### BEFOR E TH E DEPARTMEN T O FTRANSPORTATIO N

WASHINGTON , D.C . p -'- r0 Applicatio n o f PORTE RAIRLINE S INC . for a n exemptio n pursuan t

t o 4 9 U.S.C . § 4010 9 an daforeig n ai r

carrie r permi t pursuan t t o 4 9 U.S.C . § 4130 2 (Canada

- U.S. ) Docke t No . OST-2007-2740 2

REPL Y O FPORTE RAIRLINE S INC . Communication s with respec t t o thi s documen t

shoul db e sen t

to :

Joh n E . Gillic k Davi dM . Endersbe e ZUCKERT , SCOUT T & RASENBERGER , L.L.P . 88 8 Seventeenth Street , NW Suit e 70 0 Washington , D C 2000 6 Tel : (202 ) 973-793 9 Fax:(202)342-068 3 Email : jegillick@zsrlaw.co m dmendersbee@zsrlaw.co m Counse l for

Porte r Airline s Inc .

Jul y 18,201 1

### BEFOR E TH E DEPARTMEN T O FTRANSPORTATIO N

WASHINGTON , D.C . Applicatio n o f PORTE RAIRLINE S INC . for a n exemptio n pursuan t

t o 4 9 U.S.C . § 4010 9 an daforeig n ai r

carrie r permi t pursuan t t o 4 9 U.S.C . § 4130 2 (Canad a- U.S. ) Docke t No . OST-2007-2740 2

REPL Y O FPORTE RAIRLINE S INC .

Introductio n O n Jun e 24 , 2011 , Porte r Airline s Inc . ("Porter" ) file da n applicatio n for

routin e renewa l o f it s exemptio n authority , whic h permit s it , inte r alia , t o operat e it s popular an dsuccessfu l transborde r

U.S . - Canad aservice s fromit s bas e a t Bill y Bisho p Toront o City Airport (YTZ). ' CommunityAI R("CAIR") , aloca l Toront o communit y grou p "devote dt o restorin g th e land s an d harbou r no w occupie db y th e Toront o Islan dairpor t t o park , recreation , an dcultura l uses," ^ file d th e onl y objectio n t o Porter' s renewa l application . A s mor e fully discusse dbelow , CAIR' s objectio n i s base do n incorrec t information , an d Porte r remain s fit , willing , an dabl e t o continu e t o performth e foreig n ai r transportation service s unde r it s twic e previously-grante dexemptio n authority . Th e Departmen t should , therefore , gran t

' Porter' s exemptio n wa s schedule dt o expir e o n Jul y 10 , 2011 , bu t remain s i n effec t

pursuan t t o it s timely-file d renewal applicatio n an drelianc e upo n 5 U.S.C . § 558(c) , a s implemente db y Part 37 7 o f th e Department' s regulations, whic hpermit s Porte r t o operat e unti l th e Departmen t act s o n it s application . ' Se e http://communityair.org/ .

### Repl y o f

Porte r Airlines , Inc . Pag e 2 Porter' s exemptio n renewa l reques t expeditiousl y an dthe n procee dt o issu e afina l orde r grantin g Porter' s pendin g foreig n ai r carrie r permi t applicatio n a s soo n a s possibl e thereafter. ' I . COMMUNIT Y AIR' S OBJECTION S AR E BASE D O N INCORREC T FACTS . A s note dabove , CAI Ri s agrou p whos e sol e purpos e appear s t o b e closin g YT Z a s a n airport s o tha t th e lan dma y b e converte dt o park an drecreationa l use." * Havin g repeatedl y faile d i n it s effort s t o persuad e th e citizen s o f Toront o an dit s ow n loca l governmen t official s t o clos e th e airport , CAI Rha s engage di n a n unprecedente deffor

t t o "export " it s oppositio n t o Porter' s operation s a

t thi s convenien t

airport t o th e Department' s licensin g process , b y repeatedl y objectin g t o Porter' s application s for authorit y that

