BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D. C.

Transcription

1 BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D. C : 2010 U.S. HANEDA COMBINATION SERVICES : DOT-OST ALLOCATION PROCEEDING : : ANSWER OF AMERICAN AIRLINES, INC. Communications with respect to this document should be sent to: VIRASB VAHIDI WILLIAM K. RIS, JR. Senior Vice President - Senior Vice President- Marketing and Planning Government Affairs and Chief Commercial Officer American Airlines,Inc. American Airlines, Inc th Street, N.W. P.O. Box , MD 5634 Washington, D.C DFW Airport, Texas FRANCIS C. HEIL ROBERT A. WIRICK Senior Attorney Managing Director, Regulatory American Airlines,Inc. and International Affairs th Street, N.W. American Airlines, Inc. Washington, D.C P.O. Box , MD 5635 (202) DFW Airport, Texas francis.heil@aa.com (817) robert.wirick@aa.com September 6, 2012

2 BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D. C : 2010 U.S. HANEDA COMBINATION SERVICES : DOT-OST ALLOCATION PROCEEDING : : ANSWER OF AMERICAN AIRLINES, INC. American Airlines, Inc. hereby answers the applications for U.S.-Haneda authority filed on August 27, 2012 by Delta Air Lines (Detroit), United Air Lines, (San Francisco), and Hawaiian Airlines (Kona). As we show below, the Department should promptly conclude this proceeding by granting American s application to operate daily nonstop service between Los Angeles and Haneda. o Los Angeles is the largest U.S. Mainland gateway to Tokyo, two times larger than San Francisco and six times larger than Seattle. o Selection of American will provide oneworld s first entry in the Los Angeles-Haneda nonstop market, which is already served by Star and SkyTeam, thus enhancing competitive balance among the global alliances. o Via the Los Angeles gateway, American and American Eagle will provide convenient on-line roundtrip

3 -2- connections to 22 U.S. behind cities, including the 10 largest traffic generators to Tokyo. o American s immunized cooperative relationship with Japan Airlines will provide connecting opportunities beyond Haneda to 29 cities in Japan as well as to Shanghai, Beijing, Bangkok, Hong Kong, Seoul, Singapore, and Taiwan. DELTA Having failed to succeed with service to Haneda from its large hub at Detroit, Delta now wishes to give Seattle a try. The Department should not gamble the public interest by enabling Delta to experiment with another gateway where Delta s presence is minimal. Seattle is not a Delta hub. From Seattle, Delta operates to only six Mainland cities (Atlanta, Cincinnati, Detroit, Minneapolis/St. Paul, New York, and Salt Lake City). All of the other on-line service behind Seattle that Delta claims in its application is DL* operated by Alaska Airlines or Horizon Air under codeshare agreements (Exhibit AA-R-101). Delta has no control over Alaska s scheduling decisions and thus can offer no assurance that the claimed Delta-to-DL* connections operated by Alaska via Seattle will continue to exist in the future. We cannot recall any carrier

4 -3- selection proceeding where an applicant has relied so heavily on codeshare connecting service operated by another carrier. Moreover, Delta presents the unusual situation where a carrier, having failed with an international route from a large hub, now seeks to transfer the route to a non-hub. At its Detroit hub, Delta operates to 38 U.S. cities, but at Seattle, as noted above, operates to just 6 (Exhibit AA-R-102). For the year ended July 2012, Seattle accounted for 82,596 passenger bookings to Tokyo, one sixth of the 481,518 bookings for Los Angeles (Exhibit AA-111). Among all Mainland gateways, Seattle ranks sixth in Tokyo bookings, while Los Angeles ranks first. Seattle is the smallest Mainland-Tokyo market proposed by any of the applicants (Exhibit AA-R-103). While Delta says that Seattle is the largest Mainland market without nonstop service to Haneda (DL appl., p.3), that assertion is incorrect. Chicago-Tokyo and Las Vegas-Tokyo are both larger and lack nonstop flights to Haneda (Exhibit AA-R-104). Delta has proposed the smallest aircraft (225-seat B767) among the applicants (Exhibit AA-R-105). The Department used aircraft size as a carrier selection

5 -4- factor in the initial decision in this docket. See Order , p.10 (citing Delta s significant capacity advantage). Delta, as the applicant proposing the least amount of capacity, should not be favored. UNITED United and its Star Alliance partners (ANA and Singapore Airlines) command the largest presence in the U.S.-Japan nonstop market. United operates nonstop to Tokyo from 8 U.S. gateway cities (Chicago, Honolulu, Houston, Los Angeles, Newark, San Francisco, Seattle, and Washington), to Osaka from San Francisco and Guam, and to 10 cities in Japan (Fukuoka, Hiroshima, Nagoya, Niigata, Okayama, Okinawa, Osaka, Sapporo, Sendai and Tokyo)from Guam. ANA operates nonstop to Tokyo from 7 U.S. gateway cities (Chicago, Honolulu, Los Angeles, New York, Seattle, San Francisco, and Washington), and Singapore Airlines operates nonstop between Los Angeles and Tokyo (Exhibit AA-R-106). American serves Tokyo nonstop from 4 U.S. gateways (Chicago, Dallas/Fort Worth, Los Angeles and New York) and Japan Airlines serves Tokyo from 7 U.S. gateways (Boston, Chicago, Honolulu, Los Angeles, New York, San Francisco, and Guam) and also serves Nagoya and Osaka from Honolulu (Exhibit AA-R-107).

