BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

Application of

AIRTRAN AIRWAYS, INC.

)

)

)

)

) For an exemption pursuant to 49 U.S.C. § 40109 )

to engage in foreign scheduled air transportation )

ofpersons, property and mail between Atlanta )

Hartsfield International Airport, Georgia (ATL), )

United States, and Cancun, Mexico (CUN) and )

bctween Baltimore Washington 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 FOR ATL-CUN AND BWI-CUN

Communications with respect to this document should be addressed to:

Richard P. Magurno

Senior Vice President & General Counsel

AirTran Airways, Inc.

9955 AirTran Boulevard

Orlando, FL 32827

Kevin P. Healy

Senior Vice 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 Airways
BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHlNGTON, D.C.

)

Application of )

) AIRTRAN AIRWAYS, INC. )

) For an exemption pursuant to 49 U.S.c. § 40109 )

to engage in foreign scheduled air transportation )

of persons, property and mail between Atlanta )

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

of Exemption 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 of persons, property and mail in scheduled

combination service between: 1) Atlanta Hmisfield 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 September 25,2008 application to serve both markets.
AirTran requests that the Department grant renewal ofthis exemption for a period

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 a Delaware corporation with its principal place of business at 9955

AirTran Boulevard, Orlando, Florida 32827.

2. AirTran is a citizen ofthe United States as defined by Section 40102 (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 controlled by

citizens ofthe United States.

3. AirTran wants to continue its 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 service in 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

depart Atlanta at 0915 hours, arriving at CUN at 1105 hours while the BWI-CUN

nonstops will depart Baltimore at 1035 hours, arriving CON at 1315 hours. In the

northbound direction, the CUN-ATL nonstops 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 of departure and arrival in both directions are local times.

2
will 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 carrier holding certificate authority to engagc in interstate

scheduled air transportation of persons, 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

between points in the United States and Cancun, Mexico. Section B(5) of Annex I to the

Memorandum provides that "each Party shall be entitled to designate three airlines to

provide scheduled combination services between any point or points in the United States

and ... Cancun." AirTran requests that it continue to be designated as one ofthe three

U.S. carriers permitted to provide scheduled combination service between 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 would permit the exercise ofimportant aviation traffic

rights which are in the public interest. Moreover, AirTran, which is the second largest

carrier at ATL and the second largest carrier at BWI, continues to provide important lowfare options on these routes. As an example ofits impact on fares, after it entered the

ATL-CUN market, AirTran reduced fares in the market by approximately 30%.

7. AirTran's ATL-CUN and BWI-CUN flights will continue to respond to a need for

competitive non-stop services in the local market and will offer the traveling public

3
connecting 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 of lO million

gallons or more. 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 a renewal

ofits exemption authority pennitting it to 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.com
CERTIFICATE OF SERVICE

I hereby certify that on July 2,2010 the attached document, Application of AirTran

Airways, Inc. for Renewal of Exemption Authority to Provide Service for ATL-CUN and

BWI-CUN, was sent via email transmission to 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.vanderbellenCdJdeltao com

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 via U.S mail to:

Tim Campbell

Maryland Aviation Administration

P.O. Box 8766

Third Floor, TenninaI Building

BWI Airport, MD 21240-0766

Benjamin R. DeCosta

Aviation General Manager

Hartsfield-Jackson Atlanta International Airport

6000 N. Tenninal Pkwy, Suite 4000, Atrium

P.O. Box 20509

Atlanta, GA 30320