BEFORE THE DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

------------------------------------------------------------------------ Joint Application of : : UNITED AIRLINES, INC. and : Docket DOT

- OST

- 2014

-

___ _ SKYWEST AIR LINES, INC. : and : Docket DOT

- OST

- 2014

-

___ _ for exemptions pursuant to 49 U.S.C. § 40109 and : designations ( Los Angeles

- Durango, Mexico ) :

------------------------------------------------------------------------ JOINT APPLICATION OF UNITED AIRLINES, INC. AND SKYWEST AIRLINES, INC. FOR EXEMPTIONS AND DESIGNATIONS Communications with respect to this document should be sent to:
Hershel I. Kamen Senior Vice President

- Alliances, Regulatory and Policy Daniel A. Weiss Managing Director

- International Affairs and Regulatory UNITED AIRLINES, INC. 233 South Wacker Drive 10th Floor

– HDQIZ Chicago, IL 60606 (872) 825

- 6828 hershel.kamen@united.com dan.weiss@united.com Thomas Newton Bolling Vice President and Deputy General Counsel UNITED AIRLINES, INC. 233 South Wacker Drive 11th Floor

– HDQLD Chicago, IL 60606 (872) 825

- 8068 thomas.bolling@united.com Douglas P. Kelley Senior Counsel

- Regulatory, Antitrust & Competition UNITED AIRLINES, INC. 1600 Smith Street HQSLG

- 15 Houston, TX 77002 (713) 324

- 5156 doug.kelley@united.com

February 1 2 , 2014 Steve Morrissey Managing Director

- Regulatory Affairs and Policy Karine R. Faden Managing Counsel

- Regulatory, Antitrust & Competition UNITED AIRLINES, INC. 1225 New York Avenue, NW Suite 1100

– DCAIZ/DCALD Washington, DC 20005 (202) 521

- 4373 (202) 521

- 4363 steve.morrissey@united.com karine.faden@united.com
Todd Emerson General Counsel SKYWEST AIRLINES, INC. 444 South River Road St. George, UT 84790 (435) 634

- 3530 tem erson@skywest.com Gerald F. Murphy Steven J. Seiden CROWELL & MORING LLP 1001 Pennsylvania Avenue, NW Washington, DC 20004 (202) 624

- 2500 gmurphy@crowell.com sseiden@crowell.com
Counsel for United Airlines, Inc. and SkyWest Airlines, Inc.

NOTICE : The Joint Applicants have request ed expedited treatment of this application. They will poll

U.S. carrier representatives and inform the Department of the results.BEFORE THE DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

------------------------------------------------------------------------ Joint Application of : : UNITED AIRLINES, INC. and : Docket DOT

- OST

- 2014

-

____ SKYWEST AIRLINES, INC. : and : Docket DOT

- OST

- 2014

-

____ for exemptions pursuant to 49 U.S.C. § 40109 and : designations (Los Angeles

- Durango, Mexico) :

-- ------------------------------------------------------------ ---------- JOINT APPLICATION OF UNITED AIRLINES, INC. AND SKYWEST AIRLINES, INC. FOR EXEMPTIONS AND DESIGNATIONS
United 1 and SkyWest (d/b/a United Express) (the “Joint Applicants”) apply , pursuant to 49 U.S.C. § 40109 and Subpart C of the Department's Rules of Practice , for exemption s from 49 U.S.C. § 41101 authorizing them to provid e scheduled foreign air transportation of persons, property and mail between Los Angeles and Durango, Mexico b eginning in June 201 4

. In addition, the Joint Applicants request a U.S.

