BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

Application of

SOUTHWEST AIRLINES CO.

for an exemption pursuant to 49 U.S.C. § 40109 

to engage in foreign scheduled air transportation 

of persons, property and mail between Houston 

Hobby Airport and Cancun, Mexico City, Puerto 

Vallarta, and San Jose del Cabo, Mexico

(HOU-CUN)

(HOU-MEX)

(HOU-PVR)

(HOU-SJD)

Docket DOT-OST-2014-0222

REPLY OF THE CITY OF HOUSTON

Communications with respect to this document should be sent to:

Mario C. Diaz

Director

Ian Wadsworth

Chief Commercial Officer

Department of Aviation

CITY OF HOUSTON

16930 John F. Kennedy Blvd.

Houston, TX 77032

(281) 233-3000

(281) 233-1859 (fax)

Rachel B. Trinder

ZUCKERT, SCOUTT &

RASENBERGER, L.L.P.

888 Seventeenth Street, N.W.

Washington, D.C. 20006-3309

(202) 973-7927

(202) 342-0683 (fax)

rbtrinder@zsrlaw.com

For the City of Houston

Dated: January 8, 2015
BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

Application of

SOUTHWEST AIRLINES CO.

for an exemption pursuant to 49 U.S.C. § 40109 

to engage in foreign scheduled air transportation 

of persons, property and mail between Houston 

Hobby Airport and Cancun, Mexico City, Puerto 

Vallarta, and San Jose del Cabo, Mexico

(HOU-CUN)

(HOU-MEX)

(HOU-PVR)

(HOU-SJD)

Docket DOT-OST-2014-0222

REPLY OF THE CITY OF HOUSTON

The City of Houston (“Houston” or the “City”) respectfully submits this reply

regarding the application filed in this docket on December 11, 2014 by Southwest 

Airlines Co. (“Southwest”) for authority in four Houston-Mexico markets, and to the 

answers subsequently filed on December 29, 2014 by United Airlines, Inc. (“United”)

and SkyWest Airlines, Inc. (“SkyWest”), and Spirit Airlines, Inc. (“Spirit”), relating to 

Southwest’s proposed Houston-Mexico City/San Jose del Cabo operations. Houston 

wishes to make the following points:
Reply of the City of Houston

Page 2

2

1. In connection with the negotiations between the U.S. and Mexico 

concerning the liberalized bilateral agreement initialed in November 2014, and again in 

this proceeding, Houston has expressed its strong support for authority to be made 

available to all carriers that wish to provide services. For the benefit of consumers and 

the public interest, the City also strongly supports new market entry, low-fare services

and maximizing competition, while not wishing to disrupt or lose existing services. 

2. Houston has for some time been working closely with its carriers –

including both United and Southwest – on multiple projects designed to accommodate 

the significant increases in international traffic experienced over several years and 

anticipated for the future. This effort is taking place on several fronts, and includes: 

securing additional CBP officers and the installation of new technology to enhance the 

efficiency of international arrivals processing at George Bush Intercontinental Airport 

(“IAH”); a public-private initiative with United to remodel IAH Terminals B and D, to 

include an expanded and enhanced Federal Inspection Facility (“FIS”); and a publicprivate initiative with Southwest for the design and construction of a new international 

terminal and FIS at William P. Hobby Airport (“HOU”). Southwest’s proposed new, lowfare, large-jet services to Mexico are a key element of the HOU project. Houston has 

been working closely with the Department of Homeland Security, U.S. Customs and 

Border Protection, and the Congress towards the goal of ensuring that all FIS facilities 

at the Houston airports will be appropriately staffed for applicable operations. The City 

believes that Houston is well-positioned to manage the additional increases in 

international passengers that the future will bring. Construction of the new FIS and 

international terminal at HOU is on schedule for the October 2015 opening. 
Reply of the City of Houston

Page 3

3

3. Houston is fortunate that multiple carriers are interested in providing 

additional services on various Mexico routes. This includes carriers from Mexico as well 

as the U.S. Given this interest, the growing demand in Houston-Mexico markets for 

expanded services, and the limitations of the current U.S.-Mexico bilateral agreement, 

Houston supports the grant of extra-bilateral rights where necessary to enable all 

carriers to provide the services they wish in all Houston-Mexico markets without delay. 

As indicated in its answer of December 29, 2014, Houston hopes that the Department 

will explore with Mexico all options available to secure additional rights needed, 

including extra-bilateral authority. However, Houston recognizes that such authority 

requires the cooperation of Mexico. The timing of such efforts and the grant of authority 

is critical given the need for carriers to engage in advance marketing and start-up 

planning for new services.

