American Airlines : Full Application

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APPLICATION, TESTIMONY, AND DIRECT EXHIBITS OF AMERICAN AIRLINES‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌

2016 U.S.-Haneda Combination Services Allocation Proceeding

Docket DOT-OST-2016-0048

April 21, 2016

Tokyo Haneda‌‌‌ Los Angeles Dallas/Fort Worth

CONTENTS

Application of American Airlines, Inc.

Testimony of Andrew P. Nocella, Senior Vice President and Chief Marketing Officer Direct Exhibits

• Series 100: American's Proposed U.S.-Haneda Service

• Series 200: American's Active (and Constructive) Involvement in Support of U.S.- Japan Aviation Liberalization

• Series 300: Overview of U.S.-Japan and U.S.-Tokyo Markets

• Series 400: U.S. Carrier Services at Haneda

• Series 500: Increasing Its Presence in Northeast Asia is American's Top Priority

• Series 600: American's Proposed LAX-HND Service

• Series 700: American's Proposed DFW-HND Service

• Series 800: Demographics

• Series 900: American's Haneda Product Appendix A: LAX-HND Connecting Schedules Appendix B: DFW-HND Connecting Schedules

BEFORE THE

U.S. DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

)

Application of )

)

AMERICAN AIRLINES, INC. )

) Docket DOT-OST-2016-0048

in the matter of 2016 U.S.-Haneda )

Combination Services Allocation )

Proceeding )

)

APPLICATION OF AMERICAN AIRLINES, INC.

Communications with respect to this document should be addressed to:

Howard Kass Vice President Regulatory Affairs Robert A. Wirick Managing Director Regulatory and International Affairs John B. Williams Senior Analyst Regulatory and International Affairs AMERICAN AIRLINES, INC. 1101 17th Street, NW Washington, D.C. 20036 (202) 326-5153 howard.kass@aa.com robert.wirick@aa.com john.b.williams@aa.com April 21, 2016

Paul T. Denis Steven G. Bradbury William B. Sohn DECHERT LLP 1900 K Street NW Washington, D.C. 20006 (202) 261-3300 paul.denis@dechert.com steven.bradbury@dechert.com william.sohn@dechert.com

TABLE OF CONTENTS

Executive Summary 2

Background 3

Discussion 5

1. American's Proposed Frequencies Maximize Public Benefits by Broadening

   Access to Tokyo from Critical U.S. Gateways and Enhancing Competition 5

2. American's Successful LAX-HND Service Creates Vibrant Competition in the Largest Mainland Region for U.S.-Japan Travel, and Enables American to Grow Its West Coast Gateway to Asia and Increase

   Competition Against Delta and United in Transpacific Service 7

3. DFW Is the Ideal Central U.S. Gateway to Haneda Due to Its Robust Local and Connecting U.S.-Japan Traffic, the Growth of Japanese Businesses in Dallas/Fort Worth, and American's Ability to Increase U.S.-Japan

   Competition 10

4. The Department Should Use this Proceeding to Inject New Transpacific Competition by Granting American's Proposed Frequencies to Haneda 13

5. American Must Grow at Haneda to Help Overcome Historical Imbalances

   in Japan and Northeast Asia Service 13

6. The Department's Goal of Enhancing Competition Compels the Award of

   Two Daytime Haneda Slot-Pairs to American 17

7. The Goal of Maximizing Public Benefits Requires that the New Haneda Slots Be Awarded Only to Airlines Committed to Expanding U.S. Access to

8. Haneda 19

   Conclusion 21