6 -5- Star operates 210 weekly nonstop frequencies between the U.S. and Japan, while oneworld operates 118 (Exhibit AA-R-108). Star operates 53,895 weekly nonstop seats between the U.S. and Japan, while oneworld operates 33,249 (Exhibit AA-R-109). For the year ended July 2012, Star accounted for 1,037,316 passenger bookings between the U.S. and Tokyo, while oneworld accounted for 912,510 (Exhibit AA-R-110). In the interest of competitive balance among the three global alliances, American s application for Los Angeles-Haneda authority should be favored over United s application for a San Francisco-Haneda award. See Order in this docket, p. 11 ( in the overall U.S.-Asia market, the Star and SkyTeam alliances currently hold significant positions. Thus, an award of Haneda rights to American here should enhance alliance competition by improving the competitive posture of American and oneworld in the U.S.-Asia market as compared to the SkyTeam and Star alliances ). Los Angeles is the largest U.S. Mainland gateway to Tokyo, and twice the size of San Francisco (Exhibit AA-111). Balancing competition among global alliances is particularly important in the largest Mainland market.

7 -6- See 2005/2006 U.S.-China Frequencies Case and Designations, Order , February 22, 2005, p. 24 ( an award to American in this case would provide interalliance competition, which has become an important component of competition in international markets. An award to American will allow oneworld to better compete with SkyTeam and Star and extend the benefits of enhanced inter-alliance competition to the traveling public ). HAWAIIAN AIRLINES Hawaiian has applied to operate between Kona, Hawaii and Haneda. Hawaiian s application is the weakest among the contenders and should be disfavored for several reasons. Only eight U.S.-Haneda opportunities are available under the U.S.-Japan air transport agreement (four for U.S. carriers and four for Japanese carriers). Three of the eight (37.5%) are already being used to serve Hawaii (HA, JAL, and ANA each operates to Haneda from Honolulu)(Exhibit AA-R-111). If Hawaiian were to prevail here, 50 percent of all Haneda opportunities (four of eight) and 50 percent of U.S. carrier Haneda opportunities (two of four) would be used at a Hawaii gateway (Exhibit AA-R-112).

8 -7- Destinations in Hawaii account for 36 percent of passenger bookings in the U.S.-Tokyo market (Exhibit AA- R-113), which is less than the 37.5% Haneda slot share now enjoyed by Hawaii. In these circumstances it would clearly be contrary to the public interest to select Hawaiian Airlines. Moreover, of all the passenger traffic carried between Hawaii and Japan, the overwhelming majority (94 percent) is Japan-originating (Exhibit AA-R-114). We do not believe that the U.S. Government, in negotiating valuable Haneda rights for U.S. carriers, intended that half of the allotment would be used for the benefit of Japanese leisure passengers. Finally, Hawaiian would offer behind gateway online connections to only 2 destinations (Honolulu and Maui) (Exhibit AA-R-115). Coupled with the other factors weighing against Hawaiian cited above, a public interest justification for granting Hawaiian s application is lacking.

9 -8- CONCLUSION For the foregoing reasons, the Department should select American to operate nonstop service between Los Angeles and Haneda. Los Angeles is the largest Mainland gateway to Tokyo and is without nonstop service to Haneda by oneworld. To remedy such a competitive imbalance among global alliances, American s application should be granted. Respectfully submitted, Francis C. Heil Senior Attorney American Airlines, Inc. September 6, 2012

