BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION

WASHINGTON D.C.

__________________________________________

)

Application of )

)

AIRTRAN AIRWAYS, INC. )

) Docket No. OST-2013-

For an exemption pursuant to 49 U.S.C § 40109 )

to engage in foreign scheduled air transportation )

of persons, property and mail between Austin, ) 

Texas and Cabo San Lucas, Mexico. (AUS-SJD). )

__________________________________________ )

APPLICATION OF AIRTRAN AIRWAYS, INC.

Communications with respect to this document should be sent to:

Bob Jordan Robert W. Kneisley

 President Associate General Counsel

AIRTRAN AIRWAYS, INC. Leslie C. Abbott

9955 AirTran Boulevard Senior Attorney

Orlando, FL 32827 SOUTHWEST AIRLINES CO.

 1901 L Street, N.W., Suite 640

Washington, D.C. 20036

 bob.kneisley@wnco.com

(202) 263-6284

January 16, 2013
1

BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION

WASHINGTON D.C.

__________________________________________

)

Application of )

)

AIRTRAN AIRWAYS, INC. )

) Docket No. OST-2013-

For an exemption pursuant to 49 U.S.C § 40109 )

to engage in foreign scheduled air transportation )

of persons, property and mail between Austin, ) 

Texas and Cabo San Lucas, Mexico (AUS-SJD). )

__________________________________________ )

APPLICATION OF AIRTRAN AIRWAYS, INC.

Pursuant to 49 U.S.C. § 40109 and Subpart C of the Department’s Rules of

Practice, AirTran Airways, Inc. (AirTran) hereby applies for an exemption from 49 

U.S.C. § 41101 authorizing AirTran to engage in scheduled foreign air transportation of 

persons, property, and mail between Austin, Texas (AUS) and Cabo San Lucas, Mexico 

(SJD). Assuming receipt of all necessary approvals, AirTran proposes to commence 

operations between AUS and SJD on or about June 2, 2013. AirTran requests that the

exemption authority specified in this application be granted as soon as possible for a 

period of at least two years.

In support of this application, AirTran states the following:

1. AirTran is a wholly owned subsidiary of Southwest Airlines Co. (Southwest), a 

Texas corporation with its principal place of business at 2702 Love Field Drive, Dallas, 

Texas, 75235. AirTran maintains its principal place of business at 9955 AirTran 
2

Boulevard, Orlando, Florida, 32827. AirTran and Southwest were granted a Single 

Operating Certificate by the FAA on March 1, 2012. 

2. Southwest is a citizen of the United States as defined by Section 40102(a)(15) of 

Title 49 of the United States Code and Section 204.2(c) of the Department’s Economic 

Regulations. Southwest’s president and at least two-thirds of its board of directors and 

other managing officers are citizens of the United States. Southwest is under the actual 

control of citizens of the United States and more than 75 percent of its voting interest is 

owned or controlled by persons that are citizens of the United States. Additionally, 

AirTran’s president and other managing officers are citizens of the United States and 

AirTran is under the actual control of citizens of the United States. 

3. AirTran proposes to commence summer seasonal service between AUS and 

SJD on or about June 2, 2013. AirTran will provide this service using Boeing 737-700 

aircraft configured for 137 seats and plans to offer service three times per week, 

depending on demand and other market conditions.

4. AirTran is fit, willing and able to conduct the services described in this 

application. AirTran holds a Certificate of Public Convenience and Necessity to engage 

in interstate scheduled air transportation of persons, property and mail. See Order 97-

11-28, reissued by Order 2000-9-10 and transferred to Southwest Airlines Co. and 

AirTran Airways, Inc. by Order 2011-11-17. Furthermore, AirTran holds exemption 

authority from the Department in several U.S. – Mexico markets, as well as in a number 

of other international markets. See, e.g., Dockets OST-2012-0190 (DEN-SJD), OST2012-0001 (MDW-CUN), OST-2011-0205 (SAT-MEX), OST-2005-21134 (BWI-CUN 

and ATL-CUN), OST-2009-0201 (U.S. – Montego Bay, Jamaica), and OST-2009-0200 
3

(U.S. – Aruba). Pursuant to Rule 24 of the Department’s Rules of Practice, AirTran 

asks the Department to take official notice of all data on file necessary to establish 

AirTran’s fitness.

