UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC



### Issued by the Department of Transportation on June 23 , 2010

NOTICE OF ACTION TAKEN

-- DOCKET S DOT

- OST

- 2010

- 0152

This serves as notice to the public of the action described below, taken by the Department official indicated (no additional confirming order will be issued in this matter).

Joint Application of REPUBLIC AIRLINE INC. (Republic) and FRONTIER AIRLINES, INC. (Frontier)

, filed 6/11/10 , for:

XX Exemption for Republic for two years under 49 U.S.C. 40109 to provide the following service:

Scheduled foreign air transportation of persons, property, and mail between Denver, Colorado, and San Jose del Cabo, Mexi co; Denver, Colorado

, and Ixtapa/Zihuatanejo, Mexico; Denver, Colorado, and Mazatlan, Mexico; Denver, Colorado, and Puerto Vallarta, Mexico; Kansas City, Missouri, and Puerto Vallarta, Mexico; and Kansas City, Missouri, and San Jose del Cabo, Mexico. 1 2 3

XX Exemption for Frontier for two years under 49 U.S.C. 40109 to provide the following service:

Scheduled foreign air transportation of persons, property, and mail between Denver, Colorado, and Ixtapa/Zihuatanejo , Mexico; and Kansas City, Missouri, and San Jose del Cabo, Mexico. 4

Joint Applicant R ep: Robert E. Cohn (202) 637

- 4999 DOT Analyst: Linda L. Lundell (202) 366

- 2336

D I S P O S I T I O N

XX Granted, subject to conditions (see below)

The above action was effective when taken: June 23

, 2010

, through June 23 , 2012

.

Action taken by: Paul L. Gretch, Director

Office of International Aviation

XX The authority granted is consistent with the aviation agreement between the United States and

Mexico.

1 We note that Republic already holds exemption authority to serve the Denver

- San Jose del Cabo, Denver

Mazatlan, Denver

- Puerto Vallarta, and Kansas City

- Puerto Vallarta markets. That authority, however, is issued to Republic, operating under the trade n ame of Midwest Airlines, and is restricted to code

- share services only ( see Notice of Action Taken dated March 9, 2010, in Docket DOT

- OST

- 2010

- 0004).

2 Republic will serve these markets by operating on behalf of, and under the trade name and designator code of, Frontier. Frontier already holds exemption authority to serve each of these markets, except for the Denver

Ixtapa/Zihuatanejo and Kansas City

- San Jose del Cabo markets, for which it seeks authority here (see below).

3 Republic will serve the De nver

- San Jose del Cabo/Puerto Vallarta markets on a year

- round basis and all other markets on a seasonal basis. It will begin serving the Denver

- San Jose del Cabo/Mazatlan/Puerto Vallarta and Kansas City

- San Jose del Cabo markets on December 16, 2010; the Denver

- Ixtapa/Zihuatanejo market on January 15, 2011; and the Kansas City

- Puerto Vallarta market on February 1, 2011.

4 Frontier will serve these markets by placing its designator code on Republic’s flights

.Except to the extent exempted or waived, this authority is subject to the terms, conditions, and limitations

indicated:

XX The holder s’ certifica tes of public convenience and necessity

XX Standard Exemption Conditions (attached)

Conditions : The U.S.

- Mexico exemption authority granted is subject to the dormancy notice requirements set forth in condition 7 of Appendix A of Order 88

- 10

- 2, and the notice requirements for

seasonal/intermittent services (identified by the applicants), as set for th in Order 96

- 11

- 24, at 5

. Consistent with our standard policy, the dormancy notice period will begin on the applicants’ proposed startup dates for the subject services

, as follows: December 16, 2 010, for the Denver

- San Jose del

Cabo /Mazatlan/Puerto Vallarta and Kansas City

- San Jose del Cabo markets; January 15, 2011, for the

Denver

- Ixtapa/Zihuatanejo market; and February 1, 2011, for the Kansas City

- Puerto Vallarta market.

The exemption authority granted to Frontier is limited to co de

- share services only.

The code

- share operations conducted under this authorization are subject to the following conditions:

(a) The code

- sharing operations conducted under this authority must comply with 14 CFR 257 and with any amendment to the Departm ent’s regulations concerning code

- share arrangements that

may be adopted. Notwithstanding any provisions in the contract between the carriers, our approval here is expressly conditioned upon the requirements that the subject foreign air transportation be sold in the name of the carrier holding out such service in computer reservation systems and elsewhere; that the carrier selling such transportation ( i.e. , the carrier shown on the ticket) accept responsibility for the entirety of the code

- share journey fo r all obligations established in its contract of carriage with the passenger; and that the passenger liability of the operating carrier be unaffected; and

(b) The authority granted here is specifically conditioned so that neither Republic nor Frontier shall

g ive any force or effect to any contractual provisions between themselves that are contrary to these

conditions.

Remarks: We acted on this application without expiration of the 15

- day answer period with the consent of all parties served with a copy of th e application.

On the basis of data officially noticeable under Rule 24(g) of the Department's regulations, we found the applicants qualified to provide the exemption services authorized.

Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our action was consistent with Department policy; (2) grant of the authority was consistent with the public interest; and (3) grant of the authority would not constitute a major regulatory action under the Energy Policy and Conservation Act of 1975. To the extent not granted, we denied all requests in the referenced

Docket. We may amend, modify, or revoke the authority granted in this Notice at any time without hearing at our discretion.

Persons entitled to petition the De partment for review of the action set forth in this Notice under the Department’s regulations, 14 CFR §385.30, may file their petitions within seven (7) days after the date of issuance of this Notice. This action was effective when taken, and the filing o f a petition for review will

not alter such effectiveness.

An electronic version of this document is available on the World Wide Web at: www.regulations.govATTACHMENT

U.S. Carrier Exemption Conditions

In the conduct of the operations authorized, the U.S. carrier applicant(s) shall:

(1) Hold at all times effective operating authority from the government of each country served;

(2) Comply with applicable requirements concerning oversales contained in 14 CFR 250 (for scheduled operations, if authorized);

(3) Comply with the requirements for reporting data containe d in 14 CFR 241;

(4) Comply with requirements for minimum insurance coverage, and for certifying that coverage to the Department, contained in 14 CFR 205;

(5) Except as specifically exempted or otherwise provided for in a Department Order, comply with the requirements of 14 CFR 203, concerning waiver of Warsaw Convention liability limits and defenses;

(6) Comply 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 compliance with all applicable U.S. Government requirements concerning security, the holder shall, before commencing any new service (including c harter flights) to or from a foreign airport, contact its Principal Security Inspector (PSI) to advise the PSI of 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;

(7) Comply with such other reasonable terms, conditions, and limitations required by the public interest as may be prescribed by the Department of Transportation, with all applicable orders and regulations of other U.S. agencies and court s, and with all applicable laws of the United States.

The authority granted shall be effective only during the period when the holder is in compliance with the conditions imposed above.



### 1/08