Order 201 1

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UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the D epartment of Transportation

on the 6 th day of April , 201 1

Served: June 9 , 201 1

Docket DOT

- OST

- 2005

- 22228

ORDER ISSUING CERTIFICATE

Summary

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

- Mexico markets

for which Frontier holds economic authority by exemption.

Background and Consolidation Request

In furtherance of the Depa rtment’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 carri ers already holding a blanket open

- skies certificate into new consolidated certificates of public convenience and necessity. 1

1 Notice dated February 13, 2009, in Docket DOT

- OST

- 2005

- 22228. 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

- frequ ency markets 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 In the Matter of Consolidated International Route Authority for:

FRONTIER AIRLINES, INC.

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

- Mexico)new economic authority on a city

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

- pair m arket to

its 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, identifying the authority to be included in the new certificates. Sp ecifically, 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 prev iously

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

- execu ting final order designed to issue the non

open

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

process.

By letter dated January 25 , 20 11

, Frontier requested a consolidated U.S.

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

- Mexico city

- pair markets for which it seeks consolidation. 2

Decision

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

- Mexico market.

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

- skies certificate. 3

Our acti on 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. 4 We find further that the pending consolidated certificate request is not controversial and that it is appropriate to grant the authority at issue here under simplified procedures, as explained in the February Notice. 5

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.

2 The city

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

also identifies markets in which Frontie r is currently limited to code

- share services only, and those markets that are

authorized to be served on a seasonal basis.

3 By Order 2007

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- 3, Frontier was issued a Certificate of Public Convenience and Necessity for Route 845, authorizing the carrier to serve the open

- skies partners of the United States.

4 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 usi ng large aircraft. See

Order 2007

- 7

- 3.

5 In accordance with 14 CFR § 302.207, et seq ., we may, in our discretion, omit a tentative decision in proceedings and proceed directly to a final decision.We therefore find, under assigned authority, that the public interest warrants granting Frontier the consolidated certificate attached at Appendix A, subject to the conditions atta ched.

The attached certificate of public convenience and necessity is subject to the standard terms, conditions, and limitations we consistently impose in the public interest. 6 The certificate holder may request amendment of the certificate to inclu de 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. For those services currently operated under an exemption, the exemption will terminate upon the effectiveness of the attached certificate of public convenience and necessity.

Findings and Concl usions

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 d ata 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 attached

certificat e 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

cer tificate 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 do es 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; 7 and

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

- cause

proc eeding on the application and the actions taken here. There are no material, 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

C FR Part 385, we find our action here is consistent with Department policy.

6 See Appendix B for the type of service (own

- aircraf t vs. code

- share

- only) currently authorized in each U.S.

- Mexico city

- pair market, including the level of service (year

- round vs. seasonal) the carrier provides in each market. We remind the carrier to follow established procedures for requesting conversio ns of its direct

- carrier/code

- share authority and/or noticing service level changes.

7 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.ACCORDINGLY,

1

. We issue, as attached in Appendix A, a certificate of public convenience and necessity to

Frontier Airl ines, Inc., covering U.S.

- Mexico city

- pair markets whi ch Frontier Airl ines, Inc., is authorized to serve by exemption;

2. This order 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 to Frontier 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

or der 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 Executive Order 12597 and implementing regulations that he or she does not intend to disapp rove the Department’s order under that section, whichever occurs earlier; 8 and

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

the F ederal 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.r egulations.gov

8 This order was submitted for review under 49 USC Section 41307 on April 6, 2011 . The 61 st day is June 6, 2011

. Since the President or his designee did not disapprove this order before that date, it became effective on June 6, 2011

.Appendix A



# Experimental

Certificate of Public Convenience and Necessity

for

ROUTE 904

This Certifies That



# Frontier Air l ines, Inc.

is author ized, 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, property and m ail.

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

By Direction of the Secretary

Issued by Order 201 1

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On April 6 , 2011 Director, Office of

Effective on June 6 , 2011 International AviationOrder 201 1

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Route 904 Page 1 of 3

Terms, Conditions, and Limitations

Frontier Air l ines, Inc. for Route 904

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

- Mexico city

- pair route segments:

Denver

- Cancun Milwaukee

- Cancun

Denver

- Cozumel

Denver

- Ixtapa/Zihuatanejo St. Louis

- Cancun

Denver

- Mazatlan St. Louis

- Puerto Vallarta

Denver

- Puerto Vallarta

Denver

- San Jose del Cabo Salt Lake City

- Cancun

Indianapolis

- Cancun

Kansas City

- Cancun Kansas City

- Puerto Vallarta Kansas City

- San Jose del CaboOrder 201 1

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Route 904 Page 2 of 3

This authority is subject to the following conditions:

(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 certifi cate, and 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 betwe en 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 th at 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 lim ited

- entry 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 the 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 exercise 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 com ply 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 c ompliance 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 o f 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.

(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 p rovisions 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, meth ods, rates, fares, charges, and other projected results will, in fact, 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 f or this authority.Order 201 1

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Route 904 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 ser vices 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 b e 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 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, Washington, 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 change s 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.

(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 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 June 6, 2016 ; notwithst anding 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 prov ided 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 Submitted for Consolidation by Frontier

Own A ircraft Markets

Market Type of Authority Docket Number Level of

Service

Denver

- Cancun Exemption DOT

- OST

- 2002

- 13061 Year

- round

Denver

- Cozumel Exemption DOT

- OST

- 2005

- 21033 Seasonal

Denver

- Mazatlan Exemption DOT

- OST

- 2002

- 13011 Seasonal

Denver

- Puerto Vallarta Exemption DOT

- OST

- 2003

- 15371 Year

- round

Denver

- San Jose del Cabo Exemption DOT

- OST

- 2002

- 13011 Year

- round

Indianapolis

- Cancun Exemption DOT

- OST

- 2009

- 0215 Seasonal

Kansas City

- Cancun Exemption DOT

- OST

- 2004

- 17466 Year

- round Kansas City

- Puerto Vallarta Exemption DOT

- OST

- 2005

- 21033 Seasonal

Milwaukee

- Cancun Exemption DOT

- OST

- 2010

- 0137 Seasonal

St. Louis

- Cancun Exemption DOT

- OST

- 2009

- 0215 Seasonal

St. Louis

- Puerto Vallarta Exemption DOT

- OST

- 2010

- 0166 Seasonal

Salt Lake C ity

- Cancun Exemption DOT

- OST

- 2004

- 17467 Seasonal

Code

- Share

- Only Markets

Market Type of Authority Docket Number Level of

Service

Denver

- Ixtapa/Zihuatanejo Exemption DOT

- OST

- 2010

- 0152 Seasonal Kansas City

- San Jose del Cabo Exemption DOT

- OS T

- 2002

- 13011 Seasonal