10 MOST OF DELTA'S ONLINE SERVICE BEHIND SEATTLE IS DL* OPERATED BY ALASKA AIRLINES OR HORIZON AIR Seattle to Haneda (Westbound) Connections and Elapsed s (Summer) SEA Ground DL 59 SEA-HND Flight From City Flight Number Carrier Equip Seats Operating Days Departure Arrival Inbound Flight ATL Atlanta, Georgia 129 DL :22 18:45 5:23 0:50 10:35 16:48 ATL Atlanta, Georgia 915 DL :22 18:45 5:23 0:50 10:35 16:48 ATL Atlanta, Georgia 129 DL :15 18:38 5:23 0:57 10:35 16:55 FAT Fresno, California 2534 AS DH :05 18:31 2:26 1:04 10:35 14:05 LAS Las Vegas, Nevada 611 AS 73H :00 18:29 2:29 1:06 10:35 14:10 PSC Pasco/Kennewick, Washington 2109 AS DH :30 18:22 0:52 1:13 10:35 12:40 ANC Anchorage, Alaska 100 AS 73H :55 18:20 3:25 1:15 10:35 15:15 ANC Anchorage, Alaska 100 AS :55 18:20 3:25 1:15 10:35 15:15 PDX Portland, Oregon 2046 AS DH :30 18:17 0:47 1:18 10:35 12:40 BOI Boise, Idaho 2363 AS DH :36 18:08 1:32 1:27 10:35 13:34 MSO Missoula, Montana 2349 AS DH :35 18:07 1:32 1:28 10:35 13:35 LAX Los Angeles, California 467 AS 73H :30 18:04 2:34 1:31 10:35 14:40 SLC Salt Lake City, Utah 716 DL :50 17:57 2:07 1:38 10:35 14:20 SLC Salt Lake City, Utah 2257 DL :50 17:57 2:07 1:38 10:35 14:20 JNU Juneau, Alaska 56 AS 73H :35 17:55 2:20 1:40 10:35 14:35 JNU Juneau, Alaska 56 AS :35 17:55 2:20 1:40 10:35 14:35 ORD Chicago, Illinois 23 AS :25 17:50 4:25 1:45 10:35 16:45 SNA Orange County, California 507 AS 73H :10 17:44 2:34 1:51 10:35 15:00 SNA Orange County, California 507 AS 73G :10 17:44 2:34 1:51 10:35 15:00 PDX Portland, Oregon 2026 AS DH :55 17:42 0:47 1:53 10:35 13:15 GEG Spokane, Washington 2509 AS DH :30 17:35 1:05 2:00 10:35 13:40 YVR Vancouver, Canada 2233 AS DH :35 17:29 0:54 2:06 10:35 13:35 PSP Palm Spring, California 549 AS 73G :50 17:25 2:35 2:10 10:35 15:20 SAN San Diego, California 487 AS 73H :43 17:24 2:41 2:11 10:35 15:27 SAN San Diego, California 487 AS 73G :43 17:24 2:41 2:11 10:35 15:27 DTW Detroit, Michigan 733 DL :32 17:24 4:52 2:11 10:35 17:38 BZN Bozeman, Montana 2459 AS DH :20 17:23 2:03 2:12 10:35 14:50 PDX Portland, Oregon 2162 AS DH :30 17:18 0:48 2:17 10:35 13:40 SIT Sitka, Alaska 58 AS :05 17:17 2:12 2:18 10:35 15:05 PHX Phoenix, Arizona 633 AS 73G :20 17:12 2:52 2:23 10:35 15:50 Total Travel

11 Seattle to Haneda (Westbound) Connections and Elapsed s (Summer) SEA Ground DL 59 SEA-HND Flight From City Flight Number Carrier Equip Seats Operating Days Departure Arrival Inbound Flight DTW Detroit, Michigan 733 DL :20 17:11 4:51 2:24 10:35 17:50 LAS Las Vegas, Nevada 607 AS 73H :40 17:09 2:29 2:26 10:35 15:30 LAS Las Vegas, Nevada 607 AS :40 17:09 2:29 2:26 10:35 15:30 SJC San Jose, California 327 AS 73H :10 17:08 1:58 2:27 10:35 15:00 SJC San Jose, California 327 AS :10 17:08 1:58 2:27 10:35 15:00 BOI Boise, Idaho 2231 AS DH :35 17:07 1:32 2:28 10:35 14:35 LWS Lewiston, Idaho 2218 AS DH :55 17:05 1:10 2:30 10:35 14:15 MSP Minneapolis/St. Paul, Minnesota 950 DL :20 17:03 3:43 2:32 10:35 16:50 TUS Tucson, Arizona 641 AS 73H :55 16:55 3:00 2:40 10:35 16:15 TUS Tucson, Arizona 641 AS :55 16:55 3:00 2:40 10:35 16:15 JNU Juneau, Alaska 76 AS :25 16:49 2:24 2:46 10:35 15:45 JNU Juneau, Alaska 76 AS 73H :25 16:49 2:24 2:46 10:35 15:45 FCA Kalispell/Glacier Park, Montana 2285 AS DH :10 16:47 1:37 2:48 10:35 15:00 SMF Sacramento, California 363 AS 73G :00 16:44 1:44 2:51 10:35 15:10 SMF Sacramento, California 363 AS :00 16:44 1:44 2:51 10:35 15:10 SMF Sacramento, California 363 AS 73H :00 16:44 1:44 2:51 10:35 15:10 GEG Spokane, Washington 2241 AS DH :30 16:36 1:06 2:59 10:35 14:40 HLN Helena, Montana 2326 AS DH :30 16:22 1:52 3:13 10:35 15:40 YYJ Victoria, Canada 2387 AS DH :40 16:20 0:40 3:15 10:35 14:30 PDX Portland, Oregon 2642 AS DH :30 16:19 0:49 3:16 10:35 14:40 YLW Kelowna, Canada 2479 AS DH :10 16:17 1:07 3:18 10:35 15:00 KTN Ketchikan, Alaska 62 AS :17 16:11 1:54 3:24 10:35 15:53 BOI Boise, Idaho 2133 AS DH :40 16:10 1:30 3:25 10:35 15:30 SAN San Diego, California 491 AS :25 16:09 2:44 3:26 10:35 16:45 SAN San Diego, California 491 AS 73G :25 16:09 2:44 3:26 10:35 16:45 LAX Los Angeles, California 465 AS 73G :30 16:01 2:31 3:34 10:35 16:40 LAX Los Angeles, California 465 AS :30 16:01 2:31 3:34 10:35 16:40 LAX Los Angeles, California 465 AS 73H :30 16:01 2:31 3:34 10:35 16:40 DFW Dallas/Fort Worth, Texas 661 AS :47 15:55 4:08 3:40 10:35 18:23 DFW Dallas/Fort Worth, Texas 661 AS 73G :47 15:55 4:08 3:40 10:35 18:23 Total Travel

