BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON D.C.

__________________________________________

)

Application of )

)

SOUTHWEST AIRLINES CO. )

) Docket No. OST-2015-

for an exemption pursuant to 49 U.S.C § 40109 )

to engage in foreign scheduled air transportation )

of persons, property and mail between Denver, ) 

Colorado and Puerto Vallarta, Mexico )

(DEN – PVR) )

__________________________________________ )

APPLICATION OF SOUTHWEST AIRLINES CO.

Communications with respect to this document should be sent to:

Ron Ricks Robert W. Kneisley

 Executive Vice President & Associate General Counsel

 Chief Legal & Regulatory Officer Leslie C. Abbott

Mark Shaw Senior Attorney

 Vice President General Counsel & SOUTHWEST AIRLINES CO.

 Corporate Secretary 919 18th Street, N.W., Suite 600

Washington, D.C. 20006

 bob.kneisley@wnco.com

(202) 263-6284

April 14, 2015

NOTICE: Any person may file an answer to this application in this docket and 

served on the persons listed above, on or before April 29, 2015. Southwest will 

poll the U.S. carriers on the attached service list and will notify the Department of 

the results as soon as possible.
1

BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON D.C.

__________________________________________

)

Application of )

)

SOUTHWEST AIRLINES CO. )

) Docket No. OST-2015-

for an exemption pursuant to 49 U.S.C § 40109 )

to engage in foreign scheduled air transportation )

of persons, property and mail between Denver, ) 

Colorado and Puerto Vallarta, Mexico )

(DEN – PVR) )

__________________________________________ )

APPLICATION OF SOUTHWEST AIRLINES CO.

Pursuant to 49 U.S.C. § 40109 and Subpart C of the Department’s Rules of

Practice, Southwest Airlines Co. (“Southwest” or “the Company”) hereby applies for an 

exemption from 49 U.S.C. § 41101 authorizing Southwest to engage in scheduled 

foreign air transportation of persons, property, and mail between Denver International 

Airport (“DEN”) and Lic. Gustavo Diaz Ordaz International Airport in Puerto Vallarta, 

Mexico (“PVR”). 

Assuming receipt of all necessary approvals, Southwest proposes to begin 

selling DEN-PVR service on May 14, 2015 for flights commencing on or about

November 2, 2015. Southwest requests that the exemption authority specified in this

application be granted as soon as possible for a period of at least two years.

In support of this application, Southwest states the following:

1. Southwest is a Texas corporation with its principal place of business at 2702 

Love Field Drive, Dallas, Texas, 75235. 
2

2. Southwest is a citizen of the United States as defined by Section 40102(a)(15) of 

Title 49 of the United States Code and Section 204.2(c) of the Department’s Economic 

Regulations. Southwest’s president and at least two-thirds of its board of directors and 

other managing officers are citizens of the United States. Southwest is under the actual 

control of citizens of the United States and more than 75 percent of its voting interest is 

owned or controlled by persons that are citizens of the United States. 

3. Southwest is fit, willing and able to conduct the services described in this 

application. Southwest commenced commercial service in 1971 as an intrastate airline, 

and has operated as a U.S. certificated air carrier since 1979. Southwest requests that 

the Department take official notice pursuant to Rule 24 of the Department’s Rules of 

Practice (14 CFR § 302.24) of Southwest's Certificate of Public Convenience and 

Necessity for Interstate Air Transportation, originally issued by Order 79-6-187, and 

subsequently amended by Order 86-5-60 (May 15, 1986), Order 98-7-6 (July 8, 1998), 

and Order 2005-12-4 (December 9, 2005). Southwest has consistently maintained its 

certificate in good standing for the past 36 years.

4. Furthermore, Southwest already holds exemption authorities from the 

Department authorizing service in numerous U.S. – Mexico markets, including BWICUN, AUS-CUN, AUS-SJD, DEN-CUN, MKE-CUN, MDW-CUN, SAT-MEX, SAT-CUN, 

SNA-MEX, and SNA-SJD,

1 as well as countries in the Caribbean, including Aruba, the 

Bahamas, Jamaica, and the Dominican Republic.2 Pursuant to Rule 24, Southwest

asks the Department to take official notice of all data on file necessary to establish 

Southwest’s fitness.

