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VIA EMAIL TRANSMISSION The Honorable Ray LaHood Secretary 

## "::?ARTMENT OF "!J'JSPORTATION ,:::1' 

## OPERATIONS

March 3, 2010

U.S. Department ofTransportation 1200 New Jersey Avenue, SE Washington, D.C. 20590
Dear Secretary LaHood: 

## fS 1 0-1 00303-056

Jonathan B. Hili

o 202.776.1725 I**Ihl~O\IIIohnes.com** 

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On November 25, 2009 Assistant Secretary Kurland wrote to counsel for Republic Airlines advising Republic that it could not become the holder and operate Midwest Airlines, Inc.'s two "within-perimeter" AIR-21 slot exemptions and five "slot slides" at Ronald Reagan Washington National Airport (DCA) that it had received when Republic purchased Midwest Airlines,lnc. That letter, acopy ofwhich is attached for your reference, concluded

we are satisfied that the transfer ofthe slot exemptions to Republic under the circumstances presenthere contravenes statutory and administrative direction, and section 41714(d) clearly limits slot slides to situations in which exceptional circumstances are shown.
The Deparbnent detennined to "resolicit applications for the two AIR-21 slot exemptions

..," and required Republic to submit an application for authority to continue

-- to use the five slot slides within 60 days. In the interim, the Department pennitted Republic to operate the AIR-21 exemptions and slot slides pending the outcome ofthese proceedings. Despitethe Department's conclusion that 

### it must initiate aproceeding to determine which canier satisfies the criteriaimposed by Section 41718(b) for the award ofDCA AIR-21 slot exemptions, DOT 

### has failed to initiate such resolicitation. Indeed, several inquires to your staffbyourrepresentatives during the preceding 60 days as to the timing ofthe resolicitation and have received no indication that the initiation ofthe proceeding is imminent. In the meantime, Republic has been continuing to use the two AIR-21 slots in violation of 49 USC §41718 (b).**~ow**lohnes-PUC**·~.tt.aw '~nt$,(OfII**  WASHINGTON, DC I ATl.ANTA, GA 1200 NewHampshire Avenue. NW. Sultl! 800 Washlnelon, DC 2003W802 T a02.n6.2000 F 202.7]6.2222The Honorable Ray LaHood March 3. 2010 Page 2

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In addition, withrespect to the 5 slot slide exemptions. the Department concluded

. that given Republic's holding over 100 exemptions at DCA the "exceptional circumstances"justifyingthe award ofthe exemptions to Midwest were no longer applicable. I Assistant Secretary Kurland indicated that Republic would have 60 days from November 29, 2009 to submit an application for authority to continue to use the five Midwest slots slides. Although the application was filed by Republic, no other caniers were invited to submit new competitive proposals and to date no action has been taken and Republic continues to utilize those five slots without proper authorityunder 49 USC §41714 (d). Despite our often stated desire to gain access to DCA, the traveling public continues 

### to be**~enied** the option oflow cost, award winning service from DCA that would beoffered by a low cost camer such as-JetBlue and as required by49 USC §4l718(b). JetBlue is prepared to use the two AIR-2l slots immediately and consider utilization ofthe additional five slots underlying the "slot slides" that Republic continues to 

### use illegally. On 

### behalfofJetBlue we ask that an immediate proceedingbe started to reallocate these 7 slots at DCA.

Enc. ce: Susan Kurland Robert Goldner Robert C. Land

I Indeed, one ofRepublic'sprofferedjustifications for continuing to operate the slot exemptions and slot slides was that Republic would continue to do business as "Midwest Airlines" and planned to request that IA T A issue Republic Midwest's YX designator code," Yet, Republic announced plans in lateFebruary to offer

# a"unified brand," indicating thatRepublic may drop the Midwest name, Tom Daykin, RepublicAirways Plans 'UnifIed'Brand, May Drop MidwestName, MilwaukeeJournal Sentinel OnJine (Feb. 26, 2010) (available at: http://WWW.jsonline.com!business/85502612.html) ("Republic 

### Chatnnan Bryan Bedford said a new brand is coming soon, suggesting it might not use either the Midwest orFrontiername.").