BEFOR E TH E • U I ' \f% . U.S . DEPARTMEN T O F TRANSPO^T^tlb N OFFIC E O F TH E SECRETAR Y ^ > . u b WASHINGTONvPJG i ' ^ 

### .^ASPORTATIO N n OPERATION S

- 1 P 3:l} b Applicatio n o f SUN AI REXPRESS , LL C d/b/ aSUN AI R INTERNATIONA L Fo r authorit y t o conduc t

schedule dpassenge r operation s a s acommute r ai r carrie r unde r 4 9 U.S.C . 4173 8 Docke t OST-2011-016 9

REPL Y O F SU N AI REXPRESS , LL C d/b/ aSU N AI RINTERNATIONA L T O TH E ANSWE RO F VPA A CO . Communication s with respec t t o thi s Repl y shoul db e sen t to : Thoma s L . Coope r Chie f Executiv e Officer

& Presiden t SU N AI REXPRESS , LL C d^/ a SU N AI RINTERNATIONA L 320 1 Griffi n Roa d Fourth Floo r Fort Lauderdale , FL 3331 2 (954 ) 660-986 5 FAX : (954)359-950 2 tlcooper@gosunair.ne t Lormi e Ann e Per a ZUCKERT , SCOUT T & RASENBERGER , L.L.P . 88 8 Seventeenth Street , N.W . Suit e 70 0 Washington , D.C . 2000 6 (202)973-791 3 FAX : (202)342-068 3 lapera@zsrlavy . co m Counse l for

Su n Ai r Express , LL C d/b/ aSu n Ai r Internationa l

Dated : Octobe r

7,201 1BEFOR E TH E U.S . DEPARTMEN T O F TRANSPORTATIO N OFFIC E O F TH E SECRETAR Y WASHINGTON , D.C . Applicatio n o f SU N AI REXPRESS , LL C d/b/ aSUN AI R INTERNATIONA L Fo r authorit y t o conduc t

schedule dpassenge r operation s a s acommute r ai r carrie r unde r 4 9 U.S.C . 4173 8 Docke t OST-2011-016 9

Dated : Octobe r

7 , 201 1 REPL Y O F SU N AI REXPRESS , LL C d/b/ aSU N AI RINTERNATIONA L T O TH E ANSWE RO F VPA A CO . Su n Ai r Express , LL C d/b/ aSu n Ai r Internationa l ("Su n Air " o r th e "Applicant" ) fileda

n Applicatio n o n Septembe r 9 , 201 1 for

authority t o conduc t

schedule doperation s a s acommute r ai r carrie r (th e "Application") . Su n Ai r amende dth e Applicatio n o n Septembe r 23,201 1 t o propos e schedule dpassenge r ai r transportatio n services , a s acommute r ai r carrier , betwee n Miami , Florid aan dBimini , th e Bahamas . VPA A Co . d/b/ aGulfstrea mInternationa l Airline s ("Gulfstream" ) submitte dan Answe r t o th e Applicatio n o n Septembe r 30 , 2011 . I n it s Answer , i t claime dtha t

"Su n Ai r doe s no t mee t th e citizenshi p o r

fitness requirement s wit h respec t t o th e propose doperations " becaus e Gulfstrea mwil l preven t Su n Ai r fi-omofferin g commute r

service s betwee n Florid aan dth e Bahamas . Su n Ai r submit s thi s Reply , objectin g t o Gulfstream' s attempt s t o (a ) delay th e processin g o f

th e Applicatio n an d(b ) bloc k Su n Ai r fi-omofferin g commute r

service s betwee n Miam i an dBimini , amarke t Gulfstreami s not

currentl y servin g an dha s not indicate dan yREPL Y O F

SUN AI REXPRESS , LL C d/b/ a SUN AI RINTERNATIONA L Pag e 2 immediat e plan s t o serve . Th e Departmen t shoul drejec t

Gulfstream' s blatan t

appea l for protectio n fi-oman y potential competitio n tha t Su n Air' s propose dMiami-Bimin i service s may hav e o n Gulfstream' s existin g For t Lauderdale-Bimin i services . Th e Department , moreover , shoul dgran t