12 Seattle to Haneda (Westbound) Connections and Elapsed s (Summer) SEA Ground DL 59 SEA-HND Flight From City Flight Number Carrier Equip Seats Operating Days Departure Arrival Inbound Flight DFW Dallas/Fort Worth, Texas 661 AS 73H :47 15:55 4:08 3:40 10:35 18:23 MSP Minneapolis/St. Paul, Minnesota 2237 DL :19 15:55 3:36 3:40 10:35 17:51 MSP Minneapolis/St. Paul, Minnesota 2237 DL :15 15:51 3:36 3:44 10:35 17:55 BLI Bellingham, Washington 2489 AS DH :10 15:50 0:40 3:45 10:35 15:00 PSC Pasco/Kennewick, Washington 2107 AS DH :00 15:50 0:50 3:45 10:35 15:10 PDX Portland, Oregon 2044 AS DH :00 15:49 0:49 3:46 10:35 15:10 ATL Atlanta, Georgia 2397 DL :31 15:46 5:15 3:49 10:35 19:39 ATL Atlanta, Georgia 2397 DL 73H :31 15:46 5:15 3:49 10:35 19:39 STS Santa Rosa, California 2476 AS DH :35 15:44 2:09 3:51 10:35 16:35 ATL Atlanta, Georgia 1589 DL :25 15:42 5:17 3:53 10:35 19:45 LAS Las Vegas, Nevada 605 AS 73H :15 15:41 2:26 3:54 10:35 16:55 ANC Anchorage, Alaska 84 AS :20 15:37 3:17 3:58 10:35 17:50 GEG Spokane, Washington 2495 AS DH :30 15:35 1:05 4:00 10:35 15:40 PUW Pullman/Moscow, Washington 2213 AS DH :25 15:35 1:10 4:00 10:35 15:45 ALW Walla Walla, Washington 2079 AS DH :30 15:27 0:57 4:08 10:35 15:40 KTN Ketchikan, Alaska 178 AS :27 15:20 1:53 4:15 10:35 16:43 PDX Portland, Oregon 2170 AS DH :30 15:19 0:49 4:16 10:35 15:40 LAX Los Angeles, California 461 AS 73G :35 15:05 2:30 4:30 10:35 17:35 LAX Los Angeles, California 461 AS :35 15:05 2:30 4:30 10:35 17:35 SLC Salt Lake City, Utah 1457 DL :52 14:58 2:06 4:37 10:35 17:18 SFO San Francisco, California 305 AS 73G :00 14:57 1:57 4:38 10:35 17:10 SFO San Francisco, California 305 AS :00 14:57 1:57 4:38 10:35 17:10 OAK Oakland, California 349 AS 73H :00 14:54 1:54 4:41 10:35 17:10 SLC Salt Lake City, Utah 2038 DL M :45 14:52 2:07 4:43 10:35 17:25 SLC Salt Lake City, Utah 2038 DL :45 14:51 2:06 4:44 10:35 17:25 GEG Spokane, Washington 691 AS 73G :45 14:45 1:00 4:50 10:35 16:25 GEG Spokane, Washington 691 AS 73H :45 14:45 1:00 4:50 10:35 16:25 MSP Minneapolis/St. Paul, Minnesota 37 AS 73H :05 14:43 3:38 4:52 10:35 19:05 MSP Minneapolis/St. Paul, Minnesota 37 AS 73G :05 14:43 3:38 4:52 10:35 19:05 RNO Reno/Tahoe, Nevada 2258 AS DH :37 14:41 2:04 4:54 10:35 17:33 Total Travel

