### BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, DC 20590

) Establishment of Slot Exemption Proceeding ) At Ronald Reagan Washington Nationa l Airport ) Docket Pursuant to 49 USC §41718 ) DOT-OST-2012-0029 )

Communications with respect to th is document should be addressed to:

James Hnat Jonathan B. Hill Executive Vice President, J. Parker Erkmann Corporate Affairs, and General Counsel Dow Lohnes PLLC JetBlue Airways Corporation 1200 New Hampshire Ave., NW 27-01 Queens Plaza North Suite 800 Long Island City, NY 11101 Washington, D.C. 20036 (202) 776-2000 jhill@dowlohnes.com perkmann@dowlohes.com Robert C. Land Senior Vice President for Government Affairs & Associate General Counsel JetBlue Airways Corporation Counsel for P.O. Box 1927 JetBlue Airways Corporation Rockville, MD 20849-1927 (301) 279-9727

March 12, 20121 

### BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, DC 20590

) Establishment of Slot Exemption Proceeding ) At Ronald Reagan Washington Nationa l Airport ) Docket Pursuant to 49 USC §41718 ) DOT-OST-2012-0029 )

A Capital to Capital Application

JetBlue Airways (“JetBlue”) hereby applies for exemptions from 49 U.S.C. 41714 (h) (4) and 14 CFR Part 93, subparts K and S (“High Dens ity Rule” or “HDR”), to allow JetBlue to add service in up to two unique markets: 1) one daily nonstop roundtrip flight between Ronald Reagan Washin gton National Airport (“DCA”) and San Juan, Puerto Rico’s Luiz Munoz Marin International Airport (“SJU”), the capital of Puerto Rico, with connecting service to St. Thomas (“STT”), t he capital of the United States Virgin Islands; and 2) one daily nonstop round trip fl ight between DCA and Austin-Bergstrom International Airport (“AUS”), the capital of Texas. JetBlue requests two (2) slot exemptions for new service between DCA and JetBlue’s focus city at SJU and, if the slots for SJU are granted, two (2) slot ex emptions for new service between DCA and JetBlue’s growth city of AUS, both of whic h are capital cities located beyond the DCA perimeter pursuant the FAA Modernization and Reform Act of 2012 (Pub. L. No. 112- 95). 1

1 In making this application JetBlue seeks consideration of its request to serve DCA-SJU/STT as its first choice. Only if that service to our fo cus city (SJU) is granted does JetBlue request that DOT consider its second request for service to Austin, Texas.2 

### On February 14, 2012, President Obama si gned into law the FAA Modernization and Reform Act of 2012 (“FAA 2012”). Section 414 of FAA 2012 directs the Department of Transportation (“Department”) to grant an additi onal eight (8) slot exemptions “for nonstop service between DCA and airports be yond the 1,250-mile per imeter.” JetBlue Airways is a limited incumbent carrier at DCA and this application, as described below, satisfies the criteria Congre ss has directed the Department to consider (Section 414 of FAA 2012).

JetBlue proposes to provide daily nonst op service between DCA and SJU utilizing its Stage 3 Airbus A320 single aisle jet. The JetBlue A320 has 150 seats in a three by three seating configuration, providing the most legroom in coach and JetBlue’s popular ‘Even More Space’ product. The pr oposed daily nonstop service between DCA and AUS would utilize the Stage 3 Embraer E190 si ngle aisle mainline jet. The JetBlue E190 has 100 seats in a two by two configurat ion and also offers the ‘Even More Space’ product. 2 

### Both applications have the strong support of the local communities. 3



### I. Introduction

Created after deregulation, JetBlue has achi eved profitability and customer loyalty through its commitment to customer service. Since our first flight more than twelve

2 It is JetBlue’s expectation that the DCA-AUS capital to capital market will be stimulated with our low fares, thus enabling JetBlue to profitably upsize the aircraft to the Airbus A320 as market conditions warrant.

3 See Exhibit A for initial letters of support, including from (1) Governor Luis G. Fortuño of Puerto Rico; (2) Mr. Arnaldo Deleo, Aviation Director and General Manager of SJU; (3) the Honorable Donna M. Christensen, Congressional Delegate for the U.S. Virgin Islands; (4) Governor John P. de Jongh, Jr. of the U.S. Virgin Islands; (5) the Honorable Pedro R. Pierluisi, Congressional Delegate for Puerto Rico; (6) President Ronald E. Russell, Esq. of the Senate of the U.S. Virgin Islands, and (7) Mayor Lee Leffingwell of Austin, Texas.3 

### years ago, our commitment to bring humanity back to air travel has proven far more than a marketing slogan. JetBlue’s relentle ss focus on award-winning customer service has been widely acclaimed. 4 

### The loyalty of our customer s, more than 26 million last year, has enabled JetBlue to receive the prestigious JD Power award for Customer Satisfaction for an unprecedented seventh year in a row. JetBlue’s customer focused approach has enabled its profitable growth and enabled JetBlue to become the fastest airline in United States aviation history to achieve the ranks of “major” airline as classified by the Department.

JetBlue prides itself on delivering everyday fair fares coupled with a litany of standard features that exceed the extras provided for a fee by other carriers. These include: 1) no overbooking; 2) first checked bag free; 3) all one-way fares; 4) pre-assigned seats; 4) the most legroom in coach of any domes tic carrier; 5) the youngest all-jet mainline fleet of any major carrier; 6) unlimited snacks and drinks; 7) 136 channels of free

entertainment 5 

### and 8) the award winning customer service delivered by our 14,000
Crewmembers.

Today, JetBlue operates a fleet of 171 new, la rge jet aircraft, comprised of 120 Airbus A320 jets, each with 150 seats 6 

### and 51 Embraer E190 jets , each with 100 seats.

4 See Exhibit B for list of most notable customer-service awards and rankings.

5 Every seat on all JetBlue aircraft is equipped with 36 channels of free LiveTV and 100 channels of free XM Radio. In addition, each seat is equipped with pay-for first run movies, which are provided free of charge on Caribbean flights where satellite signal loss occurs with LiveTV and XM.

6 JetBlue has opted to configure its Airbus A320 fleet with only 150 seats, each with the most average legroom in coach of any domestic coach product. By contrast, for example, a Spirit Airlines’ Airbus A320 is configured with 178 coach seats, 19 percent more seats in the same aircraft operated by JetBlue, demonstrating one of the standard customer-friendly attributes (legroom) offered by JetBlue to all of its customers.4 

### JetBlue currently serves 71 markets, including 18 international destinations. 7 

### JetBlue’s consistent and controlled growth since 2000 will continue this year as the fleet grows to
180 aircraft. With its firm orders, JetBlue will see the fleet gr ow to 275 aircraft by 2021. This firm-order fleet growth is an important factor. As JetBlue has demonstrated in market after market, our philosophy is to stimulate markets and add frequency in order to satisfy growing demand brough t about by our low fares. Our order book enables this consistent growth in successful markets.

Since our first flight in 2000, JetBlue has always had a simple formula for deciding
which markets to serve - the market needs to be either 1) under-served; 2) over-priced; or 3) have both characteristics. Once JetBlue decides to ent er a market, it introduces a meaningful level of service at lower fares t han the market has previously experienced. The markets between DCA and both SJU and AUS fit this description.

Simply put, JetBlue’s model has a demonstr ably successful histor y of stimulating demand rather than merely shifting existing tra ffic. As JetBlue grows, it creates new competitive markets. As such, when JetBlue enters a market, fares generally are lowered and enplanements generally rise. As tr affic increases, JetBlue utilizes its firm aircraft order book to grow capacity fu rther, satisfy demand and thus, be a strong competitor. This historical pattern has been replicated time and time again.

Below are two recent market illustrations of the positive effect JetBlue has had on increased traffic and disciplined fares. T he first is Jacksonville, FL – San Juan.

7 Based on June 2012 schedule (seasonal markets are MVY, ACK and ANC).5 

### The second illustrates the reduction in fare and growth in traffic in the Orlando, FL to Bogota, Colombia market.

II. JetBlue’s Proposal

JetBlue proposes to start nonstop service once daily in each direction between DCA and SJU within 90 days of the Department’s Final Order. All SJU service will be on JetBlue’s largest aircraft, t he Airbus A320, each with 150 s eats, as highlighted below.

Ori g in Destination De p art A rrive Fre q uenc y A ircraft Seats Distance

DCA SJU 10:00 13:55 Daily A320 150 1,554 mi SJU DCA 11:05 15:05 Daily A320 150 1,554 mi

In addition to the San Juan service, JetB lue proposes to start nonstop service once daily, in each direction between DCA and AUS within 90 days of t he Department’s Final $187 $165 $146

$0 $40 $80 $120 $160 $200

2011 Q1 2011 Q2 2011 Q3 JAX

‐ SJU Industry Average Passenger Fare

B6 enters (12%) (11%) ( 22% )

30 66 85

0 15 30 45 60 75 90

2011 Q1 2011 Q2 2011 Q3 JAX

‐ SJU Industry Passengers Per Day

B6 enters 121% 28% 184%

$252

$139 $148

$0 $50 $100 $150 $200 $250 $300

2008 Q1 2009 Q1 2010 Q1 MCO

‐ BOG Industry Average Passenger Fare

B6 enters (41%)

30 70 120

0 20 40 60 80 100 120 140

2008 Q1 2009 Q1 2010 Q1 MCO

‐ BOG Industry Passengers Per Day

B6 enters 300%6 

### Order. All AUS service will be on JetBlue’ s Embraer E190 aircraft, each with 100 seats, as highlighted below.

Origin Destination Depart Arrive Frequency Aircraft Seats Distance

DCA AUS 13:40 16:00 Daily E190 100 1,313 mi AUS DCA 8:30 12:55 Daily E190 100 1,313 mi

These departure and arrival times fit well within the demand periods experienced at
DCA and should allow the FAA to award t hese slots without imposing delays at the airport.

