UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION 

it E OF TIIE SECRETARY 

Washington, D.C. 

Docket No. 

OST-2007-27331 

ALASKA AIRLINES, INC., etal., 

V. 

LOS ANGELES 14 ORLI) AIRPORTS, LOS 

ANGELES BOARD OF AIRPORT 

COMMISSIONERS, and THE CITY OF LOS 

ANGELES, CALIFORNIA.

COMPLAINANTS' AND RESPONDENTS' JOINT REPORT

ON THE STATUS OF SETTLEMENT DISCUSSIONS 

Steven S. Rosenthal 

Jeffery A. Tornasevich 

3.1). Taliaferro 

KAYE SCHOLER 

901 Fifteenth Street, NW 

Washington. DC 200O5 

Phone (202) 682-3500 

Fax: (202) 682-3580 

srosenthakavescho er.eom 

jtornasevichkavescholer.com

jtaliaferroqk.avescholer.com

Carmen A. Trutanich 

Los Angeles City Attorney 

Kelly Martin 

Generai Counsel. Los Aneles World 

Airports 

Raymond S. ligunas 

Assistant General Counsel 

Los ANGELLS CITY ATTORNFY - S OFFICF, 

Los :Angeles World Airports 

One World Way 

Los Angeles, CA 90045 

Phone: (424) 646-5010 

Counce A.c.sponc,ents 1), . • I 

M. Roy Goldberg 

SHEPPARD :MULLIN 

RICHTER & I IAMPTON 

1100 I Street, NW 

Suite 1100 East 

Washington, DC 20005-3314 

Phone: (202) 218-0007 

Fax: (202) 218-0020 

moldbentrcishepoardmullin.com

Counsel lbr: 

Alaska Airlines. Inc. 

AirTrun A /mays, Inc. 

ATA Airlines, Inc. 

Frontier Airline.s, 

Midiesi Airlines Inc. 

Southwest Airlines Co. 

US Airways Group, Inc.
COMPLAINANTS' AND RESPONDENTS' JOINT 

RF::'ORT ON rm. s r,vr us OF SETTLEMENT DISCUSS/ONS 

Robert W. Kneisley 

Associate General Counsel 

Leslie Abbott 

Attorney 

SOUTHWEST AIRLINES CO. 

1901 I, Street, N.W. 

Suite 640 

Washington, DC 20036 

I Inward Kass 

Vice President, Legal Affairs 

US AIRWAYS GROUP, INC. 

1401 If Street. N.W. 

Suite 1075 

Washington, DC 20005 

Thomas R. 0-Cirady 

Deputy General Counsel 

ALASKA AIRLINES, !NC. 

19300 International Blvd. 

Seattle, Washington 98188-5303 

Jacqueline r 

Counsel 

FRONTIER AIRLINES, INC. 

7001 Tower Road 

Denver, Colorado 80249 

Richard P. MailLIMO 

Senior Vice President. General 

Counsel & Secretary 

AIRMAN AIRWAYS, INC, 

9955 AirTran Boulevard 

Orlando, Florida 32827 

Edward P. Faberman 

WILF:v RFIN I LP 

1776 K Street. N.W. 

Washinaton, DC 20006 

(.onnsel 

Air D.an p'ays 

Frontier Airlines, Inc. 

DATED: N 16, 2010
COMPLAINANTS' AND RESPONDENTS' JOINI 

REPORT ON 'FITE STATUS OF SETTLEMENT DISCUSSIONS 

The TI '13 Airlines' and Los Angeles World Airports 2 -LAWA") (collectively, 

the "Parties") hereby jointly file a status report. in conformit y ith DOT's "Order 

Granting an interim Stay of Proceedin gs and Extendin g Deadline to File Procedural 

Comments." Order 2010-01-14 ("January 21 Order ri-wardin g. he settlement of certain 

procedural and evidentiary issues relating to the remanded issues as set forth in DOT., 

Order 2009-1 1-24 ("November 24 Notice") and Order • 009-12-17 (' December 22 

Order").

