BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

________________________________________________ )

Application of )

)

VIRGIN AMERICA INC. )

) Docket No. OST

- 2010

-

_____ for a certificate of public c onvenience and necessity )

pursuant to 49 U.S.C. § 41102 to engage in foreign )

scheduled air transportation of persons , property and mail )

between the United States and Mexico

. )

_______________________________________________ )

APPLICATION OF VIR GIN AMERICA INC.

FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY

FOR FOREIGN SCHEDULED AIR TRANSPORTATION AUTHORITY

Communications with respect to this document should be sent to:

Barbara Russell

Associate General Counsel

Virgin America Inc.

55 5 Airport Blvd., Second Floor

Burlingame, CA 94010

(650) 762

- 7394 (phone)

(650) 762

- 7004 (fax)

barbara.russell@virginamerica.com

June 29 , 2010

Notice : Any person who wishes to support or o ppose this Application may do so by: (1) filing

an answer by July 20 , 2010; and (2) serving that answer on the person(s) listed above and all

persons served with a copy of this Application1 BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

________________________________________________ )

Application of )

)

VIRGIN AMERICA INC. )

) Docket No. OST

- 2010

-

_____ for a certificate of public convenience and necessity )

pursuant to 49 U.S.C. § 41102 to enga ge in foreign )

scheduled air transportation of persons, property and mail )

between the United States and Mexico. )

_______________________________________________ )

APPLICATION OF VIRGIN AMERICA INC.

FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECE SSITY

FOR FOREIGN SCHEDULED AIR TRANSPORTATION AUTHORITY

Virgin America Inc. (“Virgin America”), pursuant to 49 U.S.C. § 41102, Subpart C of the

Department’s Rules of Practice (14 C.F.R. Part 302), and the Department’s streamlining

regulatory procedures for licensing U.S. air carriers, 1

In support of this A pplication, Virgin America states as follows: hereby applies for a certificate of public

convenience and necessity to engage in foreign scheduled air transportation of persons , property

and mail between the United States and Mexico

. Virgin Ameri ca plans to initiate s ervice in late

2010 with five (5) roundtrip flights per week between San Francisco and San Jose del Cabo,

Mexico. Virgin America also plans to initiate service in early 2011 between San Francisco and

Cancun, Mexico

, with three (3) roundtrip flights per we ek, and between Los Angeles and

Cancun , Mexico, with five (5) roundtrip flights per week.

1. Virgin America is a Delaware corporation in good standing with its principal

place of business at 5 55 Airport Boulevard, Burlingame, California. Virgin America is a citizen

1 See Notice in Docket OST

- 200 5

- 22228 (August 26, 2005).2 of the United States as defined in 49 U.S.C. § 40102(a)(15) and has been found fit to provide

scheduled interstate air transportation of persons, property and mail. See Order s 2007

- 5

- 11 and

2007

- 8

- 17; and Letter from Susan L. Kurland, DOT Assistant Secretary for Aviation and

International Affairs to Virgin America in Docket OST

- 2005

- 23307 (determining that Virgin

America remains a citizen of the United States) (Jan. 8, 2010). Virg in America is also

authorized to provide schedule d foreign air transportation between the U.S. and Canada

. See

Notice of Action Taken (“NOAT”) in Docket OST

- 2010

- 0068 (Apr. 2, 2010).

2. Virgin America is fit, willing and able to provide the air transportatio n for which

authority is sought. The grant of the authority sought herein is fully consis tent with the public

convenience and necessity , as required under 49 U.S.C. § 41102.

3. Virgin America currently provides daily scheduled interstate air transportation

b etween: (i) San Francisco and the following cities: Boston, New York, Washington, D.C.

(Dulles), Ft. Lauderdale, Seattle, Los Angeles, San Diego and Las Vegas; and (ii) Los Angeles

and the following cities: Boston, New York, Washington, D.C. (Dulles), Ft . Lauderdale and

Seattle. Virgin America also currently provides schedule d foreign air transportation between

San Francisco and Los Angeles, on the one hand, and Toronto, Canada, on the other hand.

4. As stated above, Virgin America will initially provide se rvice on the following

routes: (i) Los Angeles

— Cancun ( five roundtrip flight s per week ); (ii) San Francisco

— Cancun

( three roundtrip flight s per week ); and (iii) San Francisco

— San Jose del Cabo ( five roundtrip

flights per week ).

5. T h e traffic rights sought herein a re p rovided for under the U.S.

– Mexico

Transport Agreement. 2

2 Air Transport Services Agreement, with schedule, between the United States and Mexico (Aug. 15, 1960), as

amended and extended.3 6. Vir gin America is seeking, pursuant to separate petitions field concurrent with

this request, exemption s under 49 U.S.C. § 40109 to initiate these service s between the United

States and Mexico . Virgin America asks that the Department take official notice of all

information contained in those petition s

.

7. The addition of Virgin America’s well

- known and well

- received, h igh quality

operations to and from Mexico will provide much needed competition , market development and

high quality service to t he traveling public in the U.S.

— Mexico market.

8. Based on the entire record in Docket OST

- 2005

- 23307, the current state of

bilater al relations between the United States and Mexico , and the considerable public benefits

derived from additional competition and service in the U.S.

— Mexico market, Virgin America

respectfully request s that the Department grant the authority sought herein. Moreover, Virgin

America asks that the authority requested herein be integrated with all other authority held by

Virgin America.4 WHEREFORE, for the foregoing reasons, Virgin America Inc. respectfully requests that

the Department grant a certificate of con venience and public necessity under 49 U.S.C. § 41102

to Virgin America, authorizing the airline to provide scheduled foreign air transportation of

persons , property and mail between the United States and Mexico

.

