BEFORE THE DEPARTMENT

OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON,

DC Application

of ALASKA AIRLINES, INC. for an exemption pursuant

to 49 U.S.C.

§ 40109

) ) ) ) Docket DOT-OST-2015- ) ) ) _________________________________) APPLICATION

OF ALASKA AIRLINES, INC. FOR EXEMPTION AUTHORITY
AND REQUEST FOR DESIGNATION Communications

with respect

to this document should
be addressed

to: Jeremy Ross Senior Attorney, Litigation and Regulatory and Director, Legal ALASKA AIRLINES, INC. 19300 International Boulevard Seattle, Washington 98188 jeremy.ross

!'m alaskaair.com March 10,2015

David Heffernan COZEN O'CONNOR The Army

& Navy Club Building 1627

I Street, NW Suite 1100 Washington,

DC 20006 (202) 463-2537 dheffeman!'mcozen.com Counsel
for ALASKA AIRLINES, INC. NOTE: The applicant requests expedited approval

of this application
and will poll the carrier representatives

on the attached service list and report the polling results to the Department.

### Application

of BEFORE THE DEPARTMENT

OF TRANSPORTATION OFFICE
OF THE SECRETARY WASHINGTON,

DC ) ) ) 

### ALASKA AIRLINES, INC.

) Docket DOT-OST-20

1 5- ) 

### for an exemption

) 

### pursuant

to 49 U.S.C.



### § 40109

) 

## ____ __ ____ ____ ____ __ __ ____ __ __ ___

) DATED: March 10,2015 APPLICATION

OF ALASKA AIRLINES, INC. FOR EXEMPTION AUTHORITY AND REQUEST FOR DESIGNATION Pursuant

to 49 U.S.C.

§ 

### 40109 and Subpart

C of the Department's Procedural Rules (14 CFR §§ 

### 302.301



### et seq

. ), Alaska Airlines, Inc. ("Alaska") hereby applies for an exemption from the provisions

of 49 U.S.C.



### § 41101 authorizing

it to engage

in scheduled foreign
air transportation

of persons, property and mail between Santa Ana/Orange County (SNA), California,

on the one hand, and Puerto Vallarta (PVR) and San Jose del Cabo (SJD), Mexico,
on the other hand. Alaska also requests

a designation to operate

in the Santa Ana/Orange County-Puerto Vallarta and Santa Ana/Orange County-San Jose del Cabo city pairs

. Alaska requests that the exemption

be granted for
a two-year period consistent with DOT precedent. E xpedited treatment

of this application

is requested

in order
to permit Alaska

to begin advertising
and selling seats as soon as possible. Alaska plans
to begin service between Santa Ana/Orange County and San Jose del Cabo on October

8, 2015 and between Santa Ana/Orange County and Puerto Vallarta
on October

9, 2015. Counsel forApplication

of Alaska Airlines, Inc. Page

2 Alaska will poll the carriers
on the attached service list and advise the Department

of the results

. In support
of its application, Alaska states
as follows: 1. Alaska's principal headquarters

are located

at 19300 International Boulevard, Seattle, Washington. Alaska

is incorporated under the laws of the State of Alaska and is a wholly owned subsidiary

of Alaska Air Group, Inc. ("AAG"). AAG

is incorporated under the laws of the State of Delaware. 2
. Alaska

is a citizen
of the United States within the meaning

of 49 U.S.C.

§ 401 02(a)(15). Alaska has been found fit, willing and able to provide interstate and foreign
air transportation. Alaska holds certificates

of public convenience

and necessity authorizing

it to engage

in scheduled foreign
air transportation

of persons, property, and mail on certain routes between
the United States and points

in Mexico,

as well as between
the United States and points

in countries with which the United States has entered into open skies agreements

. ' Alaska also holds exemption authority

for additional U.S.-Mexico service

. 2 3. Alaska requests exemption authority

to allow

it to operate scheduled foreign
air transportation

of persons, property and mail between Santa Ana/Orange County, California,

on the one hand, and Puerto Vallarta and San Jose del Cabo, Mexico, 1 See Application

of Alaska Airlines,
Inc

. for Amendment

to Certificate

of Public Convenience

and Necessity

(U

. S

. -Mexico), Order 2000-5-31, dated March 29, 2000 (Docket DOT-OST-1999-6276);

In the Matter of Blanket Open-Skies Route Authority, Order 2007-7-3, dated May

7 , 2007 (Docket DOT-OST2007-27790)

. 2 See Notices
of Action Taken, dated August 25,2014 (Docket DOT-OST-2005-20406)

; May 29,2014 (Docket DOT

- OST-2014-0078)

; April23, 2014 (Dockets DOT-OST-2003-14542, DOT-OST-2004-19419, DOT-OST-2010-0103,

and DOT-OST-2010-0193); April14, 2014 (Docket DOT-OST-2014-0049);

and July 31, 2012 (Docket DOT-OST-20

I 0-0234)