BACKGROUND 

On November 24. 2 009, following remand of certain iss u2s by the United States 

Court of Appeals for the District of Columbia Circuit the -D.C. Circuit"), the 

Department olTransportulion ("DOT") issued the November 24 Notice in this case. 

DOT's November 24 Notice directed the Ti -113 Airlines and LAWA -to advise the 

Department whether there is a possibility of settlement on the issues remanded" by 

the D.C. Circuit. November 24 Notice at 5, The November 24 Notice further directed 

another submission on procedural issues at a later date. 

Following LAWA's and the Ti/T3 Airlines' initial submissions on December 2, 

2009 and December 4, 2009, respectively, the Parties held a conference call with DOT on 

December 16. 2009, Durin g that eai: the Parties discussed additional procedural issues, 

and DOT subsequently issued the December 22 Order, directing the Parties to file,no 

The Ti ;T3 Airlines are the seven air carriers that on February 16, 2007, filed with 

the Office of the Secretary of the United States Department of I:ansportation a -Joint 

Complaint in Opposition to New Terminai Char ges at Los Angel-s International 

Airport." 

2 Respondents in this case are the LAWA. the Los Aneeles Board Of Airport

Commissioners ("1-30:\C"), and the City. Or Los Angeles, Cali 1-ornia ("Ci .As 'sod 

herein, LAWA refers to all Respondents,
COMPLAINANTS' AND RESPONDENTS' JOINT 

REPORT ()T sTATus OF SEITLEMENT DISCUSSIONS 

later than January 18, 2010, additional comments with re gard to t-ie five issues remanded 

by the D.C. Circuit as set forth in the November 24 Notice. 

On January 11, 2010. the T1/13 Airlines and LAWA filed a joint motion to 

extend deadlines in this proceedin g in order to attempt to reach agreement on the issues 

identified in the Notice. In its January 21 Order, 1)01 granted the Parties' motion to 

extend the deadline to provide written submissions on remaining written and evidentiary 

issues from January 2010 to October 18. 2010, but directed the Parties to tile periodic 

reports regarding the status of settlement ne gotiations. 'Fife first such report was due 

March 18, 2010, with successive reports to be filed approximatel y every 60 days 

thereafter.

DESCRIPTION OF SETTLEMENT DISCUSSIONS 

SINCE THE I) ARTIES MAY 17, 2010 JOINT STATUS REPORT 

By the time of DOT's January 21 Order. the 11113 Airlines and LAWA had 

already reached agreement on one of the five remanded issue identified by the November 

24 Notice - -the ol the] T1 Airlines objection to fair market valuation" 

used by LAWA in setting base rent (also known as the -Base Char ge ) at 1.AX 

Terminal I. November 24 Notice at 2. DOT's November 24 Nctice identirleci four 

additional issues for consideration on remand. Since January ii. 2010. the TI/T3 

Airlines and LAWA have undertaken the followin g steps towards resolving those four 

issues.

The Parties' March 18, 2010 Status Report notified DOT that the airline members 

of the Airpoi Affairs Commi ("AAAC") have created a "Subcommittee for 

Finance" consisti ff. ofairlines that have an interest in issues reinn to rates and charges 

.ery air carrier and foreign air carrier operating at LAX i a member of the AAAC. 

2
COMPLAINANTS' AND R;:SPONDENTS' JOINT 

?0:-(1 . ON THF. STATES OF SETTLEMENT DISCE'SSIONS 

at LAX. Airlines that are members of' that Subcommittee include airlines with long-term 

leases. airlines that have recently signed leases, and airlines that are operating_ at LAX 

pursuant to the existin g Tariff (portions of which the TI/T3 Airlines challenged). The 

TI/T3 Airlines on the Subcommittee for Finance include Alaska Airlines. Inc, Southwest 

Airlines Co. and US Airways Group. The Subcommittee for Finance reports to the 

AAAC.

