BEFORE THE

U.S. DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

_____________________________________ Joint Application of )

)

SOUTHWEST AIRLINES CO. and )

AIRTRAN AIRWAYS, INC. )

) Docket DOT

- OST

__________ under 49 U.S.C. § 40109 for renewal and )

reissuance of exemption authority )

(U.S.

– MEXICO) )

_____________________________________ )

JOINT APPLICATION

F OR RENEWAL AND REISSUANCE OF EXEMPTION AUTHORITY

Communications with respect to this document should be sent to:

Bob Jordan Robert W. Kneisley

President Associate General Counsel

AIRTRAN AIRWAYS, INC. Leslie C. Abbott

2702 Love Field Drive Senior Attorney

Dallas, TX 75235

- 1611 SOUTHWEST AIRLINES CO.

919 18 th Street, NW, Suite 600

Washington, D.C. 2000 6

bob.kneisley@wnco.com

(202) 263

- 6284

September 24 , 2013

NOTICE : Any per son may file an answer to this A pplication in this docket and

served on the persons listed above, on or before October 9 , 201 3

. WE WILL POLL

THE CARRIERS ON THE ATTACH ED SERVICE LIST AND WILL NOTIFY THE

DEPARTMENT OF THE RE SULTS AS SOON AS POS SIBLE.1 BEFO RE THE

U.S. DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

_____________________________________ Joint Application of )

)

SOUTHWEST AIRLINES CO. and )

AIRTRAN AIRWAYS, INC. )

) Docket D O T

- O S T

__________ under 49 U.S.C. § 40109 for renewal and )

reissuance of exemption authority )

(U.S.

– MEXICO) )

_____________________________________ )

JOINT APPLICATION

FOR RENEWAL AND REISSUANCE OF EXEMPTION AUTHORITY

Pursuant to 49 U.S.C. § 40109 and Subpart C of Part 302 (14 C.F.R.), Southwest

Airlines Co. (“Southwest”) a n d AirTra n Airways, In c. (“AirTran”) hereby file this

Application for Renewal and Reissu a n c e of Exemption Authority with the Department of

Transportatio n (“DOT” or “the Department”) to continue to provide scheduled foreign air

transportation of persons, property, and mail between the following cities in the United

States and Mexico :

(i) Atlanta, G A and Cancun

B altimore, M D and Cancun Docket D O T

- OST

- 2005

- 21134

(ii) Mi lwaukee, W I and Cancun Docket D O T

- OST

- 2010

- 0146

(iii) San Antonio, T X and Cancun

San Antonio, T X and Mexico City

Orange County , C A ( S N A ) 1 and Mexico City

Orange County , C A ( S N A ) 2 and S a n J o s e d e l C a b o Docket D O T

- OST

- 2011

- 0205

(iv) Chicago, I L and Cancun Docket D O T

- OST

- 2012

- 0001

1 2 SNA is the airport code for the John Wayne Ai rport in Santa Ana, California. I n g r a n t i n g t h i s

e x e m p t i o n a u t h o r i t y

, D O T d e s i g n a t e d AirTran to provide service to and from Santa Ana, California,

consistent with the carrier’s application and with the U.S.

- Mexico aviation agreement.2

(v) Austin, T X and Cancun

Denver, C O and Cancun Docket D O T

- OST

- 2012

- 0007

(vi) Denver, C O an d S a n J o s e d e l C a b o Docket D O T

- OST

- 2012

- 0190

(vii) A u s t i n

, T X a n d S a n J o s e d e l C a b o Docket DOT

- OST

- 2013

- 0012

All of the above authorities were originally issued in the name of AirTran only. By

Order 2011

- 11

- 17 (AirTran/Southwest Order Transferring Authority ), the Department

transferred all of the AirTran authorities to “AirTran and/or Southwest.” 3 Consistent with

this Order, the carriers request that the Department formalize this transfer in the

reissuance of t he above referenced exemption authorities in the name of “Southwest

Airlines Co. and/or AirTran Airways, Inc ” a n d c o n s o l i d a t e t h e a u t h o r i t i e s i n t o a s i n g l e

d o c k e t

. Service in the above referenced U.S.

-- Mexico markets has been continuously

provided by AirTran. This renewal will allow AirTran to continue s erving these markets

for the present time and will facilitate a smooth transition to Southwest service in its own

name , which is currently expected to begin in 2014.