Respectfully submitted,

Barbara Russ ell

Associate General Counsel

Virgin America Inc.

555 Airport Blvd., Second Floor

Burlingame, CA 94010

(650) 762

- 7394 (phone)

(650) 762

- 7004 (fax)

barbara.russell@virginamerica.com

June 29 , 201 0CERTIFICATE OF SERVICE

I hereby certify that a copy of the foregoing Application of Virgin America Inc. for a n

exemption was served this 29 th day of June , 2010, via email transmission or first class mail,

postage prepaid, on the following persons:

J effrey Manley

Senior Advisor

– Regulatory Affairs

United Air Lines, Inc.

1025 Connecticut Avenue, N.W.

Suite 1210

Washington, D.C. 20036

jeffrey.manley@united.com

David Heffernan

Counsel for United Air Lines, Inc.

Wilmer Cutler Pickering Hale and Dorr LL P

1875 Pennsylvania Avenue, NW

Washington, D

. C

. 20006

david.heffernan@wilmerhale.com

Marshall S. Sinick

Counsel for Alaska Airlines, Inc.

Squire, Sanders & Dempsey, LLP

1201 Pennsylvania Avenue, N.W.

Suite 500

Washington, D.C. 20004

msinick@ssd.com

Carl B. Nelson, Jr.

Associate General Counsel

American Airlines, Inc.

1101 Seventeenth Street, N.W.

Suite 600

Washington, D.C. 20036

carl.nelson@aa.com

Howard Kass

Vice President, Legal

US Airways, Inc.

1401 H Street, N.W., Suite 1075

Washington, D.C. 20005

howard.kass@usairways.com Robert E. Cohn

Counsel for Frontier Airlines, Inc.

Hogan Lovells US LLP

Columbia Square

555 Thirteenth Street, NW

Washington, D.C. 20004

robert.cohn@hoganlovells.com

Alexander V an d er Bellen

Sametta C. Barnett

Jeff Morgan

Del ta Ai r Lines, Inc.

1212 New York Avenue, NW

Suite 200

Washington, D.C. 20005

s ascha.vanderbellen@delta.com

sametta.c.barnett@delta.com

jeff.morgan@delta.com

David L. Vaughan

Counsel for United Parcel Service of

America, Inc.

Kelley Drye Collier Shannon

3 050 K Street, N.W.

Suite 400

Washington, D.C. 20007

dvaughan@kelleydrye.com

Hershel I. Kamen

Vice President

– International and

Regulatory Affairs

Continental Airlines, Inc.

Government Affairs

— 8 th Floor

1600 Smith Street

Dept. HQSGV

Houston, TX 77002

hkamen@coair.com2 R. Bruce Keiner, Jr.

Counsel for Continental Airlines, Inc.

Crowell & Moring LLP

1001 Pennsylvania Ave., NW

Washington, D.C. 20004

rbkeiner@crowell.com

John M. Allen

Director

Flight Standards Service

Federal Aviation Administration

80 0 Independence Avenue, S.W.

Room 821

Washington, D.C. 20591

john.allen @faa.gov

Joanne W. Young

Counsel for Spirit Airlines, Inc.

Kirstein & Young, PLLC

1750 K Street, NW

Suite 200

Washington, D.C. 20006

jy oung@yklaw.com

Jonathan B. Hill

Counsel for Jet Blue Airways Corp.

Dow Lohnes PLLC

1200 New Hampshire Ave., N.W., Suite 800

Washington, D.C. 20036

jhill@dowlohnes.com

Edward P. Faberman

Counsel for AirTran Airways, Inc.

Wiley Rein, LLP

1776 K Street, N.W.

Washington, D.C. 20006 efaberman@wileyrein.com

G. Bailey Leopard

Legal and Regulatory Affairs

Federal Express Corporation

3620 Hacks Cross Road

Building B, 3 rd Floor

Memphis, TN 38125

gbleopard@fedex.com

John Fredericksen

Vice President

– General Counsel

MN Airlines, LLC d/b/a Sun Country

Airlines

1 300 Mendota Heights Road

Mendota Heights, MN 55120

john.fredericksen@suncountry.com

Pierre Murphy

Counsel for Brendan Airways, LLC d/b/a

USA 3000 Airlines

1200 New Hampshire Ave., N.W.

Washington, D.C. 20036

pmurphy@lopmurphy.com

Gina Marie Lindsey

Chief Executive Officer

Los Angeles World Airports

One World Way

Los Angeles, CA 90045

John L. Martin

Airport Director

San Francisco International Airport

PO Box 8097

San Francisco, CA 94128

- 8097

________________________________ Barbara RussellVERIFIC ATION

Pursuant to Title 18 United States Code Section 1001, I, Barbara Russell, in my

individual capacity and as the authorized representative of the applicant, have not in any manner

knowingly or willfully falsified, concealed or covered up any materia l fact or made any false,

fictitious or fraudulent statement or knowingly used any documents which contain such

statements in connection with the preparation, filing or prosecution of this exemption

application. I understand that an individual who is foun d to have violated the provisions of 18

U.S.C. Section 1001 shall be fined not more than $10,000 or imprisoned not more than five

years, or both.

Name: Barbara Russell

Date: June 29

, 2010

Title: Associate General Counsel