III. JetBlue’s Growth at DCA

An exception to JetBlue’s core philosophy of growing capacity to satisfy demand, regrettably, has been at air ports where free-market entry has been thwarted due to
artificial constraints, such as, but not limited to, the High Density Rule. 8 

### In particular, of the airports once or currently governed by t he HDR, DCA has been especially difficult to enter. Despite a decade’s worth of repeated failed attempts to reach commercial terms with incumbent carriers or to gain access through legislative means, JetBlue did not begin its very limited DCA oper ations until November 2010. 9



### Then, in 2011, as part of t he FAA ordered divestit ure of slots by US Airways and Delta relating to their slot swap deal, JetBlue dem onstrated how uniquely important we view

8 JetBlue began commercial operations in 2000, in part, utilizing 75 slot exemptions at JFK awarded by the Department. At the time, JFK wa s a woefully underutilized airport with nearly half as many total operations as it has today. JetBlue has also relied in part upon slot exemptions and commercial transactions in order to initiate operations at LGA, EWR and ORD. See DOT Order 99-9-11 (Sep. 16, 1999).

9 In November 2010, JetBlue began service to BOS, FLL and MCO operated with leased slots from American Airlines.7 

### growth at DCA by successfully biddi ng on and winning an unprecedented $40 million purchase of eight slot pairs. 10 

### The new operations utilizin g the recently acquired DCA slots are scheduled to begin in June of this year. The new slots will be utilized to expand JetBlue’s existing routes to ten daily roundtrips between DCA and BOS, up from seven, three daily roundtrips betw een DCA and both Orlando and Fort Lauderdale, each up from one, and add a new daily r oundtrip between DCA and Tampa.

Even with our newly acquired slots, leased slot s that have been operat ing for just over a year, and with the potential of two new beyond-perimeter slot pairs pursuant to this application, JetBlue remains a new, very sm all, limited incumbent carrier at highly concentrated DCA. Despite this fact, JetB lue has a disproportionally large impact on disciplining fares and stimulating traffic. The charts below il lustrate the composition of DCA customers and departures by carrier.

As noted, customer response to JetBlue’s new DCA service since late 2010 has been overwhelmingly positive. JetBlue carries a larger percentage of customers than its

10 See FAA, Press Release, JetBlue, WestJet Gain Slots at LaGuardia, Reagan National Airports (Dec. 1, 2011), attached as Exhibit C. US 46%

DL 23% AA 13% UA 8% B6 2% Other 8% DCA Departures Percentages by Carrier

US 38%

DL 22% AA 15% UA 10% B6 3% Other 12% DCA Customers by Carrier8 

### percentage of departures at DCA. Load fact ors on our new DCA service have been 75 percent, and enplanements in JetBlue’s markets have increased. While this load factor is slightly lower than JetBlue’s syste m-wide average load fact or of more than 82 percent, it is significantly higher than the tw o competitor “shuttle” operators in the BOSDCA market, which had operated at load factor s in the 46 percent to 56 percent range prior to JetBlue’s entry in the market. 11



### The Boston – Washington market is the sixth largest origin and destination market in the nation (1,928 daily passengers each way (“pdew”)). Even on this large base, JetBlue’s low fare entry into the market, in onl y one year, has had a remarkable impact in disciplining fares and foretells the impact Je tBlue expects in both the SJU and AUS markets as requested in this application.

11 For the year ending Q4 2009, the US Airways Shuttle between DCA-BOS had a 56 percent load factor and Delta had a 46 percent load factor in this market. JetBlue’s entry into this large business and leisure market not only provided significant price discipline on the incumbent carriers, it helped to raise their load factors. In the year ending Q3 2011, US Airways Shuttle between DCA-BOS had a load factor that had risen significantly to 77 percent and Delta had risen even more dramatically to 79 percent. $151
$115

$0 $20 $40 $60 $80 $100 $120 $140 $160

2010 Q3 2011 Q3 

### BOS

‐ DCA Industry Average Passenger Fare

B6 enters

(24%)9 

### IV. JetBlue’s Growth in San Juan, Puerto Rico

Puerto Rico has quietly become a major focus city for JetBlue. JetBlue’s growth in Puerto Rico has been extraordinary over the past ten years. Our service began in 2002 with 3 daily roundtrip flights between JFK and San Juan. Over the years, this
successful and well received service to Puer to Rico has expanded significantly. In 2004, JetBlue began operations in Aguad illa on the northeast coast of the Commonwealth via JFK. The next year, fo llowing our success in Aguadilla, in 2005, JetBlue began operations in Po nce, on the south central c oast of Puerto Rico also initially via JFK. Today, both Ponce and Agu adilla have service to Orlando as well as
JFK. 12



### Today, the service at San Juan, Aguadilla a nd Ponce reflects years of planning and continued expansion. Fr om the initial few fl ights at each of the three airports to and
from New York’s JFK, the ex tensive increase in service is illustrated below, showing all of JetBlue’s nonstop service from San Juan.

12 See Exhibit D (Map of Service from Ponce and Aguadilla). 778 1,438

0 200 400 600 800 1,000 1,200 1,400 1,600

2010 Q3 2011 Q3 

### BOS

‐ DCA Industry Passengers Per Day

B6 enters

85%10 

### Overall, JetBlue’s successful business model di ffers significantly from that of other new carriers and legacy carriers in numerous ways. In particular, JetBlue operates primarily as a point to point carrier. By not operating a traditional hub and spoke network, our customers have come to expect the convenienc e of nonstop service. In fact in 2011, almost 90 percent of JetBlue’s customers were local point to point customers, versus 34 percent for the legacy carriers. 13 

### In this regard, JetBlue does not seek to operate traditional hubs designed to feed outbound depar tures with customers from inbound arrivals. Rather, JetBlue operates six major fo cus cities, each of which has a majority of

13 See US DOT O&D DB1A database, “legacy” carriers include AA, CO, DL and US for this comparison.11 

### its customers flying point to point. Our focus cities are BOS, JFK, MCO, FLL, LGB and San Juan, a focus of this application.

In San Juan, however, this point to point pattern has been deliberately evolving over time such that the market is transforming in to a launching point for further domestic and
international destinations on Je tBlue and our partner Cape Air. 14 

### With ongoing expansion at San Juan, not only to new destinations in the mainland United States, JetBlue provides large jet service to the dom estic markets of St. Thomas and St. Croix, as well as the popular international market s of St. Maarten and Santo Domingo, the capital of the Dominican Republic. Cont inued frequency additions on existing JetBlue routes from San Juan, along with further new route expansion in San Juan, is currently planned. 15

14 See Exhibit E, letter of support from Cape Air for this application by JetBlue.

15 "San Juan is the cornerstone of [JetBlue’s] growth in the Caribbean ... As Puerto Rico's number one carrier, JetBlue continues to seek growth opportunities." JetBlue Press Release (Dec. 14, 2011). 

### 0 100 200 300 400 500 600 700 800 900

YE 2002 YE 2006 YE Q3 2011JetBlueSJUPassengers(Thousands) 

### B6's Annual SJU Passenger Growth

+28% Compounded Annual Growth Rate12 

### JetBlue’s continued growth and expansion in Puerto Rico, and San Juan in particular, has been augmented by our successful interline re lationship with our partner Cape Air. Cape Air operates a high frequency pattern of flights thr oughout the northern Caribbean, all from its base at San Juan, with as many as 21 aircraft. 16 

### Below is an illustration of the connecting opportunities at San Juan, where JetBlue and Cape Air

connect customers.

DCA-SJU connection opportunities

Domestic International Mayaguez (Cape Air) Santo Domingo (JetBlue) St. Thomas (JetBlue or Cape Air) Anguilla (Cape Air) St. Croix (JetBlue or Cape Air) Tortola (Cape Air) Vieques (Cape Air) Nevis (Cape Air)

16 During peak season, Cape Air operates over 800 flights each week from SJU to seven locations, including St. Thomas, St. Croix and Vieques. See Exhibit E. A Cape Air SJU route map is attached as Exhibit F.13 

### San Juan, Puerto Rico

San Juan is the capital of the Commonwealth of Puerto Rico. The commonwealth has a population of 3.7 million, with more than ten percent livi ng in San Juan, which is the
nation’s 46 th 

### largest city. More than 1.6 milli on people, or 43 perc ent of the entire population of the Commonwealth of Puerto Rico, live within 30 miles of the airport at
San Juan. 17 

### Tourism is a major component of t he Puerto Rico economy, with nearly 5
million visitors to the island in 2010. In 2011, hotel occupancy averaged 70 percent, the highest rate on record and new hotel investm ent of $1.5 billion is underway, above and beyond the 17,000 hotel rooms already in the Commonwealth.

One segment of the touris m economy that is a major growing component and particularly relevant to this application is t he homeport cruise traffic. Unlike the vibrant and growing business of cruise ships paying visits to Puerto Rico, homeport ships see travelers flying to and from San Juan and boa rding and disembarking from Caribbean cruises in Puerto Rico. Since 2007, homeport cruise passengers have grown by 20 percent. With more ships opting to ma ke their home port in San Juan, cruise passengers are forecast to rise another 9 per cent for the fiscal year ending June 30, 2012. The continued growth of the cruise and hotel sectors furt her strengthens the already robust air travel market at SJU.

V. JetBlue’s Growth in Austin, Texas

JetBlue began service in Austin, Texas in 2006, with daily nonstop service to both JFK and BOS. This initial service has been very well received and the results have been to

17 See 2010 Census.14 

### dramatically increase traffic while simultaneously reducing fares. Cust omer traffic in the BOS-AUS market has nearly doubled while the AUS-NYC ma rket has increased nearly 80 percent. In both markets, av erage fares have dropped as well.

