UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation on December 9, 2011

NOTICE OF ACTION TAKEN -- DOCKET DOT-OST-2011-0214 ________________________________________________________________________________________________________________

This serves as notice to the public of the action described below, taken by the Department official 

indicated (no additional confirming order will be issued in this matter).

Application of Frontier Airlines, Inc. (Frontier) filed 11/21/11 for:

XX Exemption for two years under 49 U.S.C. 40109 to provide the following service:

Scheduled foreign air transportation of persons, property, and mail between Chicago, Illinois, on 

the one hand, and Cancun, Puerto Vallarta, and San Jose del Cabo, Mexico, on the other hand.1 2

Applicant rep: Robert E. Cohn (202) 637-4999 DOT Analyst: Brett D. Kruger (202) 366-8025

D I S P O S I T I O N

XX Granted, in part (i.e., exemption authority for Frontier to serve the Chicago-Puerto Vallarta and 

Chicago-San Jose del Cabo routes, subject to conditions; see below)

XX Deferred, in part (i.e., exemption authority for Frontier to serve the Chicago-Cancun route, see

Remarks below)

The above action granting Chicago-Puerto Vallarta and Chicago-San Jose del Cabo exemption authority 

was effective when taken: December 9, 2011,

3 through December 9, 2013.

The above action deferring on the remainder of the application was effective when taken: 

December 9, 2011.

Action taken by: Paul L. Gretch, Director

 Office of International Aviation

XX The authority granted is consistent with the aviation agreement between the United States and 

Mexico.

 1 Frontier proposes to begin year-round service between Chicago and Cancun on or about January 31, 2012; seasonal 

service between Chicago and Puerto Vallarta on or about January 31, 2012; and seasonal service between Chicago 

and San Jose del Cabo on or about February 12, 2012.

2 Frontier intends to replace the services provided by Brendan Airways, LLC d/b/a USA 3000 Airlines (USA 3000) 

on the subject routes. By letter dated November 21, 2011, USA 3000 advised the Department that effective January 

30, 2012, all of its U.S.-Mexico services will cease. 3 Frontier may not begin scheduled foreign air transportation on the subject routes until January 31, 2012 (see

conditions, below).
2

Except to the extent exempted or waived, this authority is subject to the terms, conditions, and limitations 

indicated: 

XX Holder’s certificates of public convenience and necessity

XX Standard Exemption Conditions (attached)

____________________________________________________________________________________

Responsive Pleadings/Remarks: Under the U.S.-Mexico aviation agreement, three carriers may be 

designated to provide scheduled foreign air transportation of persons, property, and mail between 

Chicago and Cancun, Chicago and Puerto Vallarta, and Chicago and San Jose del Cabo. Currently, 

American Airlines, Inc. (American); United Air Lines, Inc. (United); and USA 3000 are designated to 

provide these services. USA 3000 has advised the Department that it will cease service in these markets 

on January 30, 2012. Frontier states in its application that it intends to provide replacement service in the 

Chicago-Cancun and Chicago-Puerto Vallarta markets on January 31, 2012, and in the Chicago-San Jose 

del Cabo market on February 12, 2012.

On December 6, 2011, AirTran Airways, Inc. (AirTran) filed a competing application for exemption 

authority to serve between Chicago and Cancun.4

 AirTran also filed an answer to Frontier’s application 

objecting to Frontier’s request to the extent that it seeks authority to serve the Chicago-Cancun market. 

AirTran states that it does not object to Frontier’s request to serve the Chicago-Puerto Vallarta and 

Chicago-San Jose del Cabo markets. We will therefore grant Frontier the requested exemption authority 

to serve between Chicago, Illinois, on the one hand, and Puerto Vallarta and San Jose del Cabo, Mexico, 

on the other hand. We will consider subsequently the requests of Frontier and AirTran to serve between 

Chicago, Illinois, and Cancun, Mexico.

Effective Date for Startup/Designation: Frontier may begin marketing and selling the subject services 

authorized here, but it cannot commence direct-carrier services until January 31, 2012. As noted above, 

there are currently no designation opportunities available in the subject markets until USA 3000 ceases 

service on January 30, 2012. Under the circumstances presented in this case, including the fact that no 

party opposed Frontier’s request for Chicago-Puerto Vallarta and Chicago-San Jose del Cabo services, 

we have decided that it is in the public interest to grant those portions of Frontier’s application. In this 

regard, we will withdraw the designations of USA 3000 effective upon the departure of its last scheduled 

flights on January 30, 2012, and designate Frontier for the subject markets effective January 31, 2012.

Conditions: The U.S.-Mexico exemption authority granted is subject to the dormancy notice 

requirements set forth in condition 7 of Appendix A of Order 88-10-2, and the notice requirements for 

seasonal/intermittent services as set forth in Order 96-11-24, at 5. Consistent with our standard policy, 

the dormancy notice period will begin on the carrier’s proposed start-up dates for the subject services as 

follows: January 31, 2012, for the Chicago-Puerto Vallarta services; and February 12, 2012, for the 

Chicago-San Jose del Cabo services.

On the basis of data officially noticeable under Rule 24(g) of the Department's regulations, we found the 

applicant qualified to provide the exemption services authorized.

Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our 

action was consistent with Department policy; (2) grant of the application was consistent with the public 

interest; and (3) grant of the authority would not constitute a major regulatory action under the Energy 

Policy and Conservation Act of 1975. To the extent not granted or deferred, we denied all requests in the 

referenced Docket. We may amend, modify, or revoke the authority granted in this Notice at any time 

without hearing at our discretion.

 4 See AirTran application, Docket DOT-OST-2011-0225, dated December 6, 2011.
3

Persons entitled to petition the Department for review of the action set forth in this Notice under the 

Department’s regulations, 14 CFR §385.30, may file their petitions within seven (7) days after the date of 

issuance of this Notice. This action was effective when taken, and the filing of a petition for review will 

not alter such effectiveness.

An electronic version of this document is available on the World Wide Web at:

http://www.regulations.gov
ATTACHMENT

U.S. Carrier Exemption Conditions

In the conduct of the operations authorized, the U.S. carrier applicant(s) shall:

(1) Hold at all times effective operating authority from the government of each country served;

(2) Comply with applicable requirements concerning oversales contained in 14 CFR 250 (for 

scheduled operations, if authorized);

(3) Comply with the requirements for reporting data contained in 14 CFR 241;

(4) Comply with requirements for minimum insurance coverage, and for certifying that coverage to 

the Department, contained in 14 CFR 205;

(5) Except as specifically exempted or otherwise provided for in a Department Order, comply with 

the requirements of 14 CFR 203, concerning waiver of Warsaw Convention liability limits and 

defenses;

(6) Comply with all applicable requirements of the Federal Aviation Administration, the 

Transportation Security Administration, and with all applicable U.S. Government requirements 

concerning security, including, but not limited to, 49 CFR Part 1544. To assure compliance with all 

applicable U.S. Government requirements concerning security, the holder shall, before commencing 

any new service (including charter flights) to or from a foreign airport, contact its Principal Security 

Inspector (PSI) to advise the PSI of its plans and to find out whether the Transportation Security 

Administration has determined that security is adequate to allow such airport(s) to be served;

(7) Comply with such other reasonable terms, conditions, and limitations required by the public 

interest as may be prescribed by the Department of Transportation, with all applicable orders and 

regulations of other U.S. agencies and courts, and with all applicable laws of the United States.

The authority granted shall be effective only during the period when the holder is in compliance 

with the conditions imposed above.

 

1/2008