5. The requested exemption authority is fully consistent with the terms of the U.S.-

Mexico Air Transport Agreement (Agreement) as amended by the two governments on 

December 12, 2005. The Agreement authorizes carriers designated by the U.S. to 

operate “[f]rom a point or points in the United States to a point or points in Mexico.” 

Annex I(A)(1)(a). Pursuant to the amended Agreement, three U.S. carrier designations 

are authorized on U.S. – SJD routes. Annex I(B)(5). Three U.S. carrier designations are 

currently available on the AUS-SJD route. 

6. AirTran already provides scheduled service to Mexico with nonstop flights from 

cities across the United States. AirTran’s low-cost service has expanded these markets 

significantly and will have an even greater impact on U.S. – Mexico service once its 

schedule is linked with Southwest’s extensive domestic network as planned in 2013. 

Together, Southwest/AirTran is the largest carrier at AUS, and accordingly the 

Southwest/AirTran network would offer passengers on these new international flights 

numerous domestic connecting opportunities, many of them to cities without current 

nonstop service to SJD. In sum, AirTran’s proposed AUS-SJD service will provide new 

convenient low-cost travel options to passengers and shippers in both the United States 

and Mexico, and clearly is in the public interest.

7. The environmental impacts of AirTran’s proposed services are de minimis, and 

will therefore not lead to a near-term annual increase in aircraft fuel consumption of 10 

million gallons or more. Accordingly, grant of this application will not constitute a “major 
4

regulatory action” within the meaning of the Energy Policy and Conservation Act of 1975 

or Part 313 of the Department’s Economic Regulations.

WHEREFORE, AirTran requests that the Department act expeditiously in 

granting the requested exemption authority to enable AirTran to engage in scheduled 

foreign air transportation of persons, property and mail between Austin, Texas and 

Cabo San Lucas, Mexico as described in this application. 

Respectfully submitted,

______________________

Robert W. Kneisley

January 16, 2013
5

CERTIFICATE OF SERVICE

I hereby certify that on January 16, 2013, a copy of the foregoing was served via 

e-mail on the following persons:

msinick@ssd.com (Alaska Airlines)

francis.heil@aa.com (American Airlines)

Robert.wirick@aa.com (American Airlines)

sascha.vanderbellen@delta.com (Delta Air Lines)

robert.cohn@hoganlovells.com (Frontier Airlines)

Patrick.rizzi@hoganlovells.com (Frontier Airlines)

Robert.land@jetblue.com (JetBlue Airways

jhill@dowlohnes.com (JetBlue Airways & Hawaiian Airlines)

perkmann@dowlohnes.com (JetBlue Airways & Hawaiian Airlines)

dkirstein@yklaw.com (Spirit Airlines)

John.Fredericksen@suncountry.com (Sun Country Airlines)

dan.weiss@united.com (United Air Lines)

howard_kass@usairways.com (US Airways)

ben.slocum@usairways.com (US Airways)

pmurphy@lopmurphy.com (USA3000)

jegillick@zsrlaw.com (Virgin America)

barbara.russell@virginamerica.com (Virgin America)

susan.kurland@dot.gov

paul.gretch@dot.gov

esta.rosenberg@dot.gov

brian.hedberg@dot.gov

brett.kruger@dot.gov

john.allen@faa.gov 

urskr@dos.gov

Jim Smith

Director of Aviation

Austin-Bergstrom International Airport

jimsmith@ci.austin.tx.us

info@airlineinfo.com

__________________________

Leslie C. Abbott