Two years after introducing the successful service between Austin and both JFK and BOS, in 2008, JetBlue expanded its service to include daily nonstop flights to both San Francisco and Los Angeles/Long Beach in Ca lifornia, and Orlando and Fort Lauderdale in Florida. JetBlue’s Austin presence has benefitted the community not only with the point to point service to California and Fl orida, but the flight s to Orlando and Fort Lauderdale provide three connections each th roughout the Caribbean. With JetBlue’s Austin service to these four key markets, like the New York and Boston markets before
them, traffic in each market has increased while fares have decreased, as shown below. Q1 2005 Q1 2006 Change 327 585 +79% $212 $161 -24% $69,324 $94,185 +36% * Includes JFK, LGA, and EWR



### Q1 2005 Q1 2006 Change 88 174 +98% $216 $156 -28% $19,008 $27,144 +43% PDEW

Fare Market Rev AUS-NYC* PDEW

Fare Market Rev

AUS-BOS15 

### Source: U.S. DOT O&D Summary Report

Austin

Austin, the capital of Texas, the second most populous state in the nation, is “America’s number one boom town” according to Forbes Magazine. 18 

### According to the 2010 Census, the metropolitan area of Austin cu rrently has a populati on of 1.8 million, a staggering 37 percent increase from 2000, and this figure is expected to reach two million by 2015. This makes Austin the 14 th 

### largest city in the nation and the third fastest growing. Austin is centrally situated in the midst of the Texas’s Golden Triangle,
the area between the cities of Dallas/Fort Worth, Houston and San Antonio, where 80 percent of all Texans reside. 19 

### Austin also leads the nat ion’s largest metropolitan areas in job growth, and it has the highest m edian household income among all Texas metropolitan areas. 20

18 See Joel Kotkin, The Next Big Boom Towns in the U.S. , F ORTUNE (Jul. 6, 2011) (available at: http://www.forbes.com/pictures/edgl45fkm /no-1-austin-texas/#gallerycontent).

19 JetBlue serves Houston from both JFK and BOS and begins service to Dallas/Fort Worth, from BOS, this May.

20 Nonfarm payroll jobs from Dec. 2006 to Dec. 2011. See US Bureau of Labor Statistics. AUS-FLL* Q3 2007 Q3 2008 Change AUS-LGB* Q3 2007 Q3 2008 Change

PDEW 157 218 +38% PDEW 674 778 +15% Fare $145 $120 -17% Fare $155 $136 -12% Market Rev $22,816 $26,148 +15% Market Rev $104,493 $105,774 +1% * Includes FLL, MIA, and PBI * Includes LGB, LAX, ONT, SNA, and BUR

AUS-MCO Q3 2007 Q3 2008 Change AUS-SFO* Q3 2007 Q3 2008 Change

PDEW 175 250 +43% PDEW 624 706 +13% Fare $137 $116 -15% Fare $170 $158 -7% Market Rev $23,941 $28,948 +21% Market Rev $106,140 $111,477 +5% * Includes SFO, OAK, and SJC16 

### Austin is a growing center for business and tourism. In 2010, tourism was up 6.8 percent, year over year, to 18. 2 million visitors, who collecti vely spent $4.5 billion which directly supported 45,000 regiona l jobs. Leisure travel represented 67 percent of visitors in 2010 while business travel repres ented 33 percent. In 2011, hotels in Austin had occupancy rates rise 8 per cent year over year.

JetBlue has also become a growing part of t he Austin community by not only connecting the capital of Texas to major population centers around the country and successfully stimulating that market with our low fare s, frequency of operati ons and award winning service, but also having become the official ai rline of the University of Texas at Austin athletic department and all tw enty of the Longhorn’s sports t eams. The University of
Texas at Austin is a Tier One research university, with annual research expenditures exceeding $500 million, fu rther strengthening its ties to Washington. Also, with more than 50,000 students, the University is the fi fth largest single campus in the nation.

Against the background of a thriving ec onomy in Austin and a booming population center, not surprisingly, overall traffic at AUS has actually ris en over the last five years. Indeed, during this time of economic weakne ss, AUS is one of only five medium hub airports in the nation that did not experience reductions in enplanements. 21 

### However, while overall enplanements in AU S have increased, that is not the case for service to Washington. Air service between Washington and Austin has long been a monopoly market only served by the dominant hub carrier at Dulles - United. Capacity has been decreasing as fares have been rising. Since 2007, fares have risen 9 percent, while capacity has significantly decr eased, having dropped by 33 percent.

21 See US DOT T-100.17 

### VI. Statutory Criteria

Congress has directed the Department to consi der seven criteria in determining if an application merits an award of the new bey ond-perimeter slots made possible through FAA 2012. Congress has not, however, direct ed the Department as to how it should weigh these factors, increased by three and slightly altered since the Department was last charged with allocating beyo nd-perimeter slot exemptions at DCA (12 in total) under Vision-100 in 2004 (P.L. 108-76). JetBlue’s application for service to both San Juan
and Austin meets each of the seven criteria established by Congress. Moreover, because of JetBlue’s established history of entering new market s, lowering fares, improving customer service and growing mark et size, JetBlue’s proposal creates the greatest public benefits. Je tBlue’s proposed new service to these two innovative destinations will have an immediate and signifi cant impact on the traveling public’s access to and from DCA, San Juan and Austin. The seven criteria DOT “shall consider”

are: 0 50 100 150 200 250 300

0 200 400 600 800 1,000 1,200

Jan

‐ 05 Jan

‐ 06 Jan

‐ 07 Jan

‐ 08 Jan

‐ 09 Jan

‐ 10 Jan

‐ 11PassengerFare/PDEW'sAnnualFlights 

## AUS

‐ IAD Historical Fares, PDEW's, and Capacity

PDEW's Annual Flights Average Passenger Fare18 

### a. Domestic Network Benefits
San Juan

As the Department has asserted in previous orders for beyond perimeter slots, it is
axiomatic that neither new entrant nor limit ed incumbent carriers at DCA can provide many, if any whatsoever, domestic network benefits behind DCA itself. JetBlue is no exception to this. JetBlue’ s entry into DCA late in 201 0, limited because of regulatory restrictions, has enabled it to freely and su ccessfully compete in the Washington – Boston market with seven daily roundtrip flights. JetBlue’s only other service, given the limit on slots at DCA, is a single daily flig ht to both Orlando and Fort Lauderdale. Given that JetBlue will have as many as four daily nonstop flights al ready scheduled between San Juan and Boston this summer, network benefits behind DCA itself, while present to
and from Boston, are minimal.

However, as discussed above, JetBlue’s presence and growth in Puerto Rico, especially at San Juan, prov ides precisely the type of network benefits “beyond the perimeter” that Congress delinea ted. The grant of JetBlue’s application is consistent
with President Obama’s di rection that it is “the policy of the executive branch to improve
the treatment of Puerto Rico in Federal programs and to pr omote job creation, education, health care, clean energy, and ec onomic development on the islands.” Executive Order 13517 (Oct. 30, 2009). JetBlu e’s new service to SJU from DCA would be a significant boon to the econom ic development of Puerto Rico. JetBlue provides multiple domestic network benefits beyond San J uan. JetBlue itself flies twice daily to the capital of the United States Virgin Isl ands, St. Thomas, as well as once daily to St.19 

### Croix (“STX”) in the United States Virgin Isl ands. Both markets will benefit from direct and the timely connections with the DCA non stop being requested in this application.

Beyond the domestic connection opportuniti es on JetBlue to both STT and STX, JetBlue’s interline partner, Cape Air, provides additional high frequency domestic connections at San Juan. Cape Air will provide added domestic network benefits with nonstop service for JetBlue customers in th e DCA-SJU market with flights between San Juan and Mayaguez, Puerto Rico (“MAZ”), Vieq ues, Puerto Rico (“VQS”), as well as additional service and frequency to both STT and STX in the US Virgin Islands. Cape Air also provides service between San Juan and these international markets: Anguilla, Tortola, St. Maarten and Ne vis, as illustrated below.20 

### As the map above illustrates, domestic netwo rk benefits from San Juan are achieved on both JetBlue and Cape Air. In addition, in ternational network benefits are gained as well, including connections on JetBlue to t he capital of the Dominican Republic, which has as many as five daily flights between SJU and SDQ, the capital and largest city in the Dominican Republic. The SJU connecti ng services shown above are elaborated
below. 22



### Cape Air service from SJU:

Domestic International MAZ (4x daily) AXA (3x daily) STT (10x daily) EIS (9x daily) STX (8x daily) NEV (2x daily) VQS (11x daily)

Source: OAG Schedules by Diio Mi
Austin

JetBlue has served Austin, Texas, for six years. Today, JetBlue has a strategic presence at AUS with twice daily nonstop se rvice to JFK, and single daily roundtrip service between Austin and San Francisco, Los Angeles/Long Beach, Fort Lauderdale,
Orlando and Boston. Our Aust in presence, with service to six key destinations, has been strategically built to serve the local Austin community and as a result, only JetBlue’s Long Beach flight would serve as a viable connection from DCA. While not meeting this one of seven criteria as str ongly as JetBlue’s proposed DCA-SJU service, the DCA-AUS service will provide strong and meaningful competiti on primarily in the

22 See Exhibit G for a detailed schedule of connecting flights at SJU.21 

### local market, one of the seven criteria that Congress directed the Department to
consider, as discussed below.

b. Increased Competition in Multiple Markets:

San Juan

Historically, the local San Juan – Washington market has suffered from minimal service and high fares. In 2004, there we re four daily nonstop flights from Dulles to San Juan. Today, there is only one nonstop flight from Washington. This service is from Washington Dulles, and it is operated by Un ited Airlines with an Airbus A320 aircraft configured with 24 fewer coac h seats than JetBlue’s A320. 23 

### The coach fares on United’s flight range from $147 to $1244, ve rsus JetBlue’s planned fares of $127 to $667. Further, JetBlue will not only introduc e new service from DCA, the preferred business airport nearby to downtown Washington, D.C., but this service will inject much needed competition with United’s IA D-SJU service. JetBlue’s service will compete on both convenience and price, but also introd uce its differentiated coach product (as discussed above) into the market.

As discussed in the introduction, customers have spoken with their wallets in preferring
JetBlue to other carriers when identical nonst op routes are offered by JetBlue and the competition. JetBlue’s coach customers, as part of their airf are and without purchasing anything extra, receive thei r first checked bag free, pr e-assigned seats, the most legroom in coach of any domestic carrier, th e youngest all-jet fleet of any major carrier,

23 June 2012 IAD-SJU schedule (OAG), United A320 with 126 coach seats and JetBlue A320 with 150 coach seats.22 

### unlimited snacks and drinks, 136 channels of fr ee entertainment and JetBlue’s award winning customer service wh ile having the guarantee of no overbooking or routinely being denied boarding, as is common on other carriers. 24



### The above illustrations demonstr ate that the WAS-SJU market place, while historically dominated by one carrier, is currently domin ated by two, with mini mal competition. When American left the WAS-SJU nonstop market from Dulles, fares increased, traffic
decreased and shifted as well, to United and its one daily nonstop.

