UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on October 23, 2013

 NOTICE OF ACTION TAKEN -- DOCKET DOT-OST-2013-0180 _________________________________________________________________________________________________________

This serves as notice to the public of the action described below, taken by the Department official 

indicated (no additional confirming order will be issued in this matter).

Application of Southwest Airlines Co. (Southwest) and AirTran Airways, Inc. (AirTran), filed 

9/24/13, for:

XX Renewal and reissuance of exemption for Southwest and/or AirTran for two years under 49 U.S.C. 

40109 to provide the following service:

Scheduled foreign air transportation of persons, property, and mail between (1) Atlanta, Georgia, 

and Cancun, Mexico; (2) Baltimore, Maryland, and Cancun, Mexico; (3) Milwaukee, Wisconsin, 

and Cancun, Mexico; (4) San Antonio, Texas, and Mexico City, Mexico; (5) San Antonio, Texas, 

and Cancun, Mexico; (6) Orange County, California (SNA),1 and Mexico City, Mexico; (7) Orange 

County, California (SNA), and San Jose del Cabo, Mexico; (8) Chicago, Illinois, and Cancun, 

Mexico; (9) Austin, Texas, and Cancun, Mexico; (10) Denver, Colorado, and Cancun, Mexico; (11) 

Denver, Colorado, and San Jose del Cabo, Mexico; and (12) Austin, Texas, and San Jose del Cabo, 

Mexico.

To facilitate the merger of Southwest and AirTran, and consistent with Order 2011-11-17, the 

applicants request that the exemption authority originally issued to AirTran for certain services 

between the United States and Mexico, be renewed and reissued in the name Southwest and/or 

AirTran.2

 The applicants state that this renewal and reissuance will allow AirTran to continue 

serving the subject markets and will facilitate a smooth transition to Southwest-operated service, 

which it plans to begin in 2014.

Applicant rep: Robert W. Kneisley (202) 263-6284 DOT Analyst: Brett D. Kruger (202) 366-8025 

D I S P O S I T I O N

XX Granted (subject to conditions, see below)

The above action was effective when taken: October 23, 2013, through October 23, 2015.

 1 SNA is the airport code for the John Wayne Airport in Santa Ana, California. As stated in our Notice of Action 

Taken dated November 29, 2011, in Docket DOT-OST-2011-0205, we have designated AirTran to provide service 

to and from Santa Ana, California, consistent with the carrier’s application and the U.S.-Mexico aviation agreement. 2 See Notice of Action Taken dated June 26, 2012, in Docket DOT-OST-2005-21134 (Atlanta-Cancun, and

Baltimore-Cancun); Notice of Action Taken dated May 8, 2012, in Docket DOT-OST-2010-0146 (MilwaukeeCancun); Notice of Action Taken dated November 29, 2011, in Docket DOT-OST-2011-0205 (San AntonioCancun, San Antonio-Mexico City, Orange County (SNA)-Mexico City, and Orange County (SNA)-San Jose del 

Cabo); Order 2012-4-5, in Docket DOT-OST-2012-0001 (Chicago-Cancun); Notice of Action Taken dated January 

27, 2012, in Docket DOT-OST-2012-0007 (Austin-Cancun, and Denver-Cancun); Notice of Action Taken dated 

December 4, 2012, in Docket DOT-OST-2012-0190 (Denver-San Jose del Cabo); and Notice of Action Taken dated 

February 1, 2013, in Docket DOT-OST-2013-0012 (Austin-San Jose del Cabo seasonal services). The applicants 

request that this authority be consolidated into a single docket. We will grant this request, and in doing so, we will 

place a copy of this Notice of Action Taken in the original dockets where the authority is held. Subsequent requests 

and comments pertaining to this authority shall be filed in Docket DOT-OST-2013-0180.
Action taken by: Paul L. Gretch, Director

 Office of International Aviation

XX The authority granted is consistent with the aviation agreement between the United States and 

Mexico.

Except to the extent exempted or waived, this authority is subject to the terms, conditions, and limitations 

indicated:

XX The holders’ certificates of public convenience and necessity

XX Standard exemption conditions (attached)

Conditions: The U.S.-Mexico exemption authority granted is subject to the dormancy notice 

requirements set forth in condition 7 of Appendix A of Order 88-10-2, and, as to the Austin-San Jose del 

Cabo services, the notice requirements for seasonal/intermittent services as set forth in Order 96-11-24, at 

5. 

Under the U.S.-Mexico aviation agreement, either two or three U.S. carriers may be designated to provide 

scheduled air transportation service in each of the city-pair markets at issue in this application.3

 Given 

the circumstances presented here, we will notify the Government of Mexico of the impending 

designations of Southwest to serve the subject markets, but will not formally designate Southwest in these 

markets until such time as Southwest provides us with a date certain for the conversion from AirTranoperated services to Southwest-operated services in a given city-pair market. On that date, we will 

withdraw the designation of AirTran for the specified market(s), and formally designate Southwest in its 

place. The dormancy notice requirements, described above, will begin for Southwest in the specified 

market(s) on the date of conversion from AirTran to Southwest.

On the basis of data officially noticeable under Rule 24(g) of the Department's regulations, we found the 

applicants qualified to provide the exemption services authorized.

Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our 

action was consistent with Department policy; (2) grant of the authority was consistent with the public 

interest; and (3) grant of the authority would not constitute a major regulatory action under the Energy 

Policy and Conservation Act of 1975. To the extent not granted, we denied all requests in the referenced 

Docket. We may amend, modify, or revoke the authority granted in this Notice at any time without 

hearing at our discretion.

Persons entitled to petition the Department for review of the action set forth in this Notice under the 

Department’s regulations, 14 CFR §385.30, may file their petitions within seven (7) days after the date of 

issuance of this Notice. This action was effective when taken, and the filing of a petition for review will 

not alter such effectiveness.

An electronic version of this document is available on the World Wide Web at:

www.regulations.gov

 3 Two U.S. carriers may be designated for combination air transportation services at Mexico City, and three may be 

designated in the remaining Mexico cities at issue here.
ATTACHMENT

U.S. Carrier Exemption Conditions

In the conduct of the operations authorized, the U.S. carrier applicant(s) shall:

(1) Hold at all times effective operating authority from the government of each country served;

(2) Comply with applicable requirements concerning oversales contained in 14 CFR 250 (for scheduled 

operations, if authorized);

(3) Comply with the requirements for reporting data contained in 14 CFR 241;

(4) Comply with requirements for minimum insurance coverage, and for certifying that coverage to the 

Department, contained in 14 CFR 205;

(5) Except as specifically exempted or otherwise provided for in a Department Order, comply with the 

requirements of 14 CFR 203, concerning waiver of Warsaw Convention liability limits and defenses;

(6) Comply with all applicable requirements of the Federal Aviation Administration, 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 concerning 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 Administration has 

determined that security is adequate to allow such airport(s) to be served; and

(7) Comply with such other reasonable terms, conditions, and limitations required by the public interest 

as may be prescribed by the Department of Transportation, with all applicable orders and regulations of 

other U.S. agencies and courts, and with all applicable laws of the United States.

The authority granted shall be effective only during the period when the holder is in compliance with the 

conditions imposed above.

1/08