UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC



### Issued by the Department of Transportation on June 23

, 2010

NOTICE OF ACTION TAKEN

DOCKET S DOT

- OST

- 2010

- 01 37 and DOT

- OST

- 2010

- 0146

(Milwaukee

- Cancun)

_________________________________________________________________________________________________________ This serves as notice to the public of the action described below, taken by the Department official indi cated (no additional confirming order will be issued in this matter).

____________________________________________________________________________________________

Docket DOT

- OST

- 2010

- 0137: Application of FRONTIER AIRLINES, INC. (Frontier)

, filed 5 /2 0 /10

, 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 Milwaukee, Wisconsin, and Cancun, Mexico

. 1

____________________________________________________________________________________________

Docket DOT

- OST

- 2010

- 0146: Application of AIRTRAN AIRWAYS, INC. (AirTran)

, filed 6 / 7 /10

, 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 Milwaukee, Wisconsin, and Cancun, Mexico

. 2

Applicant rep s : Robert E. Cohn (Frontier) ( 202) 637

- 4999 and Edward P. Faberman (AirTran) (202) 719

- 7402 DOT Analyst: Linda L. Lundell (202) 366

- 2336

D I S P O S I T I O N

XX Granted (subject to conditions, see below)

The above action was effective when taken: June 23 , 2010, through June 23

, 2012

.

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.

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

XX The holder s ’ certificates of public convenience and necessity

XX Standard exemption conditions (attached)

- see next page

-

1 Frontier states that it will provide seasonal service in the market, beginning December 18, 2010.

2 AirTran states that it will provide year

- round service in the market, beginning April 1, 2011.Conditions : The U.S.

- Mexico exemption authority granted to Frontier and AirTran is subject to the dormancy

notice requirements set forth in condition 7 of Appendix A of Order 88

- 10

- 2 and, for Frontier ’s proposed seasonal service, the notice requirements for seasona l/intermittent service as set forth in Order 96

- 11

- 24, at 5. Consistent with our standard policy, the dormancy notice period will begin on the carriers’ proposed startup dates for the subject services

, as follows: December 18, 2 010, for Frontier; and Apr il 1, 2011, f or AirTran.

Remarks: Under the U.S.

- Mexico aviation agreement, up to a total of three U.S. carriers may be designated to provide direct

- carrier (own

- aircraft) service on the Milwaukee

- Cancun route. At the time the captioned applications were filed, two U.S. carriers were already authorized to provide such services ( D elta Air Lines, Inc. (Delta), and Brendan Airways, LLC d/b/a USA 3000 (USA 3000))

, leaving only one designation opportunity

available for direct

- car rier services. 3 Subsequently, however, USA 3000 filed notice to the Department that it was no longer serving the Milwaukee

- Cancun route. 4 Based on USA 3000’s dormancy notice, we are now in a position to award the requested authority to both applicants in this matter. We h ave granted the captioned applications contemporaneously here

.

On the basis of data officially noticeable under Rule 24(g) of the Department's regulations, we found the applicant s 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 authority 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, we denied all requests in the referenced Docke ts

. We may amend, modify, or revoke the authority granted in this Notice at any time w ithout hearing at our discretion.

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 o f 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:

www.reg ulations.gov

3 AirTran filed a response to Frontier’s application, with an accompanying motion for leave to file an otherwise unauthorized document. We have granted AirTran’s motion. Frontier and AirTran filed additional responsive pleadings in the captioned

dockets calling for carrier selection procedures if there were not sufficient designations available to authorize the proposed

services of both applicants

. Because we have granted the requested exemption authority of both applicants, our action here does not reach the issues raised in the responsive pleadings.

4 S ee USA 3000 dormancy notice dated June 11, 2010, in Docket DOT

- OST

- 2008

- 0295.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 mini mum 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,

inc luding, 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; and

(7) Comply with such other reason able 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 State s.

The authority granted shall be effective only during the period when the holder is in compliance with the conditions imposed above.

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