UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC



### Issued by the Department of Transportation on March 9 , 2010

NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 2010

- 0004

This serve s 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).

Joint Application of Republic Airline Inc. (Republic) and Frontier Airlines, Inc. (Frontie r)

filed 1/5/10, for:

XX Exemption for Republic Airline Inc. d/b/a Midwest Airlines 1 for two years under 49 U.S.C. 40109 to provide the following service:

Scheduled foreign air transportation of persons, property, and mail between Denver, Colorado, and

C ancun, Mexico; Indianapolis, Indiana, and Cancun, Mexico; Kansas City, Missouri, and Cancun, Mexico; St. Louis, Missouri, and Cancun, Mexico; Salt Lake City, Utah, and Cancun, Mexico; Denver, Colorado, and Puerto Vallarta, Mexico; Kansas City, Missouri, an d Puerto Vallarta, Mexico; Denver, Colorado, and Cozumel, Mexico; Denver, Colorado, and Mazatlan, Mexico; and Denver, Colorado, and San Jose del Cabo, Mexico, for the purpose of code

- share services. 2 The applicants propose to begin the services as soon as possible.

Applicant reps: Jennifer Trock for Frontier (202) 663

- 8000 and Robert Cohn for Republic (202) 637

- 4999 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: March 9 , 2010

, through March 9 , 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)

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. 3 The exemption authority granted to Republic is limited to code

- share services only.

1 See Repu blic Airline, Inc., Notice of Registration of Trade Name, dated October 6, 2009.

2 On July 31, 2009, Republic Airways Holdings Inc., Republic’s parent, acquired Midwest Airlines, Inc. (‘Midwest”). The applicants advise that they have requested that IATA issue Midwest’s “YX” code to Republic,

and state that Republic intends to place Midwest’s “YX” code on Frontier’s flights in the subject markets.

3 The applicants state that Frontier currently serves the Denver

- Cancun/Puerto Vallarta/San Jose del Ca bo markets

on a year

- round basis, and all of the remaining markets on a seasonal basis.The code

- share operations conducted under this authorization are subject to the following conditions:

(a) The code

- sharing operations conducted under this authority must co mply with 14 CFR 257 and with any amendment to the Department’s regulations concerning code

- share arrangements that

may be adopted. Notwithstanding any provisions in the contract between the carriers, our approval here is expressly conditioned upon the re quirements that the subject foreign air transportation be sold in the name of the carrier holding out such service in computer reservation systems and elsewhere; that the carrier selling such transportation ( i.e. , the carrier shown on the ticket) accept re sponsibility for the entirety of the code

- share journey for all obligations established in its contract of carriage with the passenger; and that the passenger liability of the operating carrier be unaffected; and

(b) The authority granted here is specifically conditioned so that neither Republic nor its code

- share partner(s) shall give any force or effect to any contractual provisions between themselves that are contrary to these conditions.

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

Docket. We may amend, modify, or revoke the authority granted in this Notice at any time without hearing at our discretion.

Persons entitled to petition the Department for review of the action set forth in this Notice under the Department’s regulat ions, 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.govATTACHMENT

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 requirem ents 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 Adminis tration, 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 commenc ing 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 a dequate 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.



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