- Mexico operating carrier designation for SkyWest

on this route and a marketing carrier designation for United to permit United to display its
“UA * ” designator code on SkyWest’s flights. The Joint Applicants ask that the requested
authorities become effective as soon as possible 2 and that the authorit ies be effective for a period of at least two years, subject to the Department’s standard conditions

. The Joint Applicants also ask the Department to issue the necessary notices to Mexican authorities confirming the carriers’ authority to serve the Los Angeles

- Durango route

. The Joint Applicants state as follows in support of this application :

1 Common names are used for airlines. 2 The Joint Applicants will conduct a poll of all carrier representatives listed on the service list and advise the Department of the results.Joint Application of United and SkyWest

Page 2

1. Awarding the requested exemption authorities will permit the Joint Applicants to
meet increasing demand for Los Angeles

- Durango service by using SkyWest’ s CRJ

- 200 or CRJ

7 00 aircraft

. The Joint Applicants urge the Department to act promptly on this application so that they can secure foreign authority, make final operating plans and begin marketing the Los Angeles

- Durango flights well in advance of operations, which they plan to commence in June
2014 , prov ided all necessary approvals have been secured.
2. SkyWest will operate these Los Angeles

- Durango flights pursuant to a capacity purchase agreement with United. ExpressJet currently operates United Express service on this

route using small aircraft. 3 SkyW est will be substituted for ExpressJet upon the Joint Applicants’ receipt of all necessary approvals. To ensure that United Express service on this route is not disrupted, ExpressJet will retain its designation until the Department has taken action on the Joint Application, the Joint Applicants have begun providing the service requested herein, and ExpressJet has given notice to the Department that its designation is no longer required

. 3. The Joint Applicants’ service on t he Los Angeles

- Durango route will continue to provide substantial consumer benefits by enhancing the service options available to the U.S. traveling public , including the online connections between points on United’s network served via
its Los Angeles hub

. The Joint Applicants will comply with the Department’s rules on codesharing as set forth in Part 257 of the Department’s Regulations.
4. The authority sought by the Joint Applicants complies fully with the terms of the
U.S.

- Mexico Air Transport Services Agreement (“U.S.

- Mexico Agreement”), as amended

. Route 1(a ) of the U.S.

- Mexico Agreement authorizes carriers designated by the United States to operate from “a point or point s in the United States to a point or points in Mexico.” U.S.

- Mexico

3 See Department Action dated Oct

. 5, 2011

.Joint Application of United and SkyWest

Page 3
Agreement, A nnex I, A(1)(a). Further, the U.S.

- Mexico Agreement permits the United States to designate two airlines to provide scheduled combination services between any point or points in
the United States and Durango ( see U.S.

- Mexico Agreement, Annex I, B(4) ) and p ermits such designated airlines to enter into cooperativ e marketing arrangements with other airline s provided they both hold appropriate authority and meet the requirements applied to such arrangements.
See id

. , Annex III (1) . Lastly, the United States is authorized to allocate up to 10 code share designations for each non stop city pair segment. See id. , Annex III (3)

. Sufficient designations are available for SkyWest to operate on the Los Angeles

- Durango route and for United to codeshare on the SkyWest

- op erated services. Inasmuch as SkyWest’s United Express services will replace those being offered currently by ExpressJet, no additional designations will be required

. 5. The Joint Applicants hold various certificates of public convenience and necessity
and exemptions authorizing them to engage in scheduled air transportation of persons, property and mail between the U.S. and foreign countries, and the Joint Applicants are fit, willing and able to provide the service for which they seek authority

. See , e.g. , United: Order 2013

- 4

- 11 (reissuing United/Continental authorities to United), Order 2010

- 5

- 17 (U.S.

- Mexico), and Notice
of Action Taken dated February 6, 2013 in Docket DOT

- OST

- 2013

- 0019 (Austin

- San Jose del
Cabo , Mexico ); and SkyWest : Order 2011

- 12

- 11 at 4 (continuing fitness review) , Order 2008

- 4

- 26 (Blanket Open Skies) , and Notice of Action Taken dated February 7, 2014 in Docket DOT

OST

- 2014

- 0016 ( Washington, D.C.

- Nassau, Bahamas)

. Pursuant to Rule 24 of the Department’s Rules of Practice, the Joint Ap plicants request that the Department take official notice of all
information and data that have been filed to establish their fitness.