BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

Application of AIRTRAN AIRWAYS, INC. ) ) ) ) ) Foran exemptionpursuant to 49 U.S.C. § 40109 ) to engage in foreign scheduled airtransportation ) ofpersons, property and mail between Atlanta ) Hartsfield International Airport, Georgia (ATL), ) United States, and Cancun, Mexico (CUN) and ) bctween BaltimoreWashington International ) Thurgood Marshall Airport (BWI), United States, ) and Cancun, Mexico (CUN) ) Docket OST-2005-2II34

APPLICATION OF AIRTRAN AIRWAYS, INC. FOR RENEWAL OF EXEMPTION AUTHORITY TO PROVIDE SERVICE FORATL-CUN AND BWI-CUN

Communications withrespect to this document should be addressed to: Richard P. Magurno SeniorVice President & General Counsel AirTran Airways, Inc. 9955 AirTran Boulevard Orlando, FL 32827

Kevin P. Healy SeniorVice President, Marketing and Planning AirTran Airways, Inc. 9955 AirTran Boulevard Orlando, FL 32827 July 2,2010 Edward P. Faberman Wiley Rein LLP 1776 K Street, NW Washington, DC 20006 202-719-7402 efabennan@wileyrcin.com Counsel for AirTran AirwaysBEFORE THE DEPARTMENT OF TRANSPORTATION WASHlNGTON, D.C.

) Application of ) ) AIRTRAN AIRWAYS, INC. ) ) For an exemptionpursuantto 49 U.S.c. § 40109 ) to engage in foreign scheduled airtransportation ) ofpersons, property and mail betweenAtlanta ) Hartsfield International Airport, Georgia (ATL), ) United States, and Cancun, Mexieo (CUN) and ) between Baltimore Washington International ) Thurgood Marshall Airport (BWI), United States, ) and Cancun, Mexico (CUN) ) Docket OST-2005-21134

APPLICATION OF AIRTRAN AIRWAYS, INC. FOR RENEWAL OF EXEMPTION AUTHORITY TO PROVIDE SERVICE FOR ATL-CUN AND BWI-CUN

AirTran Airways, Inc. ("AirTran") respectfully files this Application for Renewal ofExemption with the Department ofTransportation ("Department"), pursuant to 49 U.S.C. § 40109 and Subpart C ofPart 302 (14 C.F.R.), the Department's regulations to allow AirTran to continue to provide carriage ofpersons, property and mail in scheduled combination servicebetween: 1) AtlantaHmisfield International Airport (ATL) and Cancun, Mexico (CUN) and 2) Baltimore-Washington International Thurgood Marshall Airport (BWl) and Cancun, Mexico (CUN). By Order dated October 17, 2008, the Department granted AirTran's September25,2008 application to serveboth markets.AirTranrequests that the Department grantrenewal ofthis exemption for aperiod oftwo (2) years from October 17, 2010 to Octobcr 17, 2012. AirTran respectfully requests that the Department act on this application in an expeditious manner. In support ofits application AirTran statcs as follows: 1. AirTran is aDelaware corporation with its principal place ofbusiness at 9955 AirTran Boulevard, Orlando, Florida 32827. 2. AirTran is a citizen ofthe United States as defined by Section40102 (a)(l5) of the Code and Part 204.2(c) ofthe Department's Economic Regulations. AirTran's President and at least two-thirds ofits Board and managing officers are citizens ofthe United States, and more than 75 percent ofthe voting interest is owned or controlledby citizens ofthe United States. 3. AirTran wants to continueits daily flights (during certain times ofthe year, AirTran operates additional wcekend service in addition to its daily flights) between ATL and CON and its daily flights (during certain times ofthe year, AirTran operatcs additional weekend servicein addition to its daily service) between BWI and CUN using B-737-700 aircraft configured at 137 seats. The ATL-CUN nonstops will continue to departAtlanta at 0915 hours, arriving at CUN at 1105 hours while the BWI-CUN nonstops will departBaltimore at 1035 hours, arriving CON at 1315 hours. In the northbound direction, the CUN-ATLnonstops will depart CUN at 1205 hours, arriving at ATL at 1555 hours, while the daily CUN-BWl nonstops will depart CON at 1415 hours, while arriving at BWl at 1840 hours.] Block times for the round-trip flights to/from ATL

J Times ofdeparture and arrival in both directions are local times.

