361605/1/WASHINGTON

BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

)

In the matter of the application of )

)

CONCESIONARIA VUELA COMPAÑÍA DE AVIACIÓN, ) Docket DOT-OST-2014-0137

S.A.P.I. DE C.V. d/b/a VOLARIS )

)

for an exemption from 49 U.S.C. §41301 )

)

REPLY OF

CONCESIONARIA VUELA COMPAÑÍA DE AVIACIÓN,

S.A.P.I. DE C.V. D/B/A VOLARIS

Communications with respect to this

document should be addressed to:

Charles F. Donley II

Edward W. Sauer

Squire Patton Boggs (US) LLP

1200 19th Street, N.W.

Washington, D.C. 20036

(202) 626-6840

charles.donley@squirepb.com

Counsel to Concesionaria Vuela Compañía de

Aviación, S.A.P.I. de C.V. d/b/a Volaris

DATED: August 26, 2014
361605/1/WASHINGTON

BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

)

In the matter of the application of )

)

CONCESIONARIA VUELA COMPAÑÍA DE AVIACIÓN, ) Docket DOT-OST-2014-0137

S.A.P.I. DE C.V. d/b/a VOLARIS )

)

for an exemption from 49 U.S.C. §41301 )

)

REPLY OF

CONCESIONARIA VUELA COMPAÑÍA DE AVIACIÓN,

S.A.P.I. DE C.V. D/B/A VOLARIS

Concesionaria Vuela Compañía de Aviación, S.A.P.I. de C.V. d/b/a Volaris

(“Volaris”) hereby replies to the Answer of American Airlines, Inc. (“American”)1

opposing approval of Volaris’ application for an exemption to serve

Guadalajara/Cancun/Mexico City-Ft. Lauderdale. American’s Answer inaccurately

summarizes the record in this proceeding and provides no basis on which to deny Volaris’

application, which is clearly within the scope of the U.S.-Mexico bilateral agreement.

Volaris urges the Department of Transportation (“Department”) to deny American’s

objection and promptly approve Volaris’ application.

American argues incorrectly that Volaris committed a “paperwork oversight”

which provides a basis for the Department to deny Volaris’ application. This argument is

factually wrong. As detailed below, all necessary documentation has been received by

the Department and the application is ready for decision. American further offers a
Reply of Concesionaria Vuela Compañía de Aviación,

S.A.P.I. de C.V. d/b/a Volaris

Docket DOT-OST-2014-0137

August 26, 2014

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361605/1/WASHINGTON

number of criticisms of the current U.S.-Mexico bilateral agreement, one of which is

identical to an objection filed previously by American (and denied by the Department) in

opposing an earlier Volaris application. Although Volaris believes that the existing

bilateral should be revised to gradually permit open Third and Fourth Freedom services

between the United States and Mexico, Volaris also believes this is an issue for

discussion between the United States and Mexican Governments—not one to be decided

by the Department in an exemption proceeding.

1. Volaris filed its application on July 31, 2014. That application requested

authority to provide services between Guadalajara, Cancun and Mexico City Mexico as

coterminal points and the U.S. terminal point Ft. Lauderdale. The application noted that

these routes are provided for in the U.S.-Mexico bilateral and reviewed Volaris’ wellestablished qualifications to provide service in the U.S.-Mexico markets. Those

qualifications have been recognized by the Department in the numerous previous

exemptions it has granted to Volaris.

American’s statement that Volaris has not been fully designated for the route

authorities it seeks is incorrect. Volaris’ designation for the Mexico City-Ft. Lauderdale

route was issued by the Mexican Government on September 23, 2011, and received

shortly thereafter by the Department. Volaris’ designations for Cancun-Ft. Lauderdale

and Guadalajara-Ft. Lauderdale were received by the Department on August 11, 2014.

1 Answer of American Airlines, Inc. in Opposition to an Application for an Exemption, August 13, 2014
Reply of Concesionaria Vuela Compañía de Aviación,

S.A.P.I. de C.V. d/b/a Volaris

Docket DOT-OST-2014-0137

August 26, 2014

- 3 -

361605/1/WASHINGTON

Thus, there is no documentation issue that could possibly justify delay or withholding of

the authority that Volaris has requested.