13 Seattle to Haneda (Westbound) Connections and Elapsed s (Summer) SEA Ground DL 59 SEA-HND Flight From City Flight Number Carrier Equip Seats Operating Days Departure Arrival Inbound Flight SNA Orange County, California 503 AS 73G :00 14:35 2:35 5:00 10:35 18:10 YVR Vancouver, Canada 2409 AS DH :40 14:34 0:54 5:01 10:35 16:30 YEG Edmonton, Canada 2543 AS DH :23 14:29 2:06 5:06 10:35 17:47 ANC Anchorage, Alaska 96 AS :00 14:27 3:27 5:08 10:35 19:10 ANC Anchorage, Alaska 96 AS :00 14:27 3:27 5:08 10:35 19:10 ANC Anchorage, Alaska 96 AS 73H :00 14:27 3:27 5:08 10:35 19:10 PDX Portland, Oregon 2068 AS DH :30 14:20 0:50 5:15 10:35 16:40 SAN San Diego, California 483 AS 73H :30 14:14 2:44 5:21 10:35 18:40 PHX Phoenix, Arizona 645 AS 73G :22 14:10 2:48 5:25 10:35 18:48 SJC San Jose, California 325 AS 73H :00 13:57 1:57 5:38 10:35 18:10 ANC Anchorage, Alaska 82 AS :30 13:56 3:26 5:39 10:35 19:40 ANC Anchorage, Alaska 82 AS :30 13:56 3:26 5:39 10:35 19:40 DTW Detroit, Michigan 2249 DL :02 13:54 4:52 5:41 10:35 21:08 DTW Detroit, Michigan 2249 DL 73H :01 13:53 4:52 5:42 10:35 21:09 DEN Denver, Colorado 679 AS 73G :00 13:48 2:48 5:47 10:35 19:10 DEN Denver, Colorado 679 AS 73H :00 13:48 2:48 5:47 10:35 19:10 DEN Denver, Colorado 679 AS :00 13:48 2:48 5:47 10:35 19:10 BUR Burbank, California 529 AS 73H :15 13:44 2:29 5:51 10:35 18:55 BUR Burbank, California 529 AS 73G :15 13:44 2:29 5:51 10:35 18:55 BLI Bellingham, Washington 2487 AS DH :58 13:39 0:41 5:56 10:35 17:12 GEG Spokane, Washington 2331 AS DH :30 13:37 1:07 5:58 10:35 17:40 MFR Medford, Oregon 2428 AS DH :15 13:37 1:22 5:58 10:35 17:55 Total Travel

14 Haneda to Seattle (Eastbound) Connections and Elapsed s (Summer) SEA Ground DL 58 HND-SEA Flight To City Flight Number Carrier Equip Seats Operating Days Departure Arrival Outbound Flight SLC Salt Lake City, Utah 2150 DL :04 21:00 1:56 1:04 9:00 12:00 SLC Salt Lake City, Utah 2150 DL :05 21:00 1:55 1:05 9:00 12:00 SNA Orange County, California 516 AS 73G :25 21:04 2:39 1:25 9:00 13:04 BUR Burbank, California 524 AS 73H :35 21:02 2:27 1:35 9:00 13:02 BUR Burbank, California 524 AS 73G :35 21:02 2:27 1:35 9:00 13:02 LAX Los Angeles, California 474 AS :40 21:20 2:40 1:40 9:00 13:20 LAX Los Angeles, California 474 AS 73G :40 21:20 2:40 1:40 9:00 13:20 LAS Las Vegas, Nevada 618 AS 73H :45 21:08 2:23 1:45 9:00 13:08 LAS Las Vegas, Nevada 618 AS :45 21:08 2:23 1:45 9:00 13:08 SAN San Diego, California 498 AS 73H :45 21:27 2:42 1:45 9:00 13:27 SAN San Diego, California 498 AS 73G :45 21:27 2:42 1:45 9:00 13:27 SAN San Diego, California 498 AS :45 21:27 2:42 1:45 9:00 13:27 YYJ Victoria, Canada 2388 AS DH :45 19:28 0:43 1:45 9:00 11:28 MSP Minneapolis/St. Paul, Minnesota 2320 DL :47 23:59 3:12 1:47 9:00 13:59 BOI Boise, Idaho 2368 AS DH :50 21:18 1:28 1:50 9:00 12:18 KTN Ketchikan, Alaska 69 AS :52 19:52 2:00 1:52 9:00 12:52 GEG Spokane, Washington 2270 AS DH :00 19:59 0:59 2:00 9:00 11:59 PDX Portland, Oregon 2047 AS DH :00 19:49 0:49 2:00 9:00 11:49 PUW Pullman/Moscow, Washington 2220 AS DH :10 20:13 1:03 2:10 9:00 12:13 ANC Anchorage, Alaska 109 AS 73H :15 21:49 3:34 2:15 9:00 14:49 ANC Anchorage, Alaska 109 AS :15 21:49 3:34 2:15 9:00 14:49 ANC Anchorage, Alaska 109 AS :15 21:49 3:34 2:15 9:00 14:49 PSC Pasco/Kennewick, Washington 2110 AS DH :15 20:04 0:49 2:15 9:00 12:04 PHX Phoenix, Arizona 642 AS 73G :20 22:10 2:50 2:20 9:00 14:10 PHX Phoenix, Arizona 642 AS 73H :20 22:10 2:50 2:20 9:00 14:10 PDX Portland, Oregon 2627 AS DH :30 20:19 0:49 2:30 9:00 12:19 SJC San Jose, California 330 AS 73H :40 21:42 2:02 2:40 9:00 13:42 SJC San Jose, California 226 AS 73H :40 21:42 2:02 2:40 9:00 13:42 SNA Orange County, California 518 AS 73G :42 22:19 2:37 2:42 9:00 14:19 ANC Anchorage, Alaska 115 AS 73H :45 22:19 3:34 2:45 9:00 15:19 Total Travel