TheParties' March 18, 2010 joint Status Report described the first meeting 

between the Subcommittee for Finance and LAWA„ and described a framework for 

ongoing discussions between the Subcommittee and LAWA. The Parties' March 18, 

2010 Joint Status Report also described ongoin g discussions between LAWA and several 

of the T 1 /T3 Airlines that were conducted on an individual basis. 

The Parties' May 17, 2010 Joint Status Repo., informed DOT that LAWA was 

continuing its one-on-one discussions with several of the 1111 . 3 Airlines anj that LAWA 

management was scheduled to meet with the Chair of the Subcommittee for Finance on 

May 24, 2010. 

Since the Parties' last report, I.AWA management and the Chair of the 

Subcommittee for Finance did meet on May 24, 2010. At that meetin g , J..AWA discussed 

generally the global changes it wishes to address in the Tariff and se, plans for a future 

meeting to nrovide an in depth presentation to the full Subcommittee as a precursor to 

discussions with the full AAAC membership. WA mana gement and the 

Subcommittee iar Finance are scheduled to meet on July 27, 2010 to !lather discuss these 

proposed giohal chan g es to the Tariff
COMPLAINANTS' ND RESPONDENTS' .10INT 

IZ.1:1)0R .I. ON THE SLITS OF SETTLEMENT DISCUSSIONS 

In addition, since We last report, LA WA has been continunw its one-on-one 

discussions with several of the T3 Airlines.! Towever, to date, the Ti Airlines and LAWA 

have made no progress on settling any of the outstanding issues, despite the professed 

desire by caeh or the Parties to do so, The Parties remain interested in trying to resolve 

the four remaining remand issues on or before October 18, 2010. 

4
Dated: July 16 2010 1Zesnectfullv suhmitte 

1 M. Roy Giolperv. 

SIlEPPA4Z.1) MULLIN 

RICHTER. 151.: IIAN1P LIP 

1300 1 Street, NW 

Suite 1100 East 

1,Vashin glon, IX: 20005-3314 

Phone: (202) 218-0007 

Fax: (202) 218-0020 

ruoldberg sheppardmullin.corn 

C'ounsel ./Or: 

Alaska Airlines, Inc. 

Air Iran Airways, Inc. 

ATA A irlincs. Inc. 

Frontier Airlines. Inc. 

illidwe.s1 Airlines. Inc. 

Southwest Air/ine.s. ( 'a, 

US Airways Group, Inc 

Robert W. Kneisley 

Associate General Counsel 

Leslie Abbott 

Attorney 

SOLTHWLST AIRLINES CO. 

1901 I. Street. NAV. 

Suite 640 

Washington, DC 20036

COMPLA/NANTS' AND RESPONDENTS JOINT 

REPORT ON THE STATUS OF SETTLEMENT DISCISSIONS 

Steven S. Rosenthal 

Jeffery A. Tomasevich 

ID. Talialerro 

KAYF. SCHOLER 

901 Fifteenth Street, NW 

Washington. DC 20005 

Phone (202) 682-3500 

Fax: (202) 682-3580 

email: srosenthar;:i. kaveseholer.com

itornasevichrid(aveseholer.com

jtalialerroAskavescholer.com

Carmen A. Trutanich 

Los Angeles City Attorney 

Kell y Martin 

General Counsel, EAWA 

Raymond S. ilgunas 

Assistant General C'eunsel 

Los Angeles City Attorney's Office 

One World Way 

Los Angeles. CA 90045 

Phone: (424) 646-5010 

Counsel . (Or Respondents
Richard I). N.1a2,urno 

Senior Vice President. General 

Counsel & Secretary 

AIRTRAN AIRWAYS, INC. 

9955 Air! ran Boulevard 

Orlando. Florida 32827 

COMPLAINANTS' AND RESPONDENTS' JOINT 

REPORT ON THE STATUS OF SETTLEMENT DISCUSSIONS 

Howard Kass 

Vice President, Leizal Affairs 

LS AIRWAYS GROITP. INC. 

