOT-OST-2010- 0009), and will offer AA* service on Gol beyond Rio de Janeiro

to other cities in Brazil.- 3 -

There are three U.S.-Brazil frequencies in the unallocated pool which may be used to serve any point in Brazil except Sao Paulo (until infrastructure constraints at GRU are removed). It is well-established that when a carrier has firm plans to utilize limited-entry authority, such rights should be awarded without delay. See America West/Mesa , Notice of Action Taken, OST-2003-16444, February 13, 2004, p. 4 (“It is not our policy to allow valuable operating rights to go unused . . . when another carrier is interested in serving the routes and has firm plans to do so”); Continental (Newark-Buenos Aires ), Order 2001-7-12, July 10, 2001, p. 4 (denying a dormancy waiver where “such a delay would waste valuable operating rights when other carriers have firm plans to use them”).On June 23, 2010, Delta Air Lines filed an anticompetitive application to swap three of its regional Brazil frequencies for the three unrestricted frequencies in the unallocatedpool (DOT-OST-2010-0162). Delta would not use these frequencies to serve Rio de Janeiro, or indeed to operate any new service at all. Instead, Delta would continue to operate its existing regional service from Atlanta to Brasilia and Manaus. Delta thus seeks to warehouse three unrestricted frequencies by assigning them to existing regional service, thus preventing another carrier from initiating new service to Rio de Janeiro.- 4 -

Delta proposed a similar frequency swap in DOT-OST2010-0090, a tactic the Department rejected less than a month ago by Notice of Action Taken, June 16, 2010. Just days later, on June 23, Delta was at it again with the current request. We are separately submitting an answer in DOT-OST-2010-0162 in opposition to Delta’s latest bid to swap frequencies, which the Department should again deny. For the foregoing reasons, the Department shouldpromptly allocate three weekly U.S.-Brazil combination frequencies to American so that we may begin promoting and selling our proposed new service between Dallas/Ft. Worth and Rio de Janeiro at the earliest possible date. Respectfully submitted,

___________________________ CARL B. NELSON, JR. Associate General Counsel American Airlines, Inc. July 8, 2010**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 mrosia@crowell.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 donna.kooperstein@usdoj.gov cdonley@ssd.com dwight.moore@ustranscom.mil gbleopard@fedex.com john.allen@faa.gov dvaughan@kelleydrye.com byerlyjr@state.gov kevin.montgomery@polaraircargo.com recohn@hhlaw.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 rpommer@atlasair.com benjamin.slocum@usairways.com gmurphy@crowell.com sophy.chen@hklaw.com russell.bailey@alpa.org david.heffernan@wilmerhale.com

_______________________________ CARL B. NELSON, JR.

July 8, 2010