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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)

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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
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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 coach
Joint Motion of Chautauqua Airlines and Republic Airline

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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-
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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

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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).
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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

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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.
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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