BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. ) ) ) ) )

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1 BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of DELTA AIR LINES, INC. for an exemption and frequency allocation (New York Buenos Aires Docket OST ANSWER OF THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY IN SUPPORT OF APPLICATION OF DELTA AIR LINES, INC. FOR AN EXEMPTION AND FREQUENCY ALLOCATION Communications with respect to this document should be addressed to: Mr. William DeCota Director Aviation Department Mr. Bradley Rubinstein Manager Industry and Regulatory Relations address: Telephone: ( Ms. Carlene McIntyre Chief, Opinions and Appeals Division 225 Park Avenue south, 13 th Floor address: Telephone: ( May 6, 2005

LINES, INC. FOR AN EXEMPTION AND FREQUENCY ALLOCATION Communications with respect to this document should be addressed to: Mr. William DeCota Director Aviation Department Mr.

2 BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of DELTA AIR LINES, INC. for an exemption and frequency allocation (New York Buenos Aires Docket OST ANSWER OF THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY IN SUPPORT OF APPLICATION OF DELTA AIR LINES, INC. FOR AN EXEMPTION AND FREQUENCY ALLOCATION The ( Port Authority enthusiastically supports the Application of Delta Air Lines, Inc. ( Delta for an exemption and frequency allocation to commence daily nonstop service between John F. Kennedy International Airport (JFK and Buenos Aires, Argentina. New York is the largest metropolitan area in the United States in terms of population, and also ranks at the top of the list in key demographic categories including income, number of business establishments, and propensity for travel. New York is the business and finance capital of the United States, and generates large amounts of international traffic to and from points around the globe. Among U.S. cities, New York ranks second only to Miami in number of Buenos Aires O&D passengers. Delta s proposal would utilize United s dormant JFK-Buenos Aires frequencies to restore competitive U.S. flag service at the JFK gateway. New York had long supported double daily Buenos Aires service by two U.S. carriers (in addition to

FOR AN EXEMPTION AND FREQUENCY ALLOCATION The ( Port Authority enthusiastically supports the Application of Delta Air Lines, Inc.

3 Answer of The Page 2 foreign-flag service prior to United s withdrawal from the market in With the recovery of the Argentine economy, as well as international air travel in general, the time is clearly ripe for the return of competitive U.S. flag service on the New York-Buenos Aires route. The Port Authority firmly believes that the seven frequencies at issue, which have historically been committed to New York Buenos Aires service, should remain dedicated for service by a U.S. carrier at the critically important New York gateway. Indeed, the Department previously found that the strong demand for Buenos Aires service in the New York metropolitan area justified the selection of a third U.S. carrier to provide service to our region. See Order ; Order Under no circumstances should New York now be left with fewer than two nonstop U.S.- flag carriers. Delta has proposed to utilize seven frequencies at JFK, which would be fully consistent with the longstanding public interest use of those frequencies. JFK is one of the premier international gateways in the United States. The Port Authority, its airlines, and business partners have invested and are investing more than $10 billion at the airport to improve its infrastructure, terminals, cargo facilities, access, and customer service. This investment was predicated on the ability of the airport to continue its role as the premier gateway for international traffic, and in the ability of the airlines to continue expanding their route networks at John F. Kennedy International Airport. The Port Authority notes that Delta Air Lines is obligated to invest millions in

The Port Authority firmly believes that the seven frequencies at issue, which have historically been committed to New York Buenos Aires service, should remain dedicated for service by a U.S.

4 Answer of The Page 3 upgrading its current facilities at JFK, and these investments are sustained by expanding Delta's network to include additional international destinations, such as Buenos Aires. Delta proposes to commence service on December 1, Since at least one other carrier has expressed an interest in using the frequencies, it is vital that the Department promptly conclude any necessary carrier selection proceedings. For the reasons set forth above, the Port Authority submits that authorizing Delta to restore the seven frequencies at issue to their longstanding use on the JFK-Buenos Aires route is the best public interest choice. Respectfully submitted, Bradley Rubinstein Manager Industry and Regulatory Relations

Since at least one other carrier has expressed an interest in using the frequencies, it is vital that the Department promptly conclude any necessary carrier selection proceedings.

5 CERTIFICATE OF SERVICE I hereby certify that the foregoing Answer of The Port Authority of New York and New Jersey in Support of Application of Delta Air Lines, Inc. has been served by this 6th day of May, 2005, upon each of the following persons: carl.nelson@aa.com sascha.vanderbellen@hhlaw.com rbkeiner@crowell.com nssparks@fedex.com dvaughan@kelleydrye.com bruce.rabinovitz@wilmerhale.com jeffrey.manley@wilmerhale.com fbavent@airlineinfo.com Bradley Rubinstein

has been served by e-mail this 6th day of May, 2005, upon each of the following persons: carl.nelson@aa.com sascha.

BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of MN Airlines, LLC d/b/a SUN COUNTRY AIRLINES for exemptions from 14 C.F.R. Part 93, Subparts K and S, pursuant to 49 U.S.C. 41718