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, 2014361605/1/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 aReply 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

- 2 - 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 thatthese 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, 2014Reply 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 asa 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