Unfortunately for the travelling public, t he DCA one stop connecting service also saw fares rise when competition ceased at Du lles. Of note, although DCA connecting fares
rose when American withdrew from Dulles – San Juan service, traffic levels in the DCASJU market remained nearly constant, demonst rating the inherent attractiveness of the DCA, nearby to downtown, market. This is illustrated below:

24 Every seat on all JetBlue aircraft has 36 channels free LiveTV and 100 channels of free XM Radio. In addition, each seat is equipped with multiple pay-for first run movies, which are provided free of charge on Caribbean flights where satellite signal loss occurs with LiveTV and XM. As a matter of policy, JetBlue does not overbook its flights. Accordingly, JetBlue’s rate of passengers denied boarding is many times lower than other carriers. See U.S. Department of Transportation, Air Travel Consumer Report (June 2011), at 31 (available at: http://airconsumer.dot.gov/reports/2011/June/2011JuneATCR.pdf). AA 25%

B6 8% CO 7% DL 9% FL 8% NK 2% UA 35% US 6% WAS

‐ SJU Passenger Market Share Q3 2011

AA 56% B6 5% DL 6% FL 2% NK 4%

UA 20% US 7% WAS

‐ SJU Passenger Market Share Q1 2011

Average Passenger Fare $190 Average Passenger Fare $19423 

### Today, San Juan is the ninth largest market at DCA without nonstop air service. JetBlue’s new nonstop service between DC A and San Juan will not only bring much needed competition to this single carrier market, but it will also introduce new connecting opportunities onward to the capital of the United St ates Virgin Islands, St. Thomas, as well as St. Croix in the USVI. Not only will this route be a successful business connection between the nation’s capital and the capital city of the nearest U.S. territory, Puerto Rico, but it will develop a leisure market beyond Puerto Rico as a gateway to the Caribbean at large, domesti c and internationally. Currently, from the Washington market to either STT or STX, customers tran sit through hubs at Charlotte,
Atlanta, Fort Lauderdale or Miami. JetB lue’s new proposed nonstop DCA-SJU service
will also introduce first of its kind connections from DCA to the domestic destinations of Vieques and Mayaguez. JetBlue’s new S an Juan nonstop will provide more direct travel and shorter times to all of these connecting destinations. 25

25 See Exhibit H, illustrating trip time savings. 0 100 200 300 400 500

$0 $50 $100 $150 $200 $250

2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2Enplanements/PDEW'sAverageFare 

### WAS

‐ SJU Enplanements have been declining as the average fare has been rising

Average Passenger Fare Enplanements DCA

‐ SJU PDEW's 

## +20%

‐ 64% April 2011: AA exits24 

### Austin

The Washington – Austin market is currently served with two daily nonstop flights from Dulles Airport, both on United Airlines, wit h one served on a smaller regional jet by United Express. Austin is the fifth larges t market beyond the perimeter that does not have nonstop service from DCA. The averag e fares in this market are $246 and the daily number of passengers in each directio n is only 108 for the year ended Q3 2011.
United’s current coach fare structure is $222 - $1,473 each way. JetBlue’s new proposed nonstop service from the capital of the nation’s second largest state to the national capital will be priced significantly lower at $125 to $665. These fares and new nonstop service from DCA, will help to di scipline market fares, provide service competition and grow the overall market size.

As the illustration above demonstrates, JetBlue’s proposed service between DCA and
Austin, at JetBlue’s fare structure shoul d be welcomed by the public and grow the overall market size. This large capital to capital market is both under-served and highly 150 175 200 225 250 275 300 325 350

$140 $160 $180 $200 $220 $240 $260 $280

2006 Q4 2007 Q3 2008 Q2 2009 Q1 2009 Q4 2010 Q3 2011 Q2QuarterlyEnplanementsAveragePassengerFare 

## AUS

‐ IAD: Average fares have been increasing as enplanements decline

Average Fare Enplanements 

### +23%

‐ 34%25 

### priced, making it precisely the type of mark et JetBlue has historically had the most meaningful impact on wit h regards to fare discipline.

c. No Reduction in Travel Options

JetBlue is a limited incumbent carrier at DCA and no service reductions at small hub or medium hub airports will occur if JetBlue is awarded the two routes it is herein applying for. The award of both request ed slot pairs will not take away service from a small or
medium hub, and the FAA will schedule these slots as prov ided in Section 414 FAA 2012. Those provisions of Section 414(a) r equire the Secretary to provide a scheduling priority to limited incumbents, new entrant s and foreign air carriers certified by the government of Canada over other air carriers. 26 

### The statutory increase of no more than 5 operations per hour between t he hours of 7 AM and 9:59 PM by definition are allowed under the statute. The grant of slots in co mpliance with the new statute will not result in
a reduction of service to small or medium hubs. Indeed , because SJU and AUS are
both medium hubs, medium hub service will increase.

d. No Increase in Travel Delays

JetBlue believes, based on two studies per formed by the General Accounting Office describing ample airport capacity at DCA, that the addition of the single daily roundtrip

26 FAA Modernization and Reform Act of 2012 (Pub. L. No. 112-95) § 414(a) (adopting 49 U.S.C. § 41714(h): “Scheduling Priority – In administering this section, the Secretary shall – (1) afford scheduling priority to operations conducted by new entrant air carriers and limited incumbent air carriers over operations conducted by other air carriers granted additional slot exemptions under subsection (g) for service to ai rports located beyond the perimeter . . . [and] for service to airports located beyond the perimet er described in section 49109, to the extent necessary to protect the viability of such service.”).26 

### between DCA and both San Juan and Austin, will not result in increased travel delays. 27


### Again, section 414 (a) of the FAA 2012 specific ally allows the increase in slots during the slot controlled operating hours at DCA. The increase of 8 slot operations for new
entrant and limited incumbent air carriers spread throughout the day will not result in increased travel delays. Indeed, the times r equested by JetBlue in this application for both the proposed DCA-SJU and DCA-AUS servic e are for times t hat are not during morning or evening peak oper ational periods. The ease with which JetBlue’s proposed services will fit into DCA’s existing schedul e is yet another reason for granting JetBlue’s application.

e. Enhanced Travel Options for Nonstop Travel

San Juan

JetBlue’s’ proposed service between DCA and SJU will certai nly enhance nonstop travel options for the public in Washington and Puerto Rico. Presently there is no nonstop service between DCA and SJU. JetB lue’s unique proposal provides both the
business and leisure traveler the opportunity to travel nonstop between the nation’s capital and this important Caribbean capital city. The growing Washington metropolitan region, including nearby nort hern Virginia and suburban Ma ryland, will benefit from new nonstop service so nearby to the business and tourist centers of downtown Washington.

27 See REAGAN NATIONAL AIRPORT , Update on Capacity to Handle Additional Flights and Impact on Other Area Airports GAO-07-352, March 16, 2007, and REAGAN NATIONAL AIRPORT , Capacity to Handle Additional Flights and Impact on Other Area Airports, GAO/RCED 99-234, September 1999.27 

### Likewise, tourists originating from Puerto Rico or connecting Caribbean points can enjoy new nonstop service to Washington’s pref erred downtown airport as never before. 28



### Austin

Austin, like San Juan, has limit ed nonstop service to Washington, but only from IAD and none from DCA. Service between the capital of the largest state in the contiguous fortyeight states and the nation’s capital, thr ough Washington’s downtown airport can only be characterized as enhancing travel options. JetBlue currently provides service to
Austin as described herein from six major metropolitan markets, but none from Washington. Travel between these the tw o capital cities, Washington and Austin, will be enhanced allowing those who have business in Washington or Austin to access their representatives in a manner and with an eas e that has not and will not exist until JetBlue’s proposed service is approved. 29



### f. Positive Impact on Over all Level of Competition

The entry of JetBlue into any market, as discussed in the introduction, provides a proven and unique level of price and service competition that has not and will not be realized without approval of t he proposed service to San Juan and the service to Austin.
The dramatic and immediate im pact of the introduction of JetBlue into what are otherwise stagnant markets characterized by high prices and low traffic is well
documented. As set out above, the introducti on of lower prices and excellent service

28 JetBlue forecasts that its new low fare service will initially stimulate 41,610 annual new customers in the market.

29 JetBlue forecasts that its new low fare service will initially stimulate 36,500 annual new customers in the market.28 

### stimulates the market, gr owing the number of travel ers between DCA and both new destinations. Few, if any, carriers can point to a record of developing markets for the benefit of consumers as JetBlue has during its twelve-year operat ing history, while simultaneously establishing the highest standar ds for coach travel as described above.

g. Produce Public Benefits, such as Lower Fares, Higher Capacity and Service Options
San Juan

The public benefit from the approval of JetBlu e’s service to San Juan will satisfy all of the statutory criteria fo r approval. Lower fares, increased capacity and expanded service options are the hallmark of JetBlue and have resulted in almost every instance
where JetBlue has entered a market domi nated by carriers that have not faced competition on any basis, price or service. The unique benefit of approval of the Puerto
Rico service is the fulfillment of the Obam a administration’s goal of fostering and sustaining the economic development in Puer to Rico by providing San Juan with a new nonstop service to and from the nation’s capital. 30 

### The projected reduction in air fares and the provision of new modern aircraft in a market serviced today only by a mainline
carrier from the less convenient Dulles Airport produces uniqu e public benefits far beyond any that other carriers’ can offer.

Austin

Likewise, service between the capital of Texas and Washington, D.C., with fares and service that will only stimulate and grow the market, are uni que public benefits

30 See Executive Order 13517 (Oct. 30, 2009) (directing that it is “the policy of the executive branch to improve the treatment of Puerto Rico in Federal programs and to promote job creation, education, health care, clean ener gy, and economic development on the islands.”).29 

### unavailable from any other carrier. JetBlue’ s proven track record of entering a market, offering lower fares, stimulating the market and providing superior service should be the foundation for any decision based upon the weighing of public ben efits. No other carrier
can combine the use of the newest fl eet, and the unquestioned superior product and proven track record of developi ng new markets for the public.

VII. Conclusion

Based upon the forgoing, JetBlue respectfully requests the Department award it two (2) slots to operate service between DCA and SJU fo r the reasons set forth above. If, and only if, the SJU service proposal is selected, JetBlue also requests that it be awarded two (2) slots for service between DCA and Aust in, Texas, again for the reasons set forth
herein.

