\\DC - 040601/000003 - 3483723 v1

BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

Application of

REPUBLIC AIRLINE INC.

for an exemption from 14 CFR Part 93 under

49 U.S.C. § 41714(d)

)

)

)

)

)

)

)

)

Docket DOT-OST-1999-6240

AMENDMENT TO MOTION OF REPUBLIC AIRLINE INC.

FOR AN AMENDMENT TO SLOT SLIDE EXEMPTION AUTHORITY

Communications with respect to this document should be addressed to:

Ethan J. Blank

Vice President, General Counsel

REPUBLIC AIRWAYS HOLDINGS INC.

8909 Purdue Road

Indianapolis, Indiana 46268

Robert E. Cohn

Patrick R. Rizzi

HOGAN LOVELLS US LLP

Columbia Square

555 Thirteenth Street, NW

Washington, DC 20004

+1 202 637 4999/5659

robert.cohn@hoganlovells.com

patrick.rizzi@hoganlovells.com

Counsel for

REPUBLIC AIRLINE INC.

August 24, 2012
\\DC - 040601/000003 - 3483723 v1

BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

Application of

REPUBLIC AIRLINE INC.

for an exemption from 14 CFR Part 93 under

49 U.S.C. § 41714(d)

)

)

)

)

)

)

)

)

Docket DOT-OST-1999-6240

August 24, 2012

AMENDMENT TO MOTION OF REPUBLIC AIRLINE INC.

FOR AN AMENDMENT TO SLOT SLIDE EXEMPTION AUTHORITY

Republic Airline Inc. (“Republic”) hereby amends its July 18, 2012 motion and

requests that the Department amend the “slot slide” exemption authority granted by

DOT Order 1999-11-4 as follows:

1. Change the designated destination for slot #4126/1236 to permit Republic

to use the slot exemption for service to Madison, Wisconsin, and retime

slot #4126/1236 from 1500 to 2000, and

2. Change the designated destination for slot #4124/1087 to permit Republic

to use the slot exemption for service to Omaha and retime slot #4124/1087

from 1700 to 1900.

These slots are operated by Republic under the “Frontier Airlines” brand.

Subsequent to the filing of the July 18, 2012 Motion, Frontier finalized the DCA

schedules for the winter 2012/2013 season. Those schedule changes require

revision to Republic’s motion to amend the slot exemption for slots #4126/1236 and

#4124/1087. Republic submits that the requested amendment meets the statutory
Amendment to Motion of Republic Airline

Page 2

\\DC - 040601/000003 - 3483723 v1

requirements in 49 U.S.C. § 41714(d), including the exceptional circumstances

criterion, and is fully consistent with the public interest and Department policy.

First, the amended request fully satisfies the “statutory operational

requirements” under 49 U.S.C. § 41714(d)(1)(A)-(E) as follows:

 It does not involve new or additional slot slide exemption requests.

 It would not result in an increase in the total number of slots per day at DCA or

the total number of slots at DCA from 7:00 a.m. to 9:59 p.m.;

 It would not increase the number of operations at DCA in any one-hour period

by more than two operations;

 It would not result in the withdrawal or reduction of slots operated by an air

carrier or a net increase in the noise impact on surrounding communities.

Second, in terms of the “exceptional circumstances” requirement, by allowing

Republic d/b/a Frontier the flexibility to alter the use of its slot slide exemption to

serve Madison and Omaha, the Department will enable Frontier to use its scarce

DCA slots more efficiently and to match more closely its services to the demands of

the marketplace.

Frontier is a committed low-cost, low-fare competitor widely acknowledged as

providing very low fares and high-quality customer service. As the Department stated

in DOT Order 2004-4-1, at 19, “Frontier is a new entrant/limited incumbent with a

record as a low-fare competitor . . . .” (emphasis added)). Frontier competes

vigorously with high-fare legacy carriers at DCA. Frontier holds no High Density Rule

slots at DCA and uses a handful of slot exemptions operated by Republic to provide

a limited amount of within-perimeter flights under the Frontier brand.
Amendment to Motion of Republic Airline

Page 3

\\DC - 040601/000003 - 3483723 v1

Currently, these two slots are operated for Frontier branded service to

Milwaukee. However, as Republic pointed out in its July 18, 2012 motion, Frontier

has substantially reduced service at Milwaukee, down from over 80 daily flights a

year ago, to only 8 flights today. By October 28, it will have only 6 flights on peak

days. As a result of changes to Frontier’s schedules, Republic d/b/a Frontier needs

to be able to use slot #4124/1087 for a flight to Omaha and to use #4126/1236 for a

flight to Madison as the only means to enable Frontier to preserve those

communities’ only low-fare service to DCA.

Republic d/b/a submits that this request meets the statutory requirement of

exceptionality because it needs the requested amendment to the slot slide

exemptions in order to allow Republic d/b/a Frontier to maintain nonstop service

between DCA, on the one hand, and Omaha and Madison, on the other hand.