2will be 5 hours 40 minutes and the round-trip flights to/from BWI will be 7 hours 5 minutes. 4. AirTran is fit, willing and able to conduct the services described in this application. AirTran is an air carrierholding certificate authorityto engagc in interstate scheduled airtransportation ofpersons, property and mail. See Orders 94-6-36, 94- 11,19,97-11-28,2000-7-5, and 2005-21134. 5. AirTrm1's operations are fully consistent with the December 12, 2005 Memorandum ofConsultations and Annexes between the United States and the United Mexican States ("Memorandum"), which expressly authorizes three U.S. carriers to fly betweenpoints in the United States and Cancun, Mexico. Section B(5) ofAnnex Ito the Memorandumprovides that "each Party shall be entitled to designate three airlines to provide scheduled combination services between anypoint orpoints in the United States and

... Cancun." AirTranrequests that it continue to be designated as one ofthe three U.S. carriers permitted to provide scheduled combination servicebetween ATL and CUN and BWI and CUN under the Memorandum. Delta Airlines also serves ATL-CUN and USA 3000 serves BWI-CUN during part ofthe year. 6. Grant ofthis Application wouldpermit the exercise ofimportant aviation traffic rights which are in the public interest. Moreover, AirTran, which is the second largest carrier atATL and the second largest carrierat BWI, continues to provide importantlowfare options on these routes. As an example ofits impact on fares, afterit enteredthe ATL-CUN market, AirTranreduced fares in the marketby approximately 30%. 7. AirTran's ATL-CUN and BWI-CUN flights will continue to respond to aneed for competitive non-stop services in the local market and will offerthe traveling public

3connecting opportunities with AirTran's flights to ATL (AirTran connects its ATL-CUN service to approximately 55 markets) and AirTran's CUN flights from BWI (providing connecting service to approximately 10 markets). 8. AirTran's services between ATL-CUN and BWI-CUN under this exemption authority will not lead to a near-tenn annual increase in fuel consumption oflO million gallons ormore. Accordingly, grant ofthis application will not constitute a "major regulatory action" within the meaning ofthe Energy Policy and Conservation Act of 1975 or Part 313 ofthe Department's Economic Regulations. 9. AirTran will accept and comply with the terms and conditions that the Department routinely imposes on exemption authority for scheduled foreign air transportation. WHEREFORE, AirTran respectfully requests that the Department grant arenewal ofits exemption authoritypennitting itto continue to engage in the transportation of persons and property and provide low fare travel options for thousands oftravelers between ATL-CUN and BWI-CUN through October l7, 2012.

Respectfully submitted, WILEY REIN LLP

Dated: July 2, 2010

4 Edward P. Fabennan Wiley Rein LLP l776 K Street NW Washington, DC 20006 Tel: 202.719.7000 efabennan@wileyrein.comCERTIFICATE OF SERVICE Ihereby certify that on July 2,2010 the attached document, Application ofAirTran Airways, Inc. for Renewal ofExemption Authority to Provide Service for ATL-CUN and BWI-CUN, was sent viaemail transmissionto the following: carl.nelson@aa.com msinick@ssd.com jyoung@yklaw.com pmurphy@lopmumhy.com dkirstein@yklaw.com cjsimpson@zsrlaw.com rbkeiner@crowe1l.com recohn@hhlaw.com sascha.vanderbellenCdJdeltaocom jeffrey.manley@united.com howard kass@usairways.com thuy.cooper@dot.gov esta.rosenberg@dot.gov linda.lundell@dot.gov fhavent@airlineinfo.com jhill@dowlohnes.com hkamen@coair.com dan.weiss@coair.com jeff.morgan@delta.com jolm.fredericksen@suncountrv.com pmumhy@lopmurphy.com barbara.russell@virginamerica.com and viaU.S mail to: Tim Campbell MarylandAviation Administration P.O. Box 8766 Third Floor, TenninaI Building BWI Airport, MD 21240-0766 BenjaminR. DeCosta Aviation General Manager Hartsfield-Jackson Atlanta International Airport 6000 N. Tenninal Pkwy, Suite 4000, Atrium P.O. Box 20509 Atlanta, GA 30320