ar e fully consisten t

with an dsupporte db y th e Ope n Skie s Agreemen t

betwee n th e Unite dState s an dCanada. " CAIR' s lates t

objectio n focuse s o n a

n incomplet e quot e from a200 9 Bloomber g new s article ^ ' ' base dupo n whic h CAI Rerroneousl y assert s that , unde r th e term s o f

a200 5 agreemen t betwee n Porter' s predecesso r entit y an dth e Toront o Por t Authorit y ("TPA" ) (th e airport' s proprietor) , U S Airway s an dothe r U.S . carrier s wishin g t o operat e fromYT Z woul db e barre d

^ Se e OrdtT 2009-10-2 , tentativel y determinin g t o gran t aforeig n ai r

carrie r permi t t o Porter . " * "Ove r th e year s CAI Rha s deal t wit hman y differen t

issues , bu t

the y al l relat e i

n some way t o effort s t o clos e th e islan dairport

an deffort s t o achiev e aclean , gree n waterfront. " http://communityair.org/Background/ Wh o WcAre/Wh o W e Arc.htm l "W e invit e yo u t o loo k a t som e idea s other s hav e had . an dt o develo p you r ow n idea s abou t

th e fabulou s possibilitie s tha t th e lan dhold s for

u s all , if

onl y th e airport

i s closed. " http://communityair.org/Solutions/Solutions.htm l • ^ See , e.g. , Answe r

o f Communit y Ai r

(Marc h7 , 2007 ) (arguin g that YT Z di dnot

meet safety an dsecurity standards) ; an dLette r

o f Octobe r 20 , 200 9 (arguing , despit e CAIR' s stanc e that YTZ shoul db e closed , tha t U.S . an dCanadia n carrier s di dno t hav e equal acces s t o YTZ) . ^ "Jaz z Ai r

Drop s Toront o Airport

Suit , Agenc y Says, " Octobe r 20 , 2009 , availabl e a

t http://www.bloombere.co.iD / apps/news?pid-2067000 1 &sid=aoCtCCe 2 Ob s ^ Th e complet e quote , inclusiv e o f th e tex t convenientl y omitte db y CAIR , i s a s follow s (emphasi s supplied) : "Porter' s agreemen t

wit hth e authority barre dregiona l carriers , includin g Jaz z Air . fromtlyin g betwee n the airport an dNe w York , Chicago , Boston , Washington , Philadelphia , Cincinnati , Detroi t an dCleveland , Jaz z Air' s lawye r Ear l Chernia k

sai dlas t yea r a t ahearing. " Th e sourc e for CAIR' s clai mis , o f

course , counse l fo

r th e on e carrie r

tha t relentlessl y an dunsuccessfull y fought Porte r i n th e Canadia n court s a s wel l a s befor e th e Department .

### Repl y o f

Porte r Airlines , Inc . Pag e 3 fromservin g th e airport . I t i s o n this basis , argue s CAIR , tha t th e TPA' s 200 7 statemen t tha t i t grante dU S Airways ' reques t for acces s t o YT Z i s someho w suspect , becaus e (s o goe s th e story ) TP A coul dno t

hav e grante dacces s t o U S Airways , aU.S . ai r carrier , with thes e rout e restriction s i n place . Th e short answe r t o thi s CAI Rallegatio n i s tha t i t i s simpl y wrong . Th e portio n o f th e 200 5 agreemen t

reference di n th e articl e neve r applie dt o U.S . carriers , an dth e 200 5 agreemen t was , i n an y event , amende dan drestate di n 2010 . Th e ne w agreemen t betwee n Porte r

an dth e TPA , th e "Amende dan dRestate dCommercia l Carrie r Operatin g Agreement, " whic h set s fort h th e ne w condition s applicabl e t o Porter' s operation s a t YTZ , contain s absolutel y n o limitation s o n th e route s tha t

