Order 201 4

- 12

- 1

UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 30 th day of September , 201 4

Served: December 2, 2014

Docket s DOT

- OST

- 2011

- 0076
DOT

- OST

- 200 5

- 22228

ORDER ISSUING CERTIFICATE

Summary

By this order we renew certificate authority for JetBlue Airways Corporation ( referred to as

JetBlue or the captioned air carrier ) to provide combination services between various U.S.

- Mexico city

- pair markets

.

Background and Consolidation Request

In furtherance of the Department’s regulatory 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 States 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 markets will have a common expiration date. We stated that we

would cover a carrier’s U.S.

- Mexico authority in a separa te certificate, as a carrier must obtain new economic authority on a city

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

- pair market to

its U.S.

- Mexico services.

1 Notice dated February 13, 2009, in Docket DOT

- OST

- 2005

- 22228. Application of

JETBLUE AIRWAYS CORPORATION

for renewal of certificate of public convenience and necessity pursuant to 49 U.S.C. §4110 12 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 se rvices only, whether the market is entry

- or frequency

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

issued 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.

Pursuant to our initiative, JetBlue requested and received, by Order 2009

- 9

- 4 (corrected), issued June 30, 2009, consolidated certificate authority for Route 893 (for limited

- entry and limited

frequency markets, other than Mexico), Route 894 (for markets that are not limited as to entry or frequency but which involve non

- open

- skies partners of the United States), and Route 895 (U.S.

- Mexico city

- pair markets). 3 JetBlue’s authority for Route 895 was due to expire on August 31, 2014, but has been kept in force pursuant to the provisions of the Administrative Procedure Act, 5 U.S.C. 558(c), as implemented by 14 CFR Part 377, pending Department action on JetBlue’s timely

- filed renewal application.

By application filed March 6, 2014, JetBlue r equests renewal of its certificate for Route 895, to provide combination service between Boston, MA; Fort Lauderdale, FL; New York, NY; and Orlando, FL; on the one hand, and Cancun, Mexico, on the other hand. 4

Decision

Under assigned authority and consis tent with our streamlining and consolidated certificate initiative, we have decided to renew JetBlue’s existing consolidated certificate for Route 895

.

Our action here renews the carrier ’s Route 895 certificate, in the form attached at Appendix A.

Each U.S.

- Mexico city

- pair market is included in the certificate as a route segment. We find that grant of the certificate is consistent with the public convenience and necessity. 5 We find further that the pending consolidated certificate request is not contr oversial and that it is appropriate to grant the authority at issue here under simplified procedures, as explained in the February Notice. 6

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 By Order 2014

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- 13, we amended and reissue d JetBlue’s consolidated certificate authority for Route 894, to provide combination services in markets that are not limited as to entry or frequency but which do not involve

open

- skie s partners of the United States.

4 JetBlue has advised that it is not seek ing renewal of its previously

- held certificate authority for services in the Washington, DC

- Cancun and Tampa

- Cancun markets.

5 Based on officially noticeable data, the Department has found the captioned air carrier fit, willing, and able to

engag e in foreign scheduled air transportation of persons, property, and mail using large aircraft. See

Order 200 9

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- 4 (corrected), issued June 30, 2009

. 6 In accordance with 14 CFR § 302.207, et seq ., we may, in our discretion, omit a tentative decision i n proceedings and proceed directly to a final decision.3 The authority in the attached certificate is consistent with the aviation agreement between the

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 JetBlue the

renewed consolidated certificate attached at Appendix A, subject to the conditions attached.

The attached certificate of public convenience and necess ity is subject to the standard terms, conditions, and limitations we consistently impose in the public interest. 7 The certificate holder may request amendment of the certificate to include newly obtained U.S.

- Mexico authority through the addition of a new route 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.

Findi ngs 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 t he basis of data officially noticeable under 14 CFR 302.24 of the Department’s regulations, 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 attach ed certificate and to conform to the provisions of Subtitle VII of Title 49, United States 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 a ir carrier does not constitute a major regulatory action under the Energy Policy and Conservation Act of 1975, as defined by section 313.4(a)(1) of the Department’s regulations; 8 and

5. The public interest does not require an oral evidentiary hearing or a sh ow

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

7 See Appendix B for the type of service (own

- aircraft vs. code

- share

- only) currently authorized in each U.S.

- Mexico city

- pair market. We remind the carrier to follow established procedures for requ esting conversions of its direct

carrier/code

- share authority and/or noticing service level changes.

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

ACCORDINGLY,

1

. We renew and reissue , as attached in Appendix A, a certificate of public convenience and necessity to JetBlue Airways Corporation to provide scheduled foreign air transportation of persons, property and mail in the U.S.