March 12, 2012 Respectfully submitted,

Robert C. Land Senior Vice Pres ident for Government Affairs and Associate General Counsel30 

### Certificate of Service
I, J. Parker Erkmann, hereby certify that a copy of the foregoing Application of JetBlue Airways Corporation was served this 12th day of March 2012 via email transmission on the following persons:

dhainbach@ggh-airlaw.com john.varley@virginamerica.com jyoung@yklaw.com leslie.abbott@wnco.com howaard.kass@usairways.com carl.nelson@aa.com dan.weiss@united.com rbkeiner@crowell.com Sascha.vanderbellen@delta.com john.fredericksen@suncoutry.com robert.cohn@hoganlovells.com marshall.sinick@squiresanders.com charles.donley@squiresanders.com quince.brinkley@mwaa.com Susan.Kurland@dot.gov Esta.Rosenberg@dot.gov Todd.Homan@dot.gov brian.ctr.meehan@faa.gov fbavent@airlineinfo.com

and via First Class Mail:

Arnaldo Deleo General Manager Aviation Bureau Port Authority Government of Puerto Rico PO Box 362829 San Juan, PR 00936-2829 Jim Smith Executive Director Austin-Bergstrom International Airport 3600 Presidential Blvd Austin, TX 78719

s/ J. Parker Erkmann J. Parker Erkmann

# Exhibit A Letters of SupportLu1s G. FoRTUNO GovERNOR



### March 8, 201 2

The Honorable Ray L aHood Secretary GOVERMENT OF PUERTO RICO



### U.S

. Department of Transportation 1200 New Jersey Avenue, SE Washington, DC 20590

Dear Secretary LoHood:

On behalf of the 3.7 million U.S. citizens residing in Puerto Rico, I write to express my f ull support for th e application by JetBiue Airways for beyond perimeter slot exemptions at Ronald Reagan Washington National Airport (DCA), to provide nonstop round trip service to San Juan, Puerto Rico as filed under Docket DOTOST-2012-0029. Throughout my administration, I have been committed to turning around Puerto Rico's economy. With the implementation of creative initiatives and new reforms, we are creating a better business environment in Puerto Rico and positioning the Island for long-t e rm growth. To support thi s con tinue d growth, our business and tourism sectors depend heavily on essential air access to strategic routes in the mainland U.S., where over 80 percent of our tourism traffic is generated. Our focus and effor ts are already producing results with a 5 percent in crease in weekly flight departures in 2012, sustaining Puerto Rico's position as th e largest air services market in th e Caribbean.

The addition of this unique and new direct service to DCA provides a key opportunity for Puerto Rico and the traveling public. This direct link between the heart of our nation's capital and the Caribbean would in crease the compet itiveness of our Island, as well as other U.S

. destinations in the region

. Visitors to and from the greater Washington area would be provided a low -fare direct option, something la cking over the last few years, that would feed the successful tourism growth in our hotel and cruise sectors. Business and government officials would be able to easily connect to and from the Island,

LA FORTALEZA , SAN JuAN , PR 00901 * PO Box 9020082, SAN JuAN, PR 00902-0082 PHONE:(787) 721-7000 *FAX: (787) 722-4300

### The Honorable Ray LaHood Page 2 March 8, 201 2

increasing economic opportunities and fostering essential business ties key to the long-term economic growth of our region.

JetBiue is Puerto Rico's largest air carrier and since arriving on the Island, has expanded to key markets in the region, including St. Thomas, St. Croix, St. Maarten and Santo Domingo. JetBiue also partners with Cape Air for added regional service co nnecting at San Juan. On the mainland, JetBiue's nonstop, large jet service has expanded from JFK to Boston, Hartford, Newark, Fort Laud erda le , West Palm Beach, Orlando, Tampa and Jacksonville.

The level of direct air service from San Juan to Washington has decreased over recent years, while fares have continued to rise. Remaining direct service is through either Baltimore Washington International Airport or Dulles International Airport, both quite distant from downtown Washington's business corr idor and government offices.

I thank you for your consideration and urge you to award JetBiue the slot exemptions necessary to serve cus tomers with nonstop round trip serv i ce between DCA and San Juan, Puerto Rico. The addition of this unique nonstop, a first of its kind, would create growth opportunities in the Caribbean region and be of great benefit to all residents of and travelers to Puerto Rico. Sincerely,

# Lui**~**March 12, 2012

The Honorable Ray LaHood Secretary US Department of Transportation 1200 New Jersey Avenue, SE Washington, D.C. 20590

Dear Mr. Secretary: GOVERNMENT OF PUERTO RICO

As the Aviation Director and General Manager for Luis Munoz Marin International Airport (SJU) in San Juan, Puerto Rico, I am writing 

## to express my strong support for the application by JetBiue Airways for slot exemptions at Ronald Reagan Washington National Airport (DCA), for nonstop round trip service to San Juan.

Puerto Rico serves as a hub for many Caribbean destinations and is the largest air service market in the region. Since its introduction in the Island, JetBiue has grown to become Puerto Rico's largest low fare, hometown airline. On the U.S. mainland, their nonstop, large jet service has expanded from JFK to Boston, Hartford, Newark, Fort Lauderdale, West Palm Beach, Orlando, Tampa and Jacksonville, while in the caribbean, JetBiue has also expanded to key markets including St. Thomas, St. Croix, St. Maarten and Santo Domingo. The airline has also partnered with Cape Air for additional regional service connecting at San Juan.

The level of service from San Juan to DC has decreased over the years and fares have risen. Current limited nonstop service from San Juan to DC is through either BWI or Dulles, which can be inconvenient and quite distant for travelers visiting downtown Washington and federal government offices. The addition of this unique nonstop, a first of its kind, would be of great benefit to SJU and indeed all Puerto Rico residents and visitors.

I urge you to award JetBiue the slot exemptions necessary to serve DCA on a nonstop round trip basis from San Juan, Puerto Rico.

P .0. Box 362829, San Juan, PR 00936·2829DO NN A M

. C H RIS T ENSEN
DELEGATE, VIRG I N I SLANDS

COMMI TI EE ON ENERGY AND COMMERCE

MEMBER, SUBCOMMITTE E ON OVERSIGHT AND INVESTI G AT I ONS

MEMB E R, SUBCOMMITTE E ON COMMUNICAT I ONS AND TECHNOLOGY

FIRST VICE PRESIDEN T , CONGRESSIONAL B L ACK C AUCUS MEMBER, CONGRESSIONAL CAUCUS FOR WOMEN'S I SSU ES
ASSISTANT M INORI TY WHIP



### Hon

. Ray LaHood Secretary 

# ([ongre9'9' of tbe 1lntteb**~tate9' J!}ou~e**  

# of**l\epre~entattbe~** 

### Masbington, 

## tJB(( 20515-5501 March 12, 2012

United States Department of Transportation 1200 New Jerse y Avenue, SE Washington, D.C. 20590

Dear Mr. Secretary: D

D

D

D P L E ASE RESPOND To:
WAS HI NGTON OF FICE

15 1 0 LONGWORTH HOUSE OFFICE BUI L DING WASHINGT O N, D C 20515 (202) 225-1790 FAX ( 202)225

- 5517

DISTRICT OFFICES

SUNSHIN E MALL SPACE #204

- 205 #1 E STATE CAN E FA E D E RIKSTED, VI 00840 P.O

. Box 5980 C 'S TED, ST

. CROIX, VI 00823 1340 ) 778

- 5900 FAX (3 4 0 ) 778

- 5111

8000 N I SKY CEN TE R, SU I TE No. 207 S T

. THOMAS, VIRGIN I SLANDS 00802 I 340 I 77 4 -4408 FAX (340) 774

- 8033

# 1 09 CONTANT

- ENIGH E D

C R U Z BAY , ST

. JOHN U.S

. VIRGIN ISLANDS 0083 1 ( 340 ) 776-1212



### I am writing to express strong support for the application of JetBlue Airways for exemption slots at Ronald Reagan Washington National Airport (DCA) for non-stop service to Luis Munoz Marin International Airport in Carolina, Puerto Rico (SJU)

.
J etB lu e already flies between SJU a nd Cyril E. King Airport in St. Thomas (STT) a nd Henry E. Rohlsen Airport in St. Cro i x (STX) in the U.S. V irgin I sla nd s

. It a lso partners with Cape Air for service with in the Virgin Islands.

Touri sm i s the mainstay of the economy of our territory. This industry would be greatly enhanced by non-stop service from DCA to SJU connecting with flights to STT and STX. It would provide a much more direct a nd lower fare option for tourists as well as business and government travelers.

Service between the Washington, DC area and the USVI has decreased over the years and fares have risen. Much of the remaining service is through either Thurgood Marshall Airport (BWI) or Dulles International Airport (lAD), which are both much more distant from the District of Columbia and close-in suburbs

. The addition of this first non-stop service from DCA would be of great benefit to our economy and all USVI residents and

v i sitors.

I urge you to award JetBlue the slots necessary to serve the DCA-SJU rout e on a non- stop basis.

Thank you for your consideration.

P RIN TED ON RECYC L E D PAP E RTHE UNITED STATE..'i VIRGIN ISLANDS
OFFICE OF THE GOVE RNOR

GOVERNMENT HOUSE Charlotte Amali e , V.I. 00802 340-774-0001



### The Honorable Raymond H. LaH ood Secretary of Transportation 1200 New Jersey A venue, S E Washington, D.C. 20590-1898

Dear Mr. Secretary: March 9, 2012

I am writing to express the strong support of the Government of the U

. S. Virgin Islands for the application of JetBlue Airways for exemption slots at Ronald Reagan Washington National Airport (DCA) for non

- stop service to Luis Mufioz Marin International Airport in Carolina, Puerto Rico (SJU).

JetBlue already flies between SJU and Cyril E. King Airport in St. Thomas (STT) and Henry E. Rohlsen Airport in St. Croix (STX) in the U.S. Virgin Islands. JetBlue also partners with Cape Air for service within the Virgin Islands.