Renewal and reissuance of the subject exemption authoriti es contained in this

A pplication is in the public interest for the same reasons that supported the original

issuance of the authorit ies

. Specifically, AirTran’s service has provided consumers in all

of these markets with high

- quality, low

- cost travel options and low

- fare compe tition

.

AirTran provides this service with Stage III Boeing 737

- 700 aircraft configured for 137

seats

. AirTran will continue to provide such service in the near term and the eventual

conversation of flights on these routes to the Southwest brand will only increase the

public benefits. With its extensive domestic network and long history of lowering fares

3 Order 2011

- 11

- 17 issued on Sept

. 15, 2011 in Docket No. OST

- 2011

- 0051

.3

and increasing competition, Southwest is well

- positioned to generate significant

economic and consumer benefits to both countries when it initiates U.S.

- - Mexico

service in its own name in 2014

.

AirTran and Southwes t both hold certificates of public convenience and necessity

authorizing each carrier to engage in scheduled air transportation

. A c c o r d i n g l y

, b oth

carriers are fit, willing and able to provide the services for which they jointly seek to

renew. I n addition to the exemption authority referenced in this renewal application,

AirTran also holds exemption authority to serve Aruba, The Bahamas, Bermuda

,

Dominican Republic and Jamaica. See Docket s D O T

- OST

- 2009

- 0200 (Aruba), D O T

OST

- 2009

- 0202 (Bahamas), D O T

- OST

- 2010

- 0292 (Bermuda), D O T

- OST

- 2010

- 0158

(Dominican Republic), and D O T

- OST

- 2009

- 0201 (Jamaica). As the largest U.S.

domestic airline carrying over 100 million passengers annual l y

, Southwest is manifestly

fit to provide service as well. 4 The carriers request that the Department take official

notice, pursuant to Rule 24 of the Department's Rules of Practice, of all data on file with

the Department necessary to establish A irTran and Southwest 's fitness.

The requested renewal and reissuance of exemption authority is fully consis tent

with the United States

– M exico Air Transport Agreement ( “ Agreement ” )

, as amended

by the two governments on December 12, 2005.

4 See, e.g. , the Department’s 2011 Order Transferring Authority finding AirTran and Southwest fit to

conduct operations as U.S. certificated air carriers. See Order 2011

- 11

- 17 issued on Sept. 15, 2011 in

Docket No. D O T

- OST

- 2011

- 0051 , p

. 5 and note 17.4

WHEREFORE, Southwest Airlines and AirTran Airways jointly request renewal

and reissuance of the above referenced exemption authority in the name of Southwest

Airlines Co. and/or AirTran Airways, Inc. under 49 U.S.C. § 40109 for a minimum of two

years to provide scheduled foreign air transportation of persons, property, and mail in

the above referenced markets.

Respectfully submitted,

______________________ Robert W. Kneisley

September 2 4 , 20135 C ERTIFICATE OF SERVIC E

I hereby certify that on September 2 4 , 2013 , a copy of the foregoing was served

via e

- mail on the following persons:

msinick@ssd.com (Alaska Airlines)

francis.heil@aa.com (American Airlines)

Robert.wirick@aa.com (American Airlines)

sascha.vanderbellen@delta.com (Delta Air Lines)

rob ert.cohn@hoganlovells.com (Frontier Airlines)

Patrick.rizzi@hoganlovells.com (Frontier Airlines)

jhill@dowlohnes.com (JetBlue Airways)

robert.land@jetblue.com (JetBlue Airways)

jyoung@yklaw.com (Spirit Airlines)

dkirstein@yklaw.com (Spirit Airlines)

John.Fredericksen@suncountry.com (Sun Country Airlines)

dan.weiss@united.com (United Air Lines)

howard_kass@usairways.com (US Airway s)

ben.slocum@usairways.com (US Airways)

pmurphy@lopmurphy.com (USA3000)

jegillick@zsrlaw.com (Virgin America)

barbara.russell@virginamerica.com (Virgin America)

susan.kurland@dot.gov

paul.gretch@dot.gov

esta.rosenberg@dot.gov

brian.hedberg@dot.gov

brett.kruger@dot.gov

info@airlineinfo.com

__________________________ Leslie C. Abbott