Order 201 2

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- 12

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the De partment of Transportation

on the 18 th day of April , 201 2

Served: June 19 , 201 2

Docket DOT

- OST

- 20 11

- 0076

ORDER ISSUING CERTIFICATE

Summary

By this order we grant Spirit Airlines , Inc. (referred to as Spirit or t he captioned air carrier) consolidated certificate authority to provide combination service in various U.S.

- Mexico markets

for which Spirit holds economic authority by exemption.

Background and Consolidation Request

In furtherance of the Department’s re gulatory streamlining initiative for licensing U.S. air carriers, we announced by Notice on February 13, 2009 (February Notice) our intention to realign in response to carrier requests the existing non

- open

- skies economic authority held by carriers already holding a blanket open

- skies certificate into new consolidated certificates of public convenience and necessity. 1 We stated that we would realign economic authority involving markets, other than Mexico, that are not open

- skies partners of the United Stat es into two

certificates

– an indefinite duration certificate for markets that are not entry

- or frequency

- limited

and a five

- year certificate for limited

- entry or limited

- frequency markets so that all authority in

limited

- entry or limited

- frequency market s will have a common expiration date. We stated that we

would cover a carrier’s U.S.

- Mexico authority in a separate certificate, as a carrier must obtain

1 Notice dated February 13, 2009, in Docket DOT

- OST

- 2005

- 22228. In the Matter of Consolidated International Route Authority for:

SPIRIT AIRLINES, INC.

under 49 U.S.C. §41102 for a certificate of public convenience and necessity (U.S.

- Mexico)2 new economic authority on a city

- pair basis each time it proposes to add a new city

- pair market to

it s U.S.

- Mexico services.

We invited carriers to request realignment of their economic authority by submitting a letter to the streamlining docket, Docket DOT

- OST

- 2005

- 22228, 2 identifying the authority to be included in the new certificates. Specifically , the carrier must identify the authority it holds for a particular market, whether it is limited to code

- share services only, whether the market is entry

- or frequency

- limited, the number of the order in which the authority was granted (for previously

iss ued certificate authority) and the docket in which it was granted (for exemption authority). We stated that if no issues arise making it impractical to consolidate currently held authority as requested by the carrier, we would draft a self

- executing final order designed to issue the non

open

- skies market certificate(s) upon completion of the 49 USC 41307 Presidential review

process.

Spirit previously requested and was issued consolidated certificate authority for various non

- open

skies markets, other than U.S.

- Mexico city pair markets, which it was authorized to serve by exemption. 3 By letter dated March 7, 2012

, Spirit requested a consolidated U.S.

- Mexico certificate, and provided a listing of the U.S.

- Mexico city

- pair markets for which it seeks

consolid ation. 4

Decision

Under assigned authority and consistent with our streamlining and consolidated certificate initiative, we have decided to grant Spirit’s consolidation request and to reissue Spirit ’s existing economic authority to serve various city pair s in the U.S.

- Mexico market.

Spirit is eligible to receive the consolidated certificate, as described in the February Notice, as it holds a blanket open

- skies certificate. 5

Our action here establishes for the carrier a new route certificate, attached at Appendix A. Each

U.S.

- Mexico city

- pair market is included in the certificate as a route segmen t. We find that grant of the certificate is consistent with the public convenience and necessity. 6 We find further that the pending consolidated certificate r equest is not controversial and that it is appropriate to grant the authority at issue here under simplified procedures, as explained in the February Notice. 7

2 By Order 2012

- 1

- 30, we established the Mexico Procedural Docket and, among other things, directed U.S. carriers to file requests for consolidated U.S.

- Mexico certificate authority in Docket DOT

- OST

- 2011

- 0076.

3 See Order 2010

- 1

- 12 issued November 13, 2009.

4 The city

- pair markets for which Spirit seeks a consolidated certificate are listed in Appendix B. This Appendix also

identifies markets that are authorized to be served on a seasonal bas is.

5 By Order 2007

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- 3, Spirit was issued a Certificate of Public Convenience and Necessity for Route 852, authorizing the carrier to serve the open

- skies partners of the United States.

6 Based on officially noticeable data, the Department has found the captioned air carrier fit, willing, and able to engage in foreign scheduled air transportation of persons, property, and mail using large aircraft. See

Order 2010

- 1

- 12.

7 In accordance with 14 CFR § 302.207, et seq ., we may, in our discretion, om it a tentative decision in proceedings and proceed directly to a final decision.3 The authority in the attached certificate is consistent with the aviation agreement between t he United States and Mexico, authorizing the use of rights for which the United States has exchanged valuable operating rights. All of the authority conferred here contributes to the variety of price and service options available to travelers and shippers

.

We therefore find, under assigned authority, that the public interest warrants granting Spirit the consolidated certificate attached at Appendix A, subject to the conditions attached.

The attached certificate of public convenience and necessity i s subject to the standard terms, conditions, and limitations we consistently impose in the public interest. 8 The certificate holder may request amendment of the certificate to include newly obtained U.S.