Tourism is the mainstay of the economy of the Virgin islands. The competit i veness of
our industry would be greatly enhanced by new non-stop service by JetBlue from DCA to SJU connecting with flights t o SIT and STX. It 

### would provide a more direct and lower fare option for tourists as well as business and government travelers.

Direct service between the Washingt o n, DC area and the Virgin Islands has decreased
over the years and fares have risen

. Much of the remaining service is through either Thurgood Marshall Airport (BWI) or Dulles International Airport (lAD), both of which are much more distant from the District of Columbia and Washington's close

- in suburbs. I believe that the addition of non

- stop service from DCA to the U.S. Caribbean will have tremendous appeal to the traveling public as well as greatly benefit our economy.

### The Honorable Raymond H. 

### LaHood March 9, 2012 Page2
Accordingly, 

### I respectfully urge your support for JetBlue's application and the award of the requested slots necessary to serve the DCA-SJU route on a 

### non-stop basis.

Thank you for your consideration.

# ~f~**~ ~;** **.de ~W** **U.** Governo r

pc: The Honorable Luis Fortufio, Governor of Puerto Rico Beverly Nicholson-Doty , Commissioner, Department of TourismPED R O R. P I ER LUI S I
PU E R T O R I CO

WAS H I N G TON OF FI CE : 12 1 3 L ONGWO R T H H OUSE OFFICE B UILDING (202) 225-26 1 5 FAX: (202) 225-2154

SAN JUAN OFFICE: 1 57 A V ENIDA DE LA CONSTITUCION ANTIG U O EDI FI C IO DE M E DICINA T R O P ICA L A L

A DE ENFERMER f A 2DO PISO SA N JUAN, P UERTO RICO 0 090 1 (787) 723-6333 FAX: (787 ) 729-7738 

### March 9, 2012 

# Qtnngr.e!l6 nf tq.e l!tnit.eb :§tat.es 1!fous.e of l.epr.es.entatiu.es 1In.al7tngton, 1!1(!120515-5401

The Honorable Ray LaHood Secretary U.S. Department of Transportation 1200 New Jersey Avenue, S.E. Washington, DC 20590

Re: JetBlue Airways DCA-SJU Application for DOT-OST-2012-0029

Dear Secretary LaHood: COMMITTEES: ETHICS

JUD I C I ARY

NAT U RAL R ES OUR C ES



### I write to express my strong support for the application filed by JetBlue Airways for two of the eight beyond-perimeter slot exemptions being made available to limited incumbent carriers for
new service at Ronald Reagan Washington National Airport (DCA) pursuant to Section 414 of the FAA Modernization and Reform Act of 2012. 

### If this application is approved, JetBlue would
commence nonstop service between Luis Munoz Marin International Airport (SJU) in San Juan , Puerto Rico and DCA.

I support timely approval of this application for two principal reasons. First, nonstop service between SJU and DCA would e x pand consumer choice for the 9.4 million residents of both markets-that i s, the 5.6 million re s idents of the Washington, D.C

. metropolitan area and the 3

. 8 million re s idents of Puerto Rico and the U.S. Virgin I s lands. JetBlue would fill a void for the se market s, since there is no direct flight currently offered between these two airports.

Second , I support the application becau se s uch non sto p s ervice would enhance travel and trade between San Juan

- a U.S. jurisdiction and the leadin g economic, industrial and political center in the Caribbean region-and our nation's capital. Such direct service would further bu s in ess tie s, a th·act inve stm ent , and faci lit ate government-to-government contacts between the two cities

. Important l y, direct se rvice would provide U.S

. trav e l ers an additional means to connect with the maritime cruise industry that operates in and out of Puerto Rico. Increasing the numb er of cruise ships that choose to homeport and embark pa sse ngers in San Juan i s an economic development goa l of the govenunent of Puerto Rico, and thi s fli g ht would give th e cruise industry added incentive to make San Juan its hom epmi since there would be an addi tional air lin k for its customers.

JetB lu e i s repmied to have grown nearly 40 percent o ve r the l ast year in Puerto Rico, and no w off e

r s more sea ts to and from th e I s land than any other airline. Currently, J etB lue operates nonstop fli g ht s b etwee n San Ju a n and JFK , Bo s ton , Fort Lauderdale, Orlando , Tampa , Jack sonvi lle , Santo Domingo , a nd St. Maarten

. Next month, JetBlue i s sched ul ed to add non s top serv ic e between Sa n Juan a nd Newark

. These flight s comp lement th e twic e-dai l y flight the a irlin e

PR I N TED ON R EC Y C L E D P A PER

### operates between San Juan and St. Thomas and the once-dai l y flight i t operates between San Juan and St. Croix

- which cmmect the U.S. Virgin Islands to key hub airports in the national air transportation system.

JetBlue has also established a codeshare agreement with Cape Air to ensure it s passengers can cmmect seam l essly to flights from San Juan to the westem Pue1io Rico city of Mayagiiez and from San Juan to Vieques, a non-contiguous Puerto Rico municipality that is dependent upon this air link. Cape Air also connects Pue1io Rico with Tortola and Anguilla.

JetB l ue's impressive presence in the San Juan and Caribbean markets-and its partnership with Cape Air-demonstrate its strength as one of our nation's leading low-cost airlines, its capacity to sustainably operate the route it seeks approval to offer, and its commitment to the U.S. jurisdiction ofPuerto Rico.

As you make decisions as to which carriers to grant these new slot exemptions at DCA, I respectfully request that you take into full account my support for JetBlue's DCA-SJU application , consistent with all applicable laws , agency regulations and established guidelines. Thank you for your consideration.

Sincerely,

Pedro R. 

### Pierluisi Member of CongressRonald E. Russell, Esq

. President 29th Legislature

Chair: Committee of the Whole

Member: Committee on Rules

and the Judiciary

Committee on Government Operations , Energy &

Veterans ' Affair s

Committee on Publ ic

Safety , Homeland Security & Justice

::ommittee on Planning & Environmental Protection 

# 1Legtslature of tbe )}trgtn**3Jslanb~** No.1 Lagoon Street Complex, Frederiksted, VI 00840 Capitol Building-Old Barracks Yard P.O. Box 1690, St. Thomas, VI 00804·1690



## Office of the Senate President

Hon. Ray LaHood Secretary U.S. Department of Transportation 1200 New Jersey Avenue, SE Washington, D.C. 20590

Dear Mr. Secretary: March 9, 2012 TEL : (340) 712·2379 FAX : (340) 712-2340 SIT : (340) 693-3608



### I am writing to express strong support for the application of JetBlue Airways for exemption slots at Ronald Reagan Washington National Airport (DCA) for non-stop service to Luis Munoz Marin International Airport in Carolina, Puerto Rico (SJU). JetBlue already flies between SJU and Cyril E. King Airport in St. Thomas (STT) and Henry E. Rohlsen Airport in St. Croix (STX) in the U.S. Virgin Islands. It also partners with Cape Air for service within the Virgin Islands.

Tourism is the mainstay of the economy of our territory. This industry would be greatly enhanced by non-stop service from DCA to SJU connecting with flights to STT and STX. It would provide a much more direct and lower fare option for tourists as well as business and government travelers.

Service between the Washington, DC area and the USVI has decreased over the years and fares have risen. Much of the remaining service is through either Thurgood Marshall Airport (BWI) or Dulles International Airport (lAD), which are both much
more distant from the District of Columbia and close-in suburbs. The addition of this first non-stop service from DCA would be of great benefit to our economy and all USVI residents and visitors. I urge you to award JetBlue the slots necessary to serve the DCA-SJU route on a nonstop basis.

Thank you for your consideration.

# ~ Ronald E. Russell, Esq.

"Your Future, Our Mission"Mayor Lee Leffingwell · 301 Willie Nelson Boulevard, Austin, Texas 78701 · www.mayorleffingwell.com Office (512) 974-2250 · Fax (512) 974-2337 · Lee.Leffingwell@austintexas.gov



### March 12, 2012

The Honorable Ray LaHood Secretary US Department of Transportation 1200 New Jersey Avenue, SE Washington, D.C. 20590

RE: Docket DOT-OST-2012-0029 Dear Mr. Secretary: On behalf of the residents of Austin, Texas, I am writing to you to express my very strong support for the application by JetBlue Airways for exemption slots at Washington, D.C.’s Ronald Reagan Washingt on National Airport (DCA), for nonstop capital to capital service to Austin.

Austin is the 14 th 

### largest city in the United States wi th a population of over 800,000, an increase of 37 percent since 2000. We an ticipate continued growth to reach two million by 2015, making Austin the third fastest growing city in the nation. The City of Austin is the owner and ope rator of Austin-Bergstrom International Airport (ABIA) which has enjoyed 25 consecu tive months of passenger growth and which set another passenger record in 2011. ABIA is the third largest airport in Texas (after DFW and Houston IAH) and serves 5. 1 million Texans residing within 100 miles of ABIA. Nonstop service between the capital of Texas and the capital of the U. S. is long overdue.

The citizens of Austin have worked hard for and supported service additions by new carriers. Since JetBlue began daily nonst op service from Austin to New York JFK International Airport and Boston Logan Ai rport in 2006, fares have dropped as the number of Austinites traveling has increased. With further expansion to San Francisco and Orlando, the community responded to Je tBlue service with support and benefited from lower fares. The community, both busi ness and leisure, stands ready to support this new service to DCA as well.

