BEFORE THE

U.S. DEPARTMENT OF TRAN S PORTATION

OFFICE OF THE SECRETARY

WASHINGTON D

. C

.

________________________________ _____ _____ )

Application of )

)

SOUTHWEST AIRLINES CO

. )

) Docket No. OST

- 201 4

-

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

t o engage in foreign scheduled air transportation )

of persons, property and mail between )

Orange County , California and Puerto Vallarta, )

Mexico ; and between Baltimore, Maryland and )

San Jose del Cabo, Mexico )

(SNA

– PVR; BWI

– SJD) )

_____________________________________ _____ )

APPLICATION OF SOUTH W EST AIR LINES CO

.

Communications with respect to this document should be sent to:

Ron Ricks Robert W. Kneisley

Executive Vice President

- Associate General Counsel

Chief Legal & Regulatory Officer Leslie C. Abbott

Mark Shaw Senior Attorney

Vice President General Counsel & SOUTHWEST AIRLINES CO.

Corporate Secretary 919 18th Street , N.W. , Suite 600

Washington, D.C. 200 0 6

bob.kneisley@wnco.com

(202) 263

- 6284

November 10 , 2014

POLLING NOTICE: Expedited treatment of this application is requested.

Southwest will poll the carriers on the attached service list and advise the

Department of the results as soon as possible.1 BEFORE THE

U.S. DEPARTMENT OF TRAN S PORTATION

OFFICE OF THE SECRETARY

WASHINGTON D

. C

.

________________________________ _____ _____ )

Application of )

)

SOUTHWEST AIRLINES CO. )

) Docket No. OST

- 2014

-

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

to engage in foreign scheduled air transportation )

of persons, property and mail between )

Orange County, California and Puerto Vallarta, )

Mexico ; and between Baltimore, Maryland and )

San Jose del Cabo, Mexico )

( SNA

– PVR ; BWI

– SJD ) )

_____________________________________ _____ )

APPLICATION OF SOUTH W EST A IRLINES CO

.

Pursuant to 49 U.S.C. § 40109 and Subpart C of the Department’s Rules of

Practice, Southwest Airlines Co. (“Southwest” or “the Company” ) hereby applies for an

exemption from 49 U.S.C. § 41101 authorizing Southwest to engage in scheduled

foreign air transportation of persons, property, and mail between (i) John Wayne Airport,

Orange County, California (“SNA”) and Lic. Gustavo Diaz Ordaz International Airport in

Puerto Vallarta, Mexico (“PVR”)

, and (ii) Thurgood Marshall Baltimore Washington

International Airport (“BWI”) and Los Cabos International Airport in San Jose del Cabo

(“SJD”)

.

Assuming receipt of all necessary approvals, Southwest proposes to begin

selling SNA

- PVR and BWI

- SJD flights on December 17 , 2014 for service commencing

on or about June 7

, 2015

. Southwest requests that the exemption authority specified in

th is application be granted as soon as possible for a period of at least two years.2

In support of this application, Southwest states the following :

1. Southwest is a Texas corporation with its principal place of business at 2702

Love Field Drive, Dallas, Texas, 75235

.

2. Southwest is a citizen of the United States as defined by Section 40102(a)(15) of

Title 49 of the United States Code and Section 204.2(c) of the Department’s Economic

Regulations. Southwest’s president and at least two

- thirds of its board of directors and

other managing officers are citizens of the United States. Southwest is under the actual

control of citizens of the United States and more than 75 percent of its voting interest i s

owned or controlled by persons that are citizens of the United States.

3. Southwest is fit, willing and able to conduct the services described in this

application. Southwest commenced commercial service in 1971 as an intrastate airline,

and has operated as a U.S. certificated air carrier since 1979. Southwest requests that

the Department take official notice pursuant to Rule 24 ( 14 CFR § 302.24 ) of

Southwest's Certificate of Public Convenience and Necessity for Interstate Air

Transportation, originally i ssued by Order 79

- 6

- 187, and subsequently amended by

Order 86

- 5

- 60 (May 15, 1986), Order 98

- 7

- 0 (July 8, 1998), and Order 2005

- 12

- 4

(December 9, 2005). Southwest has consistently maintained its Certificate in good

standing for the past 35 years.

4. Furthermore, Southwest already holds numerous exemption authorities from the

Department authorizing service to countries in the Caribbean , including Aruba, the

Bahamas, Jamaica, and the Dominican Republic, 1 as well as a number of U.S.

