BEFORE THE
DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

) Application of ) ) HORIZON AIR INDUSTRIES, INC. ) Docket DOT-OST-2008-0172 ) for an exemption pursuant to 49 U.S.C. 40109 ) )

APPLICATION FOR RENE WAL OF EXEMPTION

Communications with respect to this document should be addressed to:

Marshall S. Sinick, Esq. Squire, Sanders & Dempsey L.L.P. 1201 Pennsylvania Avenue, N.W. Washington, D.C. 20004 (202) 626-6651
msinick@ssd.com

Counsel to Horizon Air Industries, Inc.

DATED: March 26, 2010BEFORE THE
DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

) Application of ) ) HORIZON AIR INDUSTRIES, INC. ) Docket DOT-OST-2008-0172 ) for an exemption pursuant to 49 U.S.C. 40109 ) )

APPLICATION FOR RENE WAL OF EXEMPTION

Horizon Air Industries, Inc. (“Horizon”) hereby requests renewal of the exemption authority

granted to it by the Department of Transportation (t he “Department”) in the above-captioned docket

to perform scheduled foreign air transportation of persons, property and mail between Los Angeles,

California, and La Paz, Mexico. This exempti on authority expires on June 9, 2010. Horizon

requests renewal of this authority for a two-year period on its existing terms and conditions.

Horizon relies on the provisi ons of the Administrative Proc edure Act and Part 377 of the

Department’s procedural regulations to continue it s existing authorization in force pending a final

decision on this renewal request.

In further support of its request fo r renewal, Horizon states as follows:

1. Horizon has its principal headquarters located at 19521 International Blvd.,

Seattle, Washington. Horizon is incorporated unde r the laws of the State of Washington and is a

wholly-owned subsidiary of Alaska Air Group, Inc. (“AAG”). AAG is incorporated under the

laws of the State of Delaware.Application for Renewal of Exemption
Docket DOT-OST-2008-0172 March 26, 2010

2 2. Horizon is a citizen of the United Stat es within the meaning of 49 U.S.C.

40102(a)(15). The president and at least two-th irds of Horizon directors and other managing

officers are U.S. citizens. Additionally, to Horizon’s knowledge, U.S. citizens hold at least

seventy-five percent of AAG’s voting stock.

3. Horizon has repeatedly been found fit, w illing and able to provide interstate and

foreign air transportation. The Department is re quested to take official notice of Horizon’s

continuing fitness. See, e.g. , Orders 84-7-79 and 96-9-17.

4. Horizon currently operate s roundtrip scheduled flight s on the Los Angeles-La Paz

route using Bombardier CRJ -700 or Q400 aircraft. Horizon disp lays Alaska Airlines’ two-letter

designator code on these f lights. The Department has found prev iously that Horizon’s service in

the Los Angeles-La Paz market is consistent with the terms of the U.S.-Mexico bilateral

agreement. 1

5. This renewal application does not rais e any environmental or energy concerns.

All flights will continue to be performed with aircra ft that meet all applicab le noise requi rements.

Similarly, approval of this appli cation will not result in a near-term increase in fuel consumption of

ten million gallons or more.

1 See, Notice of Action Taken, Docket DOT-OST-2008-0172, June 9, 2008Application for Renewal of Exemption
Docket DOT-OST-2008-0172 March 26, 2010

3 WHEREFORE , Horizon Air Industries, Inc. respec tfully requests that the exemption

granted to it in the above-captioned docket be re newed for an additional two-year period on its

existing terms and conditions, as more fully described herein.

Respectfully submitted,

________________________________ Marshall S. Sinick, Esq. Squire, Sanders & Dempsey L.L.P. 1201 Pennsylvania Avenue, N.W. Washington, D.C. 20004 (202) 626-6651
msinick@ssd.com

Counsel to Horizon Air Industries, Inc.

DATED: March 26, 2010CERTIFICATE OF SERVICE

I hereby certify that one copy of the foregoi ng Application for Renewal of Exemption has this day been served on each of the follo wing individuals via telecopier or email.

___________________________ Marshall S. Sinick

DATED: March 26, 2010

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