.ApplicationofAlaskaAirlines,Inc.Page3ontheotherhand.AlaskaplanstobeginoperatingservicebetweenSantaAna/OrangeCountyandSanJosedelCaboonOctober8,2015,andbetweenSantaAna/OrangeCountyandPuertoVallartaonOctober9,2015.Alaskawilloperatefour(4)weeklynon-stopflightsto/fromSanJosedelCaboandthree(3)weeklynon-stopflightsto/fromPuertoVallarta,bothwith8737-800aircraft.AlaskarequeststhattheDepartmentgranttherequestedexemptionassoonaspossibletoenableAlaskatobeginmarketingthenewservices.4.Alaska'sproposedSantaAna/OrangeCounty-PuertoVallartaandSantaAna/OrangeCounty-SanJosedelCaboserviceisfullyconsistentwiththeU.S.-MexicoAirTransportAgreement,asamended.3ThatagreementpermitsU.S.aircarrierstooperatescheduledpassengerservicefromapointorpointsintheUnitedStatestoapointorpointsinMexico.Annex1.8.5oftheagreementallowseachcountrytodesignateuptothreeairlinestoprovidescheduledcombinationservicesbetweeneachpointintheUnitedStatesandeachofPuertoVallartaandSanJosedelCabo,Mexico.AlaskaunderstandsthatthereisatleastoneunusedU.S.airlinedesignationavailableforeachoftheSantaAna/OrangeCounty-PuertoVallartaandSantaAna/OrangeCounty-SanJosedelCabocitypairs.Alaskarequeststhatadesignationbeprovidedforeachofitsproposedservices.5.GrantofAlaska'sapplicationisinthepublicinterest,asitwillbenefitconsumersbyallowingthecarriertoincreasecompetitionintheU.S.-Mexicomarket.Inaddition,Alaska'sSantaAna/OrangeCounty-PuertoVallartaandSantaAna/Orange3SeeAirTransportAgreementBetweentheGovernmentoftheUnitedStatesofAmericaandtheGovernmentoftheUnitedMexicanStates,August15,1960,asamendedandextendedmostrecentlyonDecember12,2005.Application

of Alaska Airlines, Inc. Page

4 County-San Jose del Cabo service will provide additional trave

l options

to passengers and increase the utilization

of U.S. bilateral traffic rights
in the U.S.-Mexico market. 6. Issuance

of the exemption authority will not constitute

a major regulatory action under the Energy Policy and Conservation

Act of 1975,
as defined

in Part 313 of the Department's
regu

l ations.

A ll flights will be operated with 8737-800 aircraft that meet all app

l icab

l e noise and environmental requirements. Similarly, approval

of this application
will not result
in
a near-term increase

in fuel consumption

of ten million gallons
or more.

A
l aska anticipates

no prob

l em in obtaining fuel for these flights from its norma

l sources
of supply. WHEREFORE, Alaska respectfu

ll y requests that the Department prompt

l y grant it an exemption
and designation

for its proposed Santa Ana/Orange County-Puerto Vallarta and Santa Ana/Orange County-San Jose del Cabo service. Dat
e d: M a rch 10

, 201
5 Respectfully submitted

, **~~L{~** D a vid H e ffernan COZEN O'CONNOR The Army

& Navy Club Building 1627

I Street, NW Suite 1100 Washington

, DC 20006 Tel
e phone (202) 463-2537 E- mai
I: dheffernan

@ co z en

. com Counsel
for ALASKA AIRLINES, INC.CERTIFICATEOFSERVICEIherebycertifythatIhavethisdateservedacopyoftheforegoingApplicationofAlaskaAirlines,Inc.forExemptionAuthoritybyelectronicmailuponthefollowing:ABXAir,AirTransportInt'l:AmericanAirlines:FloridaWestAirlines:FrontierAirlines:AmerijetInt'l:AtlasAir:CenturionAirCargo:DeltaAirLines:ExpressJet:FederalAviationAdministration:FederalExpress:JetBlue:KalittaAir:PolarAirCargo:SouthernAir:SouthwestAirlines:SpiritAirlines:SunCountryAirlines:UnitedAirlines:UnitedParcelService:VirginAmerica:Dated:March10,2015rsilverberg@sgbdc.comhoward.kass@aa.comrobert.wirick@aa.comabigail.donovan@aa.comsandysinick@gmail.comhoward.diamond@flyfrontier.comjcanny@amerijet.comrpommer@atlasair.comjohn@mietuslaw.comsascha.vanderbellen@delta.comchristopher.walker@delta.comgmurphy@crowell.comjohn.s.duncan@faa.govnssparks@fedex.comcefelts@fedex.comjhill@cooley.comperkmann@cooley.compsanderlin@kalittaair.comkevin.montgomery@polaraircargo.comagoerlich@ggh-airlaw.combob.kneisley@wnco.comleslie.abbott@wnco.comjyoung@yklaw.comdkirstein@yklaw.comthomas.ting@suncountry.comdan.weiss@united.comsteve.morrissey@united.comgmurphy@crowell.comanita.mosner@hklaw.comJennifer.nowak@hklaw.commlbenge@zsrlaw.comKennethC.Hines