With respect to Madison, Republic d/b/a Frontier is the only airline providing

nonstop service to DCA. Delta previously served DCA-Madison but terminated that

service in January 2012. As of October 28, 2012, Republic will have only one slot

available for service to Madison. It needs to be able to use slot #4126/1236 for a

DCA departure at 2000 to Madison in order to be able to maintain one roundtrip in

the DCA-Madison market. Republic’s DCA-Madison “Capital-to-Capital” service has

been very well received and supported by the Madison community. If Republic’s

request is not granted, Madison, the capital of Wisconsin, would lose its only nonstop

service to the nation’s capital. Republic submits that clearly establishes “exceptional

circumstances.”
Amendment to Motion of Republic Airline

Page 4

\\DC - 040601/000003 - 3483723 v1

A similar situation would exist at Omaha. As of October 28, Republic will have

only a single slot available for service to Omaha and it needs to be able to use slot

#4124/1087 at 1900 for a DCA arrival from Omaha to enable it to maintain one

roundtrip in the DCA-Omaha market. Republic/Frontier provides the only competitive

nonstop service between DCA and Omaha and the only LCC low-fare service on that

route. Reagan Washington National Airport is among Omaha’s top 5 O&D

destinations, and Washington D.C. (DCA/IAD/BWI) is among Omaha’s top 5

destinations. Moreover, Frontier Airlines (with service operated by Republic)

continues to be the chosen carrier – based on service and price – for government

travel between DCA and Omaha in CY 2012 under the GSA’s City-Pair Program, and

thus giving Republic the ability to preserve its existing nonstop service would allow

government travelers to continue to enjoy a low-fare service option. In the absence

of the grant of this amendment, Omaha would lose its only competitive nonstop

service and its only nonstop low-fare option between Omaha and DCA. Republic

submits that the importance of retaining Frontier’s low-fare service between DCA and

Omaha meets the “exceptional circumstances” criterion.

Third, giving Republic/Frontier the flexibility to use these slots to maintain

nonstop service between DCA and Omaha and Madison is consistent with

Department precedent. In DOT Order 2006-3-9, the Department approved Spirit

Airlines’ request for slot exemption flexibility to add Detroit as a designated

destination, in addition to Ft. Lauderdale. The Department noted that there “are no

additional statutory impediments in amending existing slot exemption requests to

revise the markets served . . . to/from DCA and allow for increased flexibility and
Amendment to Motion of Republic Airline

Page 5

\\DC - 040601/000003 - 3483723 v1

account for changes in market conditions.” DOT Order 2006-3-9, at 3 (emphasis

added). The Department also found that Spirit’s request met the “exceptional

circumstances” standard because Spirit had a very small, constrained service pattern

at DCA and the ability to serve Detroit as an additional point would allow Spirit to

operate its services “more efficiently and more closely match its services to the

dynamic demand patterns the industry is currently experiencing.” Id. See also DOT

Order 1994-9-49, at 3 (granting slot slide exemption for service to Omaha because it

would address the important “needs of the communities of Nebraska, especially

Omaha and its surrounding communities”) and DOT Orders 1999-11-4, at 4; 2000-7-

20, at 4, 2000-10-27, at 2, and 2001-3-17, at 2.

The same rationale holds true here. Frontier and Republic have few DCA

slots and limited flexibility, and the change to the designated cities is necessary to

allow Frontier to continue to provide nonstop DCA-Omaha and DCA-Madison

service.

Fourth, in addition to meeting the exceptional circumstances criterion,

Republic’s request to amend the slot slide exemption meets the public interest

standard. Frontier provides highly beneficial LCC services, providing consumers with

low-fare competitive benefits. It currently provides the only nonstop service between

DCA and Madison and the only low-fare service option between DCA and Omaha.

As explained above, the requested change to the use of the slot slide exemptions is

critical to enable Frontier to preserve its only nonstop service between Madison and

DCA and its only low-fare nonstop service option between Omaha and DCA. Given
Amendment to Motion of Republic Airline

Page 6

\\DC - 040601/000003 - 3483723 v1

Frontier/Republic’s small presence and very limited flexibility at DCA, the exceptional

circumstances and public interest standards are clearly fulfilled.

Finally, with respect to Republic’s request to change the timing of the two

slots, Republic contacted the FAA slot administrator’s office, and was advised that

there would be no problem with the requested slot time revisions Republic seeks.

CONCLUSION.

Republic’s Motion fully satisfies the statutory criteria and the “exceptional

circumstances” standard, and is consistent with DOT policy and precedent.

Accordingly, Republic urges the Department to expeditiously grant this Motion to

amend its slot slide exemption authority as discussed herein.

Respectfully submitted,

__________________________________

Robert E. Cohn

Patrick R. Rizzi

HOGAN LOVELLS US LLP

555 Thirteenth Street, NW

Washington, DC 20004

+1 202 637 4999/5659

Counsel for

Republic Airline Inc.
\\DC - 040601/000003 - 3483723 v1

CERTIFICATE OF SERVICE

I hereby certify that a copy of the foregoing Amendment to Motion of Republic Airline

Inc. has been served this 24th day of August, 2012, upon each of the following addressees:

bob.kneisley@wnco.com; marshall.sinick@squiresanders.com; robert.wirick@aa.com;

francis.heil@aa.com; james.kaleigh@aa.com; sascha.vanderbellen@delta.com;

jhill@dowlohnes.com; jyoung@yklaw.com; dkirstein@yklaw.com;

john.fredericksen@suncountry.com; dan.weiss@united.com; steve.morrissey@united.com;

jonathan.linde@united.com; howard_kass@usairways.com;

barbara.russell@virginamerica.com; brian.ctr.meehan@faa.gov

Jonathan Echmalian