Su n Ai r authorit y promptl y t o operat e schedule dpassenge r servic e a s acommute r ai r carrier . Gulfstrea mnote di n it s Answe r tha t Su n Ai r wil l not provid e schedule dservice , for five years , o n an y "poin t

t o poin t passenge r

ai r transportatio n route " tha t Gulfstrea mals o serves . Gulfstreamquote dth e pertinen t provisio n i n th e Membershi p Interes t Purchas e Agreemen t betwee n Coope r

Tradin g Corporation , Thoma s L . Cooper , an dVPA A Co . (th e "Membershi p Agreement"). ' I t

focuse s o n th e statements: "flyin g o r servin g an y poin t

t o poin t passenge r transportatio n routes " o r

"providin g schedule dpassenge r ai r transportatio n service s i n an y poin t t o poin t routes " i n whic h Gulfstreammay hav e "fro mtim e t o time " operated . Answe r at 3 . Gulfstreamapparentl y interpret s thes e statement s a s meanin g tha t Si mAi r ma y no t fly o r serve .

' Gulfstrea mstate dtha t Mr . Coope r

serve da t on e tim e a s Chairma n an dChie f Executiv e Office r o f Gulfstrea mInternationa l Grou p ("GIG") , th e former paren t compan y o f

Gulfstream . Se e Answe r

at 2 . Thi s statemen t

i s no t entirel y correct . No r

i s i t relevant . Mr . Coope r

neve r serve da s Chairma n o f

GI G an dresigne da s Chie f Executiv e Officer

o n Jul y 1 , 2007 , wel l befor e VPA A purchase dGulfstream . I n addition , Gulfstreamstate dtha t Mr . Coope r

neve r mentione dhi s intentio n t o operat e schedule dservice s betwee n Florid aan dth e Bahamas . I dat 4 . T o th e contrary , Mr . Coope r expresse dhi s intention s i n emai l communications , copie s o f whic h Su n Ai r

ca n provid e t o th e Department , i f

necessary .REPL Y O F

SUN AI REXPRESS , LL C d/b/ a SU N AI RINTERNATIONA L Pag e 3

o r provid e schedule dpassenge r ai r transportatio n service s in , an y poin t t o poin t rout e tha t Gulfstreammay hav e serve dat on e tim e i n th e pas t

o r ma y decid e t o serv e i n th e nex t five years . Su n Ai r strongl y disagree s wit

h Gulfstream' s interpretatio n o f thi s provision . Th e Membershi p Agreemen t

doe s no t stat e tha t Su n Ai r may no t serv e th e Florida-Bahama s marke t a s acommute r

ai r carrier . No r

doe s i t stat e tha t Su n Ai r may no t serv e o r provid e schedule dai r transportatio n services , a s acommute r ai r carrier , o n an y poin t

t o poin t rout e tha t

Gulfstrea m ma y hav e serve di n th e past . Th e plai n languag e o f th e Agreemen t

state s tha t

Su n Ai r caimo t fly o r serve , o r provid e schedule dservices , o n an y poin t t o poin t rout e i n whic h Gulfstrea moperates . I n it s amende dApplication , Su n Ai r doe s not propos e commute r

service s o n an y poin t

t o poin t passenge r

rout e i n whic h Gulfstrea mserves . B y it s ow n admission , Gulfstrea mdoe s no t offe r schedule dservice s betwee n Miam i an dBimini . Whil e Gulfstreamma y hav e serve dMiam i i n th e past , i t

doe s not offe r schedule dpassenge r

service s fro mMiam i t o an y poin t i n th e Bahama s at

thi s time . I n fact , ther e currentl y i s n o schedule dpassenge r servic e betwee n Miam i an dBimini . Su n Air , thus , i s proposin g ne w schedule dservice s (a s acommute r carrier ) i n thi s marke t - t o benefi t

th e flying public . Gulfstreamwant s th e Departmen t t o b e clairvoyan t

an danticipat e tha t

i t wil l serv e th e Miami-Bimin i marke t

som e day (bu t

not now) , an di t

wan t th e Departmen t

t o den y Su n Air' s Applicatio n o n thi s basis . Otherwise, a s Gulfstrea mha s warned , i t wil l see k a n emergenc y injunctio n stoppin g an y Department-authorize dcommute r service s betwee n Miam i an dBimini . Gulfstreamapparentl y maintain s tha t th e Membershi p Agreemen t shoul db e construe d- b y th eREPL Y O F