- Mexico city

- pair markets listed in the attached

certificate ;

2. This order supersedes any orders previously issued or actions taken by the Department to

the extent s uch order or action grants the carrier operating rights, by certificate or exemption, in markets covered by the attached certificate;

3. The certificate issued to JetBlue Airways Corporation 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 review, or upon the date of receipt of advice from the President or his designee under Ex ecutive Order 12597 and implementing regulations that he or she does not intend to disapprove the Department’s order under that section, whichever occurs earlier; 9 and

5. We will serve this order on JetBlue Airways Corporation ; the Ambassador of Mexico i n Washington, D.C.; the U.S. Department of State (Office of Aviation Negotiations), and

the Federal Aviation Administration.

By:

PAUL L. GRETCH

Director

Office of International Aviation

(SEAL)

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

9 This order was submitted for review under 49 USC Section 41307 on September 30 , 2014 . The 61 st day is

D ecember 1 , 2014 . Since the President or his designee did not disapprove this order before that date, it became

effective on D ecember 1

, 2014

.Appendix A



# Experimental
Certificate of Public Convenience and Necessity

for
ROUTE 895
(as reissued)

This Certifies That



# JetBlue Airways Corporation

is authorized, subject to the provisions of Subtitle VII of Title 49 of United States Code, the orders, rules, and regulations issued thereunder, and the attached Terms, Conditions, and Limitations, to engage in foreign air transportation of persons, propert y 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 4

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- 1 Paul L. Gretch
On September 30
, 201 4 Director, Office of

Effective on December 1
, 2014 International Aviation*As renewed by

Order 201 4

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Route 895 Page 1 of 3

Terms, Conditions, and Limitations

JetBlue Airways Corporation

for Route 895

is authorized to engage in scheduled foreign air transportation of persons, property and mail over the following U.S.

- Mexico city

- pair route segments:

New York/Newark

- Cancun

Ft. Lauderdale

- Cancun

Boston

- Cancun

Orlando

- Cancun

This authorit y is subject to the following terms, conditions, and limitations :

(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,

a nd with such other reasonable terms, conditions, and limitations 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 privileges 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 points 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

- en try markets unless the Department has completed any necessary 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 t he required authority. In such cases, the fact that the carrier 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 ex ercise of the authority granted here is subject to the holder’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 Administration, the Transportation Security Administration, and with all applicable U.S. Government requirements con cerning 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 fore ign 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.*As renewed by

O rder 201 4

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Route 895 Page 2 of 3

(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 liability 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 regulations 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 fact, materialize and remain for a sustaine d 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.

(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, s hall 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 may combine services authorized by this certificate wi th all services authorized by other Department of Transportation certificates and exemptions; provided that such operations are in compliance with the provisions of all applicable bilateral aviation agreements, and provided further that (a) nothing in the award of the route integration authority requested should be construed as conferring upon the holder additional rights (including fifth

freedom intermediate and/or beyond rights) to serve markets where U.S. carrier entry is limited

unless the holder first notifies the Department of its intent to serve such a market and unless an d until the Department has completed any necessary carrier selection procedures to determine which carrier(s) should be authorized to exercise such rights; and (b) should there be a request by any carrier to use the limited

- entry route rights that are included in this certificate by virtue of the route integration authority granted here, but that are not then being used by the holder, the holding of such authority by route integration will not be construed as providing any preference for the holder in a competitive carrier selection proceeding to determine which carrier(s) should be entitled to use the authority at issue.

(10) The holder shall file a notice with the Department if it d iscontinues 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 seasonal/intermittent) is made, but in no case later than the 91 st day of dormancy. Notices sha ll be filed in the form of a letter addressed to the U.S. Department*As renewed by

Order 201 4

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Route 895 Page 3 of 3

of Transportation, U.S. Air Carrier Licensing Division, X

- 44, 1200 New Jersey Avenue, SE, Washington, DC 20590, and shall identify the dormant city

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

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

(1 2 ) In the event the holder ceases all operations for w hich it was found “fit, willing, and able,” its authority under this certificate shall be suspended 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 cessation, its authority shall be revoked for dormancy.

The authority to serve each city

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

December 1 , 201 9 ; notwithstanding the above

, however , the authority to serve any city

- pair route segment 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 earlier; unless the Department earlier suspends, modifies, or deletes the authority.Appendix B Page 1 of 1

List of U.S.

- Mexico Markets

Own

- Aircraft Markets

Market Docket Number

New York/Newark

- Cancun DOT

- OST

- 2005

- 23494

Ft. Lauderdale

- Cancun DOT

- OST

- 2008

- 0372

Boston

- Cancun DOT

- OST

- 2006

- 26525

Orlando

- Cancun DOT

- OST

- 20 07

- 0071