1 O r d e r 2 0 1 2

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S e r v e d : M a r c h 1 3

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UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 13th day of March, 2012

Restoration to

REPUBLIC AIRLINE , INC.

of exemptions from 14 C.F.R. Part 93, Subparts K

and S, pursuant to 49 U.S.C. § 41718(b), Special

rules for Ronald Reagan Washington National

Airport (within

- perimeter slot exemptions) Docket OST

- 2000

- 7182

ORDER RESTORING WITHIN

- PERIMETER SLOT EXEMPTIONS AT

RONALD REAGAN WASHINGTON NATIONAL AIRPORT

SUMMARY

This Order restores two within

- perimeter slot exemptions at Ronald Reagan Washington

National Airport (DCA) to Republic Airline, Inc., (Republic) to be utilized only for operations to

Kansas City International Airport (MCI).

BACKGROUND

In Order 2004

- 4

- 2, pursuant to provisions of the Vision 100

– Century of Aviation

Reauthorization Act, P ub .L

. No. 108

- 176, the Department awarded two DCA slot exemptions to

Midwest Airlines, Inc. (Midwest) for service to MCI. In 2010, after Mi dwest had been acquired

by Republic Airways Holdings, Inc., the parent of Republic, the Department withdrew the two

exemptions and , in Order 2010

- 12

- 16, reallocated them through a competitive selection process

to Sun Country Airlines for service between DC A and Lansing, Michigan (LAN) . Republic

subsequently sought judicial review of the Department’s order withdrawing those exemptions

. The U .S. Court of Appea ls for the District of Columbia Circuit reversed the Department’s

decision and vacated Order 2010

- 12

- 16. Republic Air line, Inc. v. United States Department of

Transportation

, No. 11

- 1018 (D.C. Cir., Jan. 6, 2012). The Court issued its mandate on March

1, 2012.2 In accordance with the C ourt’s decision, we are restoring the two slot exemptions to Republ ic, to

be utilized consistent with the same conditions and limitations as they appeared in Order 2004

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- 2, th e original award to Midwest. 1

Additionally, o n March 2, 2012, the Federal Aviation Administration (FAA) granted a request by

Sun Country for an exemption to operate two air carrier slot s between DCA and LAN, effective

that date. Exemption No. 10466 (Regulatory Docket No. FAA

- 2012

- 0089). As a result, despite

the action we are taking today to comply with the Court’s decision, Sun Country is author ized to

continu e its DCA

- LAN service without interruption under the operating authority granted to it by

FAA.

CONDITIONS

Start

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The Department requires that Republic inaugurate full service within 90 days of the service of

this Order. If, for any reason, Republic is not able to use these slot exemptions by such time, we

request that it notify the Department as soon as possible, but not later than ten days after the date

of service of this Order

.

Assignment of Slot Times

Slot times for these two exemptions are in the 1100 and 14 00 hour periods. Republic, in

accordance with statute and Department regulations, may request that the FAA Slot

Administration Office approve temporary exchanges of the assigned slot exemption time s with

other slots or slot exemptions in a different hour, or request different slot times to the extent they

may be available, for the purpose of conducting operations authorized by this Order. In acting on

such a request, the FAA will employ standard pr actices in conjunction with applicable statutory

and regulatory requirements for the utilization of slot times between and among individual

carriers. Regardless of any subsequently approved slot time exchanges, the slot times assigned by

the Department or the FAA’s Slot Administration Office pursuant to this Order will be tagged

such that, if the service granted by this Order is either suspended or is not inaugurated in a timely

manner, the Department will withdraw the slot exemptions based on their tagged slot time rather

than by any subsequent slot time operated.

ENVIRONMENTAL ISSUES

Although 49 U.S.C. Section 41718(e) specifically exempts our action here from the review under

the National Environmental Policy Act, 2 we remain sensitive to the environmental impact of

1 However, a s we indicate below, w e are modifying the administrative term s in Order 2004

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- 2 that prohibit a sale,

trade, transfer or conveyance of the slot exemption authority to except transfers of the slot exemption authorities that

may occur through an air carr ier merger or acquisition. This modification complies with Section 414 of the FAA

Modernization and Reform Act of 2012, Pub. L. No. 112

- 95, which amended 49 U.S.C. § 47178(j).3 increased operations at DCA. Consistent with the statute, we will require that all operations

authorized by this Order be conducted with Stage 3 aircraft. Also, under 49 U.S.C. Section

41718(e), the Dep artment will give DCA priority in making grants for airport noise compatibility

planning and programs that qualify for Federal financial assistance.

ADMINISTRATIVE TERMS

Republic may not sell, trade, transfer, or convey the operating authorities granted by the subject

exemptions unless otherwise authorized therein, except through an air carrier merger or

acquisition

. S ee 49 U.S.C. § 41714(j), as amended by Section 414 of the FAA Modernization and

Reform Act of 2012, Pub. L. No. 112

- 95.

Further, grantin g of these exemptions in no way is to be construed as allowing a carrier to

operate services that it could not otherwise operate. Republic must still meet all the requirements

of the Department of Transportation, the Federal Aviation Administration, inclu ding but not

limited to use

- or

- lose provisions, and all other statutes and regulations governing air

transportation.

This O rder is issued under authority delegated in 49 C.F.R. § 1.56(a).

ACCORDINGLY,

1. Two slot exemptions from 14 C.F.R. Part 93, Subpa rts K and S, are restored to Republic

Airline, Inc. to conduct operations at Ronald Reagan Washington National Airport ;

2. The slot exemptions may be utilized only for service to Kansas City International Airport ;

3

. The slot times for the two exemptions are , as previously assigned, in the 1100 and 1400

hour periods; however, in accordance with statute and Department regulations, Republic may

request the FAA Slot Administration Office to approve exchanges of the assigned slot exemption

times wit h other slots or slot exemptions in a different hour, or request different slot times to the

extent they may be available, for the purpose of conducting operations authorized by this Order ;

4

. Republic must commence its proposed service no later than 90 days of the service of this

Order. Operations utilizing t he slot exemptions must be conducted with Stage 3 aircraft, may not

be used for operations between the hours of 10:00 p.m. and 7:00 a.m., and may not increase the

number of operations at Ronald Rea gan Washington National Airport in any one

- hour period

during the hours between 7:00 a.m. and 9:59 p.m. by more than five operations ;

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. The Department prohibits Republic from selling, trading, transferring, or conveying the

operating authorities gran ted by the subject exemption, except through an air carrier merger or

acquisition;

2 Section 41718(e) states, “Neither the request for, nor the granting of an exemption, under this section shall be

considered for the purposes of any Federal law a major Federal action significantly affecting the quality of the

human environment.”4 6

. The authorities granted under these exemptions are subject to all of the other requirements

delineated in 14 C.F.R. Part 93, Subparts K and S, including, but not limite d to, the reporting

provisions and use

- or

- lose requirements;

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. The Department directs Republic to contact the FAA Slot Administration Office relative

to assignment of slot exemption numbers, effective dates, and operating times consistent with

statutory limitations; and

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. We will serve this Order on all parties in Docket OST

- 2000

- 7182 and the FAA Slot

Administration Office.

By:



### SUSAN L. KURLAND

Assistant Secretary for

Aviation and International Affairs

(SEAL)

An electro nic version of this document is available in the Federal Docket Management

System (FDMS) at http://www .regulations.gov