- Mexico authority through the addition of a new rout e segment, as described in the February Notice.

Upon effectiveness, the authority granted by this order supersedes any orders previously issued or actions taken by the Department granting the carrier operating rights in the listed markets. For

those se rvices currently operated under an exemption, the exemption will terminate upon the effectiveness of the attached certificate of public convenience and necessity.

Findings and Conclusions

In view of the foregoing and all the facts of record, we find and conclude that:

1. It is consistent with the public convenience and necessity to issue the captioned air carrier the certificate attached as Appendix A to this order;

2. On the basis of data officially noticeable under 14 CFR 302.24 of the Department’s regulati ons, the captioned air carrier is a citizen of the United States and is fit, willing, and able to perform properly the foreign air transportation described in the attached certificate and to conform to the provisions of Subtitle VII of Title 49, United Sta tes Code (Transportation), and to the Department’s rules, regulations, and requirements;

3. The public interest requires that the exercise of the privileges granted by the attached certificate be subject to the terms, conditions and limitations contained in the attached certificate and to such others required by the public interest as the Department may prescribe;

4. The issuance of the attached certificate to the captioned air carrier does not constitute a major regulatory action under the Energy Policy and Co nservation Act of 1975, as defined by section 313.4(a)(1) of the Department’s regulations; 9 and

8 See Appendix B for the type of service (own

- aircraft vs. code

- share

- only) currently authorized in each U.S.

- Mexico city

- pair market, including the level of service (year

- ro und vs. seasonal) the carrier provides in each market. We remind the carrier to follow established procedures for requesting conversions of its direct

- carrier/code

- share authority and/or noticing service level changes.

9 Our finding is based on the fact that the grant of this application would not result in a near

- term increase in annual fuel consumption in excess of 10 million gallons.4 5. The public interest does not require an oral evidentiary hearing or a show

- cause proceeding on the application and the actions taken here. There are no materi al, determinative issues of fact requiring such procedures for their resolution.

In view of the above, and acting under authority assigned by the Department in its regulations, 14 CFR Part 385, we find our action here is consistent with Department policy.

ACCORDINGLY,

1

. We issue, as attached in Appendix A, a certificate of public convenience and necessity to Spirit Airl ines, Inc., covering U.S.

- Mexico city

- pair markets which Spirit Airl ines, Inc., is authorized to serve by exemption;

2. This orde r supersedes any orders previously issued or actions taken by the Department to the extent such order or action grants the carrier operating rights, by certificate or exemption, in markets covered by the attached certificate;

3. The certificate issued t o Spirit Airl ines, Inc., will be effective upon the service date of this order;

4. Unless disapproved by the President of the United States under 49 U.S.C. § 41307, this order shall become effective upon the 61st day after its submission for § 41307 re view, or upon the date of receipt of advice from the President or his designee under Executive Order 12597 and implementing regulations that he or she does not intend to disapprove the Department’s order under that section, whichever occurs earlier; 10 and

5. We will serve this order on Spirit Air l ines, Inc.; the Ambassador of Mexico in Washington, D.C.; the U.S. Department of State (Office of Aviation Negotiations), and

the Federal Aviation Administration.

By:

PAUL L. GRETCH

Director

O ffice of International Aviation

(SEAL)

An electronic version of this document is available on the World Wide Web at: http://www.regulations.gov

10 This order was submitted for review under 49 USC Section 41307 on April 18, 2012. The 61 st day is June 18, 2012.

Si nce the President or his designee did not disapprove this order before that date, it became effective on June 18, 2012.Appendix A



# Experimental

Certificate of Public

Convenience and Necessity

for

ROUTE 907

This Certifies That



# Spirit Air l ines, Inc.

is authorized, subject to the provisions of Subtitle VII of Title 49 of United States Code, t he orders, rules, and regulations issued thereunder, and the attached Terms, Conditions, and Limitations, to engage in foreign air transportation of persons, property and mail.

This certificate is not transferable without the approval of the Department of the Transportation.

By Direction of the Secretary

Issued by Order 201 2

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- 12 Paul L. Gretch

On April 18 , 201 2 Director, Office of

Effective on June 18 , 201 2 International Avia tionOrder 201 2

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Route 907 Page 1 of 3

Terms, Conditions, and Limitations

Spirit Air l ines, Inc. for Route 907

is authorized to engage in scheduled foreign air transportation of persons, property and mail over

the foll owing U.S.

- Mexico city

- pair route segments:

Fort Lauderdale

- Cancun

Fort Lauderdale

- Toluca

Detroit

- Cancun

Dallas/Ft. Worth

- TolucaOrder 201 2

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Route 907 Page 2 of 3

This authority is subject to the following condit ions:

(1) The holder shall at all times conduct its operations in accordance with the regulations prescribed by the Department of Transportation for the services authorized by this certificate, and with such other reasonable terms, conditions, and limitat ions as the Department of Transportation may prescribe in the public interest.