1401 II Street. N.W. 

Suite 1075 

Washin gton, DC 20005 

Thomas R. O'Grady 

Deputy General Counsel 

ALASKA AIRLINES. INC. 

19300 international Blvd. 

Seattle. Washington 98188-5303 

Jacqueline Peter 

Counsel 

FRONTIER AIRLINES, INC. 

7001 Tower Road 

Denver. Colorado 80249 

Pid\.ard P laberrnan 

1.,VILEY REIN LIT 

1776 K Street. N.W. 

Washington. DC 20006 

Counsel/or: 

Ai • 710,7.1inrcrys 

1:7'0711ler Inc

6
CERTIFICATE OF SERVICE FOR COMPLAINANTS' AND RESPONDENTS' 

JOINT REPORT ON THE ST..kTUS OF SETTLEMENT DISCUSSIONS 

CERTIFICATE OF SERVICE 

I. Stephmic Cohen, hereby certify that on July 16. 2010. 1 caused to be served by 

email, a true and correct copy ol the foreuoinLt COMPLAINANTS AND 

RESPONDENTS' JOINT REPORT ON THE STATUS OF SETTLEMENT 

NEGOTIATIONS on The following: 

M. Roy Goldberg..sq. 

SIII-IPPARD MULLIN 

R.ICI ITER &11AMPION LLP 

1300 I Street. NW 

Suite 1100 East 

Washington, DC 20005-3314 

Phone: (202) 218-0007 

Fax: (202) 218-0020 

shenpardmullin.com

Counsel for: 

Alaska Airlines. Inc. 

AirTran A irway.s.. 

1.1 A Airlines. Inc. 

Froniier Airlines, Inc. 

..Vficlwest .4irlines. 

Southwest A irline.s. Co. 

US Airwa ys. Group, 

David A. Ber g. Hsq. 

AIR TRANSPORT ASSOCIATION 

OF AMERICA 

1301 Pennsylvania Ave., NW 

Washington. DC 20004 

Phone: (202) 626-4234 

Fax: (202) 626-4139 

dber2/d:airlines.orp. 

Robert P. Silverberg . E 

SILVERBERG, (1OLDM.AN & 

B1KOFF. LI.P 

1:01 30th Street. NW, Suite 120 

'Washin gton, DC 20007 

P.hone: (202) 944-3304 

Fax: (202) 944-3306 

rsilverbenl'a s .dc.com

Scott P. Lewis. Esq. 

ANDERSON cc.<:. KREIGER LIP 

One Canal Park 

Suite 200 

Cambridge, MA 02141 

Phone: (617) 621-6560 

Fax: (617) 621-6660 

siewis.T/3:andersonkret.ter.com 

Monica lian2rove Kemp, 1:,sq. 

A1RPOR FS COUNCIL IN:VERNA 1:0NAL 

NORT! AMERICA 

1775 K Street, NW 

Washington. DC 20006 

Phone: (202) 293-8300 

Fax: (202) 331-1367 

mkern_pra,.'aci-na.or 

C'ounsel 

Counselji.w...17:4
cphailie Cohen

CERTIFICATE OF SERVICE FOR (.:0N1I'LAINANTS' AND RESPONDEN 

.110INT REPORT ON THE STATUS OF sET-1-1.xmENT Disc:ussioNs 

In addition, I caused a true and correct copy of the foregoing COM PI,A I NANTS AND 

RESPONDENTS' JOINT REPORT ONTHE STATUS OF SETTLEMENT 

NEGOTIATIONS to be emailcd to Mary F. Withum. Esq., Office of the General Counsel. 

Department orrransportation, at mary.withum 

In addition, I caused to he filed electronically one copy of the foregoing 

COMPLAINANTS AND RESPONDEN FS' JOINT REPORT ON THE STATUS OF' 

SETTLEMENT NEGOTIATIONS in Docket Number DOT-OST-2007-2733 I in the Federal 

Docket Manauement System (FDMS) at http://www.Re2tdations.goy .