Moreover there is no dispute between the United States and Mexico that might

justify such action. This is a bilateral route for which Volaris has been designated and for

which it is qualified under the bilateral. Volaris respectfully requests that its exemption

be granted without further delay.2

2. The remainder of American's opposition is a criticism of various provisions of

the current U.S.-Mexico bilateral. Volaris has stated publicly that the bilateral should be

revised to gradually allow open Third and Fourth Freedom flights between the United

States and Mexico. Volaris believes that such a broadening of the agreement will provide

increased opportunities for service that will benefit the traveling public. These matters

are, of course, a proper subject of the discussions between the governments of the United

States and Mexico, which are currently in process and which to the best of Volaris’

knowledge will resume in September 2014. They are not matters to be resolved in a DOT

licensing proceeding. In fact, it is difficult to see how withholding bilaterally-mandated

2

In fact, the Department previously approved (and renewed) exemption authority for Volaris to operate the

Mexico City-Ft. Lauderdale route on the basis of its existing designation. Volaris held exemption authority

for Mexico City-Ft. Lauderdale for two years, and allowed that exemption to expire early in 2014 because it

had no firm plan at that time to operate the route. Volaris now intends to begin Mexico City-Ft. Lauderdale

service, and it seeks reinstatement of this authority. See Docket DOT-OST-2012-0018 (granting and

renewing an exemption to serve Mexico City-Ft. Lauderdale). American offers no reason why the outcome

today should be any different than the outcomes in 2012 and 2013 when the exemption was granted and

renewed.
Reply of Concesionaria Vuela Compañía de Aviación,

S.A.P.I. de C.V. d/b/a Volaris

Docket DOT-OST-2014-0137

August 26, 2014

- 4 -

361605/1/WASHINGTON

route authority from a properly designated Mexican carrier shortly before discussions

resume would assist in the negotiation of a more liberal bilateral environment.3

WHEREFORE, Concesionaria Vuela Compañía de Aviación, S.A.P.I. de C.V.

d/b/a Volaris respectfully requests that the Department of Transportation deny the

objection of American Airlines, Inc. and that it promptly approve Volaris’ application to

provide scheduled combination service in foreign air transportation, as more fully

described herein.

Respectfully submitted,

/s/ Charles F. Donley II

_________________________

Charles F. Donley II

Edward W. Sauer

Squire Patton Boggs (US) LLP

1200 19th Street, N.W.

Washington, D.C. 20036

(202) 626-6840

charles.donley@squirepb.com

Counsel to Concesionaria Vuela Compañía de

Aviación, S.A.P.I. de C.V. d/b/a Volaris

DATED: August 26, 2014

3 Volaris notes American also raises the example of JFK-MEX and cites its inability to enter that market as

a reason why the Department should deny Volaris’ application. Volaris notes that American raised the JFKMEX route issue in its 2011 opposition to another Volaris exemption application and that the Department

denied American’s objection and approved Volaris’ application. Notice of Action Taken, July 11, 2011,

Docket DOT-OST-2011-0117 (“We have taken note of the comments on Volaris’ request made by

American in connection with its own application in Docket DOT-OST-2011-0123. We did not find in

American’s comments a persuasive basis to withhold favorable action on the Volaris’ application.”)
361605/1/WASHINGTON

CERTIFICATE OF SERVICE

I hereby certify that the foregoing Reply has this day been served on all

persons listed on the attached service list via e-mail.

/s/ Charles F. Donley II

_______________________

Charles F. Donley II

DATED: August 26, 2014

sascha.vanderbellen@delta.com; chris.walker@delta.com

steve.morrissey@united.com; dan.weiss@united.com;

patrick.rizzi@hoganlovells.com

msinick@ssd.com

bob.kneisley@wnco.com

jhill@cooley.com

dkirstein@yklaw.com

robert.wirick@aa.com; howard.kass@aa.com

pmurphy@lopmurphy.com; pmurphy@ggh-airlaw.com

barbara.russell@virginamerica.com

AGoerlich@ggh-airlaw.com

matwood@cozen.com

rbtrinder@zsrlaw.com; jasilversmith@zsrlaw.com