In particular the City asks that DOT use its best efforts to persuade the Mexican 

Government to withdraw its historical interpretation of the existing bilateral that a 

mainline carrier and its regional partner each must hold a designation even where all 

services are marketed under the name of the mainline carrier. This informal 

interpretation of the existing agreement is not in the public interest, and but for it this 

proceeding would not have been necessary. Houston is aware that in the past the U.S. 

has made significant, albeit unsuccessful, efforts with Mexico to have this interpretation 

withdrawn. The City hopes that because of the informal nature of Mexico’s approach 

(as opposed to it being an agreed formal element of the existing bilateral), and given the 

recent decision of both the U.S. and Mexico to implement a liberalized bilateral

agreement (subject to approval of Mexico’s Senate), Mexico will be willing to withdraw 
Reply of the City of Houston

Page 4

4

its interpretation immediately. Should this occur, United and SkyWest will be able to 

continue to operate all their existing Houston-Mexico City/San Jose del Cabo services 

using United’s mainline designation, while freeing up a designation for Southwest to 

receive authority on the time frame it needs in order to operate in these markets.

Respectfully submitted,

________________________________

Rachel B. Trinder

ZUCKERT, SCOUTT &

RASENBERGER, L.L.P.

888 Seventeenth Street, N.W.

Washington, D.C. 20006-3309

(202) 973-7927

(202) 342-0683 (fax)

rbtrinder@zsrlaw.com

For the City of Houston

Dated: January 8, 2015
CERTIFICATE OF SERVICE

I certify that on this 8th day of January 2015, a copy of the foregoing was served 

on the parties named below in accordance with the Department’s Rules of Practice.

Rachel B. Trinder

rsilverberg@sgbdc.com, 

jjohnson@sgbdc.com, and 

mgoldman@sgbdc.com

(Counsel for ABX Air)

chuck.hill@airtransport.cc

(Air Transport International)

msinick@ssd.com

(Counsel for Alaska Airlines)

agoerlich@ggh-airlaw.com

(Counsel for Allegiant Air)

robert.wirick@aa.com, 

francis.heil@aa.com, and 

howard.kass@aa.com

(American Airlines)

jcanny@amerijet.com

(Amerijet)

jrichardson@johnlrichardson.com

(Counsel for Amerijet)

rpommer@atlasair.com

(Atlas Air)

john@mietuslaw.com

(Counsel for Centurion Air Cargo)

sascha.vanderbellen@delta.com and

chris.walker@delta.com

(Delta Air Lines)

cefelts@fedex.com and 

nssparks@fedex.com

(Federal Express)

matwood@cozen.com and 

slachter@cozen.com

(Counsel for Frontier)

jhill@cooley.com and 

perkmann@cooley.com

(Counsel for JetBlue Airways)

robert.land@jetblue.com

(JetBlue Airways)

kevin.montgomery@polaraircargo.com

and peter.beckett@polaraircargo.com

(Polar Air Cargo)

robert.cohn@hoganlovells.com and 

patrick.rizzi@hoganlovells.com

(Counsel for Republic Airlines)

ethan.blank@rjet.com

(Republic Airlines)

temerson@skywest.com

mkraupp@skywest.com

(SkyWest Airlines)

bob.kneisley@wnco.com and 

leslie.abbott@wnco.com

(Southwest Airlines)
dkirstein@yklaw.com and 

jyoung@yklaw.com

(Counsel for Spirit Airlines)

john.fredericksen@suncountry.com and 

thomas.ting@suncountry.com

(Sun Country)

dan.weiss@united.com, 

steve.morrissey@united.com, 

thomas.bolling@united.com, 

abby.bried@united.com, and

james.conneely@united.com

(United Airlines)

sseiden@crowell.com and 

gmurphy@crowell.com

(Counsel for United Airlines)

anita.mosner@hklaw.com and 

jennifer.nowak@hklaw.com

(Counsel for UPS)

dsmalls@ups.com

(UPS)

john.varley@virginamerica.com and 

barbara.russell@virginamerica.com

(Virgin America)

paul.gretch@dot.gov, 

susan.kurland@dot.gov, 

brian.hedberg@dot.gov, 

brett.kruger@dot.gov, 

reese.davidson@dot.gov, 

todd.homan@dot.gov, 

peter.irvine@dot.gov, 

laura.remo@dot.gov, and 

robert.finamore@dot.gov

(DOT)

john.s.duncan@faa.gov

(FAA)

ronald.williams@ustranscom.mil

(USTRANSCOM)

englets@state.gov and 

cristinasa@state.gov

(State Department)

info@airlineinfo.com

pjackson@swapa.org

(Southwest Airlines Pilots’ Association)