1 BEFORE THE

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

___________________________________________ _____ )

Application of )

)

SOUTHWEST AIRLINES CO. )

) Docket DOT

- OST

- 2014

- 0222

For an exemption under 49 U.S.C. § 40109 to engage in )

fore ign scheduled air transportation of persons, property )

and mail between Houston Hobby International Airport )

and Cancun, Mexico City

, Puerto Vallarta, and )

San Jose del Cabo, Mexico )

)

_________________________________ _______________

REPLY OF THE

SOUTHWEST AIRLINES PILOTS’ ASSO C I ATION

Communications with respect to this document should be addressed to:

Paul Jackson

President

Southwest Airlines Pilots ’ Association

1450 Empire Central

Dallas, TX 75247 (800) 969

- 7972

pjackson@swapa.org

January 8, 20152 I. INTRODUCTION

The Southwest Airlines Pilots’ Association (“SWAPA”) is the exclusive bargaining

representative for almost 8,000 Southwest Airlines pilots. The Southwest Airlines Pilots’

Association files this Reply in response to the Answer of United and SkyWest Airlines filed on

December 29, 2014 (“United Answer”) in this proceeding.

In its response United fails to address the public benefits that Southwest w ill produce

and instead focuses on ways to delay Southwest’s entry in the two routes, HOU

- MEX and HOU

SJD . United also fails to address the implications of the fact that they will still retain market

access even if the Department withdraws SkyWest’s autho rity.

I I

. IF SOUTHWEST GAINS ACCESS UNITED WILL STILL RETAIN ROUTE AUTHORITY MAKING A

CARRIER SELECTION PROCEEDING SUPERFLUOUS

In United’s response, United fails to note that, if Southwest is granted access, United

will still retain access to the market w ith complete flexibility to fly as many daily flights with

mainline aircraft that it would like. In fact , United could actually expand service with their sole

designator if th ey choose to. United may actually benefit from using mainline aircraft under the

existing designation. Awarding Southwest access on the two routes in question will provide

enhanced public benefit s and will not reduce competition. Contrary to United’s argument that

they offer better connectivity and frequency, Southwest service will offer travelers an

affordable opportunity to connect to the nation’s largest domestic network and the flexibility of

two airport ch oices in Houston. Additionally, the public will benefit from reduced fares via the

“Southwest Effect,” an effect already realized in the Mexican markets Southwest currently3

serves. As no carrier brand is losing access to the market, and United could actu ally expand

service with a single designation, carrier selection proceeding is unjustified

.

I II

. AN EXTRA

- BILATERAL APPROACH SHOULD NOT BE TAKEN TO GAIN ACCESS FOR A NEW

ENTRANT AS LONG AS APPROACHES WITH MORE CERTAIN OUTCOMES EXIST

United urged DOT to engage in an extra

- bilateral approach to grant Southwest access to

the routes in question. SWAPA believes that an extra

- bilateral approach is unlikely to produce

a desired outcome until such time that it becomes clear that the recently negotiated agreemen t

will be approved by the Mexican senate. In fact w ith the Mexican government working to

implement the current agreement by January 2016, a req uest for an extra bilateral authority

would only be a distraction and could potentially delay implementation of the full agreement. If

an extra

- bilateral approach is taken by the DOT it should be done to facilitate a second

authority for United and NOT for a new entrant like Southwest. In th is case, if the extra

bilateral approach failed, United would still have market access whereas if extra

- bilateral access

was pursued for Southwest, and that approach failed Southwest would not.

I V

. UNITED SHOULD SEEK TO HAVE THE DEPARTMENT CLARIFY THE DEF INTION OF CARRIER IN

THE CONTEXT OF THE MEXICO AIR TRANSPORT AGREEMENT

SWAPA urges the Department to examine the possibility to clarify the definition of

carrier in the context of the bilateral agreement. The current interpretation of the definition of

c arrier does not take into account the current market place realities, especially from the

standpoint of the consumer. If the definition of carrier was clarified to mean carrier brand

proceedings such as this could be avoided and public benefits would be e nhanced as a result of

increased flexibility. With this clarification, SkyWest’s United Express service could be4

operated under the United designation. Since together the carriers are offering one service

options for consumers, this approach is fully ju stified.

V

. CONCLUSION

For the reasons stated above, SWAPA fully supports the Southwest application and

urges the Department to reject United’s attempts to delay Southwest’s entry. Specifically we

urge the Department to :

 Withdraw one of the two authorities held by United and its partner carriers for

service on the Houston

– MEX and Houston

– SJD segments

 Q uickly grant S outhwest exemption authority and requisite designations to

engage in scheduled foreign air transportation betw een Houston

– MEX a nd

Houston

– SJD

.

Respectfully submitted,

_________________________________ Paul JacksonCERTIFICATE OF SERVI CE

I hereby certify that on January 8, 2015, a copy of the foregoing was served via e

- mail on

the following persons:

msinick@ssd.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 (j etBlue Airways)

jhill@cooley.com (j etBlue Airways)

perkmann@cooley.com (j etBlue Airways)

robert.cohn@hoganlovells.com (Republic Airways)

patrick.rizzi@hoganlovells.com (Republic Airways)

dkirstein@yklaw.com (Spirit Airlines)

jyoung@yklaw.com (Spirit Airlines)

bob.kneisley@wnco.com (Southwest Airlines)

leslie.abbott@wnco.com (Sout hwest Airlines)

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

dan.weiss@united.com (United Airlines)

steve.morrissey@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

brett.kruger@dot.gov

reese.davidson@dot.gov

todd.homan@dot.gov

peter.irvine@dot.gov

cristinasa@state.gov

info@airlineinfo.com

/ John Pepper /

__________________________