ma y b e flown b y an y carrie r operatin g a

t th e airport . Thus , t o th e exten t that CAI R- agrou p wholl y dedicate dt o closin g YT Z - ha s an y concern abou t othe r carrier s bein g abl e acces s t o YTZ , suc h concern s are , quit e simply , withou t an y merit . An dt o th e exten t CAI R ha s specifi c concern s abou t th e accurac y o f

th e TPA' s Ma y 10 , 2007 , lette r t o th e Department , suc hconcern s ar e similarl y unfounde dan dfor mn o basi s for

objectin g t o Porter' s application . II . NEITHE RCOMMUNIT Y AI RNO RAN Y OTHE RPART Y OBJECTE D T O PORTER' S APPLICATIO N O N FITNES S GROUNDS . Significantly , neithe r

CAI Rno r

an y othe r

part y questione dPorter' s fitness . Porte r meet s al l o f th e Department' s criteri afor fitnes s an dfor

th e issuanc e o f

it s long-pendin g foreig n ai r carrie r permit . Porte r

i s operationall y an dfinanciall y fit ; th e Ope n Skie s Ai r Transport Agreemen t

betwee n th e Unite dState s an dCanad aplainl y encompasse s Porter' s operations ; Porte r i s license dan dqualifie db y it s homelan daeronautica l authorities ; it s Canadia n citizenshi p ha s neve r

bee n i n issue ; an dPorte r complie s i n al l othe r

respect s with th e Department' s requirement s an dobligation s for th e issuanc e o f

a n exemptio n an dforeig n ai r carrie r permit .

### Repl y o f

Porte r Airlines , Inc . Pag e 4 O n thi s basis . Porte r i s entitle dt o both apromp t renewa l o f

it s exemptio n authorit y an da final orde r

grantin g it s foreig n ai r

carrie r permit . Indeed , o n Marc h 11 , Porte r filed aMotion for Issuanc e o f

aForeig n Ai r

Carrie r Permi t i n this docket , requestin g tha t th e Departmen t

mov e t o finalize it s Octobe r

13 , 2009 , Sho w Caus e orde r tentativel y grantin g Porter' s foreig n ai r carrie r permit . Th e Departmen t shoul dissu e Porter' s exemptio n authorit y forthwith , an dgran t Porte r th e permanen t

permi t authorit y t o whic h i t

i s entitle dunde r

th e Ope n Skie s Ai r

Transport Agreement . WHEREFORE , for

th e foregoin g reasons , Porte r Airline s Inc . respectfull y request s (1 ) expeditiou s renewa l o f

it s exemptio n authority , a s describe dherein , for no t les s than atwo-year period , a s wel l a s (2 ) th e issuanc e o f afinal orde r

grantin g Porter' s foreig n ai r carrie r permi t a s soo n a s possible . Respectfull y submitted .



# 0L1 . t f ^ Joh n E . Gillic k Davi dM . Endersbe e Zuckert , Scoutt

& Rasenberger , LLP 88 8 Seventeenth Street , N W Suit e 70 0 Washington , D C 2000 6 Tel : (202 ) 973-793 9 Fax:(202)342-068 3 Email : jegillick@zsrlaw.co m dmendersbee@zsrlaw.co m Counse l for

Porte r Airline s Inc . Jul y 18 , 201 1CERTIFICAT E O FSERVIC E I hereb y certif

y that o n thi s 18t

hday o f July , 2011 , acop y o f

th e foregoin g Repl y o f

Porte r Airline s Inc . wa s serve db y electroni c mai l o n th e following : Stephe n J . Morrisse y Managin g Director , hitemationa l an d Regulatory Affair s Unite dAi r