15 Haneda to Seattle (Eastbound) Connections and Elapsed s (Summer) SEA Ground DL 58 HND-SEA Flight To City Flight Number Carrier Equip Seats Operating Days Departure Arrival Outbound Flight ANC Anchorage, Alaska 115 AS :45 22:19 3:34 2:45 9:00 15:19 BLI Bellingham, Washington 2492 AS DH :50 20:30 0:40 2:50 9:00 12:30 ALW Walla Walla, Washington 2086 AS DH :55 20:49 0:54 2:55 9:00 12:49 FAI Fairbanks, Alaska 129 AS 73H :55 22:38 3:43 2:55 9:00 15:38 FAI Fairbanks, Alaska 129 AS :55 22:38 3:43 2:55 9:00 15:38 SMF Sacramento, California 228 AS 73H :55 21:37 1:42 2:55 9:00 13:37 SMF Sacramento, California 372 AS 73H :55 21:37 1:42 2:55 9:00 13:37 GEG Spokane, Washington 694 AS :00 20:57 0:57 3:00 9:00 12:57 PDX Portland, Oregon 2045 AS DH :00 20:48 0:48 3:00 9:00 12:48 ANC Anchorage, Alaska 107 AS 73H :15 22:48 3:33 3:15 9:00 15:48 JNU Juneau, Alaska 79 AS :15 21:49 2:34 3:15 9:00 14:49 JNU Juneau, Alaska 79 AS :15 21:49 2:34 3:15 9:00 14:49 JNU Juneau, Alaska 79 AS 73H :15 21:49 2:34 3:15 9:00 14:49 BZN Bozeman, Montana 2462 AS DH :20 23:04 1:44 3:20 9:00 14:04 GTF Great Falls, Montana 2324 AS DH :25 23:05 1:40 3:25 9:00 14:05 LAX Los Angeles, California 450 AS :30 23:11 2:41 3:30 9:00 15:11 LAX Los Angeles, California 450 AS 73H :30 23:11 2:41 3:30 9:00 15:11 PDX Portland, Oregon 2055 AS DH :30 21:18 0:48 3:30 9:00 13:18 OAK Oakland, California 354 AS 73H :40 22:41 2:01 3:40 9:00 14:41 YEG Edmonton, Canada 2580 AS DH :40 23:33 1:53 3:40 9:00 14:33 YYC Calgary, Canada 2114 AS DH :40 23:21 1:41 3:40 9:00 14:21 BIL Billings, Montana 2302 AS DH :45 23:48 2:03 3:45 9:00 14:48 ONT Ontario, California 536 AS 73H :45 23:19 2:34 3:45 9:00 15:19 ONT Ontario, California 536 AS :45 23:19 2:34 3:45 9:00 15:19 SAN San Diego, California 484 AS :45 23:27 2:42 3:45 9:00 15:27 SAN San Diego, California 484 AS 73G :45 23:27 2:42 3:45 9:00 15:27 SFO San Francisco, California 300 AS 73H :50 22:54 2:04 3:50 9:00 14:54 SFO San Francisco, California 300 AS 73G :50 22:54 2:04 3:50 9:00 14:54 ANC Anchorage, Alaska 731 AS :55 23:30 3:35 3:55 9:00 16:30 GEG Spokane, Washington 2138 AS DH :00 21:57 0:57 4:00 9:00 13:57 YVR Vancouver, Canada 2264 AS DH :00 21:52 0:52 4:00 9:00 13:52 Total Travel

