010-8087-6970/1/AMERICAS

BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

)

In the matter of the application of )

)

CEBU AIR, INC. D/B/A CEBU PACIFIC AIR ) Docket DOT-OST-2012-0176

)

for an exemption from 49 U.S.C. §41301 )

)

APPLICATION FOR RENEWAL OF EXEMPTION

Communications with respect to this document should be addressed to:

Charles F. Donley II

Squire Patton Boggs (US) LLP

2550 M Street, N.W.

Washington, D.C. 20037

(202) 626-6840 phone

(202) 626-6780 fax

charles.donley@squirepb.com

Counsel to Cebu Air, Inc. d/b/a Cebu Pacific

Air

DATED: June 1, 2015
010-8087-6970/1/AMERICAS

BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

)

In the matter of the application of )

)

CEBU AIR, INC. D/B/A CEBU PACIFIC AIR ) Docket DOT-OST-2012-0176

)

for an exemption from 49 U.S.C. §41301 )

)

APPLICATION FOR RENEWAL OF EXEMPTION

Cebu Air, Inc. d/b/a Cebu Pacific Air (“Cebu”), pursuant to 49 U.S.C. 40109, hereby

requests renewal of the exemption authority granted to it by the Department of Transportation

(“Department”) in the above-captioned docket permitting Cebu to engage in (i) scheduled

foreign air transportation of persons, property and mail from the Philippines via intermediate

points to Honolulu, San Francisco, Los Angeles, Guam, Saipan, and four additional points in the

United States selected by the Philippines, and beyond to five countries selected by the

Philippines; and (ii) charters in accordance with the Department’s regulations.1

Cebu requests renewal of this exemption for a one-year period on its existing terms and

conditions. Cebu relies upon the provisions of the Administrative Procedures Act and Part 377

of the Department’s procedural regulations to continue its existing authorization in force pending

a final decision on this renewal request.

1 Notice of Action Taken, Docket DOT-OST-2012-0176, June 5, 2014
Application of Cebu Air, Inc. d/b/a Cebu Pacific Air

Docket DOT-OST-2012-0176

June 1, 2015

2

010-8087-6970/1/AMERICAS

As indicated below, all of the factors that originally led the Department to grant this

exemption to Cebu continue in existence at the present time. In further support of its renewal

request, Cebu states as follows:

1. Cebu began operations in March 1996 utilizing a “low fare, great value” strategy.

Since then, it has grown enormously transporting more than 60 million passengers—more than

any other Philippine carrier. From its hubs in the Philippines, Cebu serves numerous domestic

and international destinations with its modern fleet of Airbus and ATR aircraft—the youngest

fleet in the Philippines and among the youngest in Asia.

2. Cebu is organized and exists under the laws of the Philippines. Cebu is a citizen

of the Philippines and continues to be substantially owned and effectively controlled by citizens

of the Philippines. The Department previously acknowledged Cebu’s Filipino citizenship and

that it is financially and operationally qualified to conduct the services encompassed by this

exemption.2

3. Cebu currently holds exemption authority to engage in scheduled foreign air

transportation of persons, property and mail from the Philippines via intermediate points to

Honolulu, San Francisco, Los Angeles, Guam, Saipan, and four additional points in the United

States selected by the Philippines, and beyond to five countries selected by the Philippines; and

(ii) charters in accordance with the Department’s regulations. Although Cebu has not yet

commenced operations under its exemption, it wishes to renew its exemption so that service may

begin without delay when appropriate.

2 Notice of Action Taken, Docket DOT-OST-2012-0176, November 15, 2012 (“We found that Cebu is financially

and operationally qualified to conduct its proposed services and that it is substantially owned and effectively

controlled by citizens of its claimed homeland. We also note that the applicant is properly licensed by its homeland

to perform the proposed services.”)
Application of Cebu Air, Inc. d/b/a Cebu Pacific Air

Docket DOT-OST-2012-0176

June 1, 2015

3

010-8087-6970/1/AMERICAS

4. Cebu’s operations are authorized and regulated by the Government of the

Philippines. The Philippines is a contracting State to the Convention on International Civil

Aviation (“Chicago Convention”) and observes all applicable ICAO standards. All maintenance

on Cebu’s aircraft is performed in accordance with programs that comply with the provisions of

ICAO Pilots and Airmen Annexes 1, 6 (Part 1) and 7. Cebu maintains liability insurance in

compliance with the requirements of 14 C.F.R. 205.

5. Service between the United States and the Philippines is governed by the Air

Transport Agreement between the two countries signed on October 3, 1980, as amended

(“Agreement”). In accordance with Article 3 of the Agreement, the Philippines may designate

up to three carriers to perform scheduled combination service on Route 2 of Annex I to the

Agreement. By note dated September 10, 2001, Cebu was designated under Article 3 to engage

in the scheduled transportation of passengers, cargo and mail, which is consistent with Annex I,

Section 1(B)(2) authorizing Filipino carriers to operate:

From the Philippines via intermediate points to Honolulu, San Francisco, Los

Angeles, Guam, Saipan, and four additional points in the United States to be

selected by the Government of the Philippines; and beyond to five countries, to be

selected by the Government of the Philippines.

The services for which renewal is requested are therefore fully consistent with the bilateral. The

United States has consistently recognized that the inclusion of a service in a bilateral agreement

to which the United States is a party and the designation of a qualified foreign carrier for such

service satisfy all relevant public interest requirements for grant of exemption authority.3

3

See, S.REP. No. 96-329, at 4 (1979), reprinted in 1980 U.S.C.C.A.N. 54, 57 (“The negotiation of a bilateral

agreement itself represents a determination by the Government of the United States that the grant of route authority

provided for under the bilateral is in the ‘public interest.’”).
Application of Cebu Air, Inc. d/b/a Cebu Pacific Air

Docket DOT-OST-2012-0176

June 1, 2015

4

010-8087-6970/1/AMERICAS

6. This renewal application raises no environmental or energy issues. Similarly,

approval of this renewal application will not result in a near-term increase in fuel consumption of

ten million gallons or more.

WHEREFORE, Cebu Air, Inc. d/b/a Cebu Pacific Air respectfully requests that the

exemption granted to it in the above-captioned docket be renewed for an additional one-year

period on its existing terms and conditions.

Respectfully submitted,

Charles F. Donley II

Squire Patton Boggs (US) LLP

2550 M Street, N.W.

Washington, D.C. 20037

(202) 626-6840 phone

(202) 626-6780 fax

charles.donley@squirepb.com

Counsel to Cebu Air, Inc. d/b/a Cebu Pacific

Air

DATED: June 1, 2015
i

010-8087-6970/1/AMERICAS

CERTIFICATE OF SERVICE

I hereby certify that one copy of the foregoing renewal application of Cebu Air, Inc. d/b/a

Cebu Pacific Air has this day been served on each of the following individuals via e-mail.

Charles F. Donley II

DATED: June 1, 2015

sascha.vanderbellen@delta.com; chris.walker@delta.com

steve.morrissey@united.com; dan.weiss@united.com

perkmann@cooley.com

robert.wirick@aa.com; howard.kass@aa.com