 1 See Notice of Action Taken issued October 23, 2013 in Docket DOT-OST-2013-0180. 2 See Notice of Action Taken issued October 23, 2013 in Docket DOT-OST-2013-0181.
3

5. Southwest proposes to commence service between DEN and PVR on or about 

November 2, 2015 with daily service using Stage III Boeing 737-700 aircraft configured 

for 143 seats. 

6. The requested exemption authority is fully consistent with the terms of the U.S.-

Mexico Air Transport Agreement (Agreement) as amended by the two governments on 

December 12, 2005. The Agreement authorizes carriers designated by the U.S. to 

operate “[f]rom a point or points in the United States to a point or points in Mexico.” 

Annex I(A)(1)(a). Pursuant to the amended Agreement, three U.S. carrier designations 

are authorized on the DEN – PVR route. Annex I(B)(5). The only carriers currently 

holding designations on this route are United Airlines, Inc. and Frontier Airlines.

Therefore one U.S. carrier designation is available. 

7. Southwest is the largest U.S. airline based on domestic passengers and carries 

the highest number of local Denver passengers of any airline.

3

 Southwest offers 185 

daily flights to 58 cities from DEN including two cities in Mexico: San Jose del Cabo 

(“SJD”) and Cancun (“CUN”). Southwest’s proposed new international service at DEN 

will provide consumers with another flight option and important low-fare competition on 

this route, particularly because it appears that Frontier is ceasing its DEN-PVR service 

at the end of this month.4 Southwest’s daily, low-fare, large-jet service in this market is 

clearly is in the public interest.

8. The environmental impact of Southwest’s proposed service is de minimis, and 

will therefore not lead to a near-term annual increase in aircraft fuel consumption of 10 

million gallons or more. Accordingly, grant of this application will not constitute a “major 

 3 U.S. DOT, O&D Survey, YE Q3 2014, via Diio.

4 Based on Innovata Schedule Data, April 9, 2015.
4

regulatory action” within the meaning of the Energy Policy and Conservation Act of 1975 

or Part 313 of the Department’s Economic Regulations.

9. Southwest will accept and comply with the terms and conditions that the 

Department routinely imposes on exemption authority for scheduled foreign air 

transportation. 

WHEREFORE, Southwest requests that the Department act expeditiously in 

granting the requested exemption authority to enable Southwest to engage in scheduled 

foreign air transportation of persons, property and mail between Denver, Colorado and 

Puerto Vallarta, Mexico as described above. 

Respectfully submitted,

______________________

Robert W. Kneisley

April 14, 2015
5

CERTIFICATE OF SERVICE

I hereby certify that on April 14, 2015, a copy of the foregoing was served via email on the following persons:

dheffernan@cozen.com (Alaska Airlines)

jeremey.ross@alaskaair.com (Alaska Airlines)

howard.kass@aa.com (American Airlines)

robert.wirick@aa.com (American Airlines)

sascha.vanderbellen@delta.com (Delta Air Lines)

chris.walker@delta.com (Delta Air Lines)

matwood@cozen.com (Frontier Airlines)

stephen.lachter@cozen.com (Frontier Airlines)

robert.land@jetblue.com (JetBlue Airways)

jhill@cooley.com (JetBlue Airways)

perkmann@cooley.com (JetBlue Airways)

robert.cohn@hoganlovells.com (Republic Airways)

patrick.rizzi@hoganlovells.com (Republic Airways)

dkirstein@yklaw.com (Spirit Airlines)

jyoung@yklaw.com (Spirit Airlines)

thomas.ting@suncountry.com (Sun Country Airlines)

dan.weiss@united.com (United Airlines)

thomas.bolling@united.com (United Airlines)

gmurphy@crowell.com (United Airlines)

sseiden@crowell.com (United Airlines)

john.varley@virginamerica.com (Virgin America) 

susan.kurland@dot.gov

brian.hedberg@dot.gov

reese.davidson@dot.gov

brett.kruger@dot.gov

robert.finamore@dot.gov

todd.homan@dot.gov

peter.irvine@dot.gov

cristinasa@state.gov

info@airlineinfo.com

__________________________

Leslie C. Abbott