Line s 102 5 Connecticu t

Avenue , N.W . Suit e 121 0 Washington , D C 2003 6 Steve.morrissey@united.co m R . Bruc e Keiner , Jr . Lorrain e B . Halloway Counse l fo

r Continenta l Airline s Crowel l & Morin g 100 1 Pennsylvani aAvenue , N.W . Washington , D.C . 2000 4 rbkeiner@crowell.co m Lhalloway@crowell.co m Da n Weis s Continenta l Airlines , Inc . Governmen t

Affairs—8" ' Floo r ]60 0 Smit hStree t Dept . HQSGV Houston , T X 7700 2 dan.weiss(5),coair.co m Anit aMosne r Jennife r Nowa k Counse l for

Unite dParce l Servic e Hollan d& Knight 209 9 Pennsylvani aAvenue , NW Suit e 100 Washington , D.C . 2000 6 Anita.mosner@hklaw.co m Jennifer.nowak@hkJaw.co m Alexande r

Va n Der Belle n Jef T Morga n Samett aC . Bamett Delt aAi r Line s 121 2 Ne w Yor

k Avenue , NW Suit e 20 0 Washington , D.C . 2000 5 Sascha.vanderbellen@delta.co m sametta.c.bameti@delta.co m Jeff.morgan@delta.co m Carl B . Nelson , Jr . Associat e Genera l Counse l America n Airiines , Inc . 110 1 Seventeenth Street , N.W . Suit e 60 0 Washington , D.C . 2003 6 car i .nelson@aa.co m Joh n L . Richardso n Counse l fo

r Amerije t Internationa l Joh n L . Richardson , P.L.L.C. 55 5 13"'Street , N.W . Suit e 42 0 Wes t Washington , D.C . 2000 4 jrichardson@!Johnlrichardson.co m Joli n Pal o Vic e President , Plannin g Military an dGovernmen t Evergree n Internationa l Airiines , Inc . 385 0 Thre e Mil e Lan e McMinnville , O R9712 8 jolin.palo@evergreenairIines.co m charters@evergreenairiines.co m Malcol mL . Beng e Counse l for

Worl dAirway s an dNorth American Airiine s Zuckert , Scoutt

& Rasenberger , L.L.P . 88 8 SeventeenthStreet , N.W . Suit e 70 0 Washington , D C 2000 6 mlbenge@zsrlaw.co m Angelin e Garbuzinsk i Legal an dRegulatory Affair s Federal Expres s Corporatio n 362 0 Hack s Cros s Roa d Buildin g B , 3'^

^ Floo r Memphis , T

N 3812 5 anbird@fedex.co m Pierr e Murph y Counse l fo

r Brendan Airways , L.L.C . d/b/ aUS A 300 0 120 0 Ne w Hampshir e Avenue , N.W . Suit e 59 0 Washington , D.C . 20036-680 2 pmurphy@lopmurphy.co mThoma s E . Fosko

Vic e Presiden t Ai r Transpor t

Internationa l LL C 2800Cantrel l Roa d Littl e Rock , AR7220 2 tom.fosko@airtransport.c c Stephe n H . Lachter Counse l for

Astar Ai r Carg o Lachter & Clement s LLP 115 0 Connecticu t

Avenue , N.W. , Ste . 90 0 Washington , D C 2003 6 slachter@lachter-clemenls.co m Howar dKas s Managin g Directo r

& Associat e Genera l Counse l U S Airway s MO I H Street , N.W . Suite 107 5 Washington , D.C . 2000 6 howard_kass@usairways.co m Russel l E . PoETime r Associat e Genera l Counse l an d Directo r o f Regulatory Affair s Atla s Air , Inc . 174 7 PeiuLsylvani aAvenue , N.W . Suit e 87 5 Washington , D. C 2000 6 rpommer@atlasair.co m Aaro n Goerlic h Counse l fo

r Allegian t Ai r an d Ryan Internationa l Airiine s Garofal o Goerlic hHainbac hP C 120 0 Ne w Hampshir e Avenu e NW Suit e 80 0 Washington , D.C . 20036-680 2 agoerJich@ggh-airJaw.co m Mar k W . Atwoo d Counse l fo

