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BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

Application of

REPUBLIC AIRLINE INC.

for an exemption from 14 CFR Part 93 under 49

U.S.C. § 41714(d)

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Docket DOT-OST-1999-6240

MOTION OF REPUBLIC AIRLINE INC.

FOR AN AMENDMENT TO SLOT SLIDE EXEMPTION AUTHORITY

Communications with respect to this document should be addressed to:

Ethan J. Blank

Vice President, General Counsel

REPUBLIC AIRWAYS HOLDINGS INC.

8909 Purdue Road

Indianapolis, Indiana 46268

Robert E. Cohn

Patrick R. Rizzi

HOGAN LOVELLS US LLP

Columbia Square

555 Thirteenth Street, NW

Washington, DC 20004

+1 202 637 4999/5659

robert.cohn@hoganlovells.com

patrick.rizzi@hoganlovells.com

Counsel for

REPUBLIC AIRLINE INC.

July 18, 2012
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BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

Application of

REPUBLIC AIRLINE INC.

for an exemption from 14 CFR Part 93 under 49

U.S.C. § 41714(d)

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)

)

)

)

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Docket DOT-OST-1999-6240

July 18, 2012

MOTION OF REPUBLIC AIRLINE INC.

FOR AN AMENDMENT TO SLOT SLIDE EXEMPTION AUTHORITY

Republic Airline Inc. (“Republic”) hereby moves the Department to amend the

“slot slide” exemption authority granted in DOT Order 1999-11-4 in order to permit

Republic the flexibility to serve Omaha, Nebraska (in addition to Milwaukee,

Wisconsin), depending on its assessment of market conditions. Specifically,

Republic requests that the designated destination for slots #4126/1236 and

#4124/1087 be changed to permit it to use the slot slide exemptions for service to

Omaha or Milwaukee. Republic requests expeditious action on this request.

The requested amendment meets the statutory requirements in 49 U.S.C. §

41714(d) and is fully consistent with the public interest and Department policy. By

allowing Republic the flexibility to alter the use of its slot slide exemption, the

Department will enable Republic to use its scarce DCA slots more efficiently and to

match more closely its services to the demands of the marketplace. Republic uses

the slots to provide service to Milwaukee under the Frontier Airlines brand. Frontier

has significantly reduced its overall service levels at Milwaukee. As of June 2,

Frontier offers only 8 daily flights to/from Milwaukee, down from over 80 daily flights a
Motion of Republic Airline

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year ago. As a result of these service adjustments, Frontier would like the flexibility

to utilize these slots more effectively and productively.

I. BACKGROUND.

By DOT Order 1999-11-4, the Department granted an exemption to Midwest

Express Airlines (“Midwest Express”) enabling the carrier to slide two 2100 slots at

Ronald Reagan Washington National Airport (“Washington National” or “DCA”) to

1400 and 1500, respectively, for service to/from Milwaukee, Wisconsin. By DOT

Notice, issued April 14, 2011 (Docket DOT-OST-1999-6240), the Department

approved Republic’s application to retain these slot slide exemptions (and, in the

case of #4124, to re-time the slot slide from 1400 to 1700).

Pursuant to this Motion, Republic requests that the Department amend the slot

slide exemption order so that Republic can alter its use of these slots consistent with

the Statute and Department precedent.

II. DISCUSSION.

1. Republic requests that the designated destination for slots #4126/1236

and #4124/1087 – as slid pursuant to the exemption granted by DOT Order 1999-11-

4 and modified by DOT Notice, issued April 14, 2011 – be changed to permit it to use

the slot slide exemptions for service to Omaha or Milwaukee.

2. Approval of this request would be fully consistent with the public

interest, the Statute’s “exceptional circumstances” standard, and DOT precedent.

These slot slide exemptions are operated by Republic under the “Frontier Airlines”
Motion of Republic Airline

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brand. By permitting Republic d/b/a Frontier to change the designated destination

served with these two slot slide exemptions, the Department would enable Republic

d/b/a Frontier to use its scarce DCA slots and slot exemptions more efficiently and

productively. As noted above, Frontier has dramatically reduced service at

Milwaukee and shifted resources to other, more economically productive routes.

Allowing Republic d/b/a Frontier to use these slots to serve Omaha will enable

Frontier to better align its LCC services to its revamped route structure to better meet

consumer demand and to more effectively compete in the marketplace.

3. As a preliminary matter, the requested amendment satisfies the

“statutory operational requirements” under 49 U.S.C. § 41714(d)(1)(A)-(E) as follows:

 It does not involve new or additional slot slide exemption requests, nor

does it seek any modifications to the slot slide times.

 It would not result in an increase in the total number of slots per day at

DCA or the total number of slots at DCA from 7:00 a.m. to 9:59 p.m.;

 It would not increase the number of operations at DCA in any one-hour

period by more than two operations;

 It would not result in the withdrawal or reduction of slots operated by an

air carrier or a net increase in the noise impact on surrounding

communities.