–

Mexico markets

, including BWI

- CUN, AUS

- CUN, AUS

- SJD, DEN

- CUN, MKE

- CUN,

1 See Notice of Action Taken issued October 23, 2013 in Docket DOT

- OST

- 2013

- 0181.3

MDW

- CUN, SAT

- MEX, SA T

- CUN, SNA

- MEX

, and SNA

- SJD 2

. Pursuant to Rule 24 of

the Department’s Rules of Practice, Southwest asks the Department to take official

notice of all data on file necessary to establish Southwest ’s fitness

.

5. Southwest proposes to commence service between SNA and PVR on or about

June 7, 2015 , initially on a daily basis using Stage III Boeing 737

- 700 aircraft configured

for 143 seats . Similarly, the Company proposes to commence service between BWI

and SJD on or about June 13, 2015 , initially on a Saturday

- only basis using Stage III

Boeing 737

- 700 aircraft configured for 143 seats

.

6. The requested exemption authority is fully consistent with the terms of the U.S.

-

Mexico Air Transport Agreement (Agreement) as amended by the two governments on

Decembe r 12, 2005. The Agreement authorizes carriers designated by the U.S. to

operate “[f]rom a point or points in the United States to a point or points in Mexico.”

Annex I(A)(1)(a). Pursuant to the amended Agreement, three U.S. carrier designations

are author ized on U.S.

– PVR routes and on U.S.

-- SJD routes. Annex I(B)(4

- 5).

Currently three U.S. carrier designations are available on each of the routes specified

herein.

7. Southwest is the largest U.S. airline in terms of domestic passengers carried and

provides more service at both SNA and BWI than any other carrier by a wide margin

.

Southwest offers 53 daily nonstop flights from SNA to 11 destinations, including two in

Mexico: Mexico City and San Jose del Cabo. At BWI, Southwest currently offers 229

d aily nonstop flights to 58 cities, including five international destinations: Aruba,

Bahamas, Dominican Republic, Jamaica and Cancun, Mexico. Southwest’s proposed

2 See Notice of Action Taken issued October 23, 2013 in Docket DOT

- OST

- 2013

- 018 0

.4

new international service at SNA and BWI w ill provide the only scheduled nonstop

flights on these routes and will offer consumers on both coasts new reliable low

- cost

travel options to Mexico

, and clearly is in the public interest.

8. The environmental impacts of Southwest ’s propose d services are de minimis

,

and will therefore not lead to a near

- term annual increase in aircraft fuel consumption of

10 million gallons or more. Accordingly , grant of this application will not constitute a

“major regulatory action” within the meaning of the Energy Policy and Conservation Act

of 1975 or Part 313 of the Department’s Economic Regulations.

9. Southwest will accept and comply with the terms and conditions that the

Department routinely imposes on exemption authority for scheduled foreign air

transportation.

WHE REFORE, Southwest requests that the Department act expeditiously in

granting the requested exemption authority to enable Southwest to engage in scheduled

foreign air transportation of persons, property and mail between Orange County,

California and Puerto Vallarta , Mexico

, and between Baltimore, Maryland and San Jose

del Cabo , Mexico as described above.

Respectfully submitted,

______________________ Robert W. Kneisley

November 10 , 20145 C ERTIFICATE OF SERVIC E

I hereby certify that on November 10 , 201 4, a copy of the foregoing was served

via e

- mail on the following persons:

msinick@ssd.com (Alaska Airlines)

howard.kass@aa.com (Ameri can Airlines)

robert.wirick@aa.com (American Airlines)

sascha.vanderbellen@delta.com (Delta Air Lines)

chris.walker@delta.com (Delta Air Lines)

matwood@cozen.com (Frontier Airlines)

stephen.lachter@lachterlaw.com (Frontier Airlines)

robert.land@jetblue.com (JetBlue Airways)

jhill@cooley.com (JetBlue Airways)

perkmann@cooley.com (JetBlue Airways)

robert.cohn@hoganlovells.com (Republic Airways)

patrick.rizzi@hoganlovells.com (Republic Airways)

dkirstein@ yklaw.com (Spirit Airlines)

jyoung@yklaw.com (Spirit Airlines)

thomas.ting@suncountry.com (Sun Country Airlines)

dan.weiss@united.com (United Air l ines)

steve.morrissey@united.com (United Airlines)

gmurphy@crowell.com (United Airlines)

sseiden@crowell.com (United Airlines)

john.varley@virginamerica.com (Virgin America)

susan.kurland@dot.gov

brian.hedberg@dot.gov

brett.kruger@dot.gov

reese.davidson@dot.gov

todd.homan@dot. gov peter.irvine@dot.gov

cristinasa@state.gov

Paul J. Wiedefeld,

Baltimore/Washington International Airport

PWiedefeld@bwiairport.com

Alan L . Murphy

Courtney Wierchioch

John Wayne Airport

amurphy@ocair.com

cwiercioch@ocair.com

info@airlineinfo.com

__________________________ Leslie C. Abbot t