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American Airlines, Inc.; U.S.- Japan Combination Frequencies

American Airlines, Inc. hereby applies for the allocation of three additional weekly U.S.-Japan combination frequencies from the unallocated pool. American will use these frequencies to increase its nonstop service in the Dallas/Ft. Worth-Tokyo market from seven to 10 weekly roundtrips, effec­tive June 1, 2002.

Counsel:  American, Carl Nelson, 202.496.5647, carl_nelson@aa.com

American Airlines, Inc.; U.S.- Japan Combination Frequencies

Although American has announced the institution of daily nonstop New York/Newark-Tokyo service effective April 19, 2002, American continues to hold at least seven unused frequencies which were awarded to it for Boston-Tokyo service it has never instituted, as well as frequencies it holds for Seattle-Tokyo and Dallas/Ft. Worth-Osaka service it has discontinued. Continental would not object to the use of three of American’s current Japan frequencies for Dallas/Ft. Worth-Tokyo service.

So long as American holds dormant frequencies, it should use those frequencies for the new Dallas/Ft. Worth-Tokyo services it proposes rather than being awarded frequencies which have been returned to the Department by other airlines.  American should not preempt other potential new U.S.-Tokyo services by seeking additional frequencies from the limited pool otherwise available and holding onto frequencies it is not using.  The Department should reserve the frequencies in the pool until each airline holding Japan frequencies has used its own dormant frequencies.

Counsel:  Crowell Morning, Bruce Keiner, 202.624.2615, rbkeiner@cromor.com

There is no need or public interest rationale for American to seek a further allocation of frequencies "from the unallocated pool" (AA at 1),when American already has more than enough Japan frequencies at its disposal to operate its proposed additional DFW-Tokyo flights.  On the other hand, Delta would have no objection if American were to notify the Department of American’s intent to shift any of its previously-allocated frequencies to the DFW-Tokyo route.As stated by Delta in such a Notice filing in Docket OST-2000-7904, this type of frequency transfer “will better enable [American] to maximize the public benefits attainable from its existing U.S.-Japan authority.”

American and its now-acquired TWA entity were allocated 36 frequencies in the 1998 Japan Service Proceeding for routes including:

• 7 for Chicago-Tokyo

• 7 for JFK-Tokyo

• 7 for Boston-Tokyo

• 7 for DFW-Osaka

• 7 for St. Louis-Tokyo (TWA)

• 1 for San Jose-Tokyo 

Counsel:  Shaw Pittman, Alexander Van der Bellen, 202.663.8060

American Airlines, Inc.; U.S.- Japan Combination Frequencies

Delta notes that as of April 19, 2002, American will operate daily service between JFK and Tokyo, rather than three weekly flights as indicated in Delta's filing yesterday. In any event, the slight change in American's Japan frequency utilization does not alter the fact that American continues to hold numerous dormant and unused frequencies, which are more than sufficient to fund its three proposed DFW -Tokyo flights.

Counsel:  Shaw Pittman, Alexander Van der Bellen, 202.663.8060

American Airlines, Inc.

American is seeking three U.S.-Japan frequencies from the unallocated pool in order to add service between Dallas/Ft. Worth and Tokyo. Continental and Delta have no objection to American's increased service, but urge that the needed frequencies be funded not from the unallocated pool, but from Ameri­can's other U.S.-Japan frequencies that are now dormant.

American believes that the three frequencies it has requested should come from the unallocated pool. Continental and Delta -- which both hold a number of dormant U.S.-Japan frequencies themselves -- have presented no plans of their own to expand service to Tokyo. Indeed, Delta has greatly re­trenched its presence in Japan, and currently operates only a single daily flight (from Atlanta). Nonetheless, the two carriers say that American should strip dormant frequencies from other routes and gateways rather secure an award from the unallocated pool.

Counsel:  American, Carl Nelson, 202.496.5647, carl_nelson@aa.com

American Airlines, Inc.

American initially sought the allocation of three additional U.S.-Japan combination frequencies to operate between Dallas/Ft. Worth and Tokyo. By this amendment, American seeks the allocation of one further frequency, for a total of four. American will begin service using these four frequencies on June 1, 2002.

American asks that all four frequencies be awarded from the unallocated pool. However, as we stated in our reply of February 19, 2002 to Continental Airlines, Inc. and Delta Air Lines, Inc., if the Department requires American to shift dormant frequencies from another route, frequencies that American holds for Dallas/Ft. Worth-Osaka service should be reallocated for service between Dallas/Ft. Worth and Tokyo.

Counsel:  American, Carl Nelson, 202.496.5647, carl.nelson@aa.com

American Airlines, Inc.

American is now requesting the allocation of one further frequency to provide a total of four additional weekly flights between Dallas/Ft. Worth and Tokyo, Japan. As Continental noted in its answer to American's original request for three U.S.-Japan frequencies, American continues to hold at least seven unused frequencies awarded to it for Boston-Tokyo service, as well as unused frequencies allocated to it for Seattle-Tokyo and Dallas/Ft. Worth-Osaka service. Continental has no objection to the use of four of the Japan frequencies already held by American for Dallas/Ft. Worth-Tokyo service.

Counsel:  Continental and Crowell Moring, Bruce Keiner, 202-624-2615, rbkeiner@crowell.com

American Airlines, Inc.

American states that currently there are unallocated frequencies for services between the United States and Japan. American states that the additional frequencies it seeks here will offer important new capacity for passengers and shippers in the Dallas/Ft. Worth market and that American's increased service will also fulfill the Department's expectation that the 1998 U.S.-Japan Memorandum of Understanding will provide public benefits such as improved service and enhanced competition in the U.S.-Japan market. 

Continental Airlines and Delta Air Lines filed answers opposing the allocation of additional frequencies until American has used all its currently allocated U.S. Japan frequencies. They note that American continues to hold frequencies in several markets that it is currently not using and that they would not object to the transfer of some of these frequencies for American's expanded Dallas/Ft. Worth-Tokyo service. Continental argues that American should not preempt other potential new U.S.-Tokyo services by seeking additional frequencies from the limited pool of unallocated flights, while holding onto frequencies it is not using. Delta argues that no carrier has been denied the opportunity to compete in the Japan market and thus, there is no need to disturb any of the existing frequency allocations of other carriers, allocations that add certainty to route planning decisions. 

In its reply, American maintains that the four frequencies it has requested should come from the unallocated pool. It states that Continental and Delta have presented no plans to expand service to Tokyo but nevertheless contend that American should strip dormant frequencies from other routes to expand its Tokyo operations. However, if the Department should require American to shift dormant frequencies from another route, American seeks approval to transfer four of its dormant frequencies for Dallas/Ft. Worth-Osaka service to the Dallas/Ft. Worth-Tokyo market.

• Approved transfer of four weekly frequencies currently held by American for service between Dallas/Ft. Worth and Osaka to provide Dallas/Ft. Worth-Tokyo service
• Dismissed request for the allocation of four weekly frequencies

Taking into account our longstanding policies in favor of promoting use of allocated frequencies, we found, in the circumstances presented, that the public interest would be better served in this case by authorizing American to transfer these previously allocated but now unused frequencies from the Dallas/Ft. Worth-Osaka route rather than awarding a new allocation to accommodate its request here.

By:  Paul Gretch

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