SUN AI REXPRESS , LL C d/b/ a SUN AI RINTERNATIONA L Pag e 4 Departmen t

an db y acourt

- a s precludin g Si mAi r

fromservin g th e Bahama s fro man y poin t i n Florid atha t

Gulfstreammay hav e serve dat on e tim e i n th e pas t

o r ma y decid e t o serv e someday (bu t no t now ) i n th e nex t

five years . Th e Departmen t ha s no t withhel dauthorit y i n th e pas t becaus e o f

acontractua l dispute , ^ an dGulfstrea mha s no t show n wh y th e Departmen t (o r an y court ) shoul dd o s o now . However , i f th e Departmen t

decide s t o conside r

th e scop e o f

th e Membe r Agreement , i t

shoul dfollo w th e statutory mandat e o f promotin g ne w servic e an d competition . T o thi s end , th e Departmen t shoul dgiv e SimAi r

an opportunit y t o offe

r th e propose dne w ai r

service . Gulfstreami s correc t

abou t on e thing . I t

i s th e "larges t

ai r carrie r base di n Florida " tha t provide s "schedule dservice s primaril y betwee n Florid aan dth e Bahamas. " Se e Answe r at 3 . A s aPart 12 1 ai r carrier , Gulfsfrea

moperate s "5 1 schedule dflights pe r day , servin g seve n

^ See , e.g. , TN T SAV A Servicio s Aereo s d o Val e Amazonic o S.A . (SAVA ) Exemptio n Renewa l Application . Orde r 95-3-24 , Docke t

4750 7 (Marc h 13 , 1995 ) (findin g that allege d nonpaymen t

o f obligation s was aprivat e contractua l matte r tha t shoul db e resolve di n othe r fora) ; Faucet t

Exemptio n Application , Orde r 93-7-34 , Docke t

4885 3 (Jul y 22 , 1993 ) (rejectin g argument s b y othe r

carrie r tha t th e exemptio n shoul db e denie dbecaus e Faucett faile dt o mee t

a busines s commitmen t

an dwas unde r

investigatio n b y Pemvia n authorities) ; Nicaraguens e d e Aviacio n ("NICA" ) Exemptio n Application . Orde r 92-7-6 ; Docke t

4813 8 (Jul y 6 , 1992 ) (determinin g tha t

alegal dispute with NICA' s predecesso r airlin e shoul db e "properl y resolve d i n othe r fora") ; Unio n d e Transport s Aerien s ("UTA" ) Exemptio n Renewa l Application , DO T Orde r 91-4-48 , Docke t

4432 3 (Apri l 25 , 1991 ) (rejectin g groun dhandler' s clai mtha t authorit y shoul dno t

b e grante dfor

terminatin g acontrac t

early) . Gulfstream' s ple at o dela y processin g o f th e Applicatio n i s no t

supporte db y th e 199 0 orde r it cited . Orde r

90-8-3 2 concerne dAmerica n an dIberia' s join t

applicatio n for

an exemptio n relatin g t o thei r CR S operations . Th e Departmen t grante dth e requeste dexemptio n s o tha t th e paitie s coul dsettl e aCR S disput e an davoi dfurther intergovernmenta l evaluation .REPL Y O F

SU N AI REXPRESS , LL C d^/ a SUN AI RINTERNATIONA L Pag e 5 destination s i n Florid aan deigh t destination s i n th e Bahamas. " Id . Usin g 19-sea t Beec h craf

t 190 0 aircraft , i t

currentl y operate s betwee n Wes t Pal mBeac h and/o r

Fort Lauderdal e o n th e on e han dan dAndro s Town , Freeport , Georgetown , Governor' s Harbour , Mars h Harbour , Norther n Eleuthera , Bimini , an dTreasur e Cay o n th e othe r hand . I dGulfsfrea

mcurrenti y serve s Bimin i fromFort Lauderdale . Su n Ai r ha s n o intentio n i n providin g th e sam e service s a s Gulfstream . I t simpl y want s t o offe r (a s acommute r

ai r carrier ) on e schedule dflight eac h da y o n on e poin t

t o poin t route : Miami-Bimini-Miami . I t plan s t o operat e thi s servic e with smalle r Pipe r Chieftai n aircraft , whic h hav e onl y 9 passenge r seats . Considerin g th e weigh t o f accompanie dbaggage . Su n Ai r anticipate s tha t

onl y 8 o f thes e seat s wil l b e availabl e for sale . With a n estimate d50-7 0 percen t loa dfacto r

