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March 5, 2014

 Exemption No. 7370H

 Regulatory Docket No. FAA-2002-13734

Mr. Robert E. Cohn 

Counsel for Republic Airlines, Inc. 

Hogan Lovells US LLP

Columbia Square

555 Thirteenth Street, NW.

Washington, DC 20004

Dear Mr. Cohn:

This letter is to inform you that we have granted your petition to amend FAA Exemption 

No. 7370, as amended. It explains the basis for our decision, describes its effect, and lists the 

revised conditions and limitations.

The Basis for Our Decision

By letter dated January 6, 2014, you petitioned the FAA on behalf of Republic Airline Inc. 

(Republic) and Shuttle America Corporation (Shuttle America) seeking confirmation that 

Exemption No. 7370G authorizes Shuttle America to use Slot 1497 at Ronald Reagan 

Washington National Airport (DCA) as proposed and described more fully later in this 

document, or alternatively requesting that the FAA amend the exemption to the extent 

necessary to allow Shuttle America to operate Slot 1497 beginning on or about March 1, 

2014, as Delta Connection service. That exemption from 14 CFR § 93.123 allowed Republic 

to use exemption slot number 1497 at DCA for a flight marketed under one of the Republic 

brands. On July 9, 2012, the FAA extended this exemption for a period of 5 years.

As set forth in your petition, Republic uses slot 1497 to operate a flight from Madison, 

Wisconsin in nonstop service to DCA under the Frontier Airlines brand. Republic has been 

advised by Frontier that it will no longer continue this service. Shuttle America, Republic’s 
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corporate affiliate, intends to use the slot for service between DCA and Madison, marketed by 

Delta Connection beginning on or about March 1, 2014, pursuant to its existing fee-forservice/code sharing agreement with Delta Air Lines.1

 

In Condition No. 3 of Exemption No. 7370G, it states, “This slot may be utilized only by 

Republic for a flight marketed under one of the Republic brands.” You argue that Shuttle 

America’s proposed operation with slot 1497 would be consistent with this condition because: 

(1) Republic and Shuttle America are considered to be one-and-the-same carrier under the 

FAA’s slot rule2; and therefore that (2) Shuttle America’s proposed operation of slot 1497 as 

Delta Connection service is consistent with Condition No. 3, in that Shuttle America has 

registered the trade name “Delta Connection” with the Department of Transportation and 

Shuttle America’s use of its registered trade name, Delta Connection should be considered 

“utilized....for flight marketed under one of the Republic brands.” 

As precedent for this position, you state that Shuttle America’s registered use of the trade

name “Delta Connection” under 14 CFR part 215 is similar to Republic’s registration of the 

trade name “Frontier” with the Department of Transportation pursuant to part 215. As such, 

you contend that a waiver or amendment to the exemption is not necessary because Shuttle 

America’s operation of slot 1497 as Delta Connection service would be consistent with 

Condition No. 3. 

If the FAA does not agree with the forestated position, you request that the FAA amend the 

exemption to permit Shuttle America to use the slot for continued service to Madison. In 

support of an exemption, you argue that the public interest is supported in the preservation of 

the only nonstop service between the Washington, D.C. Metropolitan area and Madison; the 

enhancement of competition and service options as Delta would be using dual-class ERJ 

aircraft and passengers would have access to Delta’s global frequent flight program and 

connectivity options. Lastly, you argue that amending the exemption as described above 

would not adversely affect safety or operational efficiency in that Shuttle America/Delta 

Connection would be operating the flight in the same time period and consistent with previous

FAA findings in extending the exemption that there is no adverse impact on safety. 

