BEFORE THE DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

) Application of ) ) ALASKA AIRLINES, INC. ) Docket DOT-OST-2005-20406 ) for an exemption pursuant to 49 U.S.C. 40109 ) )

APPLICATION FOR RENEWAL OF EXEMPTION
Communications with respect to this document should be addressed to: Kyle B. Levine Charles F. Donley II Deputy General Counsel Marshall S. Sinick Managing Director, Legal Squire Sanders (US) LLP Alaska Airlines, Inc. 1200 19th Street, N.W., Suite 300 19300 International Boulevard Washington, D.C. 20036 Seattle, Washington 98188 (202) 626-6840 charles.donley@squiresanders.com marshall.sinick@squiresanders.com Megan Lawrence Counsel to Alaska Airlines, Inc. Managing Director, Government Affairs & Community Relations Alaska Airlines, Inc. 19300 International Boulevard Seattle, Washington 98188

DATED: October 12, 2012BEFORE THE DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

) Application of ) ) ALASKA AIRLINES, INC. ) Docket DOT-OST-2005-20406 ) for an exemption pursuant to 49 U.S.C. 40109 ) )

APPLICATION FOR RENEWAL OF EXEMPTION Alaska Airlines, Inc. (“Alaska”) hereby requests renewal of the exemption authority granted to it by the Department of Transportation (the “Department”) in the above-captioned docket to perform scheduled foreign air transportation of persons, property and mail between Los Angeles, California, and Mexico City, Mexico. This exemption authority expires on February 1, 2013. Alaska requests renewal of this authority for a two-year period on its existing terms and conditions. Alaska relies on the provisions of the Administrative Procedure Act and Part 377 of the Department’s procedural regulations to continue its existing authorization in force pending a final decision on this renewal request. In further support of its request for renewal, Alaska states as follows: 1. Alaska’s principal headquarters are located at 19300 International Boulevard, Seattle, Washington. Alaska is incorporated under the laws of the State of Alaska and is a wholly-owned subsidiary of Alaska Air Group, Inc. (“AAG”). AAG is incorporated under the laws of the State of Delaware.Application for Renewal of Exemption

Docket DOT-OST-2005-20406 October 12, 2012

2 2. Alaska is a citizen of the United States within the meaning of 49 U.S.C. 40102(a)(15). The president and at least two-thirds of Alaska’s directors and other managing officers are U.S. citizens. Additionally, to Alaska’s knowledge, U.S. citizens hold at least seventy-five percent of Alaska’s voting stock. 3. Alaska has repeatedly been found fit, willing and able to provide interstate and foreign air transportation. The Department is requested to take official notice of Alaska’s continuing fitness. See, e.g ., Order 00-5-31. 4. Alaska currently operates twice daily roundtrip scheduled flights on the Los Angeles-Mexico City route using B737 aircraft. The Department has found previously that Alaska’s service in the Los Angeles-Mexico City market is consistent with the terms of the U.S.- Mexico bilateral agreement. 1 5. This renewal application does not raise any environmental or energy concerns. All flights will continue to be performed with aircraft that meet all applicable noise requirements. Similarly, approval of this application will not result in a near-term increase in fuel consumption of ten million gallons or more.

1 See, 2005 Los Angeles-Mexico City Combination Service Proceeding, May 4, 2005, Order 2005-5-1; Notice of Action Taken , Docket DOT-OST-2005-20406, May 8, 2007, Notice of Action Taken , Docket DOT-OST-2005- 20406, March 18, 2009; Notice of Action Taken, Docket DOT-OST-2005-20406, February 1, 2011Application for Renewal of Exemption

Docket DOT-OST-2005-20406 October 12, 2012

3 WHEREFORE , Alaska Airlines, Inc. respectfully requests that the exemption granted to it in the above-captioned docket be renewed for an additional two-year period on its existing terms and conditions, as more fully described herein. Respectfully submitted,

/s/ Charles F. Donley II

_________________________________ Charles F. Donley II Marshall S. Sinick Squire Sanders (US) LLP 1200 19th Street, N.W., Suite 300 Washington, D.C. 20036 (202) 626-6840 charles.donley@squiresanders.com marshall.sinick@squiresanders.com Counsel to Alaska Airlines, Inc.

DATED: October 12, 2012CERTIFICATE OF SERVICE

I hereby certify that one copy of the foregoing Application for Renewal of Exemption has this day been served on each of the following individuals via telecopier or email.
/s/ Charles F. Donley II

___________________________ Charles F. Donley II DATED: October 12, 2012

sascha.vanderbellen@delta.com ; sametta.c.barnett@delta.com; jeff.morgan@delta.com jonathan.linde@united.com ; steve.morrissey@united.com ; dan.weiss@united.com ; lhalloway@crowell.com ; rbkeiner@crowell.com ; gmurphy@crowell.com patrick.rizzi@hoganlovells.com bob.kneisley@wnco.com howard_kass@usairways.com; benjamin.slocum@usairways.com jhill@dowlohnes.com mlbenge@zsrlaw.com dkirstein@yklaw.com robert.wirick@aa.com ; francis.heil@aa.com ; james.kaleigh@aa.com pmurphy@lopmurphy.com ; pmurphy@ggh-airlaw.com barbara.russell@virginamerica.com Esta.Rosenberg@dot.gov