The City of Austin is committed to complian ce with the Americans with Disabilities Act. Reasonable modifications and equal access to communications will be provided upon request

### Austin has important commercial and govern mental links with Washington, D.C. Twenty-nine Austin companies are headquarter ed in the D.C. area and Austin is home to a dozen national associations. In additi on to the natural linkages between the capital of the third largest state and the U. S. capita l, Austin’s high tech industry provides IT services to a variety of federal agencies. The growing local economy in Austin relies on quality air service to foster business, government and leisure travel. I urge you to award the slot exemptions necessary to serve DCA on a nonstop basis from Austin, Texas. Thank you for your consideration. Sincerely,

Lee Leffingwell Mayor

The City of Austin is committed to complian ce with the Americans with Disabilities Act. Reasonable modifications and equal access to communications will be provided upon request

# Exhibit B JetBlue Customer Service Awards

## Year Award Source
2011 Best Airline Website Booking Experience U.S. Air Travelers’ Choice Award 2011 Best U.S. Budget Airline About.com 2011 Excellent Web Service 2010 Compuware Gomez Web & Mobile Performance Awards 2011 Best Value Airline (Domestic), Most Customer Friendly Airline, and Best Coach Class Experience Travel 2011 Editor's Choice Awards

2011 Top Low Cost Airline for Customer Satisfaction JD Power and Associates 2010 Top Low Cost Airline for Customer Satisfaction JD Power and Associates 2010 Spot on list of Top Technology Innovators Across America Information Week 500

2010 Top Rated Large Domestic Airline' for Economy and 'Best In

‐ flight Entertainment' for Domestic Flights Zagat Airline Survey

2010 Best Cabin Ambiance Passenger Choice AwardsTM, Airline Passenger Experience Association (APEX) 2010 #1 Airline Brand 2010 Brand Keys Customer Loyalty Engagement Index® 2010 CIO 100 Award Honoree CIO Magazine 2010 Best Concessions Program Design (T5/JFK) ARN's Best Airport and Concessionaires Awards

2010 Most Unique Services (T5/JFK) ARN's Best Airport and Concessionaires Awards

2010 Best Overall Concessions Program (T5/JFK) ARN's Best Airport and Concessionaires Awards

2010 Best Concessions Management Team (T5/JFK) ARN's Best Airport and Concessionaires Awards

2010 Best Coach

‐ Class Experience SmarterTravel Editors' Choice Awards 2010 Most Customer

‐ Friendly Airline SmarterTravel Editors' Choice Awards 2010 Most Pet

‐ Friendly Airline for Carry

‐ on Pets SmarterTravel Editors' Choice Awards 2009 Best Airline Brand 2009 Brand Keys Customer Loyalty Engagement Index® 2009 Best Environmental Campaign ‐ Jetting to Green Cause Marketing Forum 2009 Best Rated Large Domestic Airline in the Economy Category Zagat Airline Survey

2009 #1 Airline Brand 2009 Brand Keys Customer Loyalty Engagement Index® 2009 Richard A. Griesbach Award of Excellence Winner ACI

‐ NA 2009 Airport Concessions 2009 #1 U.S. Routes/Single

‐ Class Service Airline Condé Nast Traveler 2009 Top

‐ Rated Large Domestic Airline ‐ Economy Seating Zagat Airline Survey 2009 Best In

‐ Flight Entertainment ‐ Domestic Zagat Airline Survey 2009 5th Annual Extra Miles Awards Budget Travel Magazine 2009 CIO 100 Award Honoree CIO Magazine 2009 Top Low Cost Airline for Customer Satisfaction J.D. Power and Associates 2009 AIGA Corporate Leadership Award AIGA ‐ The Professional Association for Design 2008 Best Large U.S. Economy Class Zagat Airline Survey 2008 Best Inflight Entertainment Zagat Airline Survey 2008 Most Eco

‐ Friendly Zagat Airline Survey 2008 Silver Halo ‐ Best Environmental Campaign ‐ Jetting to Green Cause Marketing Forum

2008 Best In

‐ Seat Comfort SmarterTravel Readers' Choice Awards 2008 Best Onboard Entertainment, Domestic Airline SmarterTravel 2008 Readers' Choice Awards 2008 Top Low Cost Airline for Customer Satisfaction J.D. Power and Associates

## Year Award Source
2007 Best Domestic Airline Condé Nast Traveler Readers' Choice Awards 2007 Top Low Cost Airline for Customer Satisfaction J.D. Power and Associates 2007 Best North American Low Cost Airline Skytrax World Airline Awards 2007 World's Most Reliable A320 Fleet Airbus Operational Excellence Awards 2007 #1 Airline Brand 2007 Brand Keys Customer Loyalty Engagement Index® 2007 Best Low Cost/No Frills Airline OAG, 2007 Airline of the Year Awards 2007 Leading Provider of Domestic Airfare Deals Travelzoo Awards 2007 Best U.S. Airline Airline Quality Ranking Survey 2007 #2 rated airline University of Nebraska at Omaha Aviation Institute and W. Frank Barton School of Business at Wichita State University 2007 Best Domestic Airline for Value Travel + Leisure, World's Best Values Awards 2007 Most Admired Companies Fortune magazine, #3 rated airline 2007 Best Airline for Customer Satisfaction Market Metrix 2006 Best Domestic Airline Condé Nast Traveler, Readers' Choice Awards 2006 Extra Mile Award (shut

‐ eye/snack bar services) Frommer's Budget Travel 2006 Top U.S. Airline for Consumer Demand Kanbay Research Institute 2006 Travel Demand Today Report 2006 Best Domestic Airline Travel + Leisure World's Best Values Awards 2006 Best Domestic Airline for Value Travel + Leisure, 2006 World's Best Values Awards

2006 #1 Airline Brand 2006 Brand Keys Customer Loyalty Engagement Index® 2006 Highest Low

‐ Cost Carrier Customer Satisfaction J.D. Power and Associates 2006 Best U.S. Airline Airline Quality Ranking Survey, University of Nebraska at Omaha Aviation Institute and W. Frank Barton School of Business at Wichita State University 2006 Best Low Cost/No Frills Airline OAG Airline of the Year Awards 2006 Best Airline Value Entrepreneur Magazine 2006 Passenger Service Award Air Transport World Magazine 2005 Best Value for Cost Condé Nast Traveler Business Travel Awards 2005 Best Low

‐ Cost Carrier Condé Nast Traveler Business Travel Awards 2005 Best Domestic Airline Condé Nast Traveler Readers' Choice Awards 2005 Best Airline for Economy Class Global Traveler magazine 2005 Best Low

‐ Cost Carrier Global Traveler magazine 2005 #1 Airline Brand 2005 Brand Keys Customer Loyalty Engagement Index® 2005 #2 Domestic Airline Zagat Airline Survey 2005 Great Gay Marketing Award Out & About Travel Magazine Travel Awards 2005 #10 Top Performing Medium Airline Aviation Week & Space Technology Magazine Top

‐ Performing Companies 2005 #17 Most Improved Medium Airline Aviation Week & Space Technology Magazine, 2005 Top

‐ Performing Companies 2005 #47 & 48 Reasons to Love Your Country GQ Magazine, "62 Reasons to Love Your Country"

2005 Silver Award (JetBlue's Self

‐ Service Check

‐ In Kiosk) Business Week Magazine, 2005 Annual Design Awards 2005 #25 JetBlue/Sky's The Limit Wired Magazine, The Wired 40 "masters of technology and innovation"

## Year Award Source
2005 Best Branding The Association of Travel Marketing Executives (ATME), 2005 Atlas Awards 2005 World's Best Low

‐ Cost Airline Skytrax Airline of the Year Survey 2005 #2 Airline in North America Skytrax Airline of the Year Survey 2005 Top

‐ Hospitality Airline Market Metrix Hospitality Index 2005 Best Airline Quality The Wall Street Journal Airline Quality Survey 2005 Best Airline Service The Associated Press, 2005 Annual Survey 2005 Corporate Community Partnership Award American Red Cross 2005 Best U.S. Airline Customer Satisfaction J.D. Power and Associates 2005 Best Domestic Airline North American Travel Journalists Association 2005 Best Value for Cost Condé Nast Traveler Business Travel Awards 2005 Great Gay Marketing Award Out & About Travel Magazine Travel Awards 2005 #10 Top Performing Medium Airline Aviation Week & Space Technology Magazine Top

‐ Performing Companies 2005 #17 Most Improved Medium Airline Aviation Week & Space Technology Magazine Top

‐ Performing Companies 2005 Silver Award (JetBlue's Self

‐ Service Check

‐ In Kiosk) Business Week Magazine Annual Design Awards

2005 JetBlue/Sky's The Limit Wired Magazine, The 40 "masters of technology and innovation" 2005 Best Branding The Association of Travel Marketing Executives (ATME) Atlas Awards 2005 World's Best Low

‐ Cost Airline Skytrax Airline of the Year Survey 2005 #2 Airline in North America Skytrax Airline of the Year Survey 2005 Top

‐ Hospitality Airline Market Metrix Hospitality Index 2005 Best Airline Quality The Wall Street Journal Airline Quality Survey 2005 Best Airline Service The Associated Press Annual Survey 2005 Corporate Community Partnership Award American Red Cross 2005 Best U.S. Airline Airline Quality Ranking Survey, University of Nebraska at Omaha Aviation Institute and W. Frank Barton School of Business at Wichita State University 2005 Best U.S. Airline Customer Satisfaction J.D. Power and Associates Reports, 2005 Airline Satisfaction Index Study 2005 Best Domestic Airline North American Travel Journalists Association 2004 #1 Airline Brand 2004 Brand Keys Customer Loyalty Engagement Index® 2004 Best U.S. Service Business 2.0, 2004 Omaha Aviation Institute's Quality Ranking Survey 2004 Best Corporate Service USTA/Eastern Corporate Service 2004 Best U.S. Airline Airline Quality Ranking Survey, University of Nebraska at Omaha Aviation Institute and W. Frank Barton School of Business at Wichita State University 2004 Best Domestic Airline Condé Nast Traveler, 2004 Readers' Choice Awards

2004 Best Domestic Airline Condé Nast Traveler Business Travel Awards 2004 Best Value for Cost Condé Nast Traveler Business Travel Awards 2004 #2 Domestic Airline Travel & Leisure World's Best Awards 2004 #2 Domestic Airline Service Travel & Leisure World's Best Service Readers' Poll Awards

## Year Award Source
2004 Best Domestic Airline North American Travel Journalists Association, 5

‐ Star Award 2004 North America's Leading Budget Airline 11th Annual World Travel Awards 2004 Top 5 Domestic Airline Departures Readers' Favorite Survey 2004 Best Low Cost Carrier in the World Global Traveler Magazine 2004 Best Low Cost Carrier (Second Place) Executive Travel Magazine 2004 Best in Executive Travel Executive Travel Magazine 2004 Airline Excellence Award, North America Skytrax, 2004 Airline of the Year Survey 2004 Best Low Cost Airline Skytrax Airline of the Year Survey 2004 Best Cabin Staff, North America Skytrax Airline of the Year Survey 2004 Best Airline New York Press, Best of Manhattan Readers' Poll