The FAA published a summary of the petition for exemption in the Federal Register for 

comment on January 16, 2014. The comment period closed on January 27, 2014. The FAA 

received approximately 18 comments and the only commenters objecting to the exemption 

were two air carriers. Comments in support of the petition were from U.S. Senators Baldwin 

and Johnson, Governor Walker of Wisconsin, several local elected officials, affected

 

1 By letter dated January 8, 2014, you advised that effective February 1, Frontier will no longer provide this service and that 

Chautauqua Airlines, a corporate affiliate of Republic, will provide the service using Delta Connection. 2 Section 93.123(c) of 14 C.F.R. provides that “For purposes of this subpart, if an air carrier, commuter operator, or other 

person has more than a 50-percent ownership or control of one or more other air carriers, commuter operators, or other 

person, they shall be considered to be a single air carrier, commuter operator, or person. In addition, if a single company has 

more than a 50-percent ownership or control of two or more air carriers and/or commuter operators or any combinations

thereof, those air carriers and/or commuter operators shall be considered to be a single operator. A single operator may be 

considered to be both an air carrier and commuter operator for purposes of this subpart.
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Chambers of Commerce, association, educational institutions, Dane County Regional Airport, 

and Dane County. 

Southwest Airlines and JetBlue Airways (hereinafter referred to as “Southwest/JetBlue”) filed 

two separate joint responses. Southwest/JetBlue argued that favorable action on the petition 

would be an “improper de facto transfer of the slot exemption to Delta that is inconsistent 

with the original purpose of the exemption which is to enhance competition by new entrant

and limited incumbent carriers.” They further state that the petition does not meet the public 

interest threshold cited in past FAA grant of exemptions and that Delta, as one of the largest

slot holders at DCA, can provide the service, absent the exemption, if it so desired. The 

carriers also challenge that Republic, Chautauqua and Delta have effectively proceeded with 

transferring the slot absent authorization from the FAA by advertising and selling the service 

under Delta.

 

Our Decision

As described in the petition, the operating authority for the flight using the exemption slot 

number 1497 remains with Republic/Chautauqua/Shuttle America, who for purposes of slot 

allocation, are a commonly owned carrier. In granting this exemption, the FAA is guided by

recent actions taken by the Department to preserve the DCA/Madison service and finds that 

this exemption supports the Department’s finding of public interest in maintaining this 

service. In consideration of the foregoing, I find that the requested amendment to Exemption 

No. 7370G is in the public interest and would not adversely affect safety. 

The FAA amends Condition No. 3 to remove the requirement that the flight must be marketed 

under one of the Republic brands and replace it with the requirement that the slot must be 

operated by Republic or a commonly owned carrier. This amendment does not negatively 

impact operational efficiency at DCA and does not alter any other condition set forth in the 

exemption. 

The FAA advises that upon the termination or expiration of this exemption, the operating 

authority conferred herein will cease to be authorized by exemption. The FAA will either 

retire the exemption permanently or take action to codify this existing operation under the 

provisions of the Title 14 of the Code of Federal Regulations, Subpart K, and the 

corresponding allocation mechanisms. 

Therefore, under the authority provided by 49 U.S.C. §§ 106(f), 40113, and 44701, which the 

FAA Administrator has delegated to me, Republic and Shuttle are granted an amendment per 

its petition to be exempted from § 93.123 that allows Republic to use exemption slot number 

1497 at DCA for a flight marketed under one of the Republic brands, subject to the amended 

conditions and limitations listed below. 
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Conditions and Limitations

1. The operation authorized by the grant of exemption may be conducted only in the 

1800 hour. The FAA may adjust the time period if necessary for air traffic control 

or other operation purposes.

2. Republic must contact the FAA Slot Administration Office to confirm the 

scheduled operation and frequency under this exemption.

3. This slot may be utilized only by Republic, or a commonly–owned carrier.

4. This exemption will be rescinded if Republic discontinues schedule operations at 

DCA.

5. The operation authorized under this exemption is not part of the pool of permanent

slots at DCA. However, this operation, while in effect, is subject to the provisions

of 14 CFR part 93, Subparts K and S, including the slot usage requirement, except 

that the authority may not be sold, leased, or otherwise transferred.

6. Republic must report usage of this slot once it begins operations authorized herein.

7. This letter must be attached to, and is part of, Exemption No. 7370.

The Effect of Our Decision

Our decision maintains the termination date of Exemption No. 7370, as amended, of 

September 30, 2017, unless sooner superseded or rescinded.

Sincerely,

/s/

Marc L. Warren

Acting Chief Counsel