\\DC - 040601/000003 - 3479511 v2 BEFORE THE DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.
Application of CHAUTAUQUA AIRLINES, INC. for an exemption from 14 CFR Part 93 under 49 U.S.C. § 41714(d) ) ) ) ) ) ) ) ) Docket DOT-OST-2003-15989

JOINT MOTION OF CHAUTAUQUA AIRLINES, INC. AND REPUBLIC AIRLINE INC.

TO AMEND AND REISSUE SLOT SLIDE EXEMPTION

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 Chautauqua Airlines, Inc. and Republic Airline Inc.
August 24, 2012\\DC - 040601/000003 - 3479511 v2 BEFORE THE DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.
Application of CHAUTAUQUA AIRLINES, INC. for an exemption from 14 CFR Part 93 under 49 U.S.C. § 41714(d) ) ) ) ) ) ) ) ) Docket DOT-OST-2003-15989
August 24, 2012

JOINT MOTION OF CHAUTAUQUA AIRLINES, INC. AND REPUBLIC AIRLINE INC.

TO AMEND AND REISSUE SLOT SLIDE EXEMPTION Chautauqua Airlines, Inc. (“Chautauqua”) and its corporate affiliate, Republic Airline Inc. (“Republic”), jointly request the Department to amend and reissue the “slot slide” exemption granted to Chautauqua in DOT Order 2003-9-30 to authorize Republic, in addition to Chautauqua, to operate four DCA commuter slots (Slots 0114, 0098, 0082 and 0063) in their currently approved time periods. As explained below, the requested amendment meets the statutory requirements in 49 U.S.C. § 41714(d), including the “exceptional circumstances” standard, and is fully consistent with the public interest. Republic and Chautauqua are considered to be a “single operator” under the FAA’s DCA High Density Rule (“HDR”) as they are both wholly owned subsidiaries of Republic Airways Holdings Inc. Authorizing Republic to be the primary operator of the slots, and allowing the carriers the flexibility for Chautauqua to operate the slots on certain flights, would allow the slot exemptions to be more productively and efficiently utilized to maximize public benefits. It would benefit consumers and enhance service between DCA and Columbus, Ohio and Indianapolis, Indiana by enabling the carriers to up-gauge service to Columbus and Indianapolis to larger aircraft, with a first-class and coachJoint Motion of Chautauqua Airlines and Republic Airline Page 2

\\DC - 040601/000003 - 3479511 v2 configuration, and thereby expand capacity and enhance service quality on the routes. Under the HDR, commuter slots can be operated with aircraft having up to 76 seats. 14 C.F.R. § 93.123(c)(2). If the slot exemption is amended, Republic would upgrade service between DCA and Columbus and Indianapolis by using larger ERJ-170 aircraft, which has a maximum certificated passenger seating capacity of 76 seats and meets the HDR definition of a commuter operation. Republic’s ERJ-170 is configured with 69 seats in two classes (9 first-class seats and 60 economy class seats). Thus, the grant of this request would enable Republic to increase seating capacity, compared to Chautauqua’s single-class 50-seat ERJ-145 aircraft, by 38% and to offer over 27,700 additional annual seats on these two DCA routes, without increasing the number of flights. Since DCA is slot constrained, an increase in capacity without a corresponding increase in the number of flight operations would substantially benefit the traveling public. In further support of this Joint Motion, Chautauqua and Republic state: 1. By DOT Order 2003-9-30, the Department granted an exemption to Chautauqua authorizing the carrier to slide (i) three 2100 hour permanent DCA commuter slots to 1000 (#0114), 1300 (#0098), and 1600 (#0082), for service between DCA and Columbus, Ohio, and (ii) one 2100 hour permanent DCA commuter slot to 1700 (#0063) for service between DCA and Indianapolis, Indiana. Since the exemptions were issued, Chautauqua has continuously operated nonstop DCA service to the substantial benefit of these communities in Ohio and Indiana. 2. Chautauqua operates single-class configuration 50-seat regional jets on these DCA routes. Republic, Chautauqua’s sister carrier, has larger dual-class 69-Joint Motion of Chautauqua Airlines and Republic Airline Page 3