2004 Favorite U.S. Airline Salon.com, Readers' Choice 2004 Most Wanted List Gotham 2004 Best Company in North America Global Finance Magazine 2004 Best CFO (John Owen) Institutional Investor Magazine 2004 Airline Customer Loyalty Award Brandweek 2004 Corporate Service Award United States Tennis Association, Eastern Corporate Service Award 2003 Best Domestic Airline Condé Nast Traveler, 2003 Readers' Choice Awards

2003 Best Value for Cost Cond ́ Nast Traveler, 2003 Readers' Choice Awards

2003 Best Domestic Airline North American Travel Journalists Association, Five

‐ Star Award 2003 #1 Airline Brand Brand Keys Customer Loyalty Engagement Index®

2003 #2 Domestic Airline Travel & Leisure World's Best Awards 2003 Top 5 Domestic Airline Departures, Readers' Favorite Survey 2003 #3 World's Best Low Cost Airline (Best U.S. Low Cost Airline) Business Traveler World's Best Airlines Awards

2003 Best Budget Airline 10th Annual World Travel Awards 2003 Best US Airline (Non

‐ Major) Business Travel News Airline Survey 2003 Best Low Cost Airline Entrepreneur Magazine 2003 Best Low Cost Airline Skytrax Airline of the Year Survey 2003 Best Cabin Staff, North America Skytrax Airline of the Year Survey 2003 Airline of the Year Airfinance Journal Deal of the Year 2003 North American Corporate Finance Deal of the Year Airfinance Journal Deal of the Year 2003 Airline Customer Loyalty Award Brandweek 2003 IPO of the Year Corporate Finance Magazine 2003 Marketing Award Airline Business Strategy Award 2003 Editors' Choice Travel

‐ Holiday 2003 Outstanding Inflight Entertainment Onboard Services Onboard Services Awards 2003 Outstanding Safety Video Onboard Services Onboard Services Awards 2002 Best Domestic Airline Condé Nast Traveler, 2002 Readers' Choice Awards

2002 Best Domestic Airline, coach Condé Nast Traveler, 2002 Readers' Choice Awards

2002 Best Domestic Airline, Value For Cost Condé Nast Traveler, 2002 Readers' Choice Awards

## Year Award Source
2002 Best Domestic Airline North American Travel Journalists Association, Five

‐ Star Award 2002 #2 Domestic Airline Travel and Leisure, 2002 World's Best Awards 2002 Best Low

‐ Cost Carrier (Runner

‐ Up) Business Traveler Best in Business Travel Awards

2002 "It" Airline Entertainment Weekly It List 2002 Editor's Choice Worth 2002 Marketer of the Year Advertising Age 2002 #4 Brand of the Year brandchannel.com, 2002 Readers' Choice 2002 Finance Award Airline Business Airline Strategy Awards 2002 Market Development Award Air Transport World Industry Achievement Awards

2002 Best Overall Airline Onboard Services Onboard Service Awards 2002 Best Inflight or Onboard Service Onboard Services Onboard Service Awards 2002 Best Onboard Entertainment Onboard Services Onboard Service Awards 2002 Best Uniforms (2nd Place) Onboard Services, 2002 Onboard Service Awards

2001 Best Domestic Airline, Coach Condé Nast Traveler Business Travel Awards 2001 Best Domestic Airline North American Travel Journalists Association, Five

‐ Star Award 2001 #2 Domestic Airline Condé Nast Traveler Reader's Choice Awards 2001 #2 Domestic Airline Zagat Airline Survey 2001 Best New Airline Money 2001 Favorite U.S. Airline Orange County Register/Knight Ridder 2001 Seal of Approval Diversion 2001 "A" Rating Planetfeedback 2001 #2 Airline Epinions.com 2000 "It" Airline Vanity Fair It List

# Exhibit C Department of Transportation Press ReleaseHome About Briefing Room Services
Home / Releases & Speeches DOT 156-11 Thursday, December 1, 2011 

### JetBlue, WestJet Gain Slots at LaGuardia, Reagan National Airports

JetBlue Airways will gain additional slots at New York LaGuardia Airport and Ronald Reagan Washington National Airport, and Wes tJet Airlines will gain its first slots at LaGuardia, the U.S. Department of Transportation (DOT) announced today.
The two carriers have reached binding agreements with Delta Air Lines to acquire some of its operating authority, or “slots,” a t the two airports. A “slot” refers to a carrier’s authority to take off or land at an airport where flight operations are limited by the Federal Aviation Administratio n (FAA). DOT and the FAA required Delta and US Airways to divest a total of 48 slots amongst the two airlines as a condition for being able to exchange other slots they hold at the two airports. JetBlue and WestJet submitted successful bids for those slots in an auction conducted by the FAA. JetBlue currently operates a limited number of flights at b oth airports, and WestJet has no service at LaGuardia.
“As a result of the conditions we placed on the transfer between Delta and US Airways, consumers will benefit from new competit ion and services at both airports from airlines that previously had limited access, or no access at all, to those airports,” U.S. Transportation Secretary Ray LaHood said.
JetBlue will pay $40 million for eight pairs of daily slots at Reagan National and $32.0 million for eight slot pairs at LaGuardia. WestJet, a Canadian carrier, will pay $17.6 million for eight slot pairs at LaGuardia. A slot pair, or two slots, is required for a takeoff and landing during times when these rights are limited.
On Oct. 7, DOT approved a request by the carriers under which Delta would trade 42 daily slot pairs at Reagan National for 132 of US Airways’ daily slot pairs at LaGuardia. The Department placed a number of conditions on the trade to promote competition and protect consumers, including a requirement that the carriers divest themselves of eight pairs of daily slots at Reagan National and 16 pairs at LaGuardia by means of a blind auction administered by the FAA.
The bidding took place between Nov. 14 and Nov. 22, with bids submitted via e-mail. Only carriers having less than five percent of the slots at LaGuardia or Reagan National, and not code-sharing at the respective airport with a carrier that has five percent or more of the slots, were eligib le to bid for the divested slots at that airport. In order to ensure that a purchaser would be able to provide meaningful new competition, all eight slot pairs at Reagan National were sold in a single bundle, and the 16 pairs at LaGuardia were sold in two bundles of eight slot pairs each. JetBlue submitted the highest bids for all three slot bundles, but WestJet was awarded one bundle at LaGuardia because no carrier was permitted to acquire more than one bundle at that airport.
A total of seven carriers participated in the bidding for the slots. The others were Allegiant Airlines, Frontier Airlines, Sun Country Airlines, Southwest Airlines and Spirit Airlines.

-ENDContact: Bill Mosley • Tel: 202-366-4570

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# Exhibit D JetBlue Service from Ponce and Aguadilla

### Exhibit D


## JetBlue Service From Ponce and Aguadilla



## Additional JetBiue Puerto Rico Service

'd 

## •

0 b



### a not to scale

___________________ ____.

# Exhibit E Letter of Support from Cape Air

### March 12, 2012

The Honorable Ray LaHood Secretary 660 Barnstable Rd., Hyannis, MA 02601 sos**790~3122**



### US Department of Transportation 1200 New Jersey Avenue, SE Washington, D.C. 20590

Dear Mr. Secretary:

On behalf of the men and women of Cape Air, I am writing to express our strong support for the application of our partner JetBlue Airways as it seeks exemption slots at Ronald Reagan Washington National Airport for the first-ever nonstop service to San Juan, Puerto Rico.

San Juan is a key base of operations for Cape Air. During the peak season, we operate
over 800 flights each week from SJU, to seven locations, including St. Thomas, St. Croix, and Vieques. We currently have 80 employees based in Puerto Rico and 149 in the Caribbean. JetBlue, as the largest carrier in San Juan, has an interline agreement with Cape Air, and we connect customers with each other. With the addition of the new nonstop service, the regional economy will expand, tourism will grow and regional connections beyond San Juan, on JetBlue and Cape 

### Air will grow.
The addition of nonstop service between San Juan, Puerto Rico and DCA will be of great benefit to the economy of Puerto Rico and as such, I urge your favorable review of JetBlue's application.

Sincerely, 

# r**~?irl** President

# Exhibit F Cape Air SJU Route MapSJUMAZVQSSTXSTTEISAXANEVCapeAirSJURouteMapExhibitF

# Exhibit G JetBlue/Cape Air Connecting Flights for SJU-DCA Service

### Exhibit G

JetBlue/Cape Air Connecting F lights for SJU-DCA Service

Outbound Origin Destination Depart Arrive

DCA SJU 10:00 13:55

(Domestic) Origin Destination Depart Arrive SJU MAZ 16:00 16:40 (Cape Air) SJU STT 15:30 16:05 (JetBlue) SJU STX 14:50 15:31 (JetBlue) SJU VQS 15:40 16:04 (Cape Air)

(International) Origin Destination Depart Arrive

SJU AXA 14:55 16:15 (Cape Air) SJU EIS 15:55 16:42 (Cape Air) SJU NEV 15:21 17:00 (Cape Air) SJU SDQ 17:49 18:50 (JetBlue)

Return Origin Destination Depart Arrive

SJU DCA 11:05 15:05

(Domestic) Origin Destination Depart Arrive MAZ SJU 9:20 9:58 (Cape Air) STT SJU 9:25 10:00 (JetBlue) STX SJU 7:30 8:11 (JetBlue) VQS SJU 9:40 10:01 (Cape Air)

(International) Origin Destination Depart Arrive AXA SJU 8:45 10:05 (Cape Air) EIS SJU 9:25 10:00 (Cape Air) NEV SJU 7:45 9:15 (Cape Air) SDQ SJU 8:00 9:02 (JetBlue)

The minimum connect times are reflected for JetBlue to Cape Air of 0:50 for domestic and 1 hour international.

# Exhibit H JetBlue’s Proposed Service Will Reduce Travel Time

### Exhibit H


## JetBlue’s Proposed Service Will Reduce Travel Time

Minimum JetBlue one-way trip duration Minimum one-way trip duration over ATL, MIA, FLL, or CLT DCA-STT 6 hours 5 mins DCA-STT 6 hours 19 mins DCA-STX 5 hours 31 mins DCA-STX 6 hours 10 mins DCA-MAZ 6 hours 40 mins DCA-MAZ 8 hours 20 mins DCA-VQS 6 hours 15 mins DCA-VQS 6 hours 51 mins