(2) The holder shall at all times conduct its operations in accordance with all treaties and agreements between the United States and other countries, and the exercise of the p rivileges granted by this certificate is subject to compliance with such treaties and agreements and with any orders of the Department of Transportation issued under them. To the extent that the holder has authority to serve more than one country or point s in more than one country on the same route segment, that authority does not confer upon the holder any additional rights (including

fifth

- freedom intermediate and/or beyond rights) in limited

- entry markets unless the Department has completed any necessar y carrier selection procedures to determine which carrier(s) should be authorized to exercise such rights and has notified the foreign country(ies) involved that any such selected carrier(s) has the required authority. In such cases, the fact that the car rier may hold authority to serve the countries (points) at issue on the same segment will not be considered as providing any preference to the holder in a carrier selection proceeding.

(3) The exercise of the authority granted here is subject to the holde r’s first obtaining from the appropriate foreign governments such operating rights as may be necessary.

(4) The holder’s authority is effective only to the extent that such operations comply with all applicable requirements of the Federal Aviation Admini stration, the Transportation Security Administration, and with all applicable U.S. Government requirements concerning security, including, but not limited to, 49 CFR Part 1544. To assure compliance with all applicable U.S. Government requirements concerni ng security, the holder shall, before commencing any new service (including charter flights) to or from a foreign airport, contact its Principal Security Inspector (PSI) to advise the PSI of its plans and to find out whether the Transportation Security

Adm inistration has determined that security is adequate to allow such airport(s) to be served.

(5) The holder shall at all times remain a “Citizen of the United States,” as required by 49 U.S.C. 40102(a)(15).

(6) The holder shall maintain in effect liabi lity insurance coverage as required under 14 CFR Part 205. Failure to maintain such insurance coverage will render a certificate ineffective, and this or other failure to comply with the provisions of Subtitle VII of 49 U.S.C. or the Department’s regulati ons shall be sufficient grounds to revoke this certificate.

(7) The holder acknowledges that this certificate is granted to determine if the holder’s projected services, efficiencies, methods, rates, fares, charges, and other projected results will, in

fa ct, materialize and remain for a sustained period of time, and to determine whether the holder will provide the innovative and low

- priced air transportation it proposed in its application for this authority.Order 201 2

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Route 90 7 Page 3 of 3

(8)(a) The holder may combine services on all city

- pair route segments of this certificate and

combine services on this certificate with U.S.

- Mexico combination services authorized by other Department of Transportation certificates or exemptions, subject to the conditions below.

(8)(b) The provisions in paragraph (8)(a), above, shall not authorize services which would constitute multiple designations on city

- pair route segments where such multiple designations are not agreed to by the United States and Mexico.

(9) The holder shall file a notice with the Department if it discontinues services on a city

- pair route segment for 90 days or longer. This notice shall be given as soon as the decision to discontinue service (other than s easonal/intermittent) is made, but in no case later than the 91 st
day of dormancy. Notices shall be filed in the form of a letter addressed to the U.S. Department of Transportation, U.S. Air Carrier Licensing Division, X

- 44, 1200 New Jersey Avenue, SE,

Wa shington, DC 20590, and shall identify the dormant city

- pair route segment, and the date the market became (or will become) dormant.

(10) Should the holder propose any substantial changes in its o wnership, management, or operations (as that term is defin ed in 14 CFR 204 of the Department’s regulations), it must comply with the requirements of 14 CFR 204.5.

(11) In the event the holder ceases all operations for which it was found “fit, willing, and able,” its authority under this certificate shall be su spended under the terms of 14 CFR 204.7 and the holder may neither recommence nor advertise such operations unless its fitness to do so has been redetermined by the Department. Moreover, if the holder does not resume operations within one year of its cess ation, its authority shall be revoked for dormancy.

The authority to serve each city

- pair route segment in this certificate shall continue in effect until

June 18 , 201 7 ; notwithstanding the above

, however , the authority to serve any city

- pair route

segmen t shall expire automatically and revert to the Department (a) the 90 th day after the holder discontinues service on that segment, or (b) the holder notifies the Department (as provided in this certificate) that the segment is dormant, whichever occurs earl ier; unless the Department earlier suspends, modifies, or deletes the authority.Appendix B Page 1 of 1

List of U.S.

- Mexico Markets Submitted for Consolidation by Spirit

Own

- Aircraft Markets

Market Type of Authority Docket Number Level of

Service

Fort Lauderdale

- Cancun Exemption DOT

- OST

- 200 3

- 15306 Year

- round

Fort Lauderdale

- Toluca Exemption DOT

- OST

- 20 11

- 0011 Year

- round

Detroit

- Cancun Exemption DOT

- OST

- 20 04

- 18692 Seasonal

Dallas/Ft. Worth

- Toluca Exemption DOT

- OST

- 20 12

- 0021 Year

- round