(dependin g upo n th e season) . Su n Ai r expect s t o fransport 4 t o 5 passenger s eac h da y betwee n Miam i an dBimini . Thi s propose dcommute r ai r carrie r servic e hardl y compare s t o th e 5 1 dail y flights Gulfsfrea

moperate s betwee n seve n Florid apoint s an deigh t Bahamia n points . Sinc e Su n Ai r

i s no t proposin g t o offer

servic e betwee n th e sam e point s a s Gulfstream , th e underlyin g reaso n for filing an Answe r

i s obvious : Gulfsfrea

mdoe s not

wan t it s existin g Fort Lauderdale-Bimin i servic e t o fac e an y competitio n fromSu n Air' s propose dMiami-Bimin i service. A desir e t o insulat e itsel f fromcompetition , however , canno t serv e a s abasi s for

askin g th e Departmen t

t o dela y consideratio n o f o r den y Su n Air' s Application . Gulfstreamha s no t

supporte di n an y way whatsoeve r it s allegatio n tha t

"Su n Ai r doe s no t mee t th e Department' s citizenshi p an dfitness requirements. " Se e Answe r at 6 . Gulfsfrea

mi sREPL Y O F

SU N AI REXPRESS , LL C d/b/ a SUN AI RINTERNATIONA L Pag e 6

no t questionin g th e financial summarie s o r forecast s submitte db y Su n Air . Id . at 5 . Instead , i t

i s attemptin g t o pus h th e Departmen t no t onl y int o becomin g involve di n acontractua l matter , bu t als o int o protectin g Gulfstream' s existin g Fort Lauderdale-Bimin i service. Th e Departmen t shoul dnot

entertai n an y reques t

t o limi t Su n Air' s entry int o th e Miami-Bimin i market . WHEREFORE , for

th e reason s state dabove . Su n Ai r Express , LL C d/b/ aSu n Ai r Internationa l respectfiill y request s tha t th e Departmen t

den y VPA A Co . d/b/ aGulfstream Internationa l Airlines ' deman dfor (a ) adelay i n processin g o f th e Application , (b ) adenia l o f th e Application , an d(c ) an y Orde r restrictin g th e commute r authorit y issue dt o Su n Air . Su n Ai r als o request s suc h further , different , an dadditiona l relie f a s th e Departmen t

may dee mt o b e appropriate . Respectfiill y submitted , ZUCKERT , SCOUT T & RASENBERGER , L.L.P .

88 8 Sevenleenth Sfreet , N.W . Suit e 70 0 Washington , D.C . 2000 6 (202 ) 973-791 3 Counse l for

Su n Ai r Express , LL C d/b/ aSu n Ai r Internationa l Dated : Octobe r

7 , 201 1CERTIFICAT E O F SERVIC E

I hereb y certif

y tha t o n thi s 7" ^ da y o f October , 2011 , acop y o f th e foregoin g REPL Y O F SUN AI REXPRESS , LL C d/b/ aSU N AI RINTERNATIONA L T O TH E ANSWE RO F VPA A CO . was serve db y emai l o r first clas s mail , postag e prepaid , o n th e partie s name dbelow : Mr . Edwar dM . Danilov a FUgh t Standard s Distric t

Office-1 7 Federa l Aviatio n Adminisfratio n 289 5 S.W . 145 * Avenu e Suit e 12 0 Miramar,F L 3302 7 Edward.m.dasilva(a)faa.go v Ms . Laur aRem o Ai r Carrie r Fitnes s Division , X-5 6 Offic e o f Aviatio n Analysi s U.S . Departmen t

o f Transportatio n 120 0 Ne w Jerse y Avenue , S.E. , 8" ' Floo r Roo mW-86-30 6 Washington , D.C . 2059 0 Laura.remo(a!dot . go v Mr . Ernest o Rodrigue z Ai r Servic e Developmen t

Manage r Marketin g Divisio n Miami-Dad e Aviatio n Departmen t P.O . Bo x 02550 4 Miami , FL 33102-550 4 Davi dM . Hernande z VEDDE RPRIC E P.C . 140 1 I Sfreet , N.W . Suit e 110 0 Washington , D.C . 2000 5 dhemandez@vedderprice.co m