 It merely seeks an amendment to the designated destination for which

the slot slide exemption at issue may be used.

4. In terms of the “exceptional circumstances” requirement and the public

interest, changing the designated destination to add Omaha would enable Republic
Motion of Republic Airline

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to enhance its service, more effectively develop and market its DCA services, and

better meet demand and the needs of the destination communities. Indeed, the

Department has previously concluded that these justifications for service to

underserved Midwest destinations, such as Omaha, by a carrier with limited DCA

access satisfied the “exceptional circumstances” standard. See Midwest Express,

DOT Order 1994-9-49, at 3 (granting slot slide exemption for service to Omaha

because it would address the important “needs of the communities of Nebraska,

especially Omaha and its surrounding communities”); see also Midwest Express,

DOT Orders 1999-11-4, at 4; 2000-7-20, at 4, 2000-10-27, at 2, and 2001-3-17, at 2.

5. The requested amendment to this slot slide exemption authority would

enable Republic to bolster its service to Omaha to meet market demand. It would

enable Republic d/b/a Frontier to operate a conveniently-timed third daily nonstop

flight between DCA and Omaha to help meet the vitally important and continuing

service needs in Nebraska and western Iowa. In fact, Reagan Washington National

Airport is among Omaha’s top 5 O&D destinations, and Washington D.C.

(DCA/IAD/BWI) is among Omaha’s top 5 destinations. Moreover, Frontier Airlines

(with service operated by Republic) continues to be the chosen carrier – based on

service and price – for government travel between DCA and Omaha in CY 2012

under the GSA’s City-Pair Program, and thus an additional daily service to Omaha

would offer government employees greater low-fare service options for traveling

between these two communities.

6. Republic’s request is fully consistent with Department precedent. In

DOT Order 2006-3-9, the Department approved a request by Spirit Airlines to amend
Motion of Republic Airline

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its slot slide exemption authority in order to permit it to add Detroit as a designated

destination in addition to Ft. Lauderdale under that authority. The Department noted

that there “are no additional statutory impediments in amending existing slot

exemption requests to revise the markets served . . . to/from DCA and allow for

increased flexibility and account for changes in market conditions.” DOT Order 2006-

3-9, at 3. The Department also found that Spirit’s request met the “exceptional

circumstances” standard because Spirit had a very small, constrained service pattern

at DCA and the ability to serve Detroit as an additional point enabled Spirit to operate

its services “more efficiently and more closely match its services to the dynamic

demand patterns the industry is currently experiencing.” Id. The same rationale

holds true for Republic’s request to add Omaha as a designated destination.

7. The benefits of this amendment to Republic’s slot slide exemption

clearly meet the public interest standard. Frontier provides highly beneficial LCC

services, providing consumers with low-fare competitive benefits. In light of Frontier’s

service reduction at Milwaukee, the use of the slot slide exemptions will enable

Frontier to adjust its LCC branded service to more effectively and efficiently meet

consumer demand. Moreover, Republic d/b/a Frontier has few DCA slots relative to

its larger LCC and mainline competitors. Given its small presence and very limited

flexibility at DCA, the exceptional circumstances standard is clearly fulfilled.

III. CONCLUSION.

Republic’s Motion fully satisfies the statutory criteria and the “exceptional

circumstances” standard, and is consistent with DOT policy and precedent.
Motion of Republic Airline

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Accordingly, Republic urges the Department to expeditiously grant this Motion to

amend its slot slide exemption authority as discussed herein.

Respectfully submitted,

__________________________________

Robert E. Cohn

Patrick R. Rizzi

HOGAN LOVELLS US LLP

555 Thirteenth Street, NW

Washington, DC 20004

+1 202 637 4999/5659

Counsel for

Republic Airline Inc.
Motion of Republic Airline

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CERTIFICATE OF SERVICE

I hereby certify that a copy of the foregoing Application of Republic Airline Inc. for an

Amendment to Slot Slide Exemption Authority has been served this July 18, 2012, upon

each of the following addressees:

bob.kneisley@wnco.com; msinick@ssd.com; carl.nelson@aa.com; robert.wirick@aa.com;

francis.heil@aa.com; james.kaleigh@aa.com; sascha.vanderbellen@delta.com;

jhill@dowlohnes.com; jyoung@yklaw.com; dkirstein@yklaw.com;

john.fredericksen@suncountry.com; dan.weiss@united.com; howard_kass@usairways.com;

barbara.russell@virginamerica.com; esta.rosenberg@dot.gov; brett.kruger@dot.gov;

urskr@state.gov; info@airlineinfo.com; brian.ctr.meehan@faa.gov

_____________________________

Patrick Rizzi