r Kalitt aAi r Coze n O'Conno r Army Navy Buildin g 162 7 1 Street , NW Suit e 110 0 Washington , D.C . 2000 6 mat wood@cozen . co m Robert E . Cohn Counse l fo

r Frontie r Airline s Hogan Lovell s 5.55 13' " Street , N.W . Washington , D.C . 2000 4 robert.cohn@hoganlovells.co m Robert P . Silverber g Jeffrey Johnso n Counse l fo

r AB X Ai r Silverberg , Goldma n & Bikoff , L.L.P . 110 1 30t hStreet , N.W . Suit e 12 0 Washington , D.C . 2000 7 rsilverberg@sgbdc.co m jjohnson@sgbdc.co m Marshal l S . Sinic k Counse l for

Alask aAiriine s an dFlorid aWes t

Internationa l Airway s Squire , Sander s & Dempse y I20 I Pennsylvani aAvenue , N.W . Suit e 50 0 Washington , D.C . 2000 4 msinick@ssd.co m Jonatha n B . Hill Counse l fo

r Hawaiian Airiine s an dJetBlu e Do w Lohne s 120 0 Ne w Hampshir e Avenue , N.W . Suit e 80 0 Washington , D C 20036-680 2 jhill@dowlohne s Joh n S . Frederickse n Vic e Presiden t

an dGenera l Counse l M N Airiines , LL C db aSun Country Airline s 130 0 Mendot aHeight s Road Mendot aHeights , M

N 5512 0 john.fredericksen@suncountry.co m Joann e W . Youn g Counse l for

Spiri t Airiine s Kirstei n & Youn g PLL C 100 1 Pennsylvani aAve. , N.W . Suit e 60 0 Sout

h Washington , D C 2000 4 jyoung@yklaw.co mWilliamC . Evan s

Joh n R . Mietus , Jr . Counse l fo

r Centurio n Ai r

Carg o an dTrad e Wind s Airline s 670 1 Democrac y Blvd . Suit e 30 0 Bethesda , M D 2081 7 bill@mietuslaw.co m john@mietuslaw.co m Jonatha n Blank J . Timoth y Hobb s Counse l for

Capita l Carg o Internationa l Airline s Kirkpatric k

& Lockhart Presto n Gate s Elli s LL P 160 1 K Stree t N W Washington , D C 2000 6 Jonathan,blank@klgates.co m tim.hobbs@kIgates.co m Lis aDun n Counse l fo

r TE M Enterprises /

Xtr aAirways / Casin o Expres s 33 1 7' " Stree t Elko,N V 8980 1 ldunn@xtraairways.co m Stephe n A . Alterma n Counse l fo

r Horizo n Ai r Meyer s & Alterma n 122 0 NineteenthStreet , N.W . Washington , D.C . 2003 6 cargoair@aol.co m Joh n M . Alle n Directo r Flight Standard s Servic e Federa l Aviatio n Administratio n 80 0 Independenc e Avenue , S.W . Roo m82 1 Washington , D.C . 2059 1 john.allen@faa.go v Brian He r Chair , ConununityAI R 7t h Floor , 15 0 Joh n Stree t Toront o M5 V 3E 3 biler@ilercampbell.co m

Eri c Christense n Vic e President , Plannin g Skywes t Airiine s 44 4 S . River

Road St . George , UT 8477 0 echristensen@skywest.co m DavidTvI . Endersbe e

Kevi n Montgomery Pete r Beckett Polar Ai r Cargo , Inc . 174 7 Pennsylvani aAvenue , N.W . Suit e 87 5 Washington , D. C 2000 6 kevin.montgomery @ polaraircargo.co m peter.beckett@polaraircargo.co m Thoma s A . Gillie s Chie f Operatin g Officer Southe mAi r

Inc . 11 7 Glove r

Ave . Norwalk , C T 0685 0 tgillies@southemair.co m