BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION

WASHINGTON D.C.

__________________________________________

)

Application of )

)

AIRTRAN AIRWAYS, INC. )

) Docket No. OST-2011-

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

to engage in foreign scheduled air transportation )

of persons, property and mail between San Antonio, ) 

Texas and both Mexico City and Cancun, Mexico, )

and between Orange County, California and )

both Mexico City and Los Cabos, Mexico. )

__________________________________________ )

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

November 14, 2011

NOTICE: ANY PERSON MAY FILE AN ANSWER TO THIS APPLICATION IN THIS 

DOCKET AND SERVED ON THE PERSONS LISTED ABOVE, ON OR BEFORE 

NOVEMBER 29, 2011. AIRTRAN WILL POLL THE U.S. CARRIERS ON THE 

ATTACHED SERVICE LIST REGARDING THIS APPLICATION AND WILL NOTIFY 

THE DEPARTMENT OF THE RESULTS AS SOON AS POSSIBLE.
1

BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION

WASHINGTON D.C.

__________________________________________

)

Application of )

)

AIRTRAN AIRWAYS, INC. )

) Docket No. OST-2011-

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

to engage in foreign scheduled air transportation )

of persons, property and mail between San Antonio, ) 

Texas and both Mexico City and Cancun, Mexico, )

and between Orange County, California and )

both Mexico City and Los Cabos, Mexico. )

__________________________________________ )

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 on the following four U.S. – Mexico routes: San Antonio, 

Texas (SAT) and Mexico City, Mexico (MEX); San Antonio, Texas and Cancun, Mexico 

(CUN); Orange County, California (SNA) and Mexico City, Mexico; and Orange County, 

California and Los Cabos, Mexico (SJD). 

Assuming receipt of all necessary approvals, AirTran proposes to commence 

operations on the SAT-MEX and SAT-CUN routes on or about May 24, 2012, and on 

the SNA-MEX and SNA-SJD routes on or about June 1, 2012. AirTran requests that 

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

period of at least two years.

In support of this application, AirTran states the following:
2

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 

Boulevard, Orlando, Florida, 32827 and operates pursuant to a separate FAA operating 

certificate from Southwest. 

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 year round service between SAT and both MEX 

and CUN on or about May 24, 2012. AirTran will provide this service using Boeing 737-

700 aircraft configured for 137 seats and plans to offer daily to twice daily service in the 

SAT-MEX market, and three times a week to daily service in the SAT-CUN market, 

depending on demand and other market conditions.

4. AirTran also proposes to commence year round service between SNA and both 

MEX and SJD beginning on or about June 1, 2012. AirTran will provide this service 

using Boeing 737-700 aircraft configured for 137 seats. AirTran plans to offer daily 

service in the SNA-MEX market, and daily to twice daily service in the SNA-SJD market, 

depending on demand and other market conditions.
3

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

application. AirTran is an air carrier holding a Certificate of Public Convenience and 

Necessity to engage in interstate scheduled air transportation of persons, property and 

mail. See Order 97-11-28. Furthermore, AirTran holds current exemption authority 

from the Department in the BWI-CUN, ATL-CUN and MKE-CUN markets, as well in 

several other international markets. See Dockets OST-2005-21134 (BWI-CUN and 

ATL-CUN), OST-2005-21134 (MKE-CUN), OST-2009-0201 (U.S. – Montego Bay, 

Jamaica), OST-2009-0200 (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.

6. 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, two U.S. carrier designations 

are available on U.S. – MEX routes and three U.S. carrier designations are authorized 

on U.S. – CUN and U.S. – SJD routes. Annex I(B)(4-5).

7. U.S. carrier designations are available on all four routes for which AirTran is 

seeking authority in this application. Currently, no U.S. carriers provide nonstop service 

in the SAT-MEX market and therefore two designations are available. In the SAT-CUN 

market, United Air Lines and Delta Air Lines each hold authority to operate scheduled 

combination nonstop service, leaving one designation available. There is no U.S. 

carrier nonstop service between Orange County and any Mexico destination and 
4

therefore two designations are available in the SNA-MEX market and three designations 

are available in the SNA-SJD market.

8. AirTran already provides scheduled service to Mexico with nonstop flights in the 

ATL-CUN, BWI-CUN and MKE-CUN markets. AirTran’s low-cost competition has 

expanded these markets significantly and will undoubtedly have an even greater impact 

on U.S. – Mexico service once its schedule is linked with Southwest’s vast domestic 

network. Southwest is the largest carrier at both San Antonio and Orange County 

Airports and would offer AirTran passengers on these international flights numerous

domestic connecting opportunities. Importantly, many of these connections would be to 

small or medium sized cities without current nonstop service to Mexico. AirTran’s 

proposed service will provide new convenient and reliable low-cost travel options to 

passengers and shippers in both the United States and Mexico, and clearly is in the 

public interest. 

9. 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 

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

or Part 313 of the Department’s Economic Regulations.

10. AirTran is prepared to accept and comply with the terms and conditions that the 

Department routinely imposes on exemption authority for scheduled foreign air 

transportation. 
5

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 on the four U.S. – Mexico routes 

listed above. 

Respectfully submitted,

______________________

Robert W. Kneisley

November 14, 2011
6

Certificate of Service

I hereby certify that on November 14, 2011, a copy of the foregoing was served 

via e-mail on the following persons:

msinick@ssd.com (Alaska Airlines)

carl.nelson@aa.com (American Airlines)

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

jeff.morgan@delta.com (Delta Air Lines) 

sametta.c.barnett@delta.com (Delta Air Lines)

rsilverberg@sgbdc.com (ExpressJet) 

robert.cohn@hoganlovells.com (Frontier/Republic Airlines)

patrick.rizzi@hoganlovells.com (Frontier/Republic Airlines)

jhill@dowlohnes.com (JetBlue Airways)

dkirstein@yklaw.com (Spirit Airlines)

jyoung@yklaw.com (Spirit Airlines)

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

jeffrey.manley@united.com (United Air Lines)

hershel.kamen@united.com (United Air Lines)

howard_kass@usairways.com (US Airways)

benjamin.slocum@usairways.com (US Airways)

pmurphy@lopmurphy.com (USA3000)

john.varley@virginamerica.com (Virgin America)

jegillick@zsrlaw.com (Virgin America)

esta.rosenberg@dot.gov (DOT)

brian.hedberg@dot.gov (DOT

paul.gretch@dot.gov (DOT)

john.allen@faa.gov (FAA)

ursk@dos.gov (DOS)

and via U.S. mail:

Alan Murphy

Airport Director

John Wayne Orange County Airport

18601 Airport Way, Santa Ana, CA 92707

Frank Miller

Aviation Director

San Antonio International Airport

9800 Airport Boulevard, San Antonio, TX 78216

__________________________

Leslie C. Abbott