Order 20 1 2

- 4

- 5

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Departmen t of Transportation

on the 5 th day of April , 20 1 2

Served: April 5 , 201 2

FINAL ORDER

By Order 2012

- 3

- 10, in the above

- captioned proceeding, we t entatively selected AirTran Airways, Inc. (AirTran) for primary exemp tion authority and Frontier Airlines, Inc. (Frontier) for backup authority, to provide scheduled foreign air transportation of persons, property, and mail between Chicago, Illinois, and C ancun, Mexico.

Objections to the Department’s tentative decision were due no later than March 26, 2012, with answers due no later than April 2, 2012.

On March 26

, Frontier file d a comment indicating that it does not object to the s how

- c ause o rder

and

, while disappointed that it was not selected, will accept the award of backup authority

. On April 2, AirTran filed a response to Frontier’s comment and urg ed the Department to issue a

final order. In light of the fact that no objections were filed to our s how

- cause order in this proceeding, we have decided to proceed to final order in this matter.

ACCORDINGLY,

1. We make final our tentative findings and conclusions set forth in Order 2012

- 3

- 10; 1

1 This includes our tentative findings that AirTran and Frontier are qualified to provide the proposed services ( see Order 2012

- 3

- 10 at 4, n.19; and at 6, n.24). 2012 CHICAGO

- CANCUN COMBINATION SERVICE PROCEEDING

DOCKET

- DOT

- OST

- 2012

- 00012 2. We select AirTran Airways, Inc. , for primary authorit y and issue it exemption authority to provide scheduled foreign air transportation of persons, property, and mail between Chicago, Illinois, and Cancun, Mexico; 2

3

. We select Frontier Airlines, Inc. , for backup authority and issue it backup exemption

aut hority to provide scheduled foreign air transportation of persons, property, and mail between Chicago, Illinois, and Cancun, Mexico ; 3

4

. The exemption authority in ordering paragraph 1, above, is effective immediately and will remain in effect for two y ears, subject to conditions ; 4

5 . The backup authority in ordering paragraph 3 , above, will not become effective until: (1) AirTran Airways, Inc. notifies the Department, pursuant to the startup/dormancy conditions, that it has decided not to inaugurate its proposed Chicago

- Cancun service, or that its authority to serve the Chicago

- Cancun market has become dormant ; (2) Frontier Airlines, Inc. notifies the Department that it is still in a position to implement the services it proposed in its application, i n Docket DOT

- OST

- 2012

- 0001, and requests the Department to activate its backup exemption authority; 5 and (3) the Department takes action to activate its backup exemption authority; 6

6 . Should the above described backup exemption authority of Frontier Air lines, Inc. become activated, the authority for that market will remain in ef fect for two years, subject to conditions. If not activated within one year, the backup authority will expire;

7. The exemption authority described above will also be subject t o our standard exemption conditions (see attached Appendix);

8 . To the extent not granted, we deny all other requests in Docket DOT

- OST

- 2012

- 0001;

9. We will not entertain petitions for reconsideration of this order; and

2 We find that our action here woul d not constitute a “major regulatory action” under the Energy Policy and Conservation Act of 1975, as defined by section 313.4(a)(1) of the Department’s regulations.

3 Should Frontier’s backup authority be activated, we note that such action would not cons titute a “major regulatory action” under the Energy Policy and Conservation Act of 1975, as defined by section 313.4(a)(1) of the Department’s regulations.

4 Consistent with our standard practice for U.S.

- Mexico licensing authority, we will require AirTran to institute service in the market within 90 days after the service date of this order. In addition, the exemption authority granted is subject to the 90

- day dormancy condition and dormancy notice requirements set forth in condition 7 of Appendix A of Or der 88

- 10

- 2.

5 This notice can be filed in the form of a letter to the Director, Office of International Aviation, X

- 40, 1200 New Jersey Ave, SE, Washington, DC 20590, filed in the captioned docket herein, and served on all parties to the captioned docket.

6 Should Frontier’s backup authority become activated, such authority will be subject to the same startup conditions, dormancy conditions, and other conditions imposed on the primary carrier here.3 10 . We will serve this orde r on the parties to the captioned docket of this order; the Ambassador of Mexico in Washington, D.C.; the U.S. Department of State (Office of Aviation Negotiations);

and the Federal Aviation Administration.

By:

SUSAN L. KURLAND Assistant Secretary for Aviation

and International Affairs

(SEAL)

An electronic version of this document is available on the World Wide Web at http://www.regulations.gov4 Appendix

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 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 Administration, 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. Governmen t 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

Tran sportation Security Administration has determined that security is adequate 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 Depart ment 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.

1/2008