American Airlines 2009 Annual Report Download - page 9

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Airport Access Historically, the FAA designated John F. Kennedy International (JFK) Airport, La Guardia (LGA)
Airport and Washington Reagan airports as high-density traffic airports. The high-density rule limited the number
of Instrument Flight Rule operations - take-offs and landings - permitted per hour and required that a ―take-
off/landing slot right‖ support each operation. The high density rule was repealed for JFK and LGA; however,
both airports remain subject to operating restrictions.
In order to remedy congestion at LGA due to elimination of slot restrictions, in 2007 the FAA placed caps on total
operations and required carriers at LGA to hold operating authorizations. In January 2009, the FAA announced a
voluntary program at LGA aimed at reducing hourly scheduled operations at LGA from 75 to 71, which is
expected to help ease congestion and delay without materially affecting carrier operations.
In December 2007, DOT reached an agreement with domestic airlines to ease congestion at JFK by shifting the
timing of certain flights. Such re-timing has not had a significant impact on the Company’s flights to or from JFK.
In late 2008, the FAA issued new rules for carriers operating at LGA, JFK and Newark that would have
fundamentally changed the manner in which operating authorizations are held and distributed at those airports.
Every departure and landing would have required an authorization and existing carriers would have been
requested to reduce service to provide authorizations for auction to other carriers without increasing total airport
operations. The Company, along with numerous other carriers and interested parties, opposed adoption of these
rules. Immediately after the rules were issued, the Air Transport Association (ATA) and others petitioned for
judicial review in the U.S. Court of Appeals for the District of Columbia Circuit challenging the rules and seeking a
stay (preliminary injunction) against their implementation. The court granted the stay motion, thus blocking the
rules from taking effect, pending the court’s ultimate decision on the merits. In May of 2009, the FAA withdrew its
proposal of these rules at these airports. Any future proposals that could require the Company to alter the routes
and services it currently operates at LGA, JFK and Newark could have potentially material adverse effects on the
Company.
In 2006, the FAA issued an order requiring that carriers hold arrival authorizations to land during certain hours at
Chicago O’Hare. That order limits the purchase or sale of arrival authorizations. The Company has not
experienced any significant adverse impact from this order.
The high-density rule remains in effect at Washington Reagan. Legislation has been introduced to abolish the
perimeter rule at that airport, which (with exceptions) limits nonstop flights to a distance of 1,250 miles. Some
foreign airports, including London Heathrow and Tokyo Narita, major destinations for American, also require slot
allocations.
Although the Company is constrained by slots, it currently has sufficient slot authorizations to operate its existing
flights. However, there is no assurance that the Company will be able to retain or obtain slots in the future to
expand its operations or change its schedules because, among other factors, slot allocations are subject to
changes in government policies and antitrust negotiations.
In 2006, the Wright Amendment Reform Act of 2006 (the Act) became law. The Act is based on an agreement by
the cities of Dallas and Fort Worth, Texas, DFW International Airport, Southwest, and the Company to modify the
Wright Amendment, which authorizes certain flight operations at Dallas Love Field within defined geographic
areas. Among other things, the Act eventually eliminates domestic geographic restrictions on operations while
limiting the maximum number of gates at Love Field. The Company believes the Act is a pragmatic resolution of
the issues related to the Wright Amendment and the use of Love Field.
Environmental Matters The Company is subject to various laws and government regulations concerning
environmental matters and employee safety and health in the U.S. and other countries. U.S. federal laws that
have a particular impact on the Company include the Airport Noise and Capacity Act of 1990 (ANCA), the Clean
Air Act, the Resource Conservation and Recovery Act, the Clean Water Act, the Safe Drinking Water Act, and the
Comprehensive Environmental Response, Compensation and Liability Act (CERCLA or the Superfund
Act). Certain operations of the Company are also subject to the oversight of the Occupational Safety and Health
Administration (OSHA) concerning employee safety and health matters. The U.S. Environmental Protection
Agency (EPA), OSHA, and other federal agencies have been authorized to promulgate regulations that have an
impact on the Company's operations. In addition to these federal activities, various states have been delegated
certain authorities under the aforementioned federal statutes. Many state and local governments have adopted
environmental and employee safety and health laws and regulations, some of which are similar to or stricter than
federal requirements.