\\DC - 040601/000003 - 3479511 v2 seat ERJ-170 aircraft available, which it would use for service between DCA and Columbus and Indianapolis. 3. The exemption granted by DOT Order 2003-9-30, requires that the slots be operated only by Chautauqua. Chautauqua and Republic request that the Department amend and reissue the slot slide exemptions to authorize either Republic or Chautauqua to operate these slot exemptions. Under the FAA’s High Density Rule, Chautauqua and Republic are considered to be “a single operator.” See, 14 C.F.R § 93.213 (c): “[I]f a single company has more than a 50-percent ownership or control of two or more air carriers and/or commuter operators or any combination thereof, those air carriers and/or commuter operators shall be considered to be a single operator. A single operator may be considered to be both an air carrier and commuter operator for purposes of this subpart.” Chautauqua and Republic are affiliated carriers. Both are commonly owned by Republic Airways Holdings Inc. And, both are limited incumbents at DCA, holding very few DCA slots and slot exemptions. 4. Republic would be the primary provider of service on these two DCA routes using its larger ERJ-170 aircraft. However, the carriers would like the flexibility to enable Chautauqua to provide service with its smaller 50-seat aircraft as market demand warrants, for example, on certain off-peak weekend flights. 5. The requested amendment satisfies each of 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

.Joint Motion of Chautauqua Airlines and Republic Airline Page 4

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 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. 6. The Joint Motion merely seeks an amendment to the slot slide exemption at issue so that Chautauqua’s sister carrier, Republic, can operate these slot slide exemptions with Republic’s larger aircraft in lieu of Chautauqua’s smaller aircraft. 7. Approval of this request would be fully consistent with the public interest and the Statute’s “exceptional circumstances” standard. 8. With respect to exceptional circumstances, in Order 2003-9-30, the Department determined that the initial grant of the slot exemptions to Chautauqua would meet the exceptional circumstances criterion because of its limited slot holdings. See, DOT Order 2003-9-30 at page 6 (“Precisely because the flexibility of these limited slot holders is so constrained, their circumstances are exceptional....In the case[] of ... Chautauqua, the applicant[] [has] argued that grant of [its] request would help [it] better meet demand in [its] ... markets, a factor that the Department found was contemplated by the exceptional circumstances criterion previously,” citing DOT Orders 2000-2-33 and 2000-7-20).Joint Motion of Chautauqua Airlines and Republic Airline Page 5

\\DC - 040601/000003 - 3479511 v2 9. In addition to having few DCA slots, the request meets the “exceptional circumstances” criterion and is in the public interest because it will enable the carriers to “better meet demand” by offering larger capacity aircraft on these routes for the people and businesses of the Columbus, Indianapolis, and Washington, D.C. metropolitan areas. By allowing Republic to up-gauge to larger 69-seat ERJ-170 aircraft on each of these four segments, in place of Chautauqua’s 50-seat ERJ-145, the travelling public would gain 76 additional daily seats and a total of over 27,700 additional annual seats on the four flights. This allows for the more productive and efficient use of the 4 commuter slots and translates into a substantial consumer benefit. The flexibility to up-gauge this service and significantly increase available seating capacity passenger seats is clearly consistent with the public interest, particularly given that it would enable the Republic carriers to better meet the demand and the needs of the destination communities who have long relied on nonstop regional jet service to DCA. In addition to increasing the number of available seats, Republic would enhance the quality of service to the two communities by offering first-class and coach service (with 9 first-class seats and 60 economy class seats), an improvement over the single-class service available on Chautauqua’s smaller regional jet.Joint Motion of Chautauqua Airlines and Republic Airline Page 6

\\DC - 040601/000003 - 3479511 v2 CONCLUSION. This Joint Motion fully satisfies the statutory criteria and the “exceptional circumstances” standard, and is in the public interest. Accordingly, the Joint Movants urge the Department to expeditiously grant this Joint Motion to amend and reissue the slot slide exemption authority to authorize Republic or Chautauqua to operate these slot exemptions.

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 Chautauqua Airlines, Inc. and Republic Airline Inc.\\DC - 040601/000003 - 3479511 v2 CERTIFICATE OF SERVICE I hereby certify that a copy of the foregoing Joint Motion of Chautauqua Airlines, Inc. and Republic Airline Inc. to Amend and Reissue Slot Slide Exemption has been served this 24th day of August, 2012, upon each of the following addressees:
bob.kneisley@wnco.com; marshall.sinick@squiresanders.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; steve.morrissey@united.com; jonathan.linde@united.com; howard_kass@usairways.com; barbara.russell@virginamerica.com; brian.ctr.meehan@faa.gov

Jonathan Echmalian