16 Haneda to Seattle (Eastbound) Connections and Elapsed s (Summer) SEA Ground DL 58 HND-SEA Flight To City Flight Number Carrier Equip Seats Operating Days Departure Arrival Outbound Flight LAX Los Angeles, California 462 AS 73G :15 23:59 2:44 4:15 9:00 15:59 LAX Los Angeles, California 462 AS 73H :15 23:59 2:44 4:15 9:00 15:59 LAS Las Vegas, Nevada 614 AS :20 23:44 2:24 4:20 9:00 15:44 LAS Las Vegas, Nevada 614 AS 73H :20 23:44 2:24 4:20 9:00 15:44 YLW Kelowna, Canada 2430 AS DH :20 22:20 1:00 4:20 9:00 14:20 ANC Anchorage, Alaska 103 AS 73H :30 0:05 3:35 4:30 9:00 17:05 ANC Anchorage, Alaska 103 AS :30 0:05 3:35 4:30 9:00 17:05 PDX Portland, Oregon 2135 AS DH :30 22:17 0:47 4:30 9:00 14:17 BOI Boise, Idaho 2268 AS DH :35 23:59 1:24 4:35 9:00 14:59 FCA Kalispell/Glacier Park, Montana 2288 AS DH :35 23:57 1:22 4:35 9:00 14:57 MSO Missoula, Montana 2340 AS DH :35 23:56 1:21 4:35 9:00 14:56 FAI Fairbanks, Alaska 127 AS 73G :40 0:19 3:39 4:40 9:00 17:19 MCO Orlando, Florida 10 AS 73H :45 6:09 5:24 4:45 9:00 19:09 FLL Fort Lauderdale, Florida 28 AS 73H :10 6:55 5:45 5:10 9:00 19:55 PUW Pullman/Moscow, Washington 2214 AS DH :16 23:17 1:01 5:16 9:00 15:17 ANC Anchorage, Alaska 111 AS :30 1:04 3:34 5:30 9:00 18:04 BOS Boston, Massachusetts 24 AS 73H :35 6:45 5:10 5:35 9:00 19:45 MFR Medford, Oregon 2461 AS DH :40 23:59 1:19 5:40 9:00 15:59 ATL Atlanta, Georgia 2188 DL :40 6:16 4:36 5:40 9:00 19:16 ATL Atlanta, Georgia 2188 DL :40 6:16 4:36 5:40 9:00 19:16 RDM Redmond/Bend, Oregon 2297 AS DH :45 23:45 1:00 5:45 9:00 15:45 ATL Atlanta, Georgia 2188 DL :45 6:21 4:36 5:45 9:00 19:21 FAI Fairbanks, Alaska 125 AS 73G :55 1:42 3:47 5:55 9:00 18:42 FAI Fairbanks, Alaska 125 AS :55 1:42 3:47 5:55 9:00 18:42 FAI Fairbanks, Alaska 125 AS 73H :55 1:42 3:47 5:55 9:00 18:42 EUG Eugene, Oregon 2281 AS DH :00 23:59 0:59 6:00 9:00 15:59 GEG Spokane, Washington 698 AS :00 23:59 0:59 6:00 9:00 15:59 PDX Portland, Oregon 2175 AS DH :00 23:46 0:46 6:00 9:00 15:46 DTW Detroit, Michigan 1823 DL :00 6:05 4:05 6:00 9:00 19:05 DTW Detroit, Michigan 2410 DL 73H :00 6:06 4:06 6:00 9:00 19:06 Total Travel

17 DOT-OST Exhibit AA-R-102 Page 1 of 1 DELTA HAS A FAR LARGER PRESENCE AT DETROIT THAN AT SEATTLE, YET FAILED TO SUSTAIN HANEDA SERVICE AT ITS LARGER DETROIT HUB DELTA OPERATED FLIGHTS AT SEATTLE DETROIT ATL ATL MCO CVG BDL MEM DTW BNA MIA JFK BOS MKE MSP BWI MSN SLC CLT MSP DCA MSY DEN ORD DFW PDX EWR PHL FLL PHX GRR RDU IND RSW JAX SAN JFK SEA LAS SFO LAX SLC LGA STL MCI TPA Source: OAG August 2012

18 DOT-OST Exhibit AA-R-103 Page 1 of 1 600,000 SEATTLE IS THE SMALLEST MAINLAND - TOKYO MARKET PROPOSED 500, ,000 Annual Bookings 300, , ,000 0 LAX SFO SEA Source: YE July 2012 Unadjusted MIDT Bookings

19 DOT-OST Exhibit AA-R-104 Page 1 of 1 CHICAGO AND LAS VEGAS ARE BOTH LARGER THAN SEATTLE AND LACK NONSTOP SERVICE TO HANEDA Annual U.S. Gateways Japan Bookings Haneda Service LAX Los Angeles, CA Tokyo 481,518 Yes NYC New York, NY Tokyo 348,706 Yes SFO San Francisco, CA Tokyo 241,105 Yes ORD Chicago, IL Tokyo 88,251 No LAS Las Vegas, NV Tokyo 84,812 No SEA Seattle, WA Tokyo 82,596 No IAD Washington (Dulles) Tokyo 63,141 No BOS Boston,MA Tokyo 60,957 No MCO Orlando, FL Tokyo 49,410 No PDX Portland, OR Tokyo 36,041 No Delta erroneously claims that "Seattle is the largest U.S.-Tokyo O&D market without Haneda service." (DL appl. p.3) Source: OAG August 2012 YE July 2012 MIDT Unadjusted Bookings

20 DOT-OST Exhibit AA-R-105 Page 1 of 1 DELTA HAS PROPOSED THE SMALLEST CAPACITY AIRCRAFT Seats Delta American United Hawaiian Source: Applicants Exhibits

21 DOT-OST Exhibit AA-R-106 Page 1 of 1 STAR ALLIANCE OPERATIONS TO JAPAN U.S. GATEWAY JAPAN POINT OPERATOR EWR NRT UA GUM CTS UA GUM FUK UA GUM HIJ UA GUM KIJ UA GUM NGO UA GUM NRT UA GUM OKA UA GUM OKJ UA GUM SDJ UA GUM KIX UA HNL NRT UA IAD NRT UA IAH NRT UA LAX NRT UA ORD NRT UA SEA NRT UA SFO NRT UA SFO KIX UA IAD NRT NH JFK NRT NH LAX HND NH LAX NRT NH ORD NRT NH SEA NRT NH SFO NRT NH HNL HND NH HNL NRT NH LAX NRT SQ Source: OAG August 2012

22 DOT-OST Exhibit AA-R-107 Page 1 of 1 ONEWORLD OPERATIONS TO JAPAN U.S. GATEWAY JAPAN POINT OPERATOR DFW NRT AA JFK HND AA LAX NRT AA ORD NRT AA BOS NRT JL GUM NRT JL HNL HND JL HNL NGO JL HNL NRT JL HNL KIX JL JFK NRT JL LAX NRT JL ORD NRT JL SFO HND JL Source: OAG August 2012

23 DOT-OST Exhibit AA-R-108 Page 1 of 1 STAR ALLIANCE OPERATES THE MOST WEEKLY U.S. - JAPAN NONSTOP FREQUENCIES Other 23 oneworld 118 Sky 195 Star 210 Source: OAG August 2012

24 STAR HAS THE LARGEST U.S. - JAPAN WEEKLY SEAT SHARE AMONG THE GLOBAL ALLIANCES DOT-OST Exhibit AA-R-109 Page 1 of 1 STAR 53,895 (37%) oneworld 33,429 (23%) Other 6,309 (4%) Sky 50,699 (35%) Source: OAG August 2012

25 DOT-OST Exhibit AA-R-110 Page 1 of 1 AMONG THE GLOBAL ALLIANCES, ONEWORLD HAS THE SMALLEST SHARE OF U.S. - TOKYO BOOKINGS BOOKINGS Alliance Total Share oneworld 912,510 28% Sky 1,155,992 35% Star 1,037,316 32% Other 186,058 6% TOTAL 3,291,876 Source: YE July 2012 MIDT Unadjusted Bookings

26 DOT-OST Exhibit AA-R-111 Page 1 of 1 3 HAWAII ALREADY ENJOYS 3 OF THE 8 U.S. - HANEDA FREQUENCIES HA 2 JL NH 1 DL DL AA JL NH 0 DTW LAX JFK SFO HNL Source: OAG August 2012

27 IF HAWAIIAN S KONA APPLICATION IS GRANTED 50% OF U.S. CARRIER HANEDA OPPORTUNITIES WOULD BE USED AT A HAWAII GATEWAY DOT-OST Exhibit AA-R-112 Page 1 of Hawaii LAX JFK Source: OAG August 2012 and Applicant s Filing

28 DOT-OST Exhibit AA-R-113 Page 1 of 1 DESTINATIONS IN HAWAII ACCOUNT FOR 36% OF U.S. - TOKYO MARKET BOOKINGS SHARE Hawaii 1,201,419 36% US mainland 2,084,212 63% US 3,291,876 Source: YE July 2012 MIDT Unadjusted Bookings

29 DOT-OST Exhibit AA-R-114 Page 1 of 1 IN THE HAWAII - TOKYO MARKET THE OVERWHELMING MAJORITY OF THE TRAFFIC IS JAPAN ORIGINATING US POINT OF ORIGIN: 6% JAPAN POINT OF ORIGIN: 94% Source: YE July 2012 MIDT Unadjusted Bookings

30 DOT-OST Exhibit AA-R-115 Page 1 of 1 HAWAIIAN WOULD OFFER BEHIND GATEWAY ONLINE CONNECTIONS TO ONLY 2 DESTINATIONS Source: OAG August 2012

31 CERTIFICATE OF SERVICE I hereby certify that I have this day served the foregoing document by on the following persons: sascha.vanderbellen@delta.com scott.mcclain@delta.com sametta.c.barnett@delta.com dan.weiss@united.com rbkeiner@crowell.com esahr@eckertseamons.com russell.bailey@alpa.org jonathan.linde@united.com bob.kneisley@wnco.com robert.land@jetblue.com msinick@ssd.com cdonley@ssd.com gbleopard@fedex.com cefelts@fedex.com kevin.montgomery@polaraircargo.com nssparks@fedex.com lhalloway@crowell.com efaberman@wileyrein.com mroller@rollerbauer.com jennifer.nowak@hklaw.com jhill@dlalaw.com steve.morrissey@united.com mgoldman@sgbdc.com rsilverberg@sgbdc.com dhainbach@ggh-airlaw.com rpommer@atlasair.com dmrosenthal@jamhoff.com dpdean@jamhoff.com dkirstein@yklaw.com jyoung@yklaw.com william.stallings@usdoj.gov dwight.moore@ustranscom.mil john.allen@faa.gov urskr@state.gov gmurphy@crowell.com cjsimpson@zsrlaw.com benjamin.slocum@usairways.com howard.kass@usairways.com anita.